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Will You Add? - Trading Commodity Futures Using Support and Resistance - Paper Trading
The following article is one of a series of articles which focus on Affiliate, Article and Internet Marketing. All of the articles are based on real experiences and research done over twenty years as a personal and business coach. They are also written in response to questions which I have been asked as well as address common challenges that people have with affiliate marketing, article marketing, internet marketing or running an online business in general. I sincerely hope that you find the following information of value. One idea, one tip, one clue can make all the difference.In ecology, a niche refers to the place or position occupied by an organism or a population within an ecological community called the ecosystem. It is the term which defines the role the organism or the population plays in the general scheme of things. The niche an organism or a population holds is the one responsible for dictating the ability of the species to survive. It is the one which spells wh
But don’t stop here, this is the time to practice and refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.
Now that you have a paper account and a mix of markets to trade you need to search the markets to find trades to make. Once you have found a trade you li
Web designing entails use of a whole gamut of tools - for text, graphics, menus, animation, navigation design, color selection, font selection, authoring, programming and ecommerce development. The use of technologically advanced and effective tools ensure that the website attracts target audience and lists high in the search engines and directories.Different tools are used in different aspects of web designing. Text links use HTML meta tags, graphic links use graphics along with navigation buttons, drop down menus use JavaScript and CGI among others, and special effects need tools such as Macromedia Flash and Adobe Photoshop. By far, Macromedia and Adobe Photoshop are the most commonly used tools in web design. Certain graphic designers also use Macromedia DreamWeaver. Flash helps in animation that if used well, can be an attractive feature in a website. Visual Basic is the most common language for scripting and SQL with other database engines are used for database managemen
Question:
I cannot trade with "real money" as yet; however, how do I go about setting up a paper trade account?
Answer:
You can paper trade various ways and it really does not require that you have anything more specialized than a notebook to track your trades and access to charts.
Begin by funding your paper trading account with the amount of money you think you will really begin with, whether it is $2000 or $20,000. I would suggest that you begin with no less than $5000 and $10,000 is even better.
Next you need to decide on which markets you are going to trade. The more money you have in your account, the more markets will be available to you. If you are trading with a $5000 account there is no point in becoming familiar with a market like Crude Oil that has a margin of $3000 per contract!
Assuming that you are a smaller trader, you will be most interested in the lower margin markets like the grains, some of the meats, maybe a metal and a currency or two. I would suggest you limit your scope to about 6 - 8 markets, as these will be enough to track on a daily basis.
Even real money traders rarely follow more than 8 markets...it just becomes too cumbersome, as I'm sure you will find when you've got more than one paper trade going at a time.
If you don't know which markets to choose from, maybe I could make a couple of suggestions:
* Corn, or wheat - these are good markets for traders of all levels, but especially the beginner. The margin is not too high and the markets normally act predictably and trend well. Corn and wheat have a tendency to move together (but not always), so watching both can be redundant.
* Cocoa - a good market to make money in as a small move can add up to good profits. Also can be a good market to lose money in for the same reason. I don't mind cocoa, although I know people who have sworn it off. This is the time to find out if it is for you...when it doesn't cost you real money.
* Sugar – used to be a good market because it is easy to get in with minimal risk; however the abundance of support and resistance can make it confusing to new traders. Lately the market has lacked direction which only adds to the confusion. Still it is low margin and relatively low risk market to trade.
* Live Cattle - a decent meat market. Some new traders avoid the meats entirely because of their ability to make huge ranges. Cattle is the "safest" of the meat markets.
* Cotton - can be a good market, but is capable of making large ranges. I used to avoid cotton like the plague, but have become fonder of it in recent years.
* Soybeans - the Pork Bellies of the Grain complex. If soybeans are too volatile for you consider trading one of the bean cousins, like soybean oil, or soybean meal. They tend to mirror soybeans, but are generally less margin and less volatile.
* Silver - I like the metals; however gold can be a little rich for the small trader. Silver mirrors gold - the poor man's gold. Some people like copper, but I consider it too thin and margins too high for small traders.
* Canadian Dollar/Australian Dollar - two of the more reasonable currency markets. The margins are lower, but there is excellent money making potential. Other markets like Swiss Franc, British Pound, and Japanese Yen are good markets too but require much more margin and risk. All the currencies have a tendency to move in the same direction anyway (opposite the US Dollar) so it doesn't really matter.
But don’t stop here, this is the time to practice and refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.
