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"Free Chart Lessons for Growing Your Futures & Option Trading Business?"

Chart Lesson for 06/29/10

Hi, I'm Archie and I've been producing commodity trading chart lessons online now for ten years. We've covered a lot of different methods of trading and shown many 'before the fact' trade examples showing you how it's done.

I've shown countless examples of trading chart patterns with both futures and options and many other examples for limiting losses and protecting profits.

2008 went down in history as one of the best years ever for trading chart patterns. We were fortunate enough to participate in extreme price moves in both directions.

While the second half of 2008 was devastating for 401k plans and the 'buy and hold' mentality in the stock market where portfolio losses were about 70 to 80%, chart patterns traders not only saw it coming in advance, they made a fortune by following the charts.

CLICK HERE FOR CHART LESSON SECRETS
Ten-years of Chart Lessons Totaling 315 pages, 149 Charts, and 18 Videos!

 

  

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Greetings Traders, welcome to this week's chart lesson!

Fundamental analysis does have its place in commodity trading and technical analysts can benefit from fundamental research. Fundamental Analysis attempts to forecast the future value of a commodity by analyzing current and historical data. Analysts try to see if the commodities price is over or under valued and what that means to its future.

Fundamental analysis consists of looking at the cost of production in relation to the commodities current price, and the world supply / demand situation.

The cost of production is an important issue in many commodities, because the farmers or producers are not going to continue producing the commodity if the price drops below production costs. This was just recently evident in the cocoa market where producers were burning their harvest rather than selling it below production costs.

The world supply and demand fundamentals are important as well. Naturally, if demand is out pacing the supply we can expect prices to rise. And vise-versa if supply is out pacing demand.

Many traders trade strictly off of fundamental information. But this requires an extensive amount of work and research to design a trading strategy by. In my opinion, it takes away from the simplicity of commodity trading. However, as technical traders we can incorporate the overall fundamental analysis into our trading decisions easily.

As an explanation, we don't need to know everything there is to know about a soybean plant to successfully trade soybean futures. However, we should know in what locations around the world the plant is grown, what the overall world supply situation is and what the import and export demand is. We also have to be aware of possible adverse weather events around the world like droughts and floods.

The main source for this information is easily obtained from the United States Department of Agriculture (USDA), and market news sources. In the Virtual Trading University students web site you will find a link directly to the USDA reports calendar that tells you the date and times that these reports are released. 

Traders should take a cautious stance if they are trading in a market when a USDA report is scheduled for release. The reason being, the USDA numbers quite often do not match what the market traders are expecting, and prices can become very wild. For that reason I suggest closing out futures trades before these reports are released.

The December 1999, hog chart above is a prime example of what can happen when a report is released that is different than traders were expecting. This particular Hogs and Pigs USDA report indicated that there were many more hogs available than traders were expecting. This high number came at a time when the summer demand was letting up and resulted in much lower prices.

This market did trade limit down for four days before prices stabilized and if you had been long the market (expecting prices to rise) you would have been in trouble. Of course, if you were short (expecting prices to decline) you would have done well.

My point is you had no idea what that report contained before it was released, and it's the unknowns of commodity trading that can wipe you out. If you're not sure about a commodity trade, the best thing to do is get out, or stay out.

This is all for today but we see a lot more trade opportunities in the making. If you like what you see and want to give our course and trade alerts a try consider joining by clicking this link : Click here to read more about the course, then click the order button at the bottom of the course description page to read more about the LIFETIME MEMBERSHIP UPGRADE!----->

We provide trades for all account sizes so if you have trading knowledge and would like to try just our trade alerts click this link for a very special discount! CLICK HERE to see all that's included >>>>>

Trade Well,

Archie Johnson

PS. In my new course I will show you how to trade chart patterns with options and futures contracts with as little as $2000 and only the knowledge I supply you with. This two volume course with video presentations will be available later this year for $397.00. However, you can get it for zero cost by joining the VTU lifetime membership today. But you don't have to wait on the new course to get started because I'll show you how to trade the same strategies right now in my VTU chart pattern secrets trade alerts.

PSS. - The VTU LIFETIME MEMBERSHIP is back! If you want a course membership that doesn't expire and includes everything plus future courses and alert services for one low cost today and never be charged for future courses and subscription services, click the link below then the order button at the bottom of that page for a one-time special discount for this fabulous course. But do it today because this offer will expire soon!

Click here to read more about the course, then click the order button at the bottom of the course description page to read more about the LIFETIME MEMBERSHIP UPGRADE!----->

 

   

Disclaimer and Disclosure of Risk Statement

 All traders should understand that trading in the futures and or options markets is not for everyone. All traders should understand that there is substantial risk of loss when trading futures and or options. All traders should carefully evaluate whether trading in the futures and or options markets is appropriate for them, as such trading is speculative in nature. When trading futures, traders may sustain losses which may exceed their margin deposits. Option purchases may result in the entire loss of premiums paid for such options. Past performance is no guarantee of future success.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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