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Found 109 results

  1. Beginner

    Hello I am interested in starting day trading, I have been trading the last year in long term investing but lately I have been getting really interested in day trading. I am from Canada and would like some pointers on where to start and what softwares, screeners, platforms etc to use here in Canada. Thanks in advance!
  2. EURUSD: The pair looks to weaken further as it holds on to its downside pressure. On the upside, resistance comes in at 1.1600 level with a cut through here opening the door for more upside towards the 1.1650 level. Further up, resistance lies at the 1.1700 level where a break will expose the 1.1750 level. Conversely, support lies at the 1.1500 level where a violation will aim at the 1.1450 level. A break of here will aim at the 1.1400 level. Below here will open the door for more weakness towards the 1.1350. All in all, EURUSD faces further downside pressure
  3. I want to learn about it as I am quite confused of which would be better. Please help!
  4. Hello, My name is Yana. I would like to establish here JustForex company. I would like to tell you a little bit about our company and gather a community of traders here and if you have any questions, I would be happy to help you here. JustForex offers several trading account types with a wide choice of trading instruments and everyone can find the most suitable one according to his preferences. Trading conditions: spreads from 0 pips, leverage up to 1:3000, mobile versions of MT4, order execution from 0.05 s. Please feel free to contact me here if you have any questions. And the question for traders here. What Forex broker do you trade with? And why? Let's discuss.
  5. Or are they the same thing? They seem so similar, but my broker (Jones Mutual) offers both, so what is the difference and which one is better?
  6. Who decides the price of Bitcoin?

    I am new to the world of bitcoins and cryptocurrency and this question hit my mind recently. Bitcoins are gaining popularity at a faster pace but will anybody make it clear to me that who decides the price of these bitcoins?
  7. One of the most important reasons why traders take big losses is because they often fail to recognize when a trade has gone wrong. You see, stopping out of a trade is probably the biggest fault of traders and investors. Often, this happens to young and inexperienced traders and investors, but I know many veteran traders and investors that struggle with this as well. Early in my own career I struggled with stopping out of a bad trade myself, so I can sympathize with this problem. The problem with taking a loss is really two fold. First, the trader has to admit that he is wrong. As you all know, as human beings we all hate to be wrong. The ego simply gets in the way and we all want to always be right all the time. The first secret in this business is to check the ego at the door. The market does not care about your the color of your skin, religion or anything else. It will move in the direction of the money and that is the bottom line. Once a trader or investor goes into what I call 'hope mode' the trade is over. I'm sure everyone has been in this position at one time or another. Simply put there is no room for ego or hope in the stock market. The market is always right and there is no reason to fight it. Here is the second problem with taking a loss, it hurts. Pain and pleasure are the two reasons why humans do anything at all. As a human being, we are always looking to have pleasure and avoid pain. Well, losing money is painful and many people would rather simply hold a losing equity than lock in a small loss and move on. I cannot tell you how often I see a trader hold a losing trade only to see the position move further out of the money. Many years ago I watched a day trader blow up a $200,000 account in a single day averaging in on a bad day trade. To this day I can remember the look on his face as his money vanished in thin air. Believe it or not, this trader could have exited the position with a $500.00 loss, but instead he kept averaging in and fighting the position until he was wiped out. As a rule, once you have your full position you should never average in on a trade. At that point, it is critical to know where your max loss is going to be and stop out if that level is breached.Now when should we stop out? The answer to this question is not that simple, but here is what I personally do. I always place my stop loss below an important breakout or pivot on the chart. You see, prior breakout or pivot levels are usually defended when retested. After all, this is usually an area where institutional traders and investors got involved, that is why there is a pivot low or high on the chart to begin with. If that level is breached on a closing basis then I will move out of the position. So If I took a trade based on a daily chart pattern then I will usually check the daily and weekly chart levels. If there is a major pivot on the weekly chart then I will use a week chart close as my stop out level. While this method may not be perfect, it has saved me from much bigger losses when I have been wrong. Nicholas Santiago
  8. Best way to learn option trading?

