Futures Learning Plan for 2023 Trading Futures | Trading Futures
[Music] thank you and there's the Bell Traders welcome to this Monday January 9th as we talk about trading Futures my name is James Boyd alongside with me my good friend and uh um fellow Murray Citizen and resident of Murray Utah Kendra so we got you covered here in Murray Utah now just real quick as we're getting started I'd like to welcome uh Dale Reeves Lisa ap514 Bovi Sandeep Daniel Rebecca uh and many others Frank uh Bob welcome everyone now just real quick as we're talking about trading Futures this is actually a very important topic and I'll we'll get into this more but this is actually something that could be considered even if you're a stock investor or if you're trading options already Futures are unique in in the fact that we can actually get exposure to a trend okay with a lot less capital and we'll talk about that here today also remember we do Post educational content on Twitter you can follow us any of us instructors on Twitter uh also a quick reminder we do not reach out to uh you as clients and solicit you for anything so if you ever get that that's not us okay so uh quick reminder as we get started as we talk about trading Futures remember the content is intended for educational informational purposes only not investment advice recommendation of any security strategy or account type Futures and features option trading involves substantial risk not suitable for all investors there's a separate disclosure that why and you can click on that or uh Google that as well and it will actually get into what are some of those risks Etc also remember that Futures accounts are not protected by the sipc Futures and Futures options trading service provided by Charles wild Futures and Forex and also remember when we talk about trading Futures uh margin does increase your level of Market risk and also as we talk about if we do bring up options we probably won't do those today but if we do remember that options are not suitable for all investors now also we will be using the paper money application or I should say the paper money software application for our educational purposes as well when we also do talk about investing in trading uh remember we should review the transaction costs and also understand what the option Greeks are so today what I want to actually kind of talk about just real quick is number one is we'll talk about a quick market update for sure I'm wearing a green shirt and I'm hoping that's a good omen to start the week okay that I thought that out now also remember I want to kind of also talk about the outline for this class I'm going to be actually teaching the Futures uh for this year this class and I want to kind of talk about some of the educational resources and the list that we're going to work off and why and what are some of the key principles and Concepts that we're really trying to outline and also with that we'll talk about today the current setups so let's actually go ahead and actually just hop right in let's kind of take a look at first off uh where if I were to bring up let's say the Dow futures okay now I I feel like there's is no better way to really learn than just to kind of get in the pool and learn how to swim okay so what I want to kind of do first off before we even go into it I'm going to kind of use an uh an example and I'm going to type in forward slash m y m now I don't want you to be so concerned about which one and I just want to kind of for us to kind of practice and what I'm going to do is I'm going to go the trade Tab and what you're going to notice is once I go to the trade tab what you're going to see is I have the forest last mym and this is what they call the micro e-mini Dow now what you're going to notice is like options Futures have that same idea of expiration 67 days expiration 158 Etc and what you're going to notice is if the investor wanted to just go long well they could just go along by clicking on the ask now we're just going to set this up again I think the best way to learn is just put a trade on the paper money account see how they move okay so the first trade and I'm going to do it without a stop because we want to kind of track it we'll put a stop on afterwards we're going to click on this and what I'm going to do in this case is we're just going to go along the Dow at this price level now I want you guys to think to something if if you and your own investing wanted to buy the Dow itself the basket of stocks it would probably cost a lot more than what we're gonna see here okay now if I click on confirm and send there it is we're buying one contract of the micro three uh at 33 33 878 and what you're going to notice the cost of the trade including commissions is a dollar fifty now the buying power effect is setting aside a thousand Thirty One again what's the best way to learn futures or anything just practice trading now what I'm going to do is let's kind of set this one up let's send it and what you're now going to notice is if that can fill and it might take a sec to fill we're going to actually see that actually down there it will say plus one now the reason why I start off with this is sometimes as we learn we learn and then we become knowledgeable and then we're kind of fearful to apply well notice we didn't allow that fear to actually increase and we're actually just gonna actually jump in the pool and we're gonna set that one right