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The Most Important Characteristic of Winning Trading Strategies Revealed
Traders and Investors alike are constantly seeking winning trading strategies, but these winning trading strategies continue to remain elusive for over 90% of all day traders. Why is that? What is it about winning trading strategies that makes them so difficult to identify? And why must you risk thousands of dollars of your own risk capital to determine if a trading strategy is a “winner” or a “loser”?
To help answer these questions about winning trading strategies, we’ve identified one key aspect of winning trading strategies that can help you to quickly filter out the overwhelming majority of the trading systems and strategies that you come across in your investigation.
This one key attribute of a winning trading strategy can be used to quickly eliminate most trading systems and strategies that you come across, leaving relatively few trading systems and strategies to examine.
The most effective winning trading strategies tend to be the most simple.
Quickly identifying winning trading strategies can be as simple as that. The best day trading strategies and systems tend to be the easiest to understand, learn, and master. They shouldn’t require knowledge of advanced statistical analysis, they shouldn’t require a highly complicated modeling program.
A winning trading strategy will be easy for the average Day Trader to quickly understand, learn, and then execute.
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Consider this: in the world of Technical analysis, most Day Traders don’t really “understand” the indicators they are looking for; they are relying on statistical analysis to “guess” market direction and movement.
But of course, if you don’t fully understand that particular indicator, how it is determined, and WHY the market should behave in a certain way, then can you really be sure that the technical indicator that you THINK you see is really there? By and large, most technical or trend trading systems are difficult to learn and master, and should not be attempted by anyone but the very most advanced day traders.
But simple trading strategies don’t rely on complicated technical indicators, or trend lines. These winning trading strategies are simple to learn, understand, and execute, and the results show.
As you consider a trading system or strategy, the very first question you should be asking about that particular potential winning trading strategy is, how complicated is it? Is it simple? Do I really understand it?
If you determine that the trading strategy in question is NOT simple, and cannot be easily understood or learned, you can quickly eliminate that particular strategy or system and continue your search, without wasting valuable time in additional due diligence and analysis.
- About the Author: Some of the most simple winning trading strategies can be discovered in the Prosperous Trading Video Boot Camp training series. To claim you very own FREE copy of the Prosperous Trading Video Boot Camp, simple click the following link:Click here for: WINNING TRADING STRATEGIESDiscover winning trading strategies in the Prosperous Trading Video Boot Camp; claim YOUR copy while its still FREE! www.TheGuerrillaTrader.com Article Source
Binary Options have now Evolved with the Introduction of Barrier Options
300% Barrier Options are offered on Gold futures and will trade on a variety of stocks, commodities and currencies in the near future at Start Options. When the market starts to become active and the Trader sees that Gold futures are trending with support a trade of a Call Barrier Option can be made at anytime during the trading period at the current price. When a Barrier Price above the Strike Price is set and if the Gold futures expires at the end of the trading period above the Barrier Price, the return is 300%. Put Barrier Options allow traders to trade barriers below the current price.
Barrier Options are available for trading in the $250, $500 or $1000 stakes on the Start Options platform.
The 300% return rate is significantly higher than standard binary options.
Check out Barrier Options. They add flexibility to the On-the-Go investor’s portfolio.
Financials and Energies Reviews on The Week of 13-9-10
When we are busy with our daily work in the new week, our experts also begin their weekly works to analyzed the futures markets to make sure that traders and have necessary information supporting their trading. Because of the limited time, this week we will check out the two typical market reviews to see how they work.
First of all, we will stop by the fiancial market since changes from here usually lead to others’ changes. It was reported that banks won’t have to make adjustments until 2019 on the amount of money they have to hold, which is used just in case there are large losses. The credit card industry, mortgages, and other loans will also see unique changes. Do you think that this is a good news or not? Shouldn’t this be done in a year or less? Loans may be more stringent and this may cause more harm than good for the consumers. The reserves will be 8.5% of the balance sheet to meet the requirements. The news may cause different feelings to people with different purposes.
