If you have ever bought a house or bartered for a loaf of bread at a farmer’s market, then you have participated in the process of price discovery. Essentially, anything with palpable value has a point at which it is readily exchanged for a premium. Price discovery is the mechanism by which this premium, fee,… Read more.
The minutes preceding the closing bell are a time of intense deliberation for traders who are managing open positions. For intraday and day traders, the decision is simple because going home net-flat is the name of the game. However, when implementing multi-session advanced trading strategies, each market closure presents a unique collection of assumed risks… Read more.
No matter how seasoned or talented a futures trader may be, chances are slippage will have been a formidable adversary at one time or another. To minimize the impact of slippage, traders use two common strategies ― streamlining technological infrastructure and developing advanced trading strategies ― but are there other ways to win the war against… Read more.
The futures marketplace is a diverse arena providing traders and investors with a broad spectrum of viable opportunities. However, the most suitable product, market or strategy depends on each individual’s resources and financial goals. In the case of long-term investors, there are three primary reasons for engaging the futures markets: Asset diversification Risk management Speculative opportunities… Read more.
According to the Efficient Market Hypothesis (EMH), the financial markets are methodical systems specializing in the valuation of assets. Under EMH, the current price of a security is a reflection of all available and relevant information. Supporters of the theory believe asset pricing is a product of random walk functionality, with the market being “always right.”… Read more.
When it comes to the various hidden costs of futures trading, slippage is the undisputed king of the hill. When a market or stop-market order is filled at an inopportune moment, it can be a drain on both your trading account and patience. Aside from detailed plans governing position management and market entry and exit, some… Read more.
Managing profitable positions efficiently is an integral aspect of achieving longevity in the futures marketplace. Addressing trade selection and quantifying risk are critical parts of effective trading, but having a strong trade management plan in place is also of paramount importance. Implementing a trailing stop strategy is one way to ensure that your trade management… Read more.
Developed by John Bollinger in the 1980s, Bollinger Bands (BBs) are a popular public domain technical tool for active futures traders. No matter your trading style or preferred market, having Bollinger Bands explained within a strategic framework can be a positive first step toward profitability.
With his genius intellect and humanitarian disposition, Angus MacGyver is the quintessential problem-solver. Whether disarming a nuclear missile using only a paperclip or picking a lock with a Swiss army knife, he gets the job done. If MacGyver decided to enter the marketplace, there is little doubt that his futures trading strategies would be winners… Read more.
No doubt about it, coping with the loss of hard-earned money is the most difficult part of active futures trading. An ill-timed loss or series of poor trades can have extreme psychological impacts on almost anyone. As far as trading skills go, being able to cope with losing money in a healthy manner is among… Read more.