Some Trading Types and Styles

This is a series of small articles to help with some of the basics in Trading in general.

The emergence of various trading platforms and technologies have made some trading types more accessible than ever. One of the cornerstones is the use of communication  networks that have created 24 hour markets  and round the world markets. One big example would be Forex. This is dealt with in later  trading courses.
Let us start with After Hours Trading.

Traditionally the hours for the US stock market have been between 9:30 a.m. -4 p.m Monday through Friday excluding holidays.  High net worth individuals could trade outside those hours. Online trading  was opened up to these individuals from the 1990s. Later,trading was provided for people such as day traders or any person who wished to trade.
The Electronic Communications Networks, or ECN’s, enable investors to make trades after the stock market has closed. This uses an Internet connection.  After hours trading normally requires a broker with access to a regulated ECN. The brokers matches your buy order  with another investor who wants to sell. If there are no takers, your order will be posted and hopefully there will be a seller that is interested.

Here are the basic steps you will need to follow to start trading after hours:

1. Find a brokerage firm that has after hours trading and open an account with them.  It is vitally important to fully understand all the fees associated with any trades you may make. Brokerage firms will have a minimum amount required for opening an account.  All firms will also have specific rules for after hours trading. Ensure you understand all the requirements before you begin to trade.

2. Once you’ve opened your account, you will need to make sure it is funded according the the brokerage and regulatory body rules.

3.   Take some time to find which stocks you want to trade.  It’s important that you learn how to properly research stocks before you start risking your money.  There are a lot of places that can teach you the basics of stock market investing, this is a very valuable education and not something you want to skimp on. Check out some of the other articles on the Blog to source these courses.

4. Make sure you know exactly what you want to pay for the stock, or what you want to get for it if you are selling, before you place your orders.  Most after hours markets only allow limit orders ( which means that you have to specify the exact price you are willing to take).

5. Place your market trade.  Once you’ve set up your exact price you can place your order on the brokerage firms ECN.

6. You will receive an order acceptance by a member of the ECN who wants to buy or sell the same stock you are looking for. 

7. If your trade was successful you will receive a receipt informing you of that fact.

This is a very high level overview but should give you some indicators of the specifics needed to trade after hours.
Now we will look at active an passive trading types.

These are key investment decisions. Do you want to be micro managing your investments or do you want to let someone else do the work for you?

There are definite pros and cons for each investment type. So here are a few things for you to consider when you’re deciding between active vs passive investing.

Active investment is used by people who invest in the stock market.  They will monitor various aspects of the market and buy and sell stocks on a fairly regular basis.  The idea is to make more money more quickly and to be able to react to the markets natural volatility. 

Passive investing is more about a long term, buy and hold approach and is usually done by investing in IRAs, Mutual Funds, and Bonds. This is the approach many people will use when it comes to saving for retirement or for college. For the most part you can expect to make the same amount of return on your investments as the market makes. 

For example, if you want to calculate the amount of money you will earn on a given investment you can just look at the averages of what a certain market has made over the last few years.  You will likely get a similar return on your investment.

Many people who believe in active investing styles believe they can get better results than the markets get, which is the biggest reason they will follow this investing philosophy. However, they do incur more risks along the way also.

For the most part, an active investor will be a little more hands on and do-it-yourself and for this reason there is definitely a learning curve.  You can’t just jump in and start buying up stocks without having some insight as to the best method of picking stocks to invest in.  Remember, you’re not buying a ‘stock’ per se, you’re buying stock in a company.  The amount of money you’re likely to make on any given investment is directly tied to how well the company performs.  While you will never have any guarantees you can do a little research into the company and it’s management as well as past performance to get a better idea of their potential.

When you go with a more passive approach to investing you will, to a large degree, be handing your money over to someone who will manage your funds for you.   They should have the expertise to pick the best possible investments for you.  If you choose this method it’s still very important for you to carefully pick the person who will be investing your money. Remember, most of them get paid a commission when they make a trade and they will get paid whether or not they actually make any money for you.  You should still be involved if you choose this method.

There are many strategies to stock investing and while both active and passive have  pros  & cons , with careful training and advice you can make a success of either type. It is also possible to take portfolio approach and use active investment for high risk and passive for a longer term back up. Also consider other investments as well such as metals as a hedge if things get too volatile.

Is the US Dollar loosing its shine?

