Sunday, December 29, 2013

Profitable trading career

You need to use trailing stops to lock in your profits and not think about how much money you are making on the trade. Selling to soon is where fear comes in instead of watching your charts and waiting for the selling to stop. If you have set a proper stop loss and the trade is still above it let the trade pan out.
  These two emotion can ruin a new traders experience and wipe out their trading account. You need to keep these two emotions out of your trading as much as possible. Make sure to have a trading plan that will consistently make you money in the markets. You need to be careful when you see a large green candle going up fast so you decide to chase the trade. Chasing a trade or greed will work against you especially if you buy at the top of the green candle and the sellers now start to take their profits. As you see the next candle turn red you sell out of fear this is a trap most new traders get caught in. if you are basing your trading decisions on emotions you will quickly wipe out your trading capitol.
  Traders who get past trading out of emotions will learn to follow their trading plan and become profitable. Money management is most important to new traders especially in the forex markets. There are many candle spikes in the currency markets and to trade with poor money management will kill you in the end. You need to wait for the right set up before you enter your trade. Trends change all the time due to news and the world markets which goes on everyday. You need to understand your not missing anything so be patient and wit for your trade to develop. Do net trade out of boredom this is a mistake. Make sure to stick with your trading plan and work on good capitol management. Your winning trades will increase as long as you keep emotions out of your trading and have a solid plan to make trades. As you have profitable trades make sure to evaluate the trade and why it worked.

Forex trading psychology the mind game

 It's important to learn the mind game in trading markets especially the forex market.
You need this to become a  profitable trader. Its hard to become a profitable trader each day and you need to enjoy the progress you make. You need to understand technical analysis and working on your trading skills and the profits will come. You need to feel good when a trade goes your way and also if you get stopped out. If you get stopped out its because you followed your trading plan,which is a good thing. Having a positive mental attitude is most important in both winners and losers. You expect winning trades and having a positive mental state will help you achieve your goal.
  Being a disciplined trader and taking the trades when your trading plan indicates is what making money is all about. If you don't take the trade you should not beat yourself up over it but learn from the experience. Most new forex traders will have a negative trading experience when they first start trading. They will usually quit and never return the currency markets. The mental aspects of the defeat are long lasting and can be reversed with proper adjustments to you trading style. You need to learn the losses are part of every traders experience. Getting more stock or forex education will start you on a profitable trading business.  This is a opportunity not defeat to learn from your losses. Read and learn form other successful forex traders which will  give you the knowledge necessary for a positive trading outcome. Passing blame on someone else is in reality your own weakness. You are responsible for each trade.

Saturday, December 28, 2013

Stock and forex trading

 If the markets are channeling and the volume is low then step aside and work on your trading plan for the next day of trading.  Daytraders that try and force trades on bad trading days just end up losing more money and get frustrated. Sometimes the market gaps up or down when they open and never presents a good trade the rest of the day. The forex market can have news that totally disrupts any kind of trend and it just chops in a narrow range. When it does just forget about making any forex trades. Remember you can have terrible results if you try and trade a range bound market. It is better to look at the range the market is in and take notes to prepare yourself for the next time. Once you become familiar with the ranges maybe you can place a trade at the top or bottom of the range.
 You need to prepare for this kind of trading. The forex market will have many days when it is range bound and just chopping up and down. Good money management is crucial when you have bad trading days. This is where your trading plan should tell you how many bad trades you are allowed to make. High risk trades will empty your trading account and leave you frustrated. This is the time it is better to go exercise and get your mind off trading for that day.Beginning  traders that lose allot of money fail to realize that bad trading day can happen. Experienced traders stay out of trades on these days. Each day that you are going to make trades you need to analyze the markets and get yourself prepared for the day.  Make sure to read your trading plan and check for news releases. The forex market has news almost everyday.

How to find the entry and exit point for a stock trade

Knowing when to buy a stock is probable the most important thing you need to learn.  Traders need to recognize the buy and sell signals in order to be successful in their stock trading. Traders need to learn to find the low risk buying price points of a stock. You need to know where the support area for a stock and watch for the volume to come in from the buyers. If you are not able to pull the trigger and get in or out of a trade is a clear signal of problems either with the trader or the trading system.
  The next thing you need to do is know how much money you are going to risk on the trade. When you enter the stock trade you need to make sure you have an exit strategy and have set your stop loss. A successful trader will use percentages not money gained or loss to analyze the trade. You can figure this by what percentage you are willing to risk and how much profit you want to make on each trade. Somewhere between 2 and 5 percent is a good starting point.
  When you have all your parameters in place it is time to pull the trigger and make the trade. Once you have made the buy write it down in your trading plan to study later after you have excited the trade. Now that the trade is in place you need to look at where you want to hit the sell button. As a profitable trader you do not want to get greedy. Take a look at where you see resistance check your level II to see where the sellers are stacking up. If the trade is moving in a positive direction it is time to set up a trailing stop.

Saturday, December 21, 2013

Time frames to use when trading

What time frames to use when trading stocks or forex markets Traders need to take into account their risk and rewards is selecting a time frame. You need to know how to set your stops and take profit in the different time frames you are trading. If the trend is moving and the buyers are active and you place a trade then you need to set your stop outside of the time frame. This will make sure you are protecting your money. It is important to know where to place your stop and leave it.
  The same type of trading applies whether you are long or short the position. Especially if there is a strong trend in place. Make sure you have researched the entry and exits of the trade. If the trade seems more risky you can reduce the amount you are trading. If you are trading stocks you can look for a cheaper stock because they often trade in smaller time frames. Keep your stops close to the support and resistance levels when making a riskier trade.
  New traders need to learn this since they think it is nothing but easy money to be made. Traders need to keep losses to a minimum and let their winning trades run, using a trailing stop. New traders have a common problem of fear and greed. Their are in desperate need to make profitable trades all the time, so the new trader fails to understand that it is a must to control losses all the time when in a trade and make the most of things when the trade is in the money
Trading time frames

