What is Riskier the Stock Markets Or Commodity Trading?

the question is always what is risky, stock or commodity trading? First, both are, but I have a problem with the initial response when they hear that I am trading advisor commodity or commodities involved in trading is that it is risky. How many people have forgotten how to obey blindly CNBC or Bloomberg during the tech bubble and lost their retirement money from Enron, Worldcom and a myriad of other shares. It seems people want to watch Jim Cramer, weather for crops, which Bernanke will say that they think they will find their way to investment success. Even now, talk of green shoots. People want to predict. This is what makes the risk. People who are trying to gather all the information and its analysis, regardless of the position size ... where is the exit ... etc. .. totally increases their risk.

Successful trend followers on the other hand focus solely on risk. Trend followers can be involved in commodity trading, stock markets, currencies, bonds and individual stocks. Until now, if you read my posts you realize that the prediction is meaningless. Nobody knows the future. The successful commodity trading advisors and trend followers know that the only thing that will get them in the store is some type of price move to the upside or downside. Not what Bernanke might say ... Or what OPEC can do. Cold facts ... Price trends !.

goal of a successful commodity trading advisor, or a follower of the trend to jump on board, that the "potential" move. Again, no prediction, and more .. successful trend followers know that most trades will not work. The successful commodity trading advisor or trend follower does not care. He does not put any mental baggage to any trgovinu.Trgovina or worked or not. The successful commodity trading advisor or trend follower does not need to bet BIG .. but a small percentage of his / her account (less than 1%) to see if any trades for or not.

The real key to successful wealth building, investing the stock market or even commodity trading is a combination of money over a long period of time. In order to successfully building wealth, the secret is to understand the risk in any approach (stock, bonds or even Forex) and look for risk management in a consistent and valuable basis. What is this foundation?
The risk per trade
The risk per sector
Open trade risk

I do not think that something is without risk. All types of financial products (even cash) risks. Accept the risk, to define the risks and separate yourself from your feelings. As I started this post, most people want to be told what to do, that's why they watch CNBC and the like. More so, what I saw most of the investing public does not have the discipline to follow even the best thought out financial plan with a strong risk management and money management. If you want a combination of money over a long period of time, consider the allocation for professional money managers, commodity trading advisor that trades in a way that you can understand and follow. Except you want to make sure you have the liquidity (you can take your money out at least within 1 month) and have transparency. In the end, do not invest more than 5% of their net worth in any idea. Remember all the risk. Even the way the U.S. dollar goes just keeps dollars in your bank account may increase the risk. Revolutionize the look of risk management.

READ MORE - What is Riskier the Stock Markets Or Commodity Trading?

12 Features Of Online Commodity Trading And Futures Trading

Online commodity trading and futures trading are the words of today. But this is not scene uvijek.Izvorni marketers belonged 1800s. They are farmers who wanted to sell what they have grown on agricultural land. Crops to be harvested, and products brought to market for sale.

They do not have educational services available in modern times, they were unable to assess whether the goods they brought were insufficient or smaller quantities. If the amount was not enough for consumers, farmers have lost the opportunity to earn more money. If the amount of surplus products, such as trimming products, meat and dairy products should be carted back home. Eventually, they would rot and spoil. Either way, there is a surplus or deficit, farmers suffered losses.

Sometimes, some products will be available out of season, but not in such large quantities as it would be if available during the regular season. Of course, the goods of this were sold at high prices.

Finally, many heads got together to come up with the idea of ​​a common or central market. Farmers would bring their harvest here on certain days and sell them ih.Kupac could be taken as immediate delivery (today, this is called pay on the spot), or order them as future deliveries (known today as the futures market ).

a result of this effort is a set standard prices for various goods (in and out of season), and gives hints for farmers on the supply and demand. Thus, the decay products is brought to a halt and farmers no longer form a huge loss. It can be seen as a stepping stone for online commodity trading and futures trading that exists today!

above all that has happened between now and then, looking at the online commodity trading now as there is, what are the considerations to keep in mind if someone wants to go for it?

(1) in the first place spot on online commodity trading is intelligent to understand how markets work (physical or online), and how contracts are made for future exchanges.

(2) If you are involved in online commodity trading and futures trading, there must be a producer of goods and consumer goods of the same. One seller, a second customer in the contract.

(3) The shop is now gone from agricultural and food products much more, including financial instruments. Thus, the trader has a lot of business opportunities.

(4) Online commodity trading is different from futures trading in commodities that can be delivered fizički.Potvrdu issued to the customer, allowing him / her to go to the warehouse and pick up the product.

(5) The second type of contract that came into being is a futures contract. It has evolved from forward contracts, which is nothing but the buyer signing the contract for payment and purchase goods on a particular day some time in the future (generally, the deadline is three months from the date set in the contract). The goods will be delivered on the date in the future .

(6) Under the agreement, the buyer gets the goods has not dostupna.Cijena is, of course, decided in advance. Sometimes, goods are priced according to future values​​,. Stock market indices act as decision-makers to set the value of certain goods

(7) Another aspect of futures trading is that neither the seller is the actual supplier of the goods, the buyer or the beneficial owner of goods purchased. Only if the person is personally involved with the actual goods were purchased, will he / she provide and use it.

(8) Forward contracts are beneficial to both sellers and buyers, because the risks are minimized, plus parties get a chance to indulge in a little speculation. There is no exchange of physical goods.

(9) Different strategies are available for spot traders, as well as future traders to use the rising and falling prices of their best advantage. These strategies can be classified as -. Expansion, going short and going long

(10) for the same commodity, the prices listed on two different contracts can not be isti.Poduzetnik trying to use the price difference to his benefit. This is called the spread.

(11) goes briefly shows that the trader was wondering if he / she can get profit from falling prices. The contract, therefore, is sold at high prices now, to be repurchased at a lower rate in the future.

(12) last strategy for online commodity trading and futures trading going long. Here, an investor and speculator to sign an agreement in which the buyer is willing to buy the product at pre-set price. He / she predicts that prices will grow in the future be, yielding additional revenue.

READ MORE - 12 Features Of Online Commodity Trading And Futures Trading

Commodity Trading Blunders II, PART 3 - My Early Days As A Novice Trader

Several years later, in the late '80s, I remember even as a mistake. I was using a new commodity cycle program I designed. In fact, it is the same one I used today to clients titled "Timeline". I feel comfortable with it. That's half the battle. In any case, I bought four of coffee futures contracts to about 58 cents. I was looking for an explosive cycle time move up. Sure enough, the coffee market began to creep over a week or so. After a few weeks he started to run and hit the coffee about 70 cents. This is a great result for me, something like $ 18,000. But this is not the end of the story.

Here is how an error occurred: in the morning I left, I had a resting GTC trailing stop at 68 sold four coffee futures closed out. I just had gotten one of those nifty hand-held citation devices with FM band. Remember that? It was a big mistake. Watching that thing just ruined my long-term perspective. But this time it's different. Somehow, I recognized the top and called the trading desk to sell everything on the market. I almost grabbed the top right. It was just luck. So I took the car thinking I was out of the market $ 18K points. Time for a celebration! I was so smart! Not so fast, Tom.

When I got home I heard a message on the answering machine from the trading desk. I called them and the officer said I forgot to cancel a GTC sell stop at 68 to sell four futures contracts. I sheepishly asked him what machine closed in. He said, "limit down" I was still $ 4,000!

But again, not so fast, Tom.Trgovanja Manager (with a hoarse, gruff voice, of course) got on the phone and said to be called before the market closed to see if I wanted to keep the shop. He said because he could not reach me, it covers four contracts without me. Then he barked, "This will be at the expense of an error!" He said it with such authority, I thought that was it. So it worked, I told myself. I was so pumped up to just create a $ 18,000 how could I be greedy and demand an additional $ 4,000 as well?

but ... What would happen if the coffee futures market went limit-up instead? Do you think that trading manager would require the loss goes to "error account" then? Not a chance. I would have eaten that as sure as day. In hindsight, I could have told him that my intention is to stop and reverse, and actually still be in the coffee market of the future and short. What is on the right are no signed contract management approval to assassinate me?

If it happened today it would be a different story. I'd probably offer to share it, as such a nice guy. [smile] But it was a long time ago and I did not know any better. Probably laughed and shook his head afterwards. As Robert Redford said at the end of the Sting ... "I would just like to blow anyway." Knowledge is learned is more valuable than money. Gann said something like: "Once you have knowledge, it is easy to make money in commodities." I guess I can rationalize it all.

