PREDICTIONS EXPLAINED
Predictions disseminated by The Futures Wizard are made with either a “long” or “short” label. For predictions accompanying a “long” label The Wizard is predicting an increase in the underlying market. Conversely, a prediction accompanied with a “short” label indicates that The Wizard predicts the underlying market will decline in value.
In actual trading only the terms “buy” and “sell” are typically employed. For instance, if an initial “buy” order is placed in a given market the party placing that order benefits from an increase in price. If an initial “sell” order is placed then the party benefits from a decline in price.
Importantly, in leveraged markets, an initial position can only be “closed” by placing an opposite order in the underlying market. Therefore, the completion of a trade involving an initial “buy” order entails the execution of a corresponding “sell” order which then closes out the position. The same is true in the case of an initial sell order. A corresponding buy order will close out the position and complete the trade. In this instance the entry of the sell order does not entail a “short” position but merely closes out a previously placed “buy” order.
For purposes of The Futures Wizard’s predictions, the initial recommendations will be accompanied by either “Long” or “Short” labeling which indicates the direction The Wizard is predicting a market will move. The closing recommendation may entail the use of the actual market language of “buy” or “sell” but will also include the term “Closes” and or “Cover” to inform our reader that this transaction forms the basis for a prediction’s accuracy and estimated return per unit/contract.
When a published prediction is closed out (with either a “buy” or “sell” label) there will be an explanation of the trade including the initial prediction being closed and the approximate value of the prediction in both actual market points as well as percentage per unit/contract. Subject to the generous parameters that are detailed in The Futures Wizard’s disclaimer and guarantee, the closed transaction will finally be labeled as either “accurate” or “inaccurate.” Unless a trade results in a return of at least $50/contract The Futures Wizard will not take credit for any such trade as being accurate.
For all predictions that are “open” The Futures Wizard may periodically supply commentary on the prediction which may range from the dynamics of the market, The Futures Wizard’s insights and observations, as well as more detailed commentary particularly relevant to different memberships levels.
*Much of the content of this page is duplicative of the content contained on our “Determining Prediction Accuracy” page*