Future options trading-a term many may attribute to the vocabulary of Wall Street, willingly leaving this financial move to the professionals. It is common for portfolios to include investments like stocks, bonds and mutual funds; but options are another type of financial instrument that opens the door of opportunity. Option trading can help investors leverage their investments, portfolios and risk.

An option is a contract whereby the buyer has the right to purchase a particular asset at the agreed upon price and by a specified date. It is merely an option to make the purchase, not an obligation. Futures are similar to an options contract, but focuses more on the commodities market, in that the "asset" is something not yet produced. This might include corn, oranges, wool or cotton, for example. Future options were mainly created for the agricultural industry to provide farmers a guaranteed price for their crops, but it has now expanded to other financial instruments like bonds, securities and currencies.

The advantage to options is that the price is locked in regardless of future market conditions, though this can also be a disadvantage in times when the market flourishes. The price agreed upon in the contract is not dependent upon market conditions. The ultimate goal in options is to secure a price in hopes that the future market will fluctuate in a way that makes the price profitable. This is not always the case because of the unpredictability of the market, but is the primary motive behind future options.

Options can be traded like stock, hence the phase options trading. Option trading is simply the process of trading options through a broker who is responsible for helping the trader exchange their options contracts. The platforms used for this trade are called exchanges, six of which are located in the United States. Commodity future option trading is somewhat more complicated but follows a similar process. The difference with commodity option trading is simply that it is the selling and purchasing of options contracts regarding commodities, as opposed to hedges, stocks or the like. Options in general can be risky, but also very profitable. The high risk can certainly result in high reward, but knowledge is key for anyone new to this investment market.

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In my view the best strategy for binary option trading or binary bet trading as it's known in the UK is to trade weekly.

The ability to trade or bet on the outcome of a weekly move in a popular market can be hugely rewarding and relatively easy to do. Rather than trading during the day or even trading on a daily basis why not take a slightly longer view and trade the week.

Simply take a view on the market you like to trade as to whether you expect the market to rise or fall over the week. You will be given a price on a scale of 0 - 100, in this case normally around 50 as the odds for a market to rise or fall are more often than not simply 50 / 50. You don't need to worry about stops or any kind as the amount won and or lost is known in its entirety from the outset of the trade. Even if the market fell over a 1000 points in the week you could only lose the amount agreed normally around 50 times your bet per point.

In the next example we show why you should consider binary options and or binary bets for your trading.

Let's say over the coming week we expect the market to rise and we are quoted a price of 48 and we decide to risk $10 per point. Now if we are correct and the market closes higher on the week we will win 52 times $10 being $520. If we lose and the market closes lower, the maximum we can lose is 48 (the cost of the trade) times $10 being $480.

Now if we adopted the same scenario using spread betting or futures we would need to give the market room to breathe during the week and would most likely place a stop, say 200 points away from entry.

We could only improve on the binary trade above, if and only if, the market closed 52 points higher on the week. In fact we could do a lot worse. For example if the market fell early in the week and our stop was hit using spread betting or futures our loss would be 200 times $10 being $2000. Whereas with the binary trade the trade would remain live and we wouldn't care what the market does in the early part of the week all we are interested in is what the closing price is on the Friday.

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Day trading is not for the 'faint-hearted' and as with any type of trading you will need to optimize every opportunity to educate yourself about the Market and also about Yourself.

The day trading environment is fast paced and can be very stressful for the trader who is not well prepared. Success comes to those who are focused, disciplined and have tenacity.

The 7 Key Tips for education about the market required for succeeding with day trading:

Learn, learn and then learn some more about the market.Learn, learn and learn some more about different trading strategies.Paper trade, paper trade and then paper trade some more.Start trading with real money in small positions.Transitions to larger positions once confidence and small successes are achieved.Go back and repeat steps 1-5...see below

The 5 Key Tips for developing the traits required for succeeding with day trading:

Learn, learn and then learn some more about yourself and what makes you tickLearn, learn and learn some more about any unwanted behaviors, attitudes and beliefs identified in 1.Identify and utilize different ways and tools to change those unwanted behaviors, attitudes and beliefs.Go back and repeat steps 1-3...see below

Every trader that ever there was have all had obstacles to overcome before succeeding as traders. Those who are successful have continued to work on their market education and have continued working on themselves.

There will always be things that we need to work on and we need to look at trading as an opportunity to learn and grow as a person as well as a trader.

Optimize the opportunity of experience and LEARN from everything.

You can maximize the experiences gained in trading by building on the positive and learning from mistakes. How you think about every trading experience, good or bad or what you deem as good or bad, will influence your trading.

Maybe you take early losses and have not put things in place to ensure that the inevitability of losses is managed?

Have you reached a plateau and now you are moving away from what you know works and are getting scared by the unknown?

That brings me to the summary of Tips for Day Trading Success and this also addresses the above points not yet covered:
Develop a robust Trading Plan that suits YouStick to that Trading Plan!

The best thing you can do as a trader is to seek out more knowledge, be discerning in what you take on board, but know that if you give your trading and yourself the focus and determination needed to succeed and have the right tools and people around you, the trading journey can be one of the most rewarding and exciting ways to give you the money and lifestyle you want for yourself and your family.

The development of your trading plan and the ability to stick to that plan can be the hardest component of trading, but once you have those things in place, those rewards will surely come.

Karen Oates is a seasoned options trader and mindset coach who excels at helping traders understand themselves and the stock market by using a 'keep it simple' trading plan and the mind tools of success through mastery of mindset, focus, behaviors, beliefs and strategies.

Karen is certified as a:
Master NLP Practitioner
Master Results Coach
Performance Consultant
Specializing in Advanced Subconscious Reprogramming and Master Hypnosis

Check out how you can use the best tools and techniques to become the successful trader you want to be!
http://www.outofmymindtrading.com/

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Forex AutoMoney is the best product that I have used so far. As the name suggests, it is definitely an auto money generator. Though I first thought it could be another scam website, trying to rip off money, very soon I was proved wrong. It is not one of those get-rich-quick schemes to attract people and make a fool out of themselves. I am just simply glad to have taken a chance, the product is simply amazing.

