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  • 20120323
    Does this sound familiar…




    “Most of the time I earn a few pips and close out the trade because I want to catch it while it is still profitable. But when the trade goes against me I will hang onto it too long thinking it will come back to profitability but I get scared and close it out so I end up losing more. And then, what’s really frustrating is that the trade ends up moving in the direction of my original trade. How can I learn to ‘stick with my trade’ ?”





    This is a great question and it is something that all...

    by Guest - Comments: 2 - Views: 739
  • 20120323
    If one of your New Year's resolutions is to take control of your finances and put some of your savings to work, you might be considering using the stock market to do that. 2011 proved to be a tough year for even the best institutional investor and individual traders had an equally tough time navigating markets that saw a large amount of violent swings, both to the upside and the downside.

    TUTORIAL: Greatest Investors

    If you're planning to enter the markets as a new trader this year, here are a few tips to consider as you put your money to work. (For related...

    by Guest - Comments: 2 - Views: 691
  • 20120323
    It was State Street Global Advisors that launched the first exchange-traded fund (ETF) in 1993 with the introduction of the SPDR. Since then, ETFs have continued to grow in popularity and gather assets at a rapid pace. The easiest way to understand ETFs is to think of them as mutual funds that trade like stocks. Of course, trading like a stock is just one of the many features that make ETFs so popular, particularly with professional investors and individual investors who are active traders. Let's go over these attractive features. (For a background on what ETFs are and how they work, check out...

    by Guest - Comments: 0 - Views: 674
  • 20120323
    Trends are what allow traders and investors to capture profits. Whether on a short- or long-term time frame, in an overall trending market or a ranging environment, the flow from one price to another is what creates profits and losses. There are four major factors that cause both long-term trends and short-term fluctuations. These factors are governments, international transactions, speculation and expectation, and supply and demand. (For more, see Trading Trend Or Range?)

    [b]Tutorial: Economic Indicators To Know[/b]

    Major Market Forces
    Learning...

    by Guest - Comments: 0 - Views: 947
  • 20120323
    The sales pitch: "During periods of great future uncertainty …" though "future certainty" seems like any oxymoron, so a translation: "during periods of investor anxiety about the markets, you should consider managed futures which offer attractive returns in bull and bear markets as well as reduces risk by providing diversification." Sounds fantastic, I’ll take two please. Unfortunately, it’s not really that simple. It is time we take a closer look at the common misconceptions about Managed Futures and why investors today should just take a pass.

    TUTORIAL: Futures Trading...

    by Guest - Comments: 0 - Views: 10029
  • 20120323
    Because trends are composed of a series of price swings, momentum plays a key role is assessing trend strength. As such, it is important to know when a trend is slowing down. Less momentum does not always lead to a reversal, but it does signal that something is changing, and that the trend may consolidate or reverse.

    Price momentum refers to the direction and magnitude of price. Comparing price swings helps traders gain insight into price momentum. Here, we'll take a look at how to evaluate price momentum and show you what divergence in momentum can tell you about the direction of a...

    by Guest - Comments: 0 - Views: 865
  • 20120323
    In today's global economy, weeding through vast amounts of information to arrive at an investment conclusion is very difficult. But, there are steps you can take to create a screening process to help sift through the large universe of ideas, and arrive at a manageable number that merit further investigation. Here, we'll take you through those steps.

    [b]TUTORIAL: Stock Basics[/b]

    Step 1: The Broadest View
    Some investors start their search with an industry, or theme, that has compelling drivers for growth, but is currently out of favor....

    by Guest - Comments: 0 - Views: 778
  • 20120323
    Even though the reality of investing is often extremely disappointing or worse, the literature in the field can be outstanding. There is no shortage of excellent books, or of journalistic and academic writing. In this article, we'll take a look at Peter Lynch's "One Up on Wall Street" and get an overview of the kind of timeless advice that he provides. (For more, see Pick Stocks Like Peter Lynch.)

