Futures trading adds a dimension to investing that you don’t get with stocks. With stocks, you buy at the current price with expectations that they will go up. With futures trading, you speculate about what an asset will be worth at a specific time in the future; up or down. Knowing how to place futures trades enhances the scenarios whereby an experienced futures trader can generate significant profits.
How to Place Futures Trades
Do you remember when gold was trading at $260.00 an ounce, silver was at $4.00 an ounce, and oil was at $20.00 per barrel? Conversely, how about when gold was trading at around $1900 per ounce, silver was at $50.00 an ounce, and oil was at $140.00 per barrel?
The sharp price fluctuations in commodities over the last number of years have attracted the attention of more and more retail investors. That’s because trading commodities like silver, gold, oil, and coffee can be very lucrative.
However, it’s important to remember that futures trading can be risky and is not for inexperienced investors. For every dollar you make, someone else loses a dollar. On top of that, prices can be extremely volatile.
As a result, investors interested in futures trading need to understand the costs and risks involved before plunking any money down on the price direction of frozen concentrated orange juice.
To become a successful commodities trader you need to really understand the commodities market. This means learning about each individual commodity, its main uses, the major producing countries and stability of their governments, and historical supply and demand data.
You also need to take into consideration what affects the demand of each commodity, including weather, disasters, economic news, and geopolitical tension. If you’re an astute trader, you understand that learning about futures never ends.
To master the ins and outs of futures trading, it’s imperative that you take a futures trading course. What should you look for in a futures trading course? Professional educators, excellent customer support, and simulated trading accounts for testing different trading strategies.
After all, the more you understand about commodities and learn how to manage risk, the greater your chances are of making consistent profits and avoiding expensive errors.
Retail investors who are interested in trading commodities need to match their skills with professional traders. To succeed, you need to conduct thorough research, track market trends and news, and follow a disciplined trading approach.
As the leading and oldest provider of stock market training courses in Canada, Learn-To-Trade.com is led by licensed, industry professionals. It’s extensive stock market and futures trading courses provide members with the knowledge required to create a disciplinary approach to the financial markets.
For more information on Learn-To-Trade.com, our stock market trading course and Lifetime Membership, visit the company’s website at www.Learn-To-Trade.com. Or, you can contact us by phone at 416-510-5560, or by e-mail at info@learn-to-trade.com.
Futures trading adds a dimension to investing that you don’t get with stocks. With stocks, you buy at the current price with expectations that they will go up. With futures trading, you speculate about what an asset will be worth at a specific time in the future; up or down. Knowing how to place futures trades enhances the scenarios whereby an experienced futures trader can generate significant profits.
