Ratio Trading is a scientific concept that is the "surest way to make money in the stock market" irrespective of market swing and fluctuations. In other words ratio trading guarantees consistent and stable income from the stock market which is large viewed as a risky, unstable and volatile sector by even inside players.

The negative reputation of the stock market is largely due to the practices of individual players who participate in speculation. Ratio trading on the other hand is not speculative in nature. Rather it has the potential to change the perspective of the stock market as a risky sector. To those who understand the tools and strategies of ratio trading and can yield them to earn profits in options market, know that the stock market can indeed be a de-risked niche.

Let us take a close peak at some of the benefits of ratio trading:

Ratio trading is less risky because it is an intraday strategy where trade originates and concludes on the same day. Thus, the risk of a negative impact due to overnight swing in global as well as domestic markets is negated. Even the effect of intraday market movement on ratio trading strategy is minimal. If we look at the trends in the last decade we will find that, markets have not fallen or risen by 200 points intraday for more than 10 times within this time period. Therefore if we remain 200-300 points out of the money from the current market, we are almost assured of not getting affected by the market movement and are assured of getting profits from our trade 9 out of 10 times. It is the safest and surest way to make money off the financial markets.

Ratio trading strategy is based upon trade in options contracts, the lowest cost product in the Indian stock market. The initial investment therefore is quite low. Since it involves intraday trading at the end of the day no trades are carried over and therefore no margins are required.

Time value decay or rise in ratio is a continuous process there are no specific exit and entrance points in ratio trading. Anyone can enter and exit trade at any point of time depending upon opportunity calculated through comparison and judgment between different ratios. In other words ratio trading strategy is designed to be one that facilitates trade at will of the players involved. One may stop trading when there is uncertainty or confusion in the market and resume trade when the crisis is over.

The graph of ratios (Out of the Money) in Ratio Trading is always up irrespective of the market direction. Thus, profit is guaranteed in this strategy which consists of trading in small lots generating small profits which eventually build decent volumes and profits at the end of the day.

The trade remains unaffected by increase in number of participants or increase in volume. Rather competition only serves to open door to more opportunities as more competition means more volume, more volatility, more mis-pricing, more imperfection in ratios - all of which culminates into more opportunities and more profits.

Ajay Jain is a financial expert who is well versed in the intricacies of options trade and strategies of ratio trading in Indian stock market. He shares his expertise gained through many years of experience in live trading with the readers.

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I've been trading currencies for some years now and love to visit forex forums and blogs at least on weekends when there is no trading. I've found out that one of the most popular subjects discussed there is how to find a perfect automated forex trading system. That quest is also called looking for the "Holy Grail".

Why is that such important issue?

The answer is simple. Trading currencies can be very profitable, however, to achieve great results, you need a proper combination of resources (trading capital, time, and skills/knowledge) and you have to remove emotions (fear, greed, etc.) from your trading. The best way to do that is by using a right automated forex system.

What are the benefits of using an automated forex system, or in other words, how can it make your trading consistently profitable? Well, the right automated forex system will make your trading stress-free and will help you make the best use of your trading capital, will save you time and energy. And often money too...

Trading with automated forex software is almost like earning money on autopilot. You do your initial setup, e.g., regarding what currencies to trade, when to trade (time/day), what time frames to use and profit/loss settings (most important!) and after that all you have to do is to ensure that your computer stays on.

Three most important advantages of using automated forex systems are:

1. Removing emotional factor and human error from your trading;

2. Taking over management of your trading capital by using consistently (automatically) precise profit targets, stop losses, entries and exits;

3. Finding trading opportunities (trading signals) 24/7 for every currency pair and every time/day/time frame combination and for various styles of trading (news, swing, position, etc.).

With such important benefits of using automated forex systems, it's obvious why so many traders or potential traders are ready to pay significant amounts of money to get hold of such powerful tools. And, with such promising opportunities for profit, they are not concerned too much with drawbacks of using the automated forex systems.

But using automated forex trading systems does have some disadvantages, although they are not serious enough to discourage potential buyers.

For example, some of those autopilot systems don't work too well during news releases. Some experts comment that it's due to the fact that news trading is based on fundamentals, while the trading systems are based on technical analysis (indicators). That's true in most cases, but what also needs consideration is the fact that most of the brokers do spread adjustments around the time of the news announcements. It's not so easy for the systems to account for that, unless a system incorporates interdisciplinary theories, such as chaos theory, fractal geometry, etc.

The other drawback often mentioned is the fact that a system performed well in the past doesn't guarantee that it will do the same in the future. Well, it's true and no software developer can make any claim to the contrary. In fact, any sales letter has to disclose that forex trading has both large potential rewards and potential risks and that past performance of any trading is not necessarily indicative of future results.

Those disadvantages seem to be minor when compared to potential profits from trading currencies on autopilot. That's why automated forex trading systems are so popular.

Mary Cala recommends Gomega Trader [http://automated-forex-systems.info/blog/forex-systems/gomega-trader-is-for-sale/] as the best automated forex system because it utilizes Chaos Theory, Quantum Mechanics and Fractal Geometry. Mary is the Author and a Forex Trader. She also writes about trading currencies and about forex systems on her blog Automated Forex Systems [http://automated-forex-systems.info/blog].