Noob question about futures

Discussion in 'Financial Futures' started by 3dawgs2533, Oct 13, 2019.

  1. Does the trading of a future operate the same as stock? i.e. I know what the contract price is, I know how much each tick is worth, and can therefore calculate my stop loss and profit point. After that, it's do my research and hope I've made a good trade, yes?
    #11     Oct 13, 2019
    murray t turtle likes this.
  2. %% In many ways, yes;
    except stocks/ETFs pay dividends . Leverage wins + losses more, the latter is why so many more invest trade stocks/ETFs. Good question - wisdom is profitable to direct. [edit note I did not paste this pic @ bottom, nor do I approve of it]
    #12     Oct 13, 2019
  3. Overnight


    This statement is false, in the context of the OP. Please do not feed the OP misleading information.
    #13     Oct 13, 2019
    Bum likes this.
  4. Bum


    Each market is a bit different with regards to actively traded months.
    Oil has every month actively traded.
    Corn is Mar, May, Jul, Sep, Dec.
    #14     Oct 13, 2019
    Overnight likes this.
  5. Thanks, all. Appreciate the feedback.
    #15     Oct 13, 2019
  6. volpri


    #16     Oct 14, 2019
    murray t turtle likes this.
  7. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    lots of good advise I read above....
    start slow
    keep journal
    have a game plan when it comes to money management
    be patient
    be disciplined....
    be realistic
    #17     Oct 14, 2019
    murray t turtle and WhiteBox08 like this.
  8. bd10


    Be sure to read the contract specification back to front. It tells you the tick size, the margin requirements (which helps you gauge the USD risk 1 lot represents), whether the contract settles in cash or delivery. Delivery is not allowed for retail traders so you have to get out before first notice day. From a risk management / position size point of view, I suggest you compare similar contracts. The CME have various mini and micro sized contracts. Their contract sizes are different and so are the margin requirements. Look at daily volume statistics and open interest numbers, they are published. Don't get involved with illiquid contracts. Also, spend a bit of time with the contract to observe price movements, the bid and ask spread, the lot size on either side to get a feel for price dynamic at various times throughout the day and week.
    Last edited: Oct 21, 2019
    #18     Oct 21, 2019
    murray t turtle likes this.
  9. At the moment, I'm swing-trading with paper money. Eventually I hope to have enough capital to have a go at it, but for now it's all sim for me. Sometimes I'm in and out of a position same day, but usually it's the next day or two. I study volume and price action to pick my entries and exits, and manage my risk so that if I get stopped out it's not more than about 5% of my fake account. It's a discipline that I'm trying to stick with so I don't blow my account to pieces too soon. I started out with $10k a few months ago, and despite a bad loss a couple of days ago, I'm up to $12.2k now...but I must admit I have the New Zealand dollar futures to thank for that, mostly. (Couldn't help it, it was at a historical low, I figured it would bounce back, so I got in and out a few times :)

    Thanks for everything, it all helps!
    #19     Oct 21, 2019
    murray t turtle likes this.
  10. Overnight


    Just prepare yourself for very wide swings in price.

    Risking 5% of your account per swing in this volatility environment is not advisable in futures.

    2 years ago? No sweat. Today? Nuh uh. You will not be safe until Trump and Brexit are in the rear-view mirror.

    Use caution.

    Swing trading futures these days is...

    Trust me, I know. :-\
    #20     Oct 21, 2019