This is a recording of today's live stream where we covered software training and trading analysis. Hope you enjoy!
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Aug
28
Aug
25
This is a short video discussing a question recently asked; how do you remove fear in trading? Hope you enjoy!
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Aug
17
This is a short video to discuss a question asked regarding an opinion on the easiest and hardest part of a trading strategy?
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Aug
10
This is a short video to discuss a question asked regarding trading being complicated and what we believe!
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Aug
06
This is a short video to discuss our experience with how we are conditioned to think we need to be right the majority of the time!
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Jul
20
Jul
15
This is a how-to tutorial covering 6 Fibonacci price patterns, how to validate each and their corresponding, precise entry and exits.
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Jun
26
This is a short video displaying potential Fibonacci Price Projections, S&P 500 Futures… Do you think the S&P will reach the 4350 projection this week this week?. Hope you enjoy!
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Jun
21
This is a short video as a follow up to a previous step by step demand tutorial posted which can be found here. Hope you enjoy!
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Jun
20
This is a short video tutorial to cover day trading supply and demand using the Nasdaq futures market. Hope you enjoy!
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Jun
20
This is a #short video to show the inverse correlation between the VIX (Fear Index), and the S&P 500. Hope you enjoy!
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Aug
18
A futures contract rollover is used by traders to switch from the current month which is closer to expiration into a different contract expiring in a later month. Unlike stocks, a futures contract has an expiration date. Futures are rolled over or transferred to a new month. This helps prevent the obligations and costs linked with the contract settlement. A futures contract is normally settled through physical or cash settlements.
Reasons for Futures Rollover
When you roll a futures contract, you are essentially prolonging the maturity or expiration of your initial position and using the same underlying position in order to start a new contract which can be held for a longer term. This way, the trader can retain their initial risk position even if the initial contract has passed its expiration date (this is important because a futures contract can only have limited expiration dates). The roll is usually executed shortly prior to the expiry of the original contract and after loss or gain on the initial contract is settled.
Confirm Controlling Orders
If the contract is physically delivered, the position needs to be closed out prior to the first notice day. However, in the case of cash-settled contracts, the closure needs to happen before the final trading day. Normally, contracts are closed through cash, with the investor simultaneously entering the same contract having a further-out expiration date.
Jun
14
Introduction
The mania of meme stocks that started in January with GameStop Corp, shows no signs of slowing down.
The 8th of June saw meme stocks, such as Wendy’s, Clover Health, and AMC Entertainment, go up for a second consecutive day, thanks to the innuendos caused on social media that led to the Wall Street rumblings ever since the start of 2021.
May
26
Introduction
The universe of futures presents highly leveraged opportunities. However, if you are a trader considering futures trading, you should have a fundamental understanding of the process in which futures are taxed. In this article, we will be covering exactly that.
How are Futures Taxed?
Compared to equity traders, futures traders benefit from a more favorable treatment of taxes. According to section 1256 of the IRC (Internal Revenue Code), any futures contract traded on a U.S exchange, foreign currency contract, dealer equities option, dealer securities futures contract, or non-equity options contract are taxed at 60% long-term capital gains rates and 40% short-term capital gains rates (60/40) - regardless of how long the trade was actually held.
Apr
19
Even if you are relatively new to trading, there is a fair chance that someone has brought a Virtual Private Server (VPS) to your attention and that it is highly beneficial for trading. Even though a VPS is usually associated with website hosting, it does have several advantages when it comes to trading – stocks, futures and forex trading, in particular.
What is VPS?
A VPS (Virtual Private Server) is a unique kind of server belonging to a computer which contains multiple other VPSs. Even though these servers are housed on the same system, each one can function independently.
If you have your own VPS, you can then install your preferred operating system, reboot the system, and essentially enjoy complete control as if your server was the only one on the machine. For every month, you get a specific amount of RAM, space, and transfer allowance. Moreover, owing to its independent power supply, a VPS promises convenience, stability, and flexibility.
Mar
30
What is Inflation?
