Options Trading Training for a Newbie
Are you a newbie in the field of options trading? Do you want to develop your options trading skills and knowledge to advance to the next level? Do you want to find a way where you can improve your skills and knowledge regarding complex concepts about options trading? If you have "YES" as an answer for those three questions, this article is for you. Continue reading and learn about the options trading training for a newbie.
Options trading is a land flowing with milk and honey for a trader or an investor. This is a land full of promises of gaining large amount of profit that can increase your savings that you can use in your early and pleasurable retirement. It is an effective and efficient avenue of investments where you can gain more with exerting just less. These are the things that those fortunate people, who discover and engage in options trading, enjoy.
You as a trader can also experience these things. But first of all, you must experience what those successful persons experienced before they got their triumph in this field. You cannot just simply find the starting point and jump to its end. That is not the ways how life in this field goes. You must begin with the foundations and little by little, you will just see that you are in your peak of success.
If we will compare the field of options trading to a body of knowledge, the best field we can use is Mathematics. In Math, you must first learn how to count then you will learn the basic operations and so on until you reach those higher concepts such as Algebra, Geometry, Trigonometry, and Calculus. That same thing goes with trading options. You must start first with the very basic terms and concepts before you can proceed to the higher knowledge regarding this field.
Options trading training for a newbie requires a lot of reading. Reading is the best way to learn in this field. This is the most efficient and effective avenue of learning where you can economize your time and resources. Reading Materials are widely available all over the web in the form of newsletters, blogs, forums and articles like this one. You can use your free time in reading and researching about options trading which will give you a comfortable atmosphere. In this activity, you will get the knowledge and concepts that will serve as your prerequisites for higher learning in trading options.
Another thing to learn in this field and shall be trained vigorously is how you will strategize your plan. You must acquire this skill in order for you to make sure of your success by defining the whole flow of your trade in its most clear view. You need help from people who gain success in the field by talking to them directly, or if you cannot, there are many indirect ways. These indirect ways are by subscribing to their blogs, newsletters, sites, forums or webinars which will be a big help for you to learn the process of strategizing a plan.
Training yourself as a good options trader is not that hard. There are many ways that you can do in order for you learn more about the field. This options trading training, which is proven to be effective, is a great help for a newbie in the field. This is a way to improve your skills in trading without spending much and sacrificing much. Good luck!
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Make Even Fast Binary Profits From 24Options Sixty Second Binary Trades
If you have not yet heard of it, Binary Options trading is one of the fastest ways in which you can earn a return on your investment capital. It offers a simple way of trading on the price movement of a selected financial and will pay you a high return for simply selecting the direction that you think the price will move. It is designed to be under stable and easy to pick up so that even those people who have never traded before can try their hand in the markets.
The binary options trade, as the same suggests, can only deliver one of two results at its conclusion. You either win the agreed return that you agreed with your broker or the contract expires worthless. To profit from a contract you need to be able to forecast where you think the price of the asset will end up at the termination of the contract. The only decision that you have to make is whether you believe it will finish 'higher' or 'lower' than the price at which you buy the contract.
The length of time that your position is open for will depend upon the length of the contract that you purchase. Most brokers offer typical 'hourly' or 'end of day contracts'. These expire at a set time although you can generally purchase the contract at any point up to a few minutes before it closes. While this means you will know exactly how your analysis has fared much more quickly when compared to many forms of investment, there is now an even quicker way to profit.
The launch of sixty second binary options contracts means that you know don't even have to wait this long in order to be able to see a profit on your account. These short term contracts run, as the name suggests, for only sixty seconds. So in just over one minute you can generate a profit on your trading account.
To use these contract types you still only need to forecast if the market will finish higher or lower than the price at which you enter the market. And of course you can trade these new options on a range of asset classes with 24Option. What is more, while most contracts offered by a broker will offer you a return in the region of 70-90% if they expire 'in the money', with these shorter term contracts you can earn even higher returns. In the case of many of these contracts you can double or even triple your investment.
For the opportunity to make a fast profit from these option types you need a good binary options broker that is able to provide you with a fast and responsive dealing platform. You also need to have in your possession a good trading strategy. Due to the short term nature of these contracts you will be able to take a number of trade on your account over the course of the trading day; therefore it is easy to see how you can quickly build your profits by making use of them.
Find out more about how you can profit from 60 second options by trading with 24option, one of the leading options brokers for your trading.
Get more information about binary options at BinaryOptionsProfits.net.
Why Is Day Trading So Hard?
Questions are so important in trading. What is even more important is the RIGHT question.
Instead of asking, "Why is trading so hard?!?!" you should ask yourself, "What have I learned and what steps can I do to get better."
When I first began trading I made money... I also had losses. Sometimes, I had a loss even though I followed the rules completely. When this happened, I had to build a new rule. Instead of asking, "How did this happen???" I would ask, "How can I learn from this - what new rule could I add to prevent this from happening again?"
This question helped save me hundreds of thousands of dollars over the years. If I never had those losses, I never would have those new rules.
If you are feeling emotions, ask yourself why you are feeling this way. The thing is, these emotions are here to serve you; you just need to understand if what you are feeling is overblown or if it makes sense. The fastest way to understand this is by asking questions - the right ones.
Example time: Say you are in a trade and lose $500 for the day. You may begin smashing your keyboard and cursing in 3 different languages. Most traders have so much anger built up that they "revenge trade." They look for the next possible trade that is out there... good or bad. This inevitably leads to more money lost. If after you are done cursing (in all 3 languages), you take out your journal and ask, "what mistakes did I make to have this happen?" or "what new rule can I add that will reduce this from happening again?" you will calm yourself down, and add value to the money lost.
