can someone recommend a good broker to swingtrade/position trade commodities? And what about limit moves can you really avoid disaster with conversions?
JayS, I'm actually glad to see retail FX trading in the US finally come under regulatory jurisdiction. It gives it a measure of respectability. Previously, retail FX traders were taking a blind risk that the company they were trading through would be there tomorrow, now they can trade through a regulated FCM that has risk control, a vested interest in staying in business, and regulatory oversight. As I understand it, they immediately lay off any risk if it moves more than a couple of ticks against them. In answer to your question, I wouldn't have a problem trading FX on a retail level with an FCM.
Kicking, If you like, I can send you a list of 10 brokers besides myself that I would trust to handle a friend or family member's account. As to your second question, limit moves are what they are, and if you trade futures, they are a risk. The only way to completely avoid the risk would be with a long option strategy, but that carries a different type of risk (decaying asset).
I want to apologize,I gave the impression that I have never traded soybeans, which in fact is false. It was the first time I ever replied to a forum such as this, and I ass umed that there would be a lot of dind/dong responses. I WAS WRONG. I see this is a sincere bunch doing what they have a passion for, trying to improve. I will no lnger waste your time with falsehoods
I trade with 5perside.com for ag. futures. They are actually Man financial, which is a pretty big name in the future markets. There plateform is really good for position trading and there margins are in step with everyone else. There is no account min, just have to make margin. liquidly is better then a lot of stocks I've traded in the day sessions, and not to bad in the evening session for the more popular commodities. Spreads are usually and a quarter to a half cent even in the night session. I too am just a newbie, but this is what I have found. Hope this helps. Kyle
Excellent advice Traders Press for new books Amazon.com for used. AAA its generally not a good idea to send people to some one with a heavy, very heavy conflict of interest. If you want to keep working the rest of your life. Get your advice from Brokers. If you want to trade for a living buy books. Boring! :eek: Just look at how many financially independent traders they turn out. You have to stay awake to play this game. Textbooks on futures put people to sleep. Start with Reminiscences. Do not depend on brokers to do anything but place your trades and report back to you. What's a few hogs among friends. They were probably called live hogs when you last had an interest. What is the difference between live hogs and lean hogs? Live hog prices are the traditional terms used when talking about the actual hog markets. Lean hog prices refer to the lean hog contract that trades at the Chicago Mercantile Exchange. The change began around 1997 the contract is based on 40,000 pounds of pork which is equivalent to the meat from 220 hogs.
Arizona: 'The futures game' is a must read if you are new to commodities trading. The book doesnot have any trading strategies but the book explains a lot about commodities. There is a chapter on money management that I found to be very helpful. From my personal observations I've noticed that the technical indicators work better in commodities than with stocks. You can always trade the mini sized corn and soybeans if you are new to this market but the bid/ask spread is wider than in regular full sized contract. Soybean had a nice run up but it is hard to say how much higher it could go. I beleive that we saw the top a few days back and will consolidate or reverse at this point. I'm still bullish on corn but I'm looking for a better entry point at/around 246. Let's keep this thread active.