What Trend Lines Can Tell You About the Market

Trend lines highlight pivot points-where market activity moves out of a pattern and into another one-and indicate a projected development path for the instrument you're tracking. Monitoring is an easily readable way to help inform your trading, whether you concentrate on day trading or work in larger time scales.

Using trend lines can help you filter out the "noisy" detail of traditional candlestick charts and see the big movements where real money can be made. These movements originate in consolidation zones, where an inclining and declining trend intersect. Using these line charts to locate these consolidation zones can help you identify key entry and exit points. The beauty of trend lines is that you get a clear visual of trends as they develop, and the triangular formation of a developing consolidation point is easy to spot and track.

What's the Importance of Pivot Points?

Pivot points are the key to understanding trend lines. Where an instrument pivots, it's pointing you to something happening in the market that you should pay attention to-an up trend is turning to a downtrend, or vice versa. Watch pivot points and analyze them carefully to locate the underlying cause. Is what you're seeing part of a cyclical pattern moving through its top or bottom? Or are you looking at something that could be the beginning of a larger-scale movement? Track the preceding activity to evaluate your next move.

How Do I Predict Which Way My Stocks Will Break Out?

It helps to investigate trends at a higher time scale; an asset will often break out of consolidation in the direction of a larger trend pattern. This isn't a sure thing, however; it is essential to monitor other indicators in order to provide context for trending behavior. Using trend lines at a variety of time scales, however, will give you a detailed picture of trading activity and allow you to locate high-probability trades effectively.

Given this caveat, the trend line is a powerful and easy-to-use indicator that will serve you in good stead throughout every time scale and instrument you can throw at it. As you learn and use it through time, you will begin to understand more subtle interactions that will increase the power of your trading immeasurably.


View the original article here

Why Some Investors Get Into FX Options Trading

An investor, as you, is a well-educated risk taker. An investor always loves the adventures in business, especially in a fast-paced market as with foreign exchange (FX) market. The ups and downs of price movement are really engaging for investors. In their eyes, FX is similar to roller coaster, very amusing. Lucky for them, FX as the biggest financial market provides several instruments to trade; one of it is FX options trading.


FX options trading is the most liquid option market compared to other options in financial market. It is not a wonder since the mother of options trading is foreign exchange market, the biggest and most liquid financial market. FX option itself is mostly traded over-the-counter but some of exchanges also trade options, they are Chicago Mercantile Exchange, International Security Exchange and Philadelphia Stock Exchange.


Some investors, both individual and institutional, get into FX options trading because they know the benefit and the risk involved in options trading. They have equipped themselves with an arsenal of options trading strategies. They keep on doing it for years for their own purpose. But what exactly are the purposes? Why do they trade FX options? Possibly you can find out some reasons but mainly there are two purposes of options usage:
FX options can be used for hedging purpose. Some investors utilize options to hedge their trading position in FX cash (spot) market. They use it together with stop-loss level in cash market. Therefore, if the stop-loss level is eventually being hit, then as the result their options trading will generate unlimited profit. Some extreme traders even replace the stop-loss level with options.FX optionsis another good place to speculate and generate profit. It should be the most common motivation for every investors and traders. We know that we can reduce the risk while trading in the options market. With good strategies we can create zero premium cost or at least it is the only loss potential we have. Sounds interesting? Some traders also optimize options during important economic data and market news. You can be as good as them if you want.

However bear in mind that we have to be careful as FX options trading is not for rookies. Asking the experts on every aspect of FX options will be a precious thing to do unless you want to get hurt in the market. Know it and love it if you want. Be ready for the good and the bad as FX options trading has it all.


View the original article here

Why Do We Look For The Perfect Trade

Here was a question I was posed from an Inner Circle member, [1/15/2011 3:03:58 PM]xxx: My quick question is: How can I overcome from the perfecting phase to the performing phase? (I hope you know what i mean/think of) Thanks in advance, Tom. Cheers xxx from Denmark.

I figure if this person is struggling with this then others must be also. This and similar questions like this were answered in my Money Management E-book, but I am happy to answer the best I can for all to read and learn from.

Okay, so if I am reading this trader right and I think I am his question(problem) is that he is looking for the Perfect Trade the one that has zero chance for losses! He cant get himself to pull the trigger, or if he does pull the trigger self doubt overcomes him and he gets out before the s/l. The next trade he takes he may let run beyond the S/L, because the first was a winner after it challenged the s/l but was never executed. (However he got out before he should have.)

Lets pull apart the issue of:

Perfectionism: Definition in the English language.

per?fec?tion?ism

-noun

1. any of various doctrines holding that religious, moral, social, or political perfection is attainable.

2. a personal standard, attitude, or philosophy that demands perfection and rejects anything less.

Then The Medical Definition:

Medical Dictionary

per?fec?tion?ism definition

: a disposition to regard anything short of perfection as unacceptable

especially: the setting of unrealistically demanding goals accompanied by a disposition to regard failure to achieve them as unacceptable and a sign of personal worthlessness

This Medical Definition is the most useful definition for us as traders.

Perfectionism in trading is a form of procrastination. Procrastination in trading occurs because of the fear of being wrong, it is Ego based. This persons values being right(showing that they are smart) more then they value making money in the Forex Market. This will cause most to trade haphazardly. Taking one trade that sets up and disregarding another, then moving s/l (either up or down.) It just creates confusion, which produces non adaptive behavior. That will put you in the negative loss loop. Confusion===>Errors===>Losses!! Rinse and Repeat Confusion===>Errors===> Losses.

Errors are not following your trading rules! Errors have nothing to do with losing Money we all do that, Trading without losses is like living only breathing in and never breathing out! Your main job as a trader is to Control The Losses. How Through Money Management.

Aldo always told me (and I think he pinched the line from someone)

*Professional Traders look for over all performance, Novice traders are always in search of Perfection*

When you are looking for perfection, you want to be right, you are not dealing with the market. You are trying to force the market to do what you want it do do. Huge mistake. There is a simple solution, make it okay not to be perfect. We are all far from it, some people more then others. Just ribbing you.)

Here are somethings that I learned all boiled down:

*You can never succeed at trading if all possible objections must be overcome first!*

AND

"*In trading with a plan, its better to be boldly decisive and risk being wrong than to agonize at length and be right too late...**

Lets look at the steps necessary to overcome this evil Ego Based issue.

Realize trading is a game of probabilities, it is not a pure science. It is a bit like medicine part science part instinct. Just like medicine if you follow the frame work you will succeed over all.Trust your Money Management Plan, know that it will save you from ruin.Make it okay to lose, its part of the game!Have a high probability trading system in place(I taught him many these so that was all worked out, but obviously he doesn't trust them, which is okay. He needs to come up with a mixture of mine and his own.)Test the systems using Entry And Exit formulas(again in my super ebook on Money Management. Hey a bit of self promotion doesn't hurt.)Realize no trader or trade will ever be perfect

Pull The Trigger And Follow Your Rules.

