Wouldn’t it be great to know what the majority of short-term traders and longer-term investors are thinking about a given market or asset? If you were able to perceive what these two distinct groups were thinking, then such knowledge might
Futures Trading
Diversifying Your Stock Portfolio with Futures
Dow Jones Industrial Average Index – January 2 to March 12, 2020 US markets have been on an accelerated decline due to Coronavirus fears since February 21, 2020. Now, with the COVID-19 virus situation being considered a global pandemic, the
Futures Trading Basics: All About Trailing Stop Orders
Many traders freely place a basic stop loss with every trade they enter, but trailing stops can seem more complicated and may be used less often, if at all. The purpose of a stop loss is simple to understand –
Anticipating a Breakout – Case Study: S&P 500 on October 28, 2019
There are certain major market movements that can be anticipated simply because all eyes are on the outcome. When approaching such a critical juncture, the outcome can sometimes be explosive, either moving the markets upward or downward. Rather than focusing
How Markets Can Turn on a Dime Amid Economic Uncertainty
S&P 500 Index – Daily Chart – April 15, 2019 to October 22, 2019 Take a look at the two days in the orange box. It might not look like much from a big picture perspective but both days–September 11
Lessons from the Bitcoin Bubble
If you walked into a grocery store or a coffee shop in December of 2017, you likely overheard several people talking about numerous cryptocurrencies, sounding almost as if they were crypto-experts. Everyone seemed to have a crypto recommendation. It was
Trading an Automated System? Think Twice About Using Equity Curve As Your Primary Assessment Metric
There are many metrics you can use to evaluate a trading system’s performance. Too many, perhaps. You may be wondering how an automated system’s drawdowns weigh-in against its annual ROI, or whether the MAR ratio might provide a clearer picture
Order Flow Series: Speed, Limit Orders, and the Other Side of Order Flow
In our previous two installments of our order flow series, we’ve covered the way order flow works and how to take advantage of the imbalances within the order flow process. In this installment, we’ll cover the other side of order
Day Trading the Opening Range Breakout in Today’s Digital Markets
Nearly three decades ago, right before the advent of 24-hour online markets, digital finance, dancing baby videos, and fake news memes, commodity markets actually closed for the day. This meant that if you wanted to trade, you had to wait
Order Flow Series: Taking Advantage of Order Flow Trade Imbalances
In last week’s post, we covered the basic mechanics of an order book as viewed in a DOM. The only setback in following order flow from a DOM is that once the order has been filled, the numbers change and