My 1st Million At 33 – yes, you can do it too

I’m thrilled of having James West to agree to be a regular guest writer on my site. For those who are not familiar with his work, he regularly watches and reports on the COT (Commitment of Trader) Reports at various futures/option exchange market. What is futures? Here is from investopedia:

A futures contract is a type of derivative instrument, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for future delivery at a particular price. If you buy a futures contract, you are basically agreeing to buy something that a seller has not yet produced for a set price. But participating in the futures market does not necessarily mean that you will be responsible for receiving or delivering large inventories of physical commodities….

James’ articles regularly appear at financialsense.com. His reporting on COT is important to put together pieces of puzzles in the stock & various other markets. When you go to casino and play black-jack with dealers, assume that you can count dealers’ cards accurately, won’t you have a much higher long term success due to additional information on calculating the odds of having a bigger (or smaller) number card?

Likewise, it is the same with futures market. Most of the time, people only look at the stock market, stock options market, but forgetting that there is also a futures market. The major brokerage companies are the House in this case. And if you don’t look at the futures market, you are not counting all the cards (or even majority of the cards). Maybe by the outstanding open positions in the option market, you would conclude that market would more likely rise. But you may not be looking at the futures market, where more House money has been betted for a market fall.

By having James reporting on the COT data, I hope readers at 1stMillionAt33.com can be better informed of the futures market.

Let’s hope that James West will continue to make his articles available on an indefinite basis for everyone here. Please welcome James West, and be sure to visit his own site too.

Frugal