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Archives for futures

Here you will find archived content about Futures found throughout the website.

Helpful Hints on Day Trading Gas-Related Stocks

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Don’t Ignore Fundamental Analysis

Day Trading Gas related stocks will be much more profitable when you pay attention to fundemental analysis. Fundamental analysis is often left out of day trading, but this not always a good thing. Fundamental analysis is helpful in industries that affected by macro-level events.

Gas stocks is the perfect example of this. Because gas prices are a commodity, they are easily affected by numerous factors. Current events in gas-extracting areas will affect gas stock. The demand of a commodity by such as gas will also determine the price and stock.

In 2017 the US produced 20% of the total worldwide. The US is pretty stable and doesn’t cause much volatility in the market. Other big names in gas production, such as Iran and Russia.

Iran, for example, is under restraints of the newly re-instated US government sanctions. This will make it tough for Iran to take full advantage of its ability to produce.

Keep Up With Current Events

The rapid rate of events surrounding gas allows day traders to jump in and make money from the consistent changes in gas-extracting countries.

On April 22, Natural Gas Futures increased from $2.490 to $2.526. It was around this time that reports of US sections on Iran began. As evidence became more solid that sanctions would indeed be placed, the price of Gas Futures continued to increase. This price increase is created due to the lack of supply expected from Iran and an overall high demand.

The price of gas affects a variety of industries and companies. Revenue declines when companies have pay higher prices. So, gas futures will fluctuate in price as well as the price of certain company stock.

Value the Big Picture

It is so important to be aware of what is happening when day trading gas related stock. You should study the history at large and pay close attention to current events. It will be vey helpful to study and be familiar with the regions that export/import the highest amounts of gas. If you understand the background, it will be so much easier to read the market and know what developments are important.

Understanding the big picture will allow you to see trends to help you day trade gas related stock. Look at developments in importing/exporting countries the same way you would look at stock indexes and ETFs. This will help you understand how to get the most success from Gas-related Stocks.


Day Trading: How to Know when to Buy or Sell

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How are you supposed to know when to buy or sell?

The overall goal of Day Trading is to exploit small movements in individual assets. The first big step towards this goal is knowing what to buy and when to buy it.

Looking at the liquidity, volatility and Trading Volume of an asset will help you asses if a trade is both profitable and right for you. Below you will see descriptions of what these things are, and learn how they can lead you to success. 

The first thing on the list to look at is the Liquidity of the asset.

Liquidity is what will allow you to enter and exit the trade at a favorable price.

Two things to note when assessing Liquidity are Spread. Liquidity is the difference between bid and ask. Slippage is the difference between the expected price of a trade and the actual price at which the trade is executed. You want to look for a tight spread and a low slippage.

Volatility is The next thing you will want to take into consideration when looking what to buy and sell.

The volatility will help you know when to buy.  It gives information on the expected price range. When Day Trading, a larger range in price will mean greater volatility.  This will result in either greater profit or greater loss.

Don’t forget to look at the Trading volume.

The trading volume is what tells us how many times a certain stock has been bought and sold. Volume is measured over a specific amount of time.  

If the trading volume is high this means a stock has a lot of interest. An increase in volume it is usually a sign of a price jump. After looking for this dumb you can better asses your trade. 

In Conclusion
These three things will help you a lot as you begin to decide when to buy and sell. Knowing how to observe the Liquidity, Volatility and Trading Volume  will be a great help to you as you get started in the world of Day Trading. 
 

Day Trading Futures: Pros and Cons

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The Pros

Day Trading is great because all trades are completed when the market closes for the day.

Futures usually open at a price that is very different from where they end. Volatility means you can fall asleep at night in a winning position, and wake up at a loss. Day Trading provides rest from this risk. Literal rest. A good nights sleep.

There is no overnight risk with Day Trading, which is one of it’s biggest Pros.

There is a lot to learn when entering the trading world.

Day Trading is like an accelerated learning course in trading. You’ll make more trades in a day than position traders. This will help you learn quickly what is necessary for success. You’ll

The Cons

It takes great discipline to day trade. It can be vey difficult to stay the course and not over reach. Many who try out day trading find themselves overreaching and over trading.

Commissions can also be an issue when Day Trading. It is very possible to break even, but have a big commission bill at the end of the year. To make money day trading you have to make many winning trades.

