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Wednesday, November 30, 2011

How Entrepreneurs are Tapping Into a New “e-Mini” Market and Producing Cash Profits 24/7


How Entrepreneurs are Tapping Into a New “e-Mini” Market and Producing Cash Profits 24/7

You Gotta See This To Believe It!


7:03 AM

Dear Entrepreneur:

When I saw this new “e-mini” market I knew readers would be interested.

You can make money in this market and business just like entrepreneurs around the globe are doing.

I’ve shown you opportunities in the futures markets.

But…..trading full futures contracts can be very risky, and especially for new traders who haven’t learned “the ropes”.

Granted, nothing compares to the profit potential and leverage of full futures trading. But with opportunity comes serious risk.

In a small cafĂ© in Wilmington NC recently…..(Wrightsville Beach to be exact)…a fellow entrepreneur showed me this new “e-Mini” market.

I’ll show you how it works and how to make money in it.

·        I Am Not Offering Investment Advice 

The information in this week’s issue is only provided to give you a basic understanding of this new e-Mini market. It is not intended to provide specific financial or investment advice for you.
On top of that, you should not act or rely on the information without seeking the counsel of a qualified financial adviser or futures broker. They can help you determine whether this is a good fit given your financial situation. 

Okay, now that you’re scared you to death… let’s move on!

What is an e-Mini Market?

The market I’m talking about is electronic, thus the “e”. It’s a much smaller market than the traditional market, thus the “mini”.

This new market is one way to participate in the larger market without huge capital requirements.   

What’s more, the contracts in this market are really small enabling an entrepreneur or trader to get involved with less risk, leverage and capitol. 

The popularity of the “e-Mini” market is growing like crazy because it’s easy to get involved, as well as get in and out of the market quickly (this is called liquidity). 

There are more than a dozen “e-Mini” contracts you can trade, in markets such as the S&P 500, Dow, NASDAQ, Russell, grains, currencies, metals, and energies.

A New “e-Micro” Gold Futures Contract!

e-Mini futures are a great fit for most traders and investors.

But now, CME has launched a new product called the e-Micro Gold Futures contract. It’s even smaller than an e-Mini contract, which can reduce your leverage and risk even more.

These are widely traded too so you can get in and out of contracts quickly.

The Risks of e-Mini Futures Trading

In deciding whether or not you want to become involved in any type of futures trading you should be aware you could both gain and lose large amounts of money. 

In other words, you risk losing money because:

1.  You could lose all the margin funds you deposit with the futures broker to establish or maintain a futures position and lose further amounts
2.  If the market moves against your position, you may be required, at short notice, to deposit with the futures broker further monies as margin in order to maintain your position. Those additional funds may be substantial. If you fail to provide those additional funds within the required time your position may be liquidated. You will be liable for any shortfall in your account resulting from that liquidation.
3.  You could lose all monies deposited with the futures broker, and in addition be required to pay the futures broker further funds representing losses and other fees on your open and closed positions.
4.  Under certain conditions, it could become difficult or impossible for you to liquidate or close a position (this can happen when there is significant change in prices over a short period).
5.  The placing of contingent orders (such as a "stop-loss" order) may not always limit your losses to the amounts that you may want. Market conditions may make it impossible to execute such orders.
6.  The high degree of leverage that is obtainable in futures trading with the futures broker because of small margin requirements can work against you as well as for you. The use of leverage can lead to large losses as well as large gains.
7.  Futures and options trading are not appropriate for everyone. There is a substantial risk of loss associated with trading futures and options on futures. Only risk capital should be used.
8.  No representation is being made that futures and options on futures trading is appropriate for everyone or that it should be viewed as an alternative, replacement or supplemental form of income.

You should discuss these matters further with a commodity broker prior to commencing any trading.

The Trick for Reducing Risk

It’s not a secret.

There’s a risk of losing money when trading precious metals e-Mini futures.

But here are two of the best kept secrets to reduce risk.


One is with the new e-Mini futures I’m telling you about.

The other is to NEVER trade more than four contracts at a time (no matter how much money you’re making).
When I say limiting trades or “open” positions to four contracts, this doesn’t mean you can’t do this over and over and over. It simply means you LIMIT the number of contracts at any given time.

This is where the amateur traders (also known as rookie gamblers) fall by the wayside.

I know the following info is pretty technical….but it’s good to review so we’re all on the same page.

Marc’s Snapshot of e-Mini Futures Trading

A futures contract is an agreement (obligation) to buy or sell a given quantity of a particular asset at a specified future date at a prearranged price. 