Now that you have a paper account and a mix of markets to trade you need to search the markets to find trades to make. Once you have found a trade you lik
Maybe you have decided that you deserve more money than you are currently being paid or maybe you have decided that not having a job and not being paid anything must come to an end. You may be looking for a new position in the company you are in or you may be looking to jump companies and possibly even industries all together. Whatever you situation is, you must face the inevitable…The Job Interview.Why so many people have given this process a negative connotation, is because they do not know the proper steps to take to interview like a champion. Being a champion interviewer like any other skill takes practice. When you were a kid and first learned how to ride a bike, chances are you fell off a few times before you were burning rubber on your first two wheeler. The same goes for interviewing like a champion, your first interview ever may have a few flaws, but after going on a couple of interviews and reading the remainder of this article, you will be an interviewing powe
Assuming that you are a smaller trader, you will be most interested in the lower margin markets like the grains, some of the meats, maybe a metal and a currency or two. I would suggest you limit your scope to about 6 - 8 markets, as these will be enough to track on a daily basis.
Even real money traders rarely follow more than 8 markets...it just becomes too cumbersome, as I'm sure you will find when you've got more than one paper trade going at a time.
If you don't know which markets to choose from, maybe I could make a couple of suggestions:
* Corn, or wheat - these are good markets for traders of all levels, but especially the beginner. The margin is not too high and the markets normally act predictably and trend well. Corn and wheat have a tendency to move together (but not always), so watching both can be redundant.
* Cocoa - a good market to make money in as a small move can add up to good profits. Also can be a good market to lose money in for the same reason. I don't mind cocoa, although I know people who have sworn it off. This is the time to find out if it is for you...when it doesn't cost you real money.
* Sugar – used to be a good market because it is easy to get in with minimal risk; however the abundance of support and resistance can make it confusing to new traders. Lately the market has lacked direction which only adds to the confusion. Still it is low margin and relatively low risk market to trade.
* Live Cattle - a decent meat market. Some new traders avoid the meats entirely because of their ability to make huge ranges. Cattle is the "safest" of the meat markets.
* Cotton - can be a good market, but is capable of making large ranges. I used to avoid cotton like the plague, but have become fonder of it in recent years.
* Soybeans - the Pork Bellies of the Grain complex. If soybeans are too volatile for you consider trading one of the bean cousins, like soybean oil, or soybean meal. They tend to mirror soybeans, but are generally less margin and less volatile.
* Silver - I like the metals; however gold can be a little rich for the small trader. Silver mirrors gold - the poor man's gold. Some people like copper, but I consider it too thin and margins too high for small traders.
* Canadian Dollar/Australian Dollar - two of the more reasonable currency markets. The margins are lower, but there is excellent money making potential. Other markets like Swiss Franc, British Pound, and Japanese Yen are good markets too but require much more margin and risk. All the currencies have a tendency to move in the same direction anyway (opposite the US Dollar) so it doesn't really matter.
But don’t stop here, this is the time to practice and refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.
Now that you have a paper account and a mix of markets to trade you need to search the markets to find trades to make. Once you have found a trade you li
If you want to get a prospective employer’s attention, you need to write a resume with the Four R’s of Resume Writing in mind. These tips will help you create a resume that conveys the appropriate information to an employer in a way that shows confidence and enthusiasm.Remember that you are competing against a lot of other job candidates, so take the time to create an excellent resume and you will already have an easier time of landing that perfect job.The Four R’s of Resume Writing are: Relate – Relate your skills in your resume to the position you are seeking. This is often called targeting your resume. An employer is less concerned about your job title and more concerned about what you did while you were on the job.Research – Research the company so that you can relate your skills in a meaningful way. If the company has been headed in one direction and is undergoing a shift in marketing, management or mission, then you need to be aware
* Cocoa - a good market to make money in as a small move can add up to good profits. Also can be a good market to lose money in for the same reason. I don't mind cocoa, although I know people who have sworn it off. This is the time to find out if it is for you...when it doesn't cost you real money.
* Sugar – used to be a good market because it is easy to get in with minimal risk; however the abundance of support and resistance can make it confusing to new traders. Lately the market has lacked direction which only adds to the confusion. Still it is low margin and relatively low risk market to trade.
* Live Cattle - a decent meat market. Some new traders avoid the meats entirely because of their ability to make huge ranges. Cattle is the "safest" of the meat markets.
* Cotton - can be a good market, but is capable of making large ranges. I used to avoid cotton like the plague, but have become fonder of it in recent years.
* Soybeans - the Pork Bellies of the Grain complex. If soybeans are too volatile for you consider trading one of the bean cousins, like soybean oil, or soybean meal. They tend to mirror soybeans, but are generally less margin and less volatile.
* Silver - I like the metals; however gold can be a little rich for the small trader. Silver mirrors gold - the poor man's gold. Some people like copper, but I consider it too thin and margins too high for small traders.
* Canadian Dollar/Australian Dollar - two of the more reasonable currency markets. The margins are lower, but there is excellent money making potential. Other markets like Swiss Franc, British Pound, and Japanese Yen are good markets too but require much more margin and risk. All the currencies have a tendency to move in the same direction anyway (opposite the US Dollar) so it doesn't really matter.
But don’t stop here, this is the time to practice and refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.
