Welcome to Futures Trading Guide
Soybean Futures Trading Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Risks Involved in Futures Trading
from:
Futures trading is a risky business and anybody who will tell you otherwise, that it is 100% risk-free, is daft or is trying to sell you something. The fact of the matter is, futures trading is a financial gamble. And, like a gamble, you will never know when you will win and when you will lose. The key is simply to play the game based on the cards you are dealt with and hope for the best.
A lot of traders are lured into futures trading because of the great rewards it can potentially bring. However, you must keep in mind the rule of opposites, in that with great rewards, also come great downfalls. Futures trading, because you're gambling with something that is yet to happen, is nowhere near accurate.
There are basically four main risks associated with futures trading. We will discuss each of them in brief here. If you want to know more, it is suggested that you consult an expert on the matter, because how the futures trading works and pitfalls involved cannot be simply summed up in a short article.
1. It is speculative.
By this, it is meant that no matter what experts say or predict will happen to the market months or years from now, nobody will be able to make perfect forecasts. Therefore, if you're planning to invest your hard-earned money into financial trades, do not put all your eggs in one basket.
While it is possible that you will make a fortune out of this risk, it is also likely that it will be the one that will send you to the poorhouse. Tread carefully.
2. To be able to trade in your personal account, you must have pure risk capital of at least USD10,000.
Yes, futures trading involves a lot of money at the onset and is definitely not for the faint of heart and the weak pocketed. Thus, if you are looking to earn sums of money in futures trading in order to be able to pay your piling bills, then you could be in for a major financial crisis. Ideally, any person who wants to enter futures trading should have a net worth of around USD100,000 before he decides to take the plunge.
3. It requires ample know-how.
Note that futures trading involves 4 investment categories: namely, speculation, growth, inflation hedges and income. Without adequate knowledge of these four, you won't be able to move freely in the trading market and might even cause yourself to lose.
Do not simply rely on somebody else to do the research and understanding for you. Being able to make intelligent decisions, no matter how inaccurate, will sometimes make the difference between a win and a loss.
4. Do not put in more than 10% of your net on futures.
This backs item number two. Indeed, futures trading should not be your first foray into financial trading. You should only do it when you're confident that you have enough knowledge and that your other investments are working out for you.
Again, futures trading exists in a very high-risk environment and it is not advisable that you splurge, no matter how attractive the possible returns are.
The above is not meant to discourage you from engaging in futures trading. What it seeks to achieve is clarity on your part, so that you won't merely dive in without knowing what risks it entails. Again, banking on futures is a huge gamble. Thus, you must do it only when you're sure you're ready. Good luck!
Soybean Futures Trading Specific links
Soybean Futures Trading News
Wheat and soybean futures fall on the CBOT; beef and pork prices mixed - Washington Post
Wheat and soybean futures fall on the CBOT; beef and pork prices mixed Washington Post CHICAGO — Grains futures traded mixed Wednesday on the Chicago Board of Trade. Wheat for March delivery fell 1.50 cent to $6.6075 a bushel; March corn rose 0.25 cent to $6.4250 a bushel; March oats rose 0.25 cent to $3.28 a bushel; while March ... Grain futures, livestock prices mixed Grains futures mostly rise, livestock prices mixed Farm Markets |
Traders 'tense,' prices mixed - Agriculture.com
 Bloomberg | Traders 'tense,' prices mixed Agriculture.com US grain and soybean futures ended mixed Wednesday, with prices trading on both sides of unchanged levels, as traders reduced risk ahead of Thursday's government crop reports. Trading was choppy, with the consolidation of market positions featured. US Cash Grains-Bids steady in slow sales ahead of report Corn, Soybean Futures Fall in Chicago, Erasing Earlier Gains Crop market trade limited ahead of USDA reports |
Argentina soy prices down following Chicago losses - Reuters Africa
Argentina soy prices down following Chicago losses Reuters Africa Soy traded at 1364 pesos on Tuesday. * Trade volume rose to 10000 tonnes from the prior session's 8000 tonnes. * Soybean futures on the Chicago Board of Trade closed lower after seesaw trading as brokers adjusted positions a day ahead of the US ... |
Cooking Oil Imports by India May Climb as Domestic Supplies Ease - BusinessWeek
Cooking Oil Imports by India May Climb as Domestic Supplies Ease BusinessWeek Futures lost 3.1 percent in January, the first drop in four months. India's soybean oil imports may be 50000 tons in January, compared with 49520 tons a year earlier, and sunflower oil imports may drop to 90000 tons from 117499 tons, the survey showed. Soybean Futures Ends In Red On Profit Taking |
Copper at 20-Week High on China Housing: Commodities at Close - Bloomberg
Copper at 20-Week High on China Housing: Commodities at Close Bloomberg Corn futures for March delivery rose 0.25 cent to close at $6.425 a bushel on the Chicago Board of Trade. Soybean futures for March delivery fell 0.5 cent to $12.315 a bushel. Earlier, the price reached $12.4475, the highest for a most-active contract ... Crude Falls Along With Gas; Gold Rises: Commodities at Close |