ARTICLE SYNOPSIS ...Options On Futures by John "Jay" Norris Here's how to identify the appropriate underlying conditions and timing for option strategies. The first two things industry insiders will tell you about options on futures is that more than 80% of them expire worthless, and that selling naked options on a monthly basis is frequently referred to as "picking up dimes in front of a steamroller." Put those together and you get losses more often than not if you buy them or you get paid a meager sum on a regular basis if you sell them, and hope you figure out a better way quickly before you get crushed by t...
ARTICLE SYNOPSIS ...Trading With The Directional Ratio by John "Jay" Norris Whether you trade long term, short term, or intermediate term, you need to know the direction of the trend. Here's a simple way to find out. If you are an active trader, or if you manage traders, you probably already know the importance of differentiating between a "trend trade" and a "countertrend trade." By using the highs and lows on the chart to determine overall direction, it should be a simple matter to determine a market's current stance for a particular time period, be it 15 candles or 60. However, once you add up the long-, int...
ARTICLE SYNOPSIS ...The Trading Plan by John "Jay" Norris We all know that creating a trading plan is the first step in trading. Find out how one futures trader creates a plan and follows it. Combining analytics and execution is not new for individuals or professional entities, and most companies separate the two. Many individuals lean toward one or the other, but traders must do both. Traders must be patient and disciplined and accept that they will not have a choice regarding when a trade scenario will unfold. Traders just need to be in the habit of being at their stations every trading day rested and relaxed...