Why illiquid markets can be awesome

Why illiquid markets can be awesome

Here is a perfect example of why you should be trading when other are not:

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Rate Cut Probabilities

Rate Cut Probabilities

When discussing upcoming rate cuts, you’ll often hear news services talk of the ‘probability’ of a cut or what the market has factored in. For the Australian market, here is how to calculate the probability. The cash rate futures trades on the SFE settle at the end of the month at a price that equals [...]

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A Path to Profitability

A Path to Profitability

This article is from the most excellent SMB blog: ” “If I increase my stop then I will start making money.” This just might be the single silliest thing I have ever heard a trader say. No “trading is in my genes” is. I will offer a path to profitability to consider. Look there is [...]

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The Best Books for Active Day Trading

The Best Books for Active Day Trading

Trading From Your Gut by Curtis Faith A really great book on building your instinct and intuition – a skill that is important in active day trading. Amazon link One Good Trade by Mike Bellafiore Probably the best book written on trading in recent years. It is an insight into the world of non-algorithmic proprietary [...]

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What are the trading rules you live by?

What are the trading rules you live by?

Here is the answer to the question from Paul Tudor Jones in Market Wizards. Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front [...]

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How Can You Fight Another Day?

How Can You Fight Another Day?

Guy, is it common to see day traders having consecutive tough weeks and still find a way to keep coming back ready to fight another day?

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One Way to Fix Randomly Wrong Trades

One Way to Fix Randomly Wrong Trades

Guy, I am having a tough week. This weird cycle I have since many weeks ago keeps happening and I need to break it. Somehow, I will be up early in the day, then mistakes start happening. I have noticed that nothing is different about my psychology, and my thinking (NO revenge trading etc), but just randomly wrong. What can I do?

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25 signs that the financial world is about to hit the big red panic button

25 signs that the financial world is about to hit the big red panic button

From The Economic Collapse: The following are 25 signs that the financial world is about to hit the big red panic button….   #1 According to a new study just released by Merrill Lynch, the U.S. economy has an 80% chance of going into another recession.   #2 Will Bank of America be the next [...]

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Trading the Obvious?

Trading the Obvious?

Today’s SPI and S&P are great examples of ‘buy rumour sell fact’. Bullish in the morning after pretty much all the press was expecting Yen intervention. Then there was the announcement (shortly announced to be false). The Dollar rallied, SPI didn’t (as it had already had a great run), then the Dollar fell back as [...]

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Q&A: Reading the Market

Q&A: Reading the Market

Question: This type of market (S&P and SPI) may make you think a bottom is around the corner and you be lured into buying at the first sign of reversal. How can we avoid taking the wrong signals?

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30 Minutes on Futures

30 Minutes on Futures

This 30-minute video provides a basic introduction to futures in easy-to-understand language. It is presented by Dan Gramza, a world-renowned futures industry expert known for his teaching and trading expertise.

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Crude Oil Fundamentals

Crude Oil Fundamentals

For those new to or interested in crude oil trading, here is a short vid from the CME explaining the basics.

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Q&A: Do you use a synthetic spread trading platform to execute trades?

Q&A: Do you use a synthetic spread trading platform to execute trades?

Question: Do you use a synthetic spread trading platform to execute trades?

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Q&A: Trading Currency Spreads

Q&A: Trading Currency Spreads

Question: I was just looking at the spread between September 2011 and March 2012 Canadian Dollar. Is this worth trading?

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A Simple Spread in Crude Oil

A Simple Spread in Crude Oil

Here is an interesting pattern in Crude Oil calendar spreads. The recent sell off in Crude was sharp and violent and suggested bear spreads (short near month, long far deferred) would benefit. Interestingly, bear spread took a long time to react, almost as if it was waiting for the market to hold lower levels before [...]

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Aussie Bills and Bond Futures Stats

Aussie Bills and Bond Futures Stats

Here are a few screenshots from some training drills we ran we trainees at Propex. They pretty much speak for themselves.

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Prop Trading Video

Very funny stuff. Kinda reminds me of almost any conversation with someone from outside the markets.

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A Most Excellent Reading List!

A Most Excellent Reading List!

Here is a short list of excellent books for new and intermediate level traders.

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This website is for educational purposes only. Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.