Archive for February, 2010
How to Use a Short-Term Forex Trading Technique For Quick Profits
Venturing into whatever kind of business would mean that you’d have to make use of a business strategy of some sort; the same also applies with Forex trading. According to studies, Forex traders make use of an array of different strategies along with time frames to navigate their way into the markets. However, statistics show that one of the most popular tactics used is the short-term Forex trading technique. So, what is it really about and how does it work? Well, here are the essential things you need to know.
What’s The Deal?
Basically, this kind of trading would mean making use of a short time frame to do your thing out there in the market. Since the Forex industry has trends, this kind of strategy could be both lucrative and full of risks.
Not For The Faint Hearted
Although this technique is a popular one, it is still not for the faint hearted. Most experts use this. However, novices in the trade are often advised to use a different strategy than this. This is because most people in the industry say that it is difficult. Why so?-this is generally due to the fact that financial markets, along with currencies in particular, always move in trends.
Nevertheless, although this is true of long-term and medium charts, for instance 30-minute extending to weekly or monthly charts; if you’ll be looking at 1 or 5 minute charts, you are simply just coming across noise.
It would be definite that prices would whipsaw all over and it would be pretty difficult to face the market without any confidence. Although there are times that you would get breakouts that could result to a couple of fair pips profit, you would also encounter a number of false breakouts and would be frequently stopped out of positions whenever your stop loss is triggered.
It’s A Skill
Generally, it is a very complicated method of trading. Traders actually consider it as a skill, which is quite hard to master. Nevertheless, so many people that are novices to Forex trading are obviously seduced into this kind of trading method. They are pretty much excited with the fact that they could acquire for instance 20-50 points within a span of minutes.
Nevertheless, it is still possible that you lose quite a significant amount of points quickly. In fact you could instantly be taken out of your position, most especially if you’re trading via news announcements. In the end, quite a number of short-term traders finally find out how complicated it is to constantly make money via this method and would often give up the whole trade altogether.
Is It Not Worth It?
If you’re thinking if you should give up the short term method completely, then the answer there would be not necessarily. Definitely, there are people that make consistent profits via this strategy. Additionally, there are instances when you might have a bigger longer term position and you encounter an intraday opportunity that you could get into and attain a few points.
For example, you might have a hundred points for profit, all thanks to your long-term position. However, since you’re quite confident for a continued upward move, you deliberate on whether the price have gone too high for the short-term, then you decide to go for short just to catch the short-term retracement. Such kind of change is one good example of where you may find short-term trading to be appropriate.
Nick Stoles
http://www.articlesbase.com/finance-articles/how-to-use-a-shortterm-forex-trading-technique-for-quick-profits-711496.html
A Beginners Guide To Trading E Minis
Eminis, sometimes called emini futures, are smaller units of what some would call older futures contracts. These older futures contracts have been around for some time. The emini contracts are newer. They began being traded about 10 years ago. The “regular” futures contracts have existed for about 20 years. There are a few futures markets that have full and emini contracts.
The best known one is the S&P 500 futures. The S&P 500’s emini contract is called “ES” on the ticker. Two years after the S&P 500 emini contract, the NASDAQ 100 emini was born. Its ticker name is “NQ”. One additional emini contract worth mentioning is Russell 2000. Traders call this one “ER2″.
These three Eminis may have differences, but they have one thing in common: they are traded electronically on Globex while the “adult” version is traded on the Chicago Mercantile Exchange (CME).
The Dow Jones emini is traded on the Chicago Board of Trade (CBOT) and trades electronically. Its ticker name is “YM”. These Eminis are all futures contracts for stock indices. Trading stock indices is less liquid than trading commodities futures like gold, silver or crude oil. Consequently, it is riskier to trade them.
If you are just beginning to trade in the emini market, stick to well established markets that are less risky and can guarantee better volumes and trades because they are more liquid. These stock index Eminis show up more frequently as day trading.
Here you are trying to guess whether their price will move up or down. If you guess that the price will move up and you are right, you can sell these contracts for a profit. Even if you guess the price will move down and you are right,you will make money! Obviously, if your predictions are wrong, you will experience a loss.
Because Eminis are traded in day trading, you have the potential to make profits (or losses) on a daily basis. In order to make a profit, though, day traders use more than one contract in their trading because the commission on each trade is not that large. The number of emini contracts you can trade relates mainly to the emini margin. That in turn varies from one broker to another. It is smart to have at least twice the margin for each contract if you want to feel comfortable trading in the emini day trading arena.
Of course, you will not win all the time. Winning like that is never possible in the stock market, let alone in day trading. If you do lose, you need to keep in mind that some losses will cause draw downs in your equity.
To protect yourself, it is really important to have a cushion to protect yourself when those types of losses occur. A good rule of thumb is to have twice the margin as a minimum cushion to protect yourself should there be a downturn in your equity.
It is even better to have three times the margin for each contract, especially if you are a beginner in the field of Emini Trading. If you want to keep on trading, your equity can never go below the margin level. How many contracts you can trade depends primarily on the emini margin which in turn varies from one broker to another. Some brokers out there, those who cater specifically to emini traders, set their daytrading margins as low as $500 per contract, and sometimes even lower.
Most, though, require you to have at least $1000-2000 per contract in your account before you can trade. It is, however, highly advisable to have at least twice the margin per contract if you are to feel comfortable trading.
