Trading Commodity Futures used to be on pure Supply and Demand in the true sense before Index Funds came along
Hedging Your Gains
With the advent of ETFs, it has become incredibly easy for Americans to take advantage of the tremendous growth of emerging economies.
The Big One
I'll admit that it is not every day that an intraday trader will find that large winner. However, if you follow the right steps to prepare for trading every day, you will be more likely to find these opportunities when they arrive.
Proper Perspective, Part Two
To continue on my article from last week, I wanted to demonstrate how I use Triple Screen trading to enter into a trade.
Proper Perspective
When we trade, it is all too easy to get caught up in the moment. This is especially true for higher speed intraday traders.
The Relationship Between Stock Prices and Bond Prices
Most traders believe that bonds are a direct substitute for stocks and are used as a flight to safety in times of trouble. That is partially true.
Divergence and Trend Issues
There is no doubt that the markets have been trying to move higher and higher recently. The questions on most traders' minds are: "How high can the indexes go?
Volatility Stops
As a trading instructor, I sometimes catch myself muttering in my sleep, "Make sure you set your stop on that trade!" Ok, so I may not actually do that. But I am saying it constantly in the classes I teach. It is the main thing we as traders can do to help prevent catastrophic losses in our accounts.
Making the Trade
New traders often become confused when deciding what tools to use in order to analyze the markets and select trading opportunities. Looking at the selections available as well as the tools offered in today's advanced trading software, it is easy for one to become overwhelmed.
Market Moves
Stocks that participate in the same trend direction as the broad market will move further and faster in their trend. Those which are moving in a trend that is counter to the market will have difficulty moving large distances and therefore, usually offer less profit potential
Adding Water to the Tea Leaves
Last week, I responded to the claim that technical analysis was akin to reading tea leaves and held no place in proper financial analysis. Anyone who has used technical analysis knows the value of it in order to identify the most probable direction and timing of market moves. In the same spirit, I do not want to downplay the usefulness of fundamental analysis either.
Reading the Tea Leaves
I struck up a conversation with the person who was seated next to me. It turns out that he worked for Lloyds TSB Bank. His initial comment to me when I told him I was a trader and used technical analysis for trading decisions was, "Oh, so you read tea leaves!"
