im new to ag futures..whats good?

[cashmoney69]

Quote from traderTX:

86 ticks is MUCH too wide in corn or oats if you are trading with a good strategy. I like to keep my risk at between 5-10 cents (20-40 ticks) depending on my target in those markets. For a new guy...I'd say 10 cents should be a good risk for you to take on any given trade in corn...if you can't "hit" a level in a dime in that market you need to re-adjust what you are doing.

as far as $5 increments per tick go...cotton trades this amount, but its probably much too volatile right now for what you are wanting to do.

OJ trades $7.50 per tick..but forget it if you want liquidity.

Try some of the livestock mkts: Live, feeder or lean hogs on "swing" trading strategies...$10 per tick on the lives and leans, 12.5 on the feeders

Yes, id like something that I can hold overnight, so livestock might be my MKT of choice if its good for swing traders, as I come from a stock swing trading background.

I'll contact OEC futures and ask their advice. I loved their platform.

 

[ivanbaj]

Quote from traderTX:

corn or oats or live cattle...although cattle tend to (historically) get very range bound...so if you want something that moves over time (week to a month) but has *relatively* low daily ranges...look at corn or oats.

Best of all though, look at grain spreads...very slow moving, very methodical, and very good liquidity. My favorites are MGE and KC wheat, but thats just me....corn spreads or Chi wheat probably have better liquidity.

Do you know if IB quotes MGE wheat and what is the symbol?

 

[traderTX]

Quote from options4me:

July / Nov Bean spread... ( Hit +160 Spread last week)
Unfortunately the time to safely trade this has passed.
Planning ahead to start the trade for this in December (09) when the spread is back down in the neg range again.

HAHAHA!!! N/X beans will tear his head off if he's new to the ags!

 

[traderTX]

Quote from ivanbaj:

Do you know if IB quotes MGE wheat and what is the symbol?

I do not know if IB has this symbol...I clear through RCG and Advantage. Try "MWE" as the root symbol.

 

[nazzdack]

Quote from cashmoney69:
I'm looking for a contract thats rather slow moving, but yet still has reasonable volume day to day with good profit potential. What would that be?

?.....spot-month feeder cattle during it's final, several days of trading.

 

[cashmoney69]

what about coffee?

no one said anything about that contract.

 

[nazzdack]

Quote from cashmoney69:
what about coffee?

(CF = S) Coffee equals Soybeans.

 

[youngtrader]

gont trade ags............in depth fundamental knowledge is a must (you can't just look at a chart with a million indicators and make money unless you are using the fundamentals as well.......you will get owned if you do that) Plus volatility will eat you alive.........limit ups, limit downs can and do happen especially as we get into the summer pollination period.

 

[number22]

Quote from cashmoney69:

what about coffee?

no one said anything about that contract.

cause coffee's volume is light compare to other; which you are looking for high volume contracts.

are you just yanking chains in here?

zc(corn), zs(soybean), and zw(wheat) are pretty liquid contracts. but, if you are looking for as liquid as ym or es; then forget about it.

 

[number22]

Quote from youngtrader:

gont trade ags............in depth fundamental knowledge is a must (you can't just look at a chart with a million indicators and make money unless you are using the fundamentals as well.......you will get owned if you do that) Plus volatility will eat you alive.........limit ups, limit downs can and do happen especially as we get into the summer pollination period.

plus weather pattern, not just in North American, but globally. At the same time, many geopolitical stuff to consider as well, by now, you should know sun spot activity is major source of global warming, etc.