Futures contracts have standard delivery dates, trading units, terms, and conditions. They can be based on any one of a number of underlying assets. 

There are futures contracts available in stock market indices, bonds, interest rates, coffee, sugar, orange juice, and agricultural commodities. 

You can even trade catastrophe futures (they deal with insurance) at the Chicago Board of Trade!

The best and most trusted futures and e-mini contracts are traded on government-regulated exchanges like the Chicago Board of Trade (the largest futures exchange) and the IntercontinentalExchange (aka ICE).

You’ll find futures exchanges in most industrialized countries.

You can find futures and e-mini prices on most financial websites on the Internet.

The total number of contracts traded on the Chicago Board of Trade and ICE in 2010 was valued at more than $800 trillion!

You can "open" a futures or e-mini position by either buying or selling a contract. 

You can "close" a futures or e-mini position by doing the exact opposite − either by selling or buying the same contract. 

If you think the price of the underlying asset will rise, you would buy a futures position. This is referred to as being "long." When you buy a futures contract and hold it to expiration, you would be required to take delivery of the underlying asset, or equivalent cash value, at a prearranged price and by a certain date.

But don't worry, only a small percentage of futures contracts are held to expiration. Most of the money is made during the life of a contract.


If you think the price of the underlying asset will fall, you would sell a futures position. This is referred to as being "short." 

When you sell a futures contract and it is held to expiration, you would be required to deliver the underlying asset, or equivalent cash value, at a prearranged price and by a certain date. 

Beginning traders often have difficulty grasping the concept of selling something they don't own. What you are doing is simply selling something on paper - via the contract. 

Take some time to study the basics of future trading and you’ll start to get a feel for it. I’ve also included some great resources in this week’s issue to help you, including world-class tutorials.

How to Make Money in the e-Micro Gold Market

In upcoming issues I’ll talk about e-Mini opportunities in the stock market, agricultural, energy, oil and even the interest rate market.

But today I’ll give you a quick lesson for making money in the e-Micro gold market.

There are basically two ways to make money in the e-Micro gold. The first way is if you believe prices will rise in the coming weeks. The second way is if you believe the prices will fall in the coming weeks.

Okay….let’s say you believe prices will go up over the next six weeks or so.

In this case you would buy one August e-Micro gold contract “at the market”. At the Market means the current prevailing price….which is the way I always trade.

Let’s say the current price is $1475 per ounce.  The size of an e-Micro gold contract is ten troy ounces. This means when you buy an e-Micro contract you “control” ten troy ounces of gold. At the current price in our example the value would be $14, 750.

Great!

Remember….You won’t take delivery of this gold or even handle the physical commodity. You’re simply trading the digital equivalent – a contract.

Let’s say gold moves up to $1500 in two weeks, and you sell the contract “at the market”. You would have made a profit of $250. Not bad but not great.

However, now buy two August e-Micro contracts “at the market”. The price moves to $1550. You own two contracts so the value jumps to $31,000. You sell both contracts “at the market”. Your profit this time is $1,000 ($50 x 10 ounces = $500 x 2 contracts = $1,000).

We use this strategy two more times but NEVER trade or hold more than four contracts at a time.

We buy three contracts “at the market” when the price is $1575, and sell all three when the price hits $1600. Our profit this time would be calculated as follows:

3 x 10 = 30 troy ounces x $25 ounce = $750.

Lastly, we buy four e-Micro August gold contracts “at the market” (at $1600). The price moves to $1650 within our six week time frame. Four contracts x 10 troy ounces = 40 x $1650 = $66,000.
$66,000 minus the price we bought ($1600 x 40 = $64,000) = $2,000 profit.

Our total profit in this hypothetical trading example would be $4,000!

If gold continues to move upward we could start over again small by trading only one contract, and increasing to ONLY four…..and then starting over again.

The beauty of trading like this is removing profits (in this case $4,000) from the table. Amateur traders and investors almost NEVER do this or have a legitimate exit strategy.

If you believed the price of gold was going down you could use this strategy to go “short” or sell contracts. In other words, you could use this strategy in reverse.

The e-Mini and e-Micro markets offer exciting profit opportunities like the one in this week’s issue.

Have fun and play nice!