Your "cost of education" is important and always ongoing - it is your perception of this cost that may need to change.
Take the time to ask the right questions, and you will always get a much stronger, more impactful answers.
Take the time to journal your daily feelings and your daily trades. It doesn't matter if they are good or bad - take the time to write down what is going on with you, and your overall growth will soar. Along with this, keep a record of and add daily questions, and you will begin to double and triple your mental growth and conditioning. Once this happens, your road to emotional mastery will become a lot smoother!
Mark Asher
A Brief Introduction To Pair Options Trading
The stock market is one of the best places in which to make money. One of the ways through which you can do this is by pair options trading. This trading involves investing in two stocks and deciding which will outperform the other at the end of the day. Should you be accurate in your prediction, you get a return. The stocks that you choose have to be affiliated in some way; in other words, the stocks that you choose have to be within the same sector.
You must consider a few things before engaging in pair options trading. One of these is the trading platform you will use. It is important for you to shop around and find investment platform, which are suited to your needs. The stockbroker you choose should be able to guide you in making the investments that will help you earn money most of the time. Choose a reputable broker who will not trade without your permission, something that some do illegally.
It is also important to consider the stock options you are going to pair up. These options have to have some semblance of a relationship. One example is a pairing of Microsoft stock to that of Apple Inc. Do some research in order to find out what is most likely to give you the best returns in pair options trading.
In addition to the selected stock options, you have to have some money for investment purposes. This money is what you are going to use to purchase both stocks in whatever amount you prefer. You should have money that is your own, since the stock market is always unpredictable regardless of how much information you have. Borrowing money to trade is a risky and dangerous thing to do, especially if you lose because you will still have to pay it back.
Once you are decided and have your money, you need to embark on your options trading. You will first buy a stock with potential to close higher at the end of the day. You can then buy a second stock within the same sector, which you think will close lower at the day's end. You should consider investing a similar or close to similar amount of money on each stock option, you have decided on. This reduces the risk should you lose some money on one stock option.
This kind of trading is quite popular because it enables you to cushion yourself somewhat against market volatility. When you invest on the stock you think will gain, you are purchasing a call on it. Alternatively, when you invest on a stock you think will lose at the end of the day then what you are doing is purchasing a put.
There are several advantages to pair options trading. One of those advantages is that whether or not the values of the stock you have picked go down, as long as you have made the accurate prediction on the call and put trade options then you stand to make money. This would not be the case should you have invested on the stock options individually, as you would have gone at a total lose if both options closed low.
If both stock options close high at the end of the day, and your predictions are accurate, then you would stand to make money from both options as well as from the prediction itself. The high returns in such a case make this a very attractive option within the stock market.
Pair options trading is therefore the way to go should you prefer to hedge your bets and if you have no appetite for high risks. You should therefore arm yourself with as much information as you can to enhance your returns after the trading is done.
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For more comprehensive information on the exciting new financial instruments discussed in this article, please visit our pair options trading page.
MetaStock for Trading
Trading is sometimes a risky business. Financial analysts and traders have to keep ahead on the types of stocks that their company or individuals are constantly trading. Real time financial software makes trading easier for you or your company. Many different types of financial trading software exist on the market. In order for you to keep ahead of the competition and not be left behind, you need to figure out the type of financial trading software which is right for you. One of the types of financial trading software that this article will strive to evaluate for real time trading is MetaStock.
If you want to have real time access to the stocks from a reliable data center (Thomson Reuters, who is the producer of the Reuters news service), MetaStock is your correct choice. MetaStock comes in three different platforms. MetaStock is for end of day traders. MetaStock ProFX is for currency traders. And, MetaStock Pro is for real-time traders. Along with the individual MetaStock software, data solutions are integrated for the software. Reuters Datalink is for the regular MetaStock software. QuoteCenter FX is compatible for MetaStock ProFX. And, QuoteCenter is utilized for MetaStock Pro. The three different software platforms manufactured by Equis are versatile to the investor or for the financial analyst. The MetaStock platform is available for the Microsoft Windows Operating System. One of the powerful software platforms available for currency trading is MetaStock ProFX. MetaStock ProFX has many features to exchange currency throughout the world and FOREX (foreign exchange) markets. Some of the incentives that MetaStock ProFX offers is twenty-four hour trading (from evenings on Sundays to Friday nights), liquid markets, and commission free trading. With MetaStock ProFX, you can trade currency from home. Since the FOREX market is large, you are flexible in what currency you trade. MetaStock has currency exchange rates, which are constantly updated.
You can incorporate QuoteCenter FX, which has real-time trades for currency and data feeds. Some of the information contained by QuoteCenter FX is over thirty years old. Analytical information, such as graphs, indicators, and more are available with QuoteCenter FX. QuoteCenter FX can work with MetaStock Pro FX to gain information on the FOREX markets at work and at home. Along with MetaStock Pro FX, QuoteCenter FX is powerful software which you can operate. Some of the features QuoteCenter FX includes are international data from Thomson Reuters, data from FOREX markets, free online training, market depth, symbol lists that can quickly be loaded and expert advisors that generate trade signals.
OneStepRemoved is a company that specializes in programming MetaStock expert advisors.
The Simple Basics of The Art of Awesome Binary Options Trading!
While binary options are designed to be simple to use, you will need to have some experience before you jump right into the fray and start making trades. For that reason I suggest you try out all of your techniques on the demo platforms of binary brokers such as Banc de Binary before you head into their real platforms and begin trading. The intention of this is to give you a real overview about what binary options are and how you can trade them.