there now don't worry I'm going to set a Target I'm going to set a stop but let's just kind of set that one right there now first off the reason why I chose and kind of taking a look at the Dow if I were to ask you what is the trend of the Dow what would you really say well the reason why I start off with the Dow is and it's kind of something I posted last week on Twitter is if you go back and look at the Dow the doubt of all the four indexes s p NASDAQ Russell it's actually the one that has the strongest relative strength in terms of performance and if we had to grade them on which one was above the shorter term moving average the 10 period EMA and which one was above the 30 it's actually the down now this chart is looking at a weekly chart and this is what's nice with Futures is we don't have to be trading them on an intraday basis it could be a daily chart it could be a weekly chart and it depends upon what your purpose of doing it is and we'll talk about that now if you look at this on a weekly chart it does kind of look like really like a bowl flag pattern okay so we're going to continue to kind of watch that and see if this at least the Dow in other words can go back up and really test really this prior high now that might be a Target that we actually set and we will talk about that yeah now let's kind of also go into just real quick well what are these other indexes showing the s p if you take a look at the s p itself and I'm when I say itself I'm talking about the es contract what you're going to notice is that does not look as strong okay hasn't gone up as much has maybe struggled to break resistance when you take a look at let's say the NASDAQ itself geez that does not look like the Dow that actually looks like a longer term descending triangle on the NASDAQ now last week I heard someone say well I would never invest in the doubt I'm like well geez if you were a bullish investor which index are you looking at because it's probably not the NASDAQ and the s p isn't that strong either the last one will bring up just real quick is the Russell okay and if you take actually look at the Russell that one doesn't look as strong either so if we're going to pick an index we're probably going to say that the Dow looks as probably or is the strongest up until now could that continue okay so those are what the indices are showing now let's kind of talk about this in terms of this account uh now I want to kind of make mention December 20th we reset this account the IRA to 325 000 okay that's the IRA in this account in the Futures this will be a part of the portfolio I teach a class Tuesday Wednesday Thursday our trades are going to influence what this count bounce does on the IRA and it will also influence on the margin account we started at 65 000 on December 20th okay now why did you start a little early it's because we took a break over the holidays and we wanted kind of that way when we came back we were already ready we knew what we were doing okay so and what you're going to see is we started there at 65 000. now so our trades are gonna go into those portfolios now I want to kind of talk about when you invest in let's say stocks my gosh you could have like a watch list like 25 different watch lists I want to kind of talk about what this class is going to focus on now would you like that would you like to kind of know a set list that we're really going to take a look at so if you don't mind I would like to as an instructor tell you what we're going to focus on okay and I like to tell you what list that we're going to focus on every time that we meet so our class is really going to focus really on in-depth indexes clearly and we'll talk about from what point of view we'll talk about Commodities okay and then we're also going to talk about currency now if I were to actually take a look at this what I first want to show in this case is what are the tickers that we're going to use for the indices now this class and the question came is this a beginner is this an intermediate or is this an advanced now what you're going to notice is if we were going to use the index the indices or indexes what you're going to notice is everyone that we every one of the tickers that we see has an m in front of it m in front of it would stand for micros okay and if you say James uh I don't use micros I'm going to use the standard contract that's fine have at it but for this class we're going to kind of focus maybe on that we want to kind of make sure the beginners and the intermediate feel comfortable and if you say I'm a little bit more advanced I'm intermediate to Advanced fine you might do a higher number of contracts and or just go a bigger contract our class is going to really focus on the micros which is the same idea but just doesn't take as much capital and it's not worth this much if it goes in the intended Direction it's meant to be a lower uh leveraged position now we're going to actually focus on those indexes and on the Commodities we have oil gold silver right copper natural gas and I think if we stop right there that's that's a good amount but sometimes my background comes from farming my grandpa actually no Farm in Hollow Colorado and when I was probably six or seven years old my gosh I remember him talking about Futures and uh my dad uh he is an animal scientist and he would have to buy five or six million dollars a week in in terms of feeding his livestock uh my mother's side my