Help please: Futures

[pharaoh]

Hi all

What do you guys think of buying futures contracts?

I went to a seminar today, at the Masonic club in sydney, and the guy presenting on futures was really compelling.

Oil, for example, seems a bit of a no brainer at the moment, with global uncertainty on supply etc, and China's thirst. Is that a naive pov?

Another scenario he painted, was buying into say, corn.

Each Nov I think it was, crops are being planted so price is high, then rises til harvest mid year, and price drops back down as supply balloons out again.

He said buy into the same period each year on the rise.

He indicated it was relatively simple to do just one trade on this commodity each year, at the same time, then spread this philosophy across other markets, for almost guaranteed success. I know there's no such thing, but there seemed to be merit in it.

Any thoughts?

I have never bought futures, but am starting to learn.
Who do I buy them through - I use Commsec now.
What do you have to be wary of, and are there any almost sure things.....

Thanks!

 

[nizar]

see oil thread

i have replied to u there and wayne has some good advice as well

 

[wayneL]

Hi all

What do you guys think of buying futures contracts?

I went to a seminar today, at the Masonic club in sydney, and the guy presenting on futures was really compelling.

Oil, for example, seems a bit of a no brainer at the moment, with global uncertainty on supply etc, and China's thirst. Is that a naive pov?

Another scenario he painted, was buying into say, corn.

Each Nov I think it was, crops are being planted so price is high, then rises til harvest mid year, and price drops back down as supply balloons out again.

He said buy into the same period each year on the rise.

He indicated it was relatively simple to do just one trade on this commodity each year, at the same time, then spread this philosophy across other markets, for almost guaranteed success. I know there's no such thing, but there seemed to be merit in it.

Any thoughts?

I have never bought futures, but am starting to learn.
Who do I buy them through - I use Commsec now.
What do you have to be wary of, and are there any almost sure things.....

Thanks!

Pharoah

Futures are fantastic, but there is a lot to learn. Go to the library and get some books.

Nick Radge used to have a futures course as well, that might still be available, check his site.

I like futures a lot and they're worth doing, but make sure you know what you are doing with risk/moneymanagement etc.

With the leverage, and if silly enough, you can go well past zero. They will come for the rest of your money, your house, cars, even your children, if you blow up bad enough.

With proper money management however the risks are no worse than shares.

Good luck

 

[ducati916]

enzo

You might want to explain to him the limit up/limit down/lockdown feature of the futures market.

Novices should never, ever, never, ever start trading in the futures markets you are begging to blow up.

Start trading equities, and if you have apptitude, you can easily switch over.

jog on
d998