Hi everyone, I have been trading crude oil for one week and find that it doesn't fit me at this stage. I got an intention to trade CME livestock futures but have little experience on them. Could you tell me which one has a greater volatility ( typical around how many)? And which one do you recommend for a newcomer to the future trading. Thanks for any comments
i traded hogs and cattle a limited time using spreads, but the fill time for my orders killed the appetite for me... if you're new to futures trading I would seriously recommend something that's electronic (hogs and cattle are also electronic but the volume is very low still)
Complete newb reply, I know nothing of these mythical spreads- Ive kept an eye on the electronic vol for cme meats, not so great, will check them again. You traded crude, light sweet, sep or otherwise, isnt that kind of- huge? Please excuse me if ive made a mistake with the dates, but my eod analysis showed on monday 27th june, (sep cl) , the following; a gap open, over any previous high-a divergent warning, on any short term indicator- and it pearced the bollinger band on the upside, same as that contract did on the 4th of april, or thereabouts, plus contracting open/closes. Says sell , normally- eod, perhaps 60.58 down to 58.01 or so, if you were lucky. But thats decent bucks, a no brainer eod- probably a simpler setup with intraday trading? I think ive missed something . Or , is this an options thing? With regards to volatility, can you have "how many"volatility? Im confused.] As for meats as a group, im thinking right now, i may have missed the best entry for a short term push up to 68.800 on the lean hoggies, similiar for live cattle- time will tell.
Crude oil, at its current level, will always be more volatile than the meats. As a rookie, try to stick with electronically-traded markets. Open outcry markets are operationally frustrating. That said, consider trading the (CBOT) 5-year note and be aware of when the major reports are released.
to acronym: the crude oil would make your heart stop beating when the market goes against you, of course make u high enough when you are right. only 0.10 per barrel means 100 USD per contract and it is common to have 2 per barrel as the range of a single day. I am about to give up it.
That is for the big CL contract. The e-miNY is half that. A $2 range is not common at all, although I agree we have had some lately. I think the electronic CL is a decent daytrading contract, provided you are not trying to do size, which a newbie should not be doing. A newbie should not be trying to trade the pit-traded contract, as you can get some horrendous slippage, and that is even if you are calling a decent clerk right at the pit. You can get some wild moves around the weekly inventory data.
A newbie should probably stay away from the CME meats unless you are trading very long term. The locals there would rather drink battery acid than give you a decent fill. You can watch the stops getting run all day.
I agree, the ags in Chicago are not ready for out of the pit trading yet. If I had to trade ag's I would look to LIFFE. Coffee trades about 30,000 contracts a day and commissions with IB are reasonable.
Sorry for the confused, mangled question there, context thing, the respective value/risk rather than straight out volume/ average % daily move sort of thing. Locals would "rather drink battery acid" , than give you a decent fill? Maybe they shoud call them "mean" hogs and cattle- greatest respect to anyone daytrading, trying to daytrade, newb or otherwise.