To put it simply, inflation is defined as the rate of increase in the general price levels of goods and services in a particular economy. The two main types of inflation are:
1) Demand-pull inflation:
This inflation type stems from an increase in credit and money supply, and the consequent rise in demand for goods and services. This increase in demand is greater and faster than the resulting increase in production capacity, thereby leading to product and service shortages and higher prices.
Mar
15
Often, investors are curious about the differences between hedge funds and mutual funds. Both have similarities in that they make use of diversification to achieve returns and are constructed from pool funds, meaning the funds' capital is derived from multiple investors which is then used by the manager (or managers) for investing in securities that fulfill specific criteria or requirements.
Having said that, there are some marked differences between mutual funds and hedge funds, and those are exactly what we will be discussing in this article.
Sep
27
I cannot count the times that I've been asked the question "If too many people learn supply and demand trading rules, will it stop working?". The simple answer in my opinion is absolutely not but let's look at a few of the many reasons.
Trading Styles
Each individual trader is unique and has their own personality of trading. Some may trade very short-term and others may prefer to hold their trades. While both of these individuals may be using similar rules for supply and demand trading, their orders will almost always be different because of the data they are analyzing.
Mar
16
Trying to find levels of supply and demand on a price chart is not an easy task. Especially given the fact that most individuals have their own unique personality for trading, such as risk management, time frame, asset class, confirmation type (if any), confluence measures and others. Below I will address two ways that will hopefully assist in how to locate these areas to generate a zone.
Validate Order Flow
Significant Imbalance of Orders
Looking for trading setups is not the same as looking for high probability trading setups. For instance, there are many levels of support and resistance on any given price chart that may have visual appeal, however the order flow at this location may not be massive (either not originally there or retested and filled). While there is no true way to predict or even determine the amount of remaining orders at a level, it makes a lot of sense to put the probability in favor to the best of our ability. The first way to achieve that is looking for an area with a vertical (strong) departure. When referring to demand the move should be to the upside and vise versa for supply. The more vertical price leaves the area in question, the greater the possibility is that many orders were left unfilled and still wish to be executed. Those orders can be used for future confluence purposes and increase the chances of another turning point from this precise location. Another factor of significance is the distance of the departure; to put it simply the further price gravitates away from the origin, the stronger the imbalance (in theory).Confirm Controlling Orders
Understanding which type of order flow has most recently prevailed over the opposing can add extensive probability to an upcoming turn in price. To do this we need to first determine an opposing level (if qualifying demand look for supply, if qualifying supply look for demand). Once we have it the battle begins and whomever prevails has proven that it is indeed stronger than the opposing side of the market at that time. When combined with the above "Significant Imbalance", theory tells us that we are stronger to one side and there are likely still unfilled orders at that location which is what we can use for future confluence.Is This All That's Needed
In our opinion there are multiple points to consider before qualifying a true supply or demand imbalance (level). The above two items are certainly at the top of the list for qualifying a level itself, however just because a level is present doesn't necessarily make it a viable setup. Some of the additional components that we factor into our analysis include multiple time frame (MTF) direction, MTF supply/demand and support/resistance zones, market structure and fibonacci ratios to help influence the type of orders we are looking for (buy or sell side) at that time. It's all about the location, location, location.
Jul
26
There are endless ways of thinking about the financial markets; for the sole purpose of this article I would like to focus in on only two, specifically regarding technical (trading) vs fundamental analysis (investing).
Technical Vs. Fundamental Analysis
Investing
Many investors focus on longer term ROI (return on investment) and are not as active in the management of their position(s). By having a more hands-off approach, many of the day to day emotions are alleviated or at least reduced. This is due to the removal of the “noise/volatility” that each instrument produces, even down to a microscopic level. While the type of analysis is based on the individual or entity’s personal approach, commonly there is a good bit of fundamental analysis involved. So instead of looking at technical indicators and/or price action, there may be more economic, financial and quantitative determinations to base the investment decisions on, and measure its intrinsic value.
