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Digg it UP - My Experiences Trading U.S. Bonds and Interest Rate Commodity Futures Contracts and Options
We recently had a client who is a multi-national retailer with both a physical and Internet presence. The client needed a way to acquire certain business intelligence (BI) data from the Internet on a daily basis. After several unsuccessful attempts to create this functionality themselves, they came to us for a solution.On the surface the requirements seemed to be difficult and it was easy to see why their own IT team had failed to find a solution. They were thinking "inside the box", however, and hadn't considered third-party alternatives. The specifications required that the application perform all of these tasks:Retrieve new product listings on co
The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professional
Even the best of us get duped.... Buyers and Sellers alike.With the growth of the internet, fake merchandise has increased tenfold; especially fake designer goods. Fake no longer means poor quality. Actually in some cases, the fakes look the EXACT same as their authentic counterparts.Marketplaces such as Overstock and eBay have been cluttered with fakes for the last couple of years. They are taking further action to to put a stop to the peddling of this merchandise that has been floating around on their sites for years. More and more sellers are being suspended and given the "boot" from these as well as other sites. Some sellers have been removed un
When it comes to trading interest rate futures, there's no market like US Bonds! It's the most liquid and has the best price swings of the interest rates group. US Bond futures contracts are also called the "long bond" or the "30-year bond, James Bond." Trailing behind are the ten year and five year note futures, though these have gained some popularity due to the real estate “bubble.”
The full-size US Bonds future contract contains $100,000 of bonds (par value) and is controlled with about $1300 of trading account margin money. Each full point move is equal to $1,000. The mini-contract is one-half the full-size contract and is better suited for the beginning trader. Trading is on the Chicago Board of Trade, a large and reputable commodity exchange. The liquidity is excellent and the volatility makes day trading popular for both advanced and novice traders alike. Because of this deep liquidity, "at the market" stop loss orders are usually triggered with a very little slippage.
A broker friend of mine swears by US Bond option strangle strategies. This is a popular technique selling (writing) both a put and call option outside a price range, looking for them to expire worthless. Option writers look to collect the option premiums from the option buyers. The option writers want the market to stay within a range of prices while the option buyers are speculating on a large move outside this range.
A one-day US Bond contract move of three full points is probably the maximum that you will see. ($3,000 move per contract) This is a rare event usually caused by a big surprise from the Fed, the release of a government financial report or an unforeseen event. Since US T-Bond futures become most volatile around scheduled major reports, it's often wise to take your profits beforehand. Many reversals occur around these times.
The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professional
Betty made a giant leap forward in her career when she landed a new position as Director of Marketing for a major division of a multi-billion dollar corporation. She would go from supervising one employee to managing 27 men and women. Her annual budget would increase dramatically. She would be expected to breathe new life into a lackluster marketing staff that had fallen behind the pace expected in the hard-driving corporation.She came to me for advice on how to make the most of the opportunity.Here’s the sense of what I told her.The biggest challenge will be to think in terms of managing a function – getting things done through
The full-size US Bonds future contract contains $100,000 of bonds (par value) and is controlled with about $1300 of trading account margin money. Each full point move is equal to $1,000. The mini-contract is one-half the full-size contract and is better suited for the beginning trader. Trading is on the Chicago Board of Trade, a large and reputable commodity exchange. The liquidity is excellent and the volatility makes day trading popular for both advanced and novice traders alike. Because of this deep liquidity, "at the market" stop loss orders are usually triggered with a very little slippage.
A broker friend of mine swears by US Bond option strangle strategies. This is a popular technique selling (writing) both a put and call option outside a price range, looking for them to expire worthless. Option writers look to collect the option premiums from the option buyers. The option writers want the market to stay within a range of prices while the option buyers are speculating on a large move outside this range.
A one-day US Bond contract move of three full points is probably the maximum that you will see. ($3,000 move per contract) This is a rare event usually caused by a big surprise from the Fed, the release of a government financial report or an unforeseen event. Since US T-Bond futures become most volatile around scheduled major reports, it's often wise to take your profits beforehand. Many reversals occur around these times.