    Tutorial: Stock Picking Strategies

    Market Timing and Daring to be Different
    Lynch sums up issues on market timing beautifully. His...

    by Guest - Comments: 0 - Views: 674
  • 20120323
    An important principle in options pricing is called a put-call parity. It says that the value of a call option, at one strike price, implies a certain fair value for the corresponding put, and vice versa. The argument, for this pricing relationship, relies on the arbitrage opportunity that results if there is divergence between the value of calls and puts with the same strike price and expiration date. Arbitrageurs would step in to make profitable, risk-free trades until the departure from put-call parity is eliminated. Knowing how these trades work can give you a better feel for how put options,...

    by Guest - Comments: 0 - Views: 945
  • 20120323




    [You must be registered and logged in to see this image.] Earnings reports allow current and potential investors to evaluate a company's financial performance. All public companies must follow U.S. Securities and Exchange Commission (SEC) regulations when filing earnings reports – Form 10-Q for quarterly reports and Form 10-K for annual...

    by Guest - Comments: 0 - Views: 610
  • 20120323
    When you begin trading, there are a lot of questions. With all the information out there it can be hard to filter through and decide where to start. Setting goals can help, but often novice traders set the wrong type of goals when they decide to start trading. With this is in mind, as a novice trader your initial goals should help you to eventually make money, but making money should not be your goal. Instead, opt to make your initial goals about process and emulating traits of professional traders.

    Make Your Goals about Process not Results
    Initially, traders want...

    by Guest - Comments: 0 - Views: 626
  • 20120323
    There is an old saying in business: "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."

    If you have a written trading or investment plan, congratulations! You are in the minority. While it is still no absolute guarantee of success, you have eliminated one major roadblock. If your plan uses...

    by Guest - Comments: 0 - Views: 635
  • 20120323
    The incessant intraday struggle stock market between the bulls and the bears is what drives market rallies and precipitates market declines. Regardless of the style of analysis or system employed by traders, one primary aim of their trading endeavors is to understand the degree of control held by the bulls or bears at any given time, and to predict who should hold power in the near to distant future. Unfortunately, traders' natural desire to follow the crowds often gets in the way of seeing this clearly. Here we'll take a look at how psychology and behavioral finance propel bull and bear markets.

    by Guest - Comments: 0 - Views: 626
  • 20120323
    Playing The Gap




    Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down, with little or no trading in between. As a result, the asset's chart shows a "gap" in the normal price pattern. The enterprising trader can interpret and exploit these gaps for profit. This article will help you understand how and why gaps occur, and how you can use them to make profitable trades.

    Gap Basics
    Gaps occur because of underlying fundamental or technical factors. For example, if...

    by Guest - Comments: 0 - Views: 692
  • 20091212
    The Selection Of Call Warrant

    There are roughly 200 to 250 warrant counters available in Bursa Malaysia whilst call warrant roughly comprised of 50% out of it. Why call warrant instead of all warrant counters that trader can choose from either to trade or to invest for short to mid term gain? The answer is RISK!

    Call warrant (denoted by ending alphabet such as CA, CB, C1, C2 etc.) mostly are derivatives deride from Bursa most reputatable and financially steady heavyweight blue chip underlying...

    by Guest - Comments: 31 - Views: 10038
  • 20091115
    Unlike traditional investing, trading, or day trading, has a very short-term focus. Analysis may be broken down to days, hours and even minutes. Because day trading focuses on such short time frames, the time of day in which a trade is made can be an important factor to consider.

    First thing in the morning, market volumes and prices can go wild. The opening hours represent the window in which the market factors in all of the news releases since the previous closing bell, which contributes to price volatility. A skilled trader may be able to recognize the appropriate patterns and make...

    by Guest - Comments: 4 - Views: 868
  • 20110611
    Lack of belief in oneself is a killer. It doesn’t help you at all. And you need no one else but yourself to turn things around. Here are a fewencouraging words to help you put a little faith into yourself.


