At the end of the day, most traders and investors are searching for something that works. For them, this involves ways to limit risk while trying to extrapolate upside opportunities. But, the question remains: how can we find simple and effective ways to do this?
Getting Started
What Is a Trend Line?
What is a Trend Line? A trend line is an upward or downward sloping line on a chart indicating movements of prices over a period of time, generally occurring after two or more points of resistance or support. You can choose to trade a market based on support “holds”and resistance “setbacks”, or get involved in… Read more.
Know Your Limits: Day Trading Limits Explained
There are some pretty significant differences between the futures markets and the equities markets. The first big difference is the trading hours: the futures markets trade 23 hours a day for most markets versus an 8:30 AM (central time) open and a 3:00 PM close in the equities markets. The second difference is the ease… Read more.
I Understand Stocks, But What About Futures?
I was at a party the other night when someone asked me what I do for a living. I responded that I was a commodities broker. This spurred them to ask, “What is exactly is that? I understand stocks but what are commodities?” This is a question that I have faced several times and I… Read more.
US Treasury Bonds and Notes: A Beginner’s Guide
All eyes are on the debt market these days. Volatility in the debt market is forcing investors and traders to shift their assets as the global markets spin out of control. News of Greece defaulting on its bonds, the US raising its debt ceiling, and economic activity in the Far East have traders and investors… Read more.
Futures Trading: What Are All of These Months?
Almost every new futures trader who I speak with understands basic market fundamentals but gets tripped up when learning about the different months in the futures markets. While this can seem confusing, it is actually relatively straightforward. Below I will tell you what commodity futures are, why they are traded in different months, and how… Read more.
Effective Habits of Successful Traders: Understanding Expected Value
Expected value (EV) or expectancy is a very important trading concept that few traders understand and actively discuss as an element of their trading. So what is EV and why is it so important? EV is simply the average result over a number of trades. Mathematically, it is the sum of the probability of winning/losing… Read more.
Effective Habits of Successful Traders: Keeping a Trade Log
Your trade log is your map guiding your trading by effectively evaluating your strengths and weaknesses to help you reach your goals. Your compass is your “trading framework”, something that will be covered at another time.
Effective Habits of Successful Traders: Why Do I Trade?
Why do I trade? It’s a simple question, yet the vast majority of traders have not outlined why they trade. How much time have you spent thinking about it? Have you ever written down why you trade? If you haven’t, how do you know what your true motivations are? Have you sorted out what your… Read more.
Trading Psychology: How to Build a Solid Foundation
The same is true with commodity futures trading. Markets are constantly changing. As a trader, you need a strong foundation to weather the storm.