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The Secret Order of Jurojin General Information…

Mission

Our goal is to provide subscribers with actionable, highly disciplined and focused futures trading ideas everyday that have excellent risk/reward characteristics and are grounded in solid fundamental and technical analysis. Ultimately, we aim to produce consistent long-term profitability for our subscribers and dependable trade flow for our brokerage partners. Once the service is in the brokers' hands, client relationships should drive management of each trade.

Service

The service is broken down into four separate categories:

  1. Currencies
  2. Commodities
  3. Stock Index
  4. Interest Rates

In each category, we have a dedicated analyst who applies real market trading experience and investment research analysis to his particular area of expertise. This ensures that our subscribers will receive highly focused real world short- and long-term trading opportunities they can act on through their futures brokers.

The report will initially be produced weekly with the potential for updates and additions to positions. Typically, you will get four new trading ideas each week with more coming as and when our trading models or technical opportunities arise. But we don't recommend trades just for the sake of trading. That dilutes our ability to provide solid and potentially profitable situations. Our analysts only recommend trades when they see an opportunity to make money. In short, we trade what the market gives us.

Consult your broker before making any trades to see if they are right for you.

Structure

We have a very simple structure to the recommendation. Each recommendation consists of:

  • Entry level
  • Stop-loss level
  • Two profit target levels (PT1 & PT2)

And with this structure, we have established a simple set of trading rules that will help our subscribers get the most from our service. They include:

1. Always trade with a trailing stop. Never enter a futures trade without knowing before hand how much risk you will take in a trade (that is one of our core beliefs). We have defined that risk for you with our initial trailing stop-loss recommendation.

2. Trade in contract sizes that are multiples of two. You never know if you are catching a trend or just a correction even when you are initially correct in the direction of the trade. We have found by trading the position in ½ increments, we are often able to grab profit at our first target, even if the market later turns against us.

3. Move stop to break even if the first profit target is achieved. By moving your stop to break even on your remaining half position after the first profit target is achieved, you are assured to lock-in profit on the trade. And should the second half of the trade continue to move your way, you can move your trailing stop to lock-in even more profit. We recommend you move your trailing stop to at least PT1 should the trade achieve PT2.

Sometimes we recommend that you grab all gains at PT2.  Please read the recommendations and updates carefully.

Additional information on Jurojin structure:

Each Tuesday morning the Secret Order of Jurojin is published. It will contain FIVE futures recommendations with specific entry points. You should review each trade individually and decide whether you wish to take each one.

It's important to note that the entry point is specific and may not be achieved in trading that day. You may have to check with your broker for the current day's range.

Master Jurojin only follows trades that are filled according to his specific entry and exit points. If the recommendation is to buy or sell 'at market' then it's okay to jump straight on board this but be careful to stick to the exit points as advised.

Each trade has TWO profit targets and one stop level. If you only trade a single contract at a time you should use your own judgment whether to exit at PT1 or PT2. If you trade two or more contracts, use these targets to exit your trades.

If there is any change to existing recommendations it will be made in the daily updates sent to you by email and made available on the website the following day. You should be sure to read these updates.

Not all futures contracts or brokers for that matter are the same. You can't leave 'good till cancelled' stops or specific entry and exit orders on certain contracts. Some you will have to reconfirm as fresh orders each day.

That all depends on the level of broker service you get or whether you are using your own entry platform.

Finally, the stop is there for a reason. You should stick to our recommended exit points. When we are stopped out of a trade, we stop following it. Some readers may enter a trade more favorably than others or might have greater risk tolerance than some. We can't advise at the individual level and gear our trading risk-reward parameters to the entire audience.

FREQUENTLY ASKED QUESTIONS

1) What is the average amount you will need to invest the recommendations?

That depends entirely on how much you want to spend on each trade. With a futures account, you hold money in a margin account with your broker.  We recommend two contracts per trade unless otherwise specified.  You can also trade in multiples of two.

When you make a trade your account is debited by a pre-determined amount of 'margin.' The amount is calculated by the exchange and varies from commodity to commodity.

Margin depends on the volatility of the underlying commodity you are trading and is affected by the price swings over the last several months. In general the more volatile the price swings, the higher will be the margin.

All futures contracts are derivatives of the underlying position that they represent. Most are deliverable, which means that live cattle, lean hogs must be delivered at expiration. Most futures are not held to expiration so you don't need to worry about making provision for hundreds of wheat bushels or hundreds of barrels of crude oil.