    • Think of your dream and imagine yourself reaching that. Always thinking that you’re capable of succeeding can help the thought sink into your subconscious. Remember, failure begins with disbelief.
    • Stop thinking of what you can’t do but begin to be think of the things that you can do. Be a “yes” type of person. At least to yourself.
    • When...

    by 8888 - Comments: 30 - Views: 1591
  • 20091125
    lately i am too much foruming while really have no time to analyse warrant baby characteristic etc..this is no good to spot the best bargain. anyway i need to update myself with what's going on in other call warrants and yet need to include few more warrant into my warrant favourite. the one that i have identify so far is ammb cg...the rest i need to work it out fast1

    by Guest - Comments: 21 - Views: 1482
  • 20110815
    Day Trading Rules #1

    KNOW YOUR MARKET. The best day traders specialize on only a small number of indices, or stocks, and get to know them intimately(for instance focus on trading warrants or goring stocks). The authors of the Camarilla {b} Equation themselves day trade the S&P 500 Index almost exclusively,...

    by phoenix777 - Comments: 7 - Views: 1687
  • 20111201
    In momentum trading, traders focus on stocks that are moving significantly in one direction on high volume. Momentum traders may hold their positions for a few minutes, a couple of hours or even the entire length of the trading day, depending on how quickly the stock moves and when it changes direction. Here we take a look at momentum trading, and examine a typical day in the life of this type of active trader. (For background reading, see [i]What technical tools can I use to measure momentum?[/i])

    Tutorial: Technical Analysis

    Reviewing Different...

    by Guest - Comments: 1 - Views: 770
  • 20111201
    Trading is one area where less work can often mean more money for the trader. Many stock traders spend hours doing research, but is spending this amount of time necessary for the average trader? Hedge fund managers and traders who control a large amount of capital need to do research in order to find high probability places to invest all that capital, but individual traders are far more nimble, and in fact, a lot of research may be a detriment to independent traders. While research can benefit some traders, in many cases there are alternatives. Find out why when it comes to research, less is often...

    by Guest - Comments: 1 - Views: 745
  • 20111201
    We all rely on intuition to some extent. In our private lives, we don't question it, but in the investment context, it is often frowned upon as somehow irrational and unprofessional. Hard facts are what investment is all about, right?

    In fact, one's inner voice, which makes itself heard in so many decision-making processes, is an extremely valuable resource. Particularly in complex investment situations, it is simply impossible to take all factors into account through conventional managerial and analytical processes. Information may be missing or data may be contradictory, or even just...

    by Guest - Comments: 1 - Views: 753
  • 20111201
    Trading always comes down to timing. To truly appreciate this, we simply need to note that one of the biggest gains in stock market history occurred on October 19, 1987, during the day of its greatest crash. On that day, stocks had declined a mind-harrowing 23% by the end of the day, but at around 1:30 p.m., they staged a massive rally that saw the Dow Jones and S&P indexes verticalize off the bottom, rising more than 10% before running out of steam and turning down to end the day on the lows.

    While most traders that day lost money, those who bought that bottom at 1:30 p.m. and sold...

    by Guest - Comments: 1 - Views: 742
  • 20111201
    Born in 1877, Jesse Livermore is one of the greatest traders that few people know about. While a book on his life written by Edwin Lefèvre, "Reminiscences of a Stock Operator" (1923), is highly regarded as a must-read for all traders, it deserves more than a passing recommendation. Livermore, who is the author of "How to Trade in Stocks"(1940), was one of the greatest traders of all time. At his peak in 1929, Jesse Livermore was worth $100 million, which in today's dollars roughly equates to $1.5-13 billion, depending on the index used.

    The enormity of his success becomes even...

    by Guest - Comments: 10 - Views: 1229
  • 20111201
    People often ask if technical analysis can be used as an effective substitute for fundamental analysis. Although there is no definitive answer whether technical analysis can be used as a whole substitution for fundamental analysis, there is little doubt that combining the strengths of both strategies can help investors better understand the markets and gauge the direction in which their investments might be headed. In this article, we'll look at the pros and cons of technical analysis and the factors that investors should consider when incorporating both strategies into one market outlook.

    by Guest - Comments: 1 - Views: 792
  • 20111201
    Traders have an expression for attempting to pick a market top or bottom - they call it trying to catch a falling knife. As the expression implies, it can be downright dangerous and is not normally recommended. But here is a method that may help lower the risk.

