Trading Crude Oil Futures (Part II)

By Ahmad Hassam

You must have been surprised because many people think that trading crude oil futures is only for the hedge funds or really wealthy people. Well, you can trade crude oil futures if you want to. But don't do it without getting a good training. You might have heard some of your friends talk about trading crude oil futures. Trading crude oil futures can be highly profitable if you know how to do it. Natural whatever you do in life requires good training. So don't try to trade crude oil futures contracts without proper training.

Every day perhaps billions of dollars worth of crude oil gets traded. You must be thinking that crude oil contracts get traded between the oil producing countries like Saudi Arabia, Russia, Nigeria and so on with non oil countries. Now to your surprise, New York Mercantile Exchange (NYMEX) is considered to be the hub of crude oil trading in the world. You should be aware of the power of crude oil in the global economy. Crude oil trades around the world. Crude oil is one of the most heavily traded commodities in the world.

Light Sweet Crude is the high grade, low sulfur content crude oil that is more easily refined than the thicker oils. Now crude oil coming out of some of the Venezuelan and Saudi Arabian Oil wells contains high sulfur content and requires special refineries that only process the high grade sulfur crude oil. On the other hand Iraqi oil is close to the ground and has very low sulfur content. Ever heard of Light Sweet Crude? Sulfur content in oil is considered to be very important. Lower the sulfur content in crude oil, the easier and less costly will be its refining. The higher the sulfur content in the crude oil, the more expensive its refining will be.

The NYMEX contract for the light sweet crude is the most liquid of all the crude oil contracts. A standard crude oil contract is based on 1,000 barrels of crude oil that will be delivered to Cushing Oklahoma. The E-mini crude oil contract trades on the Chicago Mercantile Exchange (CME) GLOBEX platform and is cleared at NYMEX. It is based on 500 barrels of crude oil.

A barrel of oil contains 42 US gallons. Crude oil is traded in US dollars per barrel. In other words, the price of crude oil is quoted in US dollars per barrel. Now trading at NYMEX can be open outcry during the regular treading hours as well as electronic web based trading after hours.

Open outcry trading takes place between 10: 00 AM EST to 2:30 PM EST. After hour trading takes place on NYMEX ACCESSS system, an internet based trading platform starting at 3:15 PM EST Monday through Thursday and ending at 9:30 AM EST the following day. Sunday trading starts at 6:00 PM EST.

Now you must know this thing that real companies have huge trading desks with hundreds of traders all betting on the price of oil. Oil markets are about real people trying to figure out how much oil they would need in the next few months to years to run their businesses regardless of whether they are suppliers or users. Trading crude oil futures contracts require you to be in tune with the market sentiment. Trends in crude oil market don't develop suddenly and they don't reverse suddenly. This is something good for you as a crude oil futures trader. It's always good to visit the website of the exchange to know more. You can visit the website of NYMEX and read a more about the crude oil trading that takes place at that exchange. Trading oil markets requires constant vigil on your part in monitoring the global supply and demand of crude oil. You will need to know which country supplies how much and what the productions quotas are for the time being. This is pretty scary stuff.

As a crude oil futures trader you will need to know how to handle the seasonal cycle in the oil market as well as the weekly cycle. Now every week usually on Wednesday the American Petroleum Institute (API) and the US Energy Information Agency (EIA) releases their weekly supply data reports. If you want to trade crude oil futures than you should know Mark Soberman! What you need to do is click on the link on the left that says FREE EVIL GENIUS TRADING KIT. This trading kit is from Mark Soberman. Don't worry its 100% safe and legal. You only need to come out of your comfort zone. Download the free kit and find a unique method to trade the crude oil futures! When a trend in the crude oil market develops, it may last for a few months to a year. It all depends on the global supply and demand situation of the crude oil. If you can spot a trend in the crude oil market in its early stage and ride it till its reversal, you can make a good profit. Now, just keep this in mind that crude oil prices are highly susceptible to global geopolitical situation and react violently to any political global uncertainty. - 23200

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Trade Dow Futures . Learn Commodity Trading !

Today's Hot Stocks Is The Answer In Uncertain Economic Markets

By Tim Tolands

It's so hard to predict market trends in the current economic climate. Firms that have seemingly been around forever disappeared overnight. Long term investments are tricky and often don't make the profits you are seeking. It's hard to find the best investments.

These newsletters are very much like the systems of today that are automated to pick the winning stock for the trader. These robotics simply a software or programs that are fully automated and can be left behind to do the picking of winning stocks for you. On the other hand, the newsletters also do the same purpose, pick the winners, only at a much lower price.

Some however are doing wonders for many stock traders now and are giving them quite an attractive profit. One of them must be Today Hot Stocks. It is an online stock trading newsletter designed to pick stocks that it predicts to be winners and thereby allow the trader to earn profits without the need to study the market continuously.

