Lessons from the Pros

Nov 4, 2014 Issue

Featured Article OTA Income Trade

Your Belief System is your Trading and Investing Style

Moves in markets are a result of mass psychology. The stock markets have been on about a 6 year rally. We called the March 2009 bottom in our XLT program and have only had long positions in our ProActive Investor XLT program for years. Yet, the average person out there is not participating in this… Read More »

Stocks

Portfolio Protection

With the recent rise in volatility, there has been a lot of talk about a potential equity market crash. Many investors are nervous about “when,” not “if” this crash will occur and are looking for some protection for their stock portfolios. Many stocks pay dividends that the investors do not want to relinquish even during … Read More »

Forex

What does a “Good” FX trade look like?

Since returning to London after my extensive trip of the United States, I have mainly been focused on my own trading and conducting regular sessions in the Online Trading Academy live XLT room. Each XLT session lasts for about two hours in duration and involves live trading and analysis in real time market conditions… Read More »

Options

Hedging with Options Continued

In the last two articles, which you can read here and here, I’ve been discussing using options as a hedging, or risk-reducing device. First, I discussed using put options as a hedge against a stock position. Then last week, we looked at how an options market maker hedges his positions, which is sort of the… Read More »

Futures

Difference Between Physical and Cash Settled Futures

Traditionally, Commodity Futures contracts are settled by physical delivery upon expiration. Let’s say trader Joe was long a Futures contract (buyer of Futures), at the contract expiration he is obligated to receive delivery of the underlying Commodity and pay the agreed upon price the Futures contract was made for. In addition he will also be… Read More »

Real Estate

New QRM Mortgage Rules

This past Tuesday October 21st, the FDIC was the first of six financial regulators to release the final version of the long-awaited qualified residential mortgage rule (QRM) which stems from the 2010 banking reform bill, also known as the Dodd Frank Act and Consumer Protection Act of 2010. What does the QRM rule do… Read More »

Specialty Skills

Trading Rules are the Compass to your Success

No doubt if you’ve been trading for any amount of time then you’ve heard from a number of sources about the critical importance of having and following rules. Trading is a discipline that is fraught with many pitfalls; so we must identify and incorporate rules about preparing, analyzing, processing and executing in order to get … Read More »