The Blog Entry that Accompanies this Video is at: http://investorandtrader.blogspot.com/2010/02/commodities-trading-and-futures_04.html

My Daily Blog is at: http://investorandtrader.blogspot.com

Free Issue of Airelons Market Tactics: http://davianletter.com/articles/2009/12/13/airelons-market-tactics-4

Airelon’s Market Tactics Newsletter: http://davianletter.com/amt

This vlog entry is a continuation in a series of videos, the “Commodities Trading and Futures Speculation”, and is continued from the previous entries.

Introduction: I discussed some of the myths regarding commodities speculation, and introduce the entire series.

The Reason for the Markets Existence: We discussed that the commodity futures markets exist, to allow companies, farmers, and others involved in production within the economy to hedge themselves against catastrophic losses. This in turn, keeps unemployment lower, and reduces volatility in the economy.

Why Traders Trade Commodities: Ok, if the commercial interests use the commodity markets to protect their business profits, then why are traders in those future markets? We discussed liquidity, and that the commercial interests need that trader liquidity, in order to hedge more efficiently. Without traders, the commercial interests have a very difficult time operating in the markets.

So what is the other benefits exist, other than that of traders providing liquidity? We discuss that in the following vlog entry …

* * *

Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and Investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

Duration : 0:9:28


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Posted February 27th, 2010 by admin 13 Comments » This entry was posted on Saturday, February 27th, 2010 at 10:23 pm and is filed under Commodity Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

13 Responses to “Commodities Trading and Futures Trading (Series): Collective Crowd Wisdom”

  1. cosmosgato Says:

    Since you didn’t …
    Since you didn’t mention it here I will.
    GREAT CALL ON GOLD!
    That like all I would have talked about.
    “Yeah I short gold. Yes I’m that good!”
    You’re to modest.

  2. soVun Says:

    LOL
    LOL

  3. sdje348 Says:

    GREAT video, Dan! …
    GREAT video, Dan! That really puts certain things into perspective for me. Thanks!

  4. cosmosgato Says:

    They would falsely …
    They would falsely disqualify people normal mortgages then push them into sub primes!
    The only good thing out of this is that some of these scumbags destroyed their own industry thus job.
    So now the greedy on the street looking for work.

  5. cosmosgato Says:

    Speaking of gold, I …
    Speaking of gold, I here the metal heads are on suicide watch. The metals are tracking with the market!
    Supposedly metal only goes up. Oh well.

  6. AirelonTrading Says:

    Bingo. :)
    Bingo. :)

  7. AndyMH182 Says:

    Any time I see a …
    Any time I see a price of oil or a price of gold, on Bloomberg or something… Are they listing the spot or the futures price?

  8. ychimocu Says:

    I should add that a …
    I should add that a lot of people did the math but sadly lost their jobs after the bubble exploded…

  9. AirelonTrading Says:

    Yeah, they got a …
    Yeah, they got a taste of those leveraged realty otc derivatives (CRO’s) and man, it was off to the races then. I hear unsubstantiated claims that some of those folks were over-leveraged 250 to 1

  10. AirelonTrading Says:

    Oh I hear ya. You …
    Oh I hear ya. You wouldn’t believe the homes that realtors wanted to put me in.

    Yeah, I basically trade (I described it in more depth in a podcast at my blog this week) – after i develop my edge – to the price action, and reading the tape, with moving averages.

    The music was actually written and performed by a close personal friend of mine, Paul Young. It’s called “The Other Side” He wrote it about a close friend of ours that was killed in an auto accident about 10 years ago

  11. ychimocu Says:

    After doing some …
    After doing some math I declined the offer because I would lose the deposit and a few months of payments after getting in red numbers.
    But a lot of people didn’t do the math and became victims of this.
    Hey Dan,
    How about price action and chart patterns, do you use them?
    Thanks and what”s the name of the music you use on your videos, I like it.

  12. AirelonTrading Says:

    Wow
    Wow

  13. ychimocu Says:

    All the problems …
    All the problems were caused by lack of regulation on lenders and irresponsible behaviour in the real state market and not the traders.
    I was offered an apartment when visiting a friend in the US, I’m not a resident , no credit record, no job in your country and I told them that and their answer was: “Don’t worry we will fix all the papers and fill all the requirements for you”.

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