Your humble host,

Marc Charles

(Ed Note:  Marc Charles is referred to as "The King of Business Opportunities" ....and for good reason. He should be known as "The King of Legitimate Business Opportunities"...because he's launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)
*** Action Strategy ***
You can practice placing trades in the e-mini market before risking a dime.
I’m serious.
If you follow the guidelines I’ve outlined in this week’s issue you can place a trade in the e-Micro gold market “on paper”.
Simply jot down the price of the contract when you place your “paper trade”.
Then utilize the buy and sell using the strategy I taught you.
Make note of your profits (or losses). And never trade more than four contracts.
In a couple of weeks you can review your “paper” profit and loss. Once you get a hang of this strategy “on paper” you can start trading using real money.
Lind-Waldoch is offering a $50,000 paper trade account for free – check it out here

***Valuable Resources ***
Futures Exchanges
Intercontinental Exchange
CME Group – Chicago Board of Trade
CME Group - Chicago Mercantile Exchange
NYSE Euronext
Global FOREX
Kansas City Futures Exchange
London Metal Exchange
Minneapolis Grain Exchange
New York Stock Exchange Euronext
Shanghai Futures Exchange
ASX
Tokyo Commodity Exchange
Winnipeg Commodity Exchange (now part of ICE)
Futures (and eMini) Brokers
Lind-Waldoch
PFG Best
R.J. O'Brien
MF Global Futures
Great Pacific Trading Company
Zap Futures
Traders Network


Recommended Books for Futures and eMini Trading
The Very Latest E-Mini Trading: Using Market Anticipation to Trade Electronic Futures by Michael Guttman
E-mini Trading Companion by George Krum (Kindle book)
The New Market Wizards
by Jack D. Schwager


All About Futures
by Russell R. Wasendorf


Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading
By Peter Brandt
Trade Your Way to Financial Freedom
by Van K. Tharp


Winning in the Futures Markets
by George Angell






Wednesday, November 23, 2011

"Is This Business a Legitimate Opportunity in THIS Economy"?

Reprinted by permission
The League of Power


Is This Business a Legitimate Opportunity in This Economy?


Question: “Marc, I know you’ve talked about reselling web hosting services. But is this business a legitimate opportunity in THIS economy?
D.J. Englewood CO


8:11 AM

Dear Entrepreneur:
Reselling web-hosting services is still a legitimate business opportunity, and especially in this economy.
Granted, entrepreneurs and business owners are not launching websites at the same jaw dropping pace. But the web is still here!
On top of that, reselling hosting services is super easy.
Granted, it’s hard to start anything when you’re low on cash. But I’ve done it many times and so can you.  
Low cash should never stop you from exploring or launching a business, you’d be amazed what you can do without money!  
Heck…you can buy real estate with no cash!
Today I’ll show you this business in all its glory.
There are two ways to approach this opportunity:
1)    You can purchase everything you need from the ground up, and monitor everything in-house.
2)    You can resell web hosting (and associated services). When you resell hosting services your main focus will be on marketing and driving qualified traffic to web-hosting parent companies.
I’ll show you the pros and cons of each approach.
Major hosting players companies like Verio, GoDaddy, Rackspace and iWeb offer world-class reseller programs to entrepreneurs.
The bottom line to making money as a reseller……
Price will always be a factor in acquiring new web hosting customers, and especially in this economy.
The major hosting players understand price is an issue and often promote low fee hosting offers in order to persuade people to switch services.
But they can’t hold pricing down forever.
The truth about large hosting companies…….
The largest web hosting companies have huge overhead, maintenance expenses, payrolls, customer service departments and constant software upgrades.
The largest web hosting companies also have the largest marketing huge budgets. This helps them acquire new customers on a consistent basis and control a lion's share of the market.
Believe me….the hosting industry has changed in a big way the past two years! Hundreds of companies went belly up, or were forced to acquire smaller hosting companies just in order to grow the revenue base.
But savvy entrepreneurs can seize niches in the hosting market for themselves.
And if you think that’s great you’ll love this…….
Starting a web-hosting business from the ground up can be very expensive. The day-to-day expenses, technical expertise and customer retention can be excruciating (not to mention costly).
Therefore, reselling Web-hosting services is a good fit for many entrepreneurs.
When you resell web-hosting services you can partner with legitimate, financially sound web-hosting companies and receive ongoing commission for the business you bring to the table.
Granted, you won't make as much money as you would if you owned web servers outright and started the business yourself.
But when you resell web hosting services you won't have most of the headaches and expenses that go with the investment.
There are literally hundreds of Web-hosting companies to choose from when it comes to selecting a reseller program.
Most web hosts offer reseller programs today.
Voxtreme in New Port Richey FL is one of the companies which offer a world-class reseller program.
Voxtreme currently serves hundreds of web-host resellers worldwide.
From what I’ve seen Voxtreme doesn’t try to compete on disk-space or bandwith - but rather on service.
Here is what Voxteme provides to their resellers:
  • WebHost Manager reseller control panel
  • Personal nameservers (ns1.yourdomain.com & ns2.yourdomain.com)
  • Anonymous shared SSL (secure webspace)
  • Hosting for multiple domains
  • Unlimited e-mail addresses, unlimited ftp accounts, unlimited MySQL databases, unlimited subdomains, unlimited mailing lists, unlimited e-mail forwarders
  • POP & SMTP mail servers
  • Full IMAP support
  • Webmail (Neomail, SquirrelMail, and Horde)
  • Full CGI-BIN support
  • Full e-commerce support (shopping cart included)
  • Multiple cPanel themes
  • Fantastico autoinstaller for many popular scripts (such as message board scripts and shopping carts)
  • Latest stable versions of many popular development languages, including PHP, Perl, and Python
I know this is a bunch of technical jargon. It puts me to sleep too! But in this business it helps to know some of the techno jargon.

