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Learn How to invest profitably in
the World’s Best Market!!!
How would you like to earn a second income by investing
in the futures market?
A new bull market is already under way, and it is in commodities.
If you look around your homes or enter a supermarket,
you are surrounded by commodities that are traded around
the world. When you get into your car, you are surrounded
by other widely traded commodities. Without the futures
markets setting and regulating prices, the basics items
we all need in life would be scarce and often expensive.
These essentials include crude oil, natural gas, corn,
wheat, soybeans, copper, silver, gold, platinum, palladium,
sugar, coffee, rice, lumber etc.
As economies in Asia continue to grow, there will be a
strong worldwide demand for all commodities. China, in
particular, has moved quickly from a major exporter to
an importer of commodities, consuming copper, oil, soybeans
and other raw materials voraciously. With more than 1.3
billion people, China faces a considerable demand
for commodities.
The biggest fear that someone faces is losing their jobs
and thus not being able to support their family or paying
the monthly mortgage payments. As one grows older, this
fear becomes more prevalent. We are already facing a massive
pension’s crisis with the government expecting us
to work until we are older, our council tax increases
each year, owning a property is very costly, students
are leaving universities with large debts, the average
consumer is finding it extremely hard to make ends meet
and is resorting to borrowing on their credit cards to
supplement their incomes. How many of us dream of having
a second income and possibly one day being debt free?
Many of us are familiar with buying shares in a company.
The whole idea is that we buy shares in a company when
its share price appears attractive and hope to make a
profit in the long term. There is no guarantee, very often
when we expect a company’s share price to increase
the opposite happens. Furthermore, ask the investors of
Enron, MCI World Com, Tyco and most recently Livedoor
to name a few. The Sarbanes Oxley Act of 2002 was introduced
to prevent these scandals but as always in life there
is no guarantee. Did you know that when trading futures
you can also make profits when prices fall (assuming you
are short on a contract)? I personally love trading futures
because profits as well as losses can be generated in
a shorter time frame particularly with the currency markets.
Losses are a fact of life in any businesses. The beauty
with futures trading is that you can dictate from the
moment you enter a trade how much you are willing to lose
before closing the trade.
In order to achieve success in trading commodities (futures)
one must abide by a trading plan. The veteran traders
would always cite money management techniques and the
fact that one should never risk more than 3% to 5% of
their trading capital. There are numerous textbooks and
articles that would emphasize that in order to survive
in this industry one should let one’s profits run
and cut one’s losses short. One should avoid the
element of fear and greed and thus the psychology of trading
becomes essential.
The Futures Industry Association (FIA) has reported
that in the first nine months of 2005, a grand total of
7.28 billion futures and options contracts were traded
on derivatives exchanges around the world. Remarkably,
some of the fastest growing exchanges in the world were
in the US, arguably the most mature market for futures
and options. Looking again at that same nine-month period,
January to September 2005, the FIA calculates that 2.57
billion contracts were traded on the US futures and options
exchanges, up about 25% from the same period in 2004.
Looking just at the month of September 2005, the year-over-year
growth rate at the US exchanges was nearly 40%.
What these numbers tell us is that more and more investors
and traders are becoming interested in trading commodity
and financial futures. Even the New York Stock Exchange
has expressed a serious interest in the derivatives business,
because it knows that futures’ trading is growing
much faster than cash equities trading. Futures trading
volume has been growing at 15% a year over the last 20
years, and the rate of growth has been accelerating since
2000. Wall Street used to think of the futures industry
as a bunch of guys trading pork bellies and soybeans.
But now there is an increasingly widespread recognition
that in a modern economy, with a modern financial system,
futures and options have a central role as instruments
for price discovery, risk management, and of course speculation
in pursuit of profits.
Trading futures can be very risky as well as very rewarding. Most brokers would ask an initial deposit of $5,000 to
open an account. This is in effect your trading capital.
If for instance, you bought 1 contract of June Crude
Oil and within 24 hours the price rose and
you decided to close the trade with a profit of $700,
your trading capital would now become $5,700 before commissions
and fees which is generally about $30 round turn depending
on your broker. This cost is probably lower if you decide
to trade futures online.
It is important to have a trading plan, trading software
and most importantly effective money management techniques
in order to increase your probability of success. If you
would like to supplement your income and pay your debts
or perhaps retire early then explore this website. If
you believe that futures’ trading is too risky for
you, then why not paper trade (not risking any money)
for a while and see the potential of the wonderful world
of commodities trading!
I can show you how using the Track n Trade software
and by spending a few minutes a day one can identify potential
trade setups. Lan Turner of Gecko Software is responsible
for the development of this excellent software. I have
tried many trading software and I certainly recommend
this highly. It is easy to use, reliable and most importantly
affordable.
Trading futures or any markets you decide, is the
absolute perfect business. However, you must learn to
trade correctly and control your fear and greed whilst
preserving your capital. I have listed below some of the
advantages and disadvantages of futures trading:
Advantages
- Low start up costs - only your
computer
- Low overheads - work from home
- No set hours - trade when you
want
- No worries about market direction
- profit from short or long positions
- Leverage. A small deposit (margin)
allows you to control the full contract value. For example,
a deposit of $2,700 (depends on your broker) allows
you to buy or sell one Platinum contract consisting of 50 troy ounces of Platinum.
- Inflation and recession proof
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