The biggest benefit of this method of trading, whether you are trading 60 second binary options or even 15 minute ones, is that you will know exactly whether there is a chance to profit from the situation or not. If the option expires 'in the money' ITM, then the return on investment can be as much as 80%, whereas if it expires 'out of the money' OTM, you could stand to make a 100% loss on your investment. Although this shouldn't really matter too much as you can invest only small amounts if you so desire, for example, banc de binary allows you to invest $5. to $500. on its 60 second binary options and as low as $1. on others, so in reality, if you get this correct you could stand to gain a lot of money online in a short period of time.
There are three different things you need to consider before you begin 'Binary Options Trading'. The first is the asset that you wish to invest in, the direction you think the price is going to move in, as well as the value. Finally you will need to consider the expiry time of the binary option.
The first thing that you would need to consider is the options that you wish to trade on. This really can be anything, although before you place your trade on the way that it is going to go, it is worth analyzing the market for a while so you at least have a better idea of how it is going to perform. It will require a certain amount of skill, although you will get better over time. Too many jump into binary options trading and just choose an asset and buy straight away, and this really isn't something that is good to do, more often than not you will have a loss. Experience and the chance to make a profit only come from the ability to analyze a market. Remember, it doesn't matter what asset you trade, it matters what profit you stand to make at the end of it, as well as how "predictable" the market is.
You will then need to decide the price movement of the asset, as well as the value of the change. If an investor believes that the price is going to rise then they will choose the 'call ' option or if they believe it is going to fall then the 'put' option should be purchased. Get this right and you will end up profiting!
Finally, you will want to consider the expiry of your binary trading option. This is predetermined before the trade and you will need to make a decision on which one to choose. Companies such as Banc de Binary should give you all the information you need on the purchasing of options in this manner.
Trader Ed Lovett develops trading systems including his 60 Second Binary Options method. Click on one of these links now to discover his amazing story. Binary Options Scalping
If You Want To Learn About Trading Options And Making A Good Regular Income Then Read This
Trading options:
The portfolios of most investors today comprises of investments such as bonds, stocks and mutual funds. However, there are more securities in trading market today apart from the aforementioned ones. Trading options is one of them.
Trading options offer investors versatility. They allow one to adjust or adapt their position depending on the current situations. Depending on what one wants, trading options can be either speculative or conservative.
An individual can use trading options to protect their position from declining or even betting on the movement that take place in a market. The versatility of trading options however has its own demerits. Since they are very risky and very complicated, options of trading may prove costly in the long run.
It is important for an investor to know the risks that they are likely to experience when trading options. This should be the case for those who are not fully familiar with the activities they are engaging in. That is why most people suggest that one avoids options of trading as much as possible and assume their existence.
However, ignoring investment opportunities places one in a weak position financially and competitively. It is important to acquire skills on how to trade options before deciding whether or not to invest in them.
Options not only provide one with several investment choices but also enable one to have insight into the activities of some of the biggest corporations in the world. Most multinational corporations use options in various ways, for example, giving employees ownership in form of options for stock.
Option Strategies:
An option strategy usually involves purchase that happens simultaneously together with the selling of different contracts for options. This is also referred to as option combination.
There are generally four option strategies that an investor can use. These are: Position trading:
Traders normally buy stocks and hold them for a given duration of time. They then wait for a security to attain a good value, watch for insider or institutional buying and then offer to sell their securities.
As the prices of the security increases, a trader will look for other buyers who will step in a move resulting to further increase in the price. By doing this, the trader uses the position trading strategy.
Trend or momentum trading:
This is adopted by momentum traders. These move in when a stock has made a move or a breakout. They usually ride the stock to its major reversal along a trend.
They normally aim to make quick profits due to sudden moves in the prices of the stock.
Swing trading:
Traders who adopt this usually buy and sell swings that are within a given trend. Holding of stocks takes about two to ten days.
Day trading:
This is a strategy in which the traders focus on moves that occur during the trading day. It requires one to keep staring at computer screens the whole day. One may also need to have adequate knowledge about patterns and indicators during trading.
Trading on the stock market is not for the feint hearted and it takes time to develop the necessary skills to make a consistent income from it. There are many trading options and it makes sense to have the options strategies explained thoroughly before you commence with any real trades. Trading options is a good way to earn a regular monthly income when you understand fully how it works and you must not allow emotion to enter into your trades. This is far removed from gambling if it is executed properly and level headed traders will make the most money on a consistent basis.
Designing Your Very Own Options Trading Training Program
Do you want to engage in a training program about options trading program that will not consume much of your time and resources? Do you feel that those commercial training programs in trading available now a day are just deceiving you and just getting your money and time without getting much from them? Do you want to have a worry-free training program that will help you in developing your skills in options trading? Well, that will be easy as 1, 2 and 3, if you will consider the suggested options trading training program in this article.
There are a lot of commercial training programs about options trading that simultaneously rising as options trading boom in the market. These trainings offer different programs that are productive as they say. But many of those programs are just deceiving to traders. Most of them will get much from you without giving what you deserve, and that is the sad part of it. This situation makes many traders disappointed and gives them the impression that commercial training programs are big "NO NO's" for them.
The reason behind this is simple - those programs are COMMERCIAL training programs. Being commercially established, their main goal is to gain profit and not to serve a purpose of providing quality training for traders. That's why it will be a hard thing to trust them. But it is not a reason for a trader to stop getting in to training programs. You can still develop your skill without engaging with those training programs who offer nothing but expenses. This is by formulating and developing your very own options trading training program.