One upside to reselling web-hosting services it really doesn’t require any technical expertise! And that's what makes reselling Web-hosting services so unique.  You can let someone else handle all the technical issues (and headaches).

You can focus on marketing, acquiring customers and closing sales (done almost entirely online).

Companies like Voxtreme usually handle all of the support, billing, software upgrades and customer service.
Two ways to resell hosting services…….
The first way is to rent space on an existing server and resell it. This is called semi-dedicated reselling.
The second way is by renting or leasing an entire web-server and reselling the space. This is called dedicated reselling.
Each has its own benefits and features. You'll need to decide which one is best for you.
But I like the idea of reselling hosting services without the hassle of billing, answering questions, technical support, and customer service.
Most Web-hosting reseller programs enable you to sell their services and receive ongoing commissions as long as a client remains with the company. That's a big deal, because most people stay with their Web host a long time!
Your humble host,

Marc Charles

(Ed Note:  Marc Charles is referred to as "The King of Business Opportunities" ....and for good reason. He should be known as "The King of Legitimate Business Opportunities"...because he's launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)

***Action Strategy ***
Determine if you’d like to start a web-hosting service from the ground up (and keep a lion’s share of profits) or resell web hosting services.
If you choose to start this business from the ground up you can buy or rent a dedicated server an existing host.
If you go with this strategy you'll need some technical expertise (or retain someone to help you).  You can find a boatload of freelance administrators on oDesk.com, DICE.com and WarriorForum.com.
If you rent a server and resell Web-hosting space on it, you won't need any technical expertise. Large hosting companies typically provide technical expertise for a small fee. This is my favorite option.
The other option is to resell the Web-hosting services.  
You won't make as much money if you resell hosting services. Reseller commission rates vary with each hosting provider but tend to be a percentage of each month’s bill.
When you resell hosting services your focus will be on marketing, acquiring new hosting clients and earning attractive commissions (without the headaches!).
Web-hosting companies with world-class reseller programs:



Targeted Email Newsletters (use these to advertise web hosting services and reach qualified prospects)
Email Newsletter and Ezine Directories (you can find hundreds of newsletters and ezine to promote web hosting services)

Reach Qualified Hosting Prospects with PPC Advertising

Viable PPC / CPC Networks
Google (expensive)
Yahoo! / Bing (expensive)
Chitika (fair traffic)
Bidvertiser (fair traffic)
Infolinks (weak traffic)
Kontera (weak traffic)
Clicksor (fair traffic)
Exit Junction (weak traffic)
ValueClick (weak traffic)
TextLinkAds (weak traffic)
Gmail AdWords (expensive but good)
7Search (inexpensive but super low volume)




There are tens of thousands of places that you can advertise in order to reach these targeted audiences. But here's a list of e-zine publishers and directories to help you:





***** Action Strategy *****
You can start reselling web hosting services in just a few minutes. Check out the reseller programs with large web hosting companies in this issue. I’m confident you’ll find a good fit.

Reselling web hosting services will free you up to focus on marketing. You can advertise your services and redirect prospects to the large hosting company’s website. You’ll receive a unique ID which identifies you as a reseller, and thus payments will be made to you!

Another way to approach this business is to buy or rent a web server. Again you can do it yourself and store the web server in a secure location. Or you can buy and store a web server with a large web hosting company.

There are variations on these two strategies too, I’m confident your mind will be spinning with ideas!