So these are the steps needed to move away from the stuck state of Perfectionism. JUST DO IT!

Enjoy The Party.... Dance Near The Door!

PS Since he strives for perfection he will probably say this was not the answer he was looking for, and I misunderstood!

Also Please feel free to come on over to the blog and comment, if you have any tips of how you over came inner obstacles with trading,or you if you have inner issues that you want to discuss. Don't be shy. We all enter the world naked!


View the original article here

Why Most Traders Lose Money

Have you ever, as a trader of foreign exchange, found that your demo account works pretty fine until you go live with the broker of your choice? I have, and with a great deal of frustration too. The question here is why does this happen? Why do trades go well on demo accounts and the same strategy fails on a live one?

I think, after 7 years of trading on demo and live accounts, that I have the answer to my questions. All brokers, even the ones that claim to be Straight Through dealers have a way of fixing the scales. The reason is that they are trading against you and all your winning trades lead to a bit of loss to them. So, it is in their interest for you to lose!

I had opened an account with UWC Forex and funded my account with 100 USD as a special New Year's bonus from my payment processor. Before I funded the account all my trades were going well according to my trading strategy. The minute I went real my strategy went absurdly wrong! A strategy that works fine for 3 years just can't go wrong like that. However, I must admit that the first few trades, 10 in a row, were winning trades and I was really excited seeing real money coming in. Then I realized that I was working on the minimum leverage of 1:10 and put in a ticket to increase my leverage to 1:500. That's when my strategy began to go wrong.

After the increase of leverage I did make 3 consecutive winning trades, but then the system began to ask for re-quotes and would take over 35 seconds to fill my orders. Sometimes when the orders were filled it would be too late. I open positions and wait for 2 to 3 minutes to cover the spread and take out 3 to 6 pips per trade - sometimes just 2 pips - before closing the position. Chatting online with support got me no answers - naturally.

My trading strategy that worked well on demo accounts on different platforms, started to go bad. When my signals indicated that I should buy the prices would move in the direction I expected them to move - IF I never placed an order. IF I placed an order, the prices would move in the OPPOSITE direction that I expect them to according to my trading strategy.

This led me to believe that the system was being fixed. Even the spreads would greatly vary when I placed an order leading to lesser profits or losses.

I believe my system is pretty good, with 80 percent winning trades and 20 percent losing ones, but I can work on the strategy to lessen that gap too. I feel that I need to open an account with an ECN broker. But the only credible ones I have found require 20,000 USD to get started!


View the original article here

If You Want A Ferrari, Then You Need To Stop Working!

Hi, folks let me tell you how I started to create wealth realizing how everything I learned in my life was erroneous and misleading and counterproductive to succeed and be happy.

All the crap We learned all our life that You are a failure, Money is not for YOU, You can not afford it, Riches are Evil, Money is Evil,Work hard and save, are all wrong and misleading.

Same with all the lies and non sense beliefs that parents religion and media were spreading to control the people, like Jesus died because of You, You can not be happy with all the people starving in Africa, Original sin, damnation, devil, the kingdom of heaven belongs to the poor etc. All BS.

All I did was doing a reprogramming of my subconscious mind to erase all that junk, eliminate and replace what was wrong to prevent it. If You ever heard about Auto hypnosis, let me tell you That it works extremely well. I understood what it really means the Law of attraction or the correct name The Law of Belief, because your beliefs are making Your reality. Find a good course regarding reprogramming the mind, something that teaches you to think like a millonaire that focus on eliminate first the wrong beliefs and replace them after, Do not add new beliefs without eliminate first your wrong beliefs because it will create a rejection of the new programming or worst yet, move the problems to other areas of your life. After all this,my Mind took me in autopilot to take a Day-trading course.Best thing I ever did in my life only after the Self-Hypnosis course. I found illumination and finally understood how Rich people make money and buy their FERRARIS and mansion. I realized that working all your life hard will only lead you to poverty when you retire,divorce, unhappiness diseases etc.

The way to make money is to put Your money to work for you. Use other people money, do like the banks, I learned that in the future contract markets, you do not need thousands of dollars, you use the broker's money, this is called Leverage.You need to have money in your account as a proof that you are solvent, This is called Margin call.The broker gives you thousands of dollars and when you make money you cash incredible amount of money. If you believe It is too risky, is because of all the stupid wrong beliefs that was in your damaged mind.Making money in the markets is extremely easy, too easy.

All you need is to be right at the right time.Whoever tells you other thing is because They never trade or invest or they have absolutely no idea how to invest. The markets give and take with great fury,You are responsible of your actions. I made $8000 dollars last week trading the TF only in 3 minutes of my time from my house with a PC and with no work at all. I made $2000 dollars minimum almost every day, that is my goal. Always have a Goal in what you do. Do I always make money?

No.I lose very often but my loses are calculated loses, I calculate my risk.So when I lose money, I know what I may lose, but at the end of the month or the day my profits are bigger than my loses. I see my loses as the expenses you pay in a business, utilities, employees,rent etc.It is no different.People see losing the money in the markets as emotional pain, and expenses as the money you pay in fixings,salaries etc. The business is high risk investment, I do not have to worry about being robbed, about paying lawyers, rent, legal issues,I do not follow schedules,I make money at my home with my PC.Simple. Where can you make $5000 dollars a day?Where can you make $ 1000 dollars in only one trade of 2 minutes? Think it again, How do You think The riches ride their Ferraris? I am working on my FERRARI TOO.(= And it will come sooner than You think. Now You know How the riches Drive their Ferraris! Follow me at http://www.traderofsouls.com to know more about the psychology of trading


View the original article here

Importance of Chart Study to Day Traders

If you are a day trader, one of the most important things you can do at the end of each day is to go back and review your chart and your trades. If you use Ninja Trader or any other popular trading software that allows you to place your trades directly on your chart, be sure to use that option and to spend time studying your charts after you finish trading each day. If you are trying to become profitable for the first time, or if you are simply interested in taking your trading to the next level, this one daily task will help you to improve your trading exponentially! It will also help you to understand why price action alone is the most important aspect of trading.


It doesn't matter if you trade stocks, bonds, futures or forex. Regardless of your market of choice, it is important that you study and review your daily work. What I recommend is that you first go through your chart without your trades visible, and study the best entry points. See if you can figure out why the entry was a good one, and why prices moved strongly after that point. Mark all of these entries and spend some time with them to see if you can find a pattern that you can take advantage of the next time you see it in real time. Save these charts and go back and review them on the weekends and at night.