wife's side of the family they have about uh they have live cows feeder cows about ten thousand plus and you know so the reason why I put on corn wheat soybeans cattle live and feeder is because well those are actually a lot of things that historically my family has looked at now it doesn't mean that that's maybe your list but what we're going to do is we're going to kind of take these tickers and what you're going to notice on many of them if not all these are all micros okay gold excuse me oil gold silver copper this is the smaller contract of natural gas smaller contract of corn Etc okay and the last one if I actually brought this up and and by the way why would we actually say currencies what is interesting about currencies and what causes these currencies to move well these current what causes the currencies to move and there's some economies are actually stronger than others the U.S economy has maybe up until recently been stronger than the Eurozone or stronger than Canada or stronger than Australia that can cause the US dollar to be stronger the other thing that can cause the the currency to be stronger is if our rates are going up higher than others and or maybe other rates aren't going up at all okay lately we've been seeing other areas where their interest rates have been going up and that attracts Capital to those areas so if we actually kind of said in in terms of what causes currencies to move stronger uh economies and the other thing would actually be what that is interest rate movements by the central bank so in 2023 if you said which positions are we going to be talking about it's on the sheet okay we'll talk about the indexes in terms of micros Commodities micros again as well and we'll also talk about currency so if I backed up this sheet and if you said hey James going forward if we were going to track our positions on one sheet of paper we know which ones we're going to be looking at now this is what's kind of nice about Futures we don't have a list of 2 000 stocks that we're going to be looking at this list represents probably 90 plus percent of all our examples in 2023 okay now can we uh let me just stop for a moment and are there any questions okay now uh Miro actually says uh is there a smaller contract at the index indices yeah well those are right so just let me give you a quick example if we said what is the bigger contract okay and we'll see this in just a sec well this would be or ES right or okay NQ Etc so notice in front of the ones we are looking at is M for micro M for micro okay and we'll see that in just a moment but is this nice to kind of know like what what symbols we're going to pull from and and then you know 90 of all the examples that we're gonna uh look at are on this sheet we might throw in something different but it's not going to be probably the main course of what we're looking at now I want to kind of talk about are we going to be talking about Futures absolutely can we be talking about options on the Futures yes but at least for today we're going to be talking about the Futures now I also want to kind of talk make mention of what is really the purpose of the Futures that we're going to be doing on this class number one is I want to actually uh we want to talk about hedging okay the number one goal I think of uh really Futures is learning how to hedge now hedging would be maybe short the indexes where you think those indexes could drop how many of you think if you said in 2023 if you could learn how to hedge a stock portfolio and maybe options through using Futures how many of you think that would be valuable that's okay you can answer all at the same time can I vote yeah I think this would actually be really important a lot of times it's hedging the Futures can be customizable and and you know offer some potential benefits second actually if we take a look at this if we said well what's the second purpose we're going to speculate on Direction okay so we're going to go along a certain XYZ we're going to go short in XYZ sure speculate on Direction and really the third thing we would actually want to kind of really look at is we want to also really learn about a system based method okay where we actually maybe look at uh shorter term type of charts days to weeks weeks to months Etc and also I want to kind of really talk about a lot in terms of like different uh time frames okay different time frames now so these four points if we said why am I going to look at Futures well I want to learn how to hedge hedge what I want to really learn how to hedge a stock and or stock option portfolio and I think we got well if there's some investors maybe got exposed to maybe being uh long stocks and they actually said man I don't know how to hedge at all this is going to be a big one on how we use options to hedge and when to consider obviously number two is speculate we'll talk about system-based methods and different time frames now last thing I want to do before we actually go into our examples is right on the TD Ameritrade website okay what one expectation I would have from you is if you go if you log on to TD Ameritrade and you go to education on the left hand side it's going to now go down to Futures if we click on where it says Futures what you're going to notice is right in the middle of the page I mean it's right here right here there's going to be a video where about four minutes long talking about micro e-mini Futures contracts