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Posts Tagged ‘Futures Trading’

Futures Markets: Fiancials, Metals, Energies Reviews: 30-Agu-10

New week comes. How are you? How is your seven business days? Always, I wish you have been doing well. Today, I’m glad to be back to do my regular job: sharing information on financials, metals, energies and other related news to help you guys who have the same interest in futures trading.

Since energy resouces keep an important role in daily life, this market alwsays get much concern from all of us. Now just have a quick view on energy market. Last week, Natural Gas had a tough time as this market got pummeled below $4 on the NYMEX.  Inventories are very weak and this is the time of year when natural starts to sell off so look for this market to try and consolidate around the $3.60 level before heading any higher. While around metal market, Copper had a huge rally on the Sunday night session as December broke above $3.40 to trade at $3.46. There are evidence for a prediction of the fact that copper going back down to $3.35 before heading higher ahead of the non-farm payroll action Friday. Just take care of those markets to decide your business!

As normal, we cannot neglect the financial market. Our expert – PitGuru Frank LaMantia – will not let you alone by doing analysis and sharing the information with you guys. And there is not any exception this week. He is back and brings you valuable review. Now we will take some time to check out his reseach: “The market is down because of a lack of confidence. The market is hoping that manufacturing picks up while consumers head for the bunker. The S&P may need to stay above 1066.00 in order to show it can take a few hits from the bear claw. The monthly job report will be announced Friday. It will be a holiday weekend and many will be on vacation or leave early for a half day. This does not mean the market will not swing in one direction or another. So, be ready on Friday!

This morning economic data was announced showing an increase in consumer spending which rose 0.4% in July after 3 months of bad announcements. This could be back to school spending accounting for this rise. Now, if Aug. and Sept. numbers show a rise this will get Wall Street’s attention. This trader is unsure because the consumer is struggling and these numbers may be inflated for a short period. Durable goods rose 1% in which half was auto sales. Doesn’t this sound like parents buying vehicles for their children going to college?The economy may not be growing fast enough to support job growth which can lead to economic disaster if action is not taken. Job creation and stability of the consumer is needed to get this country back on track. The people built this nation and the government needs to let them build it again!”

Are you tired? I think you may be exciting with such the information worth to your trading. Did you note down key points? As always, since you are earning from trading in futures, you are recommended to checkout other weekly futures reviews or to pay attention to daily futures price reports or to regularly check out  currency exchange rates. Remember markets are changeable and have interaction to the others! Changes in energy or currency market can cause changes in others. So, don’t miss any news valuable to your trading!!

- 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

Expand Knowledge in Commodity Investment

“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

Futures Trading – Understand How to Make Money Trading Futures

Just before jumping into how to make money dealing futures, it might pay to recognize precisely what the concept means. Purely fit, it entails a contractual agreement to invest in or offer a distinct commodity or monetary instruments at a pre-established price in the future. Also, it might be helpful to know that the futures marketplace is volatile, risky, liquid, and can charge you lots of money if you do not have a distinct notion of what it is you are performing.

How to make Money Exchanging Futures

Now that you have a fundamental concept of the concept, it is time to quickly go through how to make money exchanging futures.

1.1st you have to have to educate your self. You can obtain this by buying books and videos or attending seminars wherever you will discover all there is to possibly discover about the futures trading. Essentially, you need to soak in as a lot as you can about futures exchanging.

2.Next, you have to determine how you plan to carry out your dealing from time to time. This signifies you have to make a decision whether you want to do it yourself (i.e. if you are sure you know precisely what to do without having losing huge time), or open a managed account to permit a stock broker do your dealings for you centered on contract or join a commodity swimming pool; doing either or much more of these will set you on course to commence making money trading futures.

3.Determine how very much you want to invest; bearing in thoughts that the more you set in the more you will get. However, if you have chosen to do it by yourself, then it may well be greatest to go about it little by little – i.e. invest quite little to start with and improve your expenditure after you feel comfy with the program.

4.Assess your improvement from time to time and make a decision if you are winning, enhancing or shedding out. This will aid you decide no matter whether to keep going or try altering your purchase method (e.g. opening a managed account rather of doing it your self).