    Sushi Roll Anyone?
    In his book, "The Logical Trader", author Mark Fisher discusses techniques for identifying potential market tops and bottoms. While they serve the same purpose as the head and shoulders or double top/bottom or triple top/bottom chart patterns discussed in Bulkowski's seminal work "Encyclopedia...

    by Guest - Comments: 0 - Views: 785
  • 20111201
    The hardest, but also most important lesson to learn in trading is how to handle losses gracefully. Most traders will inevitably encounter a string of losses at some point, so those who can't lose without being thrown off their game won't survive the market. The traders who have realistic win/loss expectations and a trading system they trust have the best chance of prevailing over tough market conditions. Here we look at what kind of losses traders can expect and how they can adjust their focus and strategy to deal with these losses.

    Losing Battles …
    Every trader...

    by Guest - Comments: 0 - Views: 687
  • 20111201
    There's no shortage of directional indicators available to an aspiring market technician: moving average ribbons, moving average convergence/divergence and its cousin the MACD histogram, relative performance, the relative strength index; on-balance volume, William's Acc/Dist, and the list goes on and on. But when is it time to use a directional indicator, and conversely, when should technical analysis turn to oscillators like stochastic or Williams %R? The easy and under-used NYSE Bullish Percent Index gives concrete answers to these questions while providing a jumping off point for further, well-directed...

    by Guest - Comments: 0 - Views: 749
  • 20111201
    Money management is one of the most important (and least understood) aspects of trading. Many traders, for instance, enter a trade without any kind of exit strategy and are therefore more likely to take premature profits or, worse, run losses. Traders need to understand what exits are available to them and know how to create an exit strategy that will help minimize losses and lock in profits.

    Making an Exit
    There are obviously only two ways you can get out of a trade: by taking a loss or by making a gain. When talking about exit strategies, we use the terms take-profit...

    by Guest - Comments: 0 - Views: 667
  • 20111201
    Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains that the trader has worked to obtain. Having the right tools, such as a live feed, a direct-access broker and the stamina to place many trades is required for this strategy to be successful. (Learn more in Day Trading Strategies For Beginners.)

    Scalping is based on an assumption that most stocks will complete the...

    by Guest - Comments: 0 - Views: 10027
  • 20111201
    Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down with little or no trading in between. As a result, the asset's chart shows a "gap" in the normal price pattern. The enterprising trader can interpret and exploit these gaps for profit. Here we'll help you understand how and why gaps occur, and how you can use them to make profitable trades.

    Gap Basics
    Gaps occur as a result of underlying fundamental or technical factors. For example, if a company's earnings are much higher than expected, the company's...

    by Guest - Comments: 0 - Views: 734
  • 20111201
    The first rule of investing is buy low and sell high. After all, that's the only way you can actually make any money in the market. Nearly all investors would agree with that idea. But there's another group of market participants that are trying to do the exact same thing - they're just trying to do it in a different time frame and with a different methodology. They're called traders. Generally speaking, investors tend to scoff at traders. However, wise investors may want to take a closer look at some things that traders do well. In this article, we'll give you a rundown of some of the skills that...

    by Guest - Comments: 0 - Views: 639
  • 20111201
    Many traders who use technical analysis often hear phrases that suggest a "broken support level will become a future area of resistance" or that a "previous level of resistance will become a support". For beginner traders phrases like this sound like they're spoken in another language, and even many experienced traders never fully understand or appreciate this intriguing role reversal. This article will attempt to shed light on the importance of support and resistance and illustrate why traders should take note when they reverse roles.

    Support and Resistance – The Basics

    by Guest - Comments: 0 - Views: 972
  • 20111201
    The use of the fundamental approach in trading has long been an object of argument between its followers and those who mercilessly deride the method's usefulness. We will not take sides in this eternal argument, but we will try to find out how the average trader can benefit from fundamental analysis. Read on to discover the strengths and weaknesses of fundamental analysis as a traders' tool. (For more insight, see What Can Traders Learn From Investors.)

