Archive for February, 2010

Great Tips For Successful Forex Trading

Knowing how to trade in Forex is simply just not enough to be successful. In this largest and the most liquid financial market in the world, you need to have more than the knowledge and skills to be successful. You need to know about the different things involved in Forex to earn huge amounts of money.

Simply knowing how to trade Forex and about the major currencies traded, like the US dollar, the Japanese Yen, and others are just the basics. Knowing when to trade and what to trade is equally essential to be successful in Forex.

Fore these you need to have a trading strategy. So, what exactly are the trading strategies involved in Forex? There are a number of money making strategies that you can use when trading in the Forex market.

If you use these strategies correctly, you will earn huge amounts of money in a very short time. Firstly, you have to realize that Forex trading is very different from Stock Trading. Therefore, strategies are also very different.

The first strategy that you can use to earn a lot of money in the Forex market is the leverage Forex trading strategy. In leverage Forex trading strategy, it allows you, as an investor in the Forex market, to borrow money to increase your earning potential.

With this strategy, you can easily turn your money to 1:100 ratio. However, the risk involved can be great. This is why there are stop loss orders you can use to minimize the risk and also to minimize the loss. The leverage Forex trading strategy is one of the most commonly used strategy by Forex traders to maximize profits.

In the stop loss order strategy, the Forex trader creates a predetermined point in the trade where the investor will not trade. As mentioned before, you can use this strategy to minimize risk and minimize loss. However, this strategy can also backfire to you, as the Forex trader. This is because you may run the risk of stopping your trades when the value of the currency goes higher than expected.

It is up to you to decide if you will be using this strategy or not.

These are some of the strategies you can use when trading in the Forex market.

Forex trading is a 24 hour market where you can trade anytime and anywhere you are. If you think that the Forex market conditions are good at a specific time, then you can trade at that specific time.

Also, the Forex market is the most liquid market in the world. This means that you can enter or exit the market anytime you wish to. This is to minimize the risk and there is also no daily trading limit.

Here are other tips that you should remember in order to earn money in the Forex market and be good in doing so:

? The first and the last ticks are usually the most expensive. So, for most traders, the rule of thumb is getting in late and get out early.

? When you are losing, you want to minimize the risk of losing more money. So, don’t add money when you are losing.

? Select trades that move along with the trend. This can minimize the risk of losing money and maximize your chances of profits.

There are quite a few tools you can use when trading in the Forex market. One is the Forex charts. For the speculator, the chart is the most important tool that you can use to determine market trends and accurately predict the future value of the currency. Although it isn’t actually 100% accurate, you can use the Forex charts as a guide to what’s happening in the market.

You need to know how to read the different charts involved in the Forex market. There are daily charts, hourly charts, 15 minute charts and even 5 minute charts to get you closer to the action. You can compare each of the data in the chart to spot market trends and at the same time, spot potential money making trends.

This can also help you minimize the risk when trading in Forex. Learn how to read charts effectively and you will be well on your way to become successful in the Forex market.

These are some the strategies and tips that you should keep in mind in order to minimize the risks in Forex trading and maximize your earning potential. Depending on your skills and how you apply your strategies, you can really make a lot of money in the Forex market. However, to be a truly successful Forex trader, you need to accept the fact that you will sometimes lose money. Never get discouraged when you do. Analyze where you made your mistake, think of a solution to get back what you lost and continue trading.

Gerald Mason
http://www.articlesbase.com/finance-articles/great-tips-for-successful-forex-trading-222546.html

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When traders contemplate purchasing a new trading system for stock market trading, they typically don’t consider the cost of ownership. But, there are many things that new traders should consider when purchasing a new piece of software like the cost of maintaining the software and the cost of the data the program will need to function. In this article, I will mention some of the additional cost that traders should consider before making the decision to purchase a new trading system for stock market trading.

The cost of owning a trading system or charting package for trading the stock market can be very high. Several factors come into play when looking at the overall cost like the type of market you trade and whether or not you intend to use end of day or real-time data. A stock market trader who is looking to trade stocks real-time versus end of day could find their data costing as much as 200% more than the typical end of day data service.

The format of the data can make a difference too. A program that requires a specific data format can be more expensive to own. Two common formats of data for trading software are Metastock and ASCII. There are pros and cons of using both. But since these are among the industry standards for data format, and makes data vendors more plentiful and there is more competition. Obviously, it is this competition the keys the cost down.

When the trader considers a real-time service they can end up paying much more. However, the cost may be justified depending on how frequent the trader trades and the type of market he trades. A trader who trades in markets such as futures can experience a good deal of volatility and therefore they may want to have a real-time service where they can see the fluctuations of volatility that occur during the day in the charts of their trading.

An alternative to a real-time service is a delayed service. A service that delivers delayed quotes can cut the cost of the data by as much as 80% from the real-time counterpart. This can make a huge difference for traders to or just starting out and may want to use the money to trade rather than pay for real-time data.

The cost of owning a trading system can be pretty steep for beginners and professionals alike regardless of whether or not you are interested in stock market trading or some other market. When considering the purchase of a new system, traders should take the cost of their data feed into account. This sets their foot firmly on the path of treating trading less like a hobby and more like a business.

Sam Perdue
http://www.articlesbase.com/finance-articles/trading-systems-what-you-need-to-know-before-you-buy-one-128424.html

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Options Trading 101

The individual investor will typically include some stocks in their investment portfolio. And whether they are a long term trader or in it for much quicker returns, many investors understand and feel somewhat comfortable with the concepts and techniques of trading stocks.

Options tend to be much less understood – and therefore avoided. But Options can form an extremely valuable part of your trading strategy as they can provide tremendous returns!

So here I will try and give you some of the fundamental concepts behind trading options.

