Your Questions About Paper Trading Futures

Nancy asks…

Future Traders suggetions please?

If you are really experienced Futures market ( Commodities) trader. Please Give your suggestions for future contracts trading?

1.What Kind of technical indicators you use?

2.How you develop the stretegy for future trading?

3.Suggestions.

Thank you

John answers:

I day trade stock index futures and use primarily overbought/oversold indicators such as stocastics, moving averages and bollinger bands. I tend to be more discretionary than most traders, but it works for me. Market bottoms are easier to guess than tops so i go long more often than i short.

The most important thing is to get a strategy that works for you. Then you need to paper trade until you are convinced that your strategies are profitable long term. If you have a couple of bad trades then stop for a while. You want to be consistent and a good strategy will do that for you.

Also be sure you can accurately judge when your trade is running against you and get out as soon as that starts to happen. You want to let the profits run and take losses quickly. Getting out too soon is bad also beacause it means you will take a loss when you should have a winner.

Last tip: Make sure you can control your emotions and be sure to have enough money to play the game.

Robert asks…

I want to know about future&option trading in stock mkt?

in future trading we can sell or bye the stocks at any time

John answers:

In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality (which, in many cases, may be such non-traditional “commodities” as foreign currencies, commercial or government paper [e.g., bonds], or “baskets” of corporate equity [“stock indices”] or other financial instruments) at a certain date in the future, at a price (the futures price) determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract. The future date is called the delivery date or final settlement date. The official price of the futures contract at the end of a day’s trading session on the exchange is called the settlement price for that day of business on the exchange.
A futures contract gives the holder the obligation to make or take delivery under the terms of the contract, whereas an option grants the buyer the right, but not the obligation, to establish a position previously held by the seller of the option. In other words, the owner of an options contract may exercise the contract, but both parties of a “futures contract” must fulfill the contract on the settlement date. The seller delivers the underlying asset to the buyer, or, if it is a cash-settled futures contract, then cash is transferred from the futures trader who sustained a loss to the one who made a profit. To exit the commitment prior to the settlement date, the holder of a futures position has to offset his/her position by either selling a long position or buying back (covering) a short position, effectively closing out the futures position and its contract obligations.
Futures contracts, or simply futures, (but not future or future contract) are exchange traded derivatives. The exchange’s clearinghouse acts as counterparty on all contracts, sets margin requirements, and crucially also provides a mechanism for settlement.

George asks…

Trading platform with everything?

I would like to know about a trading platform that has all assets such as stocks, indices (even foreign), commodities, and forex? all indicators for their interactive charts and at least a 5, 10, 15 minute time frames. give me some free ones if you can. I like freestockcharts.com but they don’t have every kind of asset. also, how much is Think or Swim, i heard they were pretty good.
Also, where can I find charts that have 15 second time frames?

John answers:

ThinkOrSwim’s platform is free, with an account. There is a “paper trade” version for non accounts.
Tradestation has a good platform. There is a charge of $100 per month if you don’t meet minimum trading targets.

I use as both for trading stocks.
I trade options & futures on the ThinkOrSwim platform also. Forex on ThinkOrSwim also (rarely).

Charts are in all time frames (1 minute to 4 hours plus Daily, Weekly & monthly). You can also change to tick charts.

Donna asks…

Can anybody explain to me how u trade Nifty?

John answers:

Hi,
You can not do delivery based stock trading (cash trading) with nifty as you normally do with company stocks as there is nothing to deliver to you (Nifty is virtual index).

So you have to go for F&O (Future and Option) trading. Here you can trade nifty derivatives (i.e. Nifty future, Nifty Call Option & Nifty Put Option).

If you do not have much experience you can just follow (not blindly but do paper trading initially) the free option / future trading tips available on lot of websites & blogs.

Try free option & future trading tips on
http://stockmarketexpert.googlepages.com/nseoptions

Best of luck.

Sharon asks…

wheres a good place to learn about commodities trading?

wheres a good place to learn about commodities trading any books websites or tutorials would all be welcome thanks
or maybe even a course as long as it’s not to expensive

John answers:

Start with a couple beginners books like _Idiots Guide to Trading Commodities_ and _Dummies Guide to Technical Analysis_ or something equivalent (futures trading is usually highly technical in nature).

If you’re working with a futures broker like PFG Best or DeCarley Trading then they’ll have many resources for you to use, too.

Paper Trade before you live trade and live trade small until you get very familiar with the marketplace.

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