So there you have it ... two stories to make mistakes. One we lost $ 1500, and the other me $ 4000 - well, I made $ 4,000 brokerage firms, I would say. It taught me the importance of having a novice commodity futures trader paired with an experienced, mentoring broker. It is so important to have someone at the other end who knows your situation and can flag errors before they get out of control. In these two cases, there is the potential to wipe out many years discount commissions savings.

If you are new to the commodity futures and options trading game, consider going slow for a while and work with someone you trust. Once you get the basics down, you can ramp with confidence. I know some experienced commodity futures traders will only work with a full-service commodity broker. There are a lot of traders like this out there. They know the risk of errors and what you can do to make your ego and your bottom line.

good trading!

There is a substantial risk of loss trading futures and options and May not be suitable for all investors. Only risk capital should be used.

READ MORE - Commodity Trading Blunders II, PART 3 - My Early Days As A Novice Trader

Tips for Commodity Trading

Commodity trading is a reputable business that can be involved in. work or can be run from the comfort of your home, or simply the office. However, in most cases, it is usually self-employed business and can be executed as a part time business. However, to succeed in business, to do more than just sales. This is a job like any other just easer to manage. There are several things you can do to rip the best of him.

The first thing you should do is understand the niche. There are many trade goods that can be used. The difference is that some are more profitable than others, and varying levels of complexity. To rip the best out of business, to understand the pros and cons of trade. This can be done through continued research, as well as seeking professional guidance from experts. Make it a habit to yearn to learn more every day.

real investment must be done. When you start a business, do not put all its resources. It is advised that you first understand the market before your full commitment. Put into a manageable resource that could be felt in the event of loss. When the business up and running, give him everything you can. Time and money must be allocated to commodity trading. This is a job, and the more it will give more back.

Finally, in order to succeed in trading commodities, you will need to separate your personal needs from operations. Most people fail because mixing the two. What is the business belongs exclusively njemu.Samo you are the owner of the operating profit was made ​​and nothing more. Understanding this will help performance.

READ MORE - Tips for Commodity Trading

Commodity Trading - Trading Oil

Traditionally, commodity trading in petroleum products is a place where only the elite, super traders dared to venture. With barrels holding 42 gallons each, and the contract at least 1,000 barrels, delivering oil was a task best left to professionals. However, the petroleum trading landscape has undergone some dramatic changes over recent years.

For decades, oil prices were stable, then the mid-1970s the industry exploded. Technological advances and the political landscape contributed to insecurity, lack of stability, shortages and price increases. Nearly 30 years later, prices skyrocket to more than $ 70 per barrel, and forecasters predict that in the mid to late 2007, when it expects to see a slight decline for the next two years.

, however, there is no truth when it comes to oil prices, but there are few large-scale factors that can reduce risk by offering a relatively accurate projections.

As demands continue to rise, other countries like India and China are also experiencing technological and cultural promjena.Trend seems to be on the rise with no signs of slowing, reversing or reversible.

India is riding on the coattails of their western neighbors in relation to technology and business methods and is emerging in the 21st century. It brings with it increased demand for energy, mainly oil-based, so the houses, commercial buildings and manufacturing plants can be built. Rural economy is getting a facelift in many areas such as this movement carries with it such an exponential growth which, in turn, increases demand.

The demand is not just a piece of the puzzle, though. As India's purchasing power to obtain those goods increases, the growth of other shows as well. India has a wealth of cheap, educated workforce that is required for the outsourcing of information technology, electronics manufacturing, communications and more. It has continued to grow and expand for at least another decade. One indicator of this growth, the rapid growth of broadband throughout India.

China's technological mega country with the highest use of mobile phones in the world, and the other for the largest internet population. Energy is in demand around the world, but China is expected to grow steadily for at least the next decade.

Although China is considered to be a communist state, the social forces that cause performance to decline. As yet, it is impossible to predict whether repression will increase or decrease, but it is inevitable that information flow will be stopped and will reach people one way or another, despite any government attempts to block it.

of social change in China, it seems somewhat proportional increase in business there. Demand for energy is growing and new infrastructure, buildings and manufacturing plants are cropping up on a consistent basis. These companies and the growth of energy demand, mainly oil-based energy.

The demand continues to grow, but at the same cost falling off or blocked. Temporary loss, as the refineries, which occur as a result of a disaster can be recovered within a few months to a year. However, North Sea oil production, which saw its peak in 2000, has seen a gradual decline. By the time that the political change to come around, releasing massive reserves that are known to be in Alaska, is not expected to be sources of new discoveries that will be used. Not a lot of new sources are expected to achieve over the world.

As the technology is tilted towards the development of new forms of energy, there is no expectation that any of these resources will appear in the market over a period of ten years. Fuel cell powered cars, which only account for 7% of gasoline use, is not expected to look for quite a few years.

The current political pressures in the United States hopes to prevent any changes to the current situation. Disposal is one of the main problems at the political forefront that shows no promise of a solution anytime soon. However, there are new forms of oil trading mechanisms are developed to the average investor to participate in a market that was at one time exclusive.

For example, e-mini futures on the CME allow trading contracts that are half the traditional size of 500 barrels. Futures and options on NYMEX remains of 1,000 barrel size, but they require less than 5% of the investment. These moves place these trades in the understanding of all types of investors. Commodities pools and funds, such as those offered by Pimco and Oppenheimer allow investing smaller amounts that are increasing their popularity.

This time, the market can offer even the average investor a favorable risk and reward balance in the oil commodity trading.

READ MORE - Commodity Trading - Trading Oil

How Commodity Trading Differs from Stock Trading

There are major differences between trading stocks and trading
the future. While stories of fortunes are made or lost overnight on the futures markets largely untrue, the futures trader, if using a sound trading system, you can usually earn more money in the futures market and make it much faster. However, if the trading system is not sound the trader can have greater losses.

This is because futures contracts are highly affected. margins
(deposit required) on futures contracts are much less than for stocks, as low as 3% on some futures contracts compared with up to 50% for stocks. As well, futures investors are not charged interest on the difference between the margin and the full contract value.

margins for futures contracts act more like a bond or good faith deposit, while the margin for stocks is more than a loan. Although the margin on futures contracts is very small, she rides the full value of the initial contract as the contract rises or falls, which are affected earlier.

Commission charged futures brokerages are normally much less than brokerage commissions for other investments.

futures markets use the open outcry (auction type) method
trade insurance is very open, honest and efficient markets. Plus, it's much harder to trade on inside information as to the many variables affecting the markets. Also, futures markets are highly liquid. Transactions can be completed quickly, which reduces the risk of adverse market moves

If you own shares you own a business. This allows you to share in company profits, and losses through dividends, and increases or decreases in stock value. It also gives you certain rights to vote with the company. However, the company may go bankrupt, leaving you holding worthless stock.

When you buy and sell futures are just concluding a contract, not really own anything. What you have is a contract for the purchase of goods or financial instrument (wheat or Treasury Bonds for example) at a specified price on a certain date in the future.

person on the other side of the transaction agreed to sell a commodity or financial instrument at that specified price by a certain date. If you sell a futures contract before that date, you shift your position, and any gain or loss on the trade.

stock you bought 3 years ago is the same stocks you can buy today. Futures, on the other hand, are very limited life. They are traded in a regular series of contract months, called the delivery month.

futures contract expiration date, after which no further trading for that month may be održati.Ugovor September corn are traded last year's September corn contract you are trading this year. In fact in September of last year's corn contract no longer exists.

Many futures contract months of the same commodity trade simultaneously on the market, sometimes even years in the future. The current contract is called the front month and the other agreements referred to previous months. They called back months even for future months.

For example, corn trades for the month of January, March, May, July, September, November and December. Suppose today's date is 4 August 2000. The current contract month for corn will be in September 2000 and is called the front mjesec.Mjeseca November and December 2000, January 2001, March 2001, May 2001 July 2001 they returned months, although they are in the future, even flow in the next year .
(This May sound confusing, but not really ...)

All of these months are traded at the same time, although the majority of trading activity takes place in the months ahead.

When the current month contract expires next month becomes the front month and so on.

READ MORE - How Commodity Trading Differs from Stock Trading

Online Commodity Trading: What Is It

Commodity trading is a type of retailing where the contract that allows you to purchase certain securities such as stocks or currencies at a specified price. With the help of technology, everyone can benefit from this low risk, high return on the market. With on-line commodity trading, it is possible to buy or sell a commodity at any time of day. For beginners, many online websites commodity brokers offer demo accounts or paths that will help investors practice their trading skills. These accounts also help increase the understanding of real-time commodity market.

Online commodity brokers are organizations that help individuals and institutional investors for setting up their accounts to trade goods on the Internet. Commodity brokers usually offer their services online, while others opt for business over the phone only.

