A futures contract has an expiration, and upon expiration there are costs and obligations associated with the settlement of the contract. The contract is settled one of two ways, either physical settlement or cash settlement. If you are a hedger, or your business deals in the physical asset, then you probably would choose physical settlement, […]
Monthly Archives: November 2016
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Treasury futures are standardized futures contracts used to purchase US government notes and bonds for future delivery. When you acquire a treasury future, you are not obligated to take delivery unless you hold the futures contract through expiration. Only a hedger would do that. I’m assuming you are a speculator, not a hedger, that’s looking […]
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There are two types of futures traders, Hedgers and Speculators. They differ in one primary aspect, the hedger trades in both the cash andPaper or contract markets, where the speculator only trades in the contract market. What do I mean by cash and contracts? Cash is the physical market. For example, in agriculture there are farmers that grow corn, [...]
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This video contains indispensable advice on trading. If you are finding it difficult to make consistent profits, you must watch this video. If you are a newbie trader, you MUST watch this video. If you trade at all, you must watch this video. Hopefully this clears up who this video is for 😉
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On the face of things, these 2 myths seem logical, but they are not. And once you learn why, you will have a whole new appreciation for volatility and how to use it to your advantage. MYTH #1 if your strategy consistently loses 70% of the time, all you have to do is switch your […]
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I have often said that if you want to make money trading, then reduce your size. And this is true, as most of us tend to over-leverage. But simply reducing your size isn’t the most effective strategy…how much you reduce it, and the way you size your positions can have significant impact to your returns […]
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Gaps are a popular pattern for market technicians to analyze and from which to profit. The reason is that gaps are easy to identify, and the specific characteristics of a gap are easy to quantify. This means we can apply statistical analysis on the various aspects of a gap to determine if there is opportunity. [...]
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A Window of Opportunity Definition: the difference in price between a security’s opening price and it’s prior day closing price. This difference shows up visually on a candlestick chart as a space between candles. When we do Gap talk, it’s a special language, so we need to be clear on some of the words in […]
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See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] PinPoint Strategy – What a Difference a Day Makes Most people developing trading strategies are stuck in the notion that a strategy should work all the time, that is if the strategy is valid, then it should work. Right? Ummm, no, not necessarily. The things […]
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See other posts in this series… [catlist id=2 numberposts=3 pagination=yes] Evaluating Systems – Commission and Slippage This is going to be a relatively short post, for two reasons; 1) it’s super important and 2) it’s a super simple concept. People who don’t declare slippage and commission in their strategies are incompetent, and giving you an […]
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