Commodity Trading – Part 2: Modern Exchanges
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The second in a multi-part series on commodity trading. Modern commodity exchanges and futures are detailed.
For more information, be sure to check out http://www.econoutlook.net
Duration : 0:6:34
Commodity Trading & Trend Following
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My Investors Place
www.myinvestorsplace.com
Learn what it really takes to be a long term winner in the commodities markets via trend following by a commodity trading advisor.
Duration : 0:3:17
Commodities Trading and Futures Speculation (Series): Contracts Specifications – Expirations
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The Blog Entry that Accompanies this Video is at: http://investorandtrader.blogspot.com/2010/03/commodities-trading-and-futures.html
My Daily Blog is at: http://investorandtrader.blogspot.com
Free Issue of Airelons Market Tactics: http://davianletter.com/articles/2009/12/13/airelons-market-tactics-4
Airelon’s Market Tactics Newsletter: http://davianletter.com/amt
This vlog entry is a continuation in a series of videos, the “Commodities Trading and Futures Speculation”, and is continued from the previous entries.
Introduction: I discussed some of the myths regarding commodities speculation, and introduce the entire series.
The Reason for the Markets Existence: We discussed that the commodity futures markets exist, to allow companies, farmers, and others involved in production within the economy to hedge themselves against catastrophic losses. This in turn, keeps unemployment lower, and reduces volatility in the economy.
Why Traders Trade Commodities: Ok, if the commercial interests use the commodity markets to protect their business profits, then why are traders in those future markets? We discussed liquidity, and that the commercial interests need that trader liquidity, in order to hedge more efficiently. Without traders, the commercial interests have a very difficult time operating in the markets.
Collective Crowd Wisdom: We next discussed the free market benefits that traders bring to table while they are trading future delivery contracts.
Contacts and More Contracts: Is there some vast conspiracy, in that all commodity futures have more contracts trading in active months than there is the amount of that particular commodity in the world? Is the “Comex going to default”? No. It has to do with liquidity needs, and we discuss this.
In the next few videos, I want to discuss contract specifications in greater detail. In the following vlog entry, I discuss my thoughts regarding the expiring nature of any given commodity …
* * *
Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.
Duration : 0:9:5
Commodities Trading and Futures Speculation (Series): Contracts and More Contracts !
Posted by admin
The Blog Entry that Accompanies this Video is at: http://investorandtrader.blogspot.com/2010/02/commodities-trading-and-futures_18.html
My Daily Blog is at: http://investorandtrader.blogspot.com
Free Issue of Airelons Market Tactics: http://davianletter.com/articles/2009/12/13/airelons-market-tactics-4
Airelon’s Market Tactics Newsletter: http://davianletter.com/amt
This vlog entry is a continuation in a series of videos, the “Commodities Trading and Futures Speculation”, and is continued from the previous entries.
Introduction: I discussed some of the myths regarding commodities speculation, and introduce the entire series.
The Reason for the Markets Existence: We discussed that the commodity futures markets exist, to allow companies, farmers, and others involved in production within the economy to hedge themselves against catastrophic losses. This in turn, keeps unemployment lower, and reduces volatility in the economy.
Why Traders Trade Commodities: Ok, if the commercial interests use the commodity markets to protect their business profits, then why are traders in those future markets? We discussed liquidity, and that the commercial interests need that trader liquidity, in order to hedge more efficiently. Without traders, the commercial interests have a very difficult time operating in the markets.
Collective Crowd Wisdom: We next discussed the free market benefits that traders bring to table while they are trading future delivery contracts.
So let’s begin to get into some of the ‘nuts and bolts’ of the commodities, and at the same time, dispel a few myths and rumors that have persisted as of late. We’ll begin by discussing Commodity Contracts …
* * *
Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.
Duration : 0:9:17
Commodity Trading Signals Alerts for May 27th 2010
Posted by admin
Keep an eye on these contracts for possible new trades.
July Crude Oil
Changed to bullish on May 27.
June Canadian Dollar (P)
Changed to bullish on May 27.
July Soybean Meal (P)
Changed to bullish on May 27.
July Cotton #2
Changed to bearish on May 27.
Good Trading!