On-line commodity trading, there is no need to personally communicate with the broker. However, they do not have help lines that can be reached in case of any query. Online commodity trading offers investors a quick and inexpensive way to do currency trading from the comfort of their homes or offices, day and night. All specifications such as the prices stay the same, except for the fact that these trades done from the online account.

When you are opting for online commodity trading, traders must choose their online brokerage company carefully. The main factors to consider when choosing an online broker feedback from other traders on the broker if the broker has the assurance to customers? funds, execution of orders, margin requirement, commissions charged, trading platform and the size calculated nude.Pravilno understanding of accounts is necessary to avoid large losses.

Online commodity trading allows traders to stay in touch with all the speculation and market information. It also allows retailers to install a computerized trading system to automate the trading of goods, which in turn increases their chances for success.

READ MORE - Online Commodity Trading: What Is It

Commodity Trading & Trend Following Mechanical Systems

One of the biggest differences in trading is that many successful commodity trading advisors using trend following mechanical systems. Of course there are other commodity trading advisors that use pattern recognition ... counter the trend, as well as basic fundamental analysis in order to base their decisions. However, in my opinion, when a trader future uses mechanical trend following system is put ourselves in position to capture the few major poteza.Uspjeh trade goods come from the capture of the few major moves with proper risk management. This is the key to a combination of money over a long period of time.

Trend Following trading advisor over the years have programmed their ideas in a mechanical system that detail trade potentials (input and output), and position sizing. No real thinking. Following the trend of commodity trading advisors are looking for price to move. They do not predict, but reagirati.Cilj to catch a new trend. Commodity trading advisors seem to be pieces of trend. Only liars catch the bottom and tops. There is no holy grail in contrast to the trend to buy and hold (pray). It all boils down to the fact that for the few big moves (without losing too much money when they do not appear ).

Trend Following trading advisor over the years have programmed their ideas in a mechanical system that detail trade potentials (input and output), and position sizing. No real thinking. Following the trend of commodity trading advisors are looking for price to move. They do not predict, but reagirati.Cilj to catch a new trend. Commodity trading advisors seem to be pieces of trend. Only liars catch the bottom and tops. There is no holy grail in contrast to the trend to buy and hold (pray). It all boils down to the fact that for the few big moves (without losing too much money when they do not appear ).

There are key questions trend following mechanical system to respond to the

1 Which markets to trade on my capital
Second What does the purchase or sale
Third How to get the profit or loss
4th How many contracts do you put on .. (risk per trade .. risk per sector .. total open trade risk)

Of course there are other issues .. More so I do not think for one minute it is easy .. Even when you have a trend after a mechanical system or commodity trading advisors need discipline and patience to follow the system / commodity trading advisor for at least 4-5 years .. Otherwise do not really start .. I have seen more people quit at the first sign of withdrawal and running on another system or commodity trading advisor. More so .. Keep it simple .. but not simpler ..

READ MORE - Commodity Trading & Trend Following Mechanical Systems

Commodity Trading Blunders I, PART 1 - My Early Days As A Novice Trader

There is always a "one year" for every commodity futures trader. I made ​​the mistake of mine, and every trader can do and more. Here is my story of how I stumbled into the lion's den, got Gored several times, and even made ​​some money. I hope beginners will read this and avoid some of the obvious things. Here's to all new traders!

It all began in the spring 1979th I was 28 years. I was in the office of my new retail electronics company. Let's go over some paperwork and got a call from a young and excited commodities broker from Boston, or some name like that. He must have a list of new companies and cold calling small business owners.

I had no idea, but at that time sugar was in a bull market trading at about 11 cents and sentenced to 45 cents later this year. Gold, silver and copper are also creating new records. Bunker Hunt was turning silver on the way to $ 50 an ounce. Gold is destined to hit $ 800. In any case, this kid from Boston was on fire and he told me that I miss the possibility of life in sugar futures contracts. He wanted to mail me some hot news from news wire goods. He was looking for a $ 15,000 bet, a lot of money in the late 70's. He said he would buy me four sugar futures contracts. I do not know anything about the goods at the moment, but told him to send more information anyway.

When it arrived, it was usually bullish hype about shortages, disease and reasons for sugar had nowhere to go but up. Somehow he knew to call the moment I got it. He was confident I could make a simple double or triple, so I agreed to send him $ 15K. Now, this part gets interesting. I have not opened the account or sent him money yet. He said he needed to put me on the phone with trading to lock in my four futures contracts for the next day. I was puzzled, but agreed.

The next thing I knew the answers-type phone with a gruff voice shouts: "Trafficking", I said I do not know if I should speak with him, because I did not know what to order. I think I was on speaker phone because I heard some guys laughing in the background. He said: "OK, you are locked in the October 4 sugar commodity futures contracts on tomorrow's open." I said, "OK, I guess," and hung up. By the way, why is that most aggressive brokers put naosoran, hoarse voice acting, as if you were in the trading pit yelling all day? I hear it all the time ... funny.

Kid commodities broker called me right back to you my congratulations on a smart decision. He sent me the forms of goods account overnight service. I must admit I was excited. I had no idea about the commission rates, the potential risk, the size of the place ... nothing! But I wanted in! I was the perfect sucker. When the bill arrived forms I fill them out and was getting ready to send everything back.

by accident, I got a call from my CPA on other things. I explained to him about this new venture. Somehow, he knew something wrong and told me to go. I called the Boston Children merchandise back and told him my CPC has given the green below. I had a hard time getting a child with a phone. He called me spineless, said we were supposed to be a real man, and I regret missing. He also said that the need to stop acting like a woman. For the next three days with their friends in turn we are working through trying to close the sale. In the meantime, I started reading about commodity futures trading. It was the first real move I made!

Part two of the four - next

There is a substantial risk of loss trading futures and options and May not be suitable for all investors. Only risk capital should be used.

READ MORE - Commodity Trading Blunders I, PART 1 - My Early Days As A Novice Trader

Change in Commodity Trading & Trend Following

So many times I hear clients when it retreats to say: "There are changes happening in the commodity trading and trend following." Commodity markets are changing. They are not as they once were. Trend following is dead. This retreat proves the trend following is dead.

Well, I'll give you my 15 years plus experience, and against these thoughts. First of all, nothing changes. You know what trend following, what causes it. Not trying to be funny, but the trade of goods, which lasts from the time of Joseph in Egypt, the sale of wheat. If you read your Bible, he cornered the wheat market, there was a trend in increased pšenici.Cijena. There will always be shortages, panics, fears and hedgers, and therefore the trends. One can look at the charts from the 1800s and look at the wheat and even cotton. What do you think happened to the price of cotton in the U.S. Civil War. Do I have to remind you what happened to crude oil during the first Gulf War. Human nature never changes ... Fear and greed never seems to change ... So the trends are. If you want to consider making money in commodities one of the ways I feel strongest about trend following. No predictions ... just reacting and trying to catch a trend or a surfer trying to catch a wave. Not too different.

Now, if you believe that there is a trend, then you must realize that it does not happen when you want them. There may be a year at a time ... nothing happens. At this point, most professional investors do not give up and say trend following is dead and commodity trading advisors stench. Well, many times after that trend following returns from the dead and commodity trading advisors New hit record peaks of trading. This brings me back to my holy grail of the word "patience." If you can be patient, disciplined, have a sound trading methodology based on risk management and money management, you stand the potential extension to grind some decent returns.

next thought ... again, those same inexperienced commodity traders say, "Commodity markets are changing. I change my system and its methodology." Again, with the experience watching it has a chance to do and see everything nije.Samo things you can do over time are simple ideas are based on robust risk and money management.

To give an example, Richard Donchian uses a very simple idea. Buy 22 days High ... 14 days to sell low. It is the foundation ... Not too complicated, but it takes more risk and money management filter. Not sure if it was John Henry from JWH and Dunn Capital ... they were referred to the rules of our system can be written on the back of the envelope. Pretty funny, because with them at various points in their careers are managing more than $ 1 billion. If you want to be a winner in the arena of trade goods to understand it takes time, discipline and patience. This is not a get rich quick. It is a combination of their way to riches if you follow the rules of risk management and money management. All this is easy to say, but when you get down or in your trading account or when the commodity trading advisor is down 20% or more, and you want to quit, remember:. Would you like to be a winner or a loser

to understand exactly how your mechanical trading system works. Do not think I'll buy the black box and make money. Ask questions to your advisor commodity trading ... what gets in the store .. from the store ... the loss or gain .. How much risk per trade .. how much risk by sector ... how a portfolio of open trade risk ... or margin on the capital. If you do your homework ahead of time, do not even think about trading commodities. These are hard truths about the merchandise. It is not easy. Futures and commodities trading involve significant risk. People can lose money trading.

