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Rex,
Generally speaking, your comments are unbiased, neutral.
However, allow me to comment on your +'s and -'s about
commodities / futures.
1).> + Lots of information on supply and demand data; the trouble
is >that the commercials have better data than you probably do.
Most futures traders are techies, not fundamentalists, so this
supposed trouble is a not that dramatic ( with few exceptions, of
course ), specially with the guys in this forum, which is on the
TECHNICAL ANALYSIS SIDE.
2).> - Need to be constantly rolling contracts forward, meaning paying
> more in commissions, or which results in discontinuous data for
> weekly or monthly charts...
Most long-term futures traders may hold a position for a few
months, with VERY FEW going into that hassle of
continuous contracts.
3).> ... as well as confusing symbols, terminology and margin
> > requirements.
Confusing symbols?, for who?, if you trade futures and
don't know the symbols of the markets you're trading, are
you sure you're in the right place?.
I follow the meat markets (CME), and I KNOW whatever changes are
taking place, like LIVE HOGS changing its name to LEAN HOGS
( what's confusing about that? ) or PORK BELLIES going 300 points
limit from 200. And these 'changes' don't occur every other month.
The conclusive note about this should be : KNOW THE MARKET YOU
ARE TRADING !.
4).> - Obtaining accurate data and knowing whether your data is
> accurate is a problem.
A problem?. If you call a problem getting a High of, say,
6888 instead of 6890 for Swiss Francs ( two ticks, a mere $25
),
yes, you're in trouble, if you think in terms of pennies.
If you think BIG ( and a Futures trader SHOULD ), you'd think
on the $3600 (max DAILY range in recent history ) + you can
make if you're in the right side of the market or, at least
the $700 + ( recent average DAILY range ).
5).> - Volume and open interest are reported a day late, and the
> figures are for all outstanding contracts, not just the
> specific contract you are interested in.
This is applicable only to whoever takes Volume and OI in
consideration for their T.A.
6).> - Weather news is a bigger factor than with stocks, and who can
> predict the weather?
Read No. 1
A + Comment on Stocks:
7).> .... don't have to worry about whether your order is
> covering 5,000 bushels or 5,000 pounds or ounces or whatever.
Is anybody trading CBOT Corn / Wheat / Oats / Soybeans
and DOES NOT KNOW that 1 contract covers 5,000 Bushels?. That's
what I call GUTS ! ( or, playing with fire, perhaps? ).
BTW, in a few months, you'll be able to tell your broker:
"Buy one July 98 Corn at ... " ; forget the bushels !.
> I hope I don't start a big controversy on this list server
> with some of my comments, as I really am not intent on
> offending anyone.
And from my stand point, you are not offending anyone. My
comments may sound like backfiring, but they are not,
I just wanted to make your comments more 'fair'/ elaborate
and explanatory, from a futures trader point of view.
No offense, please, my intention was NOT to create a
controversy.
Regards.
Efrain R Portales
Fort Worth
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