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Keep in mind, though, that when you buy a future, the price of that future already has expectations factored into it. It's very easy for individual traders to
by Kadin 17y ago
Keep in mind, though, that when you buy a future, the price of that future already has expectations factored into it.
It's very easy for individual traders to get slaughtered in the futures markets; you're essentially betting against other market participants, some of whom may have vastly better access to information than you do.
I would be very wary in assuming that the market is underpricing something based on information in the Guardian; it's fair to assume other market participants read it as well, and the information has been built into the prices already by market makers.
- pradocchia 17y agoIt's very easy for individual traders to get slaughtered in the futures markets I've done far better short than long. Fundamentally, I should be long, but there's a lot more going on there besides simple market forces.