Wednesday, March 28, 2012
Friday, March 23, 2012
About time for a pop in SODA?
The swing low has not happened yet. Wait until it does before you buy. The comment in the chart is an old comment from the previous swing low.
Friday, March 16, 2012
Understanding the US-Dollar Future.
Few people understand how to trade the futures. I realize many of you are trading with a account under $25,000 and you have limited trades you can make. Futures allow those under that level to trade constantly and with small amounts of money. You will not have restrictions or get a PDR.
I will use the US-Dollar Future (Symbol: DX) as an example. The picture below shows several red boxes. These are the most important to calculating your risk for your trades. All of you should understand closing price so I wont go over that. To calculate the movement of the future you need to take the "Multiplier" and multiply it to the "Increment" (bottom right). So here is the example.
For every $1663 you have you can buy one 1 US-Dollar contract. The current price of the dollar is 80.505. So for every .005 this future moves you will make or lose $5. Not bad considering UUP(US-Dollar tracking stock) has very very low volatility. Futures are better than options in my opinion because they do not decay over time. The amount of money you make stays constant. You can google "Option profit calculator" to see what I mean about time decay.
Posting the picture on the blog has somehow faded the picture and I have no way of fixing it.
Tuesday, March 13, 2012
Monday, March 12, 2012
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