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