 

dollar

Source: Fifth World Art

The Dollar has been a strong currency recently. There is a change during the last few days. With all the outcomes form QE forever, maybe this is a long term senitiment. Historically, “digitizing” or in reality printing money to stimulate an economy, can lead in inflation and currency devaluation. Something to keep an eye on long term.

Binary Options Daily Analysis: Dollar Bearishness in the Spotlight Today!

“The GBP/USD forex binary option is higher this Tuesday by 0.07% at the $1.6083 level. The dollar has also lost a lot of ground vs. the euro and the Aussie. Traders are of the view that further losses could occur today. This may explain why buying into …”
http://www.insidefutures.com/article/812895/Binary%2520Options%2520Daily%2520Analysis:%2520Dollar%2520Bearishness%2520in%2520the%2520Spotlight%2520Today!.html

 

 Watch the trend on this carefully as you may have to move fast to benefit.

Yahoo Analysis: Is this the Calm before the Storm?

waiting

Source : wikimedia.org

Options  Trading in the possible fiscal cliff environment is something to get prepared for. Some traders are alredy doing this. They are getting prepared for the multiple impacts of “Taxmegedon”, the Middle East, Europe, the US Elections and now even Latin America. The electorial impact is discussed in detail below.

Analysis: Options  traders get set for fiscal cliff, close vote – Yahoo …

“From Yahoo! News: (Reuters) – Options traders in the U.S. stock market are getting their bets in place in case the U.S. economy tumbles down the “fiscal cliff,” or …news.yahoo.com/analysis-options-traders-set-fiscal-cliff-close-…”
http://news.yahoo.com/analysis-options-traders-set-fiscal-cliff-close-vote-204205271–sector.html

 

 Whoever wins the elections will be facing a difficult time and wil have to make some tough choices. What do you think is going to happen?

Gold options show have a load of bears and bulls.

A confusing headline for a confusing market. Gold in the long term is heading up. It may even be a shelter for the turbulent times coming in Europe. There is a fight to keep countries like Greece in the Euro. This in turn leads to some opinions that Gold will be a safe haven. The activities of the FED have led to a belief another stimulus is likely that will lead to an up on the price. However, others think it won't be enough , hence the bears. See the Reuters report below to get an angle.

gold

Image Source:www.anachrome.com via wikicommons.

Gold options show investors bracing for Fed let-down

"Options on shares of the SPDR Gold Trust, the world's largest exchange-traded fund backed by physical gold, that expire on September 22 also show investors have cut back on bullish plays. Open interest in calls on SPDR shares priced at $166.0, which …"
http://www.reuters.com/article/2012/08/24/us-markets-gold-options-idUSBRE87N0FV20120824

 

 Who knows what the future wiil bring. Long term Gold still seems to have it's lure.
 

Forex as an addition to Trading Options: “Easy Money?”

FX1Foreign Exchange and Stock Market Trading are often bundled together in the public perception.  Forex is advertised and an “easy money” activity. However, that idea is both risky and an over-simplification.  What I intend to cover here will try to give some explanation of the characteristics of Forex , your characteristics to trade, and the differences between stocks , options  and Forex.

The Differences between Forex and Stocks

The Stock market is essentially an enabling  forum for buying and selling of stocks for financial reward. The stock represents the monetary value that a particular company has raised. The money is given by investors (stock or shareholders) to a company . The money is meant to be used to expand the company and thus create a profit. To invest and trade in stocks requires  information on a vast number of companies and trends. In most cases people will tend to go for niches they understand. Stock Markets work around the globe in a series of country based financial centres.  These centres have normal business days as you can see by the opening & closing bells in Wall Street.
The Foreign Exchange Market has several abbreviations; FX and Forex. It is where currencies are traded. It is a huge market, over 3 times larger that the combined stock and futures (options) trading markets.  In this market currencies are traded as pairs; you buy one currency and sell another. This is normally done via a registered broker.

What type of approach is needed?

To carry out trading requires some personal characteristics. As I said in the headline, many see Forex as the route to easy money. People get taken in by some of the scams and promises losing a lot of money. To make trading work you need to invest time and have patience. You need to be the type of person that can keep cool and not go into the gambling mentality. The risk element is there, but it needs to be a calculation.
Your financial situation is also a key factor, losses can occur and you need to be able to afford them.   To work in Forex requires thinking as a businessman, there is risk and reward. The type of person who s looking for a way to get rich quick without any effort will most like end up very poor.