    I have been learning binary options and crypto trading for a little bit now. Its difficult to find a strategy that works best for me because there is a endless amount of them. What is the way that you found the strategy that worked for you or fit your trading style?? I have been trying alot of different ones but cant seem to find one that benefits me and its the most frustrating thing.
  9. So I was wondering, what software do you guys generally like? Trade Station, Ninja Trader, other? Personally I'd have to say flowshark, it tells where the buyers and sellers are coming in, it's quite powerful.
  10. Notice, to all my fellow traders, who wish to earn more money. I wish to share with you a discovery. The Web Analyzer tool that is perhaps the most reliable and efficient tool in the field. It puts at your disposal, strategies and potential trades suggest by professionals. This software is simply wonderful as it combines strategy, efficiency, simplicity and professionalism. It is very easy to use, and allows you, with ease to place your stop lost, choose your profits, and a lot of very useful things. This is the tool you need to make money in the long run. Personally, this software allowed me to reduce my losses and increase my earnings. If you want to make the most profit by reducing your losses, this is the best. I use it for almost 6 months and I'm not on it. I let you discover the presentation of this powerful tool in video (English translated into French) and if you have doubts, I advise you to do your own research. Presentation of the web analyzer Testimonials Download URL iMarketsLive.pdfTo register The Web Analyzer is probably the most powerful and valuable software of the company that designed it. iMarketslive (IML), the leading provider of Forex trading and trading software, is an American company operating in more than 150 countries around the world. It was founded in July 2013 by Christopher Terry, a trader who made more than 80 million profit on the financial market. iMarketslive has its own TV channel in the USA. It is a private company without any debt, which does not provide third-party service. It merges 2 major industries, namely the Foreign Currency Trading Industry called Forex, and the Network Marketing Industry. It has an educational platform that provides video lessons in several languages. https://youtu.be/vgmg3JSVHcw The goal of iMarketslive is to bring knowledge of trading, and to allow everyone to achieve financial freedom. It guarantees you: -A prestige leadership at the command of the company and traders. -A world class education, services and tools -A friendly community and support -Best performance of its Software / Tools -Significant risk reduction iMarketsLive is not an investment platform or a broker. You register to learn the trade of trader and you have all the means to arrive there easily. As if you were enrolling in a university to learn courses, with the difference that your knowledge of trading, you are automatically used to earn money. In addition to training tools, iMarketslive provides decision support software. Your registration entitles you to several hours of video and software. 2 Learning software: -IML TV '' Thanks to the master classes on Forex, become a consistent and profitable operator. Learn all about Forex trading, vocabulary and tips '' -IML Academy '' Increase your chances of success through the live mentorship program to learn how to apply what you have learned. Get involved with professional traders, with many years of experience’’ 3 Manual Trading Software: -SwipeTrade '' Receive Trade Alerts Suggested by Trading Experts '' -Harmonic Scanner '' Get help, with a high probability confirmation, to help you increase your chances of profit in the long run '' -Daily Swing Trade '' Once a week learn live from the best, and potentially win money with iMarketslive CEO Christopher Terry '' 2 Automatic Trading Software -FxSignalslive '' This autotrader software, which combines several analysis strategies, forecasts and management tools, gives you the best earning potential '' -Fusion Trader '' This software allows high frequency results, best probabilities and calculates high risks. '' Not to mention the famous '' Web Analyzer '' If iMarketslive is successful it is thanks to the training it offers and its software that offer a better guarantee of long-term gain, and a considerable reduction of losses on the market. Which explains in 5 years, she conquered more than 150 countries. In addition, iMarketslive allows you to earn money through affiliation. This is the marketing aspect of these tools, because at iMarketslive there is something for sale: Trading tools. A bit like if a school in your neighborhood paid you a commission on the registrations that you bring back to him. iMarketslive offers the best business plan ever seen in the world. You have residual income per month, ranging from $ 150 (3 referrals in your matrix) to $ 1000 (30 referrals in your matrix). You have a salary plan that goes up to $ 500,000 depending on the number of direct or indirect referrals in your matrix, and rank bonuses. It's something that combines efficiency, cost-effectiveness, reliability and security. How to register? Cost of registration 275 dollars 1- Click https://www.myimarketslive.co/paul29 and go to iMarketslive. It is impossible to register without a sponsor 2- Click GET STARTED 3- Click BECOME A CLIENT 4- Replace the form to create your account (it is important to fill this form with your real information and your real coordinates) 5- Your username and password ID that gives you access to the iMarketslive Educational Training Plate or you have all the tools and courses available to you to succeed. Contact: Euligeon95@gmail.com
  11. Anyone interested to join day traders chat room? Join here http://www.daytraders.chat/
  12. Advice to Begin Trading?

