Breaking Into Futures

Curt WagamanPFGBEST’s Futures Training Division

Futures

• Misconceptions and

Truths• Hedgers and Speculators• Exchanges • Leverage• Market Analysis and

Strategy Formulation

• Testing and Implementation

• Systematic Process

What futures are NOT

– Gambling– Get Rich Quick Scheme– Riskless– Rigged

What futures ARE

– Vehicles to• Transfer Risk• Discover Price• Speculate• Diversify

Hedgers and Speculators

– Hedgers • Transfer Risk

– Speculators• Make Profit

Exchanges

– Where Market Participants Come Together• Major Benefits

– Standardized Contracts– Flexibility– Liquid Markets

Leverage

– Leverage• Double Edged Sword

– Margin• Initial• Maintenance• Other

Analysis and Strategy

– Market Analysis• Technical – Charts• Fundamental – Supply and Demand

– Strategy Formulation• Trading Plan

Testing and Implementation– Testing• Simulated• Trade Journal

– Implementation• The Process • Discipline

Wrap Up

• Summary

• Learn the Basics• Analyze Markets• Develop Strategy• Test Strategy• Review Trade Journal• Make Changes

• The Process