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 […]

The Best Options Strategy

Not long after options became available, there were the seminars and the books and the systems that come with any new financial product. There were all sorts of people touting what they see as the best strategy for making money. This article puts all that in perspective. Is there such a thing as ‘the best strategy’?

Hedging with Index Options

The concept of hedging has always been a controversial one. This article looks at hedging options with the DAX.

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. […]

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 […]

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 […]

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 […]