    Hi everybody, I am in little confusion with Tradorax, in actually I want to start trading so I was looking for the good trading websites which can assist me in testing strategies, creating expert advisors or indicators. So, I have found Tradorax easier for me but after doing some research there were some bad reviews and good reviews about Tradorax. It makes me little worried about starting with them but positive reviews are attracting me too. So, Please guys suggest me some good advise and also tell me if you have any personal experience with Tradorax.
  13. Trading Platform Suggestion

    Hi everybody, I'm relatively new on the trading online world and I would like to have a suggestion regarding the trading platform to use. I prevalently use Interactive Brokers but I also own other accounts and I would like to use all of them with a single software, instead of learning how to use several different platforms for every broker I trade with. Does anybody know a trading platform which is able to use data for more than one broker? And which is the best in your opinion?
  14. Simulation Market Maker

    Hi All, As a former City trader, experience has taught me...there is always something new to learn. I have been thinking of a way to cut a little bit of the learning curve required for folks to trade successfully.. I know demo accounts exist, but as we all know, live markets are, often, about long periods of tedium interspersed with bouts of mania!! Not necessarily, the most action packed way to learn quickly. So I formed a company which built a trading simulator for anyone who has an interest in how Market-makers (emulate them!!! they generally don't lose money)used to go about their business before algos dominated the world( although there is some algo stuff going on in the simulator)...its also supposed to introduce a little bit of fun into what can be a seriously stressful business.
  15. Don't Marry Your Trades

    Ultimately what we are trading, are numbers. Numbers are relative, what does a number mean to you? Does it mean buying a new luxury vehicle? A high dollar timepiece? Or does it mean, making a living on your own, without some jerk boss lording them self over your life? So when we look at our profits and losses while are we holding onto that trade, what sentiments come to mind? This is a "Put your money on the table, take your money off the table market" now, cut your losses at 7% Unfortunately we are or have been at one time, self programmed into the adrenaline rush of entering a trade, whether we lose or gain, we scour through forums (such as this one) to look for added incentive to keep the position, or take one. But ultimately what do the numbers say? No, not what one armchair economist thinks, im talking about what makes sense. A fellow I know, lost 50k in one trade a few years ago, why was this? Doubtless he kept up the incantation "its going to go back up". When in reality ,he should have cut his losses at the 7% line. When we see positive numbers on our trades, take them. Don't get married to your trade. The trade doesn't care about you nor your feelings, you have to be detached to make money trading. http://www.QDRV.com
  16. Pairs Trading Matlab

    Good morning everyone I saw a pairs trading webinar on the topic and found this code. I can not understand these two pieces of code, anyone is kind enough to explain % The strategy: % 1 Compute residuals over next N days res = series2 (i: i + N-1, 1) ... - (Reg1.coeff (1) + reg1.coeff (2). * Series2 (i: i + N-1, 2)); % 2 If the residuals are large and positive, then the first series % Is Likely to decline vs. the second series. Short the first % Series by a scaled number of shares and long the second series by 1% share. If the residuals are large and negative, do the % Opposite. indicated (i: i + N-1) = res / reg1.RMSE; s (i: i + N-1, 2) = (res / reg1.RMSE> spread) ... - (Res / reg1.RMSE <-spread); s (i: i + N-1, 1) = -reg1.coeff (2). * s (i: i + N-1, 2); end end Thank you very much for your cooperation ps do you know where I can find some code on the pairs trading?
  17. Important Dates for Gopro.