These stocks are expected to give you great returns on the money you have invested regardless of the economy's state. No recession are supposed to hinder the earnings you can get from Today Hot Stocks. Its creator went on to show various statistics of the earning it made during the year of the greatest meltdown ever, 2008.

The year 2008 has become a benchmark for many traders already. If your system or software manage to earn you a decent profit during this year, that mean you have in your hand a tool that is working well. It also means that you will most likely gain profits through it in the following years when the economy improves.

Subscribers have praised Today's Hot Stocks for the timely and accurate information that has helped them make profits even in an unpredictable market. The strategies suggested in the newsletter have been proven winners. If you would like to see what other serious traders have to say, go to http"//www.todayhotstocks.com.

The software was designed by a programmer who was also an experienced trader. He understands the factors that effect the market and was able to incorporate his knowledge into the program. The system is not hampered by human feelings that can mislead traders.

Equipped with this knowledge and the skills and expertise to be able to do them, he compiled all these, based on his thorough study of all the pertinent stock market information, and come up with his suggested stocks which he predicts are likely to gain him earnings. These are all in his newsletter that he offers to you.

All you will have to do is read your e-mail and decide the amount you will put on the stocks. Then, you can already sit and relax and wait for your profits. Too good to be true? Well, that is the beauty of the human brain. Everything can be done and thought of. Solutions to problems are slowly and carefully crafted and this system is surely one of them.

It is up to you if you will want to subscribe to this newsletter or if it can answer your needs. You may even get other bonuses upon subscription and get a money back guarantee if not happy with its contents and the results it can give.

The cost of a subscription to Today's Hot Stocks is just $47.00. The information you receive should pay for the cost many times over. - 23200

About the Author:

Click here for more on hot stock market and stock trading newsletter.

ETF Trading Strategies

By Patrick Deaton

Most ETF traders have their favorite ETF trading strategies. Some traders have used the same methods and strategies since they started trading. Others found the most effective strategy after trying some methods and developing a strategy that was effective for them. ETF trading strategies are designed as a whole to meet the individual needs of individuals. Some of the strategies are created for people who will be working with their trades on a regular basis. Others are made for people who will mix their ETFs with other stocks in a portfolio.

A popular trading strategy is the Buy and Sell Points strategy. A trader using this strategy will need to do some research and analysis on the sector or company that they are considering trading. However, this strategy has proved very successful for most traders. Once the buy and sell points have been set a trader is not required to deal with the trade again until it hits its buy or sell point.

Investing time and effort in finding the realistic and accurate buy and sell will require the trader to use many tools. Some of these tools include analytical graphs and charts that help to compile historical data. There are many websites that offer different types of calculators that provide assistance in developing the types of trend data that is needed.

The data collected will reveal trends and patterns from a historic perspective. A trader will be able to calculate when the highs and lows occurred for that sector or company, what their historic price for stock was, trading volume and other data that will help the trader to spot important trends that occur on a regular basis.

Like many of the ETF trading strategies, the buy and sell points strategy uses technical indicators to spot trends and patterns. Through the use of historical data a trader is able to identify points when the stock has reached highs and lows and find the pattern that caused these trends. If a pattern indicated a low at a specific time of year over a historical time period, then the trader would sell right before that drop when the stock was at a high. In this way, the trader could sell high, then repurchase the stock when it was at its lowest.

Through the effective use of analytical tools and data a trader can get a visual representation of a sector or company's performance over a period of time. When performing the historical data and compilation of factors that determine the buy and sell points a trader does not consider any fundamental factors regarding the sector or companies within it.

This strategy and the decisions that are made based on the data are technical and there is no personal or fundamental information about the sector or company taken into account when making one's calculations. Many investors who are new to trading find that this can be very difficult if they have a personal interest in a sector or company.

An individual who is exploring the different ETF trading strategies available will find that there are strategies for every type of trader. Many are hybrids of more basic trading strategies that have been used for many years. By doing the necessary research and discussing one's plans and methodology with a professional who has experience and expertise in ETFs and their structure and strategies, an individual will be able to find the strategy that will be best suited for their needs. - 23200

About the Author:

Learn how it's very possible to make 6% per month in your investment accounts using etf trend trading! "Big A" is a recognized expert in the world of etf trend trading system and reveals etf secrets that have been kept under wraps by hedge traders for years. Give him your email and get a free report and webinar today!

How To Pick An Affordable Dream Property

By Billy Chen

As you contemplate to buy your first home, always do a self appraisal on what kind of property you can afford and what kind of property you want. If the answer to the first question points to the direction of buying, then start to plan on your house search that will move you closer to your dream home.

Sometimes it is difficult to choose between staying put as a renter and making that purchase decision. Fortunately there are always indicators you can count on to check if you are indeed prepared to make that all important decision.