Commodities are standardized products and their specifications are exact so that investors dealing in them know precisely what they are dealing with.

A single corn future entitles the owner to take physical delivery of 5,000 bushels of corn, whereas a soy meal contract gives the owner the right to 100 tons of the product.

The cost of doing so is much smaller than the value of the contract. A single Eurodollar contract has a face value of $1 million and is used to speculate or hedge against movements in thee-month interest rates. However, the margin required to buy or sell one contract is $945.00.

To buy or sell a single contract of the U.S. government 10-year notes with a face value of $100,000 would require $810.00 in margin.

Corn contracts would require just $338 per contract. While wheat takes up to $608 of margin.

eMini S&P 500 index contracts require margin of $3,938 while eMini Nasdaq trades need $3,750. For full details of margin on initial bond requirements check out exchanges' home pages such as www.cme.com www.cbot.com and www.nybot.com

As long as you have sufficient funds in your account to cover the initial margin of your trades you should be fine. The question becomes how many contracts you wish to trade.

But there is also 'variation margin,' which is the additional cost of funding a position that is currently losing money. Your broker will debit this from your account at the close of business. He or she has a right to do this according to account rules. If there are insufficient funds in your account you will receive a call asking you to wire the money over before the close of business. If you fail to do so the broker has the right if not the obligation to liquidate open positions.

2)  What is the difference between Single-Stock Futures, Currencies, Commodities, Stock Index, and Interest Rates Futures?

A - Each style of commodity covers a specified quantity of the underlying product. Any futures contract has a set delivery and expiration date.

Traders are not advised to hold contracts to expiration. Any future can be rolled into the next liquid month.

Any commodity future is geared towards allowing hedgers or speculators trade according to their needs in the knowledge that there trade is backed by the exchange on which they are doing business.

Currency futures generally trade on the Chicago Mercantile Exchange, while the dollar index trades on the New York Board of Trade. Such futures allow traders to take a view on the direction of a single currency versus the U.S. dollar.

The euro currency future allows buyers to benefit from a rise in the value of the euro against the dollar. Traders can speculate on the Swiss franc, Japanese yen, British pounds, Mexican pesos and Australian and Canadian dollars. A variety of hybrid currency pairs are available but are less traded than the main dollar related currency futures.

U.S. government bonds are one of the most liquid and popular trading contracts in the world. These bonds and notes allow portfolio managers, speculators and hedgers to take a view on the direction of interest rates.

Bond buyers expect rates to fall while sellers expect rates to rise.

Eurodollar futures allow speculators to do the same but on a three-month instrument tied to the prevailing LIBOR or London Interbank Offered Rate.

By combining contracts of different maturities speculators can take a position on the prospects for the yield curve in anticipation of higher or lower monetary policy in the future. A 'spread' trade allows traders to look for a rising or falling yield curve.

Stock index trading is a very common form of futures trading. Stock index speculators can control a relatively large investment for a small amount of margin and capture large moves if they catch the market right.

Commonly traded indices include the Dow industrials, S&P 500 and the Nasdaq.

Since these contracts are actually quite large, exchanges introduced smaller or 'mini' contracts some years ago, which require a smaller initial margin to get started.

3) Why are futures so risky?

Speculators can leverage their investments by trading futures. With a single contract in the euro future an investor has control of Eur125,000. However, that doesn't go risk-free.

In order to play in the game, investors must be aware of the risks of movements in the underlying futures over which they have control.

Each single basis point movement in the euro is worth $12.50 such that the movement from $1.19 to $1.20 (or 100 basis points) is worth $1,250.

Take crude oil futures traded on NYMEX. While it only costs $4,725 in initial margin to control one contract, which puts you in control of 1,000 barrels of oil, each cent movement in the price of oil is worth $10. In other words each dollar movement in the price of a barrel of crude will change the value of your futures account by $1,000.

Financial markets are notorious for reacting violently to global events and economic data, whether it be an inflation report, news of a rebel attack on international interests in Nigeria or a terrorist hijacking, can impact markets gravely.

Thanks to the leverage that futures trading affords the investor, the swings in investor wealth can be dramatic and so more risky than simply buying shares.

 

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The Secret Order of Jurojin also is not owned by Agora Financial,  
Jurojin is solely owned and
published by Tyche Research, LLC and marketed by Agora Financial.