Before Forex AutoMoney happened, I was not into Forex trading. Infact, to tell you the truth I was all confused about the products and the process; all those analysis, charts and figures were just so baffling. I never thought I could understand all this to an extent that I could actually make profit in this business. All thanks to Forex AutoMoney, that everything became so simple and easy to work with that it was ok if I did not know the ways of Foreign Exchange Market. This website is very user friendly and provides all the information needed to the subscribers to help them earn huge profits. It provides its subscribers with a copy of Secret Forex Money Report. The support team is also available 24/7 to help the members with any concerns or queries that they may have. The website is not only 100% accurate but also 100% reliable.

Setting up Forex AutoMoney was also very easy. It only required me to have a computer and an internet connection. As for all the hard work involved, I just needed to know the difference between the two words 'buy' and 'sell'. The interesting thing is that both of these words are targeted towards making profit. The other thing that I needed to know was when to click. Now, that was not difficult at all and so with a small initial investment of just one dollar, I was making huge profits with just one currency pair. I decided to invest more to be able to deal with all the 18 currency pairs and increase my chances of making profit which definitely proved as a wise decision.

This website offers a wide range of choices to the traders. One can decide to go for any option depending on what he thinks is the best for him. The traders are also free to use the three timelines as and when they want to. There is also enough information provided on the website about the foreign exchange as well as various links to Forex broker sites incase someone wants to explore more for a better understanding. There are also various guides that are offered that include a glossary list and a section dedicated to FAQs. I just love this website as well as all the incoming profits.

It is only after trying and testing it and only after becoming a big fan of this website that I am recommending it to you today. I have not found anything better than this product till date and I am not even looking any further. I am very happy with all the incoming money and all the comforts it has brought into my life.

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There is a large learning curve when you begin stock trading. Whether you are trying to learn how to day trade for a living or swing trade for a living. There are a lot of ups and downs and ebb and flow within the stock market on a daily, weekly and intraday time frame. You must get a feel for the market and the flows of whatever time frame you decide to trade. In this article we will focus on swing trading and swing trading strategies.

Swing trading is buying a trending stock and holding on to the stock until the trend changes. When the trend is changing, the swing trader sells the stock. This usually occurs during a short time period. Depending on the trader and the trend, the play may last anywhere from a week until a month. Knowing certain stocks and their trends helps the swing trader as does knowing how to chart stocks and find support and resistance.

Swing traders buy stocks in heavily traded companies with a long history, this allows them to enter and exit a stock a soon as they make the decision. Entries and exits on less heavily traded stocks can become difficult especially if the stock turns on you and you need to exit quickly. Traders will also use the historical data to chart their entry and exit points in an attempt to make their trades more successful on a consistent basis. As a stock begins to trend upward the swing trader will make their purchase and sell when the stock begins to head back down.

When you begin trading stick to you plan. If you start making money you will become more confident. This confidence can lead you to change your plan which in turn can be detrimental to your bank account. Before adjusting your plan and the amount you invest gain some experience. Put raising your investment after you reach a specific monetary goal, into your plan. You will have success and failure as a trader remain steady, gain experience and slowly raise your goals.

There are many reasons to take up swing trading and using day trading strategies. There is a low risk involved, its not as faced paced and time consuming as day trading, and the trades are short term. Swing trading is often traded by those with and aversion to storing money in the stock market and worrying about a collapse and loss of profit. Once you are comfortable trading stocks you can begin swing trading other indexes and commodities.

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Technical analysis has a number of patterns that can be used to make a profit out of most financial markets such as forex, stocks, bonds or commodities. We list the main ones so you can spot them when they arise in a chart and make a profit if your view turns out to be correct.

The first one of these technical analysis patterns is the rectangle. Start by drawing a line through the lows and the highs, if the market is flat you will notice the two lines are almost parallel. If the market closes above the lower line that's a buy signal. If the market closes below the top line that's a sell signal. Beware of the bull trap though: sometimes the price can close below the high line before going down all the way to break through the lower line (or vice versa for a bull market).

Ascending triangles in technical analysis are very similar to the wedges which I discussed in another article. A triangle in technical analysis is a formation where the line going through the highs converges to the same point as the line going through the lows. The resistance (top line) is parallel to the x axis of the chart whereas the support (the lower line) is upward sloping. This is a bullish signal as the price is expected to the break out of the triangle to the upside. If the pattern fails though, sell as the market breaks out below the triangle.

Descending triangles are the mirror concept in technical analysis, but for bear markets. If you draw a line going through all the lower highs and a line going through all the lows the will converge to a point. The support line will be parallel to the x axis whereas the resistance line will have a negative slope. This is a bearish signal as it indicates that a break out of the triangle to the downside is imminent.

Lastly, technical analysis considers symmetrical triangles. These are triangles where the slope of the highs and the lows are converging to a point. Both support and resistance have a non-zero slope. Symmetrical triangles are formed by rallies and sell-offs, each one smaller than the last. In technical analysis this indicates that an event is imminent. The formation indicates that the event will be explosive but we don't know in which direction, hence this pattern is better used in conjunction with other directional indicators.

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I had been hearing great news about Forex for a long time. All those wonderful news about currency trading in foreign exchange market and becoming rich was enough to have me started on the business. I decided to explore Forex as well as my options of becoming rich and I soon learnt that the process was not as simple as I had imagined. In fact, it was not even close. I was required to do a lot of homework like learning to read charts, compare and analyze data among other tasks. I knew instantly that this was not meant for me. May be I needed to look for something simpler; something better. I was very disappointed.

