Whether you plan to venture into foreign or stock exchange, trading systems will help you become successful in this endeavor. But before proceeding, it is vital to first have an understanding of what they are and how they function.Trading systems pertains to specific rules or parameters that determines points of entry and exit, called signals, for a given equity. They are often indicated on a chart in real time and prompts immediate...more
Here are a few more ideas regarding creativity from Mr. John Cleese. Mr. Cleese spoke about putting in extra time and being persistent when coming up with creative solutions. Constant and conscious thinking about creative solutions also allows our unconscious to process the information in the background. I believe many of us have thought about problems only to find the solutions and answers later on and in some unexpected...more
I was recently scanning some performance databases of various trading systems and CTAs and noticed that almost all the tracking services have some form of a "hot list". These were usually a list of the best performing systems or CTAs over a given period. The typical time frames for measuring performance were usually 30 days, 90 days and a year. These lists are of interest to many viewers because they are consistently reported by all the leading tracking services year after year. The question is this…Are those lists of any value?It has long been my contention that such information is near meaningless. I have always felt that the best performing systems and CTAs of the past were not likely to be the best performing ones moving forward. To test my theory, I accumulated data from several of the top performance reporting sites. What I wanted to see was the previous year's best performers to compare them to the best performers of the next year. The idea was to see if last year's winners were a reliable predictor of next year's winners.The results of comparing many years of previous performance to the subsequent years of performance were as I expected. The information...more
An option contract is an agreement wherein the owner has the right to buy or sell a security or an asset at a particular price on a fixed date in the future. It is called an option because the owner of the contract is not committed to carry out the obligation of the contract if he or she feels that it is disadvantageous.There are two types of...more
Prior to making things happen and making them big, all that you have to firstly deal with is that of familiarizing yourself with as well as identifying the options trading indicators. This course of action is as essential as learning your ABC.Your ignorance to the jargons as well as with the indicators will only mean that you are pushing your luck...more
Swing Trading StrategySwing trading in Forex, is one of the best ways to make money in currencies and the reason why is - its simple to understand, fun and exciting to do and can make huge gains. Let's look at the logic behind Forex swing trading and how to make regular profits.Swing trading is based on the fact that markets respond to the supply and demand equation over the longer term but in the short term, trades push prices to far to the upside or downside when the emotions of greed and fear take hold. These short term price spikes never last long and prices soon return back to a more realistic value.Swing trading in Forex, aims to sell a currency when it becomes overbought and buy it when it becomes oversold and bank a profit as the price spike turns back down.So how do you swing trade successfully?Let's take a look at how to execute trading signals correctly and we will do this, in a bullish market although, the same logic applies in a bearish one. Swing Trading Strategy1. Look for a short sharp price move to the upside.2. Look at some momentum indicators to see if price velocity has moved to far to quickly, to make the currency overbought. Momentum indicators...more
If you are into trading, you will surely know about options trading. Most people assume that they know all the terms related to trading options and go ahead with their trading methods. Online trading has made tremendous advancement and you need to...more
CFD trading is essentially Contract for Difference trading. It is a derivative product that can be traded online. It is a system in which you can profit from changes in the stock and share prices. CFD trading is treated on leverage basis. This means...more
If you're looking for a solid strategy in trading, you want some highly probable risk/rewards, some strong money management and some direct, smart adjustments. How can you find all that in the world of commodity futures trading? Especially if you're...more
The trading of the stock options all the way through the exchange is called option trading. Since you conduct this kind of trading on the internet, you can also call it online options trading. To enlighten more, it also means that you can carry out...more
For starters, you have to firstly learn of the basics in trading. Included in the list of its fundamentals are the jargons which are commonly used by the traders-pro or newbie. It is a must for you to get a grasp of the meaning of those terms since...more
AppealFor a start the FX market is huge, transactions exceeding trillions of dollars a day, this eclipses all the other markets. This provides a huge amount of liquidity to trade forex in relation to other markets i.e. traders...more