How to trade commodity futures

How to trade commodity futures options trading course ETF, Exchange Traded Fund
Traders know that Commodity ETFs started trading around five years ago. Traders can trade these just like you would a equities. Today these funds are traded on security exchanges, New York Stock Exchange, American Stock Exchange. The majority of investors and traders already stock trading accounts with brokers. Your comfort level is increased since you are already familiar with your trading charts and platform.  Commodities are raw materials that will make their way into the economy and will react much sooner than the stock market. Look at building materials. Copper and Lumber markets will move up after February since home construction and wood manufacturing and products like electrical wire, copper pipes, building materials for new home construction. This
should create some great trading opportunities in the future. Traders that are looking for a pure commodity play, then you should consider an ETF that invests in just the Futures markets.
The energy markets consists of Crude Oil, Gasoline, Heating Oil and Natural Gas. These exchange traded funds  can become just like a news stock when the commodity is in the news. When oil was heading to the upper $140 range, the reporters could not stop talking about oil. Many traders got into this rise in Oil prices by participating in oil ETF's.  A trader needs to apply good risk management of their trading capitol to survival, even with ETFs.
 ETF Futures Trading

Wednesday, December 18, 2013

Learning to trade

 This is why it is so important to keep trading records so you can learn from your trades this will increase your chances of making money on a trade. You want to build on our success and stay away from trades in which you have not followed your plan. Weekly points Number of points for the day or week Return on investment did you win or lose Percentage of  profit for the week
The amount of commissions There are numerous columns you can create to gain important information about you and your trading. The key is to document every item that affects you while trading. Once you have collected this data on a regular basis, you will start to see patterns in your trading that are either helpful or need your attention to correct. When you start a Trading Journal you will ask yourself how you ever got along without it in the past. This may seem like a lot of extra work but remember, your competition most likely is trading out of boredom thinking that the trades are going to give them something. You should know that whatever you take from the markets is from hard work over the other traders.

You can use the Fibonacci tool

Knowing  how to read the charts will make you money. Placing a short or long trade after a weak bounce in a currency pair is something you need to learn.
 When you have a good trend either up or down look for a re-tracement for a possible trade entry.
 It looks like EUR/USD bottomed out after hitting 1.3600 and it may be re-tracement time. Another short opportunity? The same is true if the trend is up you can make a long trade after a weak re-tracement. Remember you need to have a good trend in place.Study the forex chart below and you will see this same pattern develop when you have a established trend.
Forex traders need to recognize this chart technical setup that is breaking the original trend. The pair is in a downtrend on the four hour chart and many times if you are day trading you will see this on a 5 minute chart. and because it looks like it is retracing, You can use the Fibonacci tool to find potential resistance points. It looks like the price between 1.3750 to 1.3850 may be a great area for a possible trade, and depending on price action and volume. You could make a trade in this area on the chart. It looks like traders could push up the market to that area as stochastics show the pair is just coming out of an oversold environment.  The forex news from the U.S. is that 9.7% unemployment rate may be attributed to those who were looking for jobs have stopped looking, thus decreasing the labor pool. Any economic news can effect the forex market and change the trend. If you are day trading make sure to check the trend on the 15 or 30 minute charts.
  The U.S. jobs picture looks confusing at the moment, but potentially worse after the previous month reports. If it doesn't start picking up you can look for traders behavior to continue to pick up, and that may pose well for the USD.

Monday, December 16, 2013

How to use Moving Averages

How to use Moving Averages in stock and forex trading
Moving Averages can be used as a trend indicator especially in the forex market. Some traders that know how to read charts will use the moving average to confirm support and resistance levels. This can include using moving average crosses for buy and sell points. To start out you can set your MA's at wma 5 and wma 20 on your charts.
  These are widely used moving averages on both the stock trading and forex charts. Traders who use a Moving Averages as a trend filter will buy when the trend is moving up or down. When watching this chart indicator you can look for the price action to consolidate at the top or bottom of the MA. You need to remember that the MA's are lagging on the chart. This means they don't move until the price does or when a candle closes. This also depends on what time frame your charts are set at.
Many forex traders will use the 200 day moving average as a support and resistance area. One thing to remember if the price is near the 200 MA you should wait for confirmation before you decide to hit the buy or sell button. Waiting for the trend direction off the 200 MA will increase your chances of making a profit on the trade.

Positive trading mental attitude

 Having a positive trading mental attitude will create more profitable trades. Research your trades before you make them  is all part of the process. You need to have a clear vision of what your are trading and keep as much emotion out of the situation as possible. Generally the markets are against you from the start. The more research you can do will help even out the risk of loss and turn it into profits. The fact that you are trading real money always can interfere with the trades and that is problem that some traders must deal with. In my experience in trading Forex and helping new traders, that the greatest cause of losses is not having self-discipline. Traders need self-discipline to follow your trade plan; to be patient  to take losses.and profits and  to practice good money management.
  No matter what markets you decide to trade you need to learn to trade consistently making more better trades than bad, and the results will be more money in your trading account. The time involved to do this is really up to you but all successful traders never stop learning and adjust their trading to meet the current situations.

Saturday, December 14, 2013

Trading futures or option trading

Trading futures or option trading can wear you down emotionally you need to stay focused
  There is definitely risk involved when trading futures. Futures and option traders need to be able to handle the risk money wise and emotionally. This type of trading can cost you big time if you are not prepared for the trade. When you begin your trading day you need to be focused and prepared. Traders need to be ready to make trading decisions whether they are good or bad for your trading account. Trading out of fear of losing is not good you must have a positive attitude when it come to any type of trading. This is where a solid trading plan comes into play.  You could easily get caught in the wild swings in the market and place losing trades.  Trades without focus and a trading plan will fail. This will lead to more emotional trading which will cost you much more in the long run. News events can happen which will effect your trade so you need to be prepared for this to happen. You need to stay focused and accept that this will happen and can cost you some money.