There is a boost in the market this morning because fo the wews of growth in China and bank reform. This may shift trades from treasuries back into stocks. View back the past 2 weeks, the market has risen with hefty gains and seems to have the same attitude today. The bank stocks may gain steam today because companies have time to adjust. The Street takes this banking news as positive since there is a less of a chance that banks can topple the economy, like they did over the past few years.
Go next to the S&P! The S&P was up 9.7 to 1113.80 and the DOW was up 78 points to 10471.00. It can go higher if it goes past 1117.00 as there is resistance at this level. This level is important, especially when economic data comes in. 1030.00 level could be the next target.
For the long term changes we need to care, but first of all, in term of finance, we also cannot neglect changes in the currency exchange rates. Market keep running and we keep chasing.
End of the road of financials, we will turn to go along with the energy road. Let’s see the pipeline leak that the market saw on Thursday is still in effect here as Crude Oil gets bid for above $77 as the structure of the Oil curve rallies with the wti spreads gaining another 20 cents in each of the first two spreads over the weekend. During the time of Oct/Nov and Nov/Dec both trading -70. The Dec10/Dec11 contract is now at -470, as this has rallied +160 points in last week. Around the market, we can see traders are still buying this oil as this key pipeline is still shutdown. To compare, the S&P is above 1100 and the Euro/USD is above $1.28 as the oil market continues to rally. Look to see Oil try and test the $78.50 key resistance level this week with indicators pointing to a rally once again.
Natural Gas is now starting to look comfortable at the $3.70-$3.80 level. This may be a good news to traders in the floor. Our market analyst is looking at long opportunities in this market as he believes it will start to see a swift move to the upside. That Calls in Nov look very attractive right now leads him to think that this will be a great play as this market starts to make its way up.
You have just review how the financials and energies markets will be going on this week. You have noted down key points and may have your own decisions or plans in the next few days. Besides these two reviews, make sure you will not miss the other futures reviews and the daily futures price reports as usuale advised. Markets are changeable and interactive, don’t get any mistake!
- About the Author: I’m a trader in futures trading floor. I’m always eager to learn and share. Reading and searching are my hobbies. Article Source
Today’s U.S. Earnings Reports
Earnings reports (confirmed releases, sorted by mkt cap) BBY-Best Buy (BEST earnings consensus $0.44), KR-Kroger (0.36), PLL-Pall Corp. (0.64), CBRL-Cracker Barrel Old Country Store (1.11).
Morning Call: European and US stocks undercut after German investor confidence falls
- European stocks are lower with the European DJ Stoxx 50 down -0.03% and Dec S&Ps down -2.60 points. The euro retreated from a 1-week high against the dollar and Treasuries strengthened after German investor confidence tumbled. The Sep German ZEW economic sentiment survey fell for the fifth consecutive month and by a larger-than-expected -18.3 to a 19-month low of -4.3 as budget cuts across the Euro-Zone and slowing global growth clouded the outlook for Europe’s largest economy. Declines in utility stocks also pressured stock prices with E.ON sliding 3.0% after Germany’s biggest utility was downgraded to "hold" from "buy" at UniCredit SpA, which cited uncertainty on nuclear power plant extensions. Aug UK consumer prices unexpectedly rose +3.1% y/y, the same pace as July, and the sixth straight month prices have exceeded the government’s 3.0% limit as higher costs from airfare to food stoked price pressures.
- The Asian markets today closed mixed with Japan down -0.24%, Hong Kong +0.17%, China +0.09%, Taiwan +0.51%, Australia +0.25%, Singapore -0.59%, South Korea -0.15%, India +0.72%. Japanese stocks fell as the yen climbed to a fresh 15-year high against the dollar after Japanese Prime Minister Kan beat his rival Ozawa in a party vote today, reducing the likelihood the government will intervene in the foreign-exchange markets to weaken the yen. China’s yuan gained after the PBOC fixed the reference rate at 6.7378 per dollar, the highest since a peg against the dollar was scrapped in July 2005, on speculation the Chinese government will allow faster appreciation of the yuan to head off US trade sanctions. The action by the European Commission to raise its Euro-Zone GDP estimate yesterday for this year to 1.7% from 0.9% gave support to Asian equity markets on optimism that demand for Asian exports will remain strong. Asian bank stocks rallied for a second day after regulato rs agreed to give banks as long as 8 years to comply with new capital requirements and after Zhu Min, former deputy governor of the PBOC and current vice president of Bank of China Ltd. said that banks in Asia have high capital ratios and will be able to avoid the degree of fundraising needed elsewhere to meet the new international standards.
- Dec S&Ps this morning are down -2.60 points. The stock market yesterday gapped higher and traded in positive territory the entire day and finished moderately higher (Dow +0.78%, S&P 500 +1.11%, Nasdaq Composite +1.93%). The Nasdaq rose to a 2-1/2 month high and the S&P 500 and the Dow both rallied to 1-month highs. Bullish factors included (1) carry-over support from stronger-than-expected Chinese economic data and comments from China’s Premier Wen Jiabao who said that China’s economy is in "good shape," which eases concern that the global economy will lapse back into recession, (2) a rally in bank stocks after the Basel Committee on Banking Supervision reached a compromise that doubles capital requirements for banks while giving them until 2019 to meet the buffer requirements to withstand future crisis, (3) carry-over strength from a rally in European equity markets after the European Commission raised its economic growth forecast for the Eur o-Zone this year to 1.7% instead of a previously projected 0.9%, (4) gains in raw-materials and energy producers as the slumping dollar pushed most commodities higher, with crude oil climbing to a 1-month high, (5) strength in chipmakers after research firm Gartner Inc. predicted that semiconductor equipment spending will double in 2010, (6) the smaller-than-expected US budget deficit in Aug as the economic recovery generated more tax revenue for the Treasury (-$90.5 billion versus expectations of -$100.0 billion), and (7) the prediction from CLSA Ltd. that US stock prices are "screamingly cheap" and will rally at least 30% in the next 12 months as the cheapest valuations in decades lure investors.
- Bearish factors included (1) the statement from IMF Managing Director Strauss-Kahn that the global economy may not generate much employment growth in coming years, and (2) the prediction from well-known bank analyst Richard Bove that legislators who don’t understand the banking industry and a sense of "mass hysteria" led to the passage of financial-reform law that will hurt US consumers.
- Campbell Soup (CPB) fell 2.3% in European trading after Goldman Sachs cut the stock to "sell" from "neutral" as they downgraded the packaged foods industry to "cautious" from "neutral," citing a mixed outlook for US sales, margin risks and valuations.
Day Trader: Click here to ready the complete Morning Call.
How You Can Make Profit Using Scalping
Online trading is a performance of buy and sale transactions of foreign currencies in the internet. When trading some traders consider the trading as hunting, where the online Forex market is a dangerous beast with horns and teeth that can take all your money and kill your trading positions. Scalping can hardly be called hunting a wild beast, it is more fishing than hunting. This strategy gives a profit from many transactions in forex market that sometimes last no more than a few minutes.
Thus, unlike the traders who operate with large funds and ready to wait for a long time to make profit, scalpers can trade with a small balance and earn large number of minute deals. In scalping every trade may earn you just few pips. For that reason online traders must complete as many transactions as possible to have a big profit. For a successful scalping, traders must learn to trade with minimal losses. Lets’ discuss some trading approaches that make scalping less risky.
There are few types of scalping trading method: time trading, trading with a trend and trading against the trend. Time trading is a trading strategy where a fifteen minute chart is using. The distinctive feature of this method is that the profit is fixed very quickly, but the deal rarely lasts more than a minute. Seeing a moment of the breakdown, a trader enters the market on the level of few pips above the maximum or few pips below the minimum of the price. Once the price reaches your position, you must close it once you have earned 1 pip including spread. Please notice that if the spread of this position is 3 pips so your total gain must be 4 pips in order to be in profit.
The next type of scalping trading method is called trading against the trend. This online trading is also called gathering cents where the trader is taking one-two pips of profit in each position. Every trend has the moments of so called correction – a small wave against the trend. Study the candlestick chart and look for the bullish and bearish candles in the trend. This strategy is recommended to be applied during the first and last hours of trading in a specific zone.
The next most popular type of scalping is trading with a trend. This method of scalping is applied during the trend’s rolling back. When the market is going up, you need to buy when it rolls back down, if the trend is downward, then you have to sell on a rollback up. It is better to use the 10 minute candlestick chart for this strategy and a moving average with a period of 10. You close the position once it reaches 2 pips of profit.
In this article we have shown some most simple and popular methods of scalping. Online traders who use scalping must act quickly and decisively. But also must be prepared for losses and understand that scalping doesn’t let you earn much at a time. You must collect your profits little by little.
- About the Author: Daniel Shaw has many years of experience in online Forex trading. Visit his site Forex in Singapore to learn more about Singapore Trading. Article Source
Sorting Through Available Market Timing Services
Search for ‘market timing services’ online, and you’ll turn up tons of different hits. How are you to sort through all the different services that are available to supposedly help you make better investment decisions? There are several criteria that you can use to choose between these services.
One is the actual type of services that are offered. Some programs are very complex but also tell you exactly how to invest. They might even give you actual stocks to put your money into. Others are simple and streamlined, but they rely on you to make your own decisions. Neither is really better or worse than the other; they just represent different styles. If you do work with a streamlined system, it can be nice if the service provides you with the more detailed market information you need to make the best investment decisions.
Another thing to think about with market timing services is how much they cost. You don’t want to pay a fortune for a system, but it is definitely worth paying for one that can practically guarantee you good returns. As long as the price is reasonable, a good service is certainly worth paying for.
Finally, make sure you run the numbers on the systems you’re looking at. Different market timing services are going to operate off of different mathematical equations. The equation is what will make all the difference in returns! This is why not all of these systems can be considered even remotely equal.
Before you choose a service, look at its historical performance records. These records should give you an absolute return that you can count on. Also, you need to make sure that the returns aren’t just happening when the market is good. You should also be able to get good returns when the market is failing. If nothing else, you shouldn’t be bleeding money with market timing services.
Overall, it’s up to you to decide what returns and other options you’re okay with when it comes to market returns. It will depend on your personal preferences and your investment goals. Finding the right service in this area can make all the difference in your investment success, so it’s worth your time to do some good research on a system before you decide to use it for making your investment choices.
- About the Author: Regardless of the direction of the market, we view every year as an opportunity to make money. By using our market timing software to navigate the markets‘ short, medium, and long term trends, you have the potential to make money every year! Absolute Return Trading Systems Inc. provides a subscription based, proven and authenticated market trading system . Article Source
Technology and Small Cap Stocks Are Lagging Behind
by Robert W. Colby

Summary: Technology and Small Cap stocks are lagging behind. Technology stock sector Relative Strength Ratio (XLK/SPY) fell below the lows of the previous 7-months on 9/10/10. XLK/SPY is bearish, below both 50-day and 200-day SMAs, and with the 50 below the 200. The Small Cap Russell 2000 Index/L…
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Morning Call: Global stocks rally on economic optimism
- European stocks are higher with the European DJ Stoxx 50 up +0.86% and Dec S&Ps are up +9.40 points, both at 1-month highs. The dollar and Treasuries are weaker while most commodities rallied with crude oil at a 1-month high as a larger-than-expected increase in Aug China industrial production lifted mining stocks and raw material producers and boosted optimism in the global recovery. The European Commission raised its economic growth forecast for the Euro-Zone this year to 1.7% instead of a previously projected 0.9%, and said the economy may slow to a more "moderate" expansion in the second half. Bank stocks and the euro currency strengthened after the Basel Committee on Banking Supervision reached a compromise that more than doubles capital requirements for the world’s banks and gives them as long as 8 years to comply with the higher capital requirements intended to prevent future crisis. Credit Agricole jumped 6.7%, Societe Generale climbed 4.6% and Commerzbank advanced 2.0%. Deutsche Postbank AG slipped 6.8% after Deutsche Bank AG said it plans to raise at least 9.8 billion euros in its biggest-ever share sale to take over Postbank and meet stricter capital rules. Deutsche Bank expects to offer between 24 euros and 25 euros a share in cash to Postbank shareholders to increase its 29.95% stake in the lender.
- The Asian markets today closed higher with Japan up +0.89%, Hong Kong +1.89%, China +1.01%, Taiwan +2.55%, Australia +1.20%, Singapore +1.47%, South Korea +1.03%, India +2.17%. Strong economic data from China lifted Asian stocks and eased concern about a slowdown in the economic recovery. China’s Aug industrial production increased 13.9% y/y, more than market expectations of 13.0% y/y and Aug China retail sales rose +18.4% y/y. The PBOC reported Aug new loans of 545.2 billion yuan ($80 billion) and a 19.2% y/y increase in M2, the broadest measure of money supply. Both numbers were stronger than expected with the increase in M2 growth the first in 9 months. Aug China consumer prices rose 3.5% y/y, their biggest increase in 22 months due to a rise in food costs.
Today’s U.S. Earnings Reports
Earnings reports (confirmed releases, sorted by mkt cap) FUL-HB Fuller (BEST earnings consensus $0.45), LRN-K12 Inc. (-0.07), PCYC-Pharmacyclics (-0.07), PMFG-PMFG Inc. (0.10), MTRX-Matrix Service (0.10), VALV-Shengkai Innovations (0.16), GCOM-Globecomm Systems (0.17).
Day Trader: Click here to ready the complete Morning Call.
MagneGas Corp. (OTCBB: MNGA) Investors Are Applauding
Protecting the environment and establishing a green way of doing things is a major concern among people all over the world. In the U.S. alone, almost 247M tons of waste is generated every year, and the figure has been steadily increasing for quite some time. It has also been estimated that every person in this country generates 4.54 pounds of waste per day, and with population increases, that number will only grow.
The waste contains household waste, food scraps, discarded packaging, furniture and appliances, to yard clippings, sewage, cooking oil, and more generally, just a whole lot of garbage. Much of this waste contains environmentally damaging substances such as swage, sludge, cooking oil, and liquid waste, all of which are known to be very extremely dangerous to the human body. When thrown into landfills, they seep can into the soil, and eventually, our water supply. It happens much more often then we want to admit, and alarmingly, there’s not much being done about the hazardous waste we throw out.
We’ve already accepted that waste is a monumental environmental hazard which directly increases the amount of greenhouse gases rising into the atmosphere, slowly deteriorating the entire world for future generations. The solution lies with a responsible recycling policy which must be adhered to for years to come in order to undo the damage that has already been done.
Magnegas Corp. is a company who has pioneered an effort to convert liquid waste to a clean burning, cost competitive fuel with their breakthrough Plasma Arc Flow technology. Using this process, liquid waste is converted into stable and usable synthetic byproducts, their flagship being called MagneGas, a fuel that can be mixed with or someday even replace natural gas.
Compared to existing fossil fuels, MagneGas produces the lowest greenhouse gas emissions. MagneGas has been in the news recently for being received very favorably by users. The company recently closed a profitable deal with DDI in China, a partner with whom they supplied a MagneGas refinery worth $185M. In an interview with WMM, Luisa Ingargiola, the CFO of MagneGas Corp., talked about this deal with DDI and how the Beijing company would be investing another $2M in a joint venture in which Magnegas would have a 20% stake.
When asked how important countries like China were in the planned globalization of MagneGas, she said that there was a lot of money in that region waiting to be invested in ‘”green” technology and that MagneGas was in a great position to profit and grow in the world’s largest country, and perhaps eventually, largest economy. She also said that MagneGas had been contacted from companies interested in their technology from practically every region in the globe. DDI became the first exclusive distributor for MagneGas in the Greater China region and MagneGas is now looking for exclusive distributors in other countries. She also said that companies from Dubai and Australia had expressed interest in concluding deals similar to the one made with DDI.
For more information visit http://www.worldmarketmedia.com/779/section.aspx/2362/post/magnegas-corp-otcbb-mnga-investors-are-applauding
- About the Author: WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. Article Source