How to Start

The first step is to understand the market and the forces behind it.  Get to know who trades currencies and why? This will allow you to identify successful trading strategies and use them. The main  FOREX: players  are governments, banks, corporations, investment funds, and traders. They all have specific rules and regulations. Individuals (traders) do not have these guidelines. To begin trading look at the strategies the main players follow and try to emulate them. In later articles I will go into more detail and suggest some resources to do this. Here we are just beginning the overview.
To begin, one of the main skills need is the application on basic money management. This means understanding what equity you have  available and how to limit any risk. The mechanism to do this is the stop loss , used in many trading environments. You set an affordable level to lose, and automate the pull out of a trade.  The tactics involved in applying this tool is key to trading in Forex.

I hope this brief introduction is useful to you. Later we will add more articles and go into greater details, covering  different world markets such as Asia showing the differing approaches needed.

The Ultimate Trading System For Stocks, Etfs

If you have invested in stocks for a period of time, can be heard: in stock most investors lose money, only the minority of investors can make a profit. It is true, all people have dreams to make money on the stock exchange, but most of them, about 70% -80% the investor will fail, many inexperienced investors lose money ultimately very easily.

If you are a beginner in stock exchange, after losing money, you probably think that you need to learn more about technical analysis or worry any more news … So start reading and learning from books, videos, newsletter writing, maybe some many membership sites … And you tried to automated software that guarantees to get rich … And, of course, the guru of the bag. Of course these guys know what they are talking about… Is possible after its recommendations after all these trying to, potential is a little disappointed. The result can be slightly improved, but still not satisfied with it.

The first reason is a psychological problem: their emotions. Most people make decisions based on emotions, not logic. Two emotions fear and greed of rationality of clouds. This leads people to make decisions, investment losses. For example, “fear of failure”-this decimated most traders and investors and leads them to be frozen and no opportunities. Usually, they have heard many horror stories about people losing money in the markets and are therefore fears have good opportunities. Worse yet, leave their business or investments prematurely when take a look at a small loss leads to lose and not for profit or investment.

Another cause of frequent must not have a business plan. Need a plan before the trade. You need to know what is the price of entry and positions is rational. After the purchase of stocks, should know when and how to make the winners run or minimize losses.

This was for two main reasons. Of course, there are other reasons, such as lack of patience, lack of knowledge with the stock markets …

On the stock market, trading system is a tool to improve the success of the investment. Is simply a plan, including its investment strategies, the guide of market and trade regimes. A good system will help you to determine the points of entry and exit of commercial stocks. These points, known as buy and sell signals, without ambiguity or subjective elements. The main objective of a trading system is to help you make the decision, manage risk and increase profitability, including to help eliminate the emotion of trading.

Wall Street has many great sayings. One is “cut the losers and allow their current winners”. Many people only care about buy, buy in the song “Let your winners Run” because it also bought Wall Street buying and maintaining the philosophy. However, unless you plan to “Let your winners run” until retirement-will be required to sell at some point. When selling. In particular, the sale of a winner?

In our view, the starting point is more important than the entry point. Our system, including a large number of rules for building our exit strategy, for the purposes of probability and statistics. It has proved very effective, and still improve our technician.

We also have a good strategy when loss loss occurs, you know when and how to sell, will help you quickly reduce their losses. You will not lose too much bear market even during the recession. Risk is under control.

To ensure that our commercial proposal followed can lead …

100 Trade Jack | Trade Stocks Live With Jack

Even my Office: when to buy buy, sell, auction when I rest. The money stays in your account. It will be followed and manage their business. They are investing money with me.

After my Office should take 5 minutes a day. There are numbers of days not commercial at all. Post a video every day to explain my thoughts on the market-video tends to be about 10 minutes.

If your goal is to learn to trade, you have no money in your trading account. You can treat as simply “business school”. I look forward to the show, watch the video and learn everyday.

I tried to make it easier to participate in for 60 days risk free. Offer a full refund within the first 60 days. Stop for some reason and get all their money. Just click on the button “Cancel” in the members area, and you will receive a full refund. You don’t have to Call to cancel.

My goal is to double every year-the return of 100% to my business account. Not sure it frightens. Yes, I am an aggressive trader, but hate to lose money and control of large exposures to the place. As a member, learn to control the risk.

Do Not. We have years where we fail close to 100% and we when we exceed 100%. In the long term, we can do very well.

Is there a simple way to reduce risk. Can try what equipment to buy and then buy only half or a third party to buy. For example, if the investment of 15% of my money on Google, you can invest only 7.5% or 5%. Then adjust the program to your risk tolerance.