    What GoPro Has Done Right Now that the stock has surpassed the 90 mark, the owner has a worth of over 5bn (still holding 48% of the company after IPO). It raises the question as to what has Gopro done right? 1. Actually SELL something. (I’m looking at you Facebook) I’m not saying that you need to sell something physical, but when it comes down to it, people have faith in companies that actually do something. 2. Life is a popularity contest. I’ll quote Jesse Jones on this one “What other company do you own the product you trade?” (Forgive me if the quote is off Jesse). Simply put, Gopro is in people’s faces day after day. Every time you go on YouTube, there will be a new video up, and many people, including myself, own one. They aren't just selling an idea; they are selling a physical product attached to an idea. Business side: What have they done right? A few key points here you will see effect the stock in the coming months. 1. Their launch date was chosen to perfection. 2. Mid October they are slated to launch a new camera. This will be perfect timing if the stock does falter, breathing new life into the company. They will be on the front page with this move. Not only will it help their stock (assuming they don’t have a bendable camera #bendgate), but they will reap the rewards of the increased media attention from their successful IPO. Free advertising. 3. Here is the big one. Their lockup expiration is 12/23/2014. Christmas Eve. The last point is what I will end on. They have crucially chosen a time to allow for their 180 day lockup period to end on Christmas Eve… This goes in the best form of announcing any kind of bad news late on Friday to let the market forget about it over the weekend. How do you prevent a sell off of company stocks post lockup period? Provide the sellers with one of the quietest times of the year in the stock market. Well played Gopro. A bit about me: I'm a Futures and Forex trader who has been personally trading for years. I find all aspects of trading interesting, and on occasion, like this one, I even write articles on the stock market. Trader psychology has facinated me since the first time I moved from a paper trading to real live trading. The difference sparked an interest that I write about today.
  18. Today, We would be going back to the basics and understanding " How Forex works ?'' As you may know any other market demand and supply determine the price of an asset, in this case the asset is the exchange rate between one currency and another currency. Exchange-rate Regime This is valid for a currency regime with free floating rates. The other two main exchange rate regimes are: - the so called pegged float and - the fixed rate regime Currencies such as the Chinese Yuan are not floating freely as they are allowed only to trade within a limited range around a certain price level (pegged float). It is almost impossible to make money trading a currency like the Yuan which can only be traded in a fixed corridor. Other currencies are fixed completely to the value of another currency and are not tradable independently. Four Main Fundamental Factors If you trade the highly liquid major currency pairs which are available to trade via the Forexchampionship you need to be aware of the fundamental factors which influence the exchange rate between two currencies. The four main factors are: -Inflation -Monetary policy -Economic growth -Interest rates These factors are linked and influence each other. Furthermore the creditworthiness of a country and its status as a reserve currency play an important role. These are the most important fundamental factors which can influence a currency but certainly this list is not “complete”. Other Factors As we have seen lately with the tensions between Russia and Ukraine – geopolitical events can influence currency prices. The immediate reaction of the market after the events in Ukraine over the weekend was to buy the US dollar and the Japanese yen. The USD is still the world’s reserve currency No.1 and the yen is the favorite funding currency in the carry trade. In times of crisis investors seek the “safe haven” of the US dollar and carry trades get unwinded as they are considered risky. Conclusion If you are aware of what’s driving a specific currency fundamentally and if you manage to combine this knowledge with technical analysis you have a good chance to succeed in currency trading.
  19. Are there any regulated binaries brokers out there?? (that aren’t from Cyprus). I'm not much of a forum person but this question has been bugging me. I definitely feel like I'm being ripped off if I'm putting money into overseas accounts. I've been trading Forex and metals for years but I'm interested in binaries now. Are there any New Zealand or Australian ones?
  20. NSFX

    NSFX has been a great broker, providing great trading conditions, personalized to my needs, with the help of their account manager. The service is very good, close attention to detail and to the client needs. Easy withdrawals as well.
  21. Secrets of Trading Gold.