Risk management

How to read charts in stock and forex trading.  Learning to read tick,or candle stick charts and get it right is something every trader needs to do. Chart patterns change everyday in the movement of the stock and forex markets.Figuring out support and resistance levels, finding buy and sell areas, and determining strength or weakness is what you need to learn. Knowing  if the stock in is a trend and what the volume is are very important to your trading decisions.  To have an edge from reading charts, the trader has to be able to understand chart patterns as they are forming, and you then have to make sure the chart pattern has formed. In the forex market especially over longer time frames the patterns will repeat. The percentages are in your favor if you understand these different patterns on the charts. It is at those chart levels that the imbalance of order show up between the buyers and sellers of different pairs in the FX or the same is true if you are trading stocks .  Many support and resistance areas are known to all the big brokers and banks that trade the forex markets

Wednesday, December 11, 2013

Elliott Wave Theory

This is one of the fascinating things about Elliott Wave Theory: It seems to apply to patterns found not only in markets, but in the rise and fall of nations, and even entire civilizations  as well as the ebb and flow of many other things in the natural world . Traders have studied and applied it for many years, and continue to be in awe of its frequently uncanny ability to anticipate the future. It is important to note that Elliott Wave Theory was derived from back-testing. Back in the 1930s, R.N. Elliott studied decades of charts at various time frames, and discovered that there were certain patterns which repeated across all time frames. These patterns were of a fractal nature; in other words, the patterns on the one-minute chart join together to make up identical larger patterns on the hourly charts, which in turn make up identical larger patterns on the daily charts  and so on. He developed Elliott Wave Theory as an attempt to quantify and explain these patterns.

Electronic stock trading

The biggest mistake  with new traders is that they are looking for the “career trade;” the big home run. It’s a great fantasy, but it’s not a realistic strategy. The successful traders over time aren’t necessarily scoring big winners—they are successful because they are managing their losses. technical analysis is one way to determine where I might enter a trade and what I’d like to define as my risk. I buy based on my defined support points, sell based on my defined resistance points, and place my stop-loss points below or above those respective levels. Let’s explore the concept of exiting a trade a bit further, beyond just using support and resistance as tools to pinpoint specific levels. If your trade doesn’t look like it will make its profit target, do you just wait it out and hope it does?
Stock trading online

Price Zones

 It is important to try and know where market prices are going to turn in advance and also where prices are going to go with a very high degree of accuracy is knowing exactly what institution bank demand and supply looks like on a trading chart in any market stock, futures, or forex. Understand that supply and demand levels created long ago can serve to be very strong levels. The reason for the strong consistent success of these supply and demand levels is traders need to focused only on institution and bank demand and supply. In other words, the levels that you see on the grid below are levels where banks and institutions are buying and selling. Having this information as a day trader, swing trader, and longer term investor is key.  The first order of business is to protect yourself using proper stop losses and don't get greedy.  Effective self-discipline is about harnessing and managing your thoughts and emotions in order to remain focused on what matters most in the trade.
Price Zones

Tuesday, December 10, 2013

DRIPS Drip Dividend Reinvestment

  New investors that don't have allot of cash can invest in drips. With a DRIP traders have the ability to accumulate shares more cheaply than buying the stock outside the DRIP. Discounts also provide a boost to the stock’s yield. Dividend reinvestment plans are known as Drip’s. Investors can purchase shares of companies like McDonalds’ Nike or General Electric fifty dollars at a time. In most cases, companies charge no commissions for purchasing stocks through their Drips, and those that do charge only a nominal fee. Sometimes investors can send optional cash payments (OCPs), in some cases for as little as ten dollars.
 A number of Drips permit investors to buy stock at discounts to the current market prices. Discounts are usually three to five percent but may be as high as ten percent. Investors have the right to buy attractive blue chip stocks when they
otherwise might not be able to afford them.  Discounts apply only to shares purchased with reinvested dividends, some apply the discount to purchases made with optional cash payments. The main benefit of buying stocks directly from the company either through a Direct Stock Purchase plan or a DRIP program is that the investor doesn't always have to pay a commission when making a purchase as you do with most brokers.
Dividend Reinvestment Plans

Dow futures trading

Learning to trade the futures markets is something a full time trader needs to learn. Futures markets are a set of markets that includes all the asset classes that can be traded, this can make Futures a very attractive set of markets to get to know and trade properly. Dow futures and the other futures markets is information on Futures that can help get you and your trading on the right side win loss ration and increase your trading account. Most stocks move with the S&P. Knowing how to properly analyze your trading and the S&P Futures offers the short and long-term stock trader a significant advantage and less risk.
 No $25,000 minimum requirement like you have in Equities when you trade futures. Plenty of leverage, low margin requirements, cheap commissions are charges by most futures brokers. Most major Futures markets and brokers have close to round the clock electronic trading especially in different parts of the world. Low risk if you use protective stop orders strong liquidity, huge volume can be seen in global futures markets. There is a small risk with big gaps with index and Dow futures. Commodity Futures are often a leading indicator during significant turns in the market cycle. They can help give the future trader a strong edge when attaining a low risk  high reward entry into the future market.
Futures options trading course

Sunday, December 8, 2013

US dollar index

The U.S.. dollar index is an index you should follow especially if you trade the forex and currency markets. Dollar index is a index that follows other currencies and measures the strength of the dollar compared to other currencies. It is a weighted geometric mean of the dollar's value compared only with. If you are trading the forex market you should also be watching the dollar index. Many times the dollar index will move in the opposite direction of the  EUR/USD and the GBP/USD. By watching the chart of the dollar index on a one minute chart, and have your forex chart set at five minutes many time the dollar index will show a move. This happens many times especially if there is a spike in the index. The EUR and GBP will move in the opposite direction.
Trade the dollar index

A Major Key to Successful Trading.

 Profitable traders will be training as hard on their mental fitness as they do on preparing stock or forex trading signals.You need to find a trading system that fits your personality back test the system, have the capitol to trade the system, and then trust in it. Knowing how to read your charts and watching the trend should be part of your system. You should be comfortable with perceiving yourself as a winning trader and then committing to a trading system that reflects this. You are more likely to follow your trading signals then some trader you do not know.
Stock and Forex Losses

Friday, December 6, 2013

Best strategy for trading

Your trading plan should say at what point you bring your original protective stop to breakeven once price moves favorably for you. Allow the trade to move far enough in your favor so as not to get stopped out prematurely especially if you trade the Forex markets. Traders should try and allow the trade to cover the price of commissions by adding one price tick above your breakeven price. A smart trader will follow their trading plan and never use emotions such as hoping, praying and or wishing. Once the trade shows signs of failure, the trader will allow the market to come back to their protective stop and not just exit because they want to save a few ticks on the loss. Too many traders get in long after their setups and they try to use the original size risk. This simply does not allow for market volatility and they are all too often stopped out only to watch the market resume in the direction of their stopped out trade.
Best strategy for trading

