If you have been TRADING as long as I have, you ought to agree with the statement that "one of the factors that most short-term traders like CFD and FOREX traders cannot make regular profits from the STOCK MARKET or the CURRENCY MARKET is because they trade too often (overtrade)".
This is exactly the habit, which I followed when I first started my trading career a few years ago. The number of times, which I had made huge amount of money in the mornings from scalping using CFDs and by the time the market was ready to close, I had given it all back, was numerous.
So I kept pressing myself for applying more control and self-discipline -- eventually, I managed to apply the discipline, which was and is necessary for any traders to come on top at the end of a each trading session.
As good traders, we must remember AT ALL TIMES that not losing in TRADES we enter, is just as important as winning the TRADES we get ourselves into.
For instance, I was very pleased with myself last night, I did not fancy opening one single CFD POSITION the whole day yesterday as the US MARKET looked unsure which direction it was going to head, but as we approached the closing times the MARKET seemed on its way for an upday, so I took this opportunity in opening 2 LONG CFD positions in ASX200 and the German DAX30 and to my delight when the markets opened in Europe this morning, I managed to close both positions well in profits.
I like to add another point, which a good trader needs to have in order to practise being a patient trader --- and that is vision about the markets he or she trades in -- the more clearly one can see what FACTORS move the MARKET the better timing a trader can apply in entering the trades within that market.
Thursday, 28 June 2007
Friday, 22 June 2007
Markets are very Edgy at the Moment
Short-term TRADERS would love it when there is volatility in the market .... and fears are necessary to have if the markets are going to be volatile -- and what type of traders are going to benefit most from this type of market's volatility ....?
Well, due to the very nature of what CFD trading has got to offer, I would say the CFD TRADERS are amongst the first group of traders who could make a killing when the market is going up and down in a short space of time during same day of trading.
Needless to say that in order to take advantage of a volatile market, one must be a fully professional Stock Market Trader.
Yesterday, was a great example of how the market's wild movements can really produce big rewards for us CFD TRADERS:
The Dow Jones started the session going down by about 90 points to roughly 13400 and within minutes it recovered all of its losses and more - soon after it was down again by 50 and up once more to a session high of 13565 and eventually ending the day up by 57 points at 13546.
So fears in the market can be great for short-term traders like the CFD traders and currently the cause of these fears are partly due to the Bonds' rates going up and also, some major selling off of the Bear Stearns hedge funds -- In the meantime if you are using CFDs for your trades, you may wish for more times like this as I do ...!!
Well, due to the very nature of what CFD trading has got to offer, I would say the CFD TRADERS are amongst the first group of traders who could make a killing when the market is going up and down in a short space of time during same day of trading.
Needless to say that in order to take advantage of a volatile market, one must be a fully professional Stock Market Trader.
Yesterday, was a great example of how the market's wild movements can really produce big rewards for us CFD TRADERS:
The Dow Jones started the session going down by about 90 points to roughly 13400 and within minutes it recovered all of its losses and more - soon after it was down again by 50 and up once more to a session high of 13565 and eventually ending the day up by 57 points at 13546.
So fears in the market can be great for short-term traders like the CFD traders and currently the cause of these fears are partly due to the Bonds' rates going up and also, some major selling off of the Bear Stearns hedge funds -- In the meantime if you are using CFDs for your trades, you may wish for more times like this as I do ...!!
Tuesday, 19 June 2007
Recent Market Rally
Has the recent Market Rally been justified ....?
Well, let's look at how it all happened:
Last Wednesday, the Beige Book Day, the market rallied (the Dow) 187 points, basically on no fresh news except a hint from the Fed that the inflation seemed to be within the expected range!
The following day came the results for the PPI which itself was above the forecast of +0.6% BUT the Core PPI was as expected and yet again the market reacted positively to these numbers and pushed the Main US Index, the Dow higher by another 71 points.
