Gold – tough market, but there is always an angle

$900 seems like a key level for Gold. This chart from March 2009  shows several points of resistance and support. Generally speaking the more a level is tested either as support or resistance, the more significant a breakaway becomes. Does this forecast near term direction? Not quite. But it does imply a breakaway within the next […]

FAQ: Futures, Options & Tropic Thunder II

Q: Aren’t options spreads cheaper to trade than futures spreads? A: This question is based on a misunderstanding of the mechanics of futures and options trading. Options: With options, including options on futures, you pay a “premium” when you buy an option and receive the “premium” when you sell an option. If you pay 10 […]

Commodity Action in Early 2010

With a host of physical commodity markets showing impressive upside action in the early days of 2010, it certainly seems like the world needs commodities.

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

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 […]

The reality of Automated Trading Systems

“Instead of spending years trying to pinpoint the Holy Grail of automated trading which doesn’t exist, sit down and focus on gaining the experience you need to find TRUE success. Invest in trading education. Study your trading charts. Practice trading. Learn through trial and error. In the long run, gaining the confidence and experience you […]