okay and you can watch that there's also going to be a fundamentals of Futures Trading the course takes about two hours if we click on continue it's also going to give you the basics of the lessons Okay introduction to Futures Trading features Basics portfolio hedging Etc and even down at the bottom it'll have a sample investing plan now what's the sample investing plan on well it just happens to be la la hedging with a portfolio my gosh that sounds like exactly one of our first learning lessons and it actually talks about how do you hedge with Futures and which instruments you might want to pick or consider and why Okay so in 18 minutes we went over the market kind of the indices we talked about for example uh why an investor might use futures we label these four points at the bottom also with this is we also talked about which tickers that we're going to use and consider over the year so you're not going to see me really uh vary a lot from this list and with that said what I want to now do is I want to kind of now talk about our third agenda item which is trading application so going forward in this year 2023 I'm going to refer back to this uh and we're going to really today I like to kind of focus at least today on speculating on Direction okay now I want you to notice that speculating is not a four-letter word okay a bad word and what I want to do is a lot of times is when we actually bring this up and I post this on my Twitter pages because you say well geez so now we have a watch list that we could work off how on Earth do I scan the list now if you follow me on other classes you'll know that we kind of use scripts as a way to scan technically for price prices movement price Movement we focus on looking at Trends Etc whether it's moving average crossovers breakouts Etc now what you're going to also notice is this is pretty much the list that we just made on that sheet of paper now you're going to see them on the left hand side now we could make a watch list and I did earlier this morning that pretty much is showing the exact same now what you're going to notice is on the right hand side if we just woke up and we said I I don't know which ones to maybe look at which wants to maybe consider well first off if we actually look to this list and I'll kind of guide your eye so you can see this what you're going to now notice is if we go to the top Mike the micros the copper Futures let's go all the way over to the right and what do we see right here now what is the green boxes with that number one mean what is that suggesting or maybe uh kind of telling us that we would want to really review to verify that it's accurate well if we actually get the 20 DH is actually saying it's hitting a 20-day High now if you're actually hitting a 20-day high that actually might be a breakout if you're hitting a high that might be the confirmation of an upward trend 55 days would be more intermediate and what you're going to notice is well it's actually hitting a 20-day High here and it's actually hitting a 55 day high it is also showing a whole moving average crossover so copper kind of looks maybe potentially interesting so we're going to kind of write down copper we're working our lips if we actually said well what else kind of looks at interest now notice the difference between mhg or QC it's just the difference in terms of uh the multiplier and also the buying power how much to set aside for our example we're just going to use the forward slash mhg what else is kind of stepping up a little bit here today well another one that's kind of stepping up is really the Aussie the U.S okay that's another one now what do you mean by that well it's actually showing a breakout on the 20 and the 55-day it's also showing an example potentially a cold the other one that's also trying to get a little move here today is the Canadian dollar I'm gonna write that one down as well Canadian dollar what else is kind of getting a little move here today well that's actually your gold okay the other one if I yeah the gold and the last one I actually saw was also if I read let me follow that line all the way over and it looks like it's the euro dollar okay now what I'd like to actually do in this case is now I also kind of want to make mention of when we're talking about breakouts we're looking at the duration of 20 days or 55 days that's the time frame we give to specify is it breaking out 20 days will be like a one month 55 days would be like two and a half months you're also going to notice there are a couple crossovers okay X plus one X plus one weekly the ones I want you to kind of watch also is too is if you get moving average crossovers on the weekly which is happening in the Aussie dollar actually happening there as well in the euro dollar as well and then also happening right there in the corn as well that is actually something to watch because that's actually pretty hard to cross over on the weekly chart so now let's kind of take the rest of our time we talked about copper we talked about the Australian dollar uh Canadian gold and actually Euro now some of you are actually brand new and absolutely we all start somewhere and what I want to do is I kind of want to focus on We did an index example which one do we actually do well we did we did the Dow and we'll actually come back to that in just a sec to talk about the Target and kind of how that works in the stop but I'd like to kind of use gold as our