about futures trading..

sarada_rajesh · #1 28th November 2007, 05:38 PM

Hi,
I recently read about futures trading.
In what way is it advantageous or disadvantageous compared to the regular trading?
Is there anyone who could share your experience with me?
and also has anyone subscribed newsletters for guidance and got benefited by that? if so which one...
Am a novice trader with hell a lotta passion for it.

yksarmay · #2 29th November 2007, 07:42 AM

it is very dangerous for new commers. some times it ll take away all ur money n give u some thing. so better not think of it soon. avoid it totally if u can.

masterjee · #3 29th November 2007, 12:02 PM

Quote:

Originally Posted by sarada_rajesh

Hi,
I recently read about futures trading.
In what way is it advantageous or disadvantageous compared to the regular trading?
Is there anyone who could share your experience with me?
and also has anyone subscribed newsletters for guidance and got benefited by that? if so which one...
Am a novice trader with hell a lotta passion for it.

Make money consistently in cash (positive cash flow for month) - before jumping into futures.
m

suba_stocks · #4 29th November 2007, 06:02 PM

Quote:

Originally Posted by sarada_rajesh

Hi,
I recently read about futures trading.
In what way is it advantageous or disadvantageous compared to the regular trading?
Is there anyone who could share your experience with me?
and also has anyone subscribed newsletters for guidance and got benefited by that? if so which one...
Am a novice trader with hell a lotta passion for it.

test your skills with equities that is cash market...if you are capable of making good profits then you can enter into futures and options with same skills ...remember equities gives your good experience with less risk. so don't try till you are good enough in analysis.

regards
suba

gvgs98 · #5 30th November 2007, 03:10 AM

I suppose you need to understand in depth about derivatives and gain confidence with equity trading, gives an edge to compete with calls or puts.

Asia Etrader · #6 11th December 2007, 08:09 AM

Quote:

Originally Posted by sarada_rajesh

Hi,
I recently read about futures trading.
In what way is it advantageous or disadvantageous compared to the regular trading?
Is there anyone who could share your experience with me?
and also has anyone subscribed newsletters for guidance and got benefited by that? if so which one...
Am a novice trader with hell a lotta passion for it.

Futures offers you a highly leveraged means of trading. Professionals use it for hedging. For example I am long Nifty options I might sell a future to hedge risk and lock in a profit. Futures are priced from the Spot price (current cash price) and discounted at the prevailing zero-coupon interest rate. The higher the rate the lower the future. Commodity futures have a storage cost associated and stock futures have a dividend component too. Its quite mathematical so be sure to read all you can before even trying. I have some information on it at my website http://www.asiaetrading.com/educatio...s_contract.php
Hope it helps