Secondly, place your own trades on the chart and review all of your entries for the day. Determine what went right, and why. Then you should spend time on the failed trades and see if you can determine why the trade failed and what would or could have prevented you from entering at the wrong place. As an example, did you go short at a strong support area, or did you go long at a strong resistance area? Maybe you were counter trend trading in a strong trend? Were you attempting to go short when you should have been looking for a long entry? In time you will slowly learn why prices react certain ways at certain times and why price action is so important to profitable trading.


The issues noted in the previous paragraph are some of the most common trading problems that lead to failed entries. One of the biggest mistakes you can make is to simply walk away from your trading at the end of the day and not know why you failed or what you could have done differently. Trading is one of the hardest professions in the free world, and regardless of how smart you are, or how high your IQ might be, you will not succeed without a lot of hard work.


Peyton Manning, Tom Brady, Tony Romo and Drew Brees are arguably some of the best professional quarterbacks in the NFL, yet each one spends an inordinate amount of time studying the tape on opposing teams. Your adversary is the market you are trading against and the impulses of the other participants. In order to learn the opposing trader's tendencies and to be better prepared for what the market may throw at you, it is important that you study the tape or charts so that you can improve your winning percentages.


If you are not already spending time reviewing and studying your charts at the end of each day, I challenge you to begin doing this today. Commit to it for one full week and see what a difference it will make in your trading. What you will notice is that you will learn to quickly see the best patterns "after the fact" each day. However, with time, you will slowly begin to see these patterns emerge in real time as they develop on your chart. Once you begin to see the patterns printing in real time, directly on your screen, you are well on your way to improving your overall profit factor. Most importantly, you will gain a strong understanding of price action trading and how to use it in your daily trading.


If you would like to learn more about price action trading, or if you would like to contact the author, please visit http://www.priceactiontradingsystem.com/ today. There you will find additional data and information on learning to trade on clean and uncluttered trading charts using nothing more than price action to determine where prices are headed next. If you are struggling to become profitable, it may help you to change your trading results forever!


View the original article here

Investing With the Pros Vs On Your Own

ON YOUR OWN


The bottom line is this no one cares more about your money and investments than you. That is a simple fact. Another fact is that with life as busy as it is with our own jobs, kids, families, and the many activities that we have one of the things that most people don't possess enough of is time. The ability to dedicate time to educating oneself to the utmost provides a significant factor in whether your investments will produce profits or simply dwindle. So if you are going to take control of your investments you must acquire the right amount of knowledge, and to do that will take time.


This type of education is not found at most universities and really it depends in what market you venture out to invest in whether it be stocks, bonds, Forex, futures, commodities, real estate, gold, silver, you have to do your homework before you invest your hard earned money into such markets. In addition to the right amount of knowledge it is paramount to not put all of your eggs in any one basket, indeed for the very affluent and wealthy who were diversified amongst many different investment types the economic downturn yes hurt their overall portfolios, but not as much as the typical American who may have had a large majority of their portfolio invested in the stock market or even in real estate. So the ability to diversify into different investment vehicles is another factor that will determine one's success.


After education is obtained through property time management and a wise selection of well diversified, non-correlated investments is selected feel free to begin small and then as profits and understanding begin to occur you can gradually increase your investment positions. By following these guidelines your probabilities for success increase substantially, one additional item that helps is experience simply having experience especially with an investment that does not do so well can provide incalculable benefits to the average investor.


However, for most people this is an extremely difficult task and as such it is worth looking at Professional services and what advantages they may have over doing it on your own.


PROFESSIONAL SERVICES


Some of the same keys to success for managing one's investments on one's own are some of the same reasons that Professional Services can often perform better than doing it on your own. A Professional may have significantly more time and resources to dedicate to managing investments than the average person. A Pro may also have obtained knowledge that can only be acquired through time and experience that will increase the odds to making profitable decisions.


What must be demanded of any Professional service with respect to Money management is that the manager provide complete transparency. Because even if an Investment Advisor or Money Manager is licensed with the appropriate financial regulators there is no certainty that the account statements being provided are legitimate at all. As such the opportunity to work with someone who is simply a Trading Advisor who has a limited power to simply manage funds, but not actually have power to withdraw them or touch them is a more transparent and advantageous scenario versus just giving someone your money to invest (i.e. Bernie Madoff.) Trade Advisors will be approved money managers at Financial brokerages and the brokerages provide the sole service of acting as a check and balance for accounts including monitoring unscrupulous money managers as well as terrorist funding and money laundering. So dealing with an Advisor who works with a broker can bring the transparency and the control that is so important to have with investing.


To conclude a combination of investing on your own as well as utilizing Professional Advisors who provide absolute transparency and a solid track record can bring you overall growth and profitability with your investments.


Leo Kanell is Chief Investment Officer of FX Diversified. With knowledge and experience in a vast array of businesses from import/export, online marketing, consulting, real estate, and investing, Mr. Kanell provides a unique point of view when it comes to managing decisions and risk with FX Diversified. Top priorities are diversification in Forex, management of risk allocation, providing clients transparency, and liquidity in a unique Investment realm. More info can be found at http://www.fxdiversified.com/


View the original article here

Japanese Candlestick Trading

Candlesticks provide unique visual cues that make reading price action easier. Selling and buying with Japanese Candle Charts allow speculators in an effort to better comprehend market sentiment. Offering a greater depth of information than traditional bar charts - where the high and low are emphasized - candlesticks give emphasis a good way to the relationship between close price and open price. Traders who use candlesticks may more quickly identify different sorts of price action that tend to predict reversals or continuations in trends - one in every of the most difficult aspects of trading. Also, mixed with other technical analysis tools, candlestick pattern analysis can get a very beneficial manner to select entry and exit points. The body of a candlestick illustrates the difference within the open and closing price. Its color (usually, red for down and blue for up) shows even if the day's (or week's or year's) market closed up or down. The wicks (or shadows) spot out the extreme low plus the extreme high price for the currency that day.

For the body of the candle is thicker than the shadow, candlestick charts visually stress how the close price relates to the open price far over than bar charts. Candlestick traders have a saying; the real body can be the essence of price movement. Bar charts within the alternative hand allow spikes which will highs and lows to have prominence when exploring their data, these highs and lows often represent market noise, much less significant to good analysis. The power of candles is their ability to visually check out this static and focus on what the market was able force price a good way to do during a stage of trading Slight of the trading pit, Technical Analysis is honestly the only way to gauge market emotion. A candlestick alone does not give much information useful to determining market sentiment. Market professionals do however look for specific patterns of candlesticks in an effort to gauge future price movements. Most of these candlestick names have eccentric names like Morning Star, Dark Cloud Cover or Engulfing Pattern that are based translations as in their Japanese names. The names also tend to reflect market sentiment. Among the many most significant goals of technical analysis is to identify changes in direction of price action. For candlesticks give insight into what the market is thinking, one of several most useful aspects of candlestick result is its ability in order to suggest changes with the sentiment of the market place. We call these candle formations Reversal Patterns.