This solution develops not just the trading skills of a trader but also his trading values. Examples of these values are resourcefulness, self discipline, decisiveness and tactfulness. These values are much needed for this kind of program to become a success and the next parts will tell you why.
A trader who will undergo the program must be resourceful. This is in terms of finding credible and useful sources for the training. These resources are more on reading materials and trade samples, which a trader can read and study in order to give him ideas and concepts which he can apply in his trade. Those blogs, forums, and other sort of things from successful trade individual will be a great help for a trainee. In here you will somehow discover the trade secrets of those big names in options trading that you can use in your own business engagements.
Self discipline and decisiveness are also serving a very vital role in this training program. These two traits are the keys of success of this training. Without these two, a trainee will not be able to finish the training sue to laziness to continue. These values must also be carried by the traders not only during the training but also in engaging in their trade because these are much needed the success in the field.
Tactfulness is required in this training because the affectivity of this program is based on the approach and strategy of the trader to achieve knowledge and learning. The best thing that this training program offers is that it is flexible to your preferences and your learning style. You will be the one who will find your comfort zone in order to get what you need. It depends on you if where, when, and how you will train yourself and what topics you will study. In that case, you can learn more because you will be comfortable and you enjoy what you are doing. This will also make you prepared of getting in to your trade - in planning and devising your strategies.
The task of designing your very own options trading training program is really an easy task. The only hard thing to do is to start. But as you get along with it, you will find it smooth and enjoyable. The best thing to do is to start today. Little by little you will discover you will notice are getting the expertise and enjoying the product of your labor. Good luck!
Get the most reliable options trading training from our experts, visit this options training blog now.
The Risks Associated With CFD
Like in any method of trading and investing, contracts for difference or CFDs are not perfect. In other words, it does not always work positively in favor of the trader. Hence, there might be some times when a trader can gain so much profits while there are also unfortunate times that the change to earn is too aloof. Nevertheless, proper combination of skills, patience, courage and talent can minimize the change of being on the unfortunate side and increasing the possibility of earnings. It is in this regard that traders must know the risks associated with this form of trading in order to have a full understanding on what to do and otherwise.
Generally, some people say that trading markets on margin has the natural risk of magnifying both the profits and losses at the same time. Hence, what this means is that a trader can incur so much loss if the market goes against the position. However, it is a good thing that there is a solution for this, which is by placing a stop loss on the trade position.
On the other hand, another setback or danger of CFD trading is what people say on its suitability for long term investors. Well, this is because some would say that it is not suitable for them at all. This is due to the fact that opening a position for a long time increases the costs of holding the same. In this regard, it would be more beneficial to simply buy the underlying assets rather than this form of trading.
Further, in this trading method, an investor does have any rights to vote, most especially if the underlying assets are stocks or shares.
With the foregoing, the risks in CFD trading can, in fact, be in two (2) forms. These are the market risks while the other one is the liquidation risk.
Markets Risks of Contracts for Difference
On the one hand, one of the most common risks of trading these contracts is about the market risk. This is especially true if a trader does not have any exposure yet at all in the market. Nevertheless, even if a trader has been trading on the same market for a long period of time already, there are still some inherent market risks that players cannot just eradicate at all. These can be in the form of price fluctuations, movements in the supply and demand side and many more.
Liquidation Risks of Contracts for Difference
On the other hand, another risk of CFD trading is about the liquidation aspect. This is about the danger of having positions across accounts that brokers can liquidate at their demand. This happens when a trader faces a margin call in any of the trades.
CFDSpy.com is an online trading portal and education site, aimed at making it easier for traders to learn about CFD covering a broad base of different investment types and instruments, and its risks.
9 Tips on How to Grow Your Trading Account?
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Learn Options Trading: A Fast Way Towards Your Success
Do you have the drive of achieving financial security and freedom as soon as possible? Are you dreaming of having a comfortable living and an early retirement where you can taste the fruits of your hard work? Do you want to become one of those individuals who enjoy large amount of income from their investments? Here is a tip for you that will surely help you to fulfill those questions. You must learn options trading.
People nowadays are finding different avenues where they can achieve financial security and freedom. Investments such as mutual funds and stocks trading are like "must haves" for those people who are finding fast ways of achieving their financial goals. But those vehicles are very common, that is why many people are in to them now. For a starting trader and investor, the environment that those have trades will be harsh because of the heavy competition in it. If you are not that trade fit, you will definitely be eaten by those bigger ones. That is why it would be better to find other vehicles which provides almost the same benefits as those common trade fields but gives a newbie friendly environment.
Options Trading as an Alternative
Option trade is one of the best alternatives of those common types of trade which a starting investor can consider. It can offer you the benefits that those common fields offer without much of those tasks that those common ones have. That makes this field a friendlier place for trade newbie. This type of trade can offer you much without getting much from you so why would you not consider it as your option? It is not just your ordinary trade where you will just buy or sell products from the market. In here, you will engage in a contract where you will consider buying or selling something, depending in the contract, in a definite time. Maybe this sounds Greek for you this time but it will become clearer if you will continue to some options trading course.
Learning About Options Trading
Like what you have read a while ago, trading options term sounds Greek for a newbie, that is why you must subscribe for further trainings and courses to learn options trading more. This is not that hard nowadays because of the aid given by technology. You can easily find something to read or watch concerning options trading. Newsletters, blogs, forums, and videos are great help which an trading newbie can consider. There are a lot of websites that offers these materials in order to help options traders in their quest for further education. There are also those who offer on-line trainings which you can consider if you are willing to spend some amount, but that amount will surely not be wasted because of the learning and skills that you will acquire upon subscribing to such.
