Introduce newbie to corn futures please

Discussion in 'Commodity Futures' started by Twinsen, Oct 16, 2010.

  1. Twinsen


    Hi, guys could you tell me about corn futures (ZC) or give some useful reading about how to trade it? I mean day trading. What key events influence the price, at what time not to trade because of very high volatility (e.g. some news or something like inventory reports for CL). What is the usual daily range and so on. Well any recommendations are welcome.
    Thank you!
  2. Buy low and sell high is the best advice one could give for this kind of question.
  3. I guess we should start with "What are you a 'newbie' to?"

    Are you new to trading? Go trade stocks. That's where you learn about markets.

    Have you traded wheat for 20 years and now you want to trade corn too? That changes things.

    No 'newbie" trader should jump into commodities futures. You'll get whacked and then some instantly.

    I grew up trading corn the old fashion way; Growing it!

    Today I trade corn without a tractor. It's still trading corn.
  4. Twinsen


    mgookin, I am a newbie to trading :) Though I traded ES on sim for some time and found it to be too volatile, as well as other emini index markets. I cannot trade stocks because of min $25k requirement for day trading. Many newbies start trading futures without trading stocks. I agree that in stocks one can trade real money with small amount of stocks while learns to trade without serious damage to account. But in any case I trade on sim until work out skills.
  5. Daytrading would not be the place to start either so I don't see where the $25k is an issue. Most people started trading with much less capital than that. Then as you see something working, inch up the capital you invest and repeat the process.

    I suggest you start trading stocks. Find low cost high growth stocks and invest in 3-5 of them and turn the computer off. A month later turn it back on.

    There's just no way to jump in with zero experience and trade futures in my opinion.

    Whatever you choose, good luck.
  6. spd


    The grains will not be any friendlier.
  7. 1) The grains are "expensive" and too volatile for a rookie now. They may never become "cheap" again.
    2) Look at the 2-year or 5-year note instead for a slightly "tamer" market. :cool:
  8. why not just trade forex, i mean you get to learn how to read charts and technical analysis. I mean you could even open up a real account with only 500 and just trade really small to get the feel of a real account. Once you learn that, then move to another market.
  9. emg


    To trade corn, here are the things u must research

    1) Weather. Weather drives the grain market. after all, rain grows grain

    2) Seasonal. Planting season begins during the month of march (southern states), april (some midwest states and east coasts), may (midwest). Pollination season begins in june - sept. harvest season begins in sept (southern states) oct-nov (midwest and east coast). farmers sell corns starting in dec.

    3) Must understand between old crop months and new crop months

    4) Supply/demand. must keep track of USDA supply/demand estimate.

    5) Must know the storage cost, interest rate, basis, ratio, etc

    6) Must keep an eye in the cattle and hogs markets. 80% of corn are sold to cattles feedlot.

    7) Must keep an eye on other grain such as wheat and beans. They are substitute for corn.

    8) Must pay attention on south america (argentina and brazil) supply/demand and weather. Their planting season begins in november.

    9) Must control your emotion when there is a limit up or down

    Hope this help
  10. Shagi


    Simple - Just trade in the direction of long term trend. Your day job is to indentify it, take a position at the right time with correct position size, manage it and ride it. :D
    #10     Oct 20, 2010