Depressed Stocks

To make money in the stock market value investing will make you profits.
 Finding depressed stocks or value investing in the stock market is something you need to learn. If you want to make money in the stock market you need to find bargain stocks that other investors are missing.  When stock traders are starting to learn to invest in stocks take a look for stocks that are undervalued. You need to look and anticipate major changes that will make a stock rise in the future. Look for growth stocks that have had a few bad quarters due to inflation or other factors that they had no control over. This is called contrarian investing. You need to do some research and it might take some time but in the end you will make money from the investment. You should look for stocks that have had disaster strike and share holders are selling especially in companies that have a good long term track record.  Look for out of favor securities and hold them until good news brings up the price and sell them for a profit. One of the indicators to look for in a depressed stock is insider buying.
Stock quotes

Thursday, December 5, 2013

Binary options

Binary options are a very simple idea, they are an easily understandable way to profit from your trading, but as with all trading you should make sure you understand options. A binary option is in or out of the money because of what the underlying asset does, so you need to know about the underlying asset and what trend it is likely to make.
The price you pay for a binary option reflects the market’s idea of your chance of winning. The less you pay for the option relative to the reward, the less chance the market thinks you have.

Wednesday, December 4, 2013

Daytrading stock picks

  Profitable stock trading requires having a excellent knowledge of the risk and reward ratio before taking a stock trade. The internet has made stock market trading possible for millions of people, and those who are not that excited on investing in stocks the normal way by calling the broker. They can practice safe investing on their computers. The beginner investor who trades online in stock market does not need to call his broker to make trades. Stock market traders can apply online this has made the process easier and saves money.  it's also advantages to decide the level of risk you're willing to accept safe investing most companies like Ameritrade,Scott trade and E*TRADE will have qualified advisers to help you start stock trading.
Beginner investing safe investing

Cyber warfare stocks

According to the New York Times, which is a media sponsor of the Aspen conference, Gen. Alexander is wholly over whelmed by our current operational readiness for such endeavors: General Alexander said that what concerned him about the increase in foreign cyber attacks on the United States was that a growing number were aimed at "critical infrastructure," and that the United States remained unprepared to ward off a major attack. On a scale of 1 to 10, he said,  American preparedness for a large scale cyber attack is "around a three." He urged passage of legislation, which may come to a vote in the next week, that would give the government new powers to defend private computer networks in the United States. The legislation has prompted a struggle as American companies try to avoid costly regulation on their networks, and some civil liberties groups express concern about the effect on privacy.
Cyber warfare stocks

Monday, December 2, 2013

Lower risk stock trading

Before  a traders capital is at gone, you should learn to be  more likely to identify risks and properly evaluate the trades. Once you are in the trade, it is difficult to admit when you are wrong and all too often new traders will loosen or remove stops rather than acknowledge when they are wrong. By identifying the risk in the trade prior to entry, you are more likely to remain calm and allow your stop to do its job since you know the worst case scenario before you are in. Whether your position or thoughts on a stock is bullish, bearish, or neutral there usually a strategy that might make the stock a trade. You can go long or short or look at the options on the stock.  Most all the brokers will have different platforms to research the kind of trade you are looking to make.
Lower risk trading

Thursday, November 28, 2013

A Major Key to Successful Trading.

 Most successful emini day trading system stocks or forex. If you have 60 percent winning trades, you will win in the long run. Part of overall winning is taking losses along the way in your stock or forex trades. In any trading system, you will experience losing trades as well as winning trades. If you think about it, when traders have winning trades you get motivated and you look for reasons to find the next trade. Traders move on forward from trade to trade sticking with their trading plan. The same is true when losing trades appear we become fearful of the next trade and look for reasons to shy away from following our trading system.
 This leads to the destruction of virtually all failing traders they get away what made them money. This leads to straying from your tested trading system to your being emotionally out of control. Traders must develop the mindset that you are a winning trader whether you are experiencing a run of losing trades or winning trades. A winning trader allows them to move through losing trades so they can be there for the winning streaks. New and novas traders do nothing about their mental trading fitness.
Stock and Forex Losses

Best strategy for trading the Stock Market

A consistently profitable trader will find a strategy that offers them a higher than average probability of success. They read articles like this one and formulate a winning strategy. You need solid trading plan. The consistently profitable trader will  use this for every trade and not deviate from it. Many new traders fall into the habit of making emotional trades that is not part of their trading plan and make money the first time. This leads to a false sense of security and making risk trades.
A CPT will never enter into a trade unless they know exactly how they will manage the trade from the entry price, protective stop, breakeven, exit strategy, this is how profitable traders earn a living. Managing your trade this way will take some of the emotion out of your trading. This allows you to become more profitable with your trading.
Best strategy for trading

Monday, November 25, 2013

How to trade commodities markets

One way to climb above the chaos is through abstraction, and in a good way technical analysis is a methodology that abstracts, for it identifies varying price levels deemed important. Most technical analysis was initially with  patterns like heads and shoulders, cups and handles, candle sticks. Eventually, with the advent of computers and number crunching, classical technical analysis turned into data analysis with relative strength indicators, Bollinger bands, and varying types of oscillators. Measuring price and volume action at critical price zones is what trending technical analysis is all about.  It's a way to measure supply and demand.  One form of  a mistake would be having too many indicators  or oscillators on your chart  this topic has been covered in several articles from the trading type sites.  Another form of mistake is looking at every turn or support resistance level that has been formed in the past and still consider it as a valid level for our future trades.
Commodities Markets

Sunday, November 24, 2013

CME Chicago mercantile exchange

The Chicago Mercantile Group Exchange  CMEGroup  constantly monitors this added risk due to market volatility across all Futures markets that trade on their exchange. With their acquisitions of the Chicago Board of Trade, New York Mercantile and Comex exchanges, they now have better than 85% of the world commodity Futures traded on their electronic Globex platform, or an open outcry trading pit, at one of the three exchanges. For over 100 years, the CME has cleared trades and been a counterparty to every transaction on the exchange every day for this period. For the record, in 2010, the CMEGroup cleared 2.4 billion contracts. Being a counterparty means that for every transaction made, the exchange will guarantee each buy or sell side transaction. If, for some reason, the party on the other side of your trade defaults on their obligation to honor their losses, the CMEGroup will make that transaction good by paying the loss to the winning party of the transaction. During this 100 plus year period, there has never been a failure of a clearing firm member resulting in losses to a customer account.
Chicago mercantile exchange

