Start with the Basics of Futures Trading
Start with Fundamental Analysis of the Commodity Markets. Learn Economics 101 - Supply and Demand. That
is the underlying formula to all Commodity prices. Some excellent sources to learn about commodities are
FuturesBuzz.com,
CBOT,
CME and
NYBOT.
Next, learn about the Commodity you plan on trading. Find
out how soybeans are grown, when they are planted, when they are harvested, how rain and heat affect the crops.
This will help greatly in Futures Trading as your intimidation level may receed through understanding and
it may prevent you from getting suckered into trades by panic mentality.
Technical Analysis in Futures Trading
Technical Analysis is becomming more and more important in Futures Trading. Virtually anyone can have
"up to the tick" Charts and Technical Indicators. Short-Term Futures Traders rely heavily on Technical Analysis - especially DyaTraders.
Learn the basics of Technical Analysis as that may be all you really need to know to be successful. The key
is to implement properly what you have learned. It may seem simple reading charts sitting at your desk in the evening
drinking a beer, but in the heat of the action will you interpret them differently or panic? Many a Futures Trader
has "choked" and panicked and made horribly decision when their money and ego are on the line. Therefore, it is imperative
to implement proven techniques in a calm and controlled manner.
Additional Thoughts on Futures Trading
Some of the best Futures Traders in the world will tell you it is the most boring job they ever had in their life. They just wait, sometimes for days, for their Buy
and Sell indicators to be triggered. Do you have the patience to monitor quotes and charts for days and not take a trade?
Welcome to the world of Futures Trading! Do what it takes to make money, not what it takes to be able to tell
cool stories of a trade or stroke your ego. And don't try to get rich overnight with Futures Trading. If you can
consistently make a 50 - 100% return annually, you should have more than enough retirement money.
More in-depth articles to follow. Check back regularly.
Disclaimer: TRADING IN COMMODITY FUTURES OR OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.