The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professional
PowerPoint is, fundamentally, a tool for communication, and the heart of that communication is written words. As many charts, videos and illustrations a presentation might have, without text these add up to little more than a collection of disjointed elements pasted between slide transitions.Words remain the glue that ties information together. Because of this, good typography is as important -- if not more so -- than any visual element in a presenter's PowerPoint file. (This not to say good presentation is a substitute for weak content; after all, content is king.)"Typography" is a medium-independent term used to describe how type is presented. Thi
A broker friend of mine swears by US Bond option strangle strategies. This is a popular technique selling (writing) both a put and call option outside a price range, looking for them to expire worthless. Option writers look to collect the option premiums from the option buyers. The option writers want the market to stay within a range of prices while the option buyers are speculating on a large move outside this range.
A one-day US Bond contract move of three full points is probably the maximum that you will see. ($3,000 move per contract) This is a rare event usually caused by a big surprise from the Fed, the release of a government financial report or an unforeseen event. Since US T-Bond futures become most volatile around scheduled major reports, it's often wise to take your profits beforehand. Many reversals occur around these times.
The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professional
If you've researched your market, thought over the pros and cons of a home-based business, and decided to go ahead, it's time to put together a business plan. Developing a business plan forces you to take an objective and critical look at your business idea. Even more, the finished product is a tool that will help move your business toward success. A business plan should be neat, written clearly, and should include several things. The cover page should list the business name, address, mailing address, telephone number and the name(s) of the owner(s). Identify your primary goals and objectives. Next, give an accurate and concise descripti
A one-day US Bond contract move of three full points is probably the maximum that you will see. ($3,000 move per contract) This is a rare event usually caused by a big surprise from the Fed, the release of a government financial report or an unforeseen event. Since US T-Bond futures become most volatile around scheduled major reports, it's often wise to take your profits beforehand. Many reversals occur around these times.
The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professional
Question: What’s the easiest, cheapest and quickest way to have profitable, productive, and honest employees?Answer: Hire profitable, productive, honest people! Unfortunately, managers often hire underachievers or losers. Fortunately, pre-employment tests give managers a simple-to-use, quick, customizable way to hire the best.Only 1 Reason to Screen ApplicantsThe sole reason to assess applicants is to predict – or forecast – how an applicant will behave on-the-job BEFORE you hire the person. It proves crucial to prediction this before hiring an applicant, rather than finding out the expensive way after you put the person on your payroll.
The old trading adage, "first way, wrong way" means the first price reaction to a report is usually wrong. For example, a long awaited report comes out and the market immediately runs up. A few minutes later the professionals sell heavily into this rally and the market sells off sharply. This spells opportunity for sharp traders and potential losses to others.
US Treasury bond futures are presently traded electronically through the CBOT. This means you can get order fills almost instantaneously. The days of the screaming commodity pits may be limited.
Fed Fund futures trade the reverse of rates. For example, March Fed Funds futures at 95.00 would equate to traders expecting Fed fund rates to be 5% in March. (100%-95% = 5%)
The 30-year bond is one of the best indications of general interest rate direction. The trend of the fed fund rates is also key. Be sure to consider both US Bonds and Fed Funds trends in your general rates forecasts.
Treasury bonds tend to make double tops. Sell against double and triple tops when they present themselves. These long term tops don’t happen very often, so keep your eyes open. Triangles are also popular as well as head and shoulders formations. The bond market often trends well for long periods. Major multi-year government policies put these trends in motion. Fortunes can be made by accurately trading the bond market.
Here's how I look for opportunities in the U.S. Bond market: First I generate a TimeLine forecast that shows a strong move up or down. The TimeLine is based on time cycles and other preprogrammed patterns. I then determine if the move is expected to be choppy, trending, and for how long. This helps us focus on possible directional futures/option positions or writing options in a range, or even writing options with the trend.
Next I use automated option software to search for the best of 1600 strategies based on the expected market move. I compare these option to option combinations against futures to option
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