    TRADING GOLD “ The desire for gold is the most universal and deeply rooted commercial instinct of the human race.” Gerald M. Loeb, EVERYONE’S TALKING ABOUT GOLD – WHAT IS IT ALL ABOUT? Human beings have long valued and treasured gold for its inherent lustre and malleability. In fact, gold has been used in human commerce since the societies of the ancient Middle East over 2,500 years ago, making it the oldest form of money still recognized today.Gold’s long track record as a store of value despite wars, natural disasters, and the rise and fall of great empires means that it is generally seen as the ultimate “safe haven” asset. Therefore, it’s not surprising that interest in owning and trading in gold has skyrocketed in recent years with the onset of the Great Financial Crisis in 2008. Gold prices have risen in sympathy, hitting an all-time high above $1900 in late 2011. In this brief guide we will discuss the major forces that drive gold prices, along with some of the common methods for trading gold and a brief overview of possible trading techniques. THE MECHANICS OF GOLD TRADING Physical gold is valuable because it represents many of the qualities of ideal money. It is scarce, durable, portable, uniform across the world, and widely accepted—in part due to its long history of being widely accepted. However, in the current digital world, few traders actually take physical possession of gold bullion. Instead, most traders focus on trading the current “spot” gold price, which is based on the price of the most active futures contract on the COMEX (Commodity Exchange) in New York. For all intents and purposes, you can trade gold as you would any other trading instrument at GFT Markets. Two of the most common ways to trade the price of gold are through CFDs or spread betting. Both of these products offer leverage, meaning that traders can control £1,000 of gold with less than £1,000 of margin. Leverage can offer great potential for profit if the market moves in your favor, but it can also lead to a large, rapid loss if the market moves against you. Therefore, it is essential to practice good risk management and place a stop loss with every trade. FACTORS THAT INFLUENCE ITS PRICE Gold is one of the most difficult financial assets to value. As we alluded to above, gold is similar to a currency, such as the U.S. dollar or the euro, in many ways; unlike these more commonly traded currencies, though, gold is not supported by an underlying economy of workers, companies, and infrastructure. In other ways, gold is more similar to a commodity like oil or corn because it comes from the ground and has standardized physical characteristics. Unlike other commodities, however, gold often fluctuates independent of its industrial supply and demand. One of the most reliable historical determinants of gold’s price is the level of real interest rates, or the interest rate less inflation. If you think about it, this relationship is relatively straightforward. When real interest rates are low, investment alternatives like cash and bonds tend to provide a low or negative return, pushing investors to seek alternative ways to protect the value of their wealth. On the other hand, when real interest rates are high, strong returns are possible in cash and bonds and the appeal of holding a yellow metal with few industrial uses diminishes. One easy way to see a proxy for real interest rates in the United States, the world’s largest economy, is to look at the yield on Treasury Inflation Protected Securities (TIPS). GOLD TRADING STRATEGIES As with any trading instrument, there is no one “best” way to trade gold. Many traders from other markets have found that the technical trading strategies they employ on other instruments can easily be adapted to the gold market, especially given gold’s tendency to form durable trends. That said, longer-term traders could go a step further by using a filter based on the level of real interest rates discussed above. The below chart shows the relationship between gold prices and the yield on TIPS, a proxy for real interest rates in the United States. The inverse correlation is obvious, but it looks like the recent gold rally accelerated further as real yields dropped below 1% in early 2009. A longer-term look at the relationship would reveal that gold prices generally fell in the late 1990s, for instance, which were characterized by real yields above the 1% threshold. Therefore, longer-term traders may want to consider only buy trade opportunities if real yields are below 1%, a level which has historically been supportive of gold prices. Conversely, if real yields rise above 2%, traders may want to focus only on sell trades. The ability to use a filter based on real interest rates is one of the unique features that long-term traders can use to gain an edge when trading gold, but the trading strategies and opportunities in trading the world’s oldest “currency” are truly limitless.
  22. 2013 Review: The Year of the Taper