first example here now if we went back to our sheet and kind of said okay if I was going to look at a commodity and look at gold what's a ticker that we could actually look at or consider well we could look at forward slash m g c m for micro and if we actually come back to this the platform we're just going to type in forward slash n g c now if you take a look at this what I want you to notice is okay got the chart and what you're going to notice is in this case we have forward slash mgc and there is a drop down now this drop down is important when we're actually talking about kind of seeing the incremental movement what the value of that movement is worth and how much money needs to be set aside to be in a contract now if we click on the down arrow down it's going to automatically come up with the position that we have on the chart and what you're going to notice is it tells us what's the description what's the tick size so what's the incremental movement well if we actually said point one it's actually saying it really moves in dimes okay so if we kind of think just in terms of our currency okay how many dimes are in a dollar or a point well we know there's 10 of them okay so if gold goes up for example given 10 cents on a contract it's worth a dollar okay now if we said well if I go long actually gold how much money needs to be set aside and it's What's called the initial margin how much money you need to set aside to be in this position example given it needs to be 759 set aside to be long or short the contract okay now let me just kind of give you a pop quiz now I know some of you say this is Elementary but some of us are all different levels so if gold moves up a full dollar today if it does how much would it be worth what would the unrealized profit be if gold moves up a full dollar well if gold actually moves up a full dollar we know it's for every 10 cents it's one dollar unrealized profit if it goes up in our favor and if it goes up well a full dollar it'll just be ten dollars for everyone dollar moves in our favor now if it went down a dollar we'd be down ten dollars okay now let's kind of do this our first trade that we actually did and I want to kind of show you this so you could actually follow along the first trade we actually did in the margin account and the IRA is we went long gold and so what you're going to notice is uh that profit loss here today from Trading gold so far and I want to bring up the IRA the IRA right there yeah there it is we closed or we had a Target set for gold gold hit the target which I mentioned on Thursday and a matter of fact it even overshot the target a little bit so the first trade we had on gold for the year was it was a Target it was a gain of really 488 dollars we can go back was the trade placed and it gives us really we're just going to say look we want to uh only look at that past gold trade and we could actually say Well when was it entered well if I bring it up we should be able to see when that trade was placed so that first trade on gold was actually bought on the 21st and it was bought in 1827 it was exited on the sixth at 1875 so it's a little higher than what I said okay got targeted out now let's talk about gold now and where it is and could we actually consider a position on gold so that was the first trade that's what this is right there so if you kind of think about this this is like just going long to enter and exiting the position and you're really making the difference between those two levels okay let's bring up an example now I want to kind of hear your feedback on this if we looked at let's say gold do you think this might be a time to consider potential entry now let me zoom in on this and why did I kind of say the 1875.
what 1875 is really kind of it got above 1816. and then what it did is it went to the top of the channel so if you trade stocks you know that this is really a breakout of resistance and it really goes to the next level of resistance let's always do that no but this one did might an investor consider buying gold thinking that it might break out through 1875 and where might it try to go to well if we brought this up and say what's the next potential level what do you think that next level might be now when we're looking to kind of see what the potential resistance is we're looking back on the chart and saying well we're probably looking at where the old support level was previously well we had a whole lot of consolidation right here about 1918. we had a lot of consolidation kind of about the upper area about 1963 Etc these might be the next levels above where we are now so if I brought this up what you're going to notice is here we are at 1875 the path at least resistance might be 19 18. now let's simplify this if we actually said okay James from if we said we're going to set a Target at 1918 and we are currently at 1882. now James where do we see that on the right hand side there's the number right there so what we have to figure out is how many points is that can you tell me how many points is that 1918 less 1882 that's really going to be 36 points now how much is this worth per point well when we talk about points we're talking about dollars and it would actually be worth ten dollars per point so if we went up 36 points or 36 dollars we could say 36 dollars take that out 36 dollars and each dollar is worth ten dollars you can think of that as the multiplier per Point well that's going