Saturday, November 23, 2013

How to trade indicators in trading charts

Many oscillators can be used in a strong trending market with some adjustments. Traders need the correct training to know how to adapt these indicators and also when to do the adjustment. The big thing to remember as a trader is that price is everything. Knowing how and when to use the right tool at the right time to support your trading decision is critical in saving your trading capitol.  In every trade, you should know a minimum of three things before placing the trade. You should know your entry, your sell point and your stop loss. This knowledge removes emotions such as fear and greed from my trading and allows you to focus on price action. It also gives you direction for managing the trade. Remember pigs get slaughtered so don't get greedy
Trade indicators

Friday, November 22, 2013

Trading the CCI indicator

 CCI  simply because it's popular and has a high degree of being accurate, the concepts in this piece are equally applicable for any of the major indicators and oscillators. For those new to trading, reading this information can provide a good basis and understanding of CCI and how indicators and oscillators work best with price action on your charts.
Use CCI on the bottom of your trading charts to measure the variation of a stocks, forex, futures price from its statistical mean. High CCI above the 0 line show that prices are unusually high compared to average prices. Low CCI values show that prices are unusually low compared to average prices. The CCI is an oscillator that typically fluctuates between –100 and +100.Forex pair prices are thought to be overbought when CCI moves up to the + 100 territory. Prices are considered oversold when CCI moves down into the – 100 territory.
The CCI shows overbought and oversold levels of –100 and +100. CCI extremes correspond to turns in price as seen on the candlestick chart. The change in price in any of the markets that you are trading is where  traders decide if they want to buy and sell.
Stock and Forex CCI Trading

New York's World Financial Center

New York's World Financial Center, headquarters to several blue-chip companies including American Express (NYSE:AXP), was built on World Trade Center landfill by recently deceased Canadian real estate developer Paul Reichmann. It arrived on the scene in 1987, just in time for that year's crash. (Mr. Reichmann's Olympia & York also had a major hand in lavish Thatcher-era London banking hub Canary Wharf, which similarly proved to be a canary in the coal mine for coming financial calamity.)
The New York Times (NYSE:NYT) dropped the ball when abandoning its Times Square headquarters, the newspaper's home since 1904, for a grandiose 52-story tower nearby.It opened on November 19 2007, and shares touched the lowest level in their history within weeks. Amid multiple layoffs as media increasingly migrated online, the palatial surroundings quickly became a white elephant for the Old Gray Lady. It has lately looked to lease out a full floor at the Eighth Avenue address.

Thursday, November 21, 2013

WTI crude prices

Annually, the EIA believes gasoline prices will average $3.39 per gallon in 2014; slightly less than the expected $3.50 average in 2013. US gasoline consumption is also expected to fall 0.4% next year, as more and more consumers switch to more fuel efficient vehicles.
WTI Vs. Brent Crude Spread Expected to Shrink
According to the November report, the EIA expects the spread between the spot price of West Texas Intermediate (WTI) crude oil to Brent to continue shrinking in 2014. For the fourth quarter, the EIA expects WTI crude oil prices to average $97 per barrel; analysts also expect the discount of WTI crude to Brent to be $10 per barrel during the last quarter.
In 2014, WTI crude prices are forecasted to average $95 per barrel. The WTI discount to Brent is expected to be only $8 per barrel next year. North Sea Brent Crude is forecasted to decline gradually, averaging $106 per barrel in December and $103 per barrel in 2014.


There's no such thing as a perfect market structure, and there are plenty of problems and unresolved questions about the way stock trading functions today. We've got dark pools and high-frequency trading, which are in the midst of reshaping the market environment in ways we don't yet understand. "Connectivity issues" that spark trading shutdowns have become frequent enough to spark jokes in the Twitterverse about rogue squirrels nibbling away on cables. Then there are big snafus, such as the one that wreaked havoc during Twitter's (NYSE:TWTR) IPO debut.

Wednesday, November 20, 2013

Verizon (NYSE:VZ),

Verizon (NYSE:VZ), the US carrier guaranteed to be a distant fourth in rolling out smartphone updates to users, shocked the Android community with a surprisingly prompt rollout of Android 4.4 KitKat to its Moto X users not even three weeks since Google (NASDAQ:GOOG) unveiled the latest version alongside the Nexus 5. The over-the-air upgrade is so speedy, in fact, that Moto X users are officially running KitKat before Nexus 4 users, who were promised to be first in the upgrade line when they purchased their Google devices last year. Heck, Verizon even beat AT&T (NYSE:T), Sprint (NYSE:S), and T-Mobile (NYSE:TMUS) the other major US carriers supporting the Moto X -- to the update punch.

Tuesday, November 19, 2013

How to Trade Gold

At first, the run up in gold prices was a quiet movement, but as the consistency held, the buzz around the metal began to build. From 2005 to 2010, gold gained an average of twenty one percent each year, hitting an all time high of $1,923.7 per ounce in September of 2011. At that time, the bullish sentiment for the commodity was unmatched in the gold trading world, it seemed like cracking the $2,000 barrier was simply a matter of when, not if. As the Fed and Bernanke continued to toy with quantitative easing programs and print more money, the general consensus was that gold would continue to soar, but that did not happen. The asset pulled back from its 2011 highs to close out that year, and was able to post moderate gains for 2012. But 2013 has been nothing but a disappointment for the asset, as it is down nearly twenty four percent. The fed will continue to prop up the markets if a crash comes when the fed stops inflating the markets gold will most likely sore.
How to Trade Gold

Winter Wonderlab

Google wants to stand out from the competition during the upcoming holiday season, and in the real world, not just the virtual one. Even Intel (NASDAQ:INTC) has gotten the real-world bug and is opening temporary or "pop-up" stores for the season, including an exposed brick-walled outpost in NoLita, a hipster enclave of New York City.
Google has just announced it will open "Winter Wonderlab" showrooms in six cities across the US. They are designed as "play zones" stocked with Google-branded toys like Nexus 7 phones and Chromebook tablets. (Fans are already griping about the apparent omission of a Google Glass display.)These are not cash-and-carry stores, though products can be ordered there for home delivery. Each will feature a giant walk-in snow globe that can be used as a setting for slow-motion videos to take home.
The Google barge does not seem destined to be a Winter Wonderlab, at least not this winter. However, the mystery barge may well be more of the same concept on a grander and more ambitious scale.