It was not long when Forex trading was in the news again. It was the improved version that was catching the attention of people. Forex had introduced robots which were designed to carry out all the complicated work while you sit back, relax and enjoy becoming rich. Again, it was too attractive a package to miss and I did not want to lose the opportunity. My extensive research on this new system resulted in several articles and reviews that discussed the drawbacks of these robots and the loop holes of this new system. Once again I was disappointed but was glad for playing safe. It was just very recently that I heard about Forex Monster, the new Forex Robot which could work effectively in all market conditions.

Still bent on earning easy money, I decided to find out more. I had never dealt with online trading before and one important thing that I did not know was that Forex market is very dynamic. This means that if one can earn huge profits and make a lot of money on one hand then on the other hand a change in the market condition can snatch away even the last penny in you hand. One needs to be very fast and perspective to be able to stand in the market. It was very interesting to know this and now I knew why the earlier robots had failed miserably. Suddenly I felt that I was getting better at the trading system. Forex Monster was my next search area. I was interested to know the difference between this new robot and the older ones; what made these new robots special and market savvy. On exploring, I also found out that the site offered an 8 week trial period. In case it all didn't seem to work out as expected; the entire money would be refunded. I remember clearly that it was on 7th of July that I finally took the long awaited dive in the pool of trading. It was a very easy installation.

A detailed video is also provided with the program to help users with the setup and make the process very user friendly. A very supportive helpdesk is always available to help you with your problems. These experts guide you well and all your questions, concerns or comments are treated with patience and diligence. Well, as the site had claimed the robots are very effective and at work 24 hors, 5 days a week. There is nothing like earning huge profits especially when you don't have to do anything for it except sparing a few minutes for setting up the trade. I am very happy with this product and recommend it to everyone who is into making money online.

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All the forex trading training you could ever receive is not most likely to assist, in the event that you may lose nerve to get in there and trade foreign currencies and put your own funds at stake. As together with the lotto, if you do not try, you simply cannot win. Believe in me when I suggest that the simple job of hitting the acquire or sell button is extremely hard to carry out when your own actual dollars are placed on the table.

You will sense anxiety, quite possibly worry. Here lies the moment of reason. Do you have to be frightened and act regardless? When a firefighter runs into a burning property we have to presume he is frightened, however he achieves it nevertheless and achieves his desired outcome. Unless it is possible to overcome or accept your anxiety and do it nonetheless, you will struggle to become a productive trader.

However, once most people discover to control ones fear, it becomes easier and eventually there is no trauma. The opposing reaction can become a problem, in effect, you are too bullish and not focused enough on the risks you are considering.

Both the lack of control to set off a transaction, or complete a dropping market can easily produce serious emotional issues for a forex trader going forwards. By bringing awareness to your prospective stumbling blocks beforehand, you'll be able to correctly prepare well before your 1st serious deal and increase excellent currency trading practices as a result.

Start by evaluating yourself. Are you the kind of individual that can handle ones own reactions and thoroughly execute deals, frequently under incredibly stressful conditions? Are you the type of individual who is overconfident and susceptible to accept far more risk than they should? Just before your very first real transaction you'll want to take a look inside yourself and develop the solutions. Individuals can fix almost any inadequacies prior to trades which can otherwise end up in paralysis (struggling to get started) or an enormous reduction (overconfidence). A huge deficit could too early finish your forex trading business, or lengthen your achievements until eventually you can improve into extra funds.

The problems do not finish with "struggling to get started". In reality what happens later on is just as or maybe a lot more difficult. Immediately after, you might be in the trade and a subsequent challenge is remaining within the trade. When buying and selling international trade you leave the deal as soon as possible after entry when it is not happening. Many people who have been effective in non-trading projects find this concept tough to implement.

As an example, real estate tycoons generate their wealth riding out the poor times and moving on swiftly throughout the growth periods. The dilemma in having to try and learn to "hold" until it comes back' technique in foreign exchange is that most of the time the foreign currencies are in long-term constant, directional patterns and your collateral is going to be erased prior to when the money comes back.

The other side of the coin is remaining in a trade that is working. The most common mistake is terminating out of a winning position without a legitimate rationale. At that moment again, fear is the culprit. Your subconscious challenges are going to frighten you continuously with questions like "what if new news is offered mid deal and you end up with a loss". The actuality is if news comes out in a trade that's heading up, the news has a higher possibility of becoming favourable than negative (a lot more on why which is so in a further report).

So your fear is simply a baseless annoyance. Don't attempt to beat the fear. Accept it. Have a considered moment regarding it and then go about to the challenge at hand, which may be determining a good exit technique based on actual deal migration. Stressing about precisely what could be is irrational. Studying your chart and identifying an independent exit point is fact dependent on rational.

One more typical mistake might be closing a winning position due to the fact you are weary of using it, perhaps because it is simply not moving.

If you can be courageous during pressure situations as well as smartly calm, foreign exchange trading may be for you. If you are a natural go getter and too bullish, you may well require to tone your behavior down a level or two in order for you to make the essential corrections. If putting your dollars at threat tends to make you a nervous mess, it is because you need to gain the knowledge and foundation to be confident it comes to your own decision making.

A lot of new investors imagine that all you need to profitably trade in foreign stock markets are a series of graphs, technical indicators and a little bank roll. Most of them blow up (shed all their own cash) within a few days or months. A few are primarily effective and it takes as long as a year or more before they blow up. A tiny minority with good funds, control abilities and patience, plus a marketplace area of interest, are far more likely to go on to be profitable traders.

To increase your chances of good results to close to certainty requires knowledge. Acquiring knowledge requires challenging work, study, dedication and concentration. Compile your knowledge base without executing any kind of shortcuts, therefore guaranteeing a solid foundation to develop upon.

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Daytrading systems and techniques are in abundance on the internet. This brief article will concentrate on the very basics of technical daytrading. The home based daytrader is competing against large institutional traders, hedge funds, market makers, and computer algorithms. Before entering the daytrading arena, the trader must be prepared. The competition has at their disposal powerful computers armed with high tech algorithms. High frequency trading programs operate on miniscule profits and massive numbers of trades.

