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Commodity Trading advisors or CTAs are
those traders qualified and licensed by the CFTC to provide
specific futures trading advice. This means they are also
held accountable, plus of course they have to comply with many
rules and regulations set forth by the CFTC.
Some CTAs write a daily trade
update where they provide their picks to subscribers, others
run live trading rooms where they call their trades in real
time which can be a lot of fun, but also very expensive.
Price usually depends on the sort of track record the
trading advisor can provide.
The live trading room model
most often deals with day trading, and this oftem means the
indices or forex because of the huge liquidity and the
volatility. Markets that move slowly are not popular with a
lot of day traders, as the more trade opportunities or
signals their system can generate, the more the potential
for profits.
Of course, this is a double
edged sword, as those trade signals may result in
opportunities for losses as well if the CTA you're following
is on a losing streak. When you're considering trying a CTA
or a live trading
room, ask for credentials...a real money track record is
a must.
You can check out the record of
any Commodity Trading Advisor at the NFA site. Also, you
can check the CFTC website for any actions against any CTA.
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