Futures Trading Made Simple - Lesson 1 - Basic Buy/Sell Strategy

[jgrub]

Sorry, I can't give advice to anyone, and you probably should take advice from strangers. However, I can say that if the Stop Loss is valid for the day, then you should check each day and put in a new Stop Loss if the previous one didn't kick in, since it won't cost you anything until the Stop Loss is executed. If prices move in your favor, then you'll want to change the Stop Loss anyway, right? So maybe it's just as well it's a Day order. Just keep on top of it!

[gengarjetty]

my broker only has the stop loss valid for the day in which we place the stop. should I change it?

also, is it advisable to only use risk capital?

[MalibuLimo]

What's your opinion on Physical Precious Metals? & over the next 2 to 4 years, What's the best bet? How would a beginner make money trading ETF? Stick to Energy? Oil?

[jgrub]

@MalibuLimo I don't give advice or opinion, as I don't want to be perceived as an authority, which I'm not. But I'll say this much: Each group of commodities has internal variations so that you can trade in a perfectly health or predictable market but get nailed anyway due to speculators, arbitrageurs and poorly written and inadequately regulated computer programs. Also, you never know when the Mississippi River will overflow its banks or another war will break out (or end) in the Middle East.

[Allenvik]

Thanks for the video ! I am studing it !

[jgrub]

@El7IncA... yeah, most traders lose their shirts. It's really a commitment of time and money. Hopefully, LimitUpOnline helps by letting you practice for as long as you want.

[El7IncA]

man that is hard...

[jgrub]

It's a good question that I hope no one will have to ask based on a real situation. Futures trading brokers do not take delivery of commodities. And you shouldn't ever hold a contract long enough to take delivery unless you happen to deal in the underlying product (like a cereal manufacturer or a gold wholesaler). You role as a trader is to regulate prices based on supply and demand,and hopefully profit by that role.

[BFocused9]

Thanks for a great tutorial.

What happens if in the example you do not sell your contract and end up paying the cash price of 16,787.50? Do you have to take physical delivery of the corn or can brokers hold this for you as with stocks to sell at a future date?

[jgrub]

Not only can you use a Stop Loss, but it's a necessity. When you place your trade, you should immediately place a Stop Loss to protect yourself. I'm pretty sure that most online trading systems incorporate the Stop Loss into a single transaction with the initial trade. If you're speaking to an agent on the phone, you do it on the same phone call. After you tell them what you want, say "IF FILLED..." then give them the Stop Loss transaction.

[sniperz77]

Great video! Can one use Stop Loss in trading futures?

[OutlanderWarrior]

I see there are no comments. I just wanted to thank you for this free tutorial. I appreciate your effort and the information.

God bless and Happy New Year.

[jgrub]

You're quite welcome. Another lesson is in the works. Just need some time to put it together.

Your comments are appreciated!