    The big focus for the forex markets in 2013 was on whether or not the US Federal Reserve was going to start tapering its $85 billion a month bond purchases. It hinted at its meeting in May that it wanted to start reining in its quantitative easing programme unleashing considerable volatility. After some poor communications, volatility and speculation the Fed finally announced in December that it would start tapering at a rate of $10 billion a month. In retrospect it communicated the event well as the markets took it as good news – a sign that conditions are returning to normal. Nonetheless, the run up to the taper saw many emerging market currencies take a hit particularly in countries with large current account deficits, which had become dependent on the Fed's largess. The Euro – a surprise winner Surprisingly, the EUR turned out to be one of the best performing currencies in 2013. On Dec 23 the EUR was 103.79 versus a basket of 21 currencies, compared with 99.22 the same time a year ago. And 2013 didn't start particularly well for the single currency. Amid the usual concerns over the state of the peripheral Eurozone economies one them, Cyprus, had to be bailed out to the tune of EUR 10 billion in March. The political furore which accompanied the whole episode reignited concerns over contagion and even a break-up of the EUR. The Eurozone pulled through and as the year wore on it appeared that the leading peripheral Eurozone economies were beginning to stabilise and even show signs of growth. Meanwhile, German chancellor Angela Merkel, considered by many to be the Eurozone's real leader, won a decisive election victory. Also, the Eurozone managed to make some slow progress on a bail-out mechanism for failing banks. USD shrugs of political paralysis USD was also a star performing currency despite a show of very divided politics in the US, which led to a government shut-down in October 1-16. Democrats and Republicans were eventually able to come to a longer-term agreement over the US budget heading off another damaging shut down in the new year. Against a basket of the major currencies USD was 76.33 versus 73.12 the same time a year ago. But while the politicians were busy arguing the US economy was recovering as was the key real estate market. This enabled the Fed to announce the start of its tapering – a very bullish event for the USD. Also, Janet Yellen was nominated to takeover at the Fed from Ben Bernanke on January 31, 2014. It will be her job to see through the end of quantitative easing, which is unlikely to be a smooth process. Abenomics hammers JPY Whilst the Fed was shifting to taper mode the Bank of Japan was just getting started in a bid to banish deflation and restore growth to Japan. The policy became known as Abenomics with the BoJ aiming to double the country's money supply. JPY was also a target for Japanese officials who desired a rate of UJSD/JPY 100. They got their wish. By late December it was flirting with levels of 104 and looks set for further weakness. UK recovery gather pace The UK economy in 2013 looked its best in five years. With an eye on elections in May 2015 the UK government initiated a series policies to stimulate the all important real estate market and eased up a bit on its austerity measures. Towards the end of 2013 the economy was growing at an annualised rate of 1.9% and real estate prices were rising strongly. This led to the Bank of England deciding not to extend its quantitative easing programme beyond GBP 375 billion. In June, former Canadian central bank governor Mark Carney took over at the Bank of England – the first foreigner to do so. Cable is looking to finish slightly higher than this time last year following a rocky performance between March and August.
  23. There are different interpretations of success, reaching form “participation is everything” to attainment of wealth and fame. Let us take the same range of interpretation for trading/investing then it would read as follows: “Success is making money” to “success is attaining wealth”. Trading is a professional business and professional attainment is measured on score cards. Fund managers performance for example is measured in how close the fund performs to the referring index. For funds, which relate to large caps or the overall stock market, the S&P 500 index is generally used as the base line. If you want to do the same as a private investor, take SPY: The ETF of the S&P 500, which has a year-to-date-November-2013 performance of 27% growth. If your trading/investing account grew with the same rate of return, you met the index. In case you run on a lower return rate, you are in good company, because most of the fund managers: Mutual Funds, Exchange Traded Funds, Hedge Funds are not achieving the average fund performance either; only a small number of funds is beating the S&P 500, where the best in class run at double the return rate of the S&P 500 (We will report separately in giving you a detailed overview on Hedge- and Investment Fund performance). Let us take a look at the top 10 stocks of the S&P 500 and their year-to-date-November performance: 1 Exxon Mobil Corporation Common (XOM): 8.0% 2 Apple Inc. (AAPL): -1.1% 3 Microsoft Corporation (MSFT): 42.6% 4 Johnson & Johnson Common Stock (JNJ): 32.2% 5 General Electric Company Common (GE): 25.8% 6 Google Inc. (GOOG): 43.7% 7 Chevron Corporation Common Stock (CVX): 10.8% 8 Procter & Gamble Company (PG): 21.6% 9 Berkshire Hathaway Inc. Class B (BRK.B): 24.2% 10 Wells Fargo & Company Common Stock (WFC): 26.0% The results show that we have a wide spread of developments, reaching from -1.1% (AAPL) to +43.7% (GOOG), with an average performance of the top 10 stock at a return rate of 23.4%. Take a look at the Berkshire Hathaway Fund performance in relation to the S&P 500: -2.8%, which would be seen as an average good performance for fund managers. However, had you bought SPY-shares, you would have been better on. How can you do better than average and most important, how will you be able to produce wealth, when the markets might not give such a positive development in 2014? You need a trading or investing system, which shall give you the following: Seven Critical Elements of a Trading Flexibility to trade/invest in various assets. Why various assets? In case stocks halter, institutional money might flow into assets like commodities, currencies, treasuries and you should be prepared to participate in institutional money moves when they happen. A system, which lets you produce income if the markets move up, down or sideways. In average, markets drop with three to five times the speed they grow. Hence, you should be ready for applying short trading strategies applicable to all kind of account holdings: IRA, 401(k), Cash, Custodian, and Margin. Clearly defined entries and exits: Institutional money is moving the markets and institutions leave their trace of directional intends. With the right trading system on hand, you can spot and trade along with those actions. Focus on spotting and trading along with institutional money moves, produce constant income and reinvestment. Such method makes you independent from picking the right stocks with long term growth. Imagine, you were able to win two out of three trades, with an average trade duration of four days, aiming for a 1.5% return/trade, making income to the up- or downside; then you are striving for an annual return of 62%, regardless of the directions the market take. If you can apply this method successfully, you will beat the best hedge fund managers of the world by far. Risk management: Professional traders have clear guidelines of how they act. As a private investor/trader, you need the same: Define the odds ratio for every trade and adjust the lot size of your investments to hedge and leverage your positions accordingly. Have trade repair strategies in place, helping you to turn potential losers into winners for all account types. Have a method to spot key assets on the move. Never fall in love with a stock or asset. No stock has to grow. The performance of an asset is the result of supply and demand. Apply a system which helps you to visualize when changes in supply and demand occur in an asset and be part of the directional move. [*]Journal your performance to see where you do well and where you have needs for improvement. Pros of every genre: Sports, theater, movies, trading, do this and you need to do the same to strive for constant improvement and long-term trading success. Clear cut documentation for every trade situation and asset, so you can always go back to the drawing board for revisions. Hence, please consider: Those who fail to prepare, prepare to fail. Good trading. Thomas
  24. Types of Traders