Friday, the market looked to yet another inflationary gauge the CPI -- the CPI itself was slightly higher than the estimated figure of +0.6% BUT the Core CPI emulated the previous day's C.PPI by matching the market's estimates at +0.6% AND YET AGAIN the market astonishingly rallied for the 3rd day on the same fundamentals by another 86 points as far as the Dow was concerned.
The extent of the 3-day rise was such that even the most optimistic of the bulls could not have thought they had been given another Christmas day in a short space of time, specially that early in the week some of the bulls were about to think that their run may have come to a halt when the US market had a very bad day on the Tuesday --- Even the slight chance that the bears may have thought they may have had in the sense of Friday having been the Options Expiry day, hence the possible volatilities, did not materialise in the sense of any opportunities for some consolations and markets finished the week on a very strong footing.
Well, let's look at how it all happened:
Last Wednesday, the Beige Book Day, the market rallied (the Dow) 187 points, basically on no fresh news except a hint from the Fed that the inflation seemed to be within the expected range!
The following day came the results for the PPI which itself was above the forecast of +0.6% BUT the Core PPI was as expected and yet again the market reacted positively to these numbers and pushed the Main US Index, the Dow higher by another 71 points.
Friday, the market looked to yet another inflationary gauge the CPI -- the CPI itself was slightly higher than the estimated figure of +0.6% BUT the Core CPI emulated the previous day's C.PPI by matching the market's estimates at +0.6% AND YET AGAIN the market astonishingly rallied for the 3rd day on the same fundamentals by another 86 points as far as the Dow was concerned.
The extent of the 3-day rise was such that even the most optimistic of the bulls could not have thought they had been given another Christmas day in a short space of time, specially that early in the week some of the bulls were about to think that their run may have come to a halt when the US market had a very bad day on the Tuesday --- Even the slight chance that the bears may have thought they may have had in the sense of Friday having been the Options Expiry day, hence the possible volatilities, did not materialise in the sense of any opportunities for some consolations and markets finished the week on a very strong footing.
Thursday, 14 June 2007
How to place Stops and Limits
One of the most important factors in accumulating winnings as a Stock Market Trader is knowing when to terminate a trade. This is more so when a trader is trading through highly leveraged trading methods such as CFDs or FOREX. Recently, Doug Newberry has given his views on this subject matter which I would like to share it with you:
Getting into a trade is often the most glamorous part of stock trading. Knowing which trades are likely to turn a profit and diving into those trades can make a day trader feel really knowledgeable and involved in the market.
Being a good trader doesn't only mean knowing when to get into a trade, it also means knowing when to get out. The following guidelines are meant to get you started, but remember that trading is a continuing journey of discovery about the tradable nuances of market moves.
Make sure you're familiar with historical support and resistance levels. Also, check out momentum readings as well as Bollinger Bands to inform you about where to put stop and limit orders.
It's also a good idea to use trailing stops. They will allow you to ratchet up a sell stop slowly as your positions change to be in your favor.
When getting involved in stock trading, sometimes avoiding mistakes is more important than doing the right thing. Don't place your stops according to how much money you need to make. The market doesn't distribute profits based on the needs of its investors. Just because you need to make 500 dollars this week and you can't afford to lose more than 250, the market doesn't really care.
Sometimes the amount of money you need to make will correlate with how you set your limits and stops. However, these figures rarely work out to be the same. Thus, you should never use your needs as a guide to where to place your stops and your limits.
Another important thing to remember is not to invest when you are "on tilt". Being on tilt means that you have just lost some money on a trade and you want to make it back quickly. Suppose you have just lost $300 on your last trade. You shouldn't set your exit limits to make all that money back on your next trade. After all, the smart limits on this next trade are not dictated by how well (or how poorly) you did on your last trade.
Stock trading "on tilt" is a sure way to lose money. Use the stock trading tips mentioned earlier to guide your trades rather than using impulses based on flimsy reasoning and financial need.
