I don't have any setups today so let me clear up some confusion I am getting from my subscribers. It appears many of you think a tick is what you find on your dog. Nope a tick is the smallest increment a futures contract can move. Each tick is worth a different amount of money depending on the contract you trade. For example a tick on the eMini is worth $12.50 and a tick on the British Pound is worth $6.25. Yesterday I made 21 ticks profit, so if I was trading the Yen thats 21 * $12.5 = $262.50 for one contract. You simply multiply the number of contracts times the tick value. As you can see this adds up to real money pretty fast. I trade anywhere from one to five contracts depending on how I feel about the trade. Now if you are big swinging dick you may want to trade 10, 25, or 100 contracts. Not me my weenie is too teenie. This of course is going to totally hose my annual ROI so I think I'm just going to just calculate the two separately. Hopefully this clears things up. Thanks for reading the blog!
