I was trying to explain leverage using futures to my wife. I used terms like Notional and Big Point Multiplier. She didn’t get it. She asked me, where did you come up with this phantom number, and what does notional mean, what’s a multiplier? And she went on and on, […] Read more
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 […] Read more
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, […] Read more
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 […] Read more
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 […] Read more
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 […] Read more
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 […] Read more
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, […] Read more