    The Mechanics
    The fundamental approach is based on an in-depth and all-around study of the underlying...

    by Guest - Comments: 0 - Views: 715
  • 20111201
    The popularization of speculative trading activity in the financial markets, partly due to the development of retail trading solutions offered on the internet, has created a new population of traders in the market. Most of these traders are non-professionals that are attracted by the potential to generate revenue quickly.

    Falsely Created Expectations
    Many novice traders may believe that it is very easy to make money, especially when they are trying a broker service using a free practice account.

    However, if these traders manage to generate a sudden...

    by Guest - Comments: 0 - Views: 712
  • 20111201
    "All economic movements, by their very nature, are motivated by crowd psychology." -- Financier Bernard Baruch

    At times, a market will appear to move based on fundamentals, while at other times, the same market will move in the opposite direction on the same news! The key to understanding the highest probability move is to understand the psychology associated with that market. You must also understand that markets move in trends but reverse at extreme levels of bullishness (tops) and bearishness (bottoms). This characteristic is best explained through the words of the English...

    by Guest - Comments: 0 - Views: 705
  • 20111201
    In order to consistently make money in the markets, traders need to learn how to identify an underlying trend and trade around it accordingly. Common clichés include: "trade with the trend", "don't fight the tape" and "the trend is your friend".

    Trends can be classified as primary, intermediate and short term. However, markets exist in several time frames simultaneously. As such, there can be conflicting trends within a particular stock depending on the time frame being considered. It is not out of the ordinary for a stock to be in a primary uptrend while being mired in intermediate...

    by Guest - Comments: 0 - Views: 661
  • 20111201
    Breakout trading is used by active investors to take a position within a trend's early stages. Generally speaking, this strategy can be the starting point for major price moves, expansions in volatility and, when managed properly, can offer limited downside risk. Throughout this article, we'll walk you through the anatomy of this trade from start to finish and offer a few ideas to better manage this trading style.

    What Is a Breakout?
    A breakout is a stock price that moves outside a defined support or resistance level with increased volume. A breakout trader enters...

    by Guest - Comments: 0 - Views: 808
  • 20111201
    Rogue trading makes headlines. In late 2011 an unauthorized trader lost $2 billion for the Swiss-based bank, USB. The idea of a single person losing millions and occasionally billions of dollars is always interesting, but it is even more so when that person is losing other people's money.

    In this article we will look at six of the rogue traders (in no particular order) who became famous for their very public losses.

    Nick and the Nikkei - $1.3 Billion
    Nick Leeson is probably the most famous rogue trader in the world. He even wrote a book on the...

    by Guest - Comments: 0 - Views: 671
  • 20111201
    One of the tenets of stock investing that the average investor, as well as the sophisticated day trader, has heard repeatedly is "buy low, sell high". Sounds like a reasonable approach to investing, right?

    Unfortunately, it is much more difficult than it seems. This is partly because some rookie investors may equate stock investing with shopping at the mall. If a cashmere sweater costs $250 in December but has been marked down to $50 in July, then it must be a good deal, or have some type of value. Maybe so, but stocks are different. If the price of a stock over the last year...

    by Guest - Comments: 0 - Views: 622
  • 20111201
    Stock prices may appear random, but there are repeating price cycles, which are predominantly driven by the participation of large financial institutions. The activity of large institutional buying plays out in four distinct phases:

    1. Accumulation
    2. Markup
    3. Distribution
    4. Markdown

    A trader must have a strategy to take advantage of price action as it is happening. Understanding the four phases of price will maximize returns because only one of the phases gives the investor optimum profit opportunity in the stock...

    by Guest - Comments: 0 - Views: 816
  • 20111201
    Few people associate Eddie Murphy, Dan Ackroyd and the 1983 movie "Trading Places" with one of the greatest trading stories of all time. However, in the same year the movie was released, a real-life experiment along similar lines was carried out by legendary commodity traders Richard Dennis and William Eckhardt. In the end, life imitated art and the experiment proved that anyone can be taught to trade well. (For related reading, see Financial Careers According To Hollywood.)

