S&P 500 E-mini futures i.e. Electronic Mini S&P 500 futures refers to the electronically traded futures contracts. This was first launched by the Chicago Mercantile Exchange on September 9th, 1997. E-mini futures or just E-mini as they are often named, are smaller sized contracts. The main purpose of launching E-mini futures is to attract investors to trading the stock market index futures. E-mini refers not only to the index but also the 500 companies that have their common stocks included in the index itself.

E-mini is one fifth of the size of the standard SP 500 futures contract. The E-mini futures contract has the point value of $50 which is much lower compared to that of normal S&P futures contract value of $250. With the E-mini, investors can trade a fraction of the overall index at a much lower price.

The E-mini offers great potential for traders. Greater liquidity and affordability for individual investors are the prime advantages of these futures. Since E-mini S&P 500 contracts are traded electronically, investors can trade round the clock. This is a great attraction and advantage for traders. They can trade all day long, 5 days of the week. You can even trade them from the comfort of your home.

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Since the margin required is smaller in the E-mini futures, it is affordable for a lot of new investors. Margin requirements are lower than those of the full size contract. The attraction to E-mini is that you can begin trading with as little as $2000 (depending on the margin requirements of your broker).

High liquidity is another attractive feature; there are always buyers and sellers. Slippage and tight bid or offer spreads have been minimized owing to its high liquidity. Another great feature of the E-mini futures is that you can buy long and sell short and there is no uptick regulation in these trades

E-mini futures carry very low brokerage commissions. Brokerage commission is one of the main problems for new traders with little amount of capital. Because of the low transaction costs in the E-mini futures, one can trade more often.

US traders can benefit from lower tax rates on gains and income as the e-mini qualifies as “1256 contracts”. This could be advantageous for many investors. This minimum tax reporting requirements helps to trade more private with reduced government interference. This will also encourage a lot of traders and investors to trade in the E-mini futures.

The E-mini offers a smaller contract that suits well for a broad range of traders. Since, these futures are traded electronically; it offers speed, reliability and flexibility. You can almost trade from anywhere at any time. It offers open, fair and transparent markets. E-mini markets have high volume and leverage. Thus, it is an ideal trading environment for day trading and short-term trading. It provides ability to have control over purchases and sales, giving reassurance in the money invested.

Because of the above said benefits, the E-mini gains a lot of success and popularity not only with amateur traders but also with the professional traders.

Peter Lama from Lama Forecasting uses unconventional technical analysis techniques to offer unique stock market analysis services with accurate results. We forecast daily and intraday turns in advance for the S&P 500 and AEX stock market index. Visit me at http://www.lamaforecasting.com or mail info@lamaforecasting.com Article Source

“Do not trade without a good understanding of the markets!” will be always right to any trader or investor traing in any market. That we always keep learning proves all. The answer may become clearer since you are here to expand knowledge in commodity investment. I would like to say thank you so much for that. We have the same interest in trading. Yes, we need to keep up with the trading platform so that we can make right on-time decisions.

Did you know what are commodities? Or do you have ideas, knowledge on how to do commodity future online trading? If you are traders or investors in the floor for years, these are not difficult questions anymore. However, various people have various levels of understanding about the markets, so sharing knowledge is not useless or redundant at all. You know, futures trading is actually commodity trading while commodities are grains, metals, energies, financial, etc. However investing commodity is not easy like that. We need non-stop learning to get good results in anything we do. Now, just expand our commodity investment knowledge!

Talk about this market, we will not ignore crude oil futures trading which is one of the news headlines of interest since hitting a high of around $147 a barrel and sending prices at the pump higher. We can earn the most news headlines.

Food markets are also in interesting list. Food is essential to all global communities. Grain futures, it hit relative highs in the summer of 2008, and experienced increasing volume during the food crisis scare earlier in the year. Besides, it would be negligent not to include markets like corn futures and wheat futures in the list of commodities futures contracts markets at all.

