Knowing your entry and stop is good because now you know how much you stand to lose if the trade does not work out. This minimizes fear in the trade since we fear what we do not know. Knowing and accepting the potential loss before entry reduces this. Knowing the target price is also a way to minimize fear. If you have identified the highest probable turning point for price and marked that as your target, you are less likely to be fearful and exit on small corrections on the way to that target. We cut our winners short because we are fearful of any adverse movement in price. Knowing where the high probability reversal point is allows you to ignore "speed bumps" that are only minor pullbacks in price.The second thing we can do to maximize our winning trades is to have a trailing stop system in place. By trading with a rule-based system, we are trading on logic and not emotion and are more likely to have success. There are several options for a trailing stop system and none is perfect. Having a system is an advantage, as I mentioned, to remove emotional trading. In our courses at Online Trading Academy, we teach our students many ways of creating this system and have them practice in class with real trading accounts to see which method is best for their own trading.
Make money trading
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Saturday, January 18, 2014
Friday, January 17, 2014
Make money trading currency
Knowing your entry and stop is good because now you know how much you stand to lose if the trade does not work out. This minimizes fear in the trade since we fear what we do not know. Knowing and accepting the potential loss before entry reduces this. Knowing the target price is also a way to minimize fear. If you have identified the highest probable turning point for price and marked that as your target, you are less likely to be fearful and exit on small corrections on the way to that target. We cut our winners short because we are fearful of any adverse movement in price. Knowing where the high probability reversal point is allows you to ignore "speed bumps" that are only minor pullbacks in price.The second thing we can do to maximize our winning trades is to have a trailing stop system in place. By trading with a rule-based system, we are trading on logic and not emotion and are more likely to have success. There are several options for a trailing stop system and none is perfect. Having a system is an advantage, as I mentioned, to remove emotional trading. In our courses at Online Trading Academy, we teach our students many ways of creating this system and have them practice in class with real trading accounts to see which method is best for their own trading.
Make money trading
Wednesday, January 15, 2014
Trading the exchanges
High frequency trading has become the normal way for a large amount of stocks started by technological developments in investing. Automation that eliminated the use of specialists on the floor of the New York Stock Exchange and eliminated arbitrage opportunities for brokers and day traders has went through the world's financial centers like crazy. Some of the most recent uproar has started around anonymous trading areas which don't show bids and offers.
These areas allow investors to make big trades without broadcasting their positions since the very act of bidding or selling publicly would change the price of a stock on an exchange. But traders who think this style of trading hasn't been happening a long time is deluding themselves. Both market conditions and increased automation make it easier for traders to make trades outside of the stock markets, where prices of securities are shown during the day. But in reality, automation has now empowered threats to the old exchanges' dominance. More than anything, this has been generated by a feud between exchanges and brokerages for fees and the first site at information. The largets stockholders have long been able to trade while hidden from view. A 1993 New York Stock Exchange working paper described the practice trading big "blocks" of stocks .
New York Stock Exchange
These areas allow investors to make big trades without broadcasting their positions since the very act of bidding or selling publicly would change the price of a stock on an exchange. But traders who think this style of trading hasn't been happening a long time is deluding themselves. Both market conditions and increased automation make it easier for traders to make trades outside of the stock markets, where prices of securities are shown during the day. But in reality, automation has now empowered threats to the old exchanges' dominance. More than anything, this has been generated by a feud between exchanges and brokerages for fees and the first site at information. The largets stockholders have long been able to trade while hidden from view. A 1993 New York Stock Exchange working paper described the practice trading big "blocks" of stocks .
Monday, January 13, 2014
How to trade low volume ETF
Most commodity holdings are under the umbrella of an asset like crude oil or natural gas. Traders know that, energy products are among the most popular in the commodity world, but showing value towards these investments can have some adverse effects on their portfolio. Energy products are quite often highly correlated to the movement of general markets, meaning that they will move closely in line with something like the S&P 500. One of the main reasons that commodity trades are needed in a portfolio is the low correlation and diversification benefits that these investments offer. An energy heavy portfolio will likely only increase your losses on bad days which may not be enough to be erased by days in the black.
How to trade low volume Concerns over demand from China have weighed on iron ore prices for some time, and the world's largest producers of the raw material ended May 2012 in the red. But some say sentiment could improve in the second half of this year. It's not clear if sentiment alone, however, can prop up the sector. Annalists steel raw materials weaker Chinese underlying demand, coupled with plentiful supply and ample stocks drove the iron ore market downward in May, as falling steel prices in China weighed heavily on sentiment in the iron ore market. In a recent Commodities Compendium on iron ore, trading analysts noted that the persistent supply struggles, coupled with grade degradation at existing assets, "highlight the challenges in bringing incremental iron ore supply to market and a need to discount heavily potential future growth."
