June 18th, 2011 
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Futures trading is lucrative for speculators who correctly predict the price movement of commodities. It is wasteful when the volatility of futures prices turn against a position of leverage. Commodity futures contracts are highly leveraged financial tools. Traders can take advantage of big profits with a comparatively small investment called margin.
Compared to real estate (and investments such as stocks or bonds) futures trading are very volatile. Product prices sometimes double or halve in just a few weeks. Traders on the right side of the market, with long positions when prices rise or short positions when prices are falling profit, often quickly and generously. But the opposite is also possible: those on the wrong side of the market, with long positions when prices fall or short positions when prices rise, suffer losses, often important. Sometimes, in unusually volatile markets are locked or limited, temporary merchants are not allowed out of their positions, during which time profits soar, or losses mount.
The most skilled traders in financial markets, including futures contracts, tend to be either basic (aka position) or technical traders. The first study of macro-economic situations and forces are called the basics, like supply and demand, war, politics, tornado, and drought, legal problems, consumer trends, interest rates. Traditional traders digest this information and just intuitively make, maintain and exit positions based on their assessment. Traditional traders incline to stay on the market longer, and mount its inevitable ups and downs, until their objective, codified in a business plan is completed.
Analysts pay less attention on the fundamentals, and try to analyze the price movements, why and how the market has changed in the last minute, hour, day, week, month. Their approach is mainly mathematical, and has sophisticated graphics, formulas and prediction systems. Analysts have shorter time horizons, and exit their positions faster, as traditional traders. Day traders, who often move in and out of positions in minutes or even seconds, speculators are generally analysts.
To begin futures Trading, firstly, you need to read, learn and understand all possible information. A thorough knowledge of various products, markets, dynamics, and mechanics of trading are required. It would be unwise to dive into the world of the commodity futures trading without studying for several months or even years. Futures Trading is definitely not for amateurs.
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