If You Wanted To Know

cmegroup photo
I post a lot about my "futures trading." I think that is OK, because that is who I am. I have been working and studying for years now about futures trading and how to become a profitable futures trader.

The above photo of a futures trader doesn't depict me as a futures trader.
You have heard the phrase, "over kill." That is how the photo appears to me anyway.
But, that is what most people think when they hear the phrase, "futures trader."

All I need is one laptop of a standard size. 15 to 17 inch will be fine. Thank you.
Of course that wasn't my beginning start into the world of "futures."
I wanted the biggest, the best, and the most, Ha
Now I know that wasn't needed for me. We are discussing what I need here.

Let me show you my actual trading chart. I will explain a little about it with this post.

For this lesson I will explain one or two items that you are looking at. First will be the "tick" aspect of this chart.

A tick is the movement up or down of a futures chart. What we are looking at here is the "ES" chart.
ES is the symbol of the "S & P" futures market when you look at the CME Group markets.
"Z" in this case is the contract month. It is the December contract month. Each time you buy or sell.
You are entering into a contract with the other person taking the other side of your trade.

As is the case with all contracts. You must fulfill your obligation to the other person or Entity. When you open an account.
You must sign an obligatory agreement to that fact. Contracts must be fulfulled according to rules and law.
That is why we trade in and out. If you hold the contract until the contract date has expired.
You must deliver to the holder of your contract the amount and number entailed in the "futures contract."
Very few do that.
The ES contract is now well over $100 thousand dollars.
You must deliver the specified number of shares and other obligations such as is contained in the contract.

All the above is just to get you to understand. It is not a game. It is serious business.

The chart above is an "8 tick (r) range chart. Each bar or candlestick is the same height in the chart.
It is not a time based chart. The advantage is that you will know exactly at what price the candlestick finishes. That can be important.

8-ticks of price movement up or down, equals $100 dollars for each contract.
Or 12.50 for each tick of price movement up or down.

If you are trading, say 10 contracts with each trade. That of course means $1000 dollars.
Now before you get excited. Please understand that it is not as easy as it might seem to be.
If it was. We would all be floating around in the sky of our dreams.

(Pixabay)

I think we have explored enough about futures trading for this post.
In the coming days. I will try to add more information about futures trading.
That is what I do and who I am. Just so you know.

Thank you for learning with me. It has been a long, hard journey for me to get this far in trading.

So, if you are considering it.
Please understand that it will most likely be very difficult for you and also very costly.
You make the decision. I did many years ago.

Francis