Being successful nowadays is not a hard thing anymore, especially for those determined individuals. With the presence of different avenues of trade and investment, it is just a piece of cake to enjoy a comfortable life. Moreover, getting in to trading will be a great help for it is a faster lane towards financial security and freedom. Learn options trading and be part of the roster of those successful individuals who enjoy the benefits that this trade offers. With this, your dream of having a comfortable living and early and worry-free retirement will surely be on your reach. Good luck!
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How Much Money Is Required to Start Day Trading?
Day trading today is so different then what it was back when I first started trading in 1989. In those days, most trading was done in what is called a Trading Pit, where securities and commodities were bought and sold via "open outcry".
Like in the movie "Trading Places" with Eddie Murphy and Dan Aykroyd, where you see all these people in different colored jackets shouting and waving their hands (called Floor Traders), surrounded by electronic price displays and news monitors.
When you wanted to make a trade, whether it be for a day trade or longer, you would pick up your telephone and call your broker, who would take your order over the phone and then, after confirming the order back to you, would relay it to someone else and eventually end up in the hands of one of these Floor Traders. The Floor Trader would then attempt to fill your order in the Trading Pit, and if filled, relay that information back to your Broker who would then call you back with your fill.
When it comes to Day Trading, where you need to get in and out of your trades quickly, the old way was not very efficient and at times frustrating and costly. A lot can happen in the time it takes for orders to arrive at the Pit and come back to you as a fill.
With the improvement in communication technology as the 20th Century was coming to a close, Electronic Trading (aka eTrading) became more prevalent and accessible to the every day trader. With just a click of your computer mouse, buy and sell orders could be placed instantaneously. If your price is met, you could be filled before your hand even moved away from your mouse.
Electronic Trading is arguably responsible for the major reduction in trading costs (commissions) seen over the years, as well as the increase in Day Trading activity. Not only can Day Traders make quick trades, but their cost per trade is also much lower than years before. Today, anyone with a small amount of disposable funds (never use money you need to live on) can get setup and start Day Trading.
So how much money is required to get started in Day Trading?
This is one of the most asked question by individuals looking to get into trading. It is also one of the most difficult questions to provide a black and white answer to.
The amount of money needed to start Day Trading really depends on several variables. What are you interested in trading? The (discount) Broker you decide to open an account with. The style of trading you wish to do.
Day Trading in the Stock Market is not really suited for beginners. Recent regulations require that you deposit at least $25,000 in cash or securities with your brokerage before you can day trade securities.
The Futures and Commodity markets offer Day Traders better access to day trade for a much smaller deposit. Depending on the brokerage, you can open a futures account for as little as $2,500, although many require at least $5,000 to $10,000. This is not the same as "margin", which is the minimum amount of capital you must have in your account in order to trade a particular a futures contract. The margin required depends on the market being traded and the current level of volatility. For example, to trade a single Live Cattle futures contract may require that you have an "Initial Margin" of $1,650 in order to initiate the trade, and it must not drop below $1,200 which would be your "Maintenance Margin".
In recent years, the FOREX (Foreign Exchange) currency trading has taken the trading world by storm. With access to free price data and trading platforms, lower minimum account balance requirements, no commissions (brokerages make their money via the ask/bid spread), and flexible trading unit sizes, it has proven to be one of the best options for anyone looking to get into Day Trading with less capital requirement.
With futures trading, just a few ticks can mean several hundred dollars (profit or loss) for most contracts traded. If you are just starting out and your account balance is only $3,000 to $5,000 (or even $10,000, which is not that much in futures), you could be seeing moves of 10% of your account within minutes! It is great when your timing is right and the market is moving in your favor. It is not so great when your timing is off by just a little and it is moving against you. For a Day Trader just starting out, it can be very difficult to succeed with this kind of leverage in futures with a small account.
In the FOREX markets, however, you only need to find a FOREX brokerage that gives you the flexibility of decreasing your unit size. While new regulations has tightened up the leverage available to traders (i.e. 250:1, 100:1), being able to adjust your unit size makes it possible for traders to trade pip sizes (think 'ticks') that are even less than $1 each. Some brokerages have "no minimum deposit" requirement to open an account. Your only restriction for trading a currency pair is the amount you have on deposit in relation to the unit size you have chosen to trade, due to margin requirements. So if you have a small amount in your account (say just $200), simply adjust your unit trading size down so that you meet the margin requirement. While a small pip size won't make you large profits during a single trading day, it also means you can avoid large losses as well. And if your day trading experience grows to where you are making consistent profits, those small gains can add up to increase your account size. With your account size increased, you can adjust your unit size up accordingly.
So if you are interested in getting started in day trading, if you choose to trade in the FOREX markets, you can do so for very little money.
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Can Human Day Traders Beat HFT Manipulation?
A man named Dan Sullivan, a former Chicago Mercantile Exchange floor trader, recently disclosed a manipulative experience. Sullivan bought and sold derivatives based LIBOR interest rate. Recently, Big Banks have been accused of manipulating the LIBOR rate. Back in 2008, Sullivan received a text message that indicated Lehman's was going under. Based on prior positioning with his derivatives, Sullivan expected to make one million dollars when the new LIBOR number came out the next morning. Knowing how the LIBOR figure is used and the likely collapse of Lehman, he was very sure of himself.