READ MORE - Change in Commodity Trading & Trend Following

Managed Futures - How to Pick a Commodity Trading Advisor

During the past seven years the money professionally managed commodity futures markets has more than quintupled! According to hedge fund tracking company Barclays, assets under management grew from approximately $ 41 billion in 2001 to more than $ 219 billion today!

As the world demand for commodities continues to heat up and more investors (institutional and individual) will begin to receive the goods as a reasonable investment vehicles, this trend is expected to continue. This growth has also raised the need for ways to select a commodity trading advisor. In this article, we describe what we believe are some of the best tools and methods available to individual investors when choosing a managed futures products.

Let's first define what is a managed futures and what they are. Managed futures are not stocks or ETF's, which is just an investment in commodities. Managed futures accounts are investments in funds that invest mainly in effect, since the contract for goods or financial instruments. Goods can include sectors such as food, energy, raw materials and financial instruments such as interest rates and stock indices.

leverage, risks and rewards can be (but not always) much greater when investing in futures markets vs. burze.Nacionalni Futures Association and Commodity Futures Trading Commission regulates the managed future investments in the U.S. (unless the company / fund have "liberated" status). Regulated companies held commodity trading advisors (CTA) or Commodity Pool Operators (CPO's) license, but remember, just because the company carries a license in any way approve of future results. Futures trading can carry large potential risks and is not for everyone. Investors should be aware of all risks before investing.

Finding a list of potential managers for sorting is quite simple if you know where to look. Companies such as Barclays Trading Group, Stark Research, Autumn Gold and Altegris investment manager database information available. AutumnGold summary for free (with registration) on-line database of over 450 programs. Also, programs can be sorted by a wide range of parameters, such as minimum account size, assets under management and a variety of performance measurements.

The only problem I see with online databases that can be somewhat overwhelming to try to narrow down your choices to just a few managers. To simplify the process, we want to share what we think are some of the best performances.

Our first recommendation is to forget to return! Least significant statistic is often a manager return. How do you ask? What is important is the risk adjusted return. Just because someone bet the farm and got lucky does not mean it's a wonderful idea. Sooner or later (usually before) the inevitable ruin will happen to the manager betting too aggressively.

There are many traditional risk-adjusted return measure, the most popular of which is omjer.Sharpe Sharpe ratio compares the return relative to the volatility of the underlying investments. Although we are in agreement with the Sharpe ratio is the logic, we believe that a serious nedostatak.Nedostatak that the Sharpe ratio only views past volatility and do not try to predict future volatility. As a result, we feel the Sharpe ratio does not provide adequate view of the potential risks involved in the program.

a good example of this comes from the world "option writers" (those who sell options). Since most options expire worthless end, it is not uncommon for managers to sell options that have excellent Sharpe ratio. They can have a smooth looking equity curves that are produced for many years, but only because the equity curve looks smooth and consistent does not mean it will stay that way. What has happened is pointless if you do not have the same results. Option sellers with excellent long term track records tend to have a quick, spectacular "blowups." Problem is, in our opinion, that the past volatility is not a reliable indicator of future volatility.

is a reliable predictor of what you ask? In our opinion, one of the best predictors of the volatility of the "margins and capital" (MTE). MTE tells you approximately how much your investment will be used for margin purposes. This number will vary from day to day manager, but you can get in the average range. If, for example, managers MTE was 10%, this means that for every $ 100,000 invested manager uses about $ 10,000 for this margin. Keep this in mind, the exchange set the margin on the basis of approximations rizika.Veća exchange sees risks in the contract are set higher margins. We encourage you to think as an exchange and increase your expectations for the potential risk as the MTE goes higher. If we go back to the example of the ability of writers with exceptional Sharpe ratio, you'll also see that they often have high MTE ratios. We believe that these high MTE ratios are the tipoff that could have avoided many catastrophic scenarios. Once again, just as the exchanges often raise margin requirements as the expectation of volatility increases, so we see the potential for volatility (risk) that is more like MTE grows.

Another important use of the MTE is reduced to pure mathematics. If you have two managers that $ 30,000 back, but a used $ 30,000 in margin to do so, and the other used $ 60,000 in margin to do so, then the results are different. Based on the margin using a manager's return was twice as high as second. It is important to note, because often managers can appear to have similar performance, but when you dig down into my margin usage you see a big difference.

What is the ideal MTE? In our opinion, we do not like to see the margins on capital ratios well above 10%. This is the low end of the spectrum for the future of managed accounts and reduces most of the managers. While it is true that low MTE ratios are not a guarantee of lower risk, we believe that, at least, it's probably a decent gauge of sound risk management. Once again, it is our belief that as the MTE rises so that the potential for risk. There is also related to risk measurement, which is often called "portfolio heat" which uses similar concepts.

In short, what we propose is to compute returns not based on what the manager reported, but on the basis of return on margin (you should also calculate the risk and drawdown in the same way). This will level the playing field and allow you to compare apples-to-apples. We also have the benefit of being on the conservative side of the MTE spectrum, for us it means we will likely reject any manager with a ratio of 10%. Using this method can help you narrow down the list of choices for the handling of very quickly. After you've done it, then you can view and compare all other risk adjusted performance measures and to further enhance your choices. (At the risk in this article too long we will save other risk adjusted measure for future discussion rate ).

We want to warn once again that, in the end, no measure of guarantee or insurance against risks and losses. Past performance is not always indicative of future results. Futures' trading involves risks and is not for everyone. We are simply sharing with you what we think is the best way to choose a manager.

READ MORE - Managed Futures - How to Pick a Commodity Trading Advisor

Forex Trading Software - 3 Top Tips

Further in Forex trading, when you're just starting out can be difficult. Since it is well advised, and use a good plan can be important elements in whether someone is doing something right and succeed, or apply the wrong techniques and fails. If you do it right, the end result may be difficult to -. You can end up struggling to learn the Forex market, perhaps even completely running out of money

Here are three proposed steps that will help you to lower the error at the beginning of his career trafficking.

First, learn about forex and how it works.

must obtain a basic understanding of what is Forex and how you can trade it, because this helps to avoid confusion about the Forex market. Not getting it done properly could making a simple mistake early in the trading career. So please do not make the mistake of neglecting this important point.

Another thing is, focus on one major currency pair

This is almost as important as learning about the Forex and how it works. When you are aiming to succeed in Forex it will be tempting to try to start trading in all kinds of currency pairs, but before you know the ropes, it would be wise to stay clear. Accept from me, it's not something you want to by-pass. It can help to break the Forex trading and give you in-depth knowledge on how to trade currency pairs, and all who are involved in forex trading beginner wants.

Finally, get some decent forex trading software!

When your learning about forex trading beginner, just be sure to look at some software that can help you to successfully analyze the market. It tends to help with increasing your learning speed, and spot opportunities, it is an important element in learning to trade forex properly. Failing to do so could mean that he might find difficult to learn forex - and we can probably conclude that it would probably be a bad thing

As mentioned above earlier, if you hope to succeed in forex trading beginner, you should steer clear of that kind of mistake could cause you to end up struggling to learn the forex market, or even completely running out of money. What I really want to become a successful Forex trader, making money in the process, and you May reach this goal by following the tips above and getting the right Forex trading software.

READ MORE - Forex Trading Software - 3 Top Tips

Trading and Profit and Loss Account

trading account

As already explained, the first part of trading and profit and loss account is called trading račun.Cilj of trading accounts to find out the gross gain or gross loss, while the other part is to find the net profit or net loss.

Creating an account enterprises

Trading account prepared mainly to know the profitability of goods purchased (or manufactured) sales biznismen.Razlika between selling prices and cost of goods sold is 5 obtaining a businessman. So to calculate the gross salary, you need to know:

(a) the cost of goods sold.

(b) sales.

may determine the total sales of the book sales. Cost of goods sold, however, is calculated. n order to calculate the cost of sales is necessary to know its meaning. 'prices of goods "includes the purchase price of the goods plus expenses related to the purchase of goods and brining the goods to the place of business. To calculate the price of goods" should be deducted from the total price of goods purchased prices of goods into the hands we can study this phenomenon using the following formula:.