The good news is that these super fast trading algorithms add liquidity to the markets. The bad news is that all these computers are not on the same page, creating some pretty strange price action scenarios. So, how in the world can the little home based trader compete with the supercharged, high tech, mega bucks commercial traders?

The answer to this question is quite simple and based on common sense. No matter how powerful these computers are, they still function by a set of rules. These trading rules are programmed into the computer by humans. These programmers use the same rules that are available to all traders. The rules of trading are sometimes bent and rarely broken.

The average home based trader can learn these basic rules and compete successfully with the big boys. Of course, extraordinary fundamental events can be the exception to the rules, but as far as the ordinary, average trading day is concerned, these basic rules remain in effect for all players.

The technical analysis of any market is based primarily on price, time, and volume. These are the only variables we have to work with. All trading systems are created using these three variables. Systematic, rule based trading is the only way the at home trader can compete with the large traders. The rules transcend all timeframes and are just as valid in the one minute time frame as they are in the daily, weekly, or monthly timeframe.

The rules are simple and every trader should know them. The most commonly used rules are support and resistance, Fibonacci retracements, trend lines, and moving averages. The at home daytrader must take the time to learn these rules and how to implement them. Before entering the battleground of day trading, arm yourself with a simple plan and a clear mind

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The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. This article has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security,currency, or asset. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable.

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Trading in the stock market is similar to running a vehicle in a fast-moving high traffic area. You need to have skills acquired before taking up the task, should have pre-tested all your tools and resources and be on the alert while you are trading. The major risks involved with trading on the stock exchange are explained below along with possible remedy in each situation.

Sudden fluctuation of stock prices

Global parameters can change the stock prices suddenly and can go against your trade. For example, an unexpected increase in unemployment figures or a negative report, even a rumor about a specific company can bring down the prices suddenly. Stock markets across the world have many regulations so that any new, result or report that influences the market prices is not released during the trading period. Despite of this, market fluctuations can still happen. Also if you keeping the trade more than a day, these kind of influences can not be really avoided.

What can be done about this: Always have a stop-loss both at the trade level and your account level and come out as soon as possible to cut the losses.

Technology risks

This category is applicable especially for online trading, which is very common these days. A slow or stalled server at your broker's location, an outage in the network either at the exchange or broker's network or your home network, a power failure however uncommon you might think, can cause terrible losses because one can not come out of the trade as planned.

Some times the prices you see on the trading screen might be delayed because of server problems and your trade may end up in slippage or subjected to wrong decisions.

Counter strategy for technology risks: Have the telephone numbers of your broker house handy so that you can go the telephone route if needed.

Inherent market risks

You place a market order and the market may move suddenly causing your order to be filled at an extreme price. Or due to fast changes, your margin needs might escalate putting pressure on you.

What can be done: Use limit price whenever applicable and in case you use market order, think ahead for possible consequences. Use you margin sensibly and do not trade on borrowed capital.

Another inherent market risk - your order may not get filled if the liquidity is not good. Handing this risk lies in having a good trading system and following your rules.

Behavioral risks

If you are not an aggressive risk taker, your own reaction can become a risk in your trading. A quick reaction out of fear can spoil your trade. Judge before-hand whether stock day trading suits your nature and evaluate all possible parameters before taking up stock trading.

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Commitment of Traders is an excellent report breaking down Open Interest in a useful way, showing short and long positions broken down by player. This is useful data for long-term trading, but by all means nonessential for day trading. However, using the COT properly can give you valuable long-range insight into future crashes and provide other indicators that may come in handy when you are trading the long market.

The Community Futures Trading Commission releases weekly COT data reports every Friday after close. Once the markets have closed the data is available on the CFTC site in text or spreadsheet format, or you can use TradeStation's functions to call it up if you are a user of that software platform.

COT data can form a solid indicator by using it to find a directional shift in the commercial market; this usually indicates that a trend shift will follow. COT marks its data as Commercial vs. Non-Commercial, so you can use it to plot long and short positions as percentages of Open Interest. The shifts in the relationship between Long and Short can show you patterns that are only beginning to unfold.

However, it's important to realize that most commercial buyers are hedging, going short when the market rises and long when the market is in decline in order to protect themselves from reversals in the trend. Commercial traders tend to hedge until they are satisfied of a large trend that presents a big opportunity to cash in, before they return to hedging behavior. If you watch carefully and find the point where hedging converts over to trend following, you can catch the trend when the commercial buyers do and cash out with them.

COT is not as clear and useful for Emini in particular, because Emini is dominated by day trading; the COT data is obscure. However, using the large S&P 500 contract instead of the Emini, you can effectively use COT to make predictions about Emini activity. You'll find that similar patterns hold true in the Commitment of Traders data for any high-visibility indices that are traded in large and miniature formats.

Correlated markets are also a great reason to look at COT. For example, crude oil and US Treasury bonds both correlate to the stock market in particular ways; crude oil is a close proxy for global growth, which directly correlates to stock market behavior. Bonds are a safer market, and investors will move away from stocks into bonds when they feel that their finances are on shaky ground.

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There are some trends nowadays develop for people all across the globe to try on the financial spread bet as their other option beside trading the currency market directly. Financial spread betting is product that already well-known in the UK for quite some times now and it's now begin to introduced worldwide as one derivative product that can deliver us great profit when done properly.

What is financial spread betting anyway? It is a derivative product that gives the traders chances of profit gaining from the range differential of some financial instrument such as shares, indices, currencies or even commodities. There is also no obligation for the traders to take any physical ownership of the securities whatsoever in this spread betting activities.

So this type of betting activities let traders to bet on the price of the above products, either they would rise or fall. Whenever the trader betting on the correct move for example, trader bet for price to rise and the price did rise after some period of time, that trader wins the bet and he receive profit and vice versa, if the trader have wrongly guessing price movement of particular product, he losses the bet and pays the betting company.

