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 trading. A very good read. …

The Basic Fundamentals, Strategy and Vocabulary of our Options Markets

This introductory guide will walk you through the basic fundamentals, strategy and vocabulary of our options markets, providing a solid base of knowledge that will make you well-prepared to tackle these opportunities. The Basic Fundamentals, Strategy and Vocabulary of our Options Markets from CME Group

Spreading and Legging: What on Earth?

A common area of confusion for a new or even intermediate level futures trader is the idea of a spread, particularly how to transact in one. This write-up will look at the two ways in which to enter a spread.

Yes, We Speak in Code

When new to futures or new to specific futures markets, it can be tricky finding the right codes. This guide explains a few things.

Trading The Obvious

In a recent update we looked at a spread trade in Corn, citing the upside move was overdone and the spread had the potential to narrow dramatically. See here. Over the last few weeks, the spread has done exactly that. This illustrates a very interesting point – unexplainable or extreme moves are often followed by very obvious moves. As traders …

Who Says Technicals Do Not Work?

An interesting move in Soybeans last night. The market finished limit down with heavy offers. It looked nothing but bearish. The reopen saw the market trade down 15pts pretty quickly. Then a retrace to cover the gap, resistance at spot on 1669 held and the market fell always again. Classic textbook technicals. Sometimes trading is that simple.

DV01 Pricing Tools

Here are a couple of tools we use in the analysis of note and bond markets.

Some Thoughts on Corn

1. I saw some interesting stats the other day comparing 2012 with 1988 (chart below). Back then there were similar estimates for poor quality crops. Prices almost doubled then. We’ve gained only about 60% this year by comparison. That said the dollar value of the gain this time is more than double that of 1988. On one hand you could …

When is a Spread not a Spread

Spread trading is more an art than a science, but there are a few common traps we often see new traders fall into. Mistake#1 seems to be a particularly popular one…

Bond Futures Reaction to RBA Rate Decision – July 2012

Well this is not the most exciting of reactions, but it’s a good video to watch if you are new to trading SFE bonds and new to watching depth. The video shows how the volume thins out before announcements and how volume comes back after the release.