Got any advice for trading Futures?

October 11, 2008 12:05 PM

MarketFilter: Got any advice for trading Futures? Help a newbie!

I've entered the BP trading game. which is a virtual futures trading game for university students. According to their site, I'll be able to trade live futures prices for ICE Brent Futures and ICE Gasoil Futures over a period of a few weeks.

I've got some idea what to look for when trading stocks (PEs and other bits of fundamental analysis), but have never traded futures before. Have any of you guys got any advice?

posted by dragontail to work & money (5 answers total)

This book has everything you want.
posted by Pants! at 12:47 PM on October 11, 2008

Generally, the best way to win trading games is to bet it all on some long shot. Like in stocks, some penny stock or similar that doubles over the contest time span is way better than a fundamentally strong stock that grows by 25%. Risky, but it's not your money, and if you don't play this way, you'll get soundly beaten by those who do.
posted by smackfu at 1:18 PM on October 11, 2008

D'Oh. I read the part about the game, but somehow when I saw live prices, that switched something in my head. Have a blast! You can get basic trading strategies online from futures brokers. But, part of my previous advice stands. If you do well in the game, paper trading gains don't always work out in the long run in the real world.
posted by hwyengr at 3:29 PM on October 11, 2008

smackfu: Sounds logical, I agree. With any game, you aren't going to stand out by playing it safe. Especially when the risk is minimal (not real money).

hwyenr: Let's just say I'm not perpared to bet my student loan on it ;)

Pants!: Amazingly enough, there isn't a single copy of that book in any of the many libraries over here in Cambridge (including the university library!). That's the first time I've seen that...

Either way, Keep 'em coming people! Don't shy from recommending more books :) Though any advice is appreciated!!
posted by dragontail at 4:45 PM on October 11, 2008

I work in an industry that trades commodities futures, and many people have copies. Bad libraries!
posted by Pants! at 12:50 PM on October 12, 2008