B. had to follow my trades: buy, buy, sell what sells and stay out of the market, when they are out.

Yes. Will allow you with a series of short videos of anything you know show: here are some of the topics covered: (a) accounting agency orders effective positioning and horizon patience d. e. The importance of the profiles of the graph g. f. isolation modes (h) of the sail. As trade anger me. And much more.

Connection Member and see a simple screen that shows what I bought or sold and that people currently have. You can see a sample by clicking here the screen: screen commercial trade have trade bag for more than 25 years and Colorado Fund LP, a private equity fund, since 2004. Consult the Biography here: Jack Yes, make mistakes and you will see all attempts to analyze this right and that they are not in the video each day. Here’s how we learn and continue to tweak my approach.

It is surprising how many Mistakes can be made and still accept the dismissal. For example, when the stock market began its big rally in March 2009, has remained on the sidelines for 30 days-fun look. My time was not great and lost most of the event. Despite this “mistake”, concludes 2009 161%.

For some people, the IRA is logical. I have a training videos where I look at the advantages and disadvantages of trade IRA.

We’d like to hear from you. If you have any questions, please contact 928-303-7172 9 5 now normal mountain, or e-mail we sent instructions …

Penny Stocks Psychic – Selling Like Candy – 1 In 3 Conversions!

Urgent: former CEO of Wall Street promises: “each copy is trade, and I’ll show you (starting with only a few cents) …”. ” How to get rich quickly and easily, for the benefit of offices … “. “Part-time at home … And exploit the hidden potential of the most undervalued for massive 33,554% profits and exceptional $ 71, 694.27 or as little more than 3 months guaranteed!

If you are interested in an exciting new way anyone can take advantage of the tremendous power of the benefit of grant … without risk crazy or invest large sums of money (and what is the market upwards or downwards) …

A few minutes from now, with your permission, will start sending do specific crafts-same invest. my money in. .. they have exploded in value to obtain huge benefits, such as declarations, see: right of Inbox e-mails in real time.

Each week you will receive notices of stock carefully studied different (what their total time investment will be less than an hour per week) … and when you start to put these offices to work on their accounts quickly discover that the incredible influence of the stock market will become even smaller easy money investment made in his life.

These operations will not only be double and double the value of their investment … will change money away forever … give the passive type, automatic income elite 1% of investors take for granted-and that most people never get the experience, or even know it is there.

This can really happen, even if you have no experience in trading stocks … even if you start with a small balance …

Why so little-or even less: money that it would be necessary to open a certificate of deposit at your local bank to low interest rates, you will have access to the kind of profit opportunities that the rich often keep extremely profitable.

My name is Steve Parker and to make this type of promise and come back with this outrageous guarantee, because he had perfected this exact system while working as one of the most important financial advising companies on Wall Street.

I was out of College and was already a pretty impressive record behind me as “whiz kid”, who had taken my University investment club Fund and become a power of earnings in a few months …

You see, he had warned that, even when the market tanks again would be a handful of stocks shot up to 30% … 50% … 100% … 200% or more: in a few weeks, sometimes a few days.

I wanted to do this kind of profit on a regular basis (this, right?)… but knew who arrive after the stock picking “wisdom”.

Therefore the wardrobe of months spent in my room, while others are celebrating … rip apart from budgets, graphics studio releases and reading all these fast-growing companies, try to find a print model: after hundreds of hours … and more departure could count … Finally, hit me in the form of four steps, which I used from this pull-down record revenue, even when all is is affected by unpredictable market fluctuations!

He was the hero snapshot of my school investment club (gave us the greatest gift ever, the class) … but when I have my methods for “professional” in the stock market world, Wall Street “gurus”, used to worship me could well “connection” with cards (often lose money) which were piles of customers … or boat …

Stock Market Insurance For The Individual Investor

Not taking into account the current economic situation, it would be? But before you withdraw money from the market, read this.

Dear investors, no one knows what tomorrow will bring. The stock market can be irrational and unpredictable, but we know: the stock market will win, and the stock market will lose days. It is, therefore, the key to its success …Not to be missed! Or better not said, never accept substantial losses. This business rule is long and seems obvious. But the truth is that investors often do not believe that the consequences of the loss until it is too late. Do you have a plan, rather than risk control after her purse? More than a step away investors. Many traders spend all their time in shares of selection. Of course, choose the appropriate equipment is important for its success, but it is only half the battle. And it is a battle that doesn’t always win. No matter what level, will select the winners and losers, but only losers have the ability to destroy their wealth.