Always let the market determine where you should put your stops and how you should set your limits. Letting go of your expectations will help you be an objective trader and will increase your profits.
About the Author:
Doug Newberry founded Investing Systems Network. As one of its directors, he helps provide Stock Trading tools and services to more than 20,000 customers in more than 70 countries to help them become more disciplined, better investors.
Getting into a trade is often the most glamorous part of stock trading. Knowing which trades are likely to turn a profit and diving into those trades can make a day trader feel really knowledgeable and involved in the market.
Being a good trader doesn't only mean knowing when to get into a trade, it also means knowing when to get out. The following guidelines are meant to get you started, but remember that trading is a continuing journey of discovery about the tradable nuances of market moves.
Make sure you're familiar with historical support and resistance levels. Also, check out momentum readings as well as Bollinger Bands to inform you about where to put stop and limit orders.
It's also a good idea to use trailing stops. They will allow you to ratchet up a sell stop slowly as your positions change to be in your favor.
When getting involved in stock trading, sometimes avoiding mistakes is more important than doing the right thing. Don't place your stops according to how much money you need to make. The market doesn't distribute profits based on the needs of its investors. Just because you need to make 500 dollars this week and you can't afford to lose more than 250, the market doesn't really care.
Sometimes the amount of money you need to make will correlate with how you set your limits and stops. However, these figures rarely work out to be the same. Thus, you should never use your needs as a guide to where to place your stops and your limits.
Another important thing to remember is not to invest when you are "on tilt". Being on tilt means that you have just lost some money on a trade and you want to make it back quickly. Suppose you have just lost $300 on your last trade. You shouldn't set your exit limits to make all that money back on your next trade. After all, the smart limits on this next trade are not dictated by how well (or how poorly) you did on your last trade.
Stock trading "on tilt" is a sure way to lose money. Use the stock trading tips mentioned earlier to guide your trades rather than using impulses based on flimsy reasoning and financial need.
Always let the market determine where you should put your stops and how you should set your limits. Letting go of your expectations will help you be an objective trader and will increase your profits.
About the Author:
Doug Newberry founded Investing Systems Network. As one of its directors, he helps provide Stock Trading tools and services to more than 20,000 customers in more than 70 countries to help them become more disciplined, better investors.
Friday, 8 June 2007
Do You Want to be a Forex Trader
Forex or CFD? Although, these two methods of trading the financial markets have lots of things in common, but it seems to me that a lot more people are trading in Forex than CFDs. If you are thinking to join the millions of Forex traders already out there, here is some good tips by Phil Smulin:
Currency trading a.k.a. Forex Trading must be one of the most controversial subjects of our time and all with very good reason. The world of Currency Trading is no longer the exclusive playing grounds of Banks, governments and influential financial institutions; we live in an era where the Currency Market is available to anyone who can at least open a trading account of $300.00.Trading Currencies have never been more accessible to the individual than now. But like every industry there are a group of role players that make the rules and the obviously they are always winning (making money that is) despite of anything in the market place.
Thousands and thousands of individuals have tried their "luck" on the currency market the past 10 years but only a handful are making a consistent success of currency trading. The average live span of a self directed currency trader is anything from 3 - 6 months before they quit- these are figures that were announced by one of the biggest retail brokers a while back. This makes one think why only a handful are successful and why a whole lot of people claim they are successful currency traders while they are not. One can argue that people would very much like to be successful at currency trading and when they realize they are not making it they simply fake their success by ways of a website claiming that they have discovered the gold mine and the gold.
There are many ways to engage on your currency-trading journey and chances are that you will get hurt, in fact if you go to Google and type in the word learn currency trading will soon realize that every second guy on the Internet has a currency-trading product to sell you.
