Browsing all posts in "futures trading".
How to Trade the Crush Spread
One offshoot from the extreme volatility that came with the GFC is that many private traders are now looking beyond the simple strategies such as buying shares. This article takes a look at a risk friendly approach to trading Soybean futures.
How to Trade Eurodollar Spreads
This article provides an overview of using Eurodollar spreads as a low risk instrument to trade economic news and interest rate cycles. We’ll look at two types of spreads: bull spread and bear spreads. We’ll also look at when to place these spreads.
FAQ: What is a Margin?
Many of those new to trading will have difficultly understanding the concept of a margin. This short article puts things in perspecitive.
FAQ: How much should you trade?
An important consideration in any trading strategy is how many contracts to trade or how much money to allocate to a particular trade. This article answers this very question.
Q&A: Trading Account Size
Question: Hi Guy I have read the book [Three Little Spreads Went to Market]. Very informative thanks. I have been looking for an alternative to shares that doesn’t have the extreme risk of some other derivative products. Just a quick question: do you see a specific amount in an account to make this type of [...]
Maxmising Trading Profits with Money Management II
This is the second and final part of the article on Money Management. Last week we introduced the idea and defined ‘fixed dollar’ and the ‘percent at risk’ methods. This week it gets interesting. We look at the ‘Optimal f’ method and compare all methods with examples.
Maxmising Trading Profits with Money Management I
Money management is an interesting subject and it plays a far bigger role in trading than many people think. This two part article is a sneak peek inside my next book. More on the book in another update. For now here is part 1, of the article.
Video: Recent PTD Trades
This video look at some recent trades from the ProTraderDigest newsletter. Beginner level.
Swine Flu, hog futures and the benefit of spreads
This is a short follow up to my previous article on Swine Flu (H1N1).
Risks in Futures Trading
I recently saw the following post on an investment forum. I thought it would be an interesting topic for my newsletter. So here is my long answer: Question: Is the risk factor of investing in commodity futures greater or lesser than that in funds? Answer: Generally speaking the risk of trading futures is greater than [...]
Coffee versus the US Dollar
Here is an interesting article on how Coffee is trading relative to the US Dollar right now. It also stands to illustrate a benefit of trading spreads versus outright long or short positions. Full article here -GB
What is seasonal trading?
Question: What is seasonal data? Answer: The ProTrader Digest uses seasonal data in every trade selection. Seasonality refers to a pattern that depends on, or is controlled by, the time of the year. Seasonality appears in many places. For example, sales of Christmas cards logically peak before Christmas. Accounting business peaks around end of financial [...]
Seasonal data reliability
Question: How reliable is seasonal data? Is making money from it all that simple? Answer: To answer the second question first – no it’s not always simple. Anyone that tells you they have a trading method that is fool proof is either a fool or a liar. This is why you need to get good [...]
Spreads: Going Long and Going Short
Question: I understand the concept of a futures spread, but I get confused when they talk about ‘going long a spread’ or ‘going short a spread’. Given a spread has both a long position and a short position. How then can you go long or short a spread? Answer: The concept of being long or [...]
