Commodities Futures – The Best Contracts to Trade
Here we look at the best contracts to trade, for long-term trend followers - and how to blend these commodities and futures contracts, to obtain good diversification - and great profit potential. We also reveal the one commodity contract, which any trader should be looking to trade. One of the great advantages of commodity futures trading is the wide variety of un-correlated groups that you can trade. The main trading groups are: . Currencies
. Interest Rates
. Stock Indices
. Grains
. Meats
. Energies
. Metals
. Food and Fibre The big moves only come a few times a year - and of course, in futures and commodities, it’s the big moves that make the big profits. Single Groups or Diversification? In futures, and commodity trading, this depends on the risk / reward you want - and the amount of capital you have. If you trade just one or two groups, then your commodity and futures trading risk / reward in will be higher The Best Contracts to Trade We have outlined the best futures and commodities contracts below - based upon the following criteria: . Liquidity, and investor participation
. Long term trends, over the last 30 years. Currencies A great market for long-term trend followers - all currencies exhibit long-term trends - as they reflect the underlying health of the economy. A good place to start is the Dollar Index, which can be less volatile than the individual currencies - and is suited to long term position traders. Interest Rates Another great group - interest rates - considered “boring”, by many commodity futures traders - but they’re not! They have great long-term trends - with the best contracts being the T Bond and T Notes. Stock Indices The S & P is the one, most commodity & futures traders look at - but there are plenty of others. Good markets to trade include the DAX, NASDAQ and Dow Jones. Energies Energies are the biggest physical commodity group in the world - in terms of volume. The energies group exhibits good, long-term trends all the time. All traders should start with Crude Oil, but for traders who really want to taste some action, check out Natural Gas – when trends come here, they’re huge! A word of caution on this market - it’s only for futures commodity traders with deep pockets - and strong nerves. Adding Diversity The above commodity futures are all suitable for trading as individual groups - however with the contracts listed below, we’d only trade as part of a diversified portfolio - due to lower liquidity, and limit moves. Metals The main focus for speculators is on, Copper, Gold and Silver - however the White Metals of Platinum, and Palladium, have produced some of the best trends of recent years. These rare metals are precious metals - but double up as industrial metals as well. Although trading volumes are thin, volatility and limit moves are frequent - for traders with deep pockets, these metals offer outstanding long-term trends. Grains and Meats Grains and Meats were big contracts for speculators in years gone by - but they have lost some of their shine. Speculators now trade more financials - however, Pork Bellies, Live Hogs, Feeder Cattle, and Live Cattle, still offer commodity futures traders great trends. The grains are similar and the Soybean complex - Wheat, and Corn, are the markets to look at. Food and Fibre The markets to look at are Orange Juice, Coffee, Cocoa and Cotton. Cotton is probably the best market for long-term trend followers - but this is very much a personal choice. Successfully Blending a Portfolio Today, many traders simply focus on the financials (and currencies are the best group to trade) - however as you can see from the above, that commodity futures traders, have plenty of contracts from which to choose. With the global economy expanding fast, there’s one contract that looks a great long-term buy - the contract to buy, and hold, for huge gains. It’s the CRB index - which is a basket of commodities - and it looks set to soar – because, commodities go up, based upon the huge demand from countries, such as India and China - check it out!
