Hubert Senters here.
Let’s take a look at the 30 year bond. Let’s just go on the bond really quick and go through them and compare them. I’ve got a question here that I want to answer. A lot of people are asking me ‘’if you can only trade one bond market which would it be?’’ That’s kind of a tough question.
I mean I’d probably trade the 30 year bond just because I like the way it moves around a little bit better. It’s a little bit more explosive in nature. It trends well so I like that. It’s more bang for my bucket. It’s $31.25. I like that one little bit better than I do the 10 year but I trade. I probably trade them about the same amount.
Good thing with the 10 year. Well, let’s walk through some of the stuff. Let me grab these symbols really quick. So this is the 10 year and you can see they look almost identical pattern wise. This one will not wiggle you out as quick I will say the 10 year will. So if you want to kind of dip your toe in the water and you’re not sure which one you’re going to like the two year, the five yea, the 10 year or the 30 year bond I would probably start with the 10. It’s got more volume.
It’s not as explosive when it trends. So it won’t breakaway as much but it also will wiggle you out as often. So you’re more apt to get in this and stay a while. And plus also the ticks are half. It’s like $15 instead of 30 bucks, $32, $31, whatever it is. So you don’t have to worry about that. What you can do is you can trade two contracts and be the same size as the full 30 year contract. So you could scale it and you could scale out. So that’s a positive there.
If you’re going to do that, if you were going to just trade, if you can only trade the 30 and you can only trade one lot then I’d say well maybe you trade the 15 or you trade the 10 year that we can trade to 15. So it depends on what you’re trying to do how much money you got in your account and how long you’re trying to hold these things. I like them both.
And a lot of times I’m trained both a 30 year simultaneously with the 10 year old. And last night in Technical Tuesday, we’re like ‘’hey, give this thing a shot right here on the short side of things.’’ Let me show you how that worked out for you. If you caught it on Technical Tuesday right there.
Now, it is a trade that normally goes against some of the rules that we have established but it was a weird case scenario where we jumped up above the cloud yesterday on that Italy news. So we were like ‘’let’s give this a shot with a tight stop-loss’’ and then if you woke up this morning you made a thousand dollars on that move. Then you could also have done the sneak attack which you could have got a long here with a stop, target one, target two, target three was almost hit but not quite.
And you’d still be in the trade if you were trailing that stop-loss. So those are my answers to which ones I like the best. I’ll probably pick the 30 but I just like the way it trades better than the 10 but there’s nothing wrong with the 10 either. It’s a fine instrument.
I am going to be doing a class tonight at 8PM EST. A little bond trading 101. So if you don’t know anything about bonds or if you don’t know how to properly pick a market for you to trade to match to your personality and style. I’m going to teach you a framework tonight at 8PM EST on how to do that. So that webinar is Wednesday May 30th at 8PM EST. I will see you on the webinar.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
