Hubert Senters here.
Got a question from Jerry. Oddly enough I did not have to put that into Google. I could pronounce that. It’s just an inside joke.
I’ve never traded futures and I don’t know how to enter a basic trade into futures. How do you trade hog?
If you’re going to trade one hog you could just go to a stock yard. I don’t recommend that. Let’s go through another thing that you can do here. You can just trade it through your broker. Every futures contract is traded slightly different so that’s what makes futures so interesting.
First you’re going to have to know the nomenclature a little bit for the hogs. And it’s at LH is Lean Hogs and you can see there’s there 22,000 hogs traded today or contracts. The current contract is going to be LHZ20. Now, unfortunately they are close right now. And you can figure that out because I’m going to bring in the chart over here or the matrix.
You can see that the price action is not moving. If I wanted to buy though the market was open. I could just go buy market but you can see it’s all greyed out just because this market is physically close right now. So on that when you’re looking at the close time you can just look it up. I use a little cheat sheet here from infinity futures. There’s the PDF if you want to rip it off go ahead.
And then what I would do is I would go down and you have to do it for every futures contract that you trade. Lean Hogs, CME. Their symbol is HE. Mine is LG for Lean Hogs. And then you can see they trade in quarter increments. That increment is going to be worth $10. You would be trading 40,000 pounds a hogs.
And the months are going to be JGM, NQVZ and then down here is a legend that you can use right down here.
This is the physical months. Let me move this up here. There are the months. I write down most of the hard work for you though. So you can see here GJMNQVZ. The last contract month here is December.
And we’re going to be going over to the February contract. You can see it goes from $69.20 to $69.225 so it’s straight in a back quarter point. Each one of those individual ticks is going to be worth $10. And then you just place a buy stop. Place a buy bid with a stop and a target and that’s it. It’s just like a stock. It’s just a different creature.
Mark Helweg is doing a special webinar on ”How to Take Super Small Risk and Target Massive Winning Trades”
Go check it out Wednesday, October 21st.
If you are one of the unicorns who are more right than wrong you don’t need this webinar. If you’re profitable and every trading decision is more at to be right and wrong you don’t need that. He’s going to be talking about is risk reward ratios. Now, if you’re losing money and you’re more wrong than you’re right. Go check his webinar it will help you out with risk reward ratios.
Good luck. Hope it helps. See you on the next video.
Hubert.
