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Add You - My Experiences Trading Cotton and Lumber Commodity Futures Contracts and Options
The things that medical billing people take for granted. Open up your software, push a button, login. Push another button, get a patient menu. Push another button, pull up a patient. Click, click, click and the process goes on and on. Medical billers have no clue what is actually going on behind the scenes of their software. In the following installments and this is mainly for you tech heads, we're going to show you exactly what goes on behind the scenes with your medical billing software with the main parts of the system. To cover everything would take a lifetime.We'll be covering how patient files get put into the system and ho
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurren
If you aren't controlling your money, it is controlling you. In today's world, debt is an essential part of your financially planning. You must know how to eliminate it and control it at the same time. The best tool you can have in your financial tool box is knowledge. There are two types of debt -- good and bad. Borrowing money for items that appreciate over time, such as your home, is good debt. Other debt, including credit cards and auto loans, is not bad debt. However, you have to have a vehicle to get to and from work. So it can be bad, but still necessary. The key is to keep you necessary and good debt where you can afford it. Stretching
COTTON futures and options trade on the NYBOT. (The New York Board of Trade) Cotton has low to medium volume and liquidity; just enough to get by. An account margin of $1300 controls 50,000 pounds of cotton, worth about $30,000. One full point of price movement equates to $500.
Day trading cotton futures can be difficult. At times, the short-term charts can make little sense. Cotton futures fills (order execution price) often have significant slippage while the option fills are slow coming back from the floor. Market orders will get you filled immediately but you may not be happy with the results. Obviously, the main problem with short-term trading cotton is liquidity.
Liquidity is not really a problem with long-term cotton position trades lasting weeks in duration. Low liquidity will make little difference in your overall results because of infrequent entries and exits. Effectively using limit orders in cotton will solve the slippage problem, but makes entry and exits more challenging.
Normal moves of five to ten cents are common in cotton. ($2500-$5000) Over the last few decades, the cotton market has cycled within a large price range. The extreme lows are 28 cents to highs of $1.17 a pound. The goal of many long term traders is to catch big moves like this.
Weather is always a consideration when trading cotton. Droughts, floods, disease and insect infestation (boll weevils, etc) can propel prices. There's times when cotton trades counter to the other grains. (wheat, soybeans, corn, etc) What may be good growing conditions for cotton may be adverse to the other grains and visa versa.
LUMBER
LUMBER Futures and options are traded on the (CME) Chicago Mercantile Exchange. An account margin of $1700 controls 110,000 board feet of lumber worth about $27,000. One full point in lumber equates to $110.
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurrenc
Much of business involves inducing people to do what we want them to do. Whether it is to sign a proposal, return a call, set up an appointment, provide information or pay a bill, we are constantly nudging.In business, to exist you must persist. But what happens if your nudgee is flat-out unresponsive? Can you still advance your agenda?In many cases you can. Execute a classical Poingo inversion, top it off with a half-gainer and a solid plant at the end, and you've got your deal.In English that means to look for opportunities to invert the situation wherein the inaction, rather than the action of your nugdee prompts the fu
Liquidity is not really a problem with long-term cotton position trades lasting weeks in duration. Low liquidity will make little difference in your overall results because of infrequent entries and exits. Effectively using limit orders in cotton will solve the slippage problem, but makes entry and exits more challenging.
Normal moves of five to ten cents are common in cotton. ($2500-$5000) Over the last few decades, the cotton market has cycled within a large price range. The extreme lows are 28 cents to highs of $1.17 a pound. The goal of many long term traders is to catch big moves like this.
Weather is always a consideration when trading cotton. Droughts, floods, disease and insect infestation (boll weevils, etc) can propel prices. There's times when cotton trades counter to the other grains. (wheat, soybeans, corn, etc) What may be good growing conditions for cotton may be adverse to the other grains and visa versa.
LUMBER
LUMBER Futures and options are traded on the (CME) Chicago Mercantile Exchange. An account margin of $1700 controls 110,000 board feet of lumber worth about $27,000. One full point in lumber equates to $110.