Traders always put much attention on the day to day movements of commodities and futures contracts. Options on futures contracts are also an attractive setting for investment. So why? It offers the possibility for some risk definition for the cost of upfront premiums.

Again, we need to bear in mind that trading in commodity, futures and options involves a substantial risk of loss. However, commodity prices will continue to change with the needs of each global community. The world is constantly changing and the needs for each society can also lead us to investing potential.

Check to learn more and educate yourself on the risks and rewards for commodity futures trading, and find a broker who fits your needs. The futures markets are always evolving and we will want to try to stay ahead of the curve.

- About the Author: I’m a trader in futures trading floor. I’m always eager to learn and share. Reading and searching are my hobbies. Article Source

There is a general perception that day trading futures contracts is a highly risky business and not for the faint of heart. Day trading can be a very risky business, especially when traders use poor money management techniques, faulty trading technique, and improper risk assessment for trades. For the uninitiated, day trading is a great way to lose a nice chunk of money.

It doesn’t have to be that way, though. Far too many traders charge into the markets and improperly prepared for the challenges they will face. It’s easy to understand why. A casual examination of a future chart shows a serpentine pattern, up and down, that ought to be fairly simple to trade. There is also a tendency to assume that the serpentine patterns follow some sort of organized pattern. Figure out the pattern, and you ought to make money.

Wrong!

Study after study has shown there is a high component of randomness to futures trading charts. I do think there are some identifiable patterns buried in the random patterns, but they are not as obvious as one might think. No, learning to trade is far more than a perfunctory glance at a chart and placing trades when you think the market is moving one way or the other.

The very essence of trading is containment of risk. There are many components traders utilize to minimize risk, and most center on the concept of probability. The idea is to take high probability trades, and pass on low probability trades. Through training and experience traders learn the characteristics of high probability trades as well as the characteristics of low probability trades. Further, careful management of your futures trading account is essential. In order to minimize risk, a trader should never trade more than 8 to 10% of his account on any given trade.

But there is even more. I get ample opportunities to watch traders practicing and am amazed at how many traders enter trades without stops. It is essential to determine your level of risk on a given trade and set an appropriate stop loss order to assure you do not lose an excessive amount of money on a trade gone badly. In my opinion, this is the most frequently violated risk management tool. Frankly, it baffles me.

Day trading is far from living on the edge. The goal of the day trader is to both profit and minimize risk. Obviously more risk increases the likelihood of losing trades, and losing trades are not what traders want. For that reason we employ a variety of risk reduction procedures to increase our likelihood of success.

The more adept a trader adapts risk management techniques, the more prosperous he will be in the long run. Risk containment should be the primary goal of every trader, and lack of proper risk containment is the number one cause of trader failure. While it is very romantic to think of day trading in the same light as being a gunslinger, just the opposite is true. A good trader avoids confrontation with excessive risk and cowers against low probability trades.

- About the Author: I am a long time retail and institutional trader who now only trades part time, usually in the morning. I enjoy writing informational articles about my style of trading so others may benefit. Would it be convenient to receive valuable trading tips every night in your email? You can sign up for our free video series by Clicking here These videos contain advanced trading strategies and will enhance your trading knowledge immeasurably. Best of all, they are free! So get your free videos and start trading like the pros. Article Source

There are an adventurous few who plow headlong into trading with the style and grace of a Brahma bull. These are the brave few who neglect to take the time to develop a trading methodology and personal self-discipline to trade effectively. The end result is almost always the same; complete and utter failure. Of course, this group of people seem to trumpet the pitfalls and difficulties of trading to anyone who’ll listen.

I hear stories like this, and similar stories, on a consistent basis. People tell me they knew “so and so” who tried to trade and lost a fortune. It seems everyone knows someone who has lost a considerable amount of money trading in the futures market. Unfortunately, there is a never ending supply of those adventurous few who plow headlong into trading with the style and grace of a Brahma bull. So the story perpetuates itself over and over.

I’d like to take a moment with these frightened souls and explain to them that there is a controlled and methodical technique for profiting in the futures market. You don’t need to charge into the markets like a mad bull.