Monday, November 18, 2013

It seems the stock market goes up every day

It seems the stock market goes up every day, and the more it rallies, the more we hear about the prospects of a bubble. Bulls will tell you we aren't in a bubble because valuations remain modest relative to history, especially when compared to previous stock market bubbles. Bears will tell you we are in a bubble because assets are being artificially inflated by the Fed's quantitative easing and zero-percent interest rate (ZIRP) policy. I would say that asking whether we are in a bubble is asking the wrong question. The real question equity investors should be asking is what this historic rally portends for future returns.

Candle stick charts

 Look at the long wicks that are present on the candles sticks. This is a key sign of hesitation in the market, with a battle of sellers and buyers.  Traditional technical analysis of traders would use these candle patterns for signals to go long or short, buying at the start of the new emerging trend, and in many cases these work out and become a winning trade. Traders will look for reversal patterns to place a trade.
  Most traders need to use a stop market order as a stop loss because it is used to predefine the maximum loss one is willing to take on any given trade. This is why candle stick chart patterns are good to use. For a long position a "sell stop market" would be placed below the market, and for a short sale, a "buy-to-cover stop market" would go above the market. Once the trade is in place, stops can then be used in the trade to manage profits. Especially when trading reversal patterns from candles.
Stock and Forex candle Stick Patterns

Saturday, November 16, 2013

Buying and selling areas are critical

 You need to set daily profit targets. When you hit these targets, you should think about your next trade or stop for the day. Traders need to stop when they are winning and stop when they lose. You should give yourself a trading plan that includes this. Traders should be charting, analyzing, processing or executing while trading which takes discipline. Stock traders must become aware of what is between you and keeping commitments with consistent trading. In learning the mental game and keep emotions out of your trading.
 Traders need to recognize where buyers and sellers are located on your candle stick charts, most violent moves and then retracing those moves back to their point of origin. Look for important shifts in candle clusters, or pivot highs or lows, across all time frames, then zero in tactically into those buy, and sell areas depending on your trading plan. other indicators or charts with technical analysis can be added as confirmation tools. The chart indicates where buyers and sellers are evenly matched which can be a buy or sell area.
Daily profit targets

Forex trading Reviews

When trading the forex markets you need to learn to deal with losing trades. This is where using a stop loss will keep your losses small. You need to let your winning trades run and use a trailing stop. Check your charts for support and resistance areas to set your stops. Not every trade can be a winner so you need to except the fact that you will naturally have some losers.   If you are new to trading the currency markets you should not trade around news release times. The markets can be very volatile with wide swings in the pairs price. You will make money by staying with the trend and stay out of trades in a range bound or choppy market.  Once the forex pairs are in a good uptrend or downtrend you can watch for a small pull back and then place your trades with the trend.
Forex trading Reviews

Friday, November 15, 2013

credit ratings downgraded

Goldman (GS), Morgan Stanley (MS0, JPMorgan (JPM), and Bank of NY Mellon (BK) all had their credit ratings downgraded one notch yesterday evening by Moody's. Goldman was lowered to Baa1 (BBB+ S&P equiv), Morgan to Baa2 (BBB equiv), JPM to A3 (A- equiv), and BofNYM to A1 (A+ equiv). This affected all senior and subordinate debt.

Thursday, November 14, 2013

Global X

Global X launched a new ETF last week that will focus on smaller countries that fall into the emerging and frontier markets. In essence, looking for the next group of BRIC countries.
The Global X Next Emerging & Frontier ETF (NYSEARCA:EMFM) is a basket of 200 stocks from 34 different developing countries. What makes EMFM unique is that it will not invest in the BRIC countries along with South Korea and Taiwan. By taking the approach it will have more assets to invest in countries that are often overlooked in portfolio construction.
Asia currently represents 38% of the portfolio, followed by Latin America at 23%, Eastern Europe at 19%, Africa at 14%, and the Middle East represents 6%. The financial and material sectors make up the largest portion of the portfolio with a total allocation of 37%.

Breakout Trading Stock Market Volume

Volume is important when trading any of the different markets. Stock prices can only move up when buyers become aggressive and raise bids to chase diminishing supply. Prices drop when traders or sellers are desperate to get sell a stock and drop their prices to bring in scarce buyers. Often in a breakout, the price moves above when a prior buying area that has already been weakened. When investors and traders see that new high being made, they jump on board and the volume spikes. This can be a problem sometimes.
Breakout Trading

Beating Analyst Expectations

Beating Analyst Expectations: Earnings Results
Chesapeake Energy Corporation (NYSE:CHK): This independent oil and gas firm reported net income of $156 million or $0.24 per share. Revenues came in at $4.87 billion.
Mixed Results
Devon Energy Corporation (NYSE:DVN): This oil and gas company reported earnings of $1.29 per share, slightly above analyst estimates of $1.20. Revenues were reported at $2.72 billion, just below expectations of $2.76 billion.
Apache Corp (NYSE:APA): This famed oil and gas exploration firm reported EPS of $2.32, beating analyst estimates by $0.17. Revenues came in at $1.02 billion, well below the consensus estimate of $4.32 billion.
NuStar Energy (NYSE:NS): This MLP topped analyst estimates by $0.01, with EPS coming in at $0.28. Revenues missed the mark, coming in at $780.01 million versus the $944.85 million estimate.

Wednesday, November 13, 2013


YouTube has integrated Google+

YouTube has integrated Google+ into its commenting system so that a user must sign in with their Google account in order to comment on a video. The move was put into place to weed out the anonymous venom that billows from beneath the main attraction, but many users see it as both a further deterioration of privacy and a blatant attempt to force everyone onto Google's social network.
It also doesn't help that it's one of the most poorly implemented features the company has made in recent memory.
The backlash began soon after the new comment section's debut. Folks decried the inability to weigh in on videos anonymously or even have a separate (and completely innocuous) online persona than their actual name and identity. Many users relied on anonymous screen names not for the purpose of posting untraceable angry diatribes but to have some semblance of privacy from Google's marketing and data collection.

