3 Sources to Fund Futures Trading

Posted by Deb | Futures Trading Tips,Guest Post | Sunday 26 August 2012 10:22 pm

Futures Trading can be quite rewarding when you know what you are doing. On the other hand, taking money out of pensions funds to trade should not be done lightly. Even if the guy at the cafe thought it’s a good idea, or the cleaning lady at work swears by it as she drives off in her new car, trading is not for the un-initiated and sound financial advise should be obtained from an expert. Trading has an element of risk, and if you are not sure what you are doing, the learning curve can be expensive and good money can be lost in a flash. If however you are serious to get started in futures trading but don’t have the money to get started? That’s fine. You can always raise the money you need. You might even have money laying around that you’re not aware you can use. Before you start putting in overtime at the office, consider a few simple ways to raise the capital you need:

Life Insurance

Cash value life insurance, like whole life and universal life, are excellent sources of capital. If you have a policy, call your insurance company to find out how much cash value is left in the policy. You can borrow against both whole life insurance and universal life, and you can make withdrawals from universal life policies.


Policy loans are typically offered on a preferred loan basis. This means that you don’t need to fill out a credit application for the loan. Instead, the insurer will simply give you the money as long as you have the available cash in your policy. The insurer secures the loan with the death benefit. If the policy lapses, or you die, then the insurer pays the death benefit, less any outstanding loans, to your beneficiary. Loans can be repaid on a flexible schedule that you control and can be used for any purpose including investing.


Retirement Plans


Some retirement plans allow you to borrow against the value of the investment account. Others allow you to withdraw funds for specific purposes prior to retirement. While most retirement accounts do not allow you to withdraw funds for investment purposes, Roth IRAs allow you to withdraw your principal contributions for any reason. You won’t incur a penalty for the withdrawal as long as you do not take any of your investment gains prior to age 59 1/2. Being able to withdraw principal contributions before investment gains means that you can use the money for investing in the futures market.


If you are certain you will never use your IRA or 401(k) plan, consider making withdrawals under IRS rule 72(t). This special provision in the IRS code allows you to make withdrawals prior to age 59 1/2 without incurring a penalty. This would be most useful for withdrawals from a traditional retirement plan or a plan that does not otherwise allow withdrawals prior to retirement.


When taking money from a 401(k) plan under rule 72(t), you’ll have to be separated from your employer. You may be able to make in-service withdrawals if your plan administrator allows it. Not all of them do. Even then, the IRS requires that you be at least 59 1/2 if you are still working for your employer.


Yard Sale


If you’re like most people, you have stuff that you don’t want or need anymore. You can have a yard sale to get rid of your junk, or you can selectively sell items on eBay or another auction-based website. Raising funds this way spares your retirement account and allows you to raise money without having to work extra hours or risking money in your insurance policy.


Borrow Money


Borrowing money from friends and family is probably the riskiest way to raise money for investing. If you lose the money, you’ll have to repay the loan and failing to repay could destroy important relationships in your life. However, if you’re responsible with money, it could also turn out very well for the person lending you the money. Offer the lender a cut of your profits in the futures market.




Before investing in futures, make sure you have a firm understanding of what you’re getting yourself into. Don’t go it alone if this is your first time. Investing in futures requires specialized skills and knowledge. A broker would be an invaluable resource as well as a good financial coach to ensure that you don’t end up losing your shirt.


Author Bio:

Guest post contributed by Hayley Spencer for EasyFinance.com. Hayley is a freelance writer and a successful futures trader. Her articles appear on various investment blogs. Find out about Debt Management from Easy Finance.


Universal Trading Profits

Posted by Deb | Futures Trading Tips | Thursday 2 August 2012 10:35 am

My friend Steve Sollheiser, who has posted here some time ago a very interesting guest post about Stock Chart Patterns, has asked me to make an announcement on his behalf.

