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Trading natural gas futures


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Trading natural gas futures

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  #21 (permalink)
 jokertrader 
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mannya View Post
Has anyone been trading natural gas futures? NG

They appear to be fairly liquid. The day trading margin is high at $2000 with mirus.

Has anyone seen lower? I currently trade CL and 6E. Looking for an additional volatile, liquid market.

I used to but try to stay away

If u are likeme u want smoother trendy markets with decent reward but lower chop and risk

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  #22 (permalink)
 jokertrader 
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mmandi View Post
Just started trading NG 2 months ago with IB. The margin is good at around 2K intra-day as stated before. I like the price action because it moves well and not overly fast like CL can get at times. Been doing some Elliot Wave analysis with it and getting the wave counts is not as confusing as with some of the other commodity contracts. I'm liking what I've seen so far...enough so that I will continue to work with it and monitor my results. I had to take off from CL because it gets too volatile for me at times. NG is liquid enough and moves at a pace I can handle.

How have u been doing with NG? Do u have a journal

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  #23 (permalink)
 SMCJB 
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jokertrader View Post
Why is nat gas neglected?
Smoother than cl
Anyone interested to revive this thread that's a nat gas junkie every day?

There's less interest in NG than many commodities because it's a domestic commodity with little, if any, correlation with gas prices worldwide. With LNG exports about to start that may change though.

Another factor is that the heavily oversupplied NG market of the last several years is a very different market than the NG market we saw for the 10-15 years before that. For over a decade NG had the reputation of being too volatile to trade for all but the bravest. The NGH-NGJ spread was known as the widowmaker and destroyed several well known large hedge funds (Amarenth & Motherrock).

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  #24 (permalink)
 jokertrader 
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How i have come back to NG after a whole year..
and also funny how i am chatting on a different NG thread with SMCJB offering thoughts/advise..

circle of life .. almost

my point to this post is more: I am finding that i am able to read the moves in NG intraday better... compared to CL.... i guess even after a year

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  #25 (permalink)
Maria Julia
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NG is a popular market, but thin in comparison to other futures contracts like 6E and CL.

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  #26 (permalink)
 jokertrader 
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Maria do u day trade NG? Don't see too many here


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  #27 (permalink)
nb10071981
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The coined phrase "widow maker" always comes to mind when people talk about trading NG. I guess this is because of natural gas futures tendency to make quick abrupt price moves on small bits of supply/demand data. If you get it right, your a freaking hero. If you get it wrong you might be receiving a margin call from your broker. Either way if you manage your risk properly, NG can reap extensive rewards in terms of your overall equity. The mental anguish of getting it wrong is just part of game I guess.

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  #28 (permalink)
 SMCJB 
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The "Widow Maker" specifically refers to the Natural Gas March-April spread and not to Natural Gas in general, but you are right at times Natural Gas can be violently volatile. So volatile in fact for many years it was considered completely inappropriate for retail and even many pro traders. With the extra supply of Natural Gas from Shale Drilling, NG fundamentals have been relatively bearish for several years now, and volatility has also been greatly depressed. One cold winter can turn that around very quickly though.

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  #29 (permalink)
nb10071981
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SMCJB View Post
The "Widow Maker" specifically refers to the Natural Gas March-April spread and not to Natural Gas in general, but you are right at times Natural Gas can be violently volatile. So volatile in fact for many years it was considered completely inappropriate for retail and even many pro traders. With the extra supply of Natural Gas from Shale Drilling, NG fundamentals have been relatively bearish for several years now, and volatility has also been greatly depressed. One cold winter can turn that around very quickly though.



Thanks for clarifying that for me. I was unaware of the origin of the term and always assumed it came from natural gas's volatility.

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  #30 (permalink)
nb10071981
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Has anyone here ever overlapped a chart of the international shipping index futures with natural gas? I came across this on accident one day. But I found a strong directional correlation. An example of how this correlation plays out typically involves the international shipping index selling off for two days, and on the second day NG tends to follow. Or NG will go into a trending down period for a month and sure enough the international shipping index starts downtrending. I'd highly recommend checking it out. It seems more apparent in the 4hr candles.

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