The best target audiences for Web-hosting services are obvious any person, company or nonprofit agency currently hosting a website.

But more specifically, I recommend focusing on these markets:
Small to medium-sized businesses with active websites
Professional webmasters and developers
Non-profit organizations with active websites
Sports organizations
Restaurants, hotels, inns and resorts
Retail businesses

Have fun and play nice!

Please keep me posted on your success.



*****Valuable Resources*****



Reseller Panel (excellent resource and reseller program

Web Hosting Talk (news, insight, forum and more)


AskMarcCharles (submit comments, a business idea or questions)


Saturday, November 19, 2011

A Proven Method for Producing Cash!

Reprinted by permission
The League of Power


Shake Your Money Maker!

A Proven Method for Producing Cash in a Nonstop Market without Losing Your Shirt


7:03 AM

Dear Entrepreneur:

This business has made some people very rich, including myself.

Most people don’t think of the commodity markets as a business. 

But believe me, if you approach this market as a business you’ll probably make (and keep) more money.

You CAN and WILL lose money in this business.

My first few trades were horrendous. On one trade I lost about $1,000. I thought my trading career was over!

After my third year in this business I took a break with my family and we traveled for 6 months. I was debt free, with a nice bank account and I owned my homes free and clear (still true).

Anyway, I won’t bore you with ridiculous theories or sell you something you MUST to be a success in this market. 

But I’ll be brutally honest with you. 

Don’t kid yourself….this business is not for everyone. 

On top of that, there are risks involved and you can lose a heck of a lot of money too. 

But I’ll show you how to reduce risk and approach this business like a seasoned professional.

Let’s get to it!

The good news… 

The commodity market is a multi-trillion dollar global cash machine.
Contrary to what most people think, you won't lose your shirt if you approach this market like a (successful) professional trader.

The money-making potential of this business is unlike anything you have ever seen before.

I started trading commodities from the local library, and eventually from a back bedroom in my home. 

You can trade commodities from anywhere in the world. 

You can do this from a PC, laptop, iPad or iPhone or with no computer or Internet connection….but obviously, almost everything is done online today.
I've even traded commodities at 35,000 feet on a flight from Chicago to Boston.

It doesn't take a lot of money to open an account either. 

Most commodity brokerages require an initial deposit of $5,000, but some require only $2,500 if you trade “mini” contracts (about the tenth of the size of standard contracts)

But let’s get real… 

You may need more than a minimum deposit in your account.

If you don’t want limit your downside risk and eliminate the need for a margin account then consider trading exchange-traded funds or ETFs. There are hundreds of ETFs which trade commodity markets.

Marc’s Commodity Cheat Sheet

A commodities futures contract is an obligation to buy or sell a given quantity of a particular asset at a specified future date and at an agreed-upon price.
Futures contracts have standard delivery dates, trading units, terms, and conditions. 

And they can be based on any number of underlying assets. 

Futures contracts are available for every conceivable market including: stock market indices, bonds, interest rates, coffee, sugar, orange juice, cocoa, oil, natural gas and dozens of agricultural commodities.

You can "open" a futures position by either buying or selling a future. 

You can "close" a futures position by doing the opposite - either selling or buying the same future. 

In practice, most futures contract positions are "closed out" before they expire. 

If you hold a commodity futures contract to the expiration date, you would have to take physical delivery of that commodity, or settle in cash. 

Obviously, most commodity traders have no interest in the physical asset. Most traders are looking to make money over the duration of the trading period.

If you believe that the price of the underlying asset will rise, you would buy a futures contract - taking what is known as a long position. 

A long position commits you to take delivery of the underlying commodity, or equivalent cash value, at a prearranged price and by a certain date.

On the other hand, if you believe that the price of the underlying asset will fall, you would sell a futures contract - taking what is known as a short position.
A short position commits you to deliver the underlying shares, or equivalent cash value, at a prearranged price and by a certain date.

As with the stock market, you can place "stop-loss" orders above or below your entry points to make sure you lock in profits when the market rises or limit your losses when the market falls. Stop loss orders are a great tool for limiting risk and locking in profits, I’ve always used them.

The best futures contracts are traded on government-regulated exchanges such as Chicago Board of Trade (the largest futures exchange), the Chicago Mercantile Exchange and the Intercontinental Exchange or ICE.

You’ll find commodity exchanges in most industrialized countries.

An "Insider" Commodity Trading Strategy Used by the Pros

Amateur traders typically trade like they're on a weekend trip to Las Vegas.
Amateurs become excited when they have a big winning trade (I was in this group when I started out too!).

