Last time we discussed the theory of climbing back out of a dip having avoided the bulk of the drawdown that might have otherwise been experienced. During the recovery the aim is to increase size quickly in order to More →
The markets appear to have stabilised after a most challenging period. For the first time in quite some while we seem to be seeing a period of more normal volatility. That is not to say that conditions are perfect as clearly they aren’t. However most markets are at least tradable once again. So More →
It seems impossible, but June 17th 2010 marked 28 years since the day we not-so-fondly refer to as the “Blowout”.
To begin the story, my wife came from a little farming town in Northwest Iowa.
Everyone in her little town followed the grain markets.
Many traded corn and soybeans futures and a few were big traders by any standard.
Several people in her home town became and remain my best friends.
My best friends there traded grain spreads during the same time I began to do well trading wheat on the trading floor.
As I had a relationship with E.F. Hutton, my friends and I did our trading through EF Hutton, one of the largest brokers at the time.
My friends were trading seasonal grain spreads and had made money in their trades time after time.
They started with small trades, but More →
I had some fairly awful jobs when I was working my way through college.
My longest running job during college was delivering 160 pound soft-water tanks into people’s basements while their dogs snarled at me.
The oversized metal tanks I lugged into the houses made the dogs absolutely crazy. I remember a big German Shepherd viciously biting the tank I was holding at the same time the lady of the house was telling me not to be afraid of the dog.
However, as bad as I may have thought my soft-water tank delivery job was, it does not compare to the job of the Chinese soldier, pictured at the left.
Can you imagine a less appealing job - holding up a target while other soldiers shoot at it?
At least it does not take much effort and it is one of the few jobs in the Chinese Army that allows, even encourages, you to sit all day.
Using targets in trading can be like that – easy to do, but More →
I will never forget the day a few years ago when I was watching the risk in our proprietary trading firm. It was a quiet, nondescript day. Like all days, I was watching our firm-wide P&L like a hawk.
All morning our P&L was up $3,000 to $5,000.
We had 25 traders trading mostly Eurex Bund, Dow Jones EuroStoxx 50 and DAX. No single trader was ahead more than a couple of thousand and none were behind more than a few hundred.
Just another normal, quiet day…
or so I thought.
Then I looked at my P&L screen and saw that we were no longer up $5,000, but we were down $10,000 then a second later we were down $50,000, then $110,000.
I raced out of my office and asked the traders what was happening in words not suitable for polite company.
The traders replied similarly that they did not have a clue, but the DAX and the Dow Jones EuroStoxx 50 were in free fall.
Seconds later More →
Earlier this year, hedge fund manager Simon Townshend presented a private webinar to traders in my Electronic Trader Mentoring Program.
In his presentation, Simon revealed an amazing secret that he has been using in his own trading to great effect.
Most traders develop their techniques around chart patterns or a range of indicators.
Simon’s approach is quite different.
He argues that More →
You can receive full access membership to the ElectronicFuturesTrader.com website for $49.95 per month and receive :
Sign up now for only $49.95.
P.S. Traders currently in my Electronic Trader Mentoring Program (meeting with me on a regular basis) receive full membership access as part of their mentoring. This is yet another reason to join this group of serious traders, if you have not done so already.
In the ring with Jeff Quinto in my corner
I’ve used many analogies, but have settled on boxing as the closest fit to trading where your opponent represents the market. More →
Since starting in 2003, Simon has produced an annual profit averaging 40% and confidently expects to improve upon this in future. Despite his success Simon firmly believes in the continued use of expert coaching and this article illustrates his reasons why…
2008 what an astonishing year!
Once again the market served investors with a timely reminder More →