The proposed steps to start trading are to firstly familiarize yourself with the language used in the Currency Market Place and secondly you need to understand the rules of the Currency Trading Market environment. These two aspects are very important but the most important part is to learn how to think like a profitable currency trader. These three aspects are very important and they are the only potential barriers to prevent you from success. You need to get in contact with a decent Currency Trading service provider, someone who can introduce you to the right and important aspects of Currency Trading. We recommend that you look very selectively when you decide on such a currency trader service provider. Make contact with them and challenge them with questions like "why you should choose them to educate you on the subject of currency trading"? Also check out their website, most of these websites do not give enough information about currency trading and some of these websites simply look trashy!
If you are after decent currency trading education, support and mentorship, you do not need to look further than Euro Traders Euro Forex Trading System. This is a group of Currency Traders who decided to make their system available to the whole wide world and also to back that up with quality support free of charge. What make them different is the fact that they are actually anticipating market activity (like traders should do) rather than discussing what the market have done. "The proof is in the pudding", so the saying goes, so go and have a look at what Euro Traders have to offer and look at what their happy currency trader clients have to say about them
There is after all hope for you to become a profitable self directed currency trader, the question is whether you have the discipline to take the right steps to make it happen. To Your Success!
About the Author
Phil Smulian is a reviewer for Forex training specialists, Euro Forex Trading Systems (www.euroforextradingsystem.com) or for more info on currency trading (http://www.euroforextradingsystem.com/currency-trading.html)
Currency trading a.k.a. Forex Trading must be one of the most controversial subjects of our time and all with very good reason. The world of Currency Trading is no longer the exclusive playing grounds of Banks, governments and influential financial institutions; we live in an era where the Currency Market is available to anyone who can at least open a trading account of $300.00.Trading Currencies have never been more accessible to the individual than now. But like every industry there are a group of role players that make the rules and the obviously they are always winning (making money that is) despite of anything in the market place.
Thousands and thousands of individuals have tried their "luck" on the currency market the past 10 years but only a handful are making a consistent success of currency trading. The average live span of a self directed currency trader is anything from 3 - 6 months before they quit- these are figures that were announced by one of the biggest retail brokers a while back. This makes one think why only a handful are successful and why a whole lot of people claim they are successful currency traders while they are not. One can argue that people would very much like to be successful at currency trading and when they realize they are not making it they simply fake their success by ways of a website claiming that they have discovered the gold mine and the gold.
There are many ways to engage on your currency-trading journey and chances are that you will get hurt, in fact if you go to Google and type in the word learn currency trading will soon realize that every second guy on the Internet has a currency-trading product to sell you.
The proposed steps to start trading are to firstly familiarize yourself with the language used in the Currency Market Place and secondly you need to understand the rules of the Currency Trading Market environment. These two aspects are very important but the most important part is to learn how to think like a profitable currency trader. These three aspects are very important and they are the only potential barriers to prevent you from success. You need to get in contact with a decent Currency Trading service provider, someone who can introduce you to the right and important aspects of Currency Trading. We recommend that you look very selectively when you decide on such a currency trader service provider. Make contact with them and challenge them with questions like "why you should choose them to educate you on the subject of currency trading"? Also check out their website, most of these websites do not give enough information about currency trading and some of these websites simply look trashy!
If you are after decent currency trading education, support and mentorship, you do not need to look further than Euro Traders Euro Forex Trading System. This is a group of Currency Traders who decided to make their system available to the whole wide world and also to back that up with quality support free of charge. What make them different is the fact that they are actually anticipating market activity (like traders should do) rather than discussing what the market have done. "The proof is in the pudding", so the saying goes, so go and have a look at what Euro Traders have to offer and look at what their happy currency trader clients have to say about them
There is after all hope for you to become a profitable self directed currency trader, the question is whether you have the discipline to take the right steps to make it happen. To Your Success!
About the Author
Phil Smulian is a reviewer for Forex training specialists, Euro Forex Trading Systems (www.euroforextradingsystem.com) or for more info on currency trading (http://www.euroforextradingsystem.com/currency-trading.html)
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