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Wednesday, May 28, 2008

Futures Series - Nature of the Commodity Futures Markets

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.15

Personal Trading Thoughts: Nothing on the horizon today. Could change at a moments notice. At the moment, I'm trying to get my house shaped up because we're having new windows installed. I'm not kidding guys, the windows we have in this house are over 80 years old. All warped where the glass has set. So we're finally getting new windows put in, but this means that I have to move everything away from the windows so that the guys who install the new ones have room to work. Seems like we're never done around here. After that, the dining room gets painted, and after that, we begin on the entertainment room (my old office)

Personal Investing Thoughts: Yesterday was sideways. My own personal portfolio is taking a bit of a breather. But since I'm a DRIP / Dividend investor, this is actually great news. This means I'll DRIP / DCA my positions at better prices.

Let's discuss the very nature of commodity future markets, and how they differ from other markets.

Tomorrow, I'll finish up with a couple of other aspects regarding the futures markets themselves. After that, is when I'll begin on the "Players" in the Futures markets.

* * *

Investing Account Balance: $247.27
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.15

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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