Steve has recently launched a stock trading course which looks very promising. The name of this course is Universal Trading Profits, and it teaches how to predict the trends on both Forex and Stock Exchange charts, and I really recommend you check it out.

Following is the promotion letter he sent me for this course:

Join the elite army of traders who predict trends
HOURS before they occur, with 9 “HIDDEN” trading

Those systems are so powerful, they PREDICTED
EVERY Major reversal in the last century!

==> You MUST see this!

An early beta tester of this system made $5,139 …
during the 2008 crash!

The system includes:
* Full trading DVDs showing each system
* Leading systems that predict the market
* Super accurate tools to cash in on any chart
* Much more!

Check it out NOW

To your success!


Stock Chart Patterns

Posted by Deb | Futures Trading Tips,Guest Post | Tuesday 24 April 2012 7:52 pm

This post was written by Steve Sollheiser.

When trading futures or stocks it is important to know which patterns are worth trading, and which just waste your money and time. In this article we will describe several of the best chart patterns for maximum results.

Double Top
The Double Top is a very powerful chart pattern that reaches 73-78% win rate in most stocks and commodities, and it allows you pin-point stock reversals with ease on many charts. The idea is that price reaches a Resistance level twice, and bounces off it just to continue downwards. It shows an inability of buyers to push through the Resistance level and eventually indicates that price will fall downwards.
We usually enter these trades by selling when price breaks the neckline, or when price pulls back to the neckline after the breakout (higher accuracy trade).

Triangle Patterns
The triangle pattern is a family of continuation patterns that can generate very good signals, however we will only focus on one type of triangle: The Asymmetric triangle.
The symmetric triangle is not a reliable chart pattern and we will tend to ignore it.
The triangle consists of one horizontal trend line and one diagonal trend line that converge together, causing price to break the horizontal level and continue in the direction of the diagonal one:

This is one of the strongest chart patterns and we trade it by entering trades right on the diagonal trend line in the direction of the imminent breakout. We will also trade the breakout of the horizontal trendline and pull backs to this level once it is broken.

Channel Pattern
The Channel pattern is another effective set-up that can give us very good signals on many timeframes and charts: the idea is that price is bound between two parallel trend lines, and we trade when price hits the trend lines (only with the direction of the trend). This results in high win-rate trades when low risk and high reward.
We recommend also trading the breakout of the channel, when it breaks the direction opposite eto current trade, and we will also enter pullback trades as well.

In conclusion, those 3 patterns are very effective and generate profits for many trades consistently. Master them and you will see your profits rise significantly.

Steve Sollheiser is a writer and a stock trader. Visit his site www.StockChartPatterns.org for more articles about chart patterns.


An Interesting Trading Course

Posted by Deb | Futures Trading Tips | Sunday 3 October 2010 12:30 am

I was looking for reading material about day trading, and stumbled on a very nice course which I want to recommend here. It is called “The Rockwell Home Study Course” (or in its full name “Rockwell Trading Futures Day Trading e-mini’s Home Study Course”. If you follow this link you can either buy the full course, which seems very thorough, or download for free the accompanying pdf. I am currently reading this pdf. It is a very long file (273 pages), and seems very good. If you are serious about day trading, I really recommend you get at least this pdf. Click here!

day trading course

The Rockwell Day Trading Course


Mind Games

Posted by Deb | Day Trading Journey,Futures Trading Tips | Tuesday 24 August 2010 12:27 am

Today I was not able to trade. I didn’t have time to try till the evening, and then I had again internet connection problems. I phoned the Transact support, and they told me to speak with my internet provider. The internet provider refered me back to Transact support. Finally they did some reset of my internet connection, but till that was finished the stock exchange was closed for the day, so only tomorrow I will find out if it really helped. Agghhhh!

I wrote here about a book I ordered, on trading psychology. I got it about a week ago, but since we were on vacation with the kids I didn’t have time to read it. Now I am finally reading it, and it is very interesting.

