Size Isn’t Everything

I can’t help it. I keep seeing similarities between riding a motor bike and trading. They are everywhere.

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?

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.

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 foolproof is either a fool or a liar. This is why you need to get good information. […]

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 the […]

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.

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 […]

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.

Your Very Own Order Book

This is a sheet for writing out orders. Its design is very similar to that used by many brokers for recording phone orders from customers. It’s a handy little tool that is simply a good way to keep a record of when, and with whom, you placed an order and of all the trade details. […]

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 […]

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.

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