Quoted from Paul_Skarp

The place for beginners to ask basic questions about commodity futures without feeling embarrassed.

Okay Paul...Buddie here -- am clueless as to Commodity Futures.  I just clicked on your site: http://www.aarontrade.com --

How should one get started if they want to trade the commodity futures markets?

As to software -- I got WizeTrade [it's kind of a security blanket for moi -- tells me which direction some stocks might be going] and also got 4XMadeEasy [haven't traded in foreign exchange -- but have done paper trading].

BTW -- decided to pump Seth's email to yahoo site about you.  

Buddie

Well the anwser to that question does depend on the individual.

One way to start out could be to paper trade some markets. Although, with paper trading you still miss the most crucial element - emotion.

This one item carries much weight so you do want to keep that in mind.

For accounts less thatn 10K I would recommend sticking to the less volatile markets.
Right now they would include - grains/oilseeds, softs, interest rates.

Even though the gold market is getting more volatile I have no issue getting long this market on a slight pullback. I might say the same for silver, but not right now. Wait for a 1-3 day washout of the weak longs.

For example, you don't want to be trading unleaded gas unless you are better capitalized.

One trade that I really like right now is long-term calendar spreads in sugar options. This trade is suitable if any account over 4k. This would be an example of potential trades to look for with an account under 10K. If someone has a larger account than that they you will have more doors open to you.

At present, the long-term options are cheap compared to the near term. For example, you can initate a bull call spread in the May 2007 call options (a fully 360 days left till expiration):

Long 1 - 20 cent call
Short 1 - 27 cent call

This spread

This spread in itself would cost you about $1000. Profit Potential is almost $8000. Thats a risk to reward ratio of 8 to 1. However, keep in mind that there is MAJOR support at the 15.50 to 16.50 area. If you sell sugar put with only a month till expiration you could possible pay for about half the spread if they expire worthless.

Keep in mind that most markets don't typically V top or Bottom. More ofter that not they form some type of M top of triple top of some other viable chart pattern. If sugar is at a long-term top here, I don't believe that is that case, that market would be more prone to head down to this level than bounce up chop around for a bit then begin the first leg of a new downtrend. At that point those puts will expire worthless.

Remeber they only have 1 month or so till expiration. The options you are buying have a year left.

For more on why, technically anyway, I believe sugar is heading much higher from here,about 17. 50 as of today please see my following 2 recent blog posts.

http://www.aarontrade.com/commodityfuturestrading/?p=20
http://www.aarontrade.com/commodityfuturestrading/?p=21

Also, keep in mind the higher oil goes the more yelling there will be for ethanol usage. While many may be aware that corn comes into play in making ethanol so does sugar. Well at least certain kinds of it.

Quoted from Paul_Skarp

Well the anwser to that question does depend on the individual.

One way to start out could be to paper trade some markets. Although, with paper trading you still miss the most crucial element - emotion.

This one item carries much weight so you do want to keep that in mind.

For accounts less thatn 10K I would recommend sticking to the less volatile markets.
Right now they would include - grains/oilseeds, softs, interest rates.

Even though the gold market is getting more volatile I have no issue getting long this market on a slight pullback. I might say the same for silver, but not right now. Wait for a 1-3 day washout of the weak longs.

For example, you don't want to be trading unleaded gas unless you are better capitalized.

One trade that I really like right now is long-term calendar spreads in sugar options. This trade is suitable if any account over 4k. This would be an example of potential trades to look for with an account under 10K. If someone has a larger account than that they you will have more doors open to you.

At present, the long-term options are cheap compared to the near term. For example, you can initate a bull call spread in the May 2007 call options (a fully 360 days left till expiration):

Long 1 - 20 cent call
Short 1 - 27 cent call

This spread

This spread in itself would cost you about $1000. Profit Potential is almost $8000. Thats a risk to reward ratio of 8 to 1. However, keep in mind that there is MAJOR support at the 15.50 to 16.50 area. If you sell sugar put with only a month till expiration you could possible pay for about half the spread if they expire worthless.

Keep in mind that most markets don't typically V top or Bottom. More ofter that not they form some type of M top of triple top of some other viable chart pattern. If sugar is at a long-term top here, I don't believe that is that case, that market would be more prone to head down to this level than bounce up chop around for a bit then begin the first leg of a new downtrend. At that point those puts will expire worthless.

Remeber they only have 1 month or so till expiration. The options you are buying have a year left.

For more on why, technically anyway, I believe sugar is heading much higher from here,about 17. 50 as of today please see my following 2 recent blog posts.

http://www.aarontrade.com/commodityfuturestrading/?p=20
http://www.aarontrade.com/commodityfuturestrading/?p=21

Also, keep in mind the higher oil goes the more yelling there will be for ethanol usage. While many may be aware that corn comes into play in making ethanol so does sugar. Well at least certain kinds of it.

WOW...Paul?? Am overwhelmed with all this info. Will take me awhile to figure a lot of this since I've never played commodity futures..BUT I like what I see/hear.   

Thanks!!!! Will also spread this post of yours round the internet.

Got to go -- take my 4legged friend for his walk.  

Buddie

whats the easiest way to start trading oil futures and gas futures?

Heard just now on ROBTv [Report On Business Television] http://www.robtv.com/ [Robbing us blind   ] -- that COFFEE -- July futures is going higher since the analysts predict COLD weather in Brazil for the month of July [their winter and our summer]. Coffee right now is $1/lb or $110/bag -- and going higher. Also Kenya demands higher prices cause they have had better quality beans.

Buddie

Vince - whats the easiest way to start trading oil futures and gas futures?


Its just a matter of opening and funding a commodity futures trading account.

who are the top brokers for commodities and whats the usual mininium $$ to open?

Vince,

Well I can see why you are interested in Gas/Oil with that truck doing a burnout as your icon, I can only imagine how many gallons you go through

As far as who is the best?

Well I am a little biased one again. But you have to look at more than commision rates when decideing who to do biz with.

I have been trading for about 7 years and at first I wanted to trade at the lowest per turn and lowest account mins for my account. I quickly learned you get what you pay for. All of these experience led to the realization that you need more than a good deal to me a good trader.

That is what we really strive for at Aaron Trading. We went with ADM Finacial services to allow or clients the best floor ops in the biz. But we also realized that we needed to provide that little extra in regards to knowing the customer.

I really don't think you will find a partner of a Firm posting on begginer forums. That is the difference at Aaron Trading.

As far is the min to trade crude. You really shouldn't look at it like that. I good amount would be 25k. Most firms would say sure you can trade with 10k but in my opinion it just isnt enough to trade crude the right way. In futures trading you take losses all day. You just have to know how to manage your risk and pile on your winning trades.

Crude is a crazy market mostly ran on fear. You need enough so you can ride out the ups and downs.

We wrote a nice article on Crude in our blog here:
http://aarontrade.com/commodityfuturestrading/

On March 30 we advised to go long crude, and the trade made about 10k a lot. So please check out our blog because it really helps you get a grasp of the crude market.

Also if you have any question please feel free to call myself or Paul at 1-866-455-3633 or visit Aaron Trading on the web at http://www.aarontrade.com

Thanks Much,

George

Sorry about the typo's I didn'y proofread.

George

Now that I am making a few bucks I'd love to now how much I should spend on certain stocks. A diversified protfolio would help of course but for a beginner, what are the right steps. When I say spend, I mean gamble, seeing how that is all stocks are. Going of course on historical data but not everything is bullet proof. So, Just wondering if I could start with 1k or 5k even and really get something going.

whatever happened to this guy? LOL.

I dont know... Anyone interested in taking over for him would be strongly considered

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