A Word On Volatility

Short term trading can outweigh long term investing in certain situations. Volatility of the market will determine which approach is most favorable.

In a highly volatile market, prices are moving up and down frantically. This is what you want to look for. The high volatility allows you to buy and sell for profit within a days time. A stagnant market is a no go for day traders.

Day Trading takes a lot of preparation, education and discipline. It can me really difficult to make money Day Trading. It is crucial that you treat it seriously and dedicate proper time.

However, if you do your research and map out a game plan, Day Trading can be a very rewarding.

10 Tips for Day Trading Success: Part 1

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10 Tips for Day Trading Success: Part 1

When Day trading, you are buying and selling stocks very quickly. Most stocks will be traded one or more times during a single day. Looking for small changes and taking advantage of these changes can be a very rewarding, but it must be done correctly. Stick with these 10 tips and you’ll be on your way to Day Trading success.

However while there is good opportunity to make money Day Trading, it can also be vey challenging and end in a loss for those who are un educated in the strategies involved. It takes a certain skill set that not everyone is cut out for.

Day Trading Tip #1 Know Your Stuff

As a day trader it is not enough to simply have a general knowledge of trading. To be successful day trading you need to be up to date on stock market news and current events that will cause changes in the stock market. It will be very valuable to you You will be ahead of the game if you are well informed about any changes or foreseen changes in the US economy as well as foreign economies.
Pay attention and spend some time with research if you want to be successful. A good strategy would be to make a list of stocks you may want to trade so that you might be able to pay close attention to changes in these market. Read or Listen to the news. Maybe consider joining twitter.

Day Trading Tip #2: Give Yourself a Cushion

Having a cushion of funds will let you fill confident as you make trades. Knowing what you are willing to risk will help you be more successful. A good range of risk for Day trading is around 1%. Lets use a .5% risk in an example:
Let’s say the trading account has $40,000. If we decide to risk .5% on an individual trade with a $40,000 account, then our maximum loss for this trade would be $200 (0.005 x $40,000).
When trading you have to set aside money and be aware it is a risk. You don’t have to be happy losing money on a trade, but must know it is a possibility. Having money set aside to trade will help you be comfortable and successful.

Day Trading Tip #3: Give it the Time it Deserves

Don’t move forward with Day Trading unless you are willing to devote some serious time. Most of your day will be involved with watching the markets and making trades. It is not something to do during your lunch breaks. To be successful you need to move quickly on trades is a major strategy. Also, as we discussed earlier, market research is so important and can be time consuming in its own right.

Day Trading Tip #4: Baby Steps

If you are just getting started with Day Trading, it is wise to not spread yourself too thin. Try focusing on one or two stock per session until you get the hang of it. This will allow you to really learn and analyze what is going on.

5. Less isn’t Always More

It’s not a bad idea to look for low stock prices and deals, but we don’t suggest using penny stocks. The low risk does not outlay the low chance of making large profits. Penny stocks are often times illiquid as well which is not ideal when day trading.

Stay tuned! 10 Day Trading Tips: Part 2 will out next week. contact us at daytradefeed.net with any questions on tips 1-5.

Huge Mistakes Made When Choosing a Day Trading System | Part Five

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Mistake: Make Money Day Trading (System Not Compatible)

Make money day trading. Don’t kill profitability with a lack of funds.

Two things that have nothing to do with a trading system itself can affect trading in a significant way:

  1. Liquidity

  2. Market Being Traded

Some systems claim to see the same results regardless of  liquidity or which market is being traded, but the only way for this to be true is for the trader to have a significant account funded from the beginning.

The truth is that profits are capped by these two principles in every market. On one hand, Forex market caps are traded in billions of dollars. In contrast, traders being capping out at around $5,000 in futures markets.

How to make money day trading, even with Forex caps.

Around $3 trillion is exchanged in Forex markets on a daily basis. Because of this, many traders will never have to worry about caps in terms of profitability. However, minimums balances do still exist, albeit usually at a relatively low rate.

Many brokers offer what is called a “micro account.” These allow traders to open a trading account for as little as five dollars. These offers usually charge more in spreads, but make trading available to just about anybody.

Typically, brokers prefer a normal account to start around $500. These accounts offer lower pip spreads, but keep in mind that profits are taken at the beginning by setting you however many pips behind your entry to pay the spread difference.

How to make money day trading, even with Futures caps.