to be a potential gain of 360 dollars that's if it went up to the Target now you with me on that so if it goes from 1882 up to 1918 that's 36 dollars for every dollar it's actually worth 10. okay now so here's what I'm gonna do we're going to go ahead and actually kind of let's set a Target and a stop now if we went into this what you're going to notice is when we actually click on WE type in forward slash m g c and what you're going to notice is right down below that there's a there's an arrow we can click on the arrow and what it's going to show is the different expirations for gold now the letter mgc G23 that g is in reference to February J is in reference to April m is actually in reference to June Etc so that's the coding and you'll see that in the online course as well but where's the volume now we're talking about entering with a stop and a Target now if you say James I've done stock trading before and I've done what's called a bracket order this is the same so where's all the volume in this well you're going to see that the volume is in the one that has 21 days remaining until expiration there's the volume 32 000 today 749 and then it drops so we're going to try to stay where there's more uh volume and if we all we're going to do now imagine you were doing this as stock trading and you're going to do a bracket order how do you do a bracket order well we're going to right click on that ask price we're going to go down to where it says buy custom we're going to say with Oco bracket my gosh this is just like stocks this was kind of nice we take what we learn in stock we're learning options and we're just doing the exact same order type a bracket the first line is actually really saying in green that we're buying okay we're going long now what you're going to notice is this is the price we're saying we're willing to pay up to that price or less now again tell me what the target was can anybody remember what the target was well we actually looked and said the next potential Target could actually be 19 okay 18 was our number 1918. okay so
when we're actually saying sell at 1980 or 1918 or higher that's going to be a GTC order we don't know if that's going to be today tomorrow if ever hence GTC and the last order which is in red which is the cell where's the stop now Futures are unique in the fact that you know stocks they trade from 9 30 Eastern okay if we're talking about open market hours from 9 30 Eastern to four well these Futures are Trading 23 hours a day okay five days a week and so these trades if overnight China Europe Etc some data comes out or investors not just here U.S wise other investors throughout the world want to buy gold that price of gold can go up or down even though the technical stock market isn't open so what we're going to do is we're going to go back to the charts and kind of say okay what is maybe like a level of support well a level of support if I actually look at this some investors might say you know what James I'm actually kind of thinking about like a level support might be the 10-day EMA now I'm going to tell you right now that this this is not like the best reward risk ratio I understand that and I'm just talking I'm trying to set up a couple trades to begin with if we're talking about timing an investor might say James I'm going to set a buy limit close to support I fully understand but what I'm trying to actually do is get investors where they're comfortable to lease establish a couple positions see how they move and see how they work well hone as we go but if I said look I'm going to set a stop at let's say 10 points below that 10 period moving average well let's do it and what you're going to notice is if I did that I'm just going to set a stop at 1838 and you could run those numbers and actually say what is that potential loss it's a 50 point move down and it's each point is worth ten dollars and you can run that so this is what we're going to show entering gold law now here's what's nice is this is not a gold company there's no earnings and many companies in the stock market are going in earnings this is kind of what's nice about Futures is we're kind of isolated to uh just the price we're not uh tied to a company where the CEO the CFO did XYZ uh we don't have that this is looking at the spot price of gold for the February delivery so all we're going to do is going to go confirm and send we're going to do in the IRA account now again we could actually say well how much what's the commission per contract answer a dollar fifty on entry and a dollar fifty on exit how much money is being set aside to do the position answer 949 now if we kind of said well if someone maybe that had a lower dollar account whatever that means to someone do you think someone might have 949 dollars maybe right probably and if we actually go ahead and actually send this now I'm going to do this in both accounts what do you mean by that well we have a margin account check and we have an IRA I'm going to go one in both gonna send that and there it is so what we actually see on these charts is the green represents the entry price okay those just filled in both accounts Buy Buy and now we actually see the targets right there and the targets right there now notice what I haven't talked to you about I did not talk to you about a quote chart setup this chart setup is what we use with Stock Investing and option investing I'm absolutely fine in using this chart okay