Opening inventory + cost of purchases - closing stock = cost of sales

As already explained that the purpose of making a trading account to calculate the gross profit in the business. It can be described as an excess amount of 'selling' through 'Cost of sales'. This definition can be explained by the following equation:

Gross Profit = Sales-Cost of goods sold or (Sales + Closing Stock) - (Stock at beginning + + Purchase Direct Costs)

opening stock and purchases with the purchase and bringing costs (direct exp.) Demonstrate the debit side, while the sales and closing stocks recorded on credit side. If the credit Jeater from borrowing the difference is written on the debit side of the gross profits, which ultimately is recorded on the credit side of profit and loss account. When the debit side exceeds the credit side, the difference is the gross loss, which was recorded on the credit side and end shown on the debit side of profit and loss account.

The usual items in trading account :

) Debit Side

1 Opening Stock. This is a stock which remained unsold at the end of last year. It must be brought to book with the opening of registration, so it always appears in the trial balance. Generally, it is shown as the first item on the debit side of trading account. Of course, in the first year of operation will be the opening stock.

2 Of purchase. This is normally the second item on the debit side of trading account. 'Purchase' means the total purchase, plus cash or credit purchases. Any return to the van (purchases return) should be deducted from the purchase to determine the net purchase. Sometimes the goods received before the relevant invoice from the supplier. In this situation, the date of preparation of final accounts intake should be voted on debit purchases and credit the account vendor account with the cost of goods.

3 Buying costs. All costs relating to the purchase of goods are also charged in the trading account. It includes salaries, freight inwards duty, cleaning fees, and charges, levies, octroi and import duties, etc.

4 Production costs. Such costs are incurred for the production of business or the provision of goods in a favorable condition viz., Motive power, gas fuel, stores, fees, factory, foreman and supervisor salaries, etc.

Although production costs are strictly take into account the production because we are preparing only trading account, the cost of this type may be involved in the trading account.

(B) Credit Party

1 Sales. Sales means the total sales, or cash plus credit sales. If there are any sales returns and should be subtracted from sales. Thus, the net sales recorded in the trading account. If the assets of the company is sold, should not be included in the sale.

2 Closing Stock Exchange. This is the value of unsold inventory is in Godown or shop on the last day of the accounting period. Normally the day of closing stock is out of balance trial in this case is shown on the credit side of trading account. But if it is given within the trial balance, it is not to be shown on the credit side of trading account but appears only in the balance sheet as assets. Closing stock should be valued at cost or market price whichever is less.

Assessment of market close

to determine the value of closing stock is necessary to make a complete list or a list of all items in their own god, together with the quantities. Based on physical observations of stock lists were prepared and the total value of inventories is calculated based on unit values​​. Therefore, it is clear that the stock intake includes (i) inventory, (ii) price. Each item is the price at cost, unless the market price is lower. Price at cost of inventories is simple, if the cost remains fixed. However, prices will remain fluctuating,. So that stock valuation is done on the basis of one of the many methods of evaluation

is preparing trading account trade helps to know the relationship between costs incurred and income and the level of business efficiency with which provedena.Omjer gross profit from sales is very significant: it came from:

X 100 Gross profit / Sales

With the main reward ratio can determine how efficiently the job is running higher the ratio, the better will be performance.

Closing Applications relating to the trading account

to transfer a variety of bills relating to goods and buying costs after closing entries noted:

(i) To open the Stock Exchange: Debit trading account and credit stock account

(ii) to purchase:. Debit trading account and buy credit accounts, the amount of the et amount after the deduction of purchase return

(iii) to buy back:. Debit purchases return account and credit purchases account

(iv) to go back inside: Debit sales account and credit sales returns account

(V) for direct costs:. Debit trading account and credit the direct costs of individual accounts

(vi) For sale: Debit sales account and credit account company. We find that all the accounts as mentioned above will be closed with the exception of trading accounts

(vii) the closing share: Debit closing stock accounts and credit trading account After recording the entries above the trading account will be balanced and the difference of the two sides established. If the credit side is more the result of gross profit for which the records are.

(viii) The gross profit:. Debit trading account and credit the income statement if the result is a gross loss over the entrance to the opposite

Income Statement

profit and loss account was opened by the recording of gross profit (the credit side) or gross loss (debit side ).

to achieve a net profit of entrepreneurs has cause a lot more costs than direct costs. These costs are deducted from net income (or add to the gross loss), the resultant figure will be a net gain or net loss.

costs are recorded in profit and loss account are ailed "indirect costs". These are classified as follows:

Cost of sales and distribution of .

These consist of the following costs:

() Salesperson salaries and commissions

(b) Commission agents

(c) Freight and transportation for sale

(d) Sales Tax

(e) bad debts

(F) Advertising

(g) Packing Costs

(h) export duties

administrative costs .

These are:

(a) The salaries and wages

(b) To ensure that

(c) legal costs

(d) business expenses

(e) Rates and taxes

(f) audit fees

(g) provision

(h) Lease

(i) Printing and stationery

(j) Postal and telegraph

(k) Bank charges

Financial expenses

These include:

(a) Discount allowed to

(b) Interest on capital

(c) Interest on the loan

(d) Discount accusations discounted

maintenance, depreciation and provisions, etc. .

These include the following costs

(a) Fix

(b) Depreciation

(c) the provision or reserve for doubtful accounts

(d) Reserve for discount on debtors.

With the above indirect costs debit side of profit and loss account includes a variety of operating losses as well.

on the credit side of profit and loss items recorded are as follows:

(a) Discount given

(b) The Commission has received a

(c) Rent received

(d) Interest received

(e) Income from investments

(F) Gain on sale of assets

(g) Bad debts recovered

(h) cash receipts from dividends

(i) Apprenticeship premiums, etc.

READ MORE - Trading and Profit and Loss Account

Is Forex Trading Courses Beneficial?

Most novice Forex traders are bound to make mistakes early in the trading life. As time passes, these people will eventually learn from their mistakes and improve your trading skills. However, these mistakes are really expensive. Would not it be good that one can learn from other people's fault, so they would not repeat the same mistake? In fact, a successful trader often learn from other professional experience. This is as good as gain experience without any risk, it's just a matter of investing in yourself.

number of effective training courses have been developed to accelerate one's learning phase. As the technology progresses, today Forex traders can work from your computer. Therefore, it is a natural place where you would like to have your educational materials kept for quick reference. So you will find a large number of Forex trading courses available online.

So, not a successful Forex trader studies a considerable amount of forex-related material?

There is no doubt. You'll have to read a certain amount before you can successfully trade with foreign povjerenjem.Svijetlu study courses Forex trading is that it is practical. You can learn and apply in practice, it immediately tries to demo Forex account for the difference of study for the exam and there are not many application needs in real life.

Most forex courses will provide you with one or more trading strategies you can apply to the market. However, it is important to follow the instructions exactly. Do not think you could cut corners or to apply the system in a completely different way. It simply will not work as a guide has already been tested by experienced trader. You must believe in the system and put into practice just as described. Well, at least try the demo account if there is a lack of confidence in the system provides. Of course, if you're familiar with it, and could improve further change. However, always test new strategies learned in the demo account and not the real market. This could reduce costs for the mistake.

for an experienced trader, it is appealing and worth investing in a live Forex trading courses to enhance your trading vještine.Žive forex trading course can open your mind to different trading strategies and can give you up to date advice. We also act as a platform where you will meet a like-minded people and thus enable the expansion of the network. After that, you can keep in touch with these people for further discussion of foreign exchange trading.

It was inevitable that, of course, but can cover most things that you know especially if you engage in Forex trading for a period of time. However, this course may comprise nuggets of gold that you are looking for. Therefore, in order to choose the right course, and convenient, it is best if you read the description of it in detail and to measure the cost of the benefit. Examine it and pick what you use. Professional traders often invest in themselves an advantage over trading in real tržištu.Osoba who traded in the Forex market without a substantial amount of knowledge is often seen as a gamble, rather than investment.

READ MORE - Is Forex Trading Courses Beneficial?

2StockTrading by Anthony Green Review

Anthony Green has documented his system 2Strock Trading , and says that if you use your team's secrets, you can make an average of about $ 150,000 a week! What he will share with you the eBook, which includes not only the basics of stock trading, but also very specific stock trading strategies and various tools used to make consistent profits.

No special knowledge required

eBook will explain all the strategies, and requires no special knowledge, without any complicated technical skills, no maps, no technical analysis, it is thoroughly explained examples, charts and pictures, so it becomes easy to use. All you have to do, he stressed time and again to follow the steps exactly, without deviation.

