Stops…Damned If You Do, Destroyed If You Don't!

By: Leslie Burton

Trading in commodity futures can be a very challenging plight and the risk plan may mean the difference between a long-term trading life and a short-term trading life. Of course, there are traders that simply do not believe in stops and swear that the other brokers and/or traders are gunning for their stops.

First off, a stop may be a protective stop to offset a long or short position to limit the losses if the market moves against you. You may also use a stop to enter a market as channel breakout traders may want to buy and go long if a market breaks through support or sell a market if the market breaks through support. Buy stops are placed above the current market price and Sell stops are placed below the current market price. A stop order turns into a market order when your price is elected. In a liquid market, it may be at or close to your price. If you are in an illiquid market, the stop may be elected, but your fill price may be further away from your price depending on the market activity. A “static stop” remains fixed on a position until executed. A trader must remember, if offsetting the trade manually, to cancel the stop. A “trailing stop” may be used to lock in and protect profits as well. It may be set to follow your position by a certain number of points or ticks to move the stop up or down with the market. This may be done manually or by a bracket automatically. There may be conditions such as a limit moves whereby the market may be moving too fast and may pass through your stop price without triggering in creating more of a potential loss than anticipated. The term "limit up" and /or "limit down" is the amount of points, ticks or cents that a market may move within one session. The Daily Limits are set by the exchange to control the volatility until the market returns to a more stable state. Continue reading "Stops…Damned If You Do, Destroyed If You Don't!"

Beyond the "Spotlight"

For the Week of May 28, 2013 The GBE Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.Highlighting This Week’s Potential Breakouts:

Let’s take a look at two energy market sector markets as we enter the “Summer Driving Season”.

July 2013 Crude Oil

Based on Cash charts, the Crude Oil contract tends to sharply drop in June, slightly retrace in July, and gradually sell-off through the remainder of the year. Even though this data was tracked over a twenty-five year period, the contract might not always follow this pattern due to fundamental and technical reasons. The July 2013 chart appears to have found resistance along an upper trend line and technically setup to sell-off. This falls right in line with the Cash chart. Continue reading "Beyond the "Spotlight""

Why Futures for Stock Traders?

By: Leslie Burton

Whether you have traded a stock account for years or have just begun stock trading, you may have mixed results. Perhaps you have taken a course or you are simply well-read in your investment choices. The questions that every investor, trader and wealth manager must ask are, Am I diversified enough to produce a smooth equity curve with my portfolio? and Will this portfolio be weighted well enough to stand worst-case-scenario market conditions? If you hesitate to answer those questions, then perhaps taking a look at other products may broaden your knowledge and enhance your current investment portfolio.

The beauty of trading stocks online is that it keeps overhead costs down by trading out of your home. You will have immediate access to market information along with your account to place trades as you check the stock earnings, operating costs and any news that may impact the company. Typically, the cost of doing business is your low commission rate, use of your home computer and any subscription material to keep you informed. Most trading occurs in expanded hours, giving the investor time to trade whether it is a full-time or secondary job. The online platform allows the trader convenient access to the funds in his/her account readily. Continue reading "Why Futures for Stock Traders?"

Beyond the "Spotlight"

For the Week of May 13, 2013
By: Don DeBartolo

The GBE Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.

Highlighting This Week’s Potential Breakouts:

June 2013 British Pound

The June 2013 British Pound futures contract closed below a lower trend line on Friday. There are touches on the trend line at 1.4823 (3/12/13), 1.5027 (4/04/13), and 1.5192 (4/23/13). The Trend Seeker (a US Chart Company tool to help identify market trend) is Neutral. The MACD, a trend indicator, is bearish and above the baseline. Although MACD is bearish, until the Trend Seeker changes to a Downtrend, there is no entry trigger confirmation. Continue reading "Beyond the "Spotlight""

The Gold & Silver Speculator

Catastrophe in Cyprus: Desperate times call for desperate measures. Euro Troika (IMF/EU/ECB) aims bazooka squarely at depositors & fires: Outright theft and confiscation of private property...disaster ahead?

Despite the strange, absurd sense of normalcy that has somehow prevailed this week, the world is witnessing a horrifying, slow-motion bank robbery in progress. With hostages…lots of ‘em. Or maybe you could say it’s a financial train wreck? However you describe it, it is absolutely revolting in every sense of the word.

By now, you are probably well aware of the inexplicable, sordid details of this state-sponsored attack on the rule of law and confiscation of private property, so I won’t go into great detail about it, but I must say that I am still shaking my head in shock (and disgust) at what the unelected, non-accountable bureaucrats have unleashed upon the world. Continue reading "The Gold & Silver Speculator"