which I'll send to you so if you said hey James could I have could I use that chart sure this chart I think is actually uh a nice chart to actually kind of work off kind of talks about general direction of trend kind of where we are in relationship to uh support and resistance and the moving averages the other chart that I think is actually interesting to actually bring up which actually Ken is the one who actually uh made this and I hopefully that's this let me actually try to bring that up it's actually the whole moving average charts okay and uh it's actually this one and let me share this with you both of these charts do a very nice job in terms of just tracking Trends I'm going to send both of these to you you can actually load those and save those okay now are there any questions first off okay now we've got about seven or eight minutes left and what I want to kind of also do is kind of just go back to when we started this class two to three minutes in the first trade we actually did is we went long down we went long down because we actually said of all the indices and that's probably the natural progression you start with the indexes whether you're picking them to be bullish or let's say bearish Etc okay we chose a bullish example of Dow okay and what you're going to notice is we actually said we're gonna go long that just means that we have plus one now what you're going to notice is it was entered at thirty three thousand eight seventy eight it's at 33 908 wonder if the investor said James do we have to hold for on for any length of time no we don't have to and what you're going to notice is the investor could just say look I'm going to try to take profit whatever okay I'm just exit and they can just right click create closing order and just sell it what we're going to do right now is we're going to set a stop and we're going to set a Target now if we did that just like in stock we're going to create a closing order I'm going to go down to with oseal bracket and what we're going to do here is the first line now how do we do that again right click on that line create a closing order and let's just say put a bracket the bracket think look at my fingers right is going to be the Target or resistance and the bottom finger is actually going to be the stop so let's actually kind of look at this together and if we actually said what is the potential Target well if we actually looked at a potential Target it might just be that could it go up to that prior High well what's that prior High the prior High might be thirty four thousand 500 okay so I'll zoom in on that pretty aggressive so we can see that about thirty four thousand five hundred so let's kind of put that there right on that Target area I'm going to type in 34 500. okay now you might be thinking well we know how many points that is we're at 33 000 not 900 that's about 600 points we have to ask yourself well how much is it worth per point and we'll show that we're going to go to data GTC stop underneath now what's acting as a potential stop well if we actually did this and said okay you know what is a potential stop let's say we actually said look if we go let's say below that upper line example given that's about 33 486 well let's say we go down below that by greater than a hundred points that would be 33 386. now again we're not trying to talk about fine tuning so much we're talking about just setting them up see how they actually work and then we can fine tune from here we're talking about which ones we're talking about how to set up the orders and we actually got a day to GTC so we're long so what we're kind of forecasting is that the basket of Dow stocks would increase influencing this index level and if it actually does our goal is to sell if it goes to thirty four thousand five hundred so here we're not kind of kind of saying oh we're just doing a stock which by the way many of these Dow stocks have earnings this is when the stock investor option investor they might consider using maybe more Futures because they might not want to have just individual Holdings that might have Gap risk on unfavorable earnings in a negative fashion we also have a stop as well we're going to go confirm and send now notice if we're buying up if we're buying the contract okay and then on my paperMoney accounts showing a dollar fifty and also if we're selling a dollar fifty what we're now going to do is we're just going to send the order now what's going to happen on this chart we're going to see an upper red line with a bubble and actually a lower red line with a bubble send there it is so there's the target there's the stop and then what you're going to notice is all the way over to the right there's a chain and this is linked so if it hits the target it cancels a stop if it goes down to the stop it cancels the target it's not going to hit both okay now one of the comments was okay so by the way this list that I'm showing you is the list that we actually have that we kind of made on just the sheet of paper now what you're going to notice is this is going to be the list that we work off that Jeeps can I add something to this list if you said James I don't have your family background with cattle and I don't care about cattle that's fine you don't have to watch cattle uh or whatever uh go up or live cattle whatever you can take that off I'm just saying that's going to be something that we watch because there has been a strong