Best Way to Trade Commodities and Futures

I saw a webinar yesterday by a guru trader and I was not impressed. I’m not gong to name any names but I can tell you that although it was free it was terrible.

I’ve seen free information from commodities and future traders around the web at no cost. The real reason why I was interested in the webinar because it was supposed to discuss pivot points and how to calculate these points. The problem was the guy did not know how to calculate how many fingers he had it was so bad.

I use simple technical analysis techniques and I expect so see things that people can understand. This webinar was so bad that I couldn’t understand one world of what was discussed.

Anyway, my trading broker gave me a few good resources and they are not costing me one red cent.

One indicator that I truly think is great is the Bollinger band indicator. It’s great for overbought and oversold levels and for trending markets as well. What’s really good about the trading indicator like Bollinger bands is the fact that we can get it without spending any money. It’s available on every charting software program, at least the one’s that I’ve seen online. You can set it to 10 bars or days for good short term action.

One other indicator that I find very useful is the Stochastic indicator. It’s an overbought and oversold indicator that measures changes in velocity of movement of price. It sounds very technical and it probably is but it’s also available on every possible program online so you don’t really have to know much about the technical side of it before using it.

I promised my broker a link back to his site and here it is

Have a great night everyone


My Technical Analysis Strategy

There’s many different technical analysis strategies that I use on a daily basis. I personally believe that old strategies that withstood the test of time are better than some of the new fancy strategies that my commodities broker always talks about.

I like to use a combination of ADX and ATR with my moving average that’s set at 50. I rarely ever use oscillators but if the markets are really choppy, the oscillator may work well.

One very good tip I can offer you is the longer the market trends the better the chances that it will start to stagnate and begin a range bound move. Always look for these types of moves after the commodity market had a chance to peak out and is taking a long pause.

If for some reason the market begins to trend again; then you can keep your stop loss close to the top. This way if the market takes out the high again you will be in a position to get out knowing that the market is making another move up or down, depending on what side you are on.

I’m experimenting with different types of indicators such as the least square moving average and other types of moving average indicators that have less delay between between price and the actual indicator. Because by the time your moving average gives you a signal it’s already too late.

I will discuss Trading platforms during the next few weeks. I’m experimenting with NinjaTrader and a few others.

I hope they are better than Trade Navigator, it’s a good one but I’ve been using it for so many years that I’m not trying anything else. I hear NinjaTrader is really good and my margins for day trading with my commodity brokers are really low.

Will update you soon.


Trading Futures the Right Way

Many traders start out thinking that you need very advanced tools for market analysis. I thought the same thing for many years. I now realize that if you have a specific method and you follow very simple steps you can beat the market.

I’ve been using simple oversold and overbought levels for years as a way to key off trades. It’s av very simple method that looks like a triple top pattern.

Funny enough I actually learned this trading pattern here and it didn’t cost me any money at all. If you want to learn the truth about trading, skip the expensive seminars and courses and get yourself a book about technical chart patterns. Basic patterns like triangles and wedges still work and can provide you with a low risk high reward trading opportunity.

Another good tip I recommend is using a discount or an online broker. You can save tons of money and get fast execution at the same time. I guess the days of using full service commodity brokers are over at least it seems that way. I stopped paying those high rates a few years ago and now get great execution at a good cost.

There are a few very good education resources as well. I highly recommend you check out for some of the best resources on the web. I use them all the time and love the services that they provide.

If you’ve never read Stocks and Commodities magazine I really think it’s the best source for beginners. They filter out all the junk and give you just what you need to know about the markets. Futures was a good magazine but it’s filled with advertisement and very little in the way of content.

That’s enough of my rambling for one day!


How I Trade Commodities and Futures

futures breakoutI’m been trading commodity markets for several years now. In the U.S. and Australia. My primary trading contracts have been the currencies and financials. I decided to write this blog to journal some of my observations about the markets.  The markets are very different from how they were many years ago when I traded full time.

Now that I trade only a few months out of the year I really gained a good perspective of how things changed over the years.

The Overnight Futures Market

One of the biggest differences over the years is the overnight market. Today it’s very difficult to gauge how markets are behaving because there’s so much market noise as a result of traders covering positions during the day that they initiated overnight.

My true dream is that markets would go back to how it was about 14 years ago when I was trading in the pit in the Chicago Mercantile Exchange and my ability to scalp the market was fairly good.

I was able to make a reasonable living and my expenses at the time where not too high. I used technical patterns and support and resistance levels and still rely on patterns primary for my indicators.

I’m also thinking of using different indicators for commodity traders and my commodity futures broker recommended a few different online platforms that I’m trying to implement right now. I will update the readers of this online journal with the latest.




Five Years Trading Futures

stocks trading and futures traders

When I first begun trading commodities I was expecting to be very successful but It’s taking me a bit longer than I thought. I did learn some very interesting trading techniques and I’m finally profitable but It’s taken a bit longer than I hoped for.

The biggest reason for my long journey was because I listened to the experts but I didn’t apply what they were telling me. But once I realized exactly what I was doing wrong and stopped looking for the next best system I finally started taking responsibility for what I was doing wrong.

Throw Away Fancy Indicators

I threw away all the fancy indicators and started going back to opening range and momentum breakouts. I use simple CCI and Exponential moving average system that works very well. I sometimes put in a bit of MACD but nothing more than that.

I recommend a book and Commodity traders that was written a few years ago called technical analysis explained by Martin Pring. It’s a very good book and very underrated in my opinion.

I finally understand after 5 years that could be taught in 5 minutes but no one ever wants to listen to anyone.