Friday, January 10, 2014

How to chose the right entry point

 Stock traders need to have a trading plan in place to decide when to enter or buy a stock. Having the right entry point will make a trader more money and have less risk on their trades. Smart investors always have a well designed buying strategy. They have back tested the trading plan and know when to take good trades from chart analysis and research. This is most important when determining the entry point when buying a stock.
Stock and Forex Entry Points  Traders need to look at the trend to make sure when they make a buy that they are not trading against a strong trend. make sure to look at how long the trend has been in place. You need to look at the profit potential before you make the trade. Ask yourself is the amount of profit worth the risk. You should always assets the amount of risk before worrying about the profit. Of course the larger number of stock shares purchased will get you to a smaller profit faster with less risk.

Thursday, January 9, 2014

Best emini day trading signals

The emini futures market makes price swings every day and to experienced traders these are predictable, using either fundamental analysis, and watching the trend. Emini traders all know, technical analysis or a combination of both will reduce the risk and make more money on the emini futures trades.  Futures traders will use some form of strategy based around news events and a thorough understanding of the macro economic mix. Emini futures traders need to decide on which charting tool works the best for them. There is an inherent need for futures traders to try out what charting indicator works the best and learn it inside and out.
Emini trading

Wednesday, January 8, 2014

Learning stock options call and put option trading

The Two Types The trade for stock options is fast becoming increasingly popular in the market these days. With its many trading advantages and high promises for financial profit, quite a few have become quite serious about buying and selling many of these stock options. Let us learn about the two types of these stock in order to better understand how to trade them. Knowing how each of these options would work to your benefit as the contract holder can surely come in handy with the volatile trends ongoing in the stock market. The two major types of option contracts are the call option and the put option. Each of these contracts holds rights and benefits for their owners. Let us discuss each of these and how they can be useful to you. Call Options A call option is a type of contract that gives its owner the right to buy the underlying stock at a certain fixed price (also called the strike price) within a specified time frame, which should be on or before the expiry date. The buyer of a call holds the right to purchase shares at the strike price until the date of expiry. The writer or the seller of the call on the other hand, holds the obligation. If a call buyer chooses to exercise his or her option by deciding to purchase the underlying share, then the call writer is then obliged to sell his or her share at the negotiated strike price. For example, an investor purchases a call option from a certain business with a strike price of $10, which will expire in two months, then that buyer secures the right to exercise their own option by paying the value of $10 for each share. The writer, on the other hand, would be obligated to give up the shares in the exchange for $10 for each of them. Put Stock On the other hand, a put option is the complete opposite of the previous. It is a contract that allows one to sell the underlying stock at a specific price on or before the expiry date. A put purchaser secures the right to sell shares at the strike price, and following this, a put writer will then be obliged to sell at the negotiated price.

Monday, January 6, 2014

Using stops and stop losses in forex and stock trading.



  Any good trading plan will include how to use stops, and stop losses. Your trading rules will put stops at the top to save your money and protect profits. It should be logical in your trading process for executing profitable trades. You should have your setup written down in your plan. As a trader you should use patience and discipline to wait for the best area to buy. You will have more success because you have tested your trading plan and know that it has a profitable track record. Knowing your buy strategy will help you execute your trading plan in an smooth manner with no hesitation.

   Your risk management is also thought out so your initial stop is set on entry and you know when you will be moving your stop loss to breakeven after the forex or stock moves in a positive direction by a certain percentage. You should  have a set price target, a trailing stop, and stop loss already figured into the trade. If your trade is in the money and you are seeing profits, you may want to start to using trailing stops to help you lock in your profits. If the trade is following a good trend just re-set your trailing stop.
 
  Experienced traders know the percentages are in their favor if they stay with the trend. It is much easier than trying to pick tops and bottoms of a range bound trade. The top and bottom pickers will eventually lose the money in their trading accounts. Support and resistance levels are really not the same as tops and bottoms so you need to adjust your trading to make it less risking and lock in profits. Staying with the trend is much safer than countertrend trading. Trading  the forex market with the trend will have a better risk reward. The trader will be in the money for a longer period of time.
 

Trading trends in the forex and stock markets


 Stock and forex trading trading is often stressful, emotional, and hard to do. Prior to any forex trade is ever made, a trader must make all kinds of decisions, decisions that can influence the out come of the trade and the traders confidence. Learning to read the uptrends and downtrends on a chart will make you money. Good traders will use systems that minimize the risk and increase profits.
Profitable traders are great at what they do that decisions make them money on most of their trades.
First, one has to spend years learning how to trade and reading trends and charts is a big part of being successful. You need to study the stock and forex markets, you need to keep up with world economics, developing a trading system with proven strategies. Forex traders need to search out help, which exist, even if around every corner another inexperienced traders promising you that short cuts do, in fact, exist.

Saturday, January 4, 2014

Chasing a trade or greed

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.

Followed your trading plan

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.