What happened that morning? The LIBOR number was mostly the same. There wasn't a significant increase or decrease. Sullivan was dumbfounded. In hindsight, it became clear - the banks had lied about the number. Many traders are suing because of the alleged deception.
Scott Patterson, Wall Street Journal report and author of the popular Dark Pools high frequency trading book, was recently interview by Brian Lehrer of NPR. High frequency trading computers are responsible for 60% to 70% of all trading today. As such, HFT trades make up the majority of the liquidity. These computers send in massive waves of orders to buy and sell futures, stocks, options, etc. Instead of humans handling orders, this incredibly fast pace has left regulators in the dust. While the markets are theoretically regulated by the FCC and CTFC, they lack the computing resources, manpower and funding to properly supervise.
Without regulation, you have manipulation. Let's say Greece defaults and a big move in the currency markets results. The high frequency algorithms will see this occur and positions will immediately change. When high volatility occurs, the HFT systems are able to pull out. Because of the liquidity caused by HFT, the markets would grind to a halt. Look up "splash crash" to see what researchers say about this hypothetical scenario. Sure, regulators could say that the HFT systems cannot pull out during a crisis, but again, this is a complex enforcement issue.
We will now look at a third manipulation scenario. Major news events and company press releases can greatly affect financial markets. This results in instant volatility across the world's most popular stocks, futures and currencies. Laws and policies are in place to prevent this type of information dissemination. What happens when an insider lets a trading friend know the Apple third-quarter profit figures prior to the public announcement? This trader friend can now place trades anticipating the financial reaction. This trader can also share this information with others. To leak, only a few seconds are required considering the speed at which we are able to communicate today. There are many hands announcements must pass through before they become public knowledge.
Retail traders, those who trade from home as a hobby or as fulltime income, are also at risk when it comes to manipulation. These traders must be aware of the instability imposed by high frequency trading. Humans looking to position themselves within a fast past world of automated, algorithmic buying and selling should consider a trading education. Such training teaches strategies that recognize manipulation and work alongside it.
High Frequency Trading is here to stay. Even though governments may improve trade monitoring technology, the speed at which automated systems develop far outpaces the cumbersome paradigm. Sure, governments recognize how HFT have become intertwined and necessary function of electronic trading.
Visit DayTradeToWin.com to learn price action methods to combat HFT trading.
Tick Charts or Time-Based Charts For Trading Emini Futures
Charts are used by just about every emini futures trader that relies on technical analysis to read the market, spot potential set-ups and determine when to enter and exit positions. How these charts are set up within a trading system depends on many factors including personal preference, trading instrument and method of approach such as scalping, day trading or swing trading. Most people active in the markets are aware of time-based charts like the daily, hourly, 15 minute on down to the 1 minute time frame. However, tick charts are growing in popularity and for good reason - they provide a better picture of what it going on within the market.
Conventional time-based charts will draw a bar after each successive time period has completed a cycle. For example, if the trader set his chart to a 3 minute time frame, a bar would form every three minutes. Each new bar would move up or down based on market action depending on who is in control at the time, bulls or the bears. These traditional time bars tell us a lot but the tick-based chart tells us more - a lot more!
Tick charts only draw a bar once a set number of trades have been completed as designated by the individual trader within his charting software. For example if the 1000 tick chart were used a bar would not form until 1000 trades have been completed. Used in conjunction with the volume histogram, we can determine how many average contracts were exchanged with each trade. If a high volume of contracts were traded on average, we know the professionals are in control and it is best to pay attention. If a low volume of contracts were traded on average, then we know amateurs are most likely at work.
Tick charts are also better at helping us avoid whipsaws since they only show the number of completed trades. This is particularly useful during periods of low activity like the New York lunch hour or during the overnight session since compression makes interpreting the data easier and more reliable.
Tick charts are quickly becoming the charting tool of choice especially among emini futures traders although they do require an adjustment period when switching over for those currently using time-based charts. However, with the amount of market information they provide the choice to move over to the tick-based chart is a no-brainer and they work equally as well on the ES, NQ and YM mini contracts.
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How to Use Trading Signals
In today's highly correlated investment world, knowing how to use trading signals can provide a significant advantage in the stock market. There are several types of services and systems available today, and we will cover a few of them here - including fully automated systems, advanced research services, and live trading signals.
How to Use Fully Automated Systems
Easily these are the most advanced (and most expensive) programs in the marketplace. Highly sophisticated computer programs probe the markets for opportunities at rates of thousands of times per microsecond - testing price levels and searching for weak hands. These computers are the bane of every investor in the market who has ever used a stop-loss trade trigger to reduce major loss risk. Access to HFT programs is limited to those who can afford the arms-race that has ensued since the first appearance of the platforms. Slower connection speeds and processing power rending older systems obsolete to newer faster setups.
Using Advanced Research Signals Services
A second means available to day traders is the use of professional signal services. These companies do continuous market research and inform their subscribers about opportunities upcoming on specific securities at specific price levels. This gives those investors the opportunity to be on the lookout for specific, manageable events in the market and jump in front of the wave to catch some quick profits. This strategy is particularly effective for day traders of binary options. Subscription prices range from a few dollars per month to over one hundred dollars and are based on frequency of delivery. A more expensive service will deliver more frequent alerts while a less expensive one will only send out research infrequently.
