A futures contract is a legally binding, perishable security. Accordingly, each has a distinct expiration date on which the contract’s terms are settled. When the contract expires, it ceases to be tradable on the open market. The concept of expiration makes futures contracts finite instruments. If you’re trading shares or currencies, then there are no… Read more.
Any veteran of the financial markets will likely agree to the common saying, “Active trading is the hardest way to make an easy buck.” You may or may not agree with this sentiment, but it is difficult to argue with the empirical data. In fact, washout rates for new traders of all types are estimated… Read more.
Volatility can arise suddenly, destroying winning trades and shaking the markets to their core. Successfully navigating turbulent financial waters can be an epic challenge ― finding the ideal instrument to trade is a key part of excelling when the road becomes rocky. During times of chaotic price action, the best trading vehicles are those that… Read more.
Update – this post was written before the launch of CME’s newest product – the Micro E-Mini. Here’s a link to a Micro E-mini resources page. Financial leverage is the use of debt to secure additional assets. Businesses and individuals both implement leverage. For example, if you have a car loan or a mortgage, then… Read more.
The Taylor Trading Technique seeks to identify where short term trend changes are likely to occur. In last night’s Swing Trader’s Insight the eMini S&P was labeled a Sell Short day, meaning today we were looking for a cyclical downturn.
In last night’s Swing Trader’s Insight I labeled the EMini S&P futures as a Taylor Trading Technique Sell short day. As long time readers know, I suggest we trade the stock index futures during the stock market hours (beginning at 8:30 AM CT) and that we can use overnight highs and lows in lieu of the previous day high and low that the TTT normally uses for the reference price.
The recent down trend in stock index futures made Taylor Trading Technique signals less obvious. Sticking to a more mechanical cycle count can facilitate trading in these markets.
Monday’s stock market selloff gave a Taylor Trading Technique Buy day setup for the eMini NASDAQ futures. Today’s action was a textbook TTT Buy day rally.
Overnight trading can give you additional patterns for trade setups during the regular trading day, especially for markets like the stock index futures.