But for many, the damage has been done and rumor can be much more powerful than fact. The average American is, by nature, averse to excessive risk. Most individuals work hard for their money and don’t care to fritter it away carelessly. As futures traders, and educators of futures traders, this is the problem we face.

Of course, there are risks associated with trading e mini futures contracts, and deliberate money management techniques must be implemented along with very exacting trading technique in order to be successful. In short, it takes discipline and experience to be a successful futures trader. But it can be done.

There are a large number of successful traders in the United States, but they seem to be a quiet bunch and go about their business without fanfare or accolades. These folks are interested in making a great living and, by and large, do so without braggadocio or drawing excessive attention to themselves. Needless to say, there are a few braggarts out there. I always seem to meet them at cocktail parties and endure hours of explanation on their trading technique and the millions they have made in the market. I seem to attract them. I don’t know why, but cats seem to feel the same way about me. I prefer the cats.

The point of this article is to emphasize that well controlled trading is possible and profitable. Individuals who equip themselves with the proper knowledge, training, and mentoring stand a good chance of success. They just don’t know it because they’ve listened to the crowd of mad bulls who charge into the market. I wish it weren’t so, because trading can be such an enjoyable profession and creates a wonderful sense of self satisfaction. I feel that we, as trading educators, have failed to get the word out on responsible and profitable trading. For this reason, trading is perceived as a risky and foolish endeavor; better suited for mad bulls.

My goal is to responsibly educate the public, whether they trade not, that rational individuals make a living trading in the futures market. Whether people choose to trade not is up to them. But I would like for the public to have a more rational view of the trading profession. We are not the greedy Wall Street types, nor are we excessive risk takers. We are a group of people who have learned to control risk and embrace it to our advantage. In short, we need to dispel the notion that futures traders are mad bulls.

- About the Author: I am a long time retail and institutional trader who now only trades part time, usually in the morning. I enjoy writing informational articles about my style of trading so others may benefit. Would it be convenient to recieve valuable trading tips every night in your email? You can sign up for our free video series by Clicking here These videos contain advanced trading strategies and will enhance your trading knowledge immeasurably. Best of all, they are free! So get your free videos and start trading like the pros. Article Source

There are many ways Investors can gain exposure to Oil ranging from Oil stocks, Exchange traded funds through to Futures contracts.

Crude oil is the raw material that is refined to produce gasoline, heating oil, diesel, jet fuel and many other petrochemicals

Capital Spreads offer exposure through spread betting on the price of the “West Texas Intermediate” (WTI) futures contract traded on the New York Mercantile Exchange (NYMEX) which is the most popular grade of crude oil that is traded.

What makes it move?

Geo-political Events

Whether it’s militants in Nigeria or Israel and Iran at each other’s throats any Geo-political tensions  in any of the oil producing regions will play a great role in the price of crude as supply can be upset.

Here are the world biggest producers of Oil along with the size of the reserves and their market share.

Country

reserves (bbl)

Share

1  Saudi Arabia

267

19.66%

2  Canada

179

13.16%

3  Iran

138

10.20%

4  Iraq

115

8.47%

5  Kuwait

104

7.66%

6  United Arab Emirates

98

7.21%

7  Venezuela

87

6.41%

8  Russia

79

5.82%

9  Libya

41

3.05%

10 Nigeria

36

2.67%

1,144

84.31%

Production

42% of oil is produced by countries that belong to The Organization of the Petroleum Exporting Countries (OPEC) who are headquarted in Vienna.

According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel’s interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international  oil markets with a view to eliminating harmful and unnecessary fluctuations.

OPEC attempt to control the price of oil by increasing and decreasing output from its members.

If they want the price to go higher they will cut output and if they want it lower they will increase output.

OPEC meetings and decisions can be found on the getdealing.com event calendar.

