Hi Everyone, I am just trying learn about trading the Ag Futures and I have a few silly newbie questions below. I hope you guys don't mind responding. 1) Why do you guys trade ag futures? 2) What are the risks? 3) What is the best way to learn about the ag futures? 4) What broker should a newbie use? Thanks! PA
Hello. Answer in Question 1): Because are the most important Products and Goods in this World. When you eat for last time ? Possibly, 1 Hour or 2 Hours or 3 Hours or 4 Hours or 5 Hours ago. But if you do not eat after 1 Hour or 4 Hours or 8 Hours or 12 Hours or more from now, what will happen to you ? You will start to starve. That is one Big Answer why we trade at least the Grains (Corn Soybeans and Wheat). Which is the most important Product after the Air and Water or the Water and Air ? Which have the 3rd rank in importancy in this World (possibly) after the 2 above things ? The Milk. Without Milk can not survive the Human Babies of this World. Many Women does not have Milk for to give it as Food to their babies and depend in the Milk that buy for to give it as Food to their Babies, for to do not starve and died. For to exist Milk and we speak especially for Cow Milk, because the Majority of the Milk in this Globe, producing from Cows, need a Product that produce in huge Quantities, USA, Brazil and Argentina and a small Number of Countries in this World. Soybeans. If USA, Brazil, Argentina esecially, does not send with Ocean Vessels, Soybeans in many Countries of the World, be sure that the World or a huge part of it, it will starve. We listen that China is a Big Country, European Union is a Big Union with almost all the European Countries together, but all these Countries, have to eat without to send the USA, Brazil and Argentina, Grains to them ? All of us, listen that exist troubles in Crude Oil flow, from the OPEC Countries, the Gold have raise because of Financial Problems but all these are funny Stories when you compare it with the Value of the Agricultural Products and Goods. If you do not consume Crude Oil or you do not buy Gold, it will happen something to you ? Nothing. If you do not consume for example, Grains it will happen something to you ? Yes. You will starve. Answer in Question 2): The Risks are enormous. In a little, possibly, seconds you can lost a huge quantities of Money, because of the News and not only, that will arrive in the Agricultural Markets and you will learn it possibly, after many other Companies small or big and other People. You have to compete with Huge Multi-National Companies that have Huge Human Resources, Huge Technology Abilities, Huge Amounts of Money to spend for Agricultural relative Informations, that possibly someone like an Individual Investor can not imagine. Answer in Question 3): With Personal Work. You must spend additional time for to do your Personal Research, to find Sources of Agricultural Informations and also to contact with other Old, especially, Traders and Brokers that have many Years in the Agricultural Markets, for to learn things and to listen Stories, from their Experience. Answer in Question 4): Exist many Good and Ethical Brokers in this World. Dislike me right now, to make Suggestions to you. Be aware, that you need Quality, Speed and Accuracy, to put your Orders in the Agricultural Markets for execution. Also, you need to study, the Software of the Broker/s that you will choose and the Way that you will send the Orders to your Broker/s, before you make any move. Best Regards, George Kanellopoulos.
Hi George, With the risk being so huge, how do traders manage it? Also, how could a newbie like me go about finding these old traders to learn from? Thanks for your response! I greatly appreciate all the facts. I will go about learning more about ag future trading from the internet. PA
Hello Again. The Traders usually manage their Risk/s with Strategie/s. For example, use Options on Futures Contracts to manage their Risk/s in Futures Contracts that have positions. If you live in USA especially, from time to time the Grain Exchanges there, make some Meetings for things relative to the Agriculture. Also some USA Brokerage Firms make some Meetings from time to time as well. Try to go there or to see the Meetings live from the Internet (if exist that chance) and listen what they are discuss. Approach People there, ask them and listen them. In the Internet try to find Places that exist Comments and Discussions relative to the Agricultural Products that you interest to follow. Read Books relative to the Grains Trade for example. All the above, it will help you to create a Personal Opinion and will help you to create your Trade Strategies. If you do not create a Strategy/ies do not trade. You must have in your Mind, if had happen that yesterday or happen that today or happen that tomorrow, how will affect all these my Strategie/s ? What i will do ? Make DEMO Trades in Brokerage Firms, using your Strategy/ies that you have create. Best Regards, George Kanellopoulos.
I'll definitely open a demo account and try to make as much mistake in there as possible before I open a live account. Priority would be figuring out when and how to use options to manage risk. Thanks! PA
1)---Ags can have much more reliable seasonal tendancies than financial futures for longer-term trading. ---Ags tend to have more commercial participation instead of speculative participation, for the time being. Trends can be more reliable and persistent because of that. ---The pit session for ags tends to be very short compared to financial futures. You can have a "shorter" work day if you want. ---Ag contracts tend to be "smaller". It's a better place for a rookie to start trading. 2) Risks?.....you can lose money, sometimes quickly and hugely. 3) Go to a public library and look for relevant titles and use the internet. 4) You have to choose a firm that you feel comfortable with.
Hi nazzdack, Ag Future trading seems to be a great market to trade in, but the risks seem awfully large. Nonetheless, it is definitely a market I wanted to learn and explore. Do you think doing the Series 3 is a good idea? Thanks! PA
it will at least give you some information about the markets (series 3) but i do not have one nor do i really want one unless work requires me to take it.
1) You really must be involved with pension administration. 2) Series-3? No. Only if you're getting involved with sales.
================== a]Good points NasdaQQQ; especially ''risk''remark. B] Study trends; =========== =============; weather forcasts & money management. ============================= c]That way , if you never make money with pork bellies / swine flu[Chinese gov admitted they changed the name of swine flu-pork is big business in China]; these principles still apply to any market.Wisdom is profitable to direct.