Ideas about making money

Trading Futures online has been a very slow process for me. I have tried several different methods.

Some have worked better than others. My latest success has been with a method called scale trading. 

Scale trading is basically a buy and hold strategy, where you try and pick a commodity that has some fundamental reasons for maintaining a price level and as the price drops you buy more.

Then as the price goes up you sell at predetermined levels locking in a small profit on each trade.

I just finished a scale trade in Orange Juice, I started buying OJ at around 77 cents.

The method that I found works best is to buy several contracts at your entry level then scale out of them. 

So I bought 12 contracts at 77 then sold them at 77, 78, 79 ... 88, 89 

If one of my sells were hit at say 79 then the price droped back to 78 I would buy back the contract and again hold it unitl the price reached 79.

Each 1 cent move makes a $150 difference in your futures contract then you take out your commissions for the buy and the sell, about $25 for both and your making $125 every time OJ goes up a penny.

The reason I like trading OJ like this is because the price never goes much below 60.

When the price gets near 60 you start reading about how growers can not afford to hire people to pick the oranges so they just leave them on the trees to rot.

Farmers who raise hogs take them to market and sell them for any price I guess you can put a hog in the back of your truck and drive him down there for free so the price can go almost to zero before they stop selling their hogs.

Orange growers have to pay to pick the oranges so once the price gets close to that cost they just stop and it does not matter how many oranges they have, if it cost them more to sell them than they will make they just stop.

Then they usually sell they trees or cut them down so this drives the price up.

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  My first thoughts were to figure out how to write web pages and try to make money selling web sites or free lance programming for people who want to set up a site on the internet. Feb 5, 2005