In spite of being adequately diversified, many investors have seen their portfolios drop by more than 50% or at the bottom of the last bear market. A loss of 50% must be increased 10% to more than 7 consecutive years break! You know that there is no need to extract money from stocks in a bear market, and trying to time the market is dangerous. But, given the value of its portfolio to reduce them month after month is too large for most investors. The problem is that they do not know when the recovery will start after a bad fall. When the market has recovered more than 30% in a single month at the beginning of 2009, many investors were sitting on the sidelines “safe” and lost. Fortunately, there is something that most can control the risk and calm the urge to panic and sell at the wrong time. What happens if it could be determined in advance their maximum losses to an acceptable level-determined by you-and could exceed this amount any bear market obtained or how your contribution has fallen? Does that make it easier to stay on the market and wait for the inevitable recovery?

Fund managers have used the list of sales options to protect their assets in stocks for years. It is easy to understand that the technique can be applied by individual investors. Just like an insurance policy with a premium, deductible and the duration of your choice. Is flexible and adaptable to any portfolio of stocks or mutual funds. And despite what can be heard on the safe values for options, the preset and limited risk. Like any insurance contract, you know all possible before you buy costs.

Secure titles to the individual investor is a 76 page ebook, easy to understand for investors of all levels. Provides concrete examples that illustrate each strategy and provides you with worksheets can adapt these strategies to your own portfolio. Each technique discussed was limited, it can define the risk. This information is useful for anyone who has an interest in stocks and mutual funds, regardless of the size of your account in a timely manner. I don’t know much about the options? A tutorial of options is included at the end of the book to teach the basic principles, including how to place your order options.

The investment is serious, with his money earned in the game. Your satisfaction is important to us. If you find this material is not for you or are not satisfied in any case, your purchase is backed by a total of 60 days, there’s no question is asked, money back guarantee.

Enjoy a special rate for $ 29.95 with …

Stock Market Trading Systems

Enjoy the reading of their roles. And take advantage of the role of art. For the GOM, there was a very early this morning, Monday, September 12, 2011. Will not play. Wanting only to confirm my opinion.

Yes it’s y! … and told here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=67007245. Thank you! Check here.

Just purchased and watched through his role. It sounds simple enough and the price is the final flag. Want to practice with my team and offices at BGU in my use the graph in 60 minutes!

Sounds like a great! idea. There you have an Exchange based on the most advanced system of 5% off the next week and only offer the current 5% owners of just half price. Find an email for this offer when the time comes. Good luck!!!

I just bought your e-book yesterday. They have never discussed how to decide how this game option-ITM and OTM, etc. ..? Thank you, mark, that price did not understand how to trade options. Essentially … I would like to … how to trade options strike price OTM. I think that me that I gain much amplified if the underlying moves in my direction … While he was still a low price for the entry. Also, make sure you choose month giving my time to expose the scheme. Options expire in a week, but I’m Trading the daily chart that cannot play for another week or three, and then I have chosen out of more than a month. If I am 15 minutes of working graph, and then expect action prior to the end of a week. Good luck!!! by the way, I have an eBook improved in a week or two that will have the most details and other signs and comments. They are offered half-price for those who have already purchased our first commercial system.

Hi Malcom. . only 5 per cent Trading system is a system of pure price … We have a system to upgrade that adds some technical analysis signals essay … delete some Whipsaw. Check here in the next week or two for output. However, only 5% of the system is good and at a fair price for a glimpse of what we do.

I want to get an overview of what you do, I found your article on public list interesting if not day trade Stockcharts.com but the ups, is this good for this type of system for exchanging graphics research to short-term trading game. Watch lists at the end of each night to develop trading opportunities. Thank you, great! Garrett, asked … Yes! … This is exactly how I was shopping today. Only 5 per cent Trading System provides the parameters for four different 4 trade terms: 5 min, 15 min, 60 min and every day. I use it in the opposite direction. . They also provide Stock scanner configuration, look for the daily requirement of the limit for a stock data, and then use one or more intraday time parameters more precisely my entry and exit.

(1) Be-mechanics is based on the worksheet? (2) if not, can the settings configured in Stockcharts.com? (3) Are everyday and variables up? (4) Making for variable configurations: can be used at any time or only some 60 min.:?

Hey Michael … 1 no, according to the worksheet does not … Show only ticks …