- About the Author: Want to learn more about the Best Futures Trading System? Go check out http://www.tradeyourfutures.com and get a free E-Course to learn everything on how to make money trading futures. Article Source

Gold, Silver & SP500 Trading Charts & Video

May 16, 2010Last week was amazing for both gold and index traders as gold surged higher and the SP500 tested a key resistance then fell 4% in our favor. The past couple weeks with the mini market crash and Euro issues making the market extra volatile both gold and the broad market (SP500) index has been wild.

The added volatility makes trading more difficult because price patterns become less predictable and price movements are much larger increasing risk for traders.

Below are the charts & videos of what to look for in the coming days…

GLD – Gold ETF TradingGold continues to trend higher at an accelerated rate. Friday we saw gold pullback and test a key support level then bounced to close in the middle of the days trading range. As you can see the trend line support has become very steep and once the trend line support is broken I figure there will be a sharp drop to digest the recent rally.

SLV – Silver ETF TradingSilver popped and tested a key resistance level from a previous high as expected. It also tested the top of its trend channel providing even more resistance. This week will be interesting as we wait to see if precious metals have a small pullback or continue to rally.

SPY – SP500 Index ETF Trading ChartThis chart clearly shows what I think is about to unfold by looking at the past market drop. Because of the mini market crash triggering everyone’s stops already I figure we have made the low and the dip we are seeing now will drift down a few more percentage points then bottom out.

ES M0 – SP500 Mini Futures Trading Setup – Pre-DropBelow is a chart of the SP500 which we shorted or bought the SDS bear etf trading fund last week looking to profit from a falling stock market. As you can see from the chart we saw the es mini contract drift into a key pivot point on light volume. What this means is that a large group of sellers will be waiting at that price, and because volume is light we know there are not many buyers at this price level. Simple supply/demand comes into play with more sellers causing the price to stop rising and eventually force the price lower which is what we were anticipating.

The green arrows show key support levels on the 60 minute chart where 1/3 of a position should be taken of the table to lock in gains which also reduces overall risk on the trade. Once we cash in the first 1/3 of the position we move our protective stop the breakeven which is the entry point for the remaining portion of our position. This turns the trading into a winner no matter what happens allowing us to enjoy the ride…

ES M0 – SP500 Mini Futures Trading Setup – Current PriceHere is the same chart 24 hours later showing both of our profit targets triggered pocketing 2/3rds of our position for a very nice gain. Depending on the type of trading vehicle you traded there was potential to make up to 150% return in less than 24 hours.

We currently hold 1/3 of the position left with a loose stop allowing the trade to mature incase the down trend continues for several days or weeks. If not and the price rallies then our stop will get triggered for small profit on the balance of the position. Either way we win.

Pre & Post Market Correction Video: http://www.thegoldandoilguy.com/articles/sp500-market-correction-trading-videos/

Stock Market ETF and Futures Trading Conclusion:In short, the market is trading on increased volatility making it difficult to find low risk setups. At the moment we are long gold and short the SP500 with both position deep in the money. All we can do now is manage our positions to make sure we maximize our profits.

If you would like to Get My Trading Signals be sure to check out my services at: www.TheTechnicalTraders.com

Chris Vermeulen

- About the Author: Chris Vermeulen is Founder of the popular trading site http://www.thegoldandoilguy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return. Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com Article Source

6 Critical Factors For Successful Forex Trading

Online, Day trading has exploded across America. Some investors have been very successful and boast of huge gains made in incredibly short periods of time. However, there are many others who experience devastating losses because they have not tapped into the 6 critical factors necessary for successful Futures and FOREX Trading. Http://Free-Cash-Site.com

Success in any profession can be broken down into a number of critical factors. Trading is no different. A successful trading strategy incorporates the following 6 factors.

1. Determination of An Edge: Trading Futures is a zero sum game. There must be an identifiable edge over the other market participants.

2. Disciplined Execution:There is no point in identifying an edge if there is no discipline to follow thru. Create a plan, stick with it, then determine if the plan is successful. If it is not, change the plan. The important thing is disciplined execution.

3. Money Management: If the risk per trade is too aggressive, then there is the risk of blowing an account. If trades are too conservative, then the opportunity to optimize returns is missed. It is critical to establish the maximum expected draw down of any system and set money management rules accordingly.