As a result, amateur traders don't know when to stop or remove profits.

Successful traders on the other hand don't get emotionally charged after a winning trade. The most successful traders I’ve spent time with approach the market with a calm assurance. 

Okay…let’s take a look at a hypothetical trade in the corn futures market. 

Corn futures are one of the most popular agriculture commodities. (Other “ag” commodities include soybeans, soybean meal, soybean oil, wheat, rice, oats, and barley.) 

Each corn futures contract on the Chicago Board of Trade consists of 5,000 bushels. The deposit (or margin) to control this contract is around $500 (give or take a few dollars).

Every time the price of corn moves one cent in the futures market, the value of the futures contract increases or decreases by $50 USD. 

For example, if the price of corn on the futures market closes up five cents this means the value of one corn futures contract would increase $250. 

If you bought one corn futures contract when the market opened and sold it after the contract had gained five cents you would have made $250 (less any exchange or brokerage fees). The corn market is fairly predictable and usually trades within a 20-cent range. 

Okay, on to our hypothetical trade……

The most important aspect to this “insider’s” strategy is to limit the amount of contracts you hold, systematically remove profits…..and perhaps the most important thing…start over again small.

So let’s say we purchase one corn futures contract at the market (prevailing price). 

The contract closes up 10 cents on the first day. But let’s say we hold it and don't sell. 

Over the next few days, corn futures close up another 20 cents – and now we decide to sell it.

In this scenario, you would have made $1,500 (30 cents x $50 = $1,500).
But instead of celebrating we continue with our strategy. 

Important Tip: There are basically two ways to approach the commodity markets. If you Google this you’ll see its true. You can base trades on a technical or a fundamental point of view. A technical view is the use of charts, cycles, Elliott Waves, and mathematics etc. A fundamental view is on opinion based on supply, demand, weather, and crisis, etc. If you can use both approaches so much the better.

Okay, let’s get back to our example…

After you sell the one corn futures contract, the next step is to buy two corn futures contracts. 

This may sound confusing but it’s not!

The idea as I said is to trade through a series of four trades. In other words limit the number of contracts you hold.

If you draw this strategy on a piece of paper it would look like an inverted (upside down) pyramid

It would look something like this
Buy 1 contract - and then sell it
Buy 2 contracts - and then sell them
Buy 3 contracts - and then sell them
Buy 4 contracts - and then sell them (Level 4)
Remove profits and start over again small
Shake Your Money Maker!