You can find a number reversal patterns in western technical analysis, an example as Head & Shoulders and Double Tops. Those formations often don't give much insight into what the market is wondering, they look simply represent common patterns found in price action that precede a problem. Reversal patterns in western analysis often take many periods to form. On the another hand Candlestick interpretations concentrate greatly more on understanding market psychology versus the rest. And since the vast majority of Candlesticks formations last the best in an effort to three time periods, these give traders more using a real time picture of market sentiment. Essential to note is that using candlesticks a reversal pattern does not necessarily suggest a complete reversal in trend, but merely a change or pause in road. That could mean anything from a slowdown in development, sideways trading after an established trend, and a full turnaround next a reversal candle prototype.

Continuation patterns suggest the market will maintain an established trend. Often the direction of the candlesticks themselves are from the contrary direction of trend in continuance. Continuation patterns help traders differentiate between a price action that are within full reversal and those merely applying an intermission. Most traders will be inform you there becomes a time to trade and a time to rest. The formation of continuation candlestick patterns imply consolidation, a time to rest and observe. Candlesticks work as valuable insight into the market. Most candlestick analysts believe though; try not to use them as your sole technical analysis tool. These patterns are often made irrelevant by technical analysis events outside of what candle formations can tell you. The most prominent candlestick analysis proponents during the West use these ways in an effort to confirm traditional western technical or fundamental analysis techniques.


View the original article here

Learn How the Financial Markets Really Move

Have you ever wondered why so many so called experts call the market incorrectly?

Many experts rely on other experts to indicate a general trend and what then follows is a herd mentality which is then reflected in articles and press reports that you read in your newspapers and elsewhere. Of course there are exceptions to this and some experts really do seem to have an incredible knack for calling the market whether it be for the market to move higher or lower.

Some experts rely on fundamentals which include the underlying strength of certain high profile sectors and companies in order to derive a feeling for the general market direction.

While other experts rely on technical analysis which attempts to predict certain trends believing that once a trend is established it often continues for a considerable time, allowing traders to profit from these trends.

There is no doubt that both approaches have their merits and often they can correlate making both fundamentals and technical approaches appear correct. However which would you opt for?

If you actually start to look at the technical side there is no doubt that history does seem to repeat itself over and over again leading to numerous opportunities to make money from the markets. Next time you take a look at a chart of any market, see if you can find a certain month or period of the year when the market rises or falls on a continuous basis, you may be surprised by what you will find.

One classic example is if you simply invested in the market every November to April period and repeated this year after year you would have truly outstanding returns. Another classic is trading or betting that the market on the first trading day of the month will close higher.

This strategy alone has a remarkable success rate for many markets including the Dow Jones with a total of 4000 points won over the last 13 years on just that single day.

There are a number of products ideal for taking advantage of this type of trading with fixed time periods and fixed amounts to be won and they are simply known as financial fixed odds and binary bets / binary options.


View the original article here

Learn How to Make Binary Trading Profits

Learning how to trade the financial markets including some of the world's major indices like the Dow Jones, FTSE100, S&P500 and Dax and Forex markets such as the British Pound and US Dollar can to a newbie seem somewhat daunting and above all, risky.

The main reason for this is due to the popularity of products such as spread betting and futures which offer at least on paper the potential for huge returns. However in reality they are totally inappropriate for a new trader. If these products were cars for example and you were a new driver, it would be like you having to drive a high performance sports car immediately after your test. Although on paper it may be hugely enjoyable the risks of you losing control and crashing would be very high indeed. Likewise in trading, futures and spread betting are highly leveraged products which expose you in theory to an unlimited loss.

Of course there are stops that you can deploy to avoid disaster but even these can be vulnerable in highly volatile markets.

So what is suitable for a new trader?

Well simply there are some excellent products available under the names of Binary Trading (Binary bets - Binary options) and Financial Fixed Odds. These products have become more popular in recent years and really are an excellent choice for new traders and even those more experienced.

The reason why they are such an excellent choice is very simple. These products deal with a fixed amount won or lost which is known from the outset. This simply means that you will know from the start of your trade the absolute maximum you will lose if things go against you and the amount you will win.

These means protecting your account becomes much easier.

Here's how binary trading is the safer, better option:

Let's say you wish to day trade and you think that the market on this day is going to rise overall.

You open a binary bet / binary option and are quoted a price of 48 for the Wall Street (Dow Jones) market to close higher for that day, for example. You decide to risk $10 per point. Binary bets work on a price of 0 - 100 which means that if you win, you will earn 52 x $10 i.e. ?520. This figure is the 100 points - 48 (cost of the bet) x the amount of your stake, (being ?5).

Now let's instead say we opened a spread bet or futures trade and the market stands at 10200 and again you choose to risk $10 per point, expecting the market to rise. For every point the market moves up you gain $10 and for every point the market moves down you lose $10. Let's also say you place a stop at 10000, just in case the market should move down, against you.

With the binary bet you need not care how far the market moves one way or another. All you need is for the market to close higher by the end of the day to win.

With the binary bet you know your maximum win being 52 x $10 = $520 and your maximum loss is 48 x $10 = $480.

The spread bet is a different story; your whole level of profit or loss is totally dependent on how far the market moves during the day. If the market, for example, dropped in early trading and you hit your stop at 10000, that would be the end of your trade and you would have lost $2000 (i.e.: 200 point drop to your stop x $10 per point.)

Even if the market did close higher without hitting your stop first and closed at 10220 your win would still be less than the binary bet, as your win would be 20 x $10 being $200, whereas the binary bet would win $520.

So it's easy to see why Binary Trading with binary bets and binary options offer an excellent starting point for new traders.


View the original article here

Learn How to Reduce Your Trading Risk With Binary Betting and Binary Options

Markets often move remarkably quickly and this volatility especially in uncertain times can leave new traders with massive losses.

There is of course an excellent alternative in the form of financial fixed odds trading and more especially products such as binary bets and binary options.

Although they are relatively new to the world of trading they are now becoming recognised as a real and viable alternative to derivative products like spread betting and futures and here are some key reasons why.

