Recent GuyBower's Commentaries
Why Illiquid markets can be awesome
Here is a perfect example of why you should be trading when others are not: On the Wednesday of the first week for 2012, we had a massive rally in the first few hours accompanied by a spike in volume. Perhaps it was funds returning from holiday looking for a home (it certainly looked like that)....
Read More »
Tags: all-articles | day-trading-amp-scalping | spi | futures
Rate Cut Probabilities
When discussing upcoming rate cuts, you'll often hear news services talk of the 'probability' of a cut or what the market has factored in. For the Australian market, here is how to calculate the probability. The cash rate futures trades on the SFE settle at the end of the month at a price that eq...
Read More »
Tags: day-trading | scalping | fundamentals
A Path to Profitability
This article is from the most excellent SMB blog: " "If I increase my stop then I will start making money." This just might be the single silliest thing I have ever heard a trader say. No "trading is in my genes" is. I will offer a path to profitability to consider. Look there is no one right way...
Read More »
Tags: day-trading-amp-scalping | learning-to-trade | prop-trading | proprietary-trading
The Best Books for Active Day Trading
Trading From Your Gut by Curtis Faith A really great book on building your instinct and intuition - a skill that is important in active day trading. Amazon link One Good Trade by Mike Bellafiore Probably the best book written on trading in recent years. It is an insight into the world of non-algo...
Read More »
Tags: day-trading-amp-scalping | day-trading | market-wizards | scalping | book-review
How Can You Fight Another Day?
Guy, Is it common to see day traders having consecutive tough weeks and still find a way to keep coming back ready to fight another day? I think the fear of stopping out and not being able to churn out the profits is taking its toll on me. I was doing good last week but then, this week I just got...
Read More »
Tags: day-trading-amp-scalping | day-trading | futures-trading | futures
One Way to Fix Randomly Wrong Trades
Guy, I am having a tough week. This weird cycle I have since many weeks ago keeps happening and I need to break it. Somehow, I will be up early in the day, then mistakes start happening. I have noticed that nothing is different about my psychology, and my thinking (NO revenge trading etc), but ju...
Read More »
Tags: all-articles | day-trading-amp-scalping | day-trading | over-trading | psychology
25 signs that the financial world is about...
From The Economic Collapse: The following are 25 signs that the financial world is about to hit the big red panic button…. #1 According to a new study just released by Merrill Lynch, the U.S. economy has an 80% chance of going into another recession. #2 Will Bank of America be the next Lehman...
Read More »
Tags: all-articles | fundamentals | recession
Trading the Obvious?
Today’s SPI and S&P are great examples of ‘buy rumour sell fact’. Bullish in the morning after pretty much all the press was expecting Yen intervention. Then there was the announcement (shortly announced to be false). The Dollar rallied, SPI didn’t (as it had already had a great run), then the Do...
Read More »
Tags: day-trading-amp-scalping | spi-futures | futures
Q&A: Reading the Market
Question: This type of market (S&P and SPI) may make you think a bottom is around the corner and you be lured into buying at the first sign of reversal. How can we avoid taking the wrong signals? Answer: Well in any trend, there are always signs of reversals. Assuming there is no obvious sign, no...
Read More »
Tags: day-trading-amp-scalping | day-trading
30 Minutes on Futures
This 30-minute video provides a basic introduction to futures in easy-to-understand language. It is presented by Dan Gramza, a world-renowned futures industry expert known for his teaching and trading expertise.
Read More »
Tags: fundamentals | futures-trading | what-are-futures
Crude Oil Fundamentals
For those new to or interested in crude oil trading, here is a short vid from the CME explaining the basics.
Read More »
Tags: fundamentals | cme | crude-oil | nymex | oil-futures
Q&A: Do you use a synthetic spread...
Answer: The short answer is no. Day to day I use CQG Trader for spreads while our dealing room uses XTrader mostly. Both of these systems have a spread creation function. CQG call their system CQG Spreader and the ‘Autospreader’ function on XTrader is comes with the Pro version. Note with many of...
Read More »
Tags: all-articles | spreads | futures-spreads | spread-trading | synthetic-spreads | trading-platform
Q&A: Trading Currency Spreads
Question: I was just looking at the spread between September 2011 and March 2012 Canadian Dollar. Is this worth trading? Answer: To be honest, I am not a big fan of currency calendar spreads. First of all, volume is low for the deferred contracts. That’s enough reason in itself. March12 has just ...
Read More »
Tags: spreads | canadian-dollar | currency-spreads | spread-trading
A Simple Spread in Crude Oil
Here is an interesting pattern in Crude Oil calendar spreads. The recent sell off in Crude was sharp and violent and suggested bear spreads (short near month, long far deferred) would benefit. Interestingly, bear spread took a long time to react, almost as if it was waiting for the market to hold...
Read More »
Tags: all-articles | seasonals | spreads | protrade | spread-trading | trading-crude-oil
Aussie Bills and Bond Futures Stats
Here are a few screenshots from some training drills we ran we trainees at Propex. They pretty much speak for themselves.
Read More »
Tags: all-articles | day-trading-amp-scalping | bond-futures | guy-bower | propex | sfe | sfe-bonds