Options are a contract conferring the right to buy (a call option) or sell (a put option) some underlying instrument, such as a stock or bond, at a predetermined price (the strike price) on or before a preset date (the expiration date). Options officially expire on the Saturday after the third Friday of the contract’s expiration month but because the markets are typically closed on Saturdays, the Friday is commonly used as the expiration date.

A key concept to grasp is that, when you buy an option, you don’t actually own the underlying security. You simply own the right to buy (or sell) at a specific point in time. But, of course, the price of the underlying instrument and the time remaing before expiration both affect the value of the option itself.

So in trading options you have two main ways to make money on them:
- You can hold to maturity and then exercise the option (with the expectation that the underlying instrument is then worth more than what you are entitled to buy it at – your “strike price”)
- You can sell the option itself prior to expiration (in the expectation that the value of the option itself has risen above what you paid for it)

A great many investors do in fact hold until maturity and then exercise the option to trade the underlying asset. Assume the buyer purchased a call option at $3 on a stock with a strike price of $30. (Typically, options contracts are on 100 share lots.) To purchase the stock the total investment is:

($3 + $30) x 100 = $3300 (Ignoring commissions.)

So if, at expiration, the stock is worth more than $33 you’ve made a profit (You can sell your 100 shares for more than $3300 right away).

Speculating on the actual value of the option itself is the second alternative.
Let’s use the same example above.

You bought your options for $3 with a strike price of $30.

If the price of the underlying stock goes above $33 at any time prior to expiration, then naturally more people will want to try and get a hold of that option you own, because they see a high likelihood of making a profit off the underlying security. With the increased demand for that option, the value of the option itself will likely go up. So you can sell the option to that higher bidder for a profit.

For example, if the price of the underlying stock rose to, say $35 then the option itself may become worth, say $4 on the open market. So you sell your options for $4 and make a nice 33% return. Without ever having owned the underlying stock itself.

Those are the kinds of returns that make options so attractive.

Many brokers offer trading accounts to individual investors that allow options trading and frequently at very competitive commision rates.
It really isn’t very difficult to get started.

Options trading is risky, so manage your risk and your assets wisely and only use a small percentage of your overall portfolio for trading options. But do consider them as an additional component of your investment strategy, as they can yield tremendous returns when traded correctly.

Richard Cochrane
http://www.articlesbase.com/finance-articles/options-trading-101-120650.html

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Labor Market Information

Daily Market Commentary for December 11, 2008 from Millennium-Traders.Com

The weak U.S. labor market, per data released this morning as well as, ailing trade data released this morning indicates we are in a deep recession. (read more)
http://www.millennium-traders.com/news/newscommentary.aspx

Economic data released today:

Import and Export Prices:
U.S. November Import Prices fell 6.7% compared to consensus of a drop by 6.0%; U.S. November Non-Petroleum Import Prices fell 1.8%; U.S. November Petroleum Import Prices fell 25.8%; U.S. November Import Price Drop Largest on Record; U.S. Import Prices of Autos Post 16-Year High Drop.

Jobless Claims:
U.S. Jobless Claims rose by 58K to 573K in week of December 6 compared to survey of an increase by 24K; U.S. Continuing Claims for week of November 29 increased by 338K to 4,429,000; U.S. Jobless Claims for week of November 29 revised to 515K from 509K; U.S. Initial Jobless Claims Rise to 26-Year High; U.S. Weekly Rise in Continuing Claims Highest in 34 Years.

International Trade:
U.S. October Trade Deficit came in at $57.19B compared to consensus Deficit of $52.8B; U.S. September Trade Balance Revised to Deficit of $56.56B from Deficit $56.47B; U.S. October Exports came in at $151.73B lower by 2.2%; U.S. October Imports came in at $208.92B down 1.3%.

Companies in the news today:
Google (NasdaqGS: GOOG) accounts for 71.97% of all U.S. searches during November; Yahoo (NasdaqGS: YHOO) accounts for 17.7% of all U.S. searches during November; MSN accounts for 5.45% of all U.S. searches during November; Procter & Gamble (NYSE: PG) reported they will miss their prior 4Q estimate; Eli Lilly (NYSE: LLY) reported earnings for 2009 is expected to come in below analysts’ expectations.

At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) triple digit loss of 196.33 points to end the trading session at 8,565.09
NYSE (New York Stock Exchange) triple digit loss of 126.34 points to end the trading session at 5,504.73
National Association of Securities Dealers Automated Quotations (NASDAQ) loss of 57.60 points to end the trading session at 1,507.88
S&P 500 (SPX) loss of 25.65 points to end the trading session at 873.59
FTSE All-World Index data excluding U.S. (AW01UK) loss of 0.59 points to end the trading session at 145.57
FTSE RAFI 1000 triple digit loss of 118.07 points to end the trading session at 3,345.89
BEL 20 (BEL20) loss of 26.54 points to end the trading session at 1,879.70
CAC 40 (CAC40) loss of 14.18 points to end the trading session at 3,306.13
FTSE100 (UKX100) gain of 21.41 points to end the trading session at 4,388.69
NIKKEI 225 (NIK/O) gain of 60.31 points to end the trading session at 8,720.55

New York Stock Exchange (NYSE) stock market indicators for the trading session today:
Advanced stock prices 709, declined stock prices 2,472; unchanged stock prices 56; stock prices hitting new highs 7 and stock prices hitting new lows 66. NYSE quotes for volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Hanesbrands Incorporated (NYSE: HBI) stock price shed 3.46 points on the trading session, high on the trading session $13.88, low on the trading session $10.85 with a closing stock price at $11.01; Greif Incorporated (NYSE: GEF) stock price gained 4.45 points on the trading session, high on the trading session $35.18, low on the trading session $29.42 with