Firstly products such as spread-betting or futures are open to unlimited losses, hence the need for stoplosses. The problem with this, of course, is that in volatile, or even fairly moderately moving markets, if your stop is hit your trade ends often with a significant loss. You don't want to place your stop too close to current market action or too far away which is often a very difficult balance to strike.

With binary bets / binary options you don't need to bother with stoplosses at all. Binary trading products protect you from any volatility as the amount you win or lose is known from the outset of the trade and cannot change. Yes let's just repeat that, it doesn't matter how much the markets move against you, you can only lose the agreed amount.

Secondly binary bets and binary options require a low account size, often a fraction of a leveraged account like a spread betting or futures account.

Thirdly these products can be applied to many of the major world indices over time periods preferred by the trader. So a binary bet / binary option can be placed for a single day, a week or longer with indices such as the: FTSE 100, Dow Jones, Hang Seng, Australian Index to name just a few. They can equally be applied to Forex, Commodity and Share markets.This makes them very flexible.

Finally binary trading products allow you trade per point like spread-betting and futures but without the higher risk as mentioned before.

If financial fixed odds trading and more especially binary bets and or binary options are something you would like to learn more about then please visit elmtrader who provide learning and system products covering financial fixed odds products.


View the original article here

Learn Six Reasons Beginners Can Now Take Up Trading on The World's Financial Markets Fast

So you know your nest egg can no longer offer you the retirement lifestyle you had hoped for and are joining the fast- swelling ranks of newbie market trading investors, but you are over-whelmed by the sheer scale of investment possibilities out there, or don't know where to start. The good news is that help is at hand with a new and simple market strategy that even an absolute beginner can learn.


Binary Trading a major player in the financial fixed odds betting industry allows you great returns on your investment, and also allows you to maintain sound money management and thus risk control management of your trading account - vitally important for any new investor wanting to build their portfolio.


If seasoned market professionals are flocking to binary betting because of the benefits of financial fixed odds it offers, there are definitely benefits for you.


So why tap into this hugely growing trend for trading the world markets with binary betting now? Here's six good reasons:

A winning combination of low risk tools with relatively high rewards.Forget complicated options and derivatives, binary bets offer ease of understandingPredictability: They work on the same easy principles of betting on horses; you know the odds at the start; Knowing the outcome of winning or losing before obtaining your position, is what makes financial fixed odds betting particularly easy for those still learning market speculation. Predictability allows for forward planning of building capital and revenues.A highly flexible methodfor anyone trying a few strategies; use these financial fixed odds with: forex trading, commodities, shares and in trading all the world major indices, including: FTSE100, Dow Jones, S&P500, Hang Sengand more.Binary trading on the world markets involves tax free earnings, making it worthwhile investing your time finding out more compared to other investments you may consider.You can resell your position and take your earnings early, unlike for example, traditional sports betting.

How the binary bet works is as follows: you make a bet in the belief that a particular index will either move up or down from where it is now over a given period. It's as that simple. This is only one strategy amongst many other choices with this system, however.


As the saying goes in market trading: "The trend is your friend". Be confident you are making the right investment decision by taking a leaf out of the lucrative investment portfolios of some of our clients in the market trading business and invest in tools and training to learn how to best take control over your financial future, thereby minimising your exposure risk.


Contact Elm Trader on this link today for more information about how you too can benefit from this powerful new tool for building your wealth portfolio.Would you like to learn more about Financial Fixed Odds and Binary Trading and receive your own Free Trading System?


Simply visit us now at http://www.elmtrader.co.uk/


Neil is a writer and trader who runs the successful Elm Trader site.


View the original article here

Learning How to Daytrade

Around a year ago, I was wondering and trying to find new ways to make money. After doing countless research on my own, I decided to start investigating the markets.

There were too many doubts about these new world to me, and also too many fears as well, but the desire of overcoming my necessities led me to keep digging into this fascinating world. In my mind, I used to have the common misleading belief, that the markets are too dangerous and only reserved to the rich people. If you like me had that belief, let me tell you that it is absolutely wrong.

That's was when i decided to start setting my mindset, that search for the money, took me to find the reasons why people do not succeed in life. Only after setting my mind, I was ready to start developing the methods to make money. I personally suggest you, that if you are going to do something, any discipline in your life, first of all set your mind.

Conquer your fears, conquer your subconscious mind.Reprogram your subconscious mind. If you don't, You will fail. Over and over again. How Can you do that?The best way I found was self- hypnosis. But let me get back to the psychology issue, which is the reason why you will succeed or fail in this world, or any other world. Only after you conquer your subconscious mind, only then find a method, an edge that teaches you how to read the charts,how to place the odds on your side.That is the only difference that successful traders have and professional gamblers, over the common mortals. They know the probabilities and when they are in their favor, they act. Remember, don't jump to start trading after you learn your method, or you will find yourself donating more than a non- profit institution. It took me over 10 months to start going live.

Thanks God, I took my time learning the personalities of the markets, but more important, My own personality. Trust me, You will learn more of yourself, than any mirror can show to you. In the end, I totally bless the day I start day-trading. That is the true way to create Wealth without working, it is just play.No long hours working for someone else for a fixed salary. Remember, Don't believe or follow the fearful people, the biggest enterprises were created by people, who were not intelligent enough, to understand that those were impossible.


View the original article here

Making Money in Today's Market Environment

Each day I am amazed as to how many people out there truly think they can predict the direction of the market. I read investment articles and investment blogs each day where traders spend countless hours researching and putting together very good thoughts on the stock market. Some of these traders do this with a bit of success however most will dwindle back into obscurity before the next market cycle.

TAKE CAUTION - As I read most of these articles I really see no basis for making an investment with the exception that "this trader has a great track record". I try to remind everyone that investing is not picking stocks however investing should be based on a viable STRATEGY.

CONSIDER THIS - Convertible bonds have been around since the early Roman times when early entrepreneurs financed their ventures with convertibles. The recent innovation to this strategy has been a strategy known as convertible bond arbitrage. This strategy allows investors to benefit in the upside potential of a company without the assurance of a fixed income stream from the fixed income component. With a proper hedging technique, traders are able to take advantage of the downside of the underlying equity as well.

TODAY'S INNOVATION - In today's environment with the prolification of derivative securities most any trader at home can take advantage of this low volatility approach to investing. With the use of OTC options contracts, we can actually create a Synthetic Convertible Bond and then simply use the same hedging technique as the major hedge funds.


View the original article here

Management Of Capital And Risks

In order to make profit at any financial market, it is necessary to have the theoretical skills, experience and the trading strategy, which includes:


* Fundamental analysis;


* Technical analysis;


* Management of capital and risks.


Fundamental analysis allows to define the currency rates' dependence on countries' economical situation, explains purposes and implements of central banks' financial policy, detects ratio between various financial markets, and the reasons of their ups and downs.


