Trade Hunter > FAQs

What can I expect from Trade Hunter?

Each week, I will write about market developments, update positions and offer new ideas for our next couple of investment positions.

I will always tell you precisely when to execute trades and when to take profits. I will also outline the maximum risk on each strategy… so you’ll never risk more than what you’re comfortable with.

Since market conditions constantly change, I may have to tweak the Trade Hunter portfolio. When this happens, I’ll send you a flash alert during the week with detailed trading instructions. The flash will contain either a new recommendation or a recommendation to close out an existing position.

Can I make your trade recommendations from any brokerage account?

Trade Hunter requires an account that allows execution in the futures and options markets. Following my recommendations will be easy. You will be able to execute online (if your account has a platform that allows you to do so) or via a broker who can execute the trades for you.

In the past, these accounts were only available to high net-worth individuals or through small firms that charged very high commissions and fees. With the increased interest in futures and options, commissions and fees have come way down. You can open an account with as little as $10,000. You can trade futures and options today for between $2-$8 per lot and options on stocks for less than $10 per trade.

Here are nine U.S. brokerage firms with futures and options platforms for you to consider (The Sovereign Society receives no special consideration for listing any of the mentioned brokerage firms):

 Where will we be looking for opportunities?

The futures and options markets cover a wide array of products… from precious and base metals to grains and currencies. In Trade Hunter, we’ll be focusing on the opportunities in the energy market (i.e. crude oil, heating oil, gasoline and natural gas)… the grains market (i.e. wheat, corn and soybeans)… the soft commodities market (i.e. sugar, coffee, cocoa and cotton)… and the meat market (i.e. live cattle and lean hogs).

My job is to educate you, identify profitable opportunities for you and to show you how much fun these markets can be.

How long is the holding period for our trades?

The holding period for the majority of trades I put on will range from 2 weeks to 6 months.

How will I know when to close out a position?

Not to worry… I will alert you immediately via email when it’s time to close out a trade.

I always set an appropriate target for taking profits. But markets can turn on a dime… so there are times when I’ll recommend closing out a position before a trade hits our target.

Generally, the minimum acceptable profit of the trades I will recommend is 100% of the amount of assets at risk on a trade. Using this method, you will never get stopped out of these investment positions only to watch your position go positive with you not in it! Your position can weather the storm of volatile futures markets within the stated time frame.

When it comes to risk, I like to hit a lot of singles and doubles and rarely look for the home-run trades. I believe this is the formula for success in the futures and options markets.

How risky are commodity options and futures markets?

On every trade I recommend, I know exactly how much money I have at risk. I also know, all things remaining constant, what profit I am looking for. Very often I put in my order to take a profit on a position as soon as I execute. I leave what is called a GTC or Good till Cancelled order so I do not miss an opportunity to take my profits and run. These markets are very volatile and opportunity might only knock once during the life of a proposed trade! I never worry about taking a profit too soon. My job is to make money and go on to the next opportunity.

Most of my trade recommendations will have a risk-reward ratio of 1:3 (risk $1 to make $3). Some may have a 1:5 or 1:10 risk-reward. And even if we only get our trades right 50% of the time, you can make 100% return on your at-risk money. To understand how this works, see p. 16 of your Trade Hunter Trading Manual.

Remember, the markets are volatile. Just remember your position has limited risk. Movements during the day may impact the value of the position, but they make no difference in the final outcome of the trade. Wait for my instructions and advice before you act to close.

And always be sure to select the right position size for you. Make sure that the numbers of dollars you put at risk is within your comfort zone. You should never risk more than you are willing to lose on any one trade.

Finally, keep in mind that every trade will not make money. That’s why I will always encourage you to spread your capital out over a number of trades and over a period of time. That is the formula for long term success. Remember, this is not a get-rich-quick scheme!

How can I reach you if I have any questions?

If you ever have any feedback, questions or comments about our trades, please send them to me at andy.tradehunter@gmail.com. While I cannot give out individual investment advice, I will post your questions and my answers in upcoming issues of Trade Hunter so they benefit all of my subscribers.

For any questions about your subscription – renewals, change of address, etc.  – call 1-866-584-4096 or submit your question here: http://sovereignsociety.com/contact-us.

This is an amazing time in the global futures and options markets. Thank you for giving me a chance to enhance your investment portfolio!