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Wednesday, June 4, 2008

Futures Series - The Players; "Commericals"

Challenge Accounts:

Investing Account Balance:
$247.64
Stock / Futures Trading Balance: $735.61
Online Savings Balance: $27.22

Personal Trading Thoughts: Well that just sucked. I had a profitable day trade with ESM8 a couple days back. I thought I'd look for another short position. So I'm sitting watching the open. I usually don't trade the open, I just watch it, and then look for an entrance signal. So down we head, and then BAM - one huge tick up. It was just ugly all day. Couldn't find an entrance anywhere. Then what happens? The market moves in the direction I thought it would - but I don't have a clear entrance. No losses. But it just sucks when the market heads the direction you think it will - but you can't find your entrance. As for today? No trading. The house is going to be a bit mad, as all of my windows are getting replaced.

Personal Investing Thoughts: Just watching and waiting. Summer is here, and the market will be weaker. Many years, I turn my DRIP off in the summer, and receive straight cash. But not this summer. The market is offering bargain prices on many stocks, so my DRIP will remain on, so that I can accumulate more shares at better prices to DCA ...


We've been discussing commodity futures in recent blog entries. We learned what a commodity is. We learned that commodities are traded in contracts, and those contracts have specific sizes, and contract months. We talked about leverage and lock-limits. We started talking a bit about the nature of the Commodity Futures markets and that they are zero sum. We've started to discuss some of the "Players" in this zero sum game, with the Small Speculators. We talked then about the Large Funds.

Let's discuss the next group ... the Commercials ...



In the next entry, we'll discuss how to use all of this information, regarding the players ...

* * *

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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