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Futures Trading: Pioneers, Impact on World History, and Famous Traders

Posted on by efuturesadmin

Learn more about futures trading at E-Futures.com here.

Futures trading is a financial practice that involves the buying and selling of contracts for future delivery of commodities or financial instruments. This trading mechanism has played a significant role in American history, influenced critical moments in world history, and produced renowned traders who have shaped the industry. In this article, we will explore the most prolific futures traders in American history, examine the direct impact of futures trading on key historical events, and highlight some of the world’s famous futures traders.

Most Prolific Futures Traders in American History:

a) Richard Dennis: Known as the “Prince of the Pit,” Richard Dennis was a legendary futures trader who made his mark in the 1970s. He developed a group of novice traders, famously known as the “Turtles,” and trained them using his proprietary trading strategy. The success of his trading experiment solidified his status as one of the most prolific futures traders in American history.

b) John W. Henry: A former futures broker turned trader, John W. Henry established his reputation as a successful trend follower. He founded John W. Henry & Company and used quantitative strategies to achieve remarkable returns. Henry’s accomplishments in futures trading led him to become the principal owner of the Boston Red Sox baseball team.

c) Paul Tudor Jones II: Paul Tudor Jones II gained fame as a hedge fund manager and futures trader. He predicted and profited from the stock market crash of 1987, commonly known as “Black Monday.” His trading skills and philanthropic endeavors have cemented his place among the most influential traders in American history.

II. Impact of Futures Trading on World History:

a) The Great Depression: During the 1920s, excessive speculation in the futures markets, particularly in stocks, contributed to the economic bubble that ultimately burst in 1929. The ensuing stock market crash triggered the Great Depression, leading to widespread economic hardship. This historical event demonstrates how the unchecked nature of futures trading can have far-reaching consequences on global economies.

b) Oil Crisis of 1973: Futures trading played a direct role in the oil crisis of 1973. As tensions rose in the Middle East, speculators rushed to buy oil futures, anticipating a price surge due to potential supply disruptions. This speculation led to a significant increase in oil prices, exacerbating the global energy crisis and causing economic turbulence in many countries.

c) Financial Crisis of 2008: Complex financial instruments, including futures contracts tied to mortgage-backed securities, played a crucial role in the 2008 global financial crisis. These instruments allowed financial institutions to speculate on the housing market, creating a housing bubble that eventually burst, resulting in a severe financial meltdown. The fallout from this crisis underscores the interconnectedness between futures trading and global financial stability.

III. Famous Futures Traders Worldwide:

a) Jim Rogers: An American investor and author, Jim Rogers co-founded the Quantum Fund with George Soros. Known for his adventurous spirit, Rogers embarked on a world tour on a motorcycle, gaining unique insights into global markets. He is renowned for his contrarian views and successful trades in commodities futures.

b) Bruce Kovner: Bruce Kovner is a self-made billionaire and philanthropist who built his fortune primarily through futures trading. He founded Caxton Associates, a successful macro hedge fund, and employed fundamental analysis to identify trading opportunities. Kovner’s expertise in futures trading made him one of the most respected traders worldwide.

c) Ed Seykota: Ed Seykota is a pioneer in systematic trend-following trading. His unique approach involved developing computer programs to analyze historical price data and identify market trends. Seykota’s success as a trader and his insights into human psychology have made him a prominent figure in the world of futures trading.

Collaborative Stories:

To illustrate the impact and success of futures trading, let’s explore the story of Richard Dennis and his “Turtles.” Dennis’s decision to train and mentor a group of novice traders demonstrated his belief that successful trading strategies could be taught. The “Turtles” went on to achieve remarkable success, showcasing the power of disciplined trading methods.

In another story, we can focus on Paul Tudor Jones II and his famous prediction of the 1987 stock market crash. Jones’s astute analysis and ability to profit from the crash solidified his reputation as a legendary trader and demonstrated the potential impact of futures trading on global financial markets.

Futures trading has shaped the course of American history, impacted critical moments in world history, and produced renowned traders whose achievements continue to influence the industry. Understanding the contributions of these traders and the impact of futures trading on historical events allows us to appreciate the significance of this financial practice and its enduring legacy.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with E-Futures.com today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

 

Trading Levels for July 19th – Gold Breaking Upside?

Posted on by efuturesadmin
Get Real Time updates and more on our private FB group!

