Trading grains

PuffyGums · Jan 17, 2003

Quote from cheeks:

I have another question about MGE. How big a trading account do you need(realistically)?

Once you lease a seat, how much are clearing and exchange fees per contract?

Thanks,

Cheeks

It depends on the clearing firm. If you are trading one lots to start, they may want a deposit of a few thou (realistically with $10K to $15K in reserve at a minimum). Of course this does not account for your living expenses which should be added on top of your trading funds.

It takes abt $1.20 total to clear a side (exchange fees + clearing firm commish) and I think wash trades are nearly free.

cheeks · Jan 17, 2003

Very interesting.

If it was not for you, I would not have known the exchange even existed.

Thanks,

Cheeks

inandlong · Jan 17, 2003

Quote from atorchio:

I think there is nothing special in my method: I use 3 EMAs and try to trade with the trend, that is when they are in sync.

Also use one price oscillator to see when the market has moved too far in one direction.

I try to enter my trades with limit orders; i can close them on stops, limits or market.

No there isn't and I appreciate your generous response. I am an ma and oscillator trader too for day and position trades. Love 'em.

I am not subscribed to real time data for them as yet, but I think what I will do is watch the delayed charts to get a feel for the spreads and the price movement. Also, I need to get up to speed on $$ per tick etc.

Thanks alberto! This is a good day to check out the symbols and months and build some new workspaces.

inandlong · Jan 17, 2003

Quote from cheeks:

Are you sure you want to daytrade a pit traded contract from off the floor? If you think you can do it, more power to you.

Just expressing a little concern for your P&L.

Thanks cheeks. I appreciate your thoughtful post. Your post drives home the reason I went to the pit in the first place... that and my commish was $2 per ticket then and not the $90 each way it was back then too off the floor.

Your point also briefs the same reason I quit very short term trading stocks.... the specialists and MM's. For stox I am positions only, where the entry and exit are not as dependent on the profits. Using something like an opening range breakout or trending method like alberto intraday might be the way to go for me to avoid the exasperation that comes from crappy fills.

Time to check this mugg out.

cheeks · Jan 17, 2003

Quote from inandlong:

Your point also briefs the same reason I quit very short term trading stocks.... the specialists and MM's. For stox I am positions only

I'm with you on that one. I am becoming more and more interested in Commodities. Mainly because the writing is on the wall for the stock market. While I still see plenty of trading opportunities in my time frame(1-3days, and sometimes weeks), I am afraid that will probably change a few years down the road. No public interest means no dumb money.

Trying to take money from professional traders is like taking food away from a hungry Doberman. You may get away with it a few times, but eventually you are going to lose your arm.

I think it is time I start looking for other opportunities.

blueberrycake · Jan 17, 2003

Based on that logic you will have even less luck in the futures markets. The ratio of professionals (ie hedge funds, CTAs, etc) to small(dumb) traders in most futures is far greater than what you see in the stock markets.

-blueberrycake

inandlong · Jan 17, 2003

Checking out some wheat and beans charts. I like what I see.

cheeks · Jan 17, 2003

Quote from blueberrycake:

Based on that logic you will have even less luck in the futures markets. The ratio of professionals (ie hedge funds, CTAs, etc) to small(dumb) traders in most futures is far greater than what you see in the stock markets.

-blueberrycake

You are correct. I was watching the market and I made that post a little short. Looking forward when the public gets tired of this bear market, I think some will start looking at other avenues. If inflation shows up, I would not be surprised to see a 70's type interest in commodities and metals.

Bankedout · Jan 17, 2003

I love this thread! I have nothing to add since I am a total newbie in these markets. I'm very interested though, so I hope the posts keep coming.

Banker

jaming5002 · Jan 17, 2003

Trading grains profitably depends alot on your time horizon. If your thinking of scalping profits from off the floor, dream on. There's going to be a time delay from the human handling as was mentioned by the previous posters. If your able to find a brokerage that routes directly to the pit broker, that's going to help a bit. I think Corn and Soybeans have routing to the pit. Don't think Wheat does but not positive.

As for a longer time period, I think grains are a good way to go. Corn is known for generally following trends. Beans and Wheat, not so much.

Just my two cents.