Not all of your trades will be winners; you need to account for losers as well. Since the losers will cause drawdowns in your equity, you need to have some cushion to withstand them. Twice the margin is, in my opinion, the absolute starting minimum, three times is even better, particularly if you are a total beginner.
In order to be allowed to trade, your equity must never fall below the margin level per contract. If this should occur, you will have to lower the number of contracts you are trading. If you can’t do this, then you have to stop trading and raise enough cash again to be allowed to resume trading.
For A Free DVD & Ebook on A Beginners Guide To Trading Eminis, Please Visit http://www.EminisGlobalTrader.com.
Lou Harty
http://www.articlesbase.com/finance-articles/a-beginners-guide-to-trading-e-minis-730382.html
I am day trading stocks, how much money do i need to make when i trade a stock in order to avoid a lot of tax?
Lets say i bought one and sold one made $75 after comisions -$14=61 now if i do this everyday how does it affect my taxes?
well, let’s see, you’ve just made $61 profit, which will be subject to taxes. If you don’t make a living doing it, it will be taxed as capital gains, but if you hold the stock for less than 1 year it will be short-term capital gains, which is taxed at your regular tax rate instead of the more favorable long-term capital gains, which are taxed at a maximum of 15%. And some states tax short-term capital gains a lot more than long-term capital. Massachusetts for example taxes short-term capital gains at 12% and long-term capital gains at 5.3%. Now, if the day trading is your job, then your profit on selling stocks will be subject to regular income tax and also self-employment (SE) tax, which is 15.3% of 92.35% of your profits. You will need to keep track of all your profits and expenses in that case to accurately report your business income.
Has anyone heard of Traders International?
I am looking at buying this education for $7500, it’s alot of money but then again so is a Uni degree. I want to know if anyone has bought this course and is trading successfully. It is trading the Emini market. The website is : www.tradersinternational.com
Also listed as Emini’s Global.
You need to read several books before committing to this type of program. The one book they have on their site is a great book (I highly suggest you read it)…… but it won’t teach you a thing about the mini or futures market.
Read about three books on the type of investing you want to do. Totally understand "draw-down". The web page gives you the feeling that everything can be wonderful. Over 95% of the people that try this type of trading lose big time….. even after spending $7500 (or more) on training. Be realistic. Then make a decision. Shop around before looking at one vendor.
There are plenty of companies that would love to have your money (instead of losing theirs in trading).
Hi Guys, Can anyone share with me the best AFL for Intraday trading ?
I am new to study of stock trading with the help of amibroker. Is there anyone can suggest the best AFL for Intraday Trading which gives Buy Sell signal Above 90% accuracy.
no one can
Can anyone advice me on the best online broker to choose? I have a short term trading strategy.?
and some possible day trades. I need one with trailing stop/loss capabilities. Also, I’m trying to figure out if I need stock trading software? I have the specific parameters (Tech A.) mostly, so what is a good software? does any of the online brokers offer a good "real-time" software as well as low trade commissions? Any advice , especially from active traders , is appreciated. thanks.
Whatever disocunt brokerage firm you go with absolutely make sure to demand a money market fund for your cash account. ETrade and TD Ameritrade recently changed their policy and now pay less than 1% on cash…the income they earn by paying their customers less than 1% on cash and simply turning around and depositing "your" money into a money market account earns them huge profits (for ETrade it accounted for nearly 1/2 of their net income for the recent quarter)..Great way to treat their customers don’t you think….I can’t believe so many investors let them get away with this practice…I can’t stress enough that all discount brokerage customers need to look into what their firm is paying on cash and either demand a money market fund return (4.5-5%) or take your business to a place like Wells Fargo Investments that offers money market funds for idle cash and up to 100 free trades per account/year if you have over $25k between deposit, loans, and brokerage (including IRAs).
Live Stock Day Trading Online Video for 11-02 Part 1
I have been day trading the stock market for many years now. Watch this video and learn from my real time trading strategies. I use real time alerts and filter software. I can’t trade without them. Online day trading is a way for me to “make money at home” as a “home business”. I learned to day trade from videos, coaching, and other online courses. Live trading will help you learn more than paper trading. Psychology plays a major role in successful trading.
Duration : 0:9:55
Trading Emini 2 25 2010 Pre Market Analysis
www.tradingemini.com Trading Emini 2 25 2010 Pre Market Analysis
emini,Emini Trading,tradingemini,trading stocks,trading forex,Trading Emini 2 25 2010 Pre Market Analysis,http://www.tradingemini.com/,
Duration : 0:3:40
How to Develop your Trading Routines – Part 2 – Intraday Trading Routines
http://blog.accendotraders.com – Here is the second part of our series on how to develop your trading routine. This video series is a part of Accendo Traders 30 Day Challenge which was setup to deliver stock market tutorial videos to help investor to learn how to trade. This video focuses on the steps to take intraday / after the bell rings.
Duration : 0:10:54
Short Term Trading Help – Day Trading Help For Online Stocks
http://www.todaytrader.com. Day trading in stocks is both risky and difficult. Please consult your financial advisor before attempting to trade actively. TodayTrader is not responsible for any content that may be viewed on this channel. These videos are not meant to be recommendations in the market. Day trading equities requires a retail account balance of at least $25,000 and must remain at or above this level to trade stocks actively. This website is not a solicitation to buy or sell securities, options, or futures. The purpose of this content is educational only.
Duration : 0:21:20