4. Create a Trading Plan: A trading plan will determine what will be done in any given situation during the trade day. A plan helps keep one focused on execution and not distractions.

5. Responsibility: Responsibility lies with the trader. Gains, losses, success, or failure is determined by the skill, determination and discipline of the trader.

6. Commitment: There must be commitment to placing every trade according to plan, even through the losing periods where every trade seems to end up a loser. Trading seems to throw up extremes of good times and bad times. One must not be over confident during the good times, and one must not give up in the bad times. There also must be adequate time every day to compare actual performances against the trading plan.

http://itshrunk.com/3ed7cb

- About the Author:

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Futures Trading: You Need a Backup

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

Your Stop Loss Is Critical When Day Trading Futures

Stop loss orders are great insurance policies that cost you nothing and can save you a fortune. They are used to sell or buy at a specified price and greatly reduce the risk you take when you buy or sell a futures contract. Stop loss orders will automatically execute when the price specified is hit, and can take the emotion out of a buy or sell decision by setting a cap on the amount you are willing to lose in a trade that has gone against you. Stop loss orders don’t guarantee against losses but they drastically reduce risk by limiting potential losses.

With my system the only stop I use is what I call an emergency stop. My stop loss is automatically made when I make my initial trade at two points. It is only for emergencies, like news I wasn’t expecting, or anything that will make the market gyrate drastically and I never enter a trade without it. However I never expect to use this stop loss to exit my trade. I simply will not let the market move against my trade entry more than a tick or two. If I find that I exited the trade too soon I just reenter the trade but if the trade continues to move against me I have saved the loss of one or two points per. contract. Usually I will only have to exit and reenter a trade one time if I have entered a trade to early. This means I only lose a small commission per contract instead of fifty dollars per point- per contract, when trading the e-mini, and taking what many considera normal loss.

Trading the futures markets is a challenging but profitable opportunity for educated and experienced traders. However it is not easy, without a great trading system, and even traders with years of experience still incur losses. Finding a good trading system and trading in small increments with an emergency stop loss in place will allow those relatively new to futures trading to be successful. Once you have learned the skills you need to trade with consistent profits it will not be a problem but until that time it is absolutely critical that you do not take unnecessary losses. If you are new to trading futures you should never trade until you have a mentor with a trading system that gives you consistent profits.

A great way to protect profits if you have not established an exit strategy is the trailing stop. The trailing stop loss is an order that is entered once you enter your trade. Your stop price moves at a specified distance behind the market price. Trailing stops are raised when a price rises, in a long trade, but will remain stationary when it falls. Trailing will only occur when the market price moves in favor of the trade to which the order is attached. The trailing stop order is similar to the stop loss order, but you use it to protect a profit, as opposed to protect against losses. Trailing stops are designed to lock in profit levels and they literally trail along your increasing profit and adjust your stop loss levels accordingly. Often traders will find tailing stops confusing because they change them while in an open position. This is not a wise practice, and should be avoided. It is an indication that you are not sure of your trade and if one is not sure of a trade it would be wise to exit immediately. Trailing stops are ideal because they allow for further profit potential to enter due to momentum, while limiting risk. Trailing stops are an important component to a trader’s risk management unless they have an exit strategy in their system that might serve them better.

The market order is the simplest and quickest way to get your order filled to enter a trade or to use as a stop loss. A market order is a trade executed at the current market price and they are often used to exit trades to ensure that the order has the best possible chance of execution. A market order to exit is simply an order used to exit the trade immediately. Be aware that in a fast-changing market sometimes there is a disparity between the price when the market order is given and the actual price when it is filled.

Stop loss orders are used to exit trades, and are always used to limit the amount of loss, but some day traders use them as their only exit, while other traders use them as a backup exit only. If one uses them as their exit they will risk more than is necessary and might want to find a better system to trade. Stop loss orders allow you to define your risks before you open a position and in my opinion that risk should be minimal. Stop loss orders are one of the easiest ways to increase your chances of survival when trading commodities and futures and they are a powerful risk-management tool.

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Article Source:http://www.articlesbase.com/day-trading-articles/your-stop-loss-is-critical-when-day-trading-futures-1653295.html