How to trade low volume Concerns over demand from China have weighed on iron ore prices for some time, and the world's largest producers of the raw material ended May 2012 in the red. But some say sentiment could improve in the second half of this year. It's not clear if sentiment alone, however, can prop up the sector. Annalists steel raw materials weaker Chinese underlying demand, coupled with plentiful supply and ample stocks drove the iron ore market downward in May, as falling steel prices in China weighed heavily on sentiment in the iron ore market. In a recent Commodities Compendium on iron ore, trading analysts noted that the persistent supply struggles, coupled with grade degradation at existing assets, "highlight the challenges in bringing incremental iron ore supply to market and a need to discount heavily potential future growth."
Sunday, January 12, 2014
Exchange traded funds option trading.
If you are thinking about how to trade exchange traded funds or ETF options here are a few tips to get you started.ETF option trading. The first thing you need to do is make sure you have a broker like Ameritrade or Etrade and that they have approved you for trading options such as ETF's. ETFs are securities that you trade like a stock and are typically designed to follow an underlying index like the Russel 1000, symbol FAS, which can trade over 80 million shares a day. Most of the top brokerages will have ETF trading available for traders. They will also have a ETF screener that can help you get started trading options. Companies like Ameritrade have a option screener called options 360 and a strategy trading platform. Exchange traded funds software On these options trading platforms you can enter the underlying symbol and it will tell you the current call and put options available.If you don't know the underlying symbol for the option you can type in the stock symbol and it will show you the option symbol. Most of these option platforms will also tell you the volume ,strike prices and what month they expire plus many other charts and so on.Call and put option contracts are 1 contract equals 100 shares of the stock.
Saturday, January 11, 2014
Ltd Commodities futures
Remember that word diversification? Well, it applies in
ETFs also. By investing in ETFs that track the broad Commodity indexes as opposed to Commodity specific indexes such as Gold, Oil,
Natural Gas, you will have a portfolio of a group of Commodities and not all of them will be in conflict at the same time.
Some may actually be inverted markets and this offers great pricing at rollovers for the ETFs. You should see how inverted
markets offer lower prices with each succeeding contract. One note of caution about Commodity ETFs: Always read the broker's prospectus and make sure that the ETF is tracking the physical Commodities and that the ETF is not tracking companies related to producing or processing these Commodities.
ETFs that have baskets of Commodities in each:
RJI - Rogers International Commodity
GSG – S&P GSCI Commodity Index
GCC – Green Haven Continuous Commodity Index
DJP – Dow Jones Commodity Index
DBC – Powershares DB Commodity Index
Ltd Commodities
ETFs also. By investing in ETFs that track the broad Commodity indexes as opposed to Commodity specific indexes such as Gold, Oil,
Natural Gas, you will have a portfolio of a group of Commodities and not all of them will be in conflict at the same time.
Some may actually be inverted markets and this offers great pricing at rollovers for the ETFs. You should see how inverted
markets offer lower prices with each succeeding contract. One note of caution about Commodity ETFs: Always read the broker's prospectus and make sure that the ETF is tracking the physical Commodities and that the ETF is not tracking companies related to producing or processing these Commodities.
ETFs that have baskets of Commodities in each:
RJI - Rogers International Commodity
GSG – S&P GSCI Commodity Index
GCC – Green Haven Continuous Commodity Index
DJP – Dow Jones Commodity Index
DBC – Powershares DB Commodity Index
Friday, January 10, 2014
Trading with Equity Feed
The latest evolution of the Equity Feed platform provides its users with:
Timely and actionable market data through an information platform that’s rock-solid in terms of stability, accuracy and as near zero-latency as possible. EquityFeed has achieved this through an algorithmic-grade ticker plant and proprietary client-side compression technology.
Data that is clean and simple to use. Reducing clutter makes it easier for you to access the data you need to make trading decisions. Unlike others tools we’ve tried, EquityFeed places a strong emphasis on making their tools easy to read and interpret – the super-slick user-interface clearly reflects that.
TradeConnect gives TD AMERITRADE™ account holders the ability to trade directly through EquityFeed’s proprietary trading platform.
An unwavering commitment to innovation and education, with their video tutorials and weekly webinars.You cannot always pick the highs and lows. Try and stay near the support and resistance levels when making a stock or especially a forex trade. The more you learn how to read stock and forex charts the less risk you will take when trading.
Equity feed
Timely and actionable market data through an information platform that’s rock-solid in terms of stability, accuracy and as near zero-latency as possible. EquityFeed has achieved this through an algorithmic-grade ticker plant and proprietary client-side compression technology.
Data that is clean and simple to use. Reducing clutter makes it easier for you to access the data you need to make trading decisions. Unlike others tools we’ve tried, EquityFeed places a strong emphasis on making their tools easy to read and interpret – the super-slick user-interface clearly reflects that.
TradeConnect gives TD AMERITRADE™ account holders the ability to trade directly through EquityFeed’s proprietary trading platform.
An unwavering commitment to innovation and education, with their video tutorials and weekly webinars.You cannot always pick the highs and lows. Try and stay near the support and resistance levels when making a stock or especially a forex trade. The more you learn how to read stock and forex charts the less risk you will take when trading.
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