Futures Trading With ADX/ DMI
The Grain Report from Charles Schaap

 


Learn technical ADXcellence and profit in any time frame "ADXcellence:Power Trend Strategies"     

Candy says, "Don't have an opinion, have a profit."  

 Futuresmag.com Grain Report from Dr. Schaap: Grains on the Rebound    Read Dr. Schaap's grain report and then study this one minute Wheat chart - ADX tells you where the easy money is.

 

Trading Futures with ADX   also, from the CBOT   Hear Dr. Schaap teach about   CBOT - Using ADX to Trade Breakouts, Pullbacks, and Reversals 

The CME Merger and what's in it for us. Great things are available, click here and read on.    Dr. Charles B. Schaap is prowling the fields of Iowa. Click here for pictures of Charles out standing in his field. 

 

ADX is an excellent tool for trading futures.  Why trade futures?

Study Dr. Schaap's educational webinar at CBOT - Exchange News for more information.

Futures markets supply a mechanism to facilitate long-term business planning.

Temperature and precipitation are largely beyond our control, yet these factors are key in determining the supply of vital commodities such as corn, soybeans, wheat, oats, and rice. Global grain and soybean supplies fluctuate continuously, and market demand for these commodities varies constantly. As a result of these many uncertainties, commodity prices can vary substantially from day to day. So how is it that, season after season, food prices at the supermarket are relatively predictable? To a large degree, the financial effects of futures markets are responsible for this price stability. Ironically, futures markets are perceived as volatile. In fact, they provide the mechanism to ensure fairly consistent prices for grains, soybeans, and processed foods. Prices for cereal, for example, do not rise or fall to the same degree as the prices for unprocessed oats or rice. This is possible because the Chicago Board of Trade (CMEGroup®) futures markets help to stabilize food prices.
Futures and options contracts—tools to manage risk and pursue profit potential are essential for minimizing price swings and maintaining stability in a modern economy.
Going with the Grains  A world without grains—and the commodities markets in which they are efficiently traded— would be unthinkable. Grains feed our livestock. In both whole and processed forms, they provide nourishing food for our families. They are also used in an ever increasing range of nonfood products. Here are just a few of the uses: Corn — The greatest use for corn is feed for livestock and poultry. Corn also goes into many everyday food items—corn oil for margarine; cornstarch for gravy; and corn sweeteners for soft drinks, to name just a few. Nonfood uses of corn include alcohol for ethanol, absorbing agents for disposable diapers, and adhesives for paper products.  Wheat — The primary use for wheat is flour, the key ingredient for breads, pastas, crackers, and many other food products. Wheat byproducts are used in livestock feeds. Wheat is also used in industrial products such as starches, adhesives, and coatings. Oats — One of the primary uses for oats is for animal feed. As any trip down the cereal aisle of your supermarket will demonstrate, oats are also the main ingredient in many hearty breakfast foods. Additionally, oats are used in the manufacture of plastics, solvents, and other industrial products. Grains are a renewable resource, and the demand for them is great. Efficient trading of grains, combined with effective business planning, helps to ensure relatively stable food prices for consumers. Indispensable Financial Tools  Use ADX for the best return on your trade.

Futures exchanges provide two vital economic functions for the marketplace: risk transfer and price discovery. Futures markets enable those who want to manage price risk (hedgers) to transfer some or all of that risk. Futures markets also provide profit opportunities for those willing to accept risk (speculators). Efficient trading of the grain markets or the soybean complex can help to reduce seasonal volatility and maintain relatively stable prices for many products. Futures markets supply the mechanism for long-term business planning, which can improve operational profitability for farmers, processors, livestock producers, food manufacturers, and industrial users of these commodities.
Who can trade grain and soybean futures and options?
Virtually everyone. Farmers, merchandisers, processors, and other hedgers in the agricultural commodity pipeline use CBOT futures and options to manage price risk. Futures and options contracts are designed to promote better business planning, more consistent product  quality and service, and greater operational profitability. Speculators also trade grain and soybean futures and options in the pursuit of profitable returns on their investment. They provide liquidity to the market.
The Trading Process
People associate the Chicago Board of Trade with lively activity in the trading pits or with convenient access to an electronic trading platform. It is important to realize that the hallmark of the CBOT is the liquidity, integrity, and efficiency of its markets. No matter which trading platform the customer chooses, the end result is the same. When traders reach agreement supply and demand reach equilibrium. As prices are discovered, the information is relayed throughout the world.
CBOT Agricultural Complex Contracts
The CBOT provides futures, options, and serial option contracts in corn, wheat, oats, rice, soybeans, soybean meal, soybean oil and futures on South American Soybeans.
Taking Action   www.CommodityTradingSchool.com  Paul Brittain
To begin trading futures and options on futures, you can contact a commodity broker of your choice. The CBOT offers a number of publications on trading futures and options. Visit the CBOT web site at www.cbot.com. Watch Dr. Charles B Schaap's webinar, ADX and futures trading.

 

 

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