 

Housing starts followed by crude oil numbers will be the main focus tomorrow.

For most part stock indices are experiencing “summer trading” – lower volume and volatility. Keep that in mind while you are trading/ day trading.

Gold, silver as well as energies and grains seemed to break out to the upside with good volume today. Will watch closely for possible follow through.

 

Plan your trade and trade your plan. 

 

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

7-18-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

Economic Reports, Source: 

Forexfactory.com

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Selecting The Right Future Broker for You

Posted on by efuturesadmin

Find out more about selecting a future broker that suits your specific needs here.

Selecting the right futures broker is crucial for traders and investors looking to participate in the futures and commodities markets. A reputable brokerage firm with a solid track record and regulatory compliance is essential to ensure a safe and reliable trading experience. In this article, we will delve into futures brokers and commodity brokers in the United States, with a focus on a brokerage firm that has been in business for over 30 years, enjoys a good reputation, and maintains a strong standing with regulators.

Futures brokers are financial intermediaries that facilitate the trading of futures contracts on behalf of their clients. These contracts allow market participants to buy or sell a specific asset (such as commodities, stock indexes, or interest rates) at a predetermined price and date in the future. Futures brokers act as a bridge between traders and the exchanges where these contracts are traded, executing orders and providing necessary services and support.

Commodity brokers, on the other hand, specialize in facilitating the trading of commodity futures contracts. Commodities are raw materials or primary agricultural products that can be bought and sold, such as oil, gold, wheat, or natural gas. Commodity brokers have a deep understanding of the unique dynamics and factors that impact commodity markets and assist clients in navigating these complex markets.

When choosing a futures or commodity broker, several factors should be considered:

  1. Reputation and Experience: Opting for a brokerage firm with a long-standing reputation and a history of successful operations is crucial. A firm that has been in business for over 30 years demonstrates stability and expertise in navigating the ups and downs of the market. A good reputation signifies reliability, integrity, and the ability to provide excellent customer service.
  2. Regulatory Compliance: It is vital to ensure that the broker is properly regulated and holds the necessary licenses to operate as a futures or commodity broker. In the United States, futures brokers are regulated by the Commodity Futures Trading Commission (CFTC) and are members of the National Futures Association (NFA). Verifying a broker’s regulatory status and reviewing their disciplinary history can provide insights into their adherence to industry standards.
  3. Trading Platforms and Technology: Evaluate the broker’s trading platforms and technological infrastructure. A user-friendly and robust trading platform is essential for executing trades efficiently and accessing real-time market data and research tools. Additionally, consider whether the broker offers mobile trading capabilities and other advanced features that align with your trading needs.
  4. Commission and Fee Structure: Compare the commission rates and fee structures offered by different brokers. Lower commissions can significantly impact trading costs, especially for active traders. It is crucial to understand the brokerage’s fee structure and any additional charges for services such as data feeds, platform usage, or account maintenance.

Now, let’s discuss a brokerage firm that meets the criteria mentioned above. One such example is E-Futures.com, a well-established firm with over 35 years of experience in the industry. E-Futures.com has a stellar reputation and has maintained good standing with regulators throughout its history. It is registered with the CFTC and is a member of the NFA, ensuring compliance with industry regulations.

E-Futures.com offers a range of trading platforms that cater to the needs of different types of traders, from beginners to advanced professionals. Their platforms provide robust functionality, intuitive interfaces, and access to extensive market research and analysis tools. Additionally, E-Futures.com is known for its responsive customer service, providing clients with prompt assistance and support.

When it comes to fees, E-Futures.com offers competitive commission rates and a transparent fee structure. They prioritize cost-efficiency while maintaining the quality of their services. Clients can benefit from competitive pricing, ensuring that trading costs are kept at a minimum.

To assess a broker’s reputation and standing with regulators, it is advisable to consult reliable sources for reviews and ratings. Independent financial publications, industry websites, and customer review platforms can provide valuable insights into the experiences of other traders and investors. Analyzing multiple sources of information can help you form a well-rounded opinion about a broker’s reputation and performance.

Selecting a reputable futures or commodity broker is crucial for traders and investors seeking to participate in these markets. When evaluating brokers, consider factors such as reputation, regulatory compliance, trading platforms, fees, and customer reviews. E-Futures.com serves as an example of a brokerage firm with over 35 years of experience, a good reputation, and a strong standing with regulators. Remember to conduct thorough research and due diligence to find a broker that aligns with your trading goals and preferences.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey at E-Futures.com today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Options on Futures

Posted on by efuturesadmin

Read more about trading options on futures with E-Futures.com here.

