Tags |
|
|
Links |
|
|
Member You - My Experiences Trading Cotton and Lumber Commodity Futures Contracts and Options
If you are not building an opt-in list on your website you are losing money - period. Having a list is the most important aspect of website marketing as it gets your prospect into your marketing funnel…and that ultimately means a higher bottom line. But how do you improve your opt-in rate with clients…1. Sell the benefits not the features.Your prospect is giving you permission to send them information to their email account and they want to know WIIFM or “What is in it for me?”. You need to carefully structure your opt-in box so that it is easily identified and filled out.List the benefits of the information that they will
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."
Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pic
When you get your first job, thinking about different careers is probably the last thing on your mind and fifty years ago, most people entering the workforce would expect to remain with the same employer until the end of their working life. However, the situation has changed radically in recent years and so we all need to know how to manage career transitions if we are to get the best out of our careers. Your ability to deal with change will be partly determined by how well you plan in advance. Of course, your interests and priorities will change at different stages of your life, which can make forward planning a little complicated. It is impo
COTTON futures and options trade on the NYBOT. (The New York Board of Trade) Cotton has low to medium volume and liquidity; just enough to get by. An account margin of $1300 controls 50,000 pounds of cotton, worth about $30,000. One full point of price movement equates to $500.
Day trading cotton futures can be difficult. At times, the short-term charts can make little sense. Cotton futures fills (order execution price) often have significant slippage while the option fills are slow coming back from the floor. Market orders will get you filled immediately but you may not be happy with the results. Obviously, the main problem with short-term trading cotton is liquidity.
Liquidity is not really a problem with long-term cotton position trades lasting weeks in duration. Low liquidity will make little difference in your overall results because of infrequent entries and exits. Effectively using limit orders in cotton will solve the slippage problem, but makes entry and exits more challenging.
Normal moves of five to ten cents are common in cotton. ($2500-$5000) Over the last few decades, the cotton market has cycled within a large price range. The extreme lows are 28 cents to highs of $1.17 a pound. The goal of many long term traders is to catch big moves like this.
Weather is always a consideration when trading cotton. Droughts, floods, disease and insect infestation (boll weevils, etc) can propel prices. There's times when cotton trades counter to the other grains. (wheat, soybeans, corn, etc) What may be good growing conditions for cotton may be adverse to the other grains and visa versa.
LUMBER
LUMBER Futures and options are traded on the (CME) Chicago Mercantile Exchange. An account margin of $1700 controls 110,000 board feet of lumber worth about $27,000. One full point in lumber equates to $110.
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurrence. The liquidity in lumber futures is a problem but tolerable. Market orders are sometimes necessary, but there is a big chance of slippage.
Lumber options are illiquid. They are hard to buy and sell. A series of limit moves in your direction will help you liquidate with a nice execution price and profit. Effectively using limit orders in lumber will solve the slippage problem, but makes entry and exits more challenging
Lumber prices can trend well since supply and demand are based on various long-term trends. These include U.S. housing demand and the supply trade agreements with Canada.
Short term trading is possible if you are nimble. Look for a five-dollar swings as an objective. ($550) If you get a limit move in your direction, you may want to get out of your futures contract. Reversals are common after big moves. However, if the move is supported by long term bottoms and major time cycles, you may want to hold on for what could be a big ride.
STRATEGY
Here's how I look for opportunities in the cotton and lumber markets: First I generate a TimeLine forecast that shows a strong move up or down in cotton or lumber. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."
Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pick
If you want to be successful with your financial investing, it is important to know your history. Studying the stories of past investors can teach you important financial principles. Principles do not change. A principle is a basic truth, law or perception and knowing and understanding the principles of financial investing can save you a lot of stress and help you protect your investments.If you invest your money, odds are good that you know who Steve Forbes is and you also know that he has been publishing a successful financial magazine appropriately titles Forbes. Richard Phalon has been a contributing editor to Forbes since 1980.
Normal moves of five to ten cents are common in cotton. ($2500-$5000) Over the last few decades, the cotton market has cycled within a large price range. The extreme lows are 28 cents to highs of $1.17 a pound. The goal of many long term traders is to catch big moves like this.
Weather is always a consideration when trading cotton. Droughts, floods, disease and insect infestation (boll weevils, etc) can propel prices. There's times when cotton trades counter to the other grains. (wheat, soybeans, corn, etc) What may be good growing conditions for cotton may be adverse to the other grains and visa versa.
LUMBER
LUMBER Futures and options are traded on the (CME) Chicago Mercantile Exchange. An account margin of $1700 controls 110,000 board feet of lumber worth about $27,000. One full point in lumber equates to $110.
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurrence. The liquidity in lumber futures is a problem but tolerable. Market orders are sometimes necessary, but there is a big chance of slippage.