The Futures market isn’t for everyone due to a required minimum standard balance set by the Commodity Futures Trading Commission (CFTC).

First, it’s important to remember that most brokers will not allow you to open an account with less than $5,000. In addition, contract margins can vary from $500 to $6,000 per contract traded. These parameters are set to prevent losses that traders aren’t able to cover.

The Futures market is also a little more unreliable in terms of liquidity. Take the S&P 500 vs. Silver Futures for example. The S&P involves many more traders, which means there is more opportunity in the market to make profits without “slippage.”

“Slippage” is defined as a change in price which occurs due to a lack of participant reaction instead of an abundance of it. When these markets slip and there isn’t enough traders participating, your trade must wait until the prices moves far enough to pull you out completely.

In turn, this can result in huge losses and/or little profit.

Conclusion: how to make money day trading.

In conclusion, while Futures markets remain a great place to trade, please make sure you have the correct knowledge and experience to correctly navigate the practice. A good place to start is to make sure you know about specific trade times and overnight margin requirements.

The best type of educator of trading system will already have direction on which market fits your individual financial situation and the leverage at which you should be trading.

How to make money day trading with DayTradeFEED.net!

This article is only part five in a series aimed at helping day traders understand what mistakes to avoid.

First Mistake: No Ongoing Support/Education

Second Mistake: No Specific Way To Replicate Results

Third Mistake: Repeating Key Entry and Exit Strategies

Fourth Mistake: Paying for Trading Seminars, Books & Videos

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    Man Mistakenly Makes $11.6 Million | DayTradeFEED.net

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    Man Thinks He’s Day Trading Futures Demo Account

    Makes $11.6 Million Real Profit

    Above all, the following story shows us how emotion can affect us when we’re day trading futures. Please take this with a grain of salt as not all results are created equal…

    Harouna Traore was learning everything about day trading futures. Part of his training included practice trading a demo account using real market data. He opened a $23,000 account with British brokerage firm Valbury Capital, and began “practicing.”

    Day Trading Futures Without Fear

    Later that night, Traore went home to continue learning about what it’s like to day trade futures on a demo account. Like many beginners do, he went on to push the limits of the trading software.

    After all was said and done, he had lost more than a million dollars.

    Reality Sets In

    After finding himself more than one million dollars in the hole, Traore realized he wasn’t using a day trading futures demo account. In contrast, his account was very real, and he was in a pickle.

    “I could only think of my family,” Traore said. “I was stressed.”

    But instead of alerting the authorities or the company he was trading with, Traore decided to continue trading to see what he could do.

    (Dis)Advantages of Day Trading Futures

    Traore began day trading futures, and eventually found himself building up a $5 billion position in U.S. stock futures. He went on to turn his loss into a profit of about $11.6 million.

    At this point, he called Valbury Capital, who immediately claimed breach of contract. His winnings were declared void immediately.

    Traore is currently suing Valbury Capital for the $11.6 million. The case is ongoing and may move to France in the coming months.

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    Day Trading Futures – Gold, Copper and Silver

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    Day Trading Futures | DayTradeFEED.net

    Update on Gold, Copper and Silver Trading

    Above all, what happened last week should be seen as an example of how trade disputes can affect day trading futures.

    The annual meeting between leaders of the Group of Seven industrialized nations began in Canada last week (G-7 summit). Prior to the meeting, President Donald Trump decided to call out trade agreements between France, Canada and the US. This led to serious tension at the summit. As a result, President Trump has decided to leave the gathering early.

    “The six countries of the G-7 without the United States are a bigger market taken together than the American market. There will be no world hegemony if we know how to organize ourselves. And we don’t want there to be one,” French President Emmanuel Macron said in Ottawa on Thursday with Canadian Prime Minister Justin Trudeau by his side.

    In addition, Trump is also currently feuding over trade with China and Mexico, the US’s neighboring country to the south. Due to this feuding, feelings around the Gold, Silver and Copper Futures markets wasn’t as chipper as many hoped.

    How Do Political Disputes Affect Day Trading Futures?

    These political disagreements can be a nightmare for day trading futures, especially with someone in charge who has a tendency to publicly attack other nations and their leadership so quickly. This can cause big swings in the market that can be hard to avoid and get out of when going against you.