Fundamental analysis is used for medium- and long-run predictions, and estimates market's perspectives. It is based on inter-related fundamental economical factors. The difficulty is that changing one of such indices may affect other, which runs to 20-50 for every state. Therefore the fundamental analysis isn't adjusted by the majority, only 10-20% of traders go to it.


Technical analysis includes examination of price charts, price history and number of quotation changes during a certain period of time. The ease of use the tech analysis lies in fact that data on cost are readily available on-line. In general, technical analysis provides information about market activity and only nominally about the volume, considering merely short periods of time, which are called time-frames.


Management of capital and risks is the third aspect of trading system, which is not less important than the previous. Financial operations on Forex are risky, and in mostly, the higher the suggested income, the higher the risk. Following the management of capital and risks rules allows to lower losses and to increase profit.


Management of capital and risks originates in 18th century, when it was used relating to the gambling, to increase chances to win. Experienced gamblers kept their own strategies, waiting till periods of loss are over, to earn more later. The work at the financial markets partly is similar to gambling, since both profit and loss are carrying probabilistic character, therefore management of capital and risks principles have been used in financial area also.


Very often novice traders don't pay attention at seriousness of management of capital and risks aspect, and in most cases its neglect may lead to deplorable results, even with the presence of good trading strategy. Not only the trader's earnings are vital in trading, but also the amount of money which he doesn't lose in the process of work. And so, to the trade successfully evolved, one should take into account the share of capital used in the transaction, which runs a risk.


View the original article here

Multiple Time Frame Price Action - Reveals 5 Critical Keys For Success

Most traders would concede that the number one fact of trading is price action. Price action is always right, therefore if you trade against price action for any reason you will lose money. Don't get trapped like so many traders into relying on moving averages, ADX, or a whole list of other indicators that introduce significant amounts of lag into your analysis. When traders rely on these lagging indicators and ignore the fundamentals of trading based on price action, profits are greatly reduced. Remember, price action is the single most important trading fact. Read on to discover the 5 critical keys available if you use multiple time frame (MTF) price action in your trading.


# 1 - Interplay of price action of 8 different time frames at once.


Try the old methodology of flipping through 8 different time charts and you will quickly see that approach isn't very practical. Imagine the quantum leap in your trading advantage when you can visually see the price action interplay of 8 different time frames all in one graph. This is the only viable approach for using MTF analysis.


# 2 - Market Modes.


The interplay of these 8 price action lines show the current market mode:

MTF trend mode will be displayed when the 8 price lines start fanning out much like a moving average ribbon indicator fans out. During the trend mode you only want to enter trades in the same direction as the trend. MTF consolidation mode will be displayed when at least 6 or 7 price lines are very close to each other. During a MTF consolidation you will want to set up both a long and short breakout type trade entry. MTF counter trend mode will be displayed when 5, 6, or 7 price lines are an extreme distance away from the daily price line. When this occurs you have a MTF counter trend trade setup.

Knowing which market mode you're trading is critical to identifying the proper trading setup for making profitable trades.


# 3 - Support and Resistance.


A potential trading range is signaled when the 5 minute price line pulls back inside the other 7 price lines. The support and resistance zones for this trading range will be at the 60, 120, 240, and/or daily price lines. Since real-time support and resistance occurs where the higher time price lines are, you will know in advance where real-time support and resistance zones will be. This is powerful trading since knowing where support and resistance zones are is critical to knowing how to properly manage your trade entries and exits.


# 4 - High Probability Trading with Low Stop Loss Risk Entries.


It is a fact that the higher the time frame chart you trade on, the higher the required stop-loss amount you will risk per trade. This is why so many authors teach a MTF approach where you determine the trend direction from the daily charts, get the trade entry signal from the 1 hourly chart, and then use the 5 minute chart to make your trade entry. Why mess with three different charts when you can do it all on a single 5 minute chart? Just use the 5 minute chart to make your entry and use the multiple time frame price action indicator to see the higher time frame price action with the added bonus of knowing the market mode and where support & resistance zones are located. Trading the 5 minute chart will reduce your trade risk to one tenth the risk amount vs. trading on a daily chart.


# 5 - Multiple Time Frame Reversal Trade Setups.


You've probably heard that you can't pick market tops and bottoms. This is true when you're using a single time frame approach, yet when using multiple time frames it is very doable and leads to very powerful reversal trade setups. These MTF reversal trade setups are when 6 or 7 price lines are an extreme distance away from the daily price line and then the 5 minute price line pulls back into the support and resistance zones. These support and resistance zones are at the 60, 120, and 240 minute price lines. The trade entry trigger is when the 5 minute price line breaks through these key support and resistance zones, heading toward the daily price line. These MTF reversal trade setups are powerful trading opportunities.


The above 5 critical keys reveal why the MTF Price Action Indicator is the single best TradeStation indicator you can use on your trading charts.


For more education about each of the these 5 key aspects see the detailed articles provide at this link: http://ezinearticles.com/?expert=Mark_David_Johnson%20


Mark David Johnson is a full time TradeStation programmer, trader, and trading coach at CustomizedTrading.com. He has personally developed over 60 strategies and over 200 indicators for the TradeStation platform. Mark's passion is to match his client's trading style with the best possible trading tools for them. Mark started his trading career as a licensed commodity trading advisor in the late 1970s. He was offered a full time position in a medium sized futures broker in Chicago, but chose to take another career path while continuing to use the trading information for his own use. From 1990 through 2005 he did extensive amounts of trading using long term trading styles with the average trade position spanning from months to years long. In 2005, Mark could see the oncoming financial turmoil and liquidated 90% of his portfolio. Mark spent the next year and a half studying day trading full time, and since 2006 he has been full time trading and programming using the TradeStation platform.


View the original article here

My Day Trading Strategy

My trading strategy is for directing me to find the right stocks each day; to perform proper due diligence analysis; to look for the best potential stocks for trading which have relatively smaller risk and greater reward; to decide on the size of entry position so as to know my maximize potential risk; and to determine where I should enter and exit a stock in order to minimize my loss when my initial prediction of stock direction is wrong and to maximize my profit when my initial prediction of stock trend is right.

Take a look at my trading strategy below. You are welcome to comment on it or add your own thoughts.