Incredible course

Of course, everyone wants to be sure-shot methods to actually benefit from the stock trading which is simple and safe. Anthony Green argues that with consistency, determination and, of course, this method will really work. This eBook course is the same basic course that teaches Anthony Green in his packed workshops and seminars, so that is proof that the system will no doubt work as well as others have flocked to hear his strategy in the past because of word of mouth alone!

product feedback is excellent, and an unconditional money back guarantee to those who buy the system, simply e-mail and ask for 100% refund if not satisfied with the product! Because I love math, I was impressed with this data: Through 154 countries, has 263,000 using this program successfully. This is an astronomical figure does not think?

Support staff

His award winning support staff also supports this highly advanced strategies, and will never be alone, they will be able to help with every step easy. In addition, you will receive free bonus of some very amazing books that are written by people like Benjamin Franklin, PT Barnum, and both of which were filled with excellent advice on making an enormous amount of money. Other authors were James Allen, Dr. Russel H. Conwell, and Napoleon Hill.

READ MORE - 2StockTrading by Anthony Green Review

The Time Tested System: Trading Backtesting

Imajte na umu da je trgovanje backtesting je vrlo vrijedno ulaganje vremena i novca. To će vam dati sposobnost da razumiju vaš unutar trgovinskog sustava i izvan te će vam dati povjerenje za trgovinu sustav uspješno.

...

is the process of trading backtesting test trading strategies using historical data rather than testing it in real time with real money. You have designed the system, now you need the confidence to follow through all of their trades. Through backtesting, you will get to know your system thoroughly and will therefore be able to build a foundation from which to operate.

There are three ways to backtest. First, there is a mechanical tests back, using the software, manual backtesting and paper trading, which maintains the system and trading in real time with no money in involved. With mechanical backtesting, you can take your system, defined on the set of rules and load into your software and allow the software to backtest over a period of time. This method can be difficult, if not particularly computer literate programming system for the backtesting. Also, you can program in all possible outside events. For example, how could you possibly program in the events of 11 September? It will be possible to take into account all the outside events.

manual backtesting is a better choice if you are finding it difficult software and easier to implement. However, the manual backtesting room for human error and subjectivity, which you can not find a mechanical backtesting. Paper trading, where trading in real time without using money, there are advantages and disadvantages of manual backtesting.

backtesting trading affects the first, its input and output. You can test the entire system's performance and can make the necessary adjustments needed. This will affect your money management. You can test different systems of money management through backtesting. Finally, psychology is influenced backtesting.Temeljito understanding of your strengths and weaknesses of the system will greatly enhance your trading confidence.

Without testing, the traders will lack confidence and will be tempted to modify their trading plan and to replace their system with any new wonder of Bang indicator that comes along. When trading system was backtested, however, will be able to continue trading even after a long series of losses, if historically you've seen that you can still come out ahead after the number of losses.

Without testing, the traders will lack confidence and will be tempted to modify their trading plan and to replace their system with any new wonder of Bang indicator that comes along. When trading system was backtested, however, will be able to continue trading even after a long series of losses, if historically you've seen that you can still come out ahead after the number of losses.

...

What you should be looking for a good trading system with minimal drawdown and a good risk to reward ratio. Many trading systems have more losing trades than winning ones and still make money.

Please note that trading backtesting is a very worthwhile investment of time and money. This will give you the ability to understand your inside and outside the trading system and will give you the confidence to trade the system successfully.

READ MORE - The Time Tested System: Trading Backtesting

The Basics on Physical Gold Bullion Trading

When it comes to trading, that means buying and selling products. Most gold bullion businessman to make this kind of business. Once they buy it, they will sell it for gold dealer to get a good profit.

There are some entrepreneurs who are buying gold and treasure and sell it when the price is higher. This usually happens when the economic crisis in which most prices, including gold go up.

Most people who invest in gold to buy it at wholesale prices and sell it to gold dealers, jewelers, etc. for retail prices. Gold trading is very advantageous for a business who deals with this kind of work even though it involves a large amount of money to invest in.

Here's how one aspect of the trading business djela.Gospodarstvenici will buy it from suppliers at wholesale prices, since they buy gold in bulk. Then it will sell the business to different gold dealers and jewelers in the standard price and the market.

As for the price of gold, it's not permanent. Gold prices change everyday. Sometimes the price of gold rises higher, and sometimes the price goes down. To be in this kind of business, must have knowledge of gold and be smart enough to deal with this type of activity. You must be cautious in the current price of gold, where you need to know that every day.

Trading is not easy business. You have to know where to get gold bullion or gold suppliers. You also need a large capital outlay for this type of business. As a precious metals trader, one must know how to deal with a golden business or dealers.

Some people prefer dealing with coins, because they are easily moved and transported, and not in gold bullion bars. But it depends on who you want to buy gold bars and sell. Although gold bullion is a different size or in the bar or in money. Gold bullion coins are easy to hide when they stock in their home.

Of course, now buy the futures, equities and ETFs. There are even dedicated to the gold stock, where you can buy and sell 24 / 7 This radically changed the nature of what it means to trade gold.

you can go online if you want to know more about coins and bars. Coins have different designs and features as well as bars do. Online survey for gold is easy and convenient.

There is also online trading, where you can compare prices. A lot of web page where you can log on to window shop before buying. Be sure to get a reputable supplier or vendor. Remember to be careful when buying gold online. In this work, it involves large amounts of money and be wary of fraud in online trading of gold bullion.

READ MORE - The Basics on Physical Gold Bullion Trading

Forex Trading Course - Learn How to Be a Successful Trader

market Forex trading is one of the largest markets in the world. This is done five days a week for about an hour and it has attracted many investors who are either online or offline store. There are a lot of experienced players in the market every year, the market also welcomes the new and small players. This is because the job is very flexible for anyone who understands its basics. Those who are interested in online business should learn effective as on-line trading, and those who are interested in online business. One of the most popular ways that you can about the business by enrolling in the course of Forex trading.

There are many institutions that offer courses online and offline. You will learn several strategies to be applied in business, if you are trading productive. Since the technical market, it may take a long time for one to master all the tactics involved in the business. However, the rate and quality of training, you'll easily some of the most important aspects of the business, including:

• Currency and currency markets around the world
• Trading Platform
• Automated trading software, especially for those who want to learn what is online trading?
• Candlestick charts and how to use them
• Fundamental analysis of different currencies and their trading based on

course, you will be taught all the technical aspects of trade and to venture into the existing market smoothly. There are things to do and those that should be avoided when investing in the store. Basically, no one has to be an expert to do it on the ground. The rule is to learn and obey the rules of business. Your teacher will therefore need the data that will give you a better trader. Most coaches are former business people, so they understand when certain principles should be applied. In this case, they will ensure that you learn how to make wise and informed decisions before your investment.

Of course, Forex trading provides an exclusive opportunity for everyone to have a better understanding of the business to make profits even in adverse economic conditions. It is very important to pay attention to the risks you may encounter in business and how to manage them. These are some of the important concepts that will be taught.

Also, you will learn all aspects of business, including what is on-line trading, history, psychology and effective strategies that will help you become a better trader

.

READ MORE - Forex Trading Course - Learn How to Be a Successful Trader

Commodity Option Trading System

>...

so it is important to choose a commodity option trading system that fits well with this type of price action. One factor to bear in mind that the supply of and demand for many commodities are seasonal in nature. Understanding this will help you develop a trading approach that takes advantage of this.

Which commodity option trading system is best?

Let's divide our discussion into two parts here.

1 Trending markets

understanding of seasonal influences on commodity market prices to help you predict when the change or continuation of the trend is likely. This being the case, you can choose to simply 'go long' (ie buy) or call or put options, usually with at least 90 days deadline, so you can take this.

the best options for purchase under these conditions are those that are either on-the-money (ATM) or a first strike price out-of-the-money (OTM). You do not want to go too far from it, or the option value will not increase much even with the big move. OTM options are cheaper than ATM ones, which means that the profit potential is increased after the options in cash. It is not uncommon for well-timed OTM option on goods increased 1,000 per cent of its value after a new trend begins.

the best options for purchase under these conditions are those that are either on-the-money (ATM) or a first strike price out-of-the-money (OTM). You do not want to go too far from it, or the option value will not increase much even with the big move. OTM options are cheaper than ATM ones, which means that the profit potential is increased after the options in cash. It is not uncommon for well-timed OTM option on goods increased 1,000 per cent of its value after a new trend begins.

...

the best options for purchase under these conditions are those that are either on-the-money (ATM) or a first strike price out-of-the-money (OTM). You do not want to go too far from it, or the option value will not increase much even with the big move. OTM options are cheaper than ATM ones, which means that the profit potential is increased after the options in cash. It is not uncommon for well-timed OTM option on goods increased 1,000 per cent of its value after a new trend begins.

