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Regression Futures Trading Article
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Trading Forex Futures
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Foreign exchange and futures trading are becoming more and more popular all over the world mainly because of the promise of the great rewards that go with it.
In the past, only major corporations and government institutions were able to cope with it due to the huge volume of trades that take place. Individual and small investors had been unable to participate because it was too overwhelming.
However, with the arrival of the Internet and the advancement of various tools of communication and correspondence, foreign exchange and futures trading have become within arms reach of many private movers and small timers. The Internet has allowed greater access to financial information that enables even individuals to make speculative investments, often without having to pay a single cent.
Forex trading, no matter what Web sites tell you about the behavior of currencies and futures, is not free from risks. As with anything in this world, particularly those that involve the exchange of value and money, there are certain pitfalls.
For instance, because currencies rise and fall nearly every second, what may be of maximum value at one time might suddenly transform into something nearly worthless at another.
Currency values in the foreign exchange market are highly volatile, so you must always be on your toes by keeping yourself updated with the changes every minute of the day. And since the forex market operates 24 hours a day, the monitoring could take quite an effort on your part.
You must also note that whenever one currency falls, another one surely goes up, because that's how it goes. Currencies trade against each other.
Therefore, in order for you to be on the safer side (note that we said 'safer', but not 'safe'), trade currencies that belong to the list of 'majors', such as the US dollar, the Japanese yen or the British pound. These monies are less likely to move too drastically because they are the most heavily traded currencies in the market.
A word of caution: do not engage in currency trading unless you're truly prepared to do so. The lures of high returns might cause you to want to jump into the industry without so much as a bat of an eyelash, but you have to get yourself in-the-know first before you proceed.
Failure to adequately understand how the system works will cost you a lot of energy and mountains of money, if you're not careful.
You can avoid getting into currency trading traps by keeping yourself up to date with the latest industry news and movements at all times. You can do this yourself, or you can hire an expert to do it for you (which, of course, entails an additional cost on your part).
Once you've already mastered how the foreign exchange and futures markets operate, you will also be able to prevent yourself from being duped into buying or selling currencies at inappropriate times. Knowledge allows you to make speculations and forecasts about what happens with currency values next.
Regression Futures Trading Specific links
Regression Futures Trading News
My Morning Note - Finance News Network
My Morning Note Finance News Network European mkts were higher (FTSE up +1.81%, German DAX up +1.67%, French CAC up +1.52%) while locally, the SPI FUTURES mkt is pricing a HIGHER open up +56ptS when trading kicks off here this morning. On Friday, the ASX 200 closed DOWN -16pts or -0.39% ... |
Increased Futures Speculation Did Not Increase Food or Energy Prices - Forbes
Increased Futures Speculation Did Not Increase Food or Energy Prices Forbes Granger causality and long-horizon regression tests also show no causal links between daily returns or volatility in the crude oil and natural gas futures markets and the positions for two large energy exchange-traded index funds. |
INSIGHT-D.Boerse/NYSE deal undone by smart opponents, culture clash - Reuters
INSIGHT-D.Boerse/NYSE deal undone by smart opponents, culture clash Reuters It is an established fact that the pairing would have controlled more than 90 percent of European exchange traded derivatives through Boerse's Eurex and Euronext's Liffe and regulators had already torpedoed a wave of trans-continental exchange ... |
China's Yuan-O-Matic - Business Insider
China's Yuan-O-Matic Business Insider The regression equation in the chart (the pink band) has a near-perfect r-squared of 0.98. Unless Beijing's policymakers shift course, the currency will strengthen to 6 yuan to the dollar by next November, just in time for the US presidential elections ... |
Checkmate For Japanese Sovereign Debt - Seeking Alpha
Checkmate For Japanese Sovereign Debt Seeking Alpha A regression to the mean will cause depression, desolation and default. Personally, when I look at this graph, I cannot imagine how JGBs are not mispriced especially given the difficulty Japan will have paying its debts back if yields rise 1% percent. |