ARTICLE SYNOPSIS ...Trading primary markets by Allen D. Hanson Few traders understand the difference between primary futures markets and those that are often called ""secondary"" markets. Sometimes it is not easy to tell the difference between them. As a new futures contract develops it gains status through volume (the number of contracts traded during a session) and open interest (the number of contracts that haven't been closed). Commercial participation grows and soon a specific industry is relying on this futures market as a prime source for its cash pricing. During the transition from a secondary to a prima...
ARTICLE SYNOPSIS ...Winning in the Futures Market (Three ways to beat the system) by Allen D. Hanson There are very few successful futures traders. Most winners tend to give back their earnings and many of the people that try the commodity futures markets never really get to first base. Income tax accountants and bankers know full well that the average trader is a loser. There is always the old question, ""Where are the rich commodity traders?"" They are few and far between. Almost everybody that I have known over the years that made it big in commodities also lost it big eventually. The market is a great task...
ARTICLE SYNOPSIS ...Theft? Commodity Floor Brokers by Allen D. Hanson Questionable trading practices in the Securities business became very evident to me during my years as product manager for a major corporation and later as a licensed floor broker. In those days, I owned individual seats on two of the nation's registered stock and commodity exchanges. I routinely carried commodity positions so large that they required daily reporting to the CEA (Commodities Exchange Authority), the governing body at that time. I also acted as an independent floor broker for a major brokerage house and other firms, always doin...
ARTICLE SYNOPSIS ...Commodity Trading Risks by Allen D. Hanson Few traders fully realize the risks that they are taking when they make a commitment in the futures market. They have learned all about charts, cycles, fundamentals, and basic trading theory, but when it comes to understanding the real risk, they simply don't comprehend the hazards involved. This is particularly true regarding the short side of the futures market. While this is often called the most profitable way to be in the market, the upside risk is still unlimited in theory at least, and the downside potential is limited to the full price of the...