Now for the stake of which you can take for each bet will depend on you entirely. Let's say that you are betting one pound into one financial product like Google shares for instance, you will either get one pound or lose one pound per direction that you choose for that product. If you buy Google share for one pound, whenever the share moves up one point, you get one pound and vice versa.

Profit and loss are calculated per product at stake and the total price differential from the open to the close of the price. So if you are betting Google will moves from 7000 to 7100, you would have gain or loss 100 points at one pound per point, if one point is equal to one pound then you would have gain profit or lose 100 pounds per that order.

Spread betting leverage allows traders to take positions far in excess their initial stake. You should be very careful of using leverage as it is a double-edged sword meaning that it can help you to take stake that is larger than your own capital but in the other hand, it can be very dangerous too if not use properly.

So for every trader or bettors that currently still new in this kind of gambling arena, I suggest that you really learn your way first, take some trading education, experience some live trading activities in the old markets way before you ever try to conduct spread betting in real-time because it is far more dangerous than any kind of gambling types because you can't just stop when you become addict to it.

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For many people, investing money in the various exchanges and stock markets is one good way to make your money grow. Countless stories of investors getting rich overnight enhance the notion. What makes trading very lucrative to most people is the fact that you don't actually have to do a lot of things to earn profit. Their money does it for them.

Although these factors may seem to make trading the most ideal choice to earn money, one thing that should be taken into consideration is that, in every business venture, there's always a certain amount of risk involved. Just as businessmen's businesses go bankrupt, any investor can easily go broke. For an unequipped beginner, trading can essentially be just the same as gambling.

There are two things that you need to consider when thinking about trading. First, you should always be ready to part with your money. If you think you'll need your money anytime soon, then maybe investing it is not a good idea. More importantly, you should always be ready to lose that money since there are no such thing as a 100 percent guarantee in trading.

The second thing that you need to keep in mind is that never go in the market unprepared. It is important to have the necessary skills and knowledge in order to make good trades. You don't just go out there and purchase stocks and hope that the ones you pick will net you profit. For this, you will need to have trading education.

Trading education from various educational institutions such as business schools and universities goes a long way into preparing you for all that. There are also trading companies offering such courses. Getting an online education is also a very good choice. Investor education companies offer trading education to beginners and experienced traders alike.

What's good about learning trading from online trading education is the flexibility. Going online and learning at your own pace may be more preferable to people with day jobs. Those who do not find the structured setting in business school to their liking may also find online learning better suited for them.

E-classes are also less troublesome to get into compared to other educational institutions that have tons of requirements. If you are a trader or interested in becoming one, getting an education from established companies is a great start.

If you would like to learn more about getting a day trading education, please visit the Traders International website at http://www.tradersinternational.com/.. You can also find learn more about the company by viewing the Traders International FAQs, which explain some of the more technical questions that you may have.

Having a mentor to guide you is crucial in the world of trading. Invest in yourself first. Learn from Traders International and build a solid foundation for your trading activities.

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Trading in the financial markets is a considerable deal for everybody who is into it. Creating a large sum of money via day trading may very well be easy, but eventually, taking a loss in the financial markets is often times less difficult and often takes place a great deal. The reason is there are a handful of traders who do not have a clue about what they're undertaking. Without proper trading knowledge, things can easily go awry.

That's the reason it's important for almost any investor to arm himself with sufficient understanding in order to be prepared when day trading. It's just the same with soldiers preparing themselves prior to going to war.

One of the best ways to learn day trading is by participating in an internet trading training course. Trading course are especially useful for beginners. Taking a trading course gives new traders a system to guide their decisions. This can be very important in a business where split-second decisions are required every few minutes.

Participating in an online trading course can also provide invaluable assistance due to the guidance and advice that some companies provide through mentoring from more experienced traders. Again, this aspect is most useful for aspiring traders who have the advantage of learn from the mistakes of other instead of making their own costly mistakes.

A good education enables traders to gain success by teaching sensible principles, theories and even day trading ideas to deliver that added edge when trading. A good trading education also focuses on teaching two extremely important things to investors; first is to create that successful can-do attitude and positive mentality; second to efficiently control one's portfolio to be able to maximize earnings. These two things are very important in trying to reach your goals in trading. Not having either of these two, losing a great deal of capital may come swiftly.

Just as in anything that is worth learning, patience in trading is the key to gaining long-term profit.

If you would like to learn more about getting a day trading education, please visit the Traders International website at http://www.tradersinternational.com/.. You can also find learn more about the company by viewing the Traders International FAQs, which explain some of the more technical questions that you may have.

Having a mentor to guide you is crucial in the world of trading. Invest in yourself first. Learn from Traders International and build a solid foundation for your trading activities.

Also, please take a look at other day trading information articles here: http://www.trader-reviews.com/

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By Mark David Johnson Mark David Johnson
Level: Basic PLUS

Mark Johnson is a full time TradeStation programmer, trader, and trading coach. He has personally developed over 60 strategies and over 200 indicators for the ...

To be a successful trader you must know when a trend is starting, the strength of the trend, and when the trend is ending. Knowing these trend events is crucial since a trend is the fundamental market mode for most profitable trading methods. Having access to this trend information when it is timely and accurate can dramatically increase your trading profits.

One of the most commonly used yet outdated tools to identify trends is the ADX indicator. The ADX line rises to show the strength of a trend. The most accurate means of using the ADX is to only pay attention to a rising ADX line, since that is when the trend strength is the strongest. Most ADX Indicators have a threshold level line somewhere around twenty or twenty-five. When the ADX is above that threshold you have a trending market and when it is below that threshold it is not trending. It's important to know these details about a trend, unfortunately, the ADX is too "hit and miss" at delivering this important trend information.