Step 1. Fill out the stock watch list from market news subscription;

Step 2. Identify stocks that have trending setups;

Step 3. Determine if trending stocks have a support or resistance level;

Step 4. Analyze how big the risk and how big the rewards are;

Step 5. Calculate the reward/risk ratio. Determine if it is greater than 2;

Step 6. If reward/risk ratio is greater than 2, determine position sizing;

Step 7. Enter position with size determined in Step 6;

Step 8. Immediately set stop loss at determined risk level;

Step 9. Actively manage the position in the preliminary stage. Prevent stock from going against to the risk level;

Step 10. Once the stock becomes risk free, periodically move the stop loss to 10 exponential moving average (EMA) level;

Step 11. Get out half of the position when stock approaching to the targeted price;

Step 12. Exit all when stock reached targeted price.


View the original article here

Open Interest On Stock Options

Open interest in options trading is the total number of option contracts that are still open. This means that no options have yet been exercised, nor have any been closed out by an offsetting transaction. Open interest is also known as the count of how many option contracts exist for the specific combination of underlying stock, expiration, and strike price.

Open interest differs from an options volume in that the volume refers to the number of options that are traded during a given period of time. Therefore, an options volume will reflect the number of options contracts that have changed hands from a seller to a buyer, regardless of whether the option is a new or existing contract.

As a call option investor, more open interest is better. The reason for this is that there is more liquidity for the call option that you are trading. More liquidity essentially means that there are smaller spreads between the bid price and the ask price. This is a positive for you, as it will be beneficial should you need to close out your options position prior to the expiration date of the option.

Unlike shares of stock where there are a fixed number of units, there is no fixed number of option contracts. This means that there could be zero, or there could be several thousand, as new contracts are created all the time. In fact, there is really no limit to how many option contracts can be created and sold, as long as there are buyers for them.

The important thing to remember as a call options trader is that you should stick to selling options that have an open interest of at least 1,000. Staying with this rule of thumb can keep you invested in options that are fairly liquid and that should have reasonably tight spreads.


View the original article here

Options Trading Strategy - Choosing a Trading Platform

As internet technology and data transfer speeds have improved over the last ten years, investors using options trading strategy have almost universally employed online stock trading platforms. These web-based interfaces have become quite commonplace for the individual investor. Many of us likely remember the days of actually placing a phone call to a broker to place trades, but this seems as if it were decades ago with recent progressions.

Now with the click of your mouse, you can place buy and sell orders right through your trading platform of choice and have orders executed instantaneously. However, when choosing a trading platform, you'll be faced with a myriad of options. Many stocks and options trading platforms "specialize" in certain quadrants of the market such as forex trading or options trading strategy.

Here are a few factors to consider when choosing an internet trading platform for your options trading strategy:

Fees and commissions

This almost goes unwritten, but the lower the fees and commissions charged by the trading service you choose, the more profits you will retain. You will need to determine all of the fees involved in the account prior to setting it up such as order or transactions fees (the charge for each order placed), account maintenance fees, minimum account balances required, and margin rates if you plan on trading margins (loaned capital) on your account. Additionally, many online brokerages charge additional trade fees for times that you require broker assistance with an order. Be sure to determine this prior to activating an account as some of these trades can be relatively expensive.

Types of investments offered

Again, many online trading platforms offer one type of investment but not another. If you're interested in options trading strategy specifically, you'll want to be sure to choose an online broker that offers this service.

User interface

Every online brokerage offers a different trading platform. Try out demos of the services that you're considering. You'll spend a lot of time using the particular user interface and functionality that your chosen brokerage offers and you want to make sure that it's intuitive and functional, allowing you quick access to trade execution modules and market information.

Educational resources

Most online brokerages offer a wealth of information that is included in your service. This includes beginner articles, such as information on basic options trading strategy, as well as advance exploration of market and economic topics.

Customer service and technical support

These topics should almost be separate, but do not be afraid to place several emails or even phone calls to prospective online brokerages prior to signing up to determine the level of service that they provide to clients. You absolutely need quick access for technical and trading issues during the daily trading hours. Ask for or attempt to develop a contact within the company and try to gain access to a direct phone number or email address during this trial period. This could come in very useful if you're ever in a bind.

Mobility

This has only recently evolved as a consideration when chose an online brokerage, but wireless network speeds have increased over the last three years and mobile devices have adapted to include more robust data processing capability. If you plan to trade with your mobile device, you'll want to determine whether or not your prospective online brokerage offers a suitable trading platform for your device.

While there are literally hundreds of choices for online trading platforms on which to execute your options trading strategy, with detailed due diligence, you will undoubtedly find the right partner for your trading. Do not rush through the process and you'll be sure to find a trading partner that will be best suited for achieving your financial goals.


View the original article here

Picking Profitable Penny Stocks - 3 Basic Fundamental Tips to Pick Money Makers

Penny stocks are a high risk but certainly high reward investment. When you pick a winner and the shares begin moving, gains can increase hundreds of percentage points. Of course you can lose as well. Picking winners is simply a matter of analyzing the right aspects of each company you want to invest in.

So just how do you find these great picks? If you will be doing your own research these 3 basic fundamental parameters are important in determining if you should pursue a penny stock further.

1. Company Should Have Increasing Revenues

Look for: Quarter over quarter increasing revenue shows that a company has a strong operational plan. Perhaps they are gaining market share. This is a good sign. This information is easily found on the companies financial statement. A bad sign is when a company has expenses increasing as revenues increase, or simply decreasing revenues.

2. Company Should Have Improving Earnings

Look for: A good sign is positive net earnings for consecutive quarters..the more the better. Earnings simply measures the amount a company makes above what it spends in operation costs. Only about 15% of penny stocks actually have positive earnings after all the smoke clears. This is net earnings were talking about...not earnings before interest, taxes, deductions and amortization.

3. Company Should Have a Competitive Advantage.

Look for: Companies that have an overwhelming advantage in their niche or industry whether in operations, supply chain /distribution, location, or intellectual capital. A good sign is if the advantage is sustainable and not easily duplicated.

If you don't like to research you can use a stock picking service that has a strong track record and is reliable and accurate. I would recommend tracking the picks you receive before spending any of your own money.

Believe me, whichever way you choose, whether you do your own research or use a penny stock picking service, revenues, improving earnings and competitive advantage are critical to making money in penny stocks.


View the original article here

Spread Betting: Find Out If It's For You In One Minute

Financial spread betting is fast becoming a really useful additional tool for financial investors to take advantage of the financial markets.

Spread betting involves taking a position on an individual market instrument and what it will do next. If you think, say a share, is likely to rise then you would buy (go long), if you think it will fall then you would sell (go short). The amount the market moves in your favour determines your profit or less.

The spread betting company will provide you with a spread which is the difference between the buying and selling price, also called the bid and offer prices. So the spread is a range of outcomes and you simply bet on whether the outcome of the event over will be above or below the spread.

There are three main advantages of spread betting.

