Tag Archives: trading

Trading Woes on Black Thursday: January 15, 2015

Picture this. You are a very good trader, trading mainly with technical indicators. You use such tools as charts, Bollinger Bands, support and resistance, slow stochastic, money flow and several other indicators. These skills have served you well and you have a successful 10 year track record. You like the leverage of trading commodities and currencies. Currencies offer the greatest leverage, requiring only a 2% margin. That means that you put only $2.00 down for every $100 you trade. You are rather conservative and even though you have a $10,000 account you trade only $2,000. With a $2,000 margin at 2% you are controlling $100,000 of currencies. You are trading $2000 of EUR/CHF. Currencies are always spread trades. In this case you are buying the Euro (EUR and selling the Swiss Franc (CHF).Continue Reading

Big Banks Win – Derivatives are Back

Once upon a time in the long ago we had banks that lent money to individuals and companies to expand and grow the economy. During the Great Depression lawmakers saw the need to rein in and regulate banks’ activities. The Glass Steagall Act of 1933 ruled that banks could not become involved in selling or trading securities. Separate Investment banks were organized that could underwrite and sell securities but they could not use depositor money.Continue Reading

Market Volatility is Ramping Up-A Traders Game

Market Volatility is Ramping Up-A Traders GameContinue Reading

High Speed Trading

In the early days of stock trading prices came across a ticker tape. It posted the stock symbol and the volume. The tape ran at one speed and traders would follow the buying and selling by analyzing the tape. The great traders were able to mentally track price action and make instant trading decisions, almost like a card counter does in Blackjack. One popular past time was for investors to gather in a large sitting room and watch the ticker tape during trading hours.Continue Reading

Trading Like a Pro

One of your dreams has always been to trade the markets and make a comfortable living, not having to rely on anyone else but your own skills. Many persons achieve this goal, yet many more fall by the wayside. What then, makes the difference? Here are a few ideas that may help you.Continue Reading

How to Execute a Winning Trade

Managing risk is perhaps the hardest thing to do when trading stocks. What happens is your ego gets in the way. You’ve done substantial research and truly believe that you have a winning stock or group of stocks. Chances are you do. The problem is that along the way you will encounter some unexpected bumps in the road. The way you handle these side issues can determine a trade being a winner or loser.Continue Reading