If you are young and fairly new in the work force, you will, of course, look for a mortgage to help fund this purchase. So it makes sense to compare mortgage rates and opt for the more appealing lender's term. You will need to know the basic costs involved in buying a house. This way, you will make sure that the property you are eyeing is definitely within your reach.

First-time home buyers tend to overlook the initial minimum amount requirement, the potential depreciation in home value, insurance payment, and the associated costs of the home acquisition transaction. Other things that often do not get factored in can be the house maintenance cost, relocating costs and buying of a whole lot of home accessories.

After you have sorted out on the financial aspect of your home acquisition plan, then think about owning a previously occupied home or a brand new one. There is no right or wrong answer, so long you think it works for you, then just go for it.

You will be enticed by the slick furniture, state-of-art amenities and freshly painted rooms bundled in the new built home. On the other side of the coin, tastefully done home additions and good neighborhood would add value to the existing homes.

It is never just another day in the office.For example you don't want to fall behind on your mortgage payments as the huge debt would place severe stress on you.There are going to be simply too many questions in tackling this task. If not handled correctly, it may lead to dire financial situation.

You will have to learn to live more prudently so your finances would not be unduly taxed. Buying and owning a new home can be a tiring process. You will find yourself constantly working on your finances and at the same time, you will be overwhelmed by the repair and maintenance cost.

But always remember to gauge your next home according to its affordability, and not judge it on what you want. Instead you should pick a dream house among those that carry affordable price tags lest it won't upset your family's finances. Taking care of the long term housing need for yourself and your family is obviously noble, and it should be one of the more important priorities in you to ensure a peaceful, normal family life. - 23200

About the Author:

Looking to find the best deal on Chinese Property Site , then visit our site to find the best advice on Singapore for you.

Master Limited Partnership (Part I)

By Ahmad Hassam

Investing in commodities may be something that investors thought of boring and dull only a few decades back but not anymore now. If you are interested in investing in companies that are involved in the production, transformation and distribution of commodities, than one of the best ways to do so is through investing in the Master Limited Partnership (MLP).

The shares that an MLP issues are called Units and the investors who own them are known as Unit Holders. MLPs are public entities that trade on public exchanges. An MLP issues shares that trade on an exchange just like a company stocks that trades on an exchange. You can invest in an MLP by buying its shares on an exchange.

Right now there are not many MLPs in the market. You will only find 3-4 dozen MLPs listed in the different stock exchanges. When you invest in an MLP, you are essentially investing in public partnership. There are tax advantages to investing in MLP. Unlike regular corporations, an MLP is only taxed once. Now most of the MLPs trade on the New York Stock Exchange. A few MLPs also trade on the NASDAQ and the AMEX. Tax exemption on MLPs gives them certain benefits that other companies in the same industry lack. There is a tax exemption on MLPs. You must be curious how this tax advantage works out. Because of

There is a tax exemption on MLPs. You must be curious how this tax advantage works out. Because of Congressional Legislation, any MLP that derives 90% or more of its income from the production, distribution and transformation of commodities qualifies for this tax exempt scheme.

Tax exemption means that MLP have to generate a lower rate of return as compared to other companies competing with it in the same sector. Since an MLP has got the tax exempt status it will only have to generate only $1.54 for each dollar that you invest in it. Suppose you invest $1 in the stocks of a regular corporation and you are in the 35% tax bracket. Corporate tax is 30% of its before tax income. This means that for each dollar that you invest you need to get at least $1/ (1-0.35) =$1.54 just in order to breakeven. So the corporation will have to generate $1.54/ (1-0.3) =$2.2 for each dollar that you invest in order to return you $1 after tax profit.

The role of a GP is very important in an MLP. You as an investor in the assets of MLP might have a very limited role or say in its running. You can think of yourself as a sleeping partner in the MLP. In most cases, the majority of these GPs in MLPs are other corporate entities setup with the specific purpose of running an MLP. This tax advantage gives an MLP competitive advantage as compared to other corporations when competing for assets. This means a huge advantage for an MLP. Now an MLP is run by a General Partner (GP). But you don't have to worry much about the GP. Most GPs do a good job of running the MLP as it is in their financial interests. GPs know that if they don't make sound management and investment decisions, most of the investors my eventually deicide to divest themselves from the units of the MLP. Now you must know as a limited partner in an MLP, you have limited voting rights. This means when you invest in an MLP, you are giving away the keys of ownership to the GP. This means you are out of the decision making in an MLP.

Investing in MLP units can give you quarterly cash flows as well as appreciation of the unit price. An MLP is obligated to distribute all available cash back to its unit holders on a quarterly basis, so you will be getting a quarterly income from your units. Secondly as the MLP expands and grows overtime, its units may give you capital gain as well. - 23200

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Trade Dow Futures . Learn Commodity Trading !