A huge problem with the ADX Indicator is the long "lag" recovery time that occurs after a strong up move. Just look at a chart with a quick strong uptrend followed by an immediate quick strong down move. You will see that the ADX Indicator completely misses the second down trend movement since the ADX line is still in a recovery phase. Another ADX deficiency is that it gives no information about the direction of the trend. I know you can use other indicators like the DMI+ and DMI- to get the direction of a trend, but I want each and every indicator on my chart to provide the most amount of accurate and timely information as possible. So why not use a trading indicator that does a lot more than the old outdated ADX Indicator can?

The Price Action Indicator is the perfect ADX Indicator replacement for the following reasons:

First, it accurately answers when a trend is starting, the strength of the trend, and when a trend is ending.Second, it gives this information without "lag". Getting these signals in a timely manner translates to more profitable trading.Third, it tells the direction of the trend without the need for other indicators like the DMI+ and DMI-.Fourth, it can be placed right on your price bars to see the inter-relationship between the price bars and the Price Action Indicator.

The Price Action Indicator simply and clearly displays all of this trend information. It shows the start of the trend by changing both the color and direction of the price action line. It displays the strength of the trend by increasing the thickness of the price action line. It does all this without the "lag" inherent in the ADX Indicator. Finally, it can be placed directly on the price bars to see the trend's relationship to the price bars, making this a vastly superior tool over the ADX. The Price Action Indicator replaces the ADX, DMI+, DMI- and most moving averages.

As fantastic as the TradeStation Price Action Indicator is, the price action line that we have covered above is just one line taken from our Multiple Time Frame Price Action Indicator which is made up of 8 different time frames price action lines. The MTF Price Action Indicator provides the greatest trading "edge".

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At one point in my trading journey I got caught up in the Indicator Frenzy. I'll bet I had a hundred. Many were indicating nothnig in particular, most were indicating the malfunction of the others! I was lost in a paradoxical insoluble, a veritable quandary!

With all these high tech, expert diagnosing, super sensitive, parameter tweaked indicators, surely I could defeat the ignorant market participants. Unfortunately, many of the other participants were way ahead of me. They had been there, done that, and were wearing nifty T-shirts featuring P.T. Barnum ("There's a sucker born every minute"). I swallowed my pride and began to regroup.As I began to develop my trading wings, I realized that my puny brain was not capable of assimilating this massive amount of information. My trader soul was screaming "KEEP IT SIMPLE, STUPID!"

Focusing on indicators will result in false signals and bad trades. Torturing your brain with massive amounts of information will also result in bad trades. The markets are polluted with TMI (too much information).

The trader must whittle it down to a manageable level to conserve your time, your sanity, and your psychological state of mind in order to perform as a rational trader. No matter how smart or how well organized you are, an overload of information will not improve your trading. A general consensus of opinion will cloud your objectiveness.

Conflicting opinions are like conflicting indicators. Useless.

The trick is not the number of indicators you use and not necessarily which indicators you use. Try to narrow it down to 2 or 3 indicators and understand what they are telling you. I don't use indicators for trading signals and I don't make trades based on indicators.

I use indicators to confirm what price action is already telling me. I also use indicators when trading divergence. My technical analysis begins with the basic skills of determining support and resistance, then moving on to Fibonacci. Indicators have their place in my trading program but not my focus.

Thanks for reading my article. To learn more please visit one of my educational websites.
http://www.lakeside21.com/
http://www.2tradesmart.com/

The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. This article has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security,currency, or asset. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable

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Why would anyone venture into the world of trading? Some justify their actions by citing interest in the subject as economic cycles hold them in hypnotic fascination. Others admit to the plain and simple truth of lining their pockets. No different from fire, one learns that a thing of beauty is often not to be tangled with if one does not have an extinguisher or safety blanket at hand. This business is equally punishing if fingers are not withdrawn in time as it singes all in its path.

In the days of old, this activity generally implies a trader up to his arms, calling out prices on the trading floor despite overwhelming voices threatening to drown his out. Coupled with the frenzy are brightly lit boards displaying commodities of all forms. As selling and buying prices constantly change to keep abreast with the latest transactions, the euphoria of scoring a significant profit is always in the air. Since not everyone is made to participate on the floor, other opportunities exist to quench the thirst for excitement.

Going online is perhaps the better option as floor participation proves to take too much a toll on some traders' heart and wallet. Although this alternative does not place one in the physical environment, the experience is just as invigorating as watching intently on the changing numbers forces one to come up with possible moves. Akin to playing chess with the master, the trader must be fully equipped with the anatomy of the game. Since trading has no equivalent to Henry Gray's book on the human body, experience possibly speaks the loudest when thrust into the forefront.

Thanks to technology, the online option presents the trader with a set of tools to progress a step closer to hitting the jackpot. Applications with financial indicators claim to handle the tedious selling and buying, thus freeing the trader to focus on where it really counts.

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As with any successful business, it all begins with a plan. A business plan is nothing more than a roadmap or in the modern world a GPS system.

Imagine you had a restaurant business and everyday you would show up to your business and change your successful recipes'. You built a loyal following using your current PLAN but you change that plan every day or week. Ultimately, what do you think would happen to your loyal customer base? Over time, they could not count on previous choices which brought them to your establishment in the first place.

Eventually they would seek another restaurant that could give them consistency. Although it may not be as tasty as your food once was, people want consistency.

Trading is no different. It is far better to follow a consistent plan and slowly tweak that plan as you back test your results. I guess you could say, a weak plan that is consistent is far better than a stronger plan that is not written in stone.

It has been said that good trading is boring trading, at least in the moment. Your recipe or PLAN should be written as if you were teaching an 8 year old.

At first you have to remember all of the items listed in your plan. Over time, you will not even think about what you are doing, you will just react to a pattern that has been grinded into your trading habits.

