Merv from Nebraska asks: Why are the technicals followed more than the fundamentals? Scott Responds: There are a number of reasons that many traders favor technical analysis over fundamental. For starters, fundamental traders tend to be commercial firms; that is, they are involved in the actual production or consumption of a commodity. Technical traders tend… Read More.
The story that dominates the headlines these days is the debt ceiling. As negotiations in Congress go on, fear that a compromise may not be reached grows, despite the fact that most analysts are confident that an agreement will be reached by the August 2nd deadline. The common belief is that none of our politicians… Read More.
The History of Mini Contracts Rise of the E-Mini S&P Virtually everyone involved in the futures markets has heard of the iconic E-Mini S&P. Launched in September of 1997, it has had a stratospheric rise in popularity, and many new traders can’t even conceive what it must have been like before this popular contract. Even… Read More.
This article was originally written by Scott Hoffman on September 01, 2004. Telltale Questions of “Deer in the Headlights” Trading Moments As a futures trader, have you ever asked yourself any of the following questions? “What looks good and where should I get in?” “Uh-oh… I didn’t expect that… what should I do now?” “Do… Read More.
I’m going to focus today on system trading, where you let the computer do the hard work for you. The unique advantage is that you can see past hypothetical results and potentially know what your level of expectations should be for the future. Today, I’m going to highlight Tony Ritenour with New Futures Trends and… Read More.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
September Australian Dollar Selling off of what I believe to be slight resistance above a trading channel. Consider selling at slight resistance off the recent high using a limit order. Objective would be a re-test of the recent lows at the bottom of the trading channel while risking a break to the upside near an… Read More.