I’m interested in trading foreign futures in an account held at a US brokerage firm; what should I be aware of?
Most US brokerage firms offer their clients access to foreign futures and options. If your broker doesn’t, you should reconsider where you house your commodity trading account. Even if you don’t intend to trade foreign markets, that they are offering you limited product access is a telltale sign of a brokerage that simply isn’t equipped to specialize in commodity trading. Perhaps their focus is in stocks or FX, but it isn’t futures.
With December now upon us, what’s a trader to do? As everyone starts planning their holiday parties, their vacations, and of course, their gift-buying, the market, too, is in planning mode. There are gifts from Father Wall Street for those who bear (no pun intended) to look for them. They come in the form of seasonality. Let’s take a look at a well-known seasonal pattern with an approach that’s an alternative to sticking your neck out with stocks or futures.
Want to trade options just one day a month? One of my students wanted to and was asking me about it at a recent West Coast seminar. It seems this option trader wants to trade options short-term, based on a well known — and pretty good — system that signals a bullish day in the stock market each month. That’s right, he wants to enter the market at the close of business on one day and exit the position the following trading day at the open, and wanted to know which option strategy would best fit his bullish prognosis.
Which futures markets should I focus on, and which should I avoid?
Ultimately, the key to fluid and reasonable price action is liquidity. As we all know, even in the deepest and most commonly traded markets there will be temporary lapses in judgment that cause pricing to enter ridiculous territory. Nonetheless, such abhorrent pricing happens far more frequently in thinly traded futures markets.
Recently, I inherited some money and have been deluged with people offering me great advice on how to invest this money. I don’t really understand the markets very well, but I was given your name from a friend in hopes that I could learn more.
I have been reading that the stock market has been growing at rates from 5–12% or even more. Brokers tell me that long-term stocks are the best investments. I realize they make their money from investors who buy and sell stocks, so I have to question their motives.