Now that you have a paper account and a mix of markets to trade you need to search the markets to find trades to make. Once you have found a trade you li
I. Ten steps to protect yourself from fraudulent (forgery) autographs online.1. MYTH #1. Doesn’t Good Positive Feedback suggest the autograph is authentic? The answer – NO. Many online forgers have 100% positive feedback. WHY? They give great customer service. They’re essentially criminals selling forged autographs, however, they send items promptly, answer questions, and refund if the buyer discovers it is not authentic. Yet, these guys know a VERY SMALL FRACTION of buyers will ever get their autographs authenticated as these forgers prey on the inexperience of their victims. These inexperienced buyers do not know what they are buying, never mind knowing where to go to have it authenticated.2. A pattern. Always, always check other items for sale by this seller. Many of these forgers have a pattern. For example, no one can sell an authentic Judy Garland autograph for $50, the market won’t allow it. And, the market is made of experienced collectors. When an authent
* Cotton - can be a good market, but is capable of making large ranges. I used to avoid cotton like the plague, but have become fonder of it in recent years.
* Soybeans - the Pork Bellies of the Grain complex. If soybeans are too volatile for you consider trading one of the bean cousins, like soybean oil, or soybean meal. They tend to mirror soybeans, but are generally less margin and less volatile.
* Silver - I like the metals; however gold can be a little rich for the small trader. Silver mirrors gold - the poor man's gold. Some people like copper, but I consider it too thin and margins too high for small traders.
* Canadian Dollar/Australian Dollar - two of the more reasonable currency markets. The margins are lower, but there is excellent money making potential. Other markets like Swiss Franc, British Pound, and Japanese Yen are good markets too but require much more margin and risk. All the currencies have a tendency to move in the same direction anyway (opposite the US Dollar) so it doesn't really matter.
But don’t stop here, this is the time to practice and refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.
Now that you have a paper account and a mix of markets to trade you need to search the markets to find trades to make. Once you have found a trade you li
When you're facing a mountain of credit card debt, the stress can be overwhelming at times. Collection calls, daily harassment, rude bill collectors, and nasty letters all add to an already intense situation. Consumers facing this kind of pressure naturally seek out the services of professional debt companies. But the search for reliable assistance can actually add to the stress! For example, just type in "debt help" on any search engine and you'll see page after page of results. There are literally thousands of debt companies out there. How to choose? How to tell the scams and schemes from the legitimate services? Should you consult with a non-profit credit counselor? One company tells you they can cut your bills in half. Another outfit says you really don't owe the banks any money at all and they can wipe the debt away for you. Who should you believe? Where should you turn?Consumers face a bewildering range of choices when seeking debt assistance. As with any service, when
But don’t stop here, this is the time to practice and refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.
Now that you have a paper account and a mix of markets to trade you need to search the markets to find trades to make. Once you have found a trade you like, write down your entry, your exit and your profit target - exactly.
If you are dealing with a broker, you can call and ask them if your paper order had been filled on a particular day. Alternatively you can just look at the charts and figure it out for yourself.
Sometimes you will need to see an intraday chart to know exactly when you got your fill. Barcharts.com offer free intraday charts. Just follow the commodity chart link and then click custom charts to alter the time frame displayed to a 5 or 10 minute interval.
Track your trades day by day keeping a journal of your profits and losses. A simple way to “journal” your trades is to put them on 3x5 index cards – one card per trade. Write down you reasons for taking the trade as well as exact entry and exits. Make sure to note what you did right and what you would do differently the next time. Allow an extra two ticks on your fills and exits as this will simulate slippage. Brokerage fees are usually $40 round turn per contract.
See how well you can do but be honest. Cheating here will not help you in the future. I'm sure you've heard it before, but nothing changes when you trade with real money. If you can't do it on paper, you won't make it for real. Trust me. I've been there.
If you don't already have it, you might want to consider using Gecko's Track 'n Trade Pro. As the name suggests the software not only provides charts but also "tracks your trades". You fund a fictional account, place your orders and the software will automatically update your position day by day.
It really is phenomenal software and if you are halfway serious about trading you should check it out. It is a legitimate tax deduction too. ;-) You can get a free 30 day trial by following this link: http://www.trackntrade.com/demo/?abbr=SENFT
There is also paper trading software out there and on the internet which is supposed to simulate trading; however in my opinion it is not realistic for most small traders.
Some of the simulators only allow you to trade the e-mini and others start you out with a $50,000 account. This is great if you want to trade the e-mini, or if you are trading with a $50,000 account, but this is not the case for most traders.
Anyway, that's paper trading in a nutshell. I hope it helps a little. Please do not hesitate to write back if you have more questions, of if you need me to elaborate on something.
Best of luck,
- Erich
erich@supportandresistance.com
PS. Don't skip this part of your education. Most traders hurry through paper trading only to get killed in the markets. Don't make this mistake.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve
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