If you find yourself approaching the market each day with apprehension and nervousness, you need to re-evaluate your trading plan. Either you don't follow it or you have no confidence in it therefore it should be back tested. Your plan should be as clear as a green light or red light when you are driving. I would venture to say that most traders today are color blind in that sense. If your eye doctor recommended glasses, don't ignore that professional observation. Just get the glasses or contacts and see your trading more clearly.

Get clear on your trading colors and see them vividly. Don't go another day without an eye examination of your trading plan.

Good trading!

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Many people are of the misconception that spread betting is only for day trading and very short positions. Whereas the reality is, if you really wish to make money on the markets you need to maximise your trading potential and look outside the box into medium and even long term investments. Here is a brief explanation to the types of trading available with spread betting companies.

Day Trading

This is really for multiple positions during any given day, normally its best to trade when the markets are open as this is where you will obtain the tightest spreads. Most trades last no more than an hour and you are looking to make money from small market moves and using technical levels and the news.

Short term

Short term trading normally never goes past the week and most traders will hold 3-10 positions during this time. A trade will normally last in the region of 24 hours to 5 days. With short term you should be on the lookout to make money on the 1% to 6% market moves. You should also use technical levels and market news to base your trades upon.

Medium term

With this style of trading you should really have a maximum of 5 position within any given month. Most of what you are trading should last between 2 to 4 weeks. Here you are looking to make money on larger market moves based in the region of 5% to 10%. With this style of betting you should be focusing on fundamental analysis.

Long term

Only a few bets are required on this style of trading to help you minimise your risk. Most will take a few positions during a quarter and the trades should last a maximum of 2 quarters. Here you are looking for market moves greater than 10%. You are also using both technical levels and fundamental analysis to make you bets.

Overall some people are not suited to all styles of bets, but the different styles of bets are important to keep in mind if you wish to maximise profit. Remember comparing spreads can help you save money from the outset ensuring you get the best price on any given market.

You should always understand spread betting before you start as it is a leveraged product and you can lose more than your initial deposit.

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Now that you understand what a tick chart means, you probably want to learn how to get the most out of it. Here are three simple tips you can use to utilize tick charts more effectively:

1: Watch for Volume
Tick charts show you a measurement of total trade volume per tick. It's essential to watch this volume measure because it shows you where the money is going. You might be tempted to just follow the trend of the bars, but it's easy to fall into traps that way, if you don't attend to the trade volume indicator below. Set your volume indicator to show trade volume and you can distinguish amateur trade activity from professional trading; amateurs will tend to trade at smaller volumes, and professionals at notably larger ones. If you follow the high-volume peaks indicating professional activity, you are likelier to see returns from their projections; amateur trading is a less reliable indicator of upcoming trends.

2: View Detailed Activity
With conventional time-based charts, periods when trading is slower and smaller in volume are overemphasized. During these times of day, such as after-hours and lunchtime, volatility is lower and trades are less frequent. Using tick charts, trade data is stretched and compressed to allow you to see trends as if the pace of trading were constant throughout the day. This makes it easier to see the slow-paced trends after hours, as well as magnifying the complex activity that occurs during the quicker parts of the day.

This allows you to get in on breakouts faster as newsbreaks. While, for instance, a 3-minute chart will only update at fixed intervals, a tick chart will show clearly and immediately if there is a sudden increase in trade activity.

3: Nothing is 100% Predictive
Although tick charts are a very valuable tool to have in your financial toolbox, be sure to take into account the other tools and techniques you have at your disposal. Like every tool, tick charts are imperfect predictors, and even with this kind of help you will occasionally make bad trades. It's not the end of the world when you do, nor does it mean that your tools are worthless to you. Take the time to analyze what happened in your bad trade and add that to your stock of knowledge.

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Are you an active trader or an investor? Previously people were unaware of the right methods of investment and this is the reason why they made some bad investments. But now people are much aware and they are much more educated regarding trade and investment.

There were some people who even used to stay away from stock trading and investing because they were afraid of the risks. But now things have changed. Online traders and investors are growing in number these days. With the help of the internet these days' people have started day trading.

There are various websites which are especially dedicated to this purpose. While surfing the internet have you might come across certain websites which offer professional advice. These are websites which are dedicated to the professional traders and investors.

These websites welcomes your membership and they have been operating with the help of all the contributions that are being made by the members. Some of the popular websites had been operating since 2006. This kind of website also has an online forum which attracts traders from all over the world for discussion regarding investment and trade.

If you are interested in online trading then you need to make sure that you collect all the essential information about trading before you enter into this field. In the beginning it might seem to be a bit difficult but once you start doing it and understand the fact then you will surely love this.

Finally when you are benefited you will love it more. But you should never forget that any kind of investment or trader related to the market usually has a certain amount of risk related to it.

The online trading websites offer different kinds of facilities to the members through their forum. This is a forum where the traders can discuss their views related to the financial market. If you want to gain access to the discussion forum then you need to create an account with the website.

You can create an account for free. If you become a registered member of the website then you will have access to different kinds of facilities. First of all you will be able to post your comments as well as join the market discussions.

Secondly, you can watch all the multimedia presentations offered by the website and chat with the traders live when the market is open. Thirdly, you can contact the other members of this website through instant messaging.

With a free membership you will be allowed to perform so many activities. It does not even take a single minute and money to become the member of these websites. You will surely value the advice given through the trader's websites about trade and investment.

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The term Day Trade, or, Day Trader is a reference to a person who will leverage large amounts of capital in return for generally a small return and close the position out by the end of the day.

In general, if a trader has a large amount of capital invested into one of the larger Share Broking Companies, they will be allowed to invest more than the capital that they have into a stock, or, stocks on a daily basis as long as the position, or, the shares are sold by the end of the trading day. If there has been a profit, all well and good. If there has been a loss at the end of the day, then the trader must have sufficient funds to back this loss up, in his or her account.

In my experience of day trading, I'm probably about even, or slightly ahead.