Mind Games

The name of the book is the title above – Mind Games, written in Hebrew by Zvika Bergman and Arnon Schachar.   Unfortunately, I don’t think it was translated into English.

I think I will give her in the next few days some of the insights I am getting from this book.  One interesting things the authors claim is that your chances to succeed in trading are only very partially dependant on your technical knowledge and trading systems.  They give it only 10% of the influence on your success.  30%  they see as dependant on your money management or risk management methods, and 60% on your psychology as a trader.

Actually, from my experience, I also feel that the psychology is the most important factor.  I don’t know if I would give only 10% to trading methods, but actually it is anyway very difficult to divide percents of success like that.

Another interesting thing they write is that in order to become a professional trader, you have to pass through 3 stages, each one takes about a year:

Stage 1: Survival for a long period of time

Stage 2: Growth of your capital

Stage 3: Making money

In the course I took on trading the teacher gave the impression that after a few months of working on the demo system, one can go straight to live trading as an expert.  But, as I found out, as the main part of trading is a matter of psychology, and trading on the demo cannot really give a true taste of trading psychology, it seems the apprenticeship period is much longer.

I hope give some more insights from this book in the next few days.

Trading for Living
For my readers who do not read Hebrew, I will give here also a recommendation for a book written in English about the subject of the psychology of trading, as I think psychology is a such crucial part of trading. The book Trading for a Living: Psychology, Trading Tactics, Money Management is a great book with very important advice about this subject.

Money Management in Day Trading

Posted by Deb | Futures Trading Tips | Thursday 12 August 2010 9:54 pm

I read yesterday a great article by Ilan Levy-Mayer, VP of Canon Trading, the company through which I do my  trading.  In this article he gives some rules to managing your risk when day trading.  He sees the managing of the risk as the most important factor in determining whether a trader will be successful or fall.  Any trader will have bad days, in which he loses.  Only a good risk management will help him not to lose all his money, and to be mentally capable of continuing the trading successful.  As I said here before, a trader’s mentality and psychology is the most important part of trading, more than any market indicator.

His rules are similar to the rules I wrote down here in my trading rules and tips pages, though he added a few interesting ideas.  I will give here an outline of his system:

  1. Daily stop loss:  Every trader must set for herself a daily loss limit.  Your limit depends on the capital you have and your personality:  How big a loss are you able to deal with.  When the loss exceeds your daily stop loss, close your positions and stop trading for the day.
  2. Daily maximum number of trades:  Going on with more and more positions will set you for losing.  It will make your fees too high for any substantial profit.
  3. Set your breakeven level:  This is an interesting idea I haven’t heard about before.  You should set yourself a certain profit limit, which if you get to during a day trading, and then lose again your profit, you should stop trading for that day.  The psychology of this, as I understand it, is that there is usually a certain limit that if you pass and than start losing you feel as if you have to fight to get it back, and that sets you to lose.
  4. In a similar way, set your profit target:  This will be a limit greater than your breakeven level.  For this target you will set a trailing tail.  The logic of this pair is similar to that of the breakeven level:  If you get to the profit target or pass it and then start to lose, don’t let yourself lose more than the trailing level.  If your profit goes down from your maximum profit of that day by a sum equal to the trailing tail, it is time to stop for the day.  The logic here is similar to that of the breakeven level:  When you make a nice profit and than lose it, after some critical point you can’t take it and lose your logic.
  5. Profit limit:  similar to your daily loss limit, set yourself your profit limit.  Don’t let your profits make you too greedy.  Enough is enough, and if you try to make more and more positions you will start losing.  Your trading fees will accumulate, making your profit smaller.
  6. Stick to your rules!  This, from my experience, is the most difficult rule of all.  But if you do manage to follow these rules, with the limits you set for yourself, you will create for yourself  a positive trading psychology, and make your chances to survive and make profit much higher.


Good luck in your trading!

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