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurren
Do you do Reiki energy treatments for your family and friends? Have you thought about turning your interest into a business? If you'd like to know a little more about how to develop a Reiki practice, here are a few tips about the legal aspects of the business.Licensing Right now (2007) in the U.S. there are no government-issued licenses to practice Reiki (as there are for doctors, nurses, etc.). But Reiki might be included in your state or local massage licensing laws - if there are any - so it's a good idea to check those to see whether they cover Reiki. There's a good chance they won't. But if they do, you'll hav
Normal moves of five to ten cents are common in cotton. ($2500-$5000) Over the last few decades, the cotton market has cycled within a large price range. The extreme lows are 28 cents to highs of $1.17 a pound. The goal of many long term traders is to catch big moves like this.
Weather is always a consideration when trading cotton. Droughts, floods, disease and insect infestation (boll weevils, etc) can propel prices. There's times when cotton trades counter to the other grains. (wheat, soybeans, corn, etc) What may be good growing conditions for cotton may be adverse to the other grains and visa versa.
LUMBER
LUMBER Futures and options are traded on the (CME) Chicago Mercantile Exchange. An account margin of $1700 controls 110,000 board feet of lumber worth about $27,000. One full point in lumber equates to $110.
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurren
To succeed in the pressure washing business you need to have a good account base and steady clientele. You need to be careful not to have too many accounts, which are mostly seasonal. The key is to have diversified accounts and plenty of night work cleaning concrete or flat work. One of the best accounts we have found for many reasons in Convenience Stores or C-Stores, as they are generally open 24-hours with lighting so you can work safely without being mugged and you can also be seen and pick up accounts from other property management companies, truck fleet owners and commercial building owners that see you out working.Recently I rece
Weather is always a consideration when trading cotton. Droughts, floods, disease and insect infestation (boll weevils, etc) can propel prices. There's times when cotton trades counter to the other grains. (wheat, soybeans, corn, etc) What may be good growing conditions for cotton may be adverse to the other grains and visa versa.
LUMBER
LUMBER Futures and options are traded on the (CME) Chicago Mercantile Exchange. An account margin of $1700 controls 110,000 board feet of lumber worth about $27,000. One full point in lumber equates to $110.
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurren
Meetings are a fact of business life, but most of them are frustrating and time-consuming. The results are rarely worth the time and effort of the many people involved. Yet meetings are a sensible way to handle many kinds of discussions, problem-solving sessions, presentations, and general updates on what’s happening.If you learn to plan, structure, and participate in meetings effectively, you will be able improve your own time management and productivity as well as that of other participants.For a meeting to be effective, the preparation must start long before it ever starts. You first have to determine the purpose of the meetin
Lumber's forty year low in the 1970’s was $94. It's all-time high was $493.50 after the Mt. St. Helens volcanic eruption blew out vast amounts of timberland. A $100 move in lumber over several months is typical. ($11,000 a contract) Limit moves up and down are a very common occurrence. The liquidity in lumber futures is a problem but tolerable. Market orders are sometimes necessary, but there is a big chance of slippage.
Lumber options are illiquid. They are hard to buy and sell. A series of limit moves in your direction will help you liquidate with a nice execution price and profit. Effectively using limit orders in lumber will solve the slippage problem, but makes entry and exits more challenging
Lumber prices can trend well since supply and demand are based on various long-term trends. These include U.S. housing demand and the supply trade agreements with Canada.
Short term trading is possible if you are nimble. Look for a five-dollar swings as an objective. ($550) If you get a limit move in your direction, you may want to get out of your futures contract. Reversals are common after big moves. However, if the move is supported by long term bottoms and major time cycles, you may want to hold on for what could be a big ride.
STRATEGY
Here's how I look for opportunities in the cotton and lumber markets: First I generate a TimeLine forecast that shows a strong move up or down in cotton or lumber. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to options combinations. At some point I will find a compromise between risk, profit and simplicity in one or two strateg
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