Options on futures trading is a popular and versatile strategy that allows traders to capitalize on price movements in futures contracts. By combining the features of options and futures, traders can benefit from both flexibility and leverage, making it an attractive choice for many investors. In this article, we will explore the best way to trade options on futures, including various strategies and the advantages of trading options on futures compared to trading futures alone.

Before diving into the strategies, let’s first understand the basics of options on futures. Options on futures are derivative contracts that give the holder the right, but not the obligation, to buy (call option) or sell (put option) a futures contract at a predetermined price (strike price) before or on a specified date (expiration date). These options derive their value from an underlying futures contract, such as commodities, stock indexes, or interest rates.

Now, let’s discuss some strategies for trading options on futures:

  1. Buying Call or Put Options: One straightforward strategy is to buy call or put options based on your market outlook. If you anticipate a rise in the underlying futures price, you can buy call options. Conversely, if you expect a decline, you can purchase put options. This strategy allows you to benefit from price movements while limiting your downside risk to the premium paid for the options.
  2. Selling Covered Calls: This strategy involves selling call options on futures contracts that you already own. By doing so, you collect the premium from the option buyer. If the price of the underlying futures contract remains below the strike price until expiration, the options will expire worthless, and you keep the premium. However, if the price exceeds the strike price, you may have to sell your futures contract at the strike price but still retain the premium received.
  3. Buying Straddles or Strangles: A straddle involves buying both a call and a put option with the same strike price and expiration date. This strategy is useful when you expect significant volatility in the underlying futures contract but are uncertain about the direction. A strangle is similar, but the call and put options have different strike prices. These strategies allow you to profit from sharp price movements, regardless of the direction, as long as the movement is significant enough to cover the premium costs.
  4. Spreading Strategies: Spreading involves simultaneously buying and selling multiple options on the same underlying futures contract but with different strike prices or expiration dates. Spreads can be used to limit risk, reduce the initial capital required, and take advantage of price differentials between contracts. Examples of spreads include vertical spreads (buying and selling options with different strike prices), calendar spreads (buying and selling options with different expiration dates), and diagonal spreads (combining both different strike prices and expiration dates).

Now, let’s explore the advantages of trading options on futures compared to trading futures alone:

  1. Limited Risk: With options on futures, your risk is limited to the premium paid for the options. This provides a defined risk-reward profile, allowing you to plan and manage your trades more effectively.
  2. Leverage: Options on futures allow you to control a larger amount of the underlying asset with a smaller capital investment compared to trading futures contracts outright. This leverage can amplify profits if the market moves in your favor.
  3. Flexibility: Options on futures offer a wide range of strategies that can be tailored to different market conditions and personal preferences. Whether you are bullish, bearish, or uncertain about the market, there are strategies available to suit your outlook.
  4. Hedging: Options on futures provide a valuable tool for hedging against adverse price movements in the underlying futures contract. By buying put options, for example, you can protect your long futures position from downside risk. This can be particularly useful for commodity producers or consumers who want to lock in prices for future delivery.

When it comes to choosing a futures broker that specializes in trading options on futures, it is essential to consider factors such as commission rates, trading platforms, research tools, and customer support. One popular futures brokerage that offers options trading and specializes in futures options is E-Futures.com. It is advisable to research and compare the features and services offered by different brokers to find the one that best suits your trading needs.

Options on futures trading provides a flexible and efficient way to capitalize on price movements in futures contracts. By employing various strategies, traders can potentially profit from both rising and falling markets while managing risk effectively. The advantages of trading options on futures, including limited risk, leverage, flexibility, and hedging capabilities, make it a valuable addition to any investor’s toolkit.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey at E-Futures.com today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Trading Levels for July 12th – CPI, Beige Book and More!

Posted on by efuturesadmin
Get Real Time updates and more on our private FB group!

 

Busy day tomorrow with CPI, Beige Book, Crude Oil numbers and more.

be ready for a change of pace in price action compare to the last 2 days.

Check out our educational resources!

 

 

Plan your trade and trade your plan. 

Projecting possible targets when trading futures

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

7-12-2023

#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG

 

Economic Reports, Source: 

Forexfactory.com

 

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

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