...

the best options for purchase under these conditions are those that are either on-the-money (ATM) or a first strike price out-of-the-money (OTM). You do not want to go too far from it, or the option value will not increase much even with the big move. OTM options are cheaper than ATM ones, which means that the profit potential is increased after the options in cash. It is not uncommon for well-timed OTM option on goods increased 1,000 per cent of its value after a new trend begins.

...

If the price goes below in its favor, the price of ITM options will increase at a rate closer to the basic rate increases due to higher delta and selling OTM option will not experience the same growth rate until it gets deeper into the money.

...

2 Volatile markets

commodity option as opposed to stock options in the basic product, and not the company. Products such as wheat, sugar, oil and bonds are more affected by natural disasters and international news events of the company's share price, unless the company's fortunes are heavily linked with a particular product.

For example, war breaks out in any middle eastern country. What will happen next? Oil prices have become very nestabilnim.Uragan sweeps over the sugar producing area. What is happening? Sugar prices soar ... and so on.

implementation of the right kind of commodity option trading as soon as the news of this type of fracture may result in profits that are not only healthy, but certainly, as well.

affected

affected the ability to strangle the positions in the newly volatile markets can be very useful, because they are ideally suited for large moves in a short time. They are also non-directional, so you do not care which way the underlying price moves, as long as it is significant. Very often, there will be initial reaction to the news, followed by a turnaround after its effects are known. This is the perfect time for a straddle or strangle that come into play.

volatility that is ideally suited for these types of trades usually works best at the beginning of a bear market. Bear markets are characterized by wild swings, such as panic, followed by buyers taking cheap options, causing the market to spin back and forth with a big swing.

READ MORE - Commodity Option Trading System

Mini Dow Trading Strategies

Mini Dow trading strategies have become very popular now with the creation of mini-contract on the Dow Jones industrial index, also referred to as "the Dow". Dow consists of 30 publicly traded U.S. companies across diverse segments of the U.S. business landscape and is one of the "Big Three" of the index were seen with the S & P 500 and Nasdaq among investors and Wall Street. In addition to closely monitor, the Dow is popular among futures traders who specialize in trading index futures because of high liquidity and fast moving price action in particular with the creation of "Mini Dow," which is the smaller size of the futures contract which is 1/10th the size of the regular Dow futures contract. It opens the index futures market for smaller private traders, but many of these types of retailers that attract opportunities in the Dow lack of understanding of how price action develops, and the corresponding trading strategies used to Dow trades in order to get on a consistent basis.

Fortunately, there are 3 basic understanding of the kinds of price movements that exist within the mini Dow can help you design a workable approach to trade profitably in this tržištu.3 type of price action trends, breakouts, and support / resistance.

First, the trading trends cornerstone of successful trading as evidence for a common trade maxim, "the trend is your friend." The reason why you want to trade trends can be summarized in Newton's first law of physics that states, "an object in motion remains in a state of constant velocity if it works on an external unbalanced force." Mini Dow trading strategy based on the following trends will find that when the trend has the form tends to move steadily in one direction until something causes or to stop the kind of trading range, or vice versa price, but until then, the mini-Dow will remain constant regardless of the current during their travels.

Breakout trading is the most explosive of 3 mini Dow trading strategies and can quickly make huge profits in the shortest period. When the price action has been trading back and forth in a tight trading range, if a sufficient number of orders, and trading volume increase may lead to an explosion of prices from this price range and take off in one direction while the trade volume spikes over. Trade volume is like rocket fuel for the price in much the same way as the rocket remains inert on the ground until an enormous amount of fuel generates enough power to put the rocket in motion, the drive is larger. Then the volume of trade, and the amount that was generated by a key factor in trading breakouts in the mini-Dow, and could lead to big profits, if the time correctly.

Finally, trading support and resistance levels was one of the most reliable approach for trading Dow mini and practice spotting trading ranges in price action, and then identifying the price points that act as support for the implementation of long entries and resistance price points for placing short entries. Trading ranges are formed when there are not enough buyers or sellers to take control of Dow mini trend and result in a back and forth movement in the price. Price cancellation of these two price levels, because there are a sufficient number of traders at this level to hold fast to their positions and force the price back in the opposite direction. Do enough volume of trade entering the range of prices in sufficient quantity in both directions, prices will trend or breakout and remain in a trading range, where you can trade between support and resistance until something forces from the agreed price range.

These three trading strategies are all based on the ability to use price action on the spot ideal points on the Dow mini market and a way to quickly train them to recognize at first glance is to spend time studying the ticket price. Through repetition, and time spent studying price charts and mini Dow price action, you will train the visual cortex in your mind, part of the brain that is responsible for pattern recognition, in order to immediately identify patterns as they begin to form. It may give you a big competitive advantage over other traders, as well as helping you understand instinctively that the strategy for the application where others can see prices unrecognizable lines, give you the opportunity to more cost-effective entry point and time of your coming out with greater precision.

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What To Expect From Day Trading Courses

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All trading course will definitely have some differences, but they will generally have several common elemenata.Zajedničke The first step is a general class of type classes. Here you will learn key terms and concepts that are essential in becoming successful in online trading. Concepts such as electronic communication networks, market makers, arbitrage and wash sale rules are just some of the topics that will be generally introduced and explained.

a good trading course will also help you gain familiarity with some of the leading trading programs that are available. Programs such as eSignal, NinjaTrader and NeoTicker can be imported, and of course can give you instructions on how to use programs like these to find potential trading ideas. By mastering one or more of these software programs, you will gain a significant advantage in managing the massive flow of information available on the day trader. It is the management of that information in an efficient and productive thing that will allow you to make quick decisions needed to make a profit on trading. Another aspect of the course will probably be hearing from the best online brokerage accounts for the performance of the trading day.

The final step involved in many courses in day trading will take you through a simulated trading session. This is probably the best way to ensure that you really have a feel for all the concepts involved, and you can spend the appropriate trading strategy. It will also help draw attention to problems or deficiencies that may be present at their strategy, but without placing real money at risk. This should ensure that you are fully trained and ready for success after a nap in the day trading for real.

As you can see, getting online trading course that will be putting yourself in the best position to make a substantial profit through day trading.

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Simple Forex Trading Strategy - A Quick and Easy to Learn Method for Huge FX Profits

Here we see a simple Forex trading strategies that will make a huge forex dobitke.Metoda can learn quickly if you use it correctly, triple digit revenue can be made in about 30 minutes per day -. Let's take a look at it in detail

If you want to trade currencies the quickest way to learn to trade the charts - anything will do is focus on price action and seems to sit and ride trends for profit. What you need to do to earn money is to be a simple input method that gets all the biggest and best trends. Now we see a very simple input method can be used.

If you study the map and look at all the currency pairs, you will see that all major trends start and start - breaking overhead chart resistance. When the trend in motion after the initial transfer, it will still switch to a new high, so you need to focus on the purchase, when the level of resistance gives way and ride the trend for profit. It is a proven way to make money, and many of these trends, it may take several weeks, which can make big gains.

Most traders prefer to try to pick market bottoms, and they lose money - but this method trades the reality of price change and puts the odds on your side. Your not hoping, guessing or predicting -. Your commercial reality

for the use of this strategy is right to make sure you are patient and selective in their crafts and trade only the level of resistance that was before the interruption occurs, tested and maintained by the company in the past - so many tests I need? Look for at least six or more tests, and when the level of the break to get on board.

You will not get a lot of trades with this method, probably about 4-6 months, but this big breakouts, can you triple digit gains, and even better, you will spend more than 30 minutes a day this simple forex trading the strategy.

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Forex Online Trading - Something Which Can Bring You Profitable Investment

Posljednje, ali ne i najmanje važno, morate vjerovati u sebe. Ponekad, da bi se kratkim rokovima fluktuacija na tržištu. Neki od neiskusnih trgovci će se bojati, a zatim zatvorite tržištu u krivo vrijeme. Ali ovo je očito glup stvar u očima iskusnih trgovaca. Stoga, morate vjerovati u svoje vlastite odluke.

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As people may know, this can be very profitable for investors to do forex trading online in the current svijetu.Brz technology transfer to the world trading allows traders to do quickly.

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As people may know, this can be very profitable for investors to do forex trading online in the current svijetu.Brz technology transfer to the world trading allows traders to do quickly.

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Second, you make the right buying and selling decisions. When you do forex trading online, you need to stay focused in the trading system when you really want to make money in some moments of fluctuating market. If you disrupt the game or some social networking sites, you may lose the opportunity to earn money. So, it's really important for you to be calm and quiet when you do forex trading online or otherwise stressed environment will make a loss.