A Proven Method for Producing Cash in a Nonstop Market without Losing Your Shirt


7:03 AM

Dear Entrepreneur:
This business has made some people very rich, including myself.
Most people don’t think of the commodity markets as a business.
But believe me, if you approach this market as a business you’ll probably make (and keep) more money.
You CAN and WILL lose money in this business.
My first few trades were horrendous. On one trade I lost about $1,000. I thought my trading career was over!
After my third year in this business I took a break with my family and we traveled for 6 months. I was debt free, with a nice bank account and I owned my homes free and clear (still true).
Anyway, I won’t bore you with ridiculous theories or sell you something you MUST to be a success in this market.
But I’ll be brutally honest with you.
Don’t kid yourself….this business is not for everyone.
On top of that, there are risks involved and you can lose a heck of a lot of money too.
But I’ll show you how to reduce risk and approach this business like a seasoned professional.
Let’s get to it!
The good news…
The commodity market is a multi-trillion dollar global cash machine.
Contrary to what most people think, you won't lose your shirt if you approach this market like a (successful) professional trader.
The money-making potential of this business is unlike anything you have ever seen before.
I started trading commodities from the local library, and eventually from a back bedroom in my home.
You can trade commodities from anywhere in the world.
You can do this from a PC, laptop, iPad or iPhone or with no computer or Internet connection….but obviously, almost everything is done online today.
I've even traded commodities at 35,000 feet on a flight from Chicago to Boston.
It doesn't take a lot of money to open an account either.
Most commodity brokerages require an initial deposit of $5,000, but some require only $2,500 if you trade “mini” contracts (about the tenth of the size of standard contracts)
But let’s get real…
You may need more than a minimum deposit in your account.
If you don’t want limit your downside risk and eliminate the need for a margin account then consider trading exchange-traded funds or ETFs. There are hundreds of ETFs which trade commodity markets.
Marc’s Commodity Cheat Sheet
A commodities futures contract is an obligation to buy or sell a given quantity of a particular asset at a specified future date and at an agreed-upon price.
Futures contracts have standard delivery dates, trading units, terms, and conditions.
And they can be based on any number of underlying assets.
Futures contracts are available for every conceivable market including: stock market indices, bonds, interest rates, coffee, sugar, orange juice, cocoa, oil, natural gas and dozens of agricultural commodities.
You can "open" a futures position by either buying or selling a future.
You can "close" a futures position by doing the opposite - either selling or buying the same future.
In practice, most futures contract positions are "closed out" before they expire.
If you hold a commodity futures contract to the expiration date, you would have to take physical delivery of that commodity, or settle in cash.
Obviously, most commodity traders have no interest in the physical asset. Most traders are looking to make money over the duration of the trading period.
If you believe that the price of the underlying asset will rise, you would buy a futures contract - taking what is known as a long position.
A long position commits you to take delivery of the underlying commodity, or equivalent cash value, at a prearranged price and by a certain date.
On the other hand, if you believe that the price of the underlying asset will fall, you would sell a futures contract - taking what is known as a short position.
A short position commits you to deliver the underlying shares, or equivalent cash value, at a prearranged price and by a certain date.
As with the stock market, you can place "stop-loss" orders above or below your entry points to make sure you lock in profits when the market rises or limit your losses when the market falls. Stop loss orders are a great tool for limiting risk and locking in profits, I’ve always used them.
The best futures contracts are traded on government-regulated exchanges such as Chicago Board of Trade (the largest futures exchange), the Chicago Mercantile Exchange and the Intercontinental Exchange or ICE.
You’ll find commodity exchanges in most industrialized countries.
An "Insider" Commodity Trading Strategy Used by the Pros
Amateur traders typically trade like they're on a weekend trip to Las Vegas.
Amateurs become excited when they have a big winning trade (I was in this group when I started out too!).
As a result, amateur traders don't know when to stop or remove profits.
Successful traders on the other hand don't get emotionally charged after a winning trade. The most successful traders I’ve spent time with approach the market with a calm assurance.
Okay…let’s take a look at a hypothetical trade in the corn futures market.
Corn futures are one of the most popular agriculture commodities. (Other “ag” commodities include soybeans, soybean meal, soybean oil, wheat, rice, oats, and barley.)
Each corn futures contract on the Chicago Board of Trade consists of 5,000 bushels. The deposit (or margin) to control this contract is around $500 (give or take a few dollars).
Every time the price of corn moves one cent in the futures market, the value of the futures contract increases or decreases by $50 USD.
For example, if the price of corn on the futures market closes up five cents this means the value of one corn futures contract would increase $250.
If you bought one corn futures contract when the market opened and sold it after the contract had gained five cents you would have made $250 (less any exchange or brokerage fees). The corn market is fairly predictable and usually trades within a 20-cent range.
Okay, on to our hypothetical trade……
The most important aspect to this “insider’s” strategy is to limit the amount of contracts you hold, systematically remove profits…..and perhaps the most important thing…start over again small.
So let’s say we purchase one corn futures contract at the market (prevailing price).
The contract closes up 10 cents on the first day. But let’s say we hold it and don't sell.
Over the next few days, corn futures close up another 20 cents – and now we decide to sell it.
In this scenario, you would have made $1,500 (30 cents x $50 = $1,500).
But instead of celebrating we continue with our strategy.
Important Tip: There are basically two ways to approach the commodity markets. If you Google this you’ll see its true. You can base trades on a technical or a fundamental point of view. A technical view is the use of charts, cycles, Elliott Waves, and mathematics etc. A fundamental view is on opinion based on supply, demand, weather, and crisis, etc. If you can use both approaches so much the better.
Okay, let’s get back to our example…
After you sell the one corn futures contract, the next step is to buy two corn futures contracts.
This may sound confusing but it’s not!
The idea as I said is to trade through a series of four trades. In other words limit the number of contracts you hold.
If you draw this strategy on a piece of paper it would look like an inverted (upside down) pyramid

It would look something like this

Buy 1 contract - and then sell it
Buy 2 contracts - and then sell them
Buy 3 contracts - and then sell them
Buy 4 contracts - and then sell them (Level 4)
Remove profits and start over again small

Let’s say the market drops. We don't panic because we know the market goes up and down all the time. We’re confident corn prices will continue to rise, and 
let’s say they do.

The market closes up 20 cents by the end of the week, and you sell the two corn futures contracts. 