How to Use Trading Signals with Live Market Data
A third way of how to use trading signals involves using a wide level of market observation to quickly assess current conditions and make predictions about future directions of specific markets and assets from more broad perceptions of global markets. This is sometimes referred to as using macro-effect influences to predict individual asset behavior. This has arisen out of the broad correlation amongst global securities today - given the speed at which the largest, most sophisticated investors can move into and out of assets at will. The advantage of using market data to gauge conditions is that is usually pretty inexpensive. The disadvantage of course is knowing which relationships to observe and how to interpret the information being delivered. Many tools and indicators have been developed over the years to help harness the massive information overload.
Day traders know that correctly diagnosing the initial market direction is critical in determining the profitability of short term trades such as those done in binary options trading. A recently developed demonstration trading signals app is a rudimentary example of how a set of macro-factors can be distilled into an easy to read indicator of global market indicators.
Do You Own An Asset Management Firm? Why Not Outsource Reconciliation Services?
With the expansion of asset management industry, the workforce within the organizations working under this industry is also growing and with the increase in the number of employees, it becomes essential for these organizations to efficiently manage the accounts involved in keeping the company running smoothly. The business owners in asset management firms will not be in a position to watch out every policy or law involved in maintaining the accounts pertaining to their organization. In addition to management of accounting, there are good firms offering securities reconciliation services as well.
These accounts reconciliation firms check whether all the book keeping records of the organization matches with that of the appropriate bank statements. For reconciling the books of organizations, the reconciliation firms collect all the information pertaining to the finance side of the organizations. Since effective management of accounts is highly essential for any firm to progress, many organizations these days are outsourcing their reconciliation work to firms specialized in offering these services. With the help of these reconciliation service providers, business owners can enjoy the following benefits.
Cost cutting: This is the biggest benefit to organizations since they need not think about employing a team of reconciliation professionals and paying them salaries.
Trained professionals: When the work is being outsourced to a professional firm, organizations can be rest assured of the perfection of work in such a way that chances of errors can be greatly minimized or even nullified.
Awareness of regulations and laws: When it comes to reconciliation of accounts, anything or everything pertaining to cash flow has to be followed according to the local rules and regulations. A professional firm dealing with these services would be well-aware of the laws to be abided and so they ensure that everything is done perfectly without any flaws.
Streamlines procedures: Generally, professional firms dealing with accounting and securities reconciliation have their own set of rules for ensuring the quality of their work. Therefore, each and every transaction and documents enters heavy scrutiny to meet the quality standards.
The accounting procedures pertaining to any company in the field of asset management or any other field for that matter should be strictly followed in such a way that the company can create good will among the people, which will in turn boost its status. Ensuring that the right reconciliation service provider is selected will sure enable any organization to effectively manage its reconciliation task without any difficulty.
Empaxis offers position and securities reconciliation services. We specialize in developing, implementing trade reconciliation and reporting processes for clients. We also offer back office outsourcing and hedge fund reconciliation services. For more details, please visit us.
Become a Forex IB to Benefit From a Lucrative Partnership
Among the huge financial marketplaces of today, the world of foreign exchange is more popular than other first-rate investment alternatives like stocks, commodities and bonds. With an average of $4 trillion being traded every day, the never-ending numbers of profit possibilities are found in the biggest financial market on the planet.
Before anything else, let us give details regarding the forex IB or introducing broker and his/her role. Such brokers are persons or organizations that possess other persons who have a genuine interest in trading currencies. What the introducing brokers would perform is to offer their clients some of the best trading platforms and technologies of other renowned brokers, so that they can actively and professionally participate in the currency market. You are actually rendering them with greater investment chances that result in an improved forex partnership and popularity among your customers.
When you develop into a foreign exchange IB, you acquire a commission on all the income brought forth by the client you have referred. Your customer is not going to pay further to compensate for this. You are secured by the brokerage firms who pay a percentage of the profits made by them. The IBs also receive updates on a daily basis pertaining to the status of their business in the form of reports that contain your rates of commission. This aids you in keeping up to date with your business round the clock.
One more benefit a forex IB enjoys is the fact that due to the fast development of foreign exchange as the most sought after investment option, you do have the possibility to catch the attention of big investors. Your status goes up when you are recognized as a noteworthy provider of financial services because such investors with huge capital have got their accounts handled by experts.
What is more, foreign exchange introducing brokers have the benefit of getting started without difficulty. You essentially need to determine what sorts of services you would like to offer your clients and seek the same from the prestigious brokers you have been associated with. Based on the trading volume of your customers, the brokerage agencies pay you a commission and other incentives. Large investors are likely to possess greater volumes. Thus, drawing in these classes of investors is an immense plus point as noted above.
With such a forex partnership, your customers derive a benefit from the striking components the foreign exchange market has to provide. These include round-the-clock trading, great leverage, top liquidity and the most dynamic marketplace in the world. You can broaden your horizons by building your portfolios with other lucrative roles such as forex IB. In addition, customers do not have to be professionals so as to be capable of trading the currency market. They can gain knowledge from the brokerage companies on their own using the training materials supplied. There are also managed accounts that assist the customer in flourishing in his investment undertaking. So, consider this new forex partnership seriously and earn more money than ever before.
Millard Dorsey is an experienced foreign exchange trader and recommends YTFX Affiliates for the best associate programs online for great incomes. Be a forex IB or introducing broker and earn attractive commissions forming a moneymaking forex partnership.
Things That Makes Day Trading Different From Other Trading Styles
When a person wants to start trading the stock market he or she has to figure out whether they want to do Day Trading, swing trading or long term trading. There are many different styles the trader can use to trade these different time frames and despite technical indicators and chart patterns that work on all time frames, there are certain things to keep in mind. Day Trading is the style that is most unique so in this article I will be talking about what makes this short term trading so different from the other styles and what the trader should keep in mind when trading intraday.