Other Currency Trading Articles
Investment Books Review #1: Market Wizards – Essential Reading for All Traders Market Wizards by Jack D. Schwager is essential reading for any trader, as it gets inside the minds of some of the world’s all time best traders – and they’ve collectively made billions.Whilst these traders are all different in character, and the trading methods they deploy, they all share the common traits that you must have to make big ...Program Trading Wizened Wall Streeters say that you’ll have more investing success if you remove emotion from your buy and sell decisions. Perhaps the most emotionless approach is program trading.This is a generic term used to describe trading in stocks, options and futures based on price relationships and not on the underlying fundamental strength or we ...Swing Trading with Stochastics – The Essential Momentum Indicator Markets don’t trend all the time - there are periods where they tend to be in channels, and consolidating. These are the markets where swing trading can work well.This article is an introduction to swing trading, and highlights the best timing indicator - to time you swing trades for big profits.What is Swing Trading?Swing t ...Forex Brokers Forex brokers are the go-to guys when it comes to buying or selling large sums of foreign currencies. In this fast growing world of globalized economies, the movement and ownership of priced and primary world currencies, such as the U.S. dollar, the English pound, the Japanese yen, and the euro often spell the success of these international vent ...Your Mother Could Make Money In Forex Trading The question would be not whether she could but rather would she enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for educated traders with the correct education, tools, and trading strategy to make a handsome incom ...The Benefits of Trading The Forex Market Historically, the FX market was available most to major banks, multinational corporations and other participants who traded in large transaction sizes and volumes. Small-scale traders including individuals like you and I, had little access to this market for such a long time. Now with the advent of the Internet and technology, FX trading is beco ...Forex Broker Commissions Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.Many may wonder how brokers work without commissions. T ...Forex Trading - A Brief Introduction Forex trading refers to the buying and selling of the currencies of different nations, i.e., one currency is bought and another sold at the same time. A Forex deal involves profit when you sell a currency at a price higher than what it cost you to buy. Foreign Exchange market is the largest liquid financial market in the world in terms of the tu ...Forex Day Trading Online: Top 7 Mistakes Beginners Make Learning to master Forex day trading online for someone who has no background in the financial markets can be intimidating. Generally, much patience and time are needed.However, by looking at the most common mistakes we can at least shorten the learning curve and get past the first few hurdles as quickly and painlessly as possible. The fi ...E Gold Investments: Investing Smartly With E-Currency Exchange When you make an investment in E gold is a all about a profitable system that allows you to capitalize from the money that is moved through online transactions everyday. The process that is going on when you are trading e-Gold (or e-currencies) is providing the support for online cash. But let me back up the cassette. What am I trying to say by ...Commodity Futures Trading Unlike cash contracts, which require the payment of cash against the physical delivery of goods immediately or after a specified period, a futures contract is a special type of agreement made strictly under the rules of a commodity exchange, which may or may not call for the actual delivery of goods and payment of price in cash on a future date. ...Day Trading For the Beginner - The Three Most Commonly Asked Questions It seems every day some new and up coming superstar day trader (ok wannabe superstar day trader) asks me the same questions. It always strikes me as funny that everybody always seems to have the same questions when to me the answers just seem so obvious.I will admit I’ve been trading for a while now and I’ve seen and read all the doom ...A New Trader's Journey to Success Stage One: The Clueless TraderThis is the first stage when you enter trading. You may have picked up a book on technical analysis somewhere, heard of a day trader making millions, or got lucky in an earlier stock investment. After all, how hard can it be? The money sounds appealing and the freedom to be independent sounds ...Mechanical or Discretionary Trading - Which is Best? Discretionary TradingPure discretionary trading will rely solely on the traders judgement. For example a discretionary trader may spot a particular pattern developing on a chart and decide to enter a trade on that basis. It would be impossible to systemise their trading because it relies on subjective judgements and 'gut' feel. ...Forex Training: Deadly Forex Mistakes That Assure Failure Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and we don't want that to happen, do we? This Forex training guide will help you track the most costly mistakes Forex traders do.First of all, make sure you don't have a trading system. Having a ...Stock Trading Secrets? How often have you come across an advertisement or e-mail proclaiming to "teach" you the stock trading secrets that Wall Street Insiders don't want you to know? Usually included in the descriptions of these trading products are claims such as "Make 10K monthly in minutes per day", or "Learn the secrets of Professional Stock Brokers", etc. etc. S ...Make Money Fast – Simple Trading Tips To Build Real Wealth If you are trading and want to make money fast then the simple tips below will help you build real wealth.They will increase your profit potential and can be used by any trader novice or pro to enhance their trading. In no particular order of importance - here are your tips to make money fast1. Accept ResponsibilityYou and y ...Arbitrage Trading or E-currency E-currency? If you are reading this you most be wondering what way is better to make money E-currency Exchange or Arbitrage Trading?Lets first look at how both systems work, and if these systems will still be around in 5 years or so.Arbitrage Trading Is and unknown way to make money on the Internet. Very few people know little or no inf ...Day Trading Basics Day trading refers to trading stocks online or on Wall Street for a living and on a daily basis. Why would someone want to trade stocks for a living? What are some of the day trading basics?There are a lot of benefits to day trading. If you are an online day trader you can actually do it from your home, in your pajamas, if you want. P ...Crude Oil & Unleaded Gas – As Predicted Big Gains & More To Come! These markets have exploded to the upside today as we thought ( see previous articles) and traders who took the stochastic crossover have fantastic gains on the day.Can this market continue its upward momentum? Let’s look at the trade in more detail.Low risk and high reward tradeThis market was trading near support, so it wa ...Trading with Support and Resistance Support and resistance has long been a staple in trading indicators. Support and resistance is a simple concept that has its roots in the supply and demand theory. When looking at a chart you see price action that appears to be random but, by adding support and resistance theory to the equation you will see that the price movements are not alway ...Discover The Hidden Online Trading Costs That No One Tells You About One of the most commonly asked questions that I receive is this, How much do I need to actually start my online trading business and make a full-time income from it?This is a good question, but there are more costs to starting trading than simply setting your online trading float. (By an online trading float, I mean the amount of capital ...Comparing Futures and FOREX Trading How did the whole futures market begin? It all started with agricultural produce in the last century. Farmers began to contract with buyers to sell their produce at a future date and there was a kind of stabilization of demand and supply through the year. This is why it was called 'futures'. Today, however, the term encompasses a lot more than t ...Developing the "Holy Grail" Trading System Before I get myself into trouble, let me point out that there is no "Holy Grail" trading system in the world - not yet anyway. If there is, please let me know. I don't mind paying a thousand bucks for it. However, a trading system close to the "Holy Grail" is indeed possible and I'll show you how to develop it.But before we come to that, ...Trading Forex Online - What's It All About? Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. This is what makes Forex trading such an exciting ride.Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted.When a trader locks in a rate and executes a transaction, that ...Day Trading Tips Worth Reading Are you tired of the same old day trading tips? Like, “cut your losses and let your profits run.” “Never let a gain turn into a loss.”, or the most repeated tip, “Buy low, sell high.”So how about something new? Let me give you some specific day trading tips that will turn your trading around.A good defense beats a ...Cash For Structured Settlements The structured settlement system began in the early 1970’s in Canada, and it spread to United States and Australia within a few years. A compensation agreement between a plaintiff and insurance company (defendant) for long term and tax-free payments at a time of personal injuries or damages is called a structured settlement. The insurance compan ...Swing Trading Strategy Swing trading is a popular method of capitalizing on the short-term price variations of the stock market. It has earned a reputation of being a powerful method of maximizing profits at lower risks. The best swing trading strategy involves choosing the right stock and the right market. Swing traders usually choose the stocks that fluctuate at ext ...FX Trading Platforms Traders in FX trading can be grouped into one of four basic types- bankers, brokers, customers and central banks. Bankers, banks and other financial institutions do the lion’s share of trading. They make profits buying and selling currency to each other. Approximately two-thirds of all Forex transactions involve banks dealing directly with each ...The Tale of Technical Analysis in Forex Trading Technical analysis may be used as either an alternative to or as a supplement for fundamental analysis. Technical analysis looks at the past performance and history of an investment. It relies on data showing this history and current trends and patterns to make predictions of future market activity. It ignores the intrinsic value of the investme ...
|
