Options Spreads strategy, let us talk about it. If you want to buy high-probability spreads, there are specific places where you have the advantage. And, there are other specific places where it is just pure gambling. And, we don't gamble, EVER. We take calculated risks, where the probability of success is much higher than the probability of...
Have you ever found yourself in a situation where trade was closed out before reaching your intended stop loss level, or where the market reaches your profit target but the trade never closes in your favour? It can be frustrating and confusing, leaving you wondering what went wrong. You may even start to blame your broker or the market itself, thinking they are...
Hello hello! In this post, we'll take a look at the basic principles behind the spread in forex market and why it is important. In the foreign exchange market, the spread is the difference between the bid price and the ask price for a particular currency pair. The bid price is the highest price that a market maker is willing to pay for a currency, while the ask...
Do you know how much money you’ll risk every time you take a Forex trade? To be an astute Forex trader, you’ll not only need to know your trading levels such as your entry, stop loss and take profit price, but you’ll also need to how much money to deposit into your trade to risk a certain portion of your portfolio. We’ll go through a three step checklist, you’ll...
The rule is very easy to understand. Whether you trade using CFDs or Spread Betting, the rule is the same. Never risk more than 2% of your portfolio on any one trade. It’s one rule that you can use whether you have a R1,000 account or a R10,000,000 account. You see, trading is a forever business. This means, as a trader you should risk as little of your...
Not sure what happened but the image didn't show. Here it is again... This is the most important concept you’ll need to understand to accelerate your account. During your trading experience, with gearing, you’ll learn how to multiply your profits. But you can also multiply your losses, if you don’t know what you’re doing. So listen up. What Gearing is in a...
What are CFDs and Spread Trading? Spread Trading (betting) and CFDs are financial instruments that allow us to do one thing. To place a bet on whether a market will go up or down in price – without owning the underlying asset. If we are correct, we stand a chance to make magnified profits and vice versa if wrong. Both CFDs and Spread Trading, allow us to...
Some futures markets offer contracts that are related to others and are processed products of the commodity. Understanding the price relationships, history, and paths of least resistance of the processed product versus the original input can provide valuable insight into supply and demand fundamentals. Moreover, these relationships shed light on other related...
This one can be a volatile spread, and that goes both ways. The idea is to buy Live Cattle and sell Lean Hogs for a trade that runs May though to August. The reason for this trade is seasonal. That is, there is a pattern that tends to repeat itself each year. Heading into mid-year, Cattle slaughter tends to be high while Hogs are at the opposite end. But that...
Spreads are complex instruments. This is just an introduction and some ideas to get our brains ticking over. I had started writing a guide to understanding these three types of spreads, but it just got a little long. It might be easier to do it this way: What do you see above? Here are some observations to get started: 1 All spreads topped out well before June...
In this video I go over a type of spread trade that I do on a regular basis. This type of trading is popular with hedge funds and is very powerful type of trade to have in your trading toolbox.
In this issue, we’ll discuss the differences between both CFDs and Spread Trading… What are CFDs and Spread Trading? Spread Trading (betting) and CFDs are financial instruments that allow us to do one thing. To place a bet on whether a market will go up or down in price – without owning the underlying asset. If we are correct, we stand a chance to make...
Recently, the Russel2000 and the Nasdaq100 are developing more and more in different directions. Since we expect a weaker stock market in the coming weeks and months and the Nasdaq100 can drop significantly lower, the possibility exists for a spread trade in both assets. The approach is relatively simple: Long in the Russel2000 and short the Nasdaq100. IMPORTANT...