It was reported by CNBC this past week that hedge fund manager John Paulson has lost over $1 billion of his own fortune due to the plunge in gold prices since the beginning of the year. I can tell you with confidence that many trend following commodity trading advisors are making millions on the opposite [...]
Read More...Traditional proponents of employing the trend following doctrine in futures markets suggest that a trader needs to trade a diversified portfolio of markets in order to have the best opportunity to exploit trends when they come along. This is most certainly true, but not all markets are created equal in this regard. A review of [...]
Read More...For investors seeking to diversify their portfolios, currency futures are an excellent place to start. Currencies are the best trending markets to trade, and therefore it is relatively easy to build trading strategies around these markets. Furthermore, trading a portfolio of currency futures can provide investors with solid returns in markets that tend to be [...]
Read More...Professional traders approach trading in a different manner compared to the average person. Professional traders approach trading in a similar manner to how a martial artist develops their skills as a fighter. They first determine their trading doctrine, which is their overall approach to trading in the markets. They then develop strategies in accordance to [...]
Read More...Most investors are told that all they need for proper diversification in their investment portfolios is a proper mix of stocks and bonds. Unfortunately, in times where market conditions are volatile, neither asset class will provide you with much protection. For instance, in the typical bear market for stocks, about three out of four stocks [...]
Read More...Many years ago I discovered that a friend of mine from college worked for a very famous futures trader at an offshore location. I immediately contacted him and we had the opportunity to talk about a few trading war stories. I had only been trading for a couple years and had made some money using [...]
Read More...In their book “Street Smarts” published in the mid-1990′s, Larry Connors and Linda Raschke gave one of the strategies they presented the tongue-in-cheek name “Holy Grail.” The beauty of the strategy was its simplicity….you look for a strong trend, a pullback to a 20 period moving average, and then resumption of the trend to enter [...]
Read More...The great recession began in the Fall of 2007 and some would argue that we have not yet begun a recovery. At that time, the S&P 500 peaked with a high close just under 1550. Over the next 18 months or so, it declined to a low under 700, or a drop of over 50%. [...]
Read More...Most investors have a need to know WHY an investment will go up or down in price. As a result, most of the analysts you see on the financial networks tend to spew out information regarding the fundamentals of the economy, individual stocks and commodities. Unfortunately, most of this analysis doesn’t do the investor any [...]
Read More...If you are new to futures trading, I highly recommend you consider the currency futures first, and forget about day trading. Why the currencies? Simply because they trend better than any other market. I’ve found that most new futures traders want to jump head first into trading anything that moves, and they are particularly fond [...]
Read More...