More and more people are looking for a way to get involved in the gold market due to the recent run up it has experienced. Most traders believe that they either have to trade the standard futures contract or purchase an option to get involved. This article will focus on how the E-Micro Gold futures… Read more.
Gold
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.
Futures Options Spreads: Why Should You Use Debit or Credit Spreads?
One of the main questions I receive as a broker after presenting a futures option spread to a client is, “Why?” Traders want to know why they should be entering an option spread as opposed to purchasing or selling an option outright. This article will help to explain the Why behind entering an option spread.… Read more.
Is Option Selling the “Write” Strategy for You?
Options, by definition, are a wasting asset. Many first-time option investors learn this fact the hard way by watching their option contracts expire worthless.
Price Pattern Basics: Reversal Formations
As discussed in my previous article, Price Pattern Basics – Triangle Formations, price patterns have been studied by traders to help forecast the markets next move. This article will focus on reversal patterns. A few of the most common reversal patterns include head and shoulder patterns, double tops, and double bottoms. Double tops are one… Read more.
Why Trade Spread Options?
This article was originally published on June 17, 2005. Many traders are attracted to options on commodities. They typically prefer the limited risk–premium paid plus commission and fees–and unlimited profit potential features that are exclusive to buying long options outright. The problem with buying options outright, however, is that many traders buy out-of-the-money options because… Read more.
Price Pattern Basics: Triangle Formations
Over the last century, traders and technicians have studied the markets looking for patterns that will help them better forecast the market’s next move. Over time, traders have found chart patterns and formations that have proven to be relevant across a variety of markets. Trading neophytes are now able to rely on this research to… Read more.
How To Avoid Top Trading Mistakes
In all my years of following the markets, I have found one methodology above all others that is the most effective for my day and swing trading. The Turner Breakout Reversal (TBR) method is designed to quickly scan a given market and determine if a particular market is heading for a breakout or reversal after… Read more.
Trade Management Essentials: The Exit – Managing Stops and Targets
This article orginially appeared on June 04, 2010 in FutureSource’s Fast Break Newsletter, where Brian is a regular contributor. How difficult do you find it to enter into the market? If you think about it, “getting in” is not that difficult. The common problem that many traders face is not getting into a trade… the… 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.
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