    The Turtle Experiment
    By the early 1980s, Dennis was widely recognized in the trading...

    by Guest - Comments: 0 - Views: 774
  • 20111201
    Short-term trading can be very lucrative, but also risky. It can last for as little as a few minutes to as long as several days. To succeed at this strategy, traders must understand the risks and the rewards of each trade. They must not only know how to spot good short-term opportunities, but also must be able to protect themselves from unforeseen events. In this article, we'll examine the basics of spotting good short-term trades and show you how to profit from them.

    The Fundamentals of Short-Term Trading
    Several basic concepts must be understood and mastered for...

    by Guest - Comments: 0 - Views: 626
  • 20111201
    It can be said that to trade effectively, one has to understand that markets are filled with an extremely large number of market participants, along with their hopes, fears and thoughts - both rational and irrational. As traders, we are ultimately trading people and not stocks. It is people and their thoughts and expectations that push a stock to support and resistance. Fundamentals don't move stocks in the near term, it is people's expectations that do. A stock can have a 3% move in a day without any change in the underlying fundamentals. Money, and the thought of making or losing it, has a way...

    by Guest - Comments: 0 - Views: 538
  • 20111201
    There's an old saying in investing: even a dead cat will bounce if it is dropped from high enough. The dead cat bounce refers to a short-term recovery in a declining trend. In this article, we explore this phenomenon by looking at an example of a dead cat bounce and contrasting it to an actual change in sentiment that turns a market's outlook from bearish to bullish.

    What Is a Dead Cat Bounce?
    Let's take a look at a period of economic turmoil:


    by Guest - Comments: 0 - Views: 756
  • 20111201
    All traders should have a good trading plan. One of the worst bad habits a trader can have is trading impulsively and without any guidelines. Traders who take the time to make a trading plan are much more likely to succeed, but even with a plan in place we can develop bad habits. A trader will make impulsive trades even with their plan taped to the wall next to them. They may exit winning trades too quickly or let losses go longer than their plan states they should. In this article we will go into how we can change our bad habits. The process involves how we personally view our successes and failures,...

    by Guest - Comments: 0 - Views: 502
  • 20111201
    There are two types of markets in which a trader will trade - a trending market or a sideways market. On any time frame, a trade may be held through both types of market, but it is when the trade is entered and in what type of market (trending or sideways) that determines its level of risk. Risk is simply the amount of price movement we would expect before we can say with some certainty the trade is not moving in our direction (at least for right now), and is moving because of factors beyond simple market noise. (To learn how to trade a sideways market, read Finding Value In A Sideways Market.)...

    by Guest - Comments: 0 - Views: 571
  • 20111201
    Most individual investors make very simple decisions when investing - they either buy or sell a stock based on its perceived value. By contrast, professional investors formulate broad investment ideas and then design specific strategies to maximize profit and minimize risk. Individual investors can employ these same strategies by adhering to a simple set of rules and guidelines.

    An Introduction to Hedging
    Hedges are designed to mitigate risk and isolate opportunity in an investment thesis. For example, an investor who is bullish on a retailer due to its real estate's...

    by Guest - Comments: 0 - Views: 520
  • 20111201
    Momentum is perhaps the simplest and easiest oscillator to understand and use; it is the measurement of the speed or velocity of price changes. In "Technical Analysis of the Financial Markets", John J. Murphy explains:

    "Market momentum is measured by continually taking price differences for a fixed time interval. To construct a 10-day momentum line, simply subtract the closing price 10 days ago from the last closing price. This positive or negative value is then plotted around a zero line. The formula for momentum is:


    by Guest - Comments: 0 - Views: 762
  • 20111201
    Risk management is an essential but often overlooked prerequisite to successful active trading. After all, a trader that has generated substantial profits over his or her lifetime can lose it all in just one or two bad trades if proper risk management isn't employed. This article will discuss some simple strategies that can be used to protect your trading profits.

    Planning Your Trades
    One of Sun Tzu's most famous quotes is: "Every battle is won before it is fought." The phrase implies that it is planning and strategy that wins wars and not the battles themselves....

    by Guest - Comments: 0 - Views: 1154
 
 

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