Tag: contrarian

  • Advantages & Disadvantages of Call Options for Hedgers & Speculators

    | | Commodities, Education

    Buying (Long) a Call Option: A basic option strategy to be familiar with and learn the advantages and disadvantages of is buying a Call Option (Long Call).  Buying a call option is the opposite of buying a put option, in that a buying a call gives you the right, but not the obligation to buy the underlying futures contract at a specific strike price.  When you buy or go long a call your outlook is “bullish” the market and you expect a rise in the underlying asset price. Steps to Trading A Long  Call Buy or go Long the Call … Read more Advantages & Disadvantages of Call Options for Hedgers & Speculators
  • How a Commodity Trading Advisor may use Expectancy & R Multiples

    | | Education

    When you trade the markets, you really don’t know the exact probability of winning or losing on a given trade. Additionally you won’t know exactly how much you will profit or lose.  What a CTA does is extensive historical testing on his / her concepts, and trading strategies to get an idea of what to expect.  They will also pull huge data samples of market prices from either a data vendor or from real-time trades, in order to get a clearer picture, and to really try and nail down the “expectancy” of their particular methodology and trading system.  After investigating trade-by-trade … Read more How a Commodity Trading Advisor may use Expectancy & R Multiples
  • Do You Know How To Survive A “Locked Limit” Market?

    | | Education

    A futures or commodity market is “locked-limit” when trading is suspended due to prices moving the exchange-stipulated daily limit, this can happen for one day (it can even lock-limit and then trade off), or if given a news event monumental in nature, the market may stay “locked” for as many days needed for market participants to come to an equilibrium.  If you trade futures and commodities and you have experienced a locked limit market it can be either one of the best days of your life (if you’re on the right side), or a complete disaster (E.g.: Sept. 11th or the … Read more Do You Know How To Survive A “Locked Limit” Market?
  • Every Investor Needs an Edge… What’s Yours?

    | | Education

    When a CTA or Money Manager is testing or back-testing their entry signals one of the most important aspects they look at is if the technique’s they are using has a distinct “edge”, for the time-frame they are trading (short-term, swing, long-term, etc). Positive price movement is when the market goes in the direction of the trade.  In other words when you buy, it’s good when the market keeps going up, and bad when the market moves lower.  When you sell short, it’s good when the market moves down and bad when the market moves against you and goes higher.  … Read more Every Investor Needs an Edge… What’s Yours?
  • Six Keys To Trading A Commodity Trading Advisor Knows That You May Not…

    | | Education

    Most professional CTA’s look and think about trading in a much different way than an average trader or investor would, and the reason for this is not hard to understand.  If a CTA is successful what it means to me is that they have dedicated their lives to the craft.  Every trader wants to be successful, the subtle difference with a profitable CTA is that they need to be successful, this is their livelihood. They are willing to spend every waking hour learning their craft, testing and back-testing new systems, methodologies, and philosophies, this obviously takes a lot of time.  Think … Read more Six Keys To Trading A Commodity Trading Advisor Knows That You May Not…