November 26, 2010
Futures Trading 101
By Planet Wealth
pTrading Futures Information/p
pstrongA small about Futures Trading./strong/p
pI recently started a title=Trading Futures href=http://www.investorsmarts.com/investor-topics/Futures-Trading.html target=_selftrading futures/a again. The last time I trading them was in 1999, and things were different then. Back then, futures traded wildly, and were too much for my faint heart. Today futures trading is less volatile, you can trade any commodity or index you want.nbsp; I have chosen the mini Samp;P 500rsquo;s. I use daily charts to trade off of the support or resistance levels.nbsp; You can use technical charting, fundamental analysis, or a combination of both to gauge risk and determine entry and exit points./p
pTo start trading an investor only need $3,000, and have margin requirements on the Samp;P 500 Minirsquo;s of only $400 per contract. This means you could trade about 7 contracts at a time.br /Be cautious though, in the event you loose on a trade you could have to send money in or liquidate to fulfill margin requirements.nbsp; It is a excellent thought to either send in more money in the beginning, or trade under margin requirements, in order to avoid the dreaded margin call./p
pa title=Futures Trading href=http://www.investorsmarts.com/investor-topics/Futures-Trading.html target=_selfFutures trading/a can provide extra income if you are successful, and possibly more if you are excellent at this type of speculation.nbsp; I am plotting on not getting too involved in this, because it can easily consume your free time.nbsp; In other words, keep your day job till you are certain you are able to make some money doing this over a period of time./p
pThere are numerous web sites that offer free trial accounts that simulate real time futures trading.nbsp; I highly recommend studying and using a trial account before attempting to trade real time. It is one thing to trade with fake money and another to trade with real money./p
pIf you loved this article and want to learn more about Investing, please visit InvestorSmarts.com for a variety of a title=Investing Topics href=http://www.investorsmarts.com/page4.html target=_selfInvesting Topics/a, articles and resources./p
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