On this second level you would have made $2,000 (20 cents x 2 contracts = 40 cents x $50 = $2,000)

Important note: Trades on the futures market are immediate. This is especially true for markets with large volume and open interest, like corn. The volume and open interest for the corn futures market on the Chicago Board of Trade is huge. When you place an order to buy or sell, it's filled almost instantly.

Okay, in our example we’ve made $3,000 through two series or levels of trades ($1,000 + $2,000 = $3,000). 

The following week, you buy three corn futures contracts. 

This time, there are rumors flying around about serious floods in the Midwest.
This news affects the price of corn in a big way. Corn prices jump 25 cents in two days. 

By the end of the week, corn futures prices are up 50 cents - and we sell all three contracts. 


How much did we make on this third level?

Well……3 contracts x 50 cents = 150 cents x $50 = $7,500.
The total profit to date through three levels of trades is $10,500 ($1,000 + $2,000 + $7,500 = $10,500).

In reality the markets are rarely this predictable.  Let’s say on the following Monday, the price of corn plummets 30 cents!  

But by Wednesday the prices recover and start to climb again. 

This time, you buy four corn futures contracts. The prices inch upward… and then stay flat the rest of the week.

The following week prices shoot up and by Wednesday, the price of corn is up 35 cents. We decide to sell all four contracts.

Your profit on this fourth level of trades is $7,000 (35 cents x 4 contracts = 140 cents x $50 = $7,000).

The bottom line profit through these four levels of trades calculates as follows:
Level 1: $1,000
Level 2: $2,000
Level 3: $7,500
Level 4: $7,000


Total profit: $17,500!


But remember… after we’ve complete these 4 levels of trades, we must remove all profits and start over again small. If we don’t start over again small we could be holding dozens of even hundreds of contracts – and prices could collapse at the drop of  a hat.

We must contain and reduce risk at all costs. This is how (successful) professional traders do it.

The three most important things to remember about this strategy are:
1) Pyramid your positions through 4 levels or series of trades.
2) Remove all profits
3) Start over again small

After you’ve become familiar with this strategy, and have dozens of successful trades under your belt, you could increase the number of contracts you trade.
But in my experience, for the first few years, four contracts is the highest number any new trader should hold. There’s no reason to hold more than four contracts at a time.

That's how the most successful professional commodity traders do it.
Can you see why people are attracted to the commodity futures market?

Your humble host,

Marc Charles

(Ed Note:  Marc Charles is referred to as "The King of Business Opportunities" ....and for good reason. He should be known as "The King of Legitimate Business Opportunities"...because he's launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)

*** Action Strategy ***

The best way to get a feel for this business and commodity trading is to “paper trade”.

And get this…you won’t risk a dime “paper trading”!

You can apply the Insider’s Strategy I showed to you in today’s issue. Start applying the strategy today to see if it works.

Granted, real time trading with real money is NOT paper trading. There are real risks involved when you risk hard earned cash.

And make no mistake…..I am NOT imparting financial or trading advice to you. 

Please seek the counsel and advice of “wise” qualified financial professionals, especially those with commodity trading expertise. A wise and competent professional will tell you whether you are in a position to trade commodities.
But do not let risk scare you from leveraging opportunities.

If the risk of commodity trading is too rich for your liking then take advantage of dozens of inverse commodity based exchange traded funds (ETF) that are available on the market. These can be quite profitable as well!
Make the decision to continue your commodity trading education.

*****Valuable Resources *****
Top World Commodity Futures Exchanges
Intercontinental Exchange
CME Group – Chicago Board of Trade
CME Group - Chicago Mercantile Exchange
NYSE Euronext
Global FOREX
Kansas City Futures Exchange
London Metal Exchange
Minneapolis Grain Exchange
New York Stock Exchange Euronext
Shanghai Futures Exchange
ASX
Tokyo Commodity Exchange
Winnipeg Commodity Exchange (now part of ICE)
Commodity Brokers
Lind-Waldoch
PFG Best
R.J. O'Brien
MF Global Futures
Great Pacific Trading Company
Zap Futures
Traders Network
NEW Recommended Books

How to Make Profits Trading in Commodities: A Study of the Commodity Market  by W.D. Gann

Market Wizards: Interviews with Top Traders
by Jack D. Schwager

The New Market Wizards
by Jack D. Schwager

Agricultural Options
by George Angell

Winning in the Futures Markets
by George Angell

All About Futures
by Russell R. Wasendorf

Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading
By Peter Brandt
Trade Your Way to Financial Freedom
by Van K. Tharp