by: Matthew Bradbard
January 10, 2010
Definition/theory:
Swing trading is typically defined as a trading practice whereby the underlying instrument is bought or sold at or near the end of an up or down price swing caused by daily or weekly price volatility. A swing trade position is typically open longer than a day, but shorter than trend-following [...]
December 09, 2009
By: Matthew Bradbard
Last night I took a trip down to Miami to visit with Jim Rogers at a book signing for his most recent book entitled: “A Gift to My Children a Father’s Lesson for Life and Investing.” After speaking briefly about his 3 year tour around the globe he spoke a little [...]
Well as month end nears and volumes start to drift expect volatile movements as seen with the reversal in equities mid-day the rally in oil and the fall in the dollar. We remain spectators in the stock market comfortable viewing from the sidelines. The move in oil was impressive as we missed a pretty nice [...]
June 4, 2009
By: Matthew Bradbard
The Option Greeks
When trading commodities there are 2 basic ways to trade: futures or options. Depending on the portfolio size, the risk tolerance and ultimate goals we will suggest assorted strategies to take advantage of the same anticipated move in an underlying commodity. That may mean an individual speculating on [...]
April 8, 2009
By: Matthew Bradbard
In the last few weeks I have received several inquiries from existing and prospective clients. They are curious to know if I look at the commitment of traders (COT) report and if I view it as a useful resource for commodities trading. The answers are yes and yes. There are so [...]
Forwarded by a trader at FC Stone
1. Excesses in one direction will lead to an opposite excess in the other direction. They always do. Until everyone fears the worst, and capitulates, markets will exceed expectations. Then, in the correction, will exceed expectations again.
2. Markets tend to return to the mean over time. This is especially [...]
By: Matthew Bradbard
“After spending many years in Wall Street, and after making and losing millions of dollars, I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight. It is no trick at all to be right [...]
By: Matthew Bradbard
An intracommodity spread is long one future and short another. Both have the same underlier, but they have different maturities. An intercommodity spread is a long-short position in futures on different underliers, both typically have the same maturity. Spreads can also be constructed with futures traded on different exchanges (interexchange spread). Typically this [...]
By: Matthew Bradbard
It is vital to have a trading plan when investing your hard earned capital. Many of these lessons may seem elementary, but what fascinates me is talking to fellow commodity traders over the years and finding there is still a lack of discipline.
Below you will find some common disciplines that [...]
By: Matthew Bradbard
There are two major types of analysis normally used to predict the performance of commodity futures: fundamental and technical. Fundamental analysis examines the supply and demand factors that influence price, while technical analysis is the study of price and price behavior. The world of technical analysis is complex, but with a working [...]