Leverage. You are not actually buying the physical asset just taking a position on its future price. Therefore, the spread betting provider only asks for a small deposit, around 10%, on every position you take which means you can take the equivalent position you would in the real markets for less money up-front.

Tax-free profits. At the moment, in the UK, you don't have to pay stamp duty or capital gains tax.

Access to markets. Most financial spread betting is done on powerful online dealing platforms that give you 24-hour access to the global markets. You can back a huge range of products such as pork bellies, gold and Apple shares and there's no need to call a broker up to arrange the trade for you.

Sounds too good to be true? A word of warning, profits can be substantial but you can also lose a substantial amount of money too. Another word of warning, trading is addictive and can provide significant emotional highs and lows. You must have a plan for every trade and you must be ruthlessly realistic and know when to get out if it doesn't work in your favour.

A good way to start spread betting on the financial markets is to choose a product such as copper or shares in a certain company and make sure you learn as much as possible about it and chart its progress over a given time period.

This will give you an introductory insight into what kind of events will influence the price of your chosen product over time.


View the original article here

Stop Worrying About Your Trade Positions, Be Confident and Win

It is normal for humans to be worried or be anxious of things that concern them. Just like in trading, it is inevitable to worry about your trade positions. Worrying about your trade positions will not do anything good. Why not just take a credible and time tested trading system to erase all those worries?


Worrying brings many adverse effects including unexplained body pains, sleeplessness and loss of appetite. It does not only lessen your enthusiasm but it also kills your joy. It does not only make your day gloomy but it also intensifies the difficulty of your problem instead of solving it. Worrying steals the peace of your mind and heart. It only diverts our attention to things that should not be paid with time. It only consumes too much of your energy in just useless and irrational fear which is very impractical.


If you are investing in the stock market and suddenly predict that you are going to incur great loss due to some inconsistencies, it does not do any good to fear and worry on such situation.


Worrying will never become a solution to the problem. As a matter of fact, it will become a part of the problem. Why spend your time unwisely if you can use effective strategies to get to the bottom of your circumstance? Avail of a trading system that can get you out from these worrying sprees. With the use of a time tested trading system, trading success is at your fingertips.


There are many strategies out there to help you prevent money loss when you trade. There are available tools created by excellent experts that you can use. Trading systems abound the internet. Through these tools, you can increase the probability that you will accumulate money from your investment. Your investment will be in a secured state and at the same time, your day will no longer be gloomy and empty but full of happiness. By using such tools, you will no longer worry about your finances because you feel secured that everything will be alright through these. The real challenge is finding a really credible trading system. Not all trading systems are the same.


There is one tool that is very effective that was formulated for 20 years out of rich experiences in the trade and planning.


This tool provides secrets on how to be a success on the stock market even in times of recession. So stop worrying because this tool will give you a full-blast knowledge about advanced techniques in playing with the stock market.


This will not help you at all if you do not try it and just dismiss it as another one of those programs


http://protrades.info/ will assist you to better results.


Hello and welcome to all, I am a Franchise Owner, Company Director, and firm believer that there is a better way.That better way takes a lot of time and study to find but definitely makes the journey more enjoyable.I currently own 6 Websites and a lot of Domain names which I am in the process of getting operational.


View the original article here

Swing And Day Trading Strategy: Using Swing Trading Together With Day Trading

Swing trading (also known as momentum trading) exploits price uptrends or downtrends by entering the market during brief counter-trend pullbacks to ride the trend's momentum. Swing trades can be held for only hours, but more often days and weeks until a trend is played out.


Day trading instead uses minor price fluctuations each day. So you might think that the main difference between day trading and swing trading is the timeframe, right?


After all, swing trading seems like a longer-term form of day trading. They share many of the same principles such as

Going long or short the market as neededQuickly freeing up your capital for the next tradePicking more losers than winners to ensure a profitable strategy, and so forth

That's correct except there's one very big difference:


Some of the best day trading opportunities come from counter-trend trading whereas swing trading must always go with the trend.


Does this surprise you? I hope not, because this is how I get my day trades closed out so quickly on most days.


1) I examine the overnight trend in the market
2) Assign specific criteria for when that trend should be exhausted, and then
3) Jump in at turning points for a quick profit


Since most of these pullbacks occur before lunchtime here in Florida, I'm normally done my day trading by that time and therefore free for the rest of the day.


Of course, I look at the bigger, longer-term picture and take the opposite view (trend vs. counter-trend) for when I enter and exit profitable swing trades with the same 75% accuracy. But my swing trades are fewer and farther than my day trades and normally last for several days (sometimes as long as three or four weeks).


Together the two methods synchronize very well to produce a powerful winning trading strategy.


Find out more on this topic with a free professional traders e-course including 3 special reports and a 25 minute video. Click the link below...


Get the Free E-Course Now


Brian Heyliger is a successful futures day and swing trader who specializes in the e-mini S&P, Treasury Bond and other high-probability, high-profit markets.


View the original article here

Swing Trading And Day Trading: The Key Differences Explained

Swing trading is sometimes known as 'momentum trading' because it takes advantage of price uptrends or downtrends. To get into a swing trade, you're typically entering the market during brief counter-trend pullbacks to ride the momentum of the original trend.

Swing trading is not high-speed day trading which seeks to exploit minor price fluctuations each day. Instead it seeks to capitalize on medium-term breakouts after a period of consolidation or correction is complete.

A swing trade is typically held for days or even weeks as a given stock, stock index, futures contract, etc. makes higher highs or lower lows.

Swing traders go for the "meat" of the move and then get out again. Hitting the exact high and low of the move isn't important, though. The middle range is enough, and that normally takes a few days or weeks to unfold.

So in effect, this kind of trading is a hybrid of the slower pace of buy-and-hold investing and the accelerated potential gains of day trading. When done well, swing trading will build your equity considerably more quickly than 'buy and hold' investing for the following reasons:

1) You can go long or short with equal bias (you're not blinded to see only one side of a given market), and
2) You can turn over your money more quickly to take advantage of a new trend as it materializes

An additional advantage is that it works well for part-time traders, especially those trading while at work. After all, many workplaces will place software or website restrictions on their work computers.

Even if you work from home, you might be too busy with other work to do day trading. So while day traders typically stay glued to their computers for hours at a time, swing trading doesn't require that type of dedication.

Find out more on this topic with a free professional traders e-course including 3 special reports and a 25 minute video. Click the link below...

Get the Free E-Course Now

Brian Heyliger is a successful futures day and swing trader who specializes in the e-mini S&P, Treasury Bond and other high-probability, high-profit markets.

Article Source: http://EzineArticles.com/?expert=Brian_Heyliger


View the original article here

powered by Blogger | WordPress by Newwpthemes | Converted by BloggerTheme