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Are you having trouble finding the balance between your trading and the rest of your life? Since you took up trading, do you seem to be possessed by it? Trading can be all-consuming. You don’t seem to have time for your family, or any recreational activities. Is it always going to be that way...

Have you ever wondered how to get your ego out of your trading? Have you wanted to be market-centered, but find yourself consistently being self-centred? One thing I know for sure: your self concept has to be separate from your trading. You began as an individual long before you ever thought...

Disgruntled The following situation happens quite often to many traders. Look it over and see if it has been happening to you: You have been faithfully following your trading plan and the rules you've set for trading. By following them you are now in a trade that doesn't look so good...

"Hey Joe! How do we know when prices are getting ready to break out from a trading range?" Trading in a trading range When prices are in a trading range, count the number of closes above or below a specific price near the vertical mid-level of the trading range. If 70% of the closes are...

"Hey Joe! How do I get my ego out of my trading? I want to be market-centred, but I find myself consistently being self-centred." - Trader - One thing I know for sure, your self concept has to be separate from the trading. You began as an individual long before you ever thought of trading...

The book will give you a good start. If you purchase the book, inform me that you have it and I will send you out some additional items at no cost that will help you even further. JR

Mohammedakram, here is a corn spread I am currently in:

=================================== Alaikum salam, Mo I very much like futures spreads over option spreads primarily because of the currently available information with regard to them. A futures spread is easier to work with as well. Option spreads tend to get complicated because for the...

======================== Hi Samson, You are asking a question I cannot truthfully answer. How long it takes depends upon the spreads you choose to take. I am extremely selective in choosing my spread entries. Last year I made only 12 spread entries. All of them were winners and the...

To the best of my knowledge the concept for variation margin is the same for spreads as it is for futures. However, I’m not at all familiar with the procedures at CFE. Ciao, JR

Spread margins are computed by the exchange in much the same way as Span margins are computed for options. Margins for spreads are primarily a function of the volatility of the underlying. Therefore, if the underlying futures become increasingly volatile, spread margins will rise. And if the...

The only place I can think of is the Chicago Board of Trade. They are the ones who deal the most in interest rates and interest rate futures. That would be for US interest rates. For UK it would be the LIFFE and for Europe it would be Eurex

Dear BlueHorseshoe, I agree with you that there are better ways to play the interest market than simply selling GBL, ZN, and ZB. I think a combination of spreads, outrights, and options are usually a better way to go when considering the longer term, which the interest rate situation should...

Spread Trading Have you already considered to trade spreads? They have very low margin requirements and they produce up to 10 times more return on margin than most other trading styles. Did you know that spread trading is probably the most profitable, yet safest way to trade futures?! Yes...

It didn’t in the past because volume was a day late and a dollar short, when trading the daily charts. But these days, where volume is live, it does count. We use both contract volume and tick volume as a guideline and filter for our trading. Here’s a simple idea that works well for...

Defined risk is something to be quite concerned about. We always want to keep it as small as possible relative to the anticipated reward. Risk can come in unexpected ways. As a rule, you don’t count on lousy or unreasonable fills. You don’t count on the market being under fast conditions...

Part 5 How to deal with change in the markets Today is an exciting age of unprecedented change. Change presents unique challenges and opportunities. When change brings success, you have to keep your ego from getting out of hand. When change is negative, have both common sense and a sense...

Part 4 Other changes in markets There are many ways that markets change. In 1997 the multiplier for the S&P 500 stock index was cut in half. Since then, we have seen the introduction of the e-mini S&P 500, the Nasdaq Index, the e-mini Nasdaq, the e-mini Russell 2000. Along with those...

Part 3 What happened in the S&P is a story unto itself. Story of S&P We began our story of S&P day trading by looking at how day traders affect the markets. We saw that in the currencies, the market affected the day traders, and eventually drove them out, and volume and liquidity...

Part 2 Daytrading history So far I’ve shown how trend following models and value models affect the markets. Now let’s take a look at day traders. Daytrading began to be fairly common in about 1980. Most day traders traded either the full S&P 500 (500 times the index), the...