Things To Keep In Mind When Day Trading
Here the trader can use the normal technical indicators such as Bollinger Bands or MACD to look for favorable setups. One has to keep in mind that if there has been a overnight price movement, commonly known as a gap, the indicator can be out of place or give extreme readings. In this case the trader is advised to wait 2X bars where X being the length of the indicator used. For example if the trader is using a 20MA Bollinger Band he/she should wait for at least 40 Bars to be printed. This will return the indicator back normalcy and minimize the amount of fake signals the indicator might give.
Another tool used for intraday trading that requires some modifications are chart patterns. The most important thing to keep in mind is that chart patterns work best intraday if they are part of a move that occurs only during that day. A chart pattern that uses price bars from previous day is likely to be invalid. This is because chart patterns use trading psychology and captures traders on the wrong side of a trade but as most traders are flat "end of day" then there are no losing traders to "feed" on. So there is almost no reason to use price bars from prior day in the chart patterns. This is especially true looking at a time frame setting of 10 min or below.
Signals provided by technical indicators and chart patterns are more valid at certain times of the day than others. It is well known that the first 15-30 min of the trading day is made up primarily of retail investors. These retail investors are often buying because they read some news about a certain stock and are highly emotional. Because the morning price action is highly influenced by retail investors or traders, any signals in this time slot is not likely to follow through. It is therefore recommended to wait for signals after the 30 min opening price.
Another time of day to keep in mind is lunchtime. The big institutions slow down their trading as managers are leaving for lunch. This means volume is drying up and low volume often results in bad signals from indicators and fake break outs from chart patterns. A tip could be to close down for the day if you are already profitable. No reason to give back profit during the doldrums!
Finally the last 15-30 min of the trading day is something the trader is advised to stay away from. This is because the institutions are rebalancing their positions which often results in noise on the chart which then means the indicators are giving the trader fake signals. A shame to lose profit for the day on a bad signal so stay away from these last 15-30 min.
re you looking for free day trading education then feel free to visit our website. Here you will find many videos explaining in details the indicators and chart patterns. You will also find articles covering trading psychology.
Play Smart And Create A History In The Flourishing Field Of Binary Trade
Binary options also known as digital options are the most recent trading options for the traders' worldwide. The most appealing characteristics of binary options trading are low investments & high return rates. Unlike conventional vanilla trading options, binary options are versatile, exclusive of any complexities. This trade is based upon simple procedures, and is considered as the most convenient and fastest growing peripheral of trading market. Binary trading options only needs to anticipate the direction of a particular asset's price where as other kind of trading options also require speculation on the magnitude of movement of a specific asset price. Moreover, binary trading options are considered as one hour options while vanilla options expires once in a month only. In addition, binary options pay a fixed return.
How It Works?
Binary trading is pertinent for different types of leading assets, such as Forex trading, global stocks/indices, commodities and events.
Forex Trading
It comprises of trade with currencies. In a particular Forex trade interrelation between two currencies are used. By choosing binary options in Forex trading, settlement is made either at 0 or 100 value, as determined by the exchange market. For example, if u chose a pair of USD/JPY and you anticipate that dollar will depreciate as compared to the spot price and it will decrease against YEN. So, you decided to sell the share. Now, the profit or loss can be calculated depending on number of contracts, bid price & the contract price. Different exchange markets are opened worldwide for Forex trading; NADEX is one popular & reliable out of those available.
Global Stock/ Indices Trading
It is about trading numerous shares in a specific market. For example, Binary trade can be used for different stock indices available in US & rest of the world. Wall Street, USTech100, Germany30 etc are leading stocks in the world. Binary options for this asset can be used exactly the same way like Forex Trading. It requires speculation on whether an index will rise or fall the spot price. Hence, trade can be done under simple circumstances, and profit & loss can be achieved accordingly.
Commodities
For a binary business with commodities such as metals, energies, agricultural, less collateral is required for never-ending trade opportunities. However, it also works on same principles like the other leading assets. The aforementioned commodities in binary trading are considered as a safe measure to hedge the shares portfolio and prevent the economic & political crises.
Events
Binary options trading are also applicable to events such as weather announcements, jobless claims, non firm payroll announcements etc. Binary Options is an excellent tool for weather announcements because many leading companies are adversely affected by unpredictable weather conditions and natural disasters like hurricanes, sand storms etc. Therefore, binary trader can serve these companies and earn high payouts by making extensive research in the field and biding on the environmental conditions.
Smart Tactics for Safe And Successful Binary Trade
The most efficient & profitable strategy for binary trading is Market Pull Strategy. This strategy is based on Knock-On-Effect. It uses the concept of interrelation of one option with another option. The most universal application of this strategy is dependency of a particular currency on a specific commodity. For example, USD relies on Gold, Silver & Oil. Indian Currency rupees depend on Gold. New Zealand currency is also commodity linked currency and list goes on.
Nevertheless, there are various interrelationships in the financial markets that are worthy to consider. So, for a victory in binary trade, you first need to educate yourself with the different price movements of the options available.
Another beneficial strategy to implement in binary trading is Reverse Strategy. If your Forex trades does not give you success, then take a position opposite to that for binary trade. It involves picking up a cheaper binary option. In this way losses are minimized & risk is controlled. Moreover, use of financial indicators can be productive to you before you begin speculation on any asset, to ensure valuable profit in your investment.
IntelliTraders is a free Binary options trading community to help traders to learn and start trading with best brokers.
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