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Commodity Future Market
If we are able to survive any new endeavor long enough,
we sometimes discover what it takes to succeed. This
certainly applies to commodity futures market trading.
Most of us cannot learn from others' mistakes. We need
to commit errors ourselves to feel the pain. This seems
the only way to learn our lessons. Read more about my
first novice experiences and struggle to survive.
Futures Market Trading
When I think back on the early futures market trading
misconceptions I had, I wonder how I made money at all.
I got off easy. I think it was only because I hate to
lose money. In fact, I still worry too much when the
commodity market goes against me. I cannot hang in there
losing for long. But, it may be a blessing. This has
kept me in the futures market contracts for a long time
without a major loss. That's the reason why today I
prefer futures day-trading or buying long term options
for overnight positions. I like to be able to control my
risk as closely as possible.
Commodity Future Market Technique
I presently use a time cycle technique for commodity
market timing which I call, "The TimeLine." I use it for
all position market trading. The TimeLine also works
well for writing far out-of-the-money commodity futures
market.
For long-term position trading, buying options on
futures can work well only if you can buy them cheaply
and way out in time. It's much more difficult to buy
them at a reasonable price once "the cat is out of the
bag." This is when the futures contract market takes off
and the option premiums have expanded greatly..
Max, my Merrill commodity broker and opened an account
with one of the first commodity discount firms in
Chicago. I think I was paying about $30 round turn, plus
fees. Not bad at the time. I was barely making a living
off futures contract trading, but I hoped to get better.
Futures Market Trader
At the time I considered myself as a position futures
trader, holding trades for about a week or so on
average. It was difficult for me to hold overnight
positions, but I found I could, only because my analysis
was decent. Anyway, I remember a time that upset me. I
was always so careful with my orders and had a
disciplined method. I always took futures market trades
that lined up perfectly or let them go. I had to. My
life was over if I blew the commodity account out. I
didn't want to have to go back to "work" again.
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