    As a result of this volatility, the price of gold has actually increased, holding on to a .2% increase during the week. This is typical during political turmoil, as many rush to obtain assets such as precious metals as a way of avoiding any type of recession or decreased trading.

    “While risk aversion created from heightened trade concerns is positive for gold, expectations over higher U.S. interest rates are likely to threaten upside gains,” said Lukman Otunuga, research analyst at FXTM. “With the [Federal Reserve] expected to announce another interest rate increase next week, zero-yielding gold may face some headwinds down the road.”

    Above all, make sure you pay attention to a specific resistance level if you’re day trading futures. Chintan Karnani, chief market analyst at Insignia Consultants, believe that resistance level lies at $1,312.60. If the market breaks that level, look for it to continue trending upward.

    Day Trading Futures with DayTradeFEED.net

    Are you looking to retire but aren’t sure if you can afford it? Want to see the world, but can’t quit your day job? Do you have a child heading off to college soon and need to find a way to supplement your income in order to handle it?

    Day trading futures could be exactly what you’re looking for. The reality is that there’s not a lot of other options as ideal for you and/or your business.

    Traders can make money spending as little as one or two hours per day day trading futures. Fortunately, you can learn how to do the same!

    Get Started Day Trading Futures

    If you’re still reading this blog post, chances are you’re pretty interested in learning to day trade futures.

    Fortunately, there’s an easy way to get your questions answered and find all the information you need. Simply contact us, and we’ll have a vetted and accredited representative reach out.

    Day Trading Futures – Still Not Sure?

    Still not sure you’re interested in learning more about day trading futures? Check out our Should I Day Trade? page to see if you have what it takes to get in the game!

    Day trading comes with some unique and prevalent risks attached to it. At DayTradeFEED.net, we want to make sure you have all the resources you need to be successful and see profits.

    Please email us at info@DayTradeFEED.net with any questions or comments!

     

     

     

    Day Trading Futures | Market News Update

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    Futures Market Updates | DayTradeFEED.net

    Issues with North Korea

    Different news, events and political rumors can affect your trades if you are day trading futures. This has been apparent recently as talks between the United States and North Korea have been in the focus of the American consumers.

    To give a little history behind this, North Korea has been more or less against coming anywhere near talks with leaders from the United States without a weapon readily available. This all changed in the past months, as President Donald Trump negotiated a meeting with North Korean leader Kim Jong Un, which was set for the 12th of next month.

    Trump Cancels the June 12th Summit

    This summit between the two nations (with South Korea in attendance as well) was cancelled on Thursday, May 24. President Trump announced this via his twitter feed:

    “I have decided to terminate the planned Summit in Singapore on June 12th. While many things can happen and a great opportunity lies ahead potentially, I believe that this is a tremendous setback for North Korea and indeed a setback for the world…,” Trump said.

    While the announcement came as a shock to the entire world, there were warm and positive feelings to follow.

    “We express our willingness to sit down face-to-face with the U.S. and resolve issues anytime and in any format,” said Kim Kye Gwan, a senior North Korea foreign ministry official, in a statement published by North Korea’s official state media.

    Trump followed his tweet by saying he was glad to hear a positive message from North Korea and looked forward to meeting in a summit setting in the near future.

    “Very good news to receive the warm and productive statement from North Korea. We will soon see where it will lead, hopefully to long and enduring prosperity and peace. Only time (and talent) will tell!” Trump tweeted.

    How does this affect those who are day trading futures?

    Just like any type of announcement made by a high-ranking government official, Trump’s tweet sent stocks plummeting on Thursday. However, this down trend retraced a bit as feelings didn’t seem to be as tense as the day moved along.

    On top of this, crude oil futures fell 3.3%. This was due to the Organization of the Petroleum Exporting Countries reducing oil production by up to one million barrels per day. Crude oil prices have already risen 13% this year and look to only increase.

    Day Trading Futures | In Conclusion

    “If the Saudis do lift oil production, that could be the news of the day. It may result in a weak patch for the energy sector, but for the broader market that could be offset by a rise in sentiment if it results in gas prices falling going into the summer driving season,” said John Augustine, chief investment officer at Huntington Private Bank.

    “There’s still a lot of questions about geopolitical issues with North Korea. Recent developments have seemed positive, but there’s a big question of what the sentiment is going to look like during the long weekend. The question for investors is whether they should wait until Tuesday to see what happened over the weekend and make decisions then.”