Trend in that as of lately and I'm going to kind of view that as a well one of the Commodities we actually look at Beef okay where's the beef now I cannot share uh you can make your own watch list okay so if you said no let me kind of go back to the now the sheet of paper that we actually had this was the sheet of paper we said in 2023 this is going to be the list that we work with just like I did I actually kind of just took the tickers and I just typed them in with one finger now if I went to MarketWatch on the right hand side you're going to see the three lines and we're going to say create watch list okay now I just called this future class and if you want to as well we'll just call this 2023 Futures watch list okay now and then from there is we're just going to type in those symbols that we wrote down and if I did that now what you're going to see is it's going to start to make a new list and I can type in that list let me go back to that list as I wrap up here so the first trade we actually did here today was the DOW we chose the index that was the strongest the second thing we actually pulled up is we actually said okay all the Commodities is there any commodity that might be hitting let's say a 20 55 day high potential breakout we looked at the example of gold now I just want to make mention of this it's not just gold we also see this now if I said oh my gosh I forgot can I kind of go back to the quick cheek cheat sheet and say okay what is silver well silver well silver is forward slash Qi and if you actually look at Silver that is actually something that's actually gone up quite a bit as well plateaued gonna keep an eye on that okay this one went up from about 18 to about 24 and it's made higher support levels as well want to also keep an eye on this uh also copper copper has actually been quite strong in wrapping up let me take my lines off here forgive me and that's not uh let me actually take that uh that was gold m h G okay oh gotta put that forward slash there we go now if we actually look at Copper that's another one actually here today that did hit to the upside to a brand new short-term High that's another one if we had a little bit more time we could actually look at that example as well so as a takeaway we did Dao gold but what I want you to do as a takeaway assignment in the paper money account I want you to look at practice paper trading a Futures now you might say James I'm going to use the example of copper as an example given again what's the best way to learn you actually practice by putting paper money positions on practice setting targets and stops we'll talk about that more as we go but today our goal was we want to talk about kind of where the markets are Dow's still being the strongest we saw some movements in gold silver not as much but copper yes we also talked about doing two setups on the Dow in Gold we also did make mention of the purposes of Futures the educational resources that you have and also what our kind of ticker symbols will be going into this year now the last thing I'll make mention of we started talking about the futures of them we will mainly be looking at that but could an investor use options on the Futures the the answer is yes we will talk about that but we want to start with using Futures as well okay now the other comment as we close is can you share the scripts any of the scripts that I actually use in class same thing with Ken is we actually uh post all those scripts right on our Twitter page so any of the scripts I actually talk about are just right at the very top and you'll notice that it says scripts not guaranteed for accuracy but we use the same scripts as we do with stocks and options as we do in futures there's some limitations with Futures but we're going to use the same columns okay now I'm out of my time here today how many of you are kind of thinking geez maybe I didn't consider Futures in the past but it's actually something I would consider and I especially I think if you have a lot of stocks where they're announcing earnings these Futures where we don't have earnings might be an opportunity to still speculate on Direction and we talk about two examples and actually three of those if we mentioned copper as well now I'm out of my time here today remember with what we discussed it was done for example illustrative purposes only you should also review the risk Disclosure document uh as well and also remember that you want to paper trade these to really see is that this is something that you would consider the nice thing is you're really trading price movement okay and these could be moving based upon technicals or fundamentals that's causing the trend to move so there is some similarity to stocks now also remember with what we discussed it was done for again example Illustrated purposes only I'm out of my time I will be teaching the fundamental class later on coming up in about two and a half hours and we'll be also teaching tonight the advanced concept Workshop the kicks off tonight thank you Ken Rose for helping and with that said I wish you a great day as a homework assignment I want you to review the educational content on the online course and practice setting up one to two trades where you're seeing a bounce or a breakout thank you so much and next week we'll kind of hone in and talk more about kind of more of a system based plan setting targets and stops thank you so much take care
2023-01-16 19:37