Lessons to be learnt are:

Make sure the stock you are holding has sufficient daily turnover so that your broker is able to exit it at any time in an emergency run down of the stock.

For example, if you are investing on a day trade say $100,000. The stock should have a daily turnover of at least two to three million dollars so that when you do exit then your $100,000 investment doesn't effect the price dramatically. Of course, your broker would possibly only offer your stock back in say $20,000 allotments until the $100,000 is completely cleared, but, as I said, if there isn't sufficient turnover then your $100,000 could dramatically effect the price, particulary if there is an avalanche of selling.

Mostly though this wont be a problem as Day Traders usually spot a stock that's rapidly moving and will all jump on it likes bees to honey.

This is where you should be very careful at the same time. Day Traders can manipulate the price and cause huge panic in the stock, for their own advantage. For example, if the stock has run from say 50 cents to 56 cents in a few hours, day traders can put a risky false offer of a larger amount than what has been trading up for sale at say 58 cents to try and spook the market to rapidly sell. As quickly as the offer has been placed there, it is removed when selling downwards occurs enabling this trader to take advantage of a lower price.

On the other hand, the same tactic can be applied to get the price to move upwards. That is if the stock is trading at say 53 cents and there has been a bit of a lull in buying and selling of the share, then a day trader may put a buy offer of a huge amount of shares in at say 51 cents, invigorating the share once more into action as it gives the share traders confidence that the stock has underlying buying support.

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The definition of a day trader is a trader who holds a position for a very short time from minutes to hours and can make many trades each day. It i the expectation not to hold position overnight so most of these trades are entered and closed out within the same day. A day trader can trade in numerous markets such as stock, options, futures and forex.

Now that we have the basic understanding of a day trader, let' s get with the 'down and dirty' on what it really means to trade in this environment

There is huge profit potential when day trading and where there is great return possibility, the other side of the coin is that there is also huge risk.The US securities and exchange commission (SEC) has identified the risk involved in day-trading and will not allow anyone who has under $25,000 to be a day trader. Any trader of US stock and options cannot execute more than 3 day trades in 5 consecutive days. This rule applies whether you intentionally enter and exit a trade on the dame day e.g. you get stopped out on the day you entered.Day trading is a fast paced environment and you will need to have the ability to make decisions while 'the bullets are flying'. Day trading can be fraught with emotional turmoil where fear and greed can fight for control. The best day traders are those who have a trading plan and have the steely resolve to stick to the plan. Those who become almost mechanical in their trading see the best results.

Now that we have identified three components of what it mean to be a day trader, how can you use that knowledge?

Risk management is key. You will need to develop a trading plan that deals with the high level of risk and where things such as your stop positions to mitigate loss and protect profit is paramount. If you do not have enough knowledge yet to develop your own plan, find a good template to give you some guidelines. Paper trading is another step in managing risk. Paper trading is never the same a trading when with your own money but it does give you an arena to trial, test and learn.There is nothing you can do to work around the SEC ruling on pattern day trading. Everyone has to play by the same rules and have been put in place in part to protect novice traders from themselves.The ability to stick to your plan is paramount in day trading. You will have tested your strategy through back testing and paper trading and what comes out of this will make up the key components of your trading plan.

Now comes the next 'tough' part. How do you stick to your plan throughout the course of the day when your emotions are running away and you are doubting the decisions you made when all was calm. There is now a knot in the pit of your gut and maybe you now doubt your entire plan? It' s the markets fault or those darn market makers!

Don't blame anyone.

Just get moving to work on yourself and find out more about what makes you tick and how you can control your emotions so they don't control you or your trading decisions.

Find it within yourself to obtain nerves of steel and laid back calm to deal with any trading scenario. You will find it - you just have to go looking in the right place. What you might not know about yourself is probably the key to what is holding you back from trading success.

Your unconscious mind holds the key.

For more on how to unlock your trading potential, check out our tips and tools

Karen Oates is a seasoned options trader and mindset coach who excels at helping traders understand themselves and the stock market by using a 'keep it simple' trading plan and the mind tools of success through mastery of mindset, focus, behaviors, beliefs and strategies.

Karen is certified as a:
Master NLP Practitioner
Master Results Coach
Performance Consultant
Specializing in Advanced Subconscious Reprogramming and Master Hypnosis

Check out how you can use the best tools and techniques to become the successful trader you want to be!
http://www.outofmymindtrading.com/

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If you are a day trader that has been losing money then it is time that you learn what you need to do to fix this problem. Losing money is the worth thing in the world and being a day trader it is bound to happen, but you don't want this to be a daily occurrence. When it comes to trading there are some things that you can do in order to stop your losing streak and make more money than ever before.

What to do when losing money

Analyze your trades - The first thing you need to do when you are losing money as a day trader is to analyze your trades. The reason you need to analyze your trades is because there must be something that you are missing when making the trade in the first place. If you are constantly making poor decisions then it might just mean you aren't reading into each stock the way you should.

Diversify your daily picks - Something newer day traders don't do is diversify their daily picks, they just diversify their long term trades. This is where you might be making a mistake. Although you can earn a lot of money by putting all your cash into one stock it is very risky and that could be where you are losing money. Always stay diversified on a daily basis or you will run the risk of losing all your money.

Stay focused - Something many people forget is that staying focused is the key to making any money in the stock market. If you are a day trader you don't have time to goof off, you need to stay focused every second that the market is open in case it is time to buy or sell.

Don't lose confidence - The last reason why you might be losing money is because you are probably losing confidence with your strategy and your trades. Never lose confidence because you will end up broke. The reason you want to stay confident is because the second you start to doubt yourself you will make rushed decisions of even try a new strategy without the proper testing.

The biggest thing about day trading is that you have developed a strategy and you are sticking with it. Most beginners in the day trading market don't spend enough time perfecting their trading strategy and that is why they lose money. If you need help with your trading strategy then click here and get some free stock trading training.

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