Covered calls are safer to trade

Trading software for calls and put options software applications with paper trading capabilities, help you identify the trades that best satisfy your predefined criteria. Trading publications whether delivered to you online or via standard postal delivery, Many are niche-oriented toward specific premium strategies, and some are free. Discussion boards interaction with a local or global options trading community is a great way to exchange ideas, discuss trading tactics, and gain new perspectives. 
Profits for futures contracts

Tuesday, November 12, 2013

PowerShares Global Short Term High Yield Bond Portfolio

One ETF to consider is the PowerShares Global Short Term High Yield Bond Portfolio (NYSEARCA:PGHY). The ETF is based on the DB Global Short Maturity High Yield Bond Index. The Index will generally invest at least 80% of its total assets in US and foreign short-term, non-investment grade bonds included in the Index, all of which are denominated in US dollars. The ETF does not include all of the securities that are listed in the Index, but uses a sampling method in seeking to achieve its investment objective. The ETF, as well as the Index, rebalances quarterly and reweights annually.
As of November 1, 2013, the 30-day SEC yield is 3.61%. This yield is based on its payments over the last 30 days. The distribution yield is 4.78%. This yield is based on interest return plus any other distribution. The effective duration of PGHY is 1.39 years. Duration is the number of years that is required for an investor to receive the value of all future payments, both interest and principal, from a bond. The length of time it takes to receive payments will reflect in a bond's sensitivity to bond prices, because the shorter the duration is, the less sensitive the bond will be to changes in interest rates.

NFIB Small Business Optimism

this month's NFIB Small Business Optimism report was the fact that only 3% of small businesses cited inflation as their number one problem. This is the lowest reading since December 2010. As long as the Fed remains in easing mode, worries over the potential inflationary impact of its policies are understandable. However, as we have seen in primary and secondary measures, inflation remains contained.

How to trade with Bollinger bands

Stocks can remain overbought or oversold for a different periods time in a strong trend. What traders need to look for are clues that there is a change in trend and price action at a previously identified support or resistance point. Bollinger Bands can help determine these points. A successful trader must be reality based, not driven by illusion. The reality is that markets are nothing more than pure supply and demand at work and learning charting methods can help in making money when trading.
Bollinger Squeeze

Monday, November 11, 2013

Amazon Web Services

Amazon Web Services is the most disruptive threat ever faced by the traditional set of enterprise vendors. Why? AWS allows companies to build and deploy applications with virtually limitless scalability quickly. It's secure, saves a ton of money in data center expenses, provides strong data recovery options and removes the need to install new hardware, set up and configure new software and deal with the typical on premise IT challenges. To make things even more daunting, Amazon is happy with high single digit profit margins in this business, which is dramatically lower than the traditional enterprise margins (30-60%). They are taking the same tact as they have with all their business lines. For those closely following this sector, this isn't new news.

What are Annuities

Do you want guaranteed income for life more then just your retirement. That's why insurance companies are ramping up their marketing of annuities. With such a wide variety of trading tools and methodologies all around the world today, is it any wonder that so many people find it highly confusing when deciding which to use. But before you buy in, you should know what you're getting into. Annuities are not that easy to understand and they may not be right for every retirement situation. Here are some ideas to understand and what to learn.  Annuities are financial contracts issued by a life insurance company that offer tax deferred savings and a choice of payout options  income for life, income for a certain time period or a lump sum  to meet your retirement needs.
Annuities What are Annuities

Social networking stocks TWTR

Social networking
Twitter (TWTR) - headlines said it "Soared" but we all know it failed the "art of the first day". It opened at $45.10 and closed at $44.90 after hitting $50.. Then it drifted lower on Friday.. I don't have much interest here as it could see $32-$35 before it psychologically looks like a better entry. $40.68 is Friday's pivot
LinkedIn (LNKD)- finally found a bit of support after getting beat up post earnings. Some caught a nice Red Dog reversal around $210-- $208.35 is your spot to trade against. If it continues above $216.45 there is a lot of resistance $221.50-$225.
Facebook (FB) - lots can see a head and shoulders top forming here.. sometimes necklines do hold.. So If you are going to play this short, make sure there is a high volume break and close below $46.50-$47. The stock did exceed all our 2013 expectations and does seem a bit vulnerable here.
Yelp (YELP) -stock got hit hard from $70++ down to below $60 and then reversed on Friday thru the $61.40 pivot. IF the bears want to stay in control here.. they won't let the bears take back $66

Saturday, November 9, 2013

The aluminum industry

The aluminum industry is highly cyclical, with prices subject to worldwide supply and demand so traders need to stay ahead of the curve. In the first quarter of fiscal 2012, Alcoa, Inc. (AA), the world leader in the production of primary aluminum, reported better than expected results on the back of growth in the aerospace and automobile sectors.
The company anticipates that global aluminum demand will go up by seven percent this year. It also expects that burgeoning demand for aluminum along with market related production cutbacks will lead to a global aluminum industry deficit of 600,000 metric tons in 2012. Region , in 2012, China and India are expected to lead with double digit growth. Russia and Brazil are projected to have four to five percent increases in aluminum consumption rates.  Alcoa believes that the long term prospects for aluminum remain bright and envisions that global demand for aluminum will double by 2020.
Alcoa's positive outlook  prices have been under pressure, prompting companies to cut back on production. Rio Tinto (RIO) plans to sell its aluminium assets and close its smelter in order to cut costs. Alcoa plans to close or curtail 390,000 metric tons, or approximately 12% of its global smelting capacity, in 2012. This will lower the company's cost position by 10 percentage points in smelting and  seven percentage points in refining, by 2015 and improve its competitiveness and bottom line.
Aluminum and Copper

The world's wealthiest people

The world's wealthiest people, endowments and pensions have been investing this way for centuries and when it comes time for them or their advisors to pick the “best managers”, their preferred choices for public market investing are usually hedge fund managers. That should not come as a surprise. Hedge funds pay the most (the standard fee is 2% management fee annually plus 20% of the profits generated for investors) so they attract the best fund managers in the world and can pay for the best research. There are also less regulatory restrictions on hedge funds. Hedge funds have more latitude on how to hedge risk or use leverage and on what securities they can buy, how they are selected and what proportion of their portfolio is allocated to a certain position. Yet even the world's wealthiest investors also recognize the importance of diversification across managers and never put their eggs with just one manager or one investment style.
Stock market picks investing