OPEC MEMBERS

Algeria Africa

 Angola Africa

 Ecuador South America

 Iran Middle East

 Iraq Middle East

 Kuwait Middle East

 Libya Africa

 Nigeria Africa

 Qatar Middle East

 Saudi Arabia Middle East

 United Arab Emirates Middle East

 Venezuela South America

Global Growth Expectations.

The more the world economy grows the more demand there is for Oil which will drive prices higher. The less the world economy grows the less demand there is for oil sending prices lower. In recent year’s oil traders have started to pay particular attention to growth in China and India as these mainly manufacturing economies are heavily dependant on oil.

USD

Oil (like gold and other commodities) normally has an inverse relationship with the USD meaning when the USD weakens the oil price should move higher. If the USD falls then because oil is priced in $’s you will need more $’s to buy the same amount of oil.

Seasonal Demand.

Demand is generally highest during the summer and winter months. A very hot summer or very active driving season (for summer vacations) can increase the demand for crude oil and cause prices to move higher.

An extremely cold winter causes higher demand for heating oil, which is made from crude oil. This usually causes prices to move higher. Watch the weather in the Northeast, since it is the part of the country that predominately uses heating oil.

OIL Inventory Data

Every Wednesday afternoon the Energy Information Administration releases the US weekly oil and gas inventory figures which give an account of the stocks of oil and natural gas the U.S currently have in reserve. If the Inventory number is lower than the consensus estimate then the price of crude oil may  rise and if it is higher then the price should fall but this is not always the case.

Oil Inventory data can be seen live on the event calendar in getdealing.com dealing room along with the consensus estimate.

                     Watch for oil production cuts or increases from OPEC

We are a free resource for spread betters providing REAL-TIME analysis, news and data in a clear format to give you the best chance of profiting from spread betting.

Article Source:http://www.articlesbase.com/day-trading-articles/how-to-trade-oil-1682145.html

There is more to day trading than making money on high-probability setups.  As a trader, you have to be prepared to handle several situations that occur unexpectedly and without warning.  Your data and your ability to transmit data are two of the most important and often overlooked aspects of trading.  What would you do if you lost your internet connection and were in the middle of a trade?  What would you do if you had a hard drive crash?  These are two questions you need to have answered before you begin serious futures trading.

I was trading last July and my broadband connection failed during an emini trade. I was long 5 contracts and everything just went silent, no data feed.  The market was very volatile last summer and I needed to talk action fast.

What would you do?

I think the safest bet is to simply call your broker immediately, which is what I did.  I also have a back-up dial-up connection set up, so that was another option.  The point is a simple one, though, and that point is that I had thought about this eventuality, and was prepared to deal with the problem.  I even have my broker’s number on my speed dial.  I was lucky and managed to get out of the trade with a small profit, but can you imagine the range of consequences had I not given this problem proper consideration?  

I’m not sure there is any right preparation for losing your broadband connection while trading futures contracts.  The right answer is one that works and you are confident in it’s execution.  Cell phones, land lines, and alternate internet connections are all viable options, but the important part to remember is that you need to plan ahead for problems.  I had thought about this problem several times and thought one of the real dangers of trading online is how vulnerable you are to potential problems.  I had read several articles describing the horror of sitting at your computer, powerless to rectify or manage your trade because your data feed went dead.  I think it is important that you have a back-up plan to manage an emergency, and test your plan to make sure it works.

What if you computer stops working?  

I have a laptop hooked up along with my desktop computer anytime I am trading.  If the problem is my computer, I can rely on my laptop to complete the trade.  Of course, I can still give my broker a call instead of using my laptop, but I feel more comfortable with two computers.  Again, the point is a simple one, and that is to have a plan in mind before a problem occurs.  Give it some serious thought.  If you live in the country, make sure your cell phone does not have any potential reception issues.  If you are using a cable connection for both your internet and land line, chances are your phone will not work if your data feed stops, so a cell phone is imperative.  Just make you sure have a workable plan.

One of the most precious commodities is my past trading experience which I have documented on a very large Excel spreadsheet.  I download each days chart too.  Three times every week I download all of my information onto an external hard drive.

