Hubert Senters here.
Let’s talk about the importance of trading the right contract when you’re trading pretty much anything other than to straight out equities or stocks or something like equities and stocks the same things analyzing that.
Anyway, if you’re trading futures contracts or options. Very important for you to pick the right contract or month that you’re going to trade. So in this example, if you look at the 30 year bond. Will move my camera just a little bit. There you go. You can see the 30 year bond has at symbol that’s just my universal. That covers everything. I am going to zoom this out a little bit too so you can see all the different volume parameters.
So it says 318, 536 contracts traded on the at symbol. Okay. So that means I would want to trade the USM18 because it has 318,537, correct. I want to trade that one. Maybe. Maybe that’s the right choice. Maybe it’s not. I’m going to hold this trade that I’m in right now that you can see P&L wise over here I’m up like $1062 on it.
As long as I’m not going to hold that thing for longer than say two or three weeks. Yes. That’s the right contract to trade. Now, that can be a problem. If I want to hold this thing longer because in the second week in June, I’m not going to be able to trade that. It’s going to roll over into the September contract. And I love how brokers make that sound like it’s some kind of sexy technique that makes it magical for us traders. It’s not.
All that means is they’re going to knock you out of your current position and put a new position in on the September contract. Well, heads up. I would rather have my original position and hold it for longer is what I want to do, right. So if I want to hold this thing for longer than a couple of weeks then what I’m going to do is go down here to the USU18 contract and you can say you don’t have as much volume right now because there’s not as many people trying it but that’s okay.
If I’m looking to hold this thing past the second week in June I should be coming here in this market. I’m going to be doing a special webinar next week. I think it’s next Wednesday May 23rd at 8:00 PM EST on ‘’How I made $6,281.25 in 10 days Risking only $312.50.’’ This trade that I’m up a thousand dollars on I did it Tuesday. A thousand dollars on that one.
And then this one here I did this one two or three weeks ago on the 10 year and I’m about $2200 on this. Bonds are not hard to trade. They’re not complicated but you do need to know how to trade them. There are a few things that you need to know and there’s in my opinion good way to trade bonds and bad ways to trade bonds.
Anyway, I’m doing a webinar on how to do that Wednesday, May 23rd, 8:00 PM EST.I am going to HYPERLINK you to it. Heads up, every time I do this one there’s going to be several thousand people register. You may not be able to attend on time if you can’t. Here’s what I’ll do I’ll open up the room maybe 15 minutes ahead of time that will increase your odds of getting in there. Okay. Go to webinar. It only holds a thousand people at a time. So I bet we’ll end up having over 3,000 or 5,000 people register for this webinar so I’m trying to give you as much heads up as I can.
Good luck. Hope it helps and I’ll see you on the next video.
Hubert.