Thursday, November 7, 2013

Airline stocks airline industry investments

The global airline industry continues to face challenges in 2012, from rising costs   fuel, in particular   and economic uncertainties. The condition looks bleaker ahead with a weak outlook for Europe, given its financial problems. The International Air Transport Association (IATA) projects overall airline profits of $3.0 billion for 2012. This is down from the $3.5 billion projected last December and $4.9 billion projected in September. Moreover, the 2012 profit outlook is also below the estimated $7.9 billion in 2011 and $16 billion earned in 2010. This steep decline in the industry's profitability is a function of the overall unfavorable macro backdrop with which the industry must operate this year.  Financial advisors should be aware of developments in the geographic location of where the commodities they invest in are produced. The reason being that prices are impacted by factors like weather conditions or when political turbulence in the region causes supply concerns and fuel prices.
Airline stocks

The ADX indicator

The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a group of directional movement indicators. If you're a swing trader or long term investor, using this type of indicator as part of your technical analysis can help to prevent from entering a new long position into weak trending stocks that may be losing momentum and potentially be on the brink of reversing.The only thing traders use the ADX for is an additional filter in their scans, so that they can find stocks that are in strong trends. Trdaers do not even have the ADX indicator on the charts that they look at when they are looking for setups. Since the ADX is already factored into the charts,you don't need it added to the chart itself.
ADX trading indicator

401(k) Make a plan.

401(k)  Make a plan.
Everyone should have a sound plan for achieving their retirement goals. If you don’t know how much money you need for retirement, you can’t possibly know how much to save or how to invest it.  And, when times are tough, your plan will help you evaluate the damage to your portfolio.
Keep making regular contributions and increase them if you can. Employer matches come in a wide variety of options depending on the employer’s discretion. Some employers match contributions dollar for dollar.  Others match 25 or more cents on the dollar. That means each time you contribute, your employer adds money, for free! Often times your employer will only match up to a certain percent of your salary. But regardless, they’re adding to your retirement for you! The worst time to stop contributing to your 401(k) is when the market is down.

Small Cap Stocks

10 Small Cap Stocks With Large Insitutional Investors
Torch Energy Royalty Trust
Market cap: $11.61 mill
Institutional percent held: 62.40%
52 week price change: -42.74%
Holders: 5
Largest Holder: Silver Point Capital with 5.365 million shares worth $7.243 million
 Share price $1.35
Market cap: $16.29m
Institutional percent held: 31.94%
52 week price change: +35.81%
Holders: 9
Largest Holder: Dimensional Fund Advisors with 293,340 shares worth $1.417 million
 Share price: $4.83
Ameriana Bancorp
Market cap: $18.68m
Institutional percent held: 25.45%
52 week price change: +63.64%
Holders: 15
Largest Holder: Jeffrey L. Gendell wtih 279,065 shares worth $1.799 million
 Share price: $6.45
Market cap: $20.79m
Institutional percent held: 25.36%
52 week price change: +10.82%
Holders: 14
Largest Holder: FMR LLC with 244,600 shares worth $2.079 million
 Share price: $8.50
Educational Development Corporation (NASDAQ:EDUC)
Market cap: $15.71m
Institutional percent held: 19.29%
52 week price change: -29.14%
Holders: 7
Largest Holder: FMR LLC with 386,892 shares worth $947,568
 Share price: $4.00
Chicago Rivet & Machine Co (NYSEAMEX:CVR)
Market cap: $17.87m
Institutional percent held: 17.28%
52 week price change: +12.94%
Holders: 11
Largest holder: Dimensional Fund Advisors LP with 77,936 shares worth $1.441 million
 Share price: $18.50
Servtronics (NYSEAMEX:SVT)
Market cap: $21.40m
Institutional percent held: 16.02%
52 week price change: +5.53%
Holders: 14
Largest Holder: Dimensional Fund Advisors LP with 85,678 shares worth $769,388
 Share price: $8.98
Market cap: $17.49m
Institutional percent held: 15.71%
52 week price change: -3.85%
Holders: 10
Largest holder: Rodger Brothers Inc with 205,536 shares worth $1.747 million
 Share price: $8.50
First West Virginia Bancorp (NYSEAMEX:FWV)
Market cap: $26.97m
Institutional percent held: 14.22%
52 week price change: +18.69%
Holders: 8
Largest holder: Wellington Management Co with 163,629 shares worth $179,949
 Share price: $16.32
Electro-Sensors (NASDAQ:ELSE)
Market cap: $13.23m
Institutional percent held: 13.71%
52 week price change: +7.91%
Holders: 6
Largest holder: Whitebox Advisors with 48,204 shares worth $187,995
 Share price $3.90
Traders and investors need to stay informed on the following.
Even institutional investors or hedge funds that can run some complicated strategies seem to lack a full understanding of how these products work. In fact it was professional money managers loading up on VIX futures and ETFs that drove the steep premiums and term structure described above. Traders don't think they realized just how much they were overpaying for that supposed "protection."
At any given time, most equity and ETF options offer a multitude of strike prices, which are typically in $5 increments  though options in some smaller stocks trade in $1 or $2.50 increments , and at minimum, four expiration dates throughout the year that occur on the third Friday of the month. Thus many different expiration periods such as quarterly, monthly, and even weekly options  have been added to popular issues in recent years.
Small Cap Stocks

Trading Twitter Stock TWTR

While Twitter's valuation is 'reasonable' compared to social media peers like Facebook (FB) and LinkedIn (LNKD), do not be lulled into believing that expectations are low. Twitter really has to kick butt. But remember, Twitter won't give its first earnings report as a public company until January, so it's got some room to run until then.
The introduction of higher lows and higher highs changed the direction to bullish.  Traders needed to shift into buying pullbacks to demand in order to make quality trades.  Some of you may have been worried about the larger daily trend and how it would affect the intra-day trends. Even if you were to go through a whole trading day without executing a single trade, you did not waste your time. You gained experience in reading price action and building your trading discipline. Discipline is a major contributor to successful trading and those traders who can be disciplined to not trade when there is high risk are the ones who are more likely to succeed.
Trading Twitter