    .. Apparently I'm a shark. (I would have liked to think I was a bull!) What are your thoughts on this quiz? Would you say you could relate yourself to any of these animals?
  25. How Can the Chaos Theory be Applied to Forex? Chaos Theory is a mathematical theory that studies systems, and how small differences in their initial conditions can have majorly differing outcomes. This is often explained and related to as the butterfly effect. This theory is that a small initial condition such as a butterfly flapping its wings could cause a large difference such as a change of weather on the other side of the world. Famous forex trader Bill Williams was one of the first to suggest that Chaos Theory could be applied to the markets, and devised a strategy behind it. The principle behind his ideas is that psychology plays a large part in success, and that the key is to find determinism within events in the market. Traditionally, traders will use technical and/or fundamental analysis to work out which way they think prices are going to move, but Bill Williams believes that this is an inferior way of trading, because neither method works for the dynamical system that is the real markets. There are two critical aspects that must be understood for Williams’ theory to work. The first is having confidence in your own judgement, and the second is proper understanding of the structure or dimensions of the market. According to Williams, there are five dimensions to the market, and analysing each one will reveal further information, building a bigger picture each time. These sections are the following: • Fractal – Trades should not be made before the first fractal appears; indeed, any signals from other dimensions can be disregarded initially. A buy fractal is five consecutive bars, in which the middle bar is the highest. The opposite configuration would be a sell fractal. • Momentum – The Awesome Oscillator illustrates the current market momentum of the last five bars. They are compared with the previous 34. • Acceleration / Deceleration – This dimension measures the acceleration and deceleration of the market momentum, by looking at the momentum and the five bar moving average. • Zone – The fourth dimension is known as the zone, and appears when the momentum and acceleration (or deceleration) are of the same direction. • Balance Line – The last dimension of the market is the balance line, which is the level at which the price would be if chaos was not having an effect on the market. This ‘chaos’ is any kind of information that might be hitting the markets. It is also described with the Awesome Oscillator. The idea is that it requires less energy for the price to move away from this line.
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