What is a Futures Contract? "A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. Futures contracts are standardized to facilitate trading on a futures exchange and, … [Read more...] about Futures Contracts: A Few Fun Facts
Dan Harvey and I have been making some changes to the Road Trip Trade service. Early on with the Road Trip Trade, Dan started adding layered trades on top of his Road Trip Trades. Some subscribers requested that we trade the Road Trip Trade only with Reverse Harvey (RH) adjustments and no layering. This is when we split the trade … [Read more...] about Road Trip Trade News
I've been bullish on the U.S. markets for some time but I primarily trade a market neutral strategy called the Road Trip Trade. Here's a sample of what a typical Road Trip Trade looks like: If I was correct with the bullish market direction opinion, I wanted to participate in the rally. The accounts I trade are in a … [Read more...] about The Combination Trade
Being fallible as a trader has been discussed in many publications. Today I will discuss some elements of being fallible that may help you improve your overall trading results. The definition of fallible, according to Miriam Webster, is "to be capable of making a mistake." Why is it important to be fallible as a trader? It is very … [Read more...] about Learn to be Fallible in Your Trading
Noted author Brian Johnson from Trader Edge is joining Capital Discussions on the Round Table on Wednesday 19 April at 11:00 am Eastern Time. Brian will present "Hedging Income Option Trades." Brian published an exciting new book "Option Strategy Hedging & Risk Management" which presents a comprehensive analytical framework and … [Read more...] about Round Table with Brian Johnson – Hedging Income Option Trades
A diagonal spread, also known as a time spread, may be a strategy you would like to implement into to your trading arsenal. Today we will discuss how a diagonal spread is created. We will also discuss some of the advantages and disadvantages of a diagonal spread. A diagonal spread is a strategy which occurs when two options are bought … [Read more...] about What is a Diagonal Spread or Time Spread?
The Stochastic Oscillator was developed by George C. Lane in the 1950's. It is a momentum indicator that shows the location of the underlying's close relative to its range of the highs/lows over a set number of periods. This indicator follows the speed or the momentum of the price of the underlying. The Stochastic Oscillator will be … [Read more...] about Technical Indicators 101 – The Stochastic Oscillator Part I
This week's article will be an overview of what is a broad subject; technical indicators. Subsequent articles will cover some of the more popular indicators in detail, but we will cover the basics to start. Many traders use technical indicators to some degree to help them in their market analysis and trade management. Technical … [Read more...] about Technical Indicators 101 – An Overview
Have you heard of the Death Cross and the Golden Cross in your trading career? These two crosses occur when the 50-period simple moving average crosses through the 200 simple moving average. Read on and we will explore these two terms in trading. First we must review moving averages How can moving averages help you as a … [Read more...] about Death Cross and Golden Cross Signals – What are they?
I've written several articles over the last year about the importance of keeping a trading journal. Besides helping you analyze your trading business, its successes and losses, certain patterns will also manifest themselves as you review your journal. Most traders do not have 10 different patterns that are problematic. Rather, he/she … [Read more...] about Old Problem Patterns – Do They Affect Your Trading?