still in the paper trading and study mode but ive been using this weekend to put together my trading plan........
Here are the 4 methods of trading that ill be using...
1. Posistion Trading the Futures Market.............. this will usually involve the buying or selling of 3 contracts at a time......
2. SetUp trades in the Emini........ this will require a lot of watching and very little money........ hesitant to call these day trades but thats actually what they are...... I prefer the term "Momentum Trades'..... these trades will usually last only minutes....... Basically comes down to placing orders in the market ahead of time and waiting for the market to fill them....... Orders for entry and exit, will be placed at same time..
3. Complicated Option Strategies.......... Ill go more into this later, as ive barely mentioned the term "Option"........ This will more times than not, include the selling of the nearer option and buying a farther out one.. This strategy will tie up more money for a longer period but will have less risk assoicated with it, as ill not be selling naked options......
4. Spread Trading, this will tie up far less margin money and will entail less risk..... the option and spread trading are longer term trades... These trades will occur, moreso in the meats and grains for me......
Ill be using "any and all" of these types of trades at any given time... But this for the most part will be my entire trading program.........
an example of spread trading, would be to buy June Hogs and Sell July Hogs,,,, this is called a bull spread, as you want the difference in the 2 prices to widen........ as we get closer to June, i actually would get out of the bull spread and into a bear spread.... as we would then buy July Hogs and Sell June Hogs, hoping the price gap narrows between the 2....... this is only one example of a true spread trade but its one of my favorites to play each year........ it will require a cost of 2 commissions but the margin to hold this trade is small,,,,,,,, i think around $400..... so it doesnt tie up much money and can be quite profitable....... in a couple more weeks, ill talk more and more about this particular spread trade........
Option trading is a whole other world and has a lot of different terminology that is used.... Ill have to discuss that later but for now,,,,,,, anyone interested, look up the terms "Call Option" and "Put Option" along with the word "Strike Price"........ option trading works Big time on the "Bid and Ask" system.........
Here are the 4 methods of trading that ill be using...
1. Posistion Trading the Futures Market.............. this will usually involve the buying or selling of 3 contracts at a time......
2. SetUp trades in the Emini........ this will require a lot of watching and very little money........ hesitant to call these day trades but thats actually what they are...... I prefer the term "Momentum Trades'..... these trades will usually last only minutes....... Basically comes down to placing orders in the market ahead of time and waiting for the market to fill them....... Orders for entry and exit, will be placed at same time..
3. Complicated Option Strategies.......... Ill go more into this later, as ive barely mentioned the term "Option"........ This will more times than not, include the selling of the nearer option and buying a farther out one.. This strategy will tie up more money for a longer period but will have less risk assoicated with it, as ill not be selling naked options......
4. Spread Trading, this will tie up far less margin money and will entail less risk..... the option and spread trading are longer term trades... These trades will occur, moreso in the meats and grains for me......
Ill be using "any and all" of these types of trades at any given time... But this for the most part will be my entire trading program.........
an example of spread trading, would be to buy June Hogs and Sell July Hogs,,,, this is called a bull spread, as you want the difference in the 2 prices to widen........ as we get closer to June, i actually would get out of the bull spread and into a bear spread.... as we would then buy July Hogs and Sell June Hogs, hoping the price gap narrows between the 2....... this is only one example of a true spread trade but its one of my favorites to play each year........ it will require a cost of 2 commissions but the margin to hold this trade is small,,,,,,,, i think around $400..... so it doesnt tie up much money and can be quite profitable....... in a couple more weeks, ill talk more and more about this particular spread trade........
Option trading is a whole other world and has a lot of different terminology that is used.... Ill have to discuss that later but for now,,,,,,, anyone interested, look up the terms "Call Option" and "Put Option" along with the word "Strike Price"........ option trading works Big time on the "Bid and Ask" system.........