Lumber options are illiquid. They are hard to buy and sell. A series of limit moves in your direction will help you liquidate with a nice execution price and profit. Effectively using limit orders in lumber will solve the slippage problem, but makes entry and exits more challenging
Lumber prices can trend well since supply and demand are based on various long-term trends. These include U.S. housing demand and the supply trade agreements with Canada.
Short term trading is possible if you are nimble. Look for a five-dollar swings as an objective. ($550) If you get a limit move in your direction, you may want to get out of your futures contract. Reversals are common after big moves. However, if the move is supported by long term bottoms and major time cycles, you may want to hold on for what could be a big ride.
STRATEGY
Here's how I look for opportunities in the cotton and lumber markets: First I generate a TimeLine forecast that shows a strong move up or down in cotton or lumber. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."
Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pic
You know the first time your spouse comes home and says we have a great opportunity or how do you feel about New Jersey, or what do think about Phoenix? Something is in the air but you‘re not quite sure what it is. The next time you hear it you know the drill, get ready for the madness. Here are some hints for the first timers.•The corporate world puts on the concerned face for the family but the deal really is to get your husband or your wife to a location that benefits the company first. Everyone else is the baggage they try to be pleasant about. Your job is to make it work for everyone else yourself the kids the dog or cat and
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurrence. The liquidity in lumber futures is a problem but tolerable. Market orders are sometimes necessary, but there is a big chance of slippage.
Lumber options are illiquid. They are hard to buy and sell. A series of limit moves in your direction will help you liquidate with a nice execution price and profit. Effectively using limit orders in lumber will solve the slippage problem, but makes entry and exits more challenging
Lumber prices can trend well since supply and demand are based on various long-term trends. These include U.S. housing demand and the supply trade agreements with Canada.
Short term trading is possible if you are nimble. Look for a five-dollar swings as an objective. ($550) If you get a limit move in your direction, you may want to get out of your futures contract. Reversals are common after big moves. However, if the move is supported by long term bottoms and major time cycles, you may want to hold on for what could be a big ride.
STRATEGY
Here's how I look for opportunities in the cotton and lumber markets: First I generate a TimeLine forecast that shows a strong move up or down in cotton or lumber. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."
Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pic
Many small business owners make the mistake of thinking that putting up a web site is advertising. They think it's like putting an ad in the paper that will bring in business. However, they usually end up frustrated when no business comes in. Learn how to avoid this mistake and save your web site from being lost in cyberspace.Why is my web site not advertising? So why is putting up a web site not advertising? Well, let's begin by looking at what advertising really is. Advertising means attracting public attention to a product or service usually by paying for it. Getting public attention is done by broadcasting th
Short term trading is possible if you are nimble. Look for a five-dollar swings as an objective. ($550) If you get a limit move in your direction, you may want to get out of your futures contract. Reversals are common after big moves. However, if the move is supported by long term bottoms and major time cycles, you may want to hold on for what could be a big ride.
STRATEGY
Here's how I look for opportunities in the cotton and lumber markets: First I generate a TimeLine forecast that shows a strong move up or down in cotton or lumber. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."
Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pic
It is tougher to borrow a loan for the people who have nothing to offer as collateral when availing loans. On the other hand, people having collateral can get loan easily, as they have their property to offer as collateral. But, unsecured loans enable those borrowers to avail loans who have no property to offer as collateral.As the term unsecured implies, unsecured loans can be borrowed without offering the lender any collateral against the loan amount. Absence of requirement of any collateral makes this loan a favourable option for tenants. But, homeowners also opt to borrow this loan, simply because it puts them out of any risk of the
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strategies. In hindsight there's always a best strategy we could have used. Keep this is mind when narrowing down the choices. When finished, we want to have one or two potential trades to work with. We call the selected few, "high probability, low risk trades."
Remember there is more to planning a trade than just coming up with a forecast. The market may move as predicted but we can still lose by choosing the wrong trading vehicles. Pick the right vehicles and strategies that will allow us to stay in the market without excessive fear, but still carrying calculated risk.
We NEED to take on calculated risk or the market will not pay us for our services. In addition, the vehicle has to move far enough to make a profit without letting the expense of protection eat us up. Excessive protection (risk avoidance) can come in the form of option premiums, too close-in stop loss orders - and overdone, complex spread strategies. Matching a forecast to a strategy is an important skill to succeed in commodity trading.
Good Trading!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.memberyou.net/article/116658/memberyou-My-Experiences-Trading-Cotton-and-Lumber-Commodity-Futures-Contracts-and-Options.html">My Experiences Trading Cotton and Lumber Commodity Futures Contracts and Options</a>
BB link (for phorums):
[url=http://www.memberyou.net/article/116658/memberyou-My-Experiences-Trading-Cotton-and-Lumber-Commodity-Futures-Contracts-and-Options.html]My Experiences Trading Cotton and Lumber Commodity Futures Contracts and Options[/url]
Related Articles:
Accepting Credit Cards on your Website
Debt Management - What Are My Options?
Bookmark it:
|