Friday, February 28, 2014

Futures trading market orders

Many Futures traders have to make a decision of just how bad they want to get in or close out a market position. Sometimes the trader thinks that the market did not trade at their price targets and the price seems to be leaving without the trader making a profit. Some times a market might be making an adverse move against them and they want to place a very quick sell order. During these times of the thought process, a trader rarely thinks of the cost to use such an immediate type of order execution. These urgent types of orders are called market orders and can cost money.
Trading market orders

Real GDP

Friday's revisions to fourth-quarter gross domestic product highlight the swing shift in growth. Real GDP grew at a robust 4.1% annual pace in the third quarter, and a month ago, the Commerce Department said the economy grew at a strong 3.2% pace in the fourth quarter.
With more monthly data available, however, Commerce has trimmed down year-end growth to just 2.4%. That puts growth back down to the same modest rate averaged so far in this recovery. The slower growth also explains why employment gains have eased after stronger job growth earlier in 2013.
Inventories are a big reason for the fast-slow pattern. Since the recovery started in mid-2009, the inventory sector has added almost three percentage points or subtracted as much as two points to quarterly growth.

US economy reverts back

 After a stellar 3Q performance, the US economy reverts back to its trend of weak demand -- not a good sign for 2014. Just as economists expected, real 4Q GDP growth is revised down to 2.4%, from 3.2%. The downward revision came mainly from the demand side: consumers and foreigners increased spending by less than first estimated and the government sector continued to pare back on purchases.

Thursday, February 27, 2014

Fed's bond-buying

The Fed's bond-buying program was designed to drive faster growth by lowering borrowing costs to encourage more spending, hiring and investment. The central bank decided in January to trim its purchases by $10 billion to $65 billion a month, and Fed officials have signaled they'll likely continue reducing the purchases this year if the economy improves as they expect.

Stock or Forex markets Trading Rules

No matter what your thoughts are for getting involved in trading, you must first define your goals and make sure you log performance. Without plans that define your goals in simple terms, being able to focus on a good trade becomes nearly impossible. Traders need the ability to track and measure because trading is a work and making money and needs constant adjustment in order to reach your goals. Top traders and investors have realized through experience that just having skills isn’t enough. They need to believe in those skills and the ability to make trades at the highest levels every time or their trading accounts can become ruined. Thus as the cost of doing business, top investors allocate time and research to developing their ability to get their trading into profits.
Trading Rules

Monday, February 24, 2014

U.S. economic strength

A gauge of U.S. economic strength pointed to slowing growth in January, providing additional evidence the nation's production, consumption and housing sectors are skidding into 2014.
The Federal Reserve Bank of Chicago's National Activity Index, released Monday, fell to -0.39 in January from -0.03 in the prior month. The three-month moving average, designed to smooth out month-to-month volatility, also declined, falling to +0.10 last month from December's +0.26. The index is a weighted average of 85 indicators of economic activity nationwide. A reading above zero indicates growth above the nation's history trend.
Forty-four of the 85 individual indicators made a negative contribution to the monthly indicator, while 41 pushed it higher. The declines were focused in two areas. Production category fell to -0.36 in January, down from +0.06 in December. The consumption-and-housing category fell to -0.18 from -0.14 in the prior month. The employment and sales sectors saw their slight gains overwhelmed.

Treasury auctions

Treasury auctions. Today's 22 big banks which act as intermediaries between bidders and the US is down from 46 in 1988 even though the country's debt load is up seven-fold the past quarter-century. While the decline has been driven by consolidation in the financial industry, the introduction of web-based auction bidding is also increasing final investors' ability to circumvent primary dealers, the committee noted. Electronic bidding has also cut the average time it takes the government to announce auction results to about 2 minutes from 30, reducing bidders' exposure to market risks.