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. […]

Of Motorbikes and Futures Trades…

Interesting story… While putting together some training material for a course on trading, I started thinking back to my time racing motorcycles and how there are so many similarities with trading. Here are my thoughts…

Meet the Greeks – Part 2

In this article, we move a little further down the track and look at how changes in other factors can affect an option. For any option trader, it is interesting information, but more importantly essential in understanding the risk in a position.

Meet the Greeks – Part 1

(Originally published in Active Trader magazine) What a boring game all this would be if option prices showed no fluctuations! The price, or premium, of an option is constantly changing for whatever reason. As an options trader you must be prepared, armed with the knowledge of how an option price can react in certain scenarios. […]

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’?

How to Use Pivot Points in Intraday Trading

While around for many decades, pivot points have grown in popularity since the 90’s with what has been an increasing focus on intraday trading. This article will set out the calculation of pivots and some ideas on how to use them.

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.

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.

Robot eats human brain and becomes super trader!

Somehow I have been put on an email list where at least once a week I receive an email about ‘robots’. “Forex Robot Baffles Wall Street” – this was the title of a recent one. Now there may well be some knuckleheads on Wall Street, but do you think they are really baffled by a […]

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 […]