Why?

Aside from hard disk failure, there is also the possibility of hackers, viruses and a host of malware that threaten your computer.  I run a very specialized firewall and have a number of anti-virus and malware programs running to protect myself in the event of any of these threats.  You should, too.  Your data is important for your progression as a trader, it’s the laboratory from which I continue to test my trading skills by reviewing past trading days. Securing your data from harm is an important function, so it is important to use some sort of data backup system to prevent data loss.  External hard drives work well, but there are online backup alternatives available, too.  I have recently started using one and am very pleased with the results.  

The secret to keeping your data and computer safe is to plan ahead and not let an unexpected and unpleasant turn of events affect your futures trading account.  You can’t control the wide range of problems that can occur, but you can control the consequences.

You can learn to trade from a 15 year veteran trader, not a salesmen. This program comes with a lifetime mentoring program and an educational package that is second to none. Additionally, the trading system is time tested and has been in use more than ten years. You can get your emini starter pack (valued at $500) by going to Click here for your trading pack at Trading Concepts, Inc

Article Source:http://www.articlesbase.com/day-trading-articles/futures-trading-you-need-a-backup-1661385.html

A common question that I get asked is “Do I have to spend hours reading stock charts to learn how to trade?”  This is one of the great misconceptions of would-be traders.

They think that they have to spend hours analyzing charts and other data, trying to decipher trends and patterns in the markets, in the HOPE that they will guess right on the next movement in the stock market. And quite often, they are DEAD WRONG.

This is called “technical analysis”. Technical analysis is a form of security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume.

In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument. Technical analysts may employ models and trading rules based on price and volume transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, cycles or, classically, through recognition of chart patterns.

To most new traders, the various terms, rules, methods, and strategies employed by technical analysts are very confusing, intimidating, and amount to little more than foretune telling.

I can see why people would think this. You are trying to predict the future by looking at the past. Many people would equate this to trying to determine the next spin of the Roulette wheel by the previous spins. Or trying to tell someone’s future by reading their palm.

While this isn’t entirely accurate, it is easy to see why people who want to learn how to trade futures, e-minis, commodities, or other contracts would shy away from trading after digging into technical analysis.

So back to the question – “Do I have to spend hours reading stock charts to learn how to trade”? The answer is: It depends.

This may sound like a cop-out, but it’s not.  It depends on whether or not you want to learn technical analysis. If the answer is “yes”, then yes, you need to spend hours and hours (and hours and hours) learning to read stock charts, learning to decipher patterns and trends, drawing lines, hoping that what you think you see is really what is going on, etc.

If you are NOT specifically looking to learn technical analysis, then NO, you do NOT need to spend any time reading charts.

In fact, I have learned a successful that requires only the very basics of chart analysis – meaning I can look at a chart for 5 seconds as I get ready to enter a trade, and I’ve seen all that I need to see. No time spent analyzing market movement. No lines drawn. No trying to calculate formulas that would make Einstein choke. And no guessing which way the market is going to move.

In fact, I don’t CARE which way the market moves. Because I make money no matter which direction it goes.

And I don’t need to spend hours sitting in front of a computer, making hundreds of trades. I know EXACTLY when the market is going to move. And I also know about how much movement to expect. And I also know how to capitalize on that movement, no matter which direction the market goes.

I don’t care if you have free stock charts, are looking at esignal for your trades, or are using optionsxpress, this is all unnecessary. There are many options around you – consider them all before making your decision.

The Guerrilla Trader is dedicated to educating traders and investors alike on understanding the inner workings of the markets.

If you really want to learn day trading, then visit The Guerrilla Trader today and pick up your FREE Guerrilla Trader Day Trading Video Boot Camp Training Course!

TheGuerrillaTrader.com

Get in, hit your target, get out…like you were never there.

You can learn to trade with DEADLY precision.

zecco etrade

Article Source:http://www.articlesbase.com/day-trading-articles/learn-day-trading-learn-to-trade-futures-contracts-without-charts-1662256.html