Posts Tagged ‘Speculation’
11 important things for online stock trading
Approximately all exchanges are offering online trading facility To day online trading is passion, so many people doing online trading with out guidance and proper knowledge, and also they loosing money and Time this points make you a better online trader this points derived from my own experience from past 10years
1)First you have to maintain your broker/sub-broker address and phone numbers with you.
2) You should know about your trading terminal order punching, order book,(buy/sell order book, stop loss order )
3)don’t confuse similar pronunciation stock ticker(stock name)Ex-unitech- ultratech,uniontech ,gvk-tajgvk Grasim-gasim
4) maintain different market watches for equity segment ,derivatives segmentOne of my client had buy future trade instead of equity stock
5) Don’t share your stock market online trading passwords, usernames with other personsAnd don’t do online trade in internet café and public places(One of my client forget to logout his terminal in a café, he got loss $4000 in a single day)
6) Don’t follow rumors un-known persons phone calls,e-mails&sms. Some people maintaining trading people database and they targeting to speculation and trap the people
7) Avoid phone-trading (call trading) with out observation of market.
8) Maintain stop loss order for high volatile stock, maintain stop loss when you are going to out of the trading screen one client made loss $600 at his lunch time
9) Avoid panic withdraw from trades
10) Don’t take over exposure form your money
11) Money management is the heart of online trading, don’t put your 100% capital in a single time or single trade, and maintain and prepare good portfolio
Welcome For Great Comments
- About the Author: this telika ramu from india iam professional stock market trainer from past 10years iam maintaing to websites www.telikaramu.hpage.com www.stockmarketeducations.com Article Source
The Forex Option: Hedging Your Bets Against The Future
All speculation-based markets are full of uncertainty, and none more so than the forex market.
A currency might be strong and vibrant today, weak and sickly a month from now. One way to guard against major fluctuations like that is through forex option trading.
Natalia Osorio Editor of the “Best Forex Trading” website — http://www.BestForexTradingUsa.com — pointed out;
“…A forex option is when you buy the right — but not the obligation — to buy or sell a particular currency at a particular rate any time between now and the expiration date of the option.
Let’s say you’re worried that the Japanese yen is going to drop in value sometime in the next six months. You might buy an option that basically locks in the current exchange rate for whatever period of time the option seller allows, usually anywhere from 30 days to six months. You set a number of yen, too. Say you choose 10,000 yen at a rate of 116 yen per U.S. dollar for three months. The option basically says: I may want to sell 10,000 yen sometime in the next three months, but I’m worried the yen is going to devalue in that time. So I’ve locked in this rate of USD/JPY 116…”
Then three months pass. If your prediction was correct and the yen has weakened in that time — say it’s now USD/JPY 122 — then you exercise your right to sell 10,000 yen at the rate you bought three months earlier. Everyone else selling yen today (everyone who didn’t have a forex option, that is) is selling it at 122 per U.S. dollar, and you get to sell it at 116.
If, on the other hand, the yen has stayed the same or gotten stronger, you are under no obligation to actually sell that 10,000 yen your option talked about. You can simply do nothing, and all you’ve lost is the premium you originally paid for the option.
“…Ah yes, there is a premium. Brokers who sell forex options charge a fee for the privilege. Think of it as insurance; calling it a “premium” certainly fits. The price of a forex option for 10,000 yen for three months might be $200, which you must pay up front. If the yen drops enough in value, you’ll hopefully turn enough of a profit to make up for the $200 you had to pay. If it increases in value, and you wind up not exercising the option, all you’ve lost is the $200 premium.
Forex option trading used to be done only by major banks and corporations, but now many brokers who cater to individual traders offer the service, too. If you’re a heavy-duty trader, a forex option is definitely something to consider to guard against future setbacks in the currency you hold…” N. Osorio added.
Further Information About The Best Forex Trading Softwares And Resources By Visiting; http://www.BestForexTradingUsa.com
- About the Author: Natalia Osorio runs her corporate website at http://www.OpsRegs.com where you can see all her articles and press releases. Article Source
EquityAhead ; 20 Rules for successful Trading
Intraday Trading is High Risk – High Gain. Intraday trading is more about speculation rather than technical and fundamental. Scrip can even fall 10% in a day, but what really matters where it closes. So even bullish stock can gives losses in intraday. Nobody can create wealth doing Intraday Trading. So intraday trading should be part of trading not core of trading. One should Diversify in various trading like intraday trading, swing trading (2-5 days) and positional trading (6-30 days trading).
2. Never, under any Situation add to a losing position. Reverse averaging always leads to more loses. If you bought something and its down. Better Continue to hold without any average. 3. Never buy or Sell just because the price is high or low. Predicting tops and bottoms are like guessing future actions which is nearly impossible. There is no limit for Upside and downside. Always buy when scrip started moving up and vice-verse. Money is never made in buying high or low. It’s made in buying and selling at trend reversal. 4. Always cut your losses quickly. If boat is sinking, don’t pray to god. Just Jump. Always accept your mistake and exit the trade. In a Same Way, Always Hold your winning positions with trailing Stop losses. Scrip’s always moves beyond expectations. So Cutting Losses quickly and let your profit run mostly works. 5. Don’t get nervous by Losses. Losses are part of trading. No one can earn all the time. What really matter is earning more than losses. Even 60%-70% Success makes overall profit. 6. Only trade with what you can lose. Never trade with borrowed capital, only trade with funds you can afford to risk. Divide your capital into few equal parts; never risk more than one part of your capital on any one specific trade. 7. Trend is the most important thing. If trend is not clear, avoid trading. Sometime no Trade is better than trying your luck and loose at the end. 8. Never change your trade until and unless one has valid and concrete reason to do so. If you think your strategy is good, then you should continue to hold your positions. Changing the strategy all the time, makes all trade in vain. 9.Never blame the market. Market is always right. If your prediction and analysis was not correct. It’s not the market fault. Learn from mistake and improve trading strategy. Improving all the time what makes a successful trader. 10. Always remember, there is no trick and tips to earn easy money. Only In-depth Knowledge and experience works. Investing software and trading books by themselves can’t make you enormously wealthy. Nothing is 100%. Follow some strategy & Do analysis and make a profitable trade is only possibility. 11. Don’t follow news. There are some big fat cats who get the news ahead of you. Most of the news already priced in. Always Check the chart to know whether the news has already been discounted or not. 12. Trend is trader’s best friend. Never trade against it. If overall trend is bullish, buy on decline and if bearish sell on high. 13. No Risk, No Gain. If you are not in a position to accept losses, either psychologically or financially, you have no business trading. In addition, trading should be done only with surplus funds that are not vital to daily expenses. 14. Avoid Margin Trading. Margin looks lucrative and profitable. In reality, they are not. Profit might be in multiple. But they will be less due to time limitations and emotional desire to book early due to leverage positions. Loses will be too many and that also in multiple 15Don’t trade for the sake of trading. Trading for addiction always leads to misery. Trading is a business which should be proper analyzed before implementations. 16. Always trade in liquid stocks. It’s easy to buy, but what really important is to exit in any case. Low liquidity does face different bidding prices as well as Circuits which makes difficult to exit when we really want to exit in worst case scenario. 17. Always reduce your trade after first lose. After lose mostly people get unbalanced psychologically which leads to more failure. Observe mistakes, learn and trade second one with lesser quantity. Once confidence is build, you can come with normal quantity.
18. Use Stop losses. It’s must. When boat is sinking, don’t pray to god. Just jump. Stop loss is must to protect your capital. If you have capital, you can surely recover later. But if you losses big, it’s nearly impossible to recover. 19.Never follow anyone’s advice until and unless that very person knows more than you. Everyone has different way to look the market so the trading style. Develop, Follow and Create wealth. Use systematically approach. 20.Make sure you follow your rules - About the Author: EQUITYAHEAD – 1 STEP AHEAD IN EQUITY RESEARCH. Any Query Mail to: info@equityahead.com
http://www.equityahead.com