Some successful traders would share their trading 'secrets' in the market through blogs or websites. However, it would not work if blindly follow these tips. Instead of blindly following tips, you must study them in advance. It was found that some investors just follow the strategy proposes a well-known merchants, instead of using their own court to assess whether the strategy is applicable to their portfolio. In the end, they could not get it.

Some of the traders tend to use more complex trading strategies do. However, it is not recommended. Loading up your system with many trading strategies that you are confused. Even professional traders do not take into account the use of complex trading strategies, because there are too many reference points to find and they do not know when it will be the right time to invest.

Last but not least, you have to believe in yourself. Sometimes, in order to short terms of fluctuations in the market. Some inexperienced traders will not be afraid, and then exit the market at the wrong time. But this is obviously a stupid thing in the eyes of experienced traders. Therefore, you must believe in their own decisions.

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Forex Trading - Want To Know The Top 3 Most Powerful Forex Strategies For Successful Trading?

3 strategies that are key to your trading turned around at any moment, and if you really want to succeed in Forex Trading you have to sit up and take notice.

I'm probably no different from you and spent the longest time learning how to trade forex looking at all the magic bullets that are touted to internetu.Nesretni truth is, there is no magic bullet to become a trader.

I understand how you feel, it's frustrating and annoying to get to the truth, when all you want to learn how to trade Forex without all the hype, but the good news is there are some rules of trading, which, if adhered to, you'll have on track in no time!

1.a) Cash Management - boring I know, you would have discussions about it, but believe me it is a major factor to be a successful currency trader. If you do not get the start, otherwise you have to turn off the charts and make forex trading to one side until you do.

(b) the risk reward ratio - in the most simple form must be at least 2:1, if not, be a professional trader and walk and do not take the trade no matter how tempting it seems there's always another around the corner.

(c) Capital - Do not let scam artists fool you with claims of incredible returns, for example, 60% a month on the initial $ 300 dollars if you can do that by a minority of traders that May get lucky a few times and gamble, but long term it's not realistic, just check out the top fund managers.

2) Patience and discipline - I know how hard to wait around for a good set up if that is the point of view of day traders and long term traders, but again no discipline wait will eventually wipe out your trading account, so they learn to sit on your hands, otherwise you will pay.

3) Retail Planning - you need to plan your trades in advance, which goes hand in hand with number 2, which most traders get wrong is the fact that they planned the shop so they must taken in trade, it is so wrong. Out of every 10 plans, only 2 or 3 of them will present what is actually waiting for this FOREX advice can only change your Forex trading forever!

This is just the tip of the iceberg, if you follow just these 3 Forex trading strategies to your trading to a whole new lease of life.

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Trading in Gold and Silver Commodities

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Trading in gold and silver is a speculative nature, which means that it involves a greater likelihood of risk, but a significant profit opportunity and at the same time. Gold and silver trading is becoming a viable, when the economy crisis or collapse of the market share. While trade in goods is relatively easy, but it's kind of risky trading, May you lose all of their hard earned money if you do not trade with the strategy and planning.

Most people think that investing in commodities such as gold and silver, is a form of gambling due to the speculative nature. However, speculation can not be regarded as a pure form of gambling as speculation too need appropriate strategies to execute the plan and make decisions. Thus, bullion trading can be categorized as protection of trade with the speculative nature of which is accepted as an alternative to stock trading as a strategy for protection against inflation and economic crisis.

commodity trading is based on futures trading, so no need to exchange and delivery of physical goods. It also gives you an additional margin payment option where you pay only part of the full payment of the contract. Therefore, trading in commodities like gold and silver becomes viable to improve your portfolio. That is why more and more small investors are now turning to gold and silver as an investment option.

Although trading in gold and silver offers the opportunity to earn a lot of that market, but lack the knowledge and the volatility of price movements can lead to loss of wealth at the same time. These precious metals are traded with large quantities as large investors play a real big role here, and as a result, the swing becomes volatile and unpredictable. So small, and small investors should be careful while investing in precious metals. Remember the smaller you are good in knowledge and experience, are more likely to lose. Trading in commodity market under the influence of supply and demand and the inventory cycle. It is also one of the main obstacles to track the direction of the market availability of supply and demand information is not as strong as the equity market. So keep an eye on these factors to predict future prices becomes necessary in order to avoid unnecessary losses.

How to update

Keep an eye on the global commodities market. Stay connected with news web sites provide the latest updates and data for the goods in the market. Many research advisory companies are providing daily research reports for data supply and demand in the market, with the prediction. They also created after conducting detailed studies and research on these commodities. And these tips are provided to its customers through various media such as SMS and e-mail.

Conclusion-

Although trading in gold and silver goods throws up an opportunity to earn significant profits, but this involves considerable risk. Experts with appropriate knowledge corresponds to the market the best. This would be fully prepared before entering into this risky trading segment.

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High Frequency Trading and the Trading Computer

Did you realize that according to some estimates, the so-called high-frequency trading (HFT) makes 70% of daily volume in the U.S. market for stocks? In fact, trading in computers and HFT is to blame for the flash falls 2010.DIP ordered measures to prevent future flash drop like that one, so you can clearly see the SEC HFT as a risk to the structure of electronic trading. Do you believe that the game is rigged and there is no way to make money trading stocks? Well it's simply not true.

In the early days of the market (the early 1800s to the 1960s), before trading computer, all orders are processed in an open outcry and / or expert system and processed through the pen and papir.Kupaca who want to buy shares called his brokera.Broker would then call up a trading room, which in turn called the dealer, or a replacement for the execution of orders. The process may take 5 to 10 minutes or even more! By the time the customer got his order is filled, the execution many times was very different from what he expected. Back in those days was not unusual that some people take the middle piece. Even in the period immediately before the Internet, brokerage firms could take a few minutes to make a market order and the so-called market makers can literally glide fractions of dollars as a Vegas takes VIG.

Once the internet took off and the fractions were eliminated, information on prices become more transparent and spreads between bid and ask tightened considerably. Online brokerage firms sprang up and order execution in seconds. The invention of high-speed trading computer is an absolute must for traders. Commissions fell to almost zero and 90% of the market makers went looking for a new job. I know because I was a stock broker at the time,. Second half of the 1990s and the early 2000s

On the basis of internet trading and computers have cut VIG to zero! Price performance is not measured in milliseconds. So, where HF traders come into the picture? They are the new market makers. In fact its actually facilitate the execution of algorithms instead of hurt. So the market rigged? Compare to last in the market is much more transparent than it used to be. Did HF traders cause flash crash? There NYSE with its lack of oversight caused it.

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High Frequency Trading and the Trading Computer

Did you realize that according to some estimates, the so-called high-frequency trading (HFT) makes 70% of daily volume in the U.S. market for stocks? In fact, trading in computers and HFT is to blame for the flash falls 2010.DIP ordered measures to prevent future flash drop like that one, so you can clearly see the SEC HFT as a risk to the structure of electronic trading. Do you believe that the game is rigged and there is no way to make money trading stocks? Well it's simply not true.

In the early days of the market (the early 1800s to the 1960s), before trading computer, all orders are processed in an open outcry and / or expert system and processed through the pen and papir.Kupaca who want to buy shares called his brokera.Broker would then call up a trading room, which in turn called the dealer, or a replacement for the execution of orders. The process may take 5 to 10 minutes or even more! By the time the customer got his order is filled, the execution many times was very different from what he expected. Back in those days was not unusual that some people take the middle piece. Even in the period immediately before the Internet, brokerage firms could take a few minutes to make a market order and the so-called market makers can literally glide fractions of dollars as a Vegas takes VIG.

In the early days of the market (the early 1800s to the 1960s), before trading computer, all orders are processed in an open outcry and / or expert system and processed through the pen and papir.Kupaca who want to buy shares called his brokera.Broker would then call up a trading room, which in turn called the dealer, or a replacement for the execution of orders. The process may take 5 to 10 minutes or even more! By the time the customer got his order is filled, the execution many times was very different from what he expected. Back in those days was not unusual that some people take the middle piece. Even in the period immediately before the Internet, brokerage firms could take a few minutes to make a market order and the so-called market makers can literally glide fractions of dollars as a Vegas takes VIG.

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Once the internet took off and the fractions were eliminated, information on prices become more transparent and spreads between bid and ask tightened considerably. Online brokerage firms sprang up and order execution in seconds. The invention of high-speed trading computer is an absolute must for traders. Commissions fell to almost zero and 90% of the market makers went looking for a new job. I know because I was a stock broker at the time,. Second half of the 1990s and the early 2000s

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