The financial powers, in the name of government treasuries (along with the IMF) have a keen eye trained on the lowest hanging fruits of monetary assets. What was once unthinkable is fast becoming a reality as bail-ins promise to morph into the confiscation that only precious metals investors have been known for fearing.
They are coming for your assets.
A long continuum of what began as rumors in the aftermath to the great financial crisis, have one by one become conspiracy facts.
The idea that retirement assets (but especially the already fee-bloated 401k's) would be eventually forcibly rolled into U.S. treasuries of some sort was floated long ago.
It is almost surreal to witness the unfolding of Obama's "MyIRA" program - soon to be a reality for many as the next inevitable equity shock arrives for the average investor.
While money on the sidelines is an overused euphemism, a great deal of fiat-denominated wealth sits on the sidelines. It has very little chance of re-entering the market, given that the majority who hold it still feel burned by the two previous bubbles.
The sad irony is that most investors fret over how to put it work, rather than consider the nature of what it actually is in terms the currency in which it is held.
But even before that, in the aftermath of panicked money market redemptions in the crash 5 years ago, proposals to limit cash redemptions were put in place to prevent a run on these accounts.
These were deemed as a necessary safety governor to prevent panic that begets more panic (altogether ignoring the much greater risk to panic from HFT-run trading algorithms). They are, in effect, a subtle behavioral attempt to divert the flow of trillions of dollars toward equities.
Indeed, behavioral finance is all we have left, mirroring the underlying the faced-based nature the financial system.
In what is essentially a draconian creep toward capital controls.
Now here comes the next step...
According to the FT, "Federal Reserve officials have discussed imposing exit fees on bond funds to avert a potential run by investors, underlining regulators' concern about the vulnerability of the $10tn corporate bond market."
FT justifies this latest unprecedented pseudo-capital control by saying, "Officials are concerned that bond-fund investors, as with bank depositors, can withdraw their money on demand even though the assets held by their funds are long-term debt and can be hard to sell in a crisis. The Fed discussions have taken place at a senior level but have not yet developed into formal policy, according to people familiar with the matter."
Once this proposal is implemented, the Fed, or some other regulator, will effectively have full control over how much money market cash is withdrawable from the system at any given moment.
This new proposal gates (blocks) bond fund capital, just another attempt to get investors out of bonds and into equities.
The problem is that a brute force attempt to preserve a liquidity buffer is guaranteed to fail, as investors will simply quietly pull their money out at the convenience when they can, not when they have to.
However, instead of going into equities as the group of 30 and other central planners had hoped, the hundreds of billions of euros merely shifted into already negative nominal rate fixed income instruments.
No doubt this will have the same effect on precious metals investors. Any attempt at outright confiscation or taxation will likely be met with a further surge in buying and bury the remaining semblance of a real market deeper underground.
In the meantime, silver sentiment is more than handled by horrible sentiment based on the fatally erroneous of measuring value via manipulated price action.
For more articles like this, including thoughtful precious metals analysis beyond the mainstream propaganda and basically everything you need to know about silver, short of outlandish fiat price predictions, check out http://www.silver-coin-investor.com
With silver, most people either don't know how to get started or live in constant fear of the volatility. Check out our Free Silver Investing Guide and E-Course to find out if silver is right for you.
Learning
how to trade futures is not a quick process. It takes time and
dedication. You need to focus on one or two markets and study the charts
and market commentary. You also need to be aware of news and market
trends. But it is not impossible. Once you have acquired the skills, you
can begin to earn a living from trading futures.
Trading futures
Learning
how to trade futures for a living requires a large investment of energy
and time. You need to learn about markets, chart patterns, and news
before you can become a professional futures trader. Having a good
trading plan is essential, as is keeping detailed records of every
trade. It's also important to diversify your trading, because
diversification can help offset losses.
You must have sufficient
startup capital, reliable Internet access, and the appropriate
technological tools to become a successful futures trader. RJO Futures
is a good one-stop futures brokerage that has guides, webinars, and
articles that teach you the ropes of futures trading.
You must
have a clear understanding of market psychology and the trading
strategies. Trading futures involves analyzing the pulse of the market
and deciding whether or not to take a position. Futures traders can
either buy or sell the market, or they can take a position first and
then sell it. To offset their position, traders must post margin
requirements for the market.
If you know how to trade futures,
you will be able to trade more profitable contracts. Futures contracts
provide excellent entry and exit opportunities. In addition, the price
of futures contracts is always net-zero, meaning there is an equal
number of longs and shorts. Even if you win 50% of your trades, you will
still be ahead of the competition.
You can trade futures based
on the price of commodities. The price of oil, for example, can go up or
down in response to economic sanctions or problems at major production
facilities. Another popular contract is the interest rate future, which
moves opposite to interest rates. For example, if the US imposes
economic sanctions on Venezuela, oil prices will go up 2.5%.
Day trading
If
you're serious about making a living day trading, there are many ways
to get started. First, it's important to understand the market. You'll
need analytical software to identify key indicators and clues for
potential moves. You'll also want access to news sources. Because prices
change by the second, you'll need to be up-to-date on the latest news
that could impact your market.
You can earn a living day trading
futures, but first, you need to get a firm understanding of how the
market works. The give-and-take of the market means that there will be
times when you make money and times when you lose money. To overcome
this, you must develop a trading strategy. One good strategy is to use
E-mini S&P futures. These contracts are electronic and fast, and are
popular among stock market day traders. Other popular options for day
traders include Dow futures.
As a day trader, you'll compete with
professional traders. The pros have access to sophisticated trading
technology, data subscriptions, and personal connections. While day
traders compete for your money, they also face competition from
high-frequency traders. These high-frequency traders are out to take
advantage of the inexperienced day traders.
As a day trader, you
should take your trading seriously. You need to set a profit target and
monitor your trades carefully. This way, you can avoid losing all of
your money if your trade doesn't work out as you wanted. However, you
should never be greedy and make too many trades in one session. You
should also take time to build up your account.
Those interested
in day trading should have a substantial amount of starting capital and a
solid trading strategy. The goal of successful day traders is to
generate profits by capitalizing on small market movements. Losing money
is the biggest risk, but the potential for profit is endless. Moreover,
successful traders use risk management and exit positions when they
fail.
Interest rate futures
One of the most common types
of derivatives are interest rate futures, which are used to hedge
existing exposures to fixed income securities. Interest rates guide the
rates at which money is lent. They are also used by central banks to
manage the world economy. Understanding how to trade these derivatives
is essential to success. Traders must understand how interest rates and
interest rate futures work in order to make good decisions.
Interest
rate futures can be traded for several different reasons. Traders can
make money by trading the long or short side of the spread. A long
position will benefit from higher interest rates, while a short position
will result in lower yields. In addition, the spread will widen if a
trader sells a treasury bond.
Interest rate futures are useful
for hedging and speculation. They can help hedge fixed income portfolios
and mute unfavorable moves in the bond price. For example, rising
interest rates hurt variable rate borrowers, but if they sell short
interest rate futures, the gains from short futures contracts offset the
higher costs of their loans.
Using an interest rate future is
similar to trading stocks or commodities. Traders can leverage their
exposure to money market securities and government bonds. Traders can
also use interest rate futures as risk management tools to manage their
exposures to various securities. A well-developed trading system helps
traders manage their capital efficiently. In addition to offering a
robust trading platform, NinjaTrader also provides discount futures
brokerage and world-class support. Additionally, the software includes a
trading simulator and advanced charting capabilities.
Interest
rate futures are available on American exchanges in eurodollar and
dollar-based markets. The biggest difference between these two types of
futures is their underlying asset. A T-bill future, for example, uses
three-month Treasury bills as its underlying security.
Trading systems
One
of the most important things to keep in mind when trading for a living
is to use the right strategies. If you're new to the markets, don't try
to follow too many different markets. The most effective trading systems
will only allow you to trade a limited number of markets at once. This
is because trading in the futures market requires a substantial amount
of time and energy. You'll need to study market charts and read market
commentary, as well as keep up on news and market trends.
To
become a successful futures trader, you should be able to identify
patterns in the market. A good futures trading system can help you
detect patterns that make it profitable to invest in certain stocks or
commodities. These systems can also help you learn how to spot trends
and make trades based on historical data.
Futures trading systems
are designed to make money by buying and selling futures contracts.
Trading in futures markets requires that you understand the fundamentals
of buying and selling. You need to understand the lifecycle of futures
contracts and how to properly test them. Furthermore, you need to learn
how to use algo trading and how to read futures data.
Trading
futures for a living is risky, so it is vital to consider your risk
tolerance before implementing any trading system. Futures trading can be
hazardous to your health and your financial well-being. You should
carefully evaluate your risk capital and the potential drawdown of your
account before deciding to use a trading system.
The best trading
system will allow you to make trades automatically. A trading system
should be able to automatically enter and exit futures markets in a
predetermined fashion. The system should also alert you to entry and
exit signals so you can act accordingly.
Career progression
A
futures trading career requires a strong understanding of risk-reward
ratios, entry and exit points, and data regarding price levels, seasonal
influences, and chart analysis. It also requires a good understanding
of the financial markets and the government reports that impact them.
Traders must also have the ability to quickly cut their losses in case
of a losing trade.
Futures traders usually work long hours in a
high-pressure environment. They utilize computers to monitor market
activity and make trades. Because of the intense stress involved, they
must be able to make quick decisions and deal with high-pressure
situations. It's also important to know about three trends that
influence their work.
The first step is to learn as much as you
can about the market and its trading mechanics. In the first few years,
traders will tend to focus on the operational side of the industry. They
will learn how to execute trades and make commercial decisions. This
experience will prepare them for more senior positions.
During
the second stage of your training, you can progress to managing other
traders or even opening your own brokerage firm. These two options allow
you to earn millions of dollars. A higher account balance allows you to
withdraw the entire amount of profit that you have targeted. Further,
they offer you a scaling plan that corresponds to your growth level.
After
a few months, you can start trading in the futures market. This career
involves buying and selling futures contracts. Futures are contracts
that are made with a specified date and price. In the futures market,
the futures prices are tied to stock indexes. This makes them highly
secure as buyers and sellers will be bound to fulfill their price and
date arrangements. As an added benefit, futures trading contracts can
help companies hedge their financial risks. For example, international
companies may use futures contracts to offset fluctuations in their
currency.