Guy Edrington
Commodities Trading and Futures Trading (Series): Collective Crowd Wisdom
Posted by admin
The Blog Entry that Accompanies this Video is at: http://investorandtrader.blogspot.com/2010/02/commodities-trading-and-futures_04.html
My Daily Blog is at: http://investorandtrader.blogspot.com
Free Issue of Airelons Market Tactics: http://davianletter.com/articles/2009/12/13/airelons-market-tactics-4
Airelon’s Market Tactics Newsletter: http://davianletter.com/amt
This vlog entry is a continuation in a series of videos, the “Commodities Trading and Futures Speculation”, and is continued from the previous entries.
Introduction: I discussed some of the myths regarding commodities speculation, and introduce the entire series.
The Reason for the Markets Existence: We discussed that the commodity futures markets exist, to allow companies, farmers, and others involved in production within the economy to hedge themselves against catastrophic losses. This in turn, keeps unemployment lower, and reduces volatility in the economy.
Why Traders Trade Commodities: Ok, if the commercial interests use the commodity markets to protect their business profits, then why are traders in those future markets? We discussed liquidity, and that the commercial interests need that trader liquidity, in order to hedge more efficiently. Without traders, the commercial interests have a very difficult time operating in the markets.
So what is the other benefits exist, other than that of traders providing liquidity? We discuss that in the following vlog entry …
* * *
Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.
Duration : 0:9:28
Investment Advice : Commodity Trading for Beginners
Posted by admin
commodity trading typically works in the form of futures, with investors agreeing to purchase a specified amount of a commodity at a specific price. Discover how risky commodities trading can be, and how outside factors make a huge impact, with information from a financial consultant in this free video on investments.
Expert: John Pinelli
Bio: John Pinelli is a financial service broker for Northwestern Mutual Insurance.
Filmmaker: Bing Hu
Duration : 0:2:37
Can somebody please help me choose a topic in the commodity trading sector for a research report?
Posted by admin
It needs to be 2500 words so there should be a reasonable amount of information available. I initially thought of a question of ‘Is there more regulation required in the commodity trading sector’?. However this is not a very interesting sub heading for me to research. Any suggestions?
Sound a fine heading in current environment.
Will electronic trading replace Open outcry?
Are Commodity prices manipulated by Traders or Governments? Silvers long thought to have been.
Commodity prices and why history repeats itself.
Commodity Bubbles. Is Gold the new Oil bubble?
or Billionaires from Commodity trading, there’s a few.
Could think of loads more but .. the above might not fit.
Candlestick Charting
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Japanese candlestick charting is used commonrly in trading in stock markets, forex markets and commodity markets.
By analysis of candlestick charts it is often to predict points where new price trends are about to start. Trending prices are what you need to earn profits, provided you are able to predict the start and end of the trend with reasonable certainty. Candlestick charts help the traders in identifying those turing points as they occur, before a new price trend starts.
This video and all future videos in this series are posted in this blog :
http://www.sanjay-j.com/SU
Please make it a point to visit this blog frequently for updates.
You can also subscribe RSS feed so that you will know when the blog is updated.
http://www.sanjay-j.com/SU/?feed=rss2
Your comments are always welcome.
Best wishes
Sanjay Johari
Duration : 0:5:3
In what way is commodity trading highly leveraged?
Posted by admin
Are there minimum lots they trade in, such as in currency? Is it possible to just buy one futures contract and only lose what you put in?
commodity trading is highly leveraged due to the use of margin. It’s the same word (margin) used in trading stocks, where the broker lends you money, but it is far different with futures. Futures margin is a deposit you make to guarantee performance on the futures contract, and there is no loan.
Say you want to trade 1 contract of Comex gold, which is for 100 ounces. With gold at 1161.90 and ounce, the contract has a value of $116,190. In order to trade this contract (long or short) you need to deposit initial margin of $6,748, which represents only 5.8% of the contract value. That is the leverage – you control a large dollar amount of the commodity with a much smaller deposit.
If gold moves $67 per ounce in your direction, then you double your money. If it moves $67 against you, then you lost your whole deposit. In fact, if it moves more than $17 against you, you’ll need to deposit more money to keep the position, otherwise you’ll get a margin call from the broker. Unmet margin calls will cause the broker to immediately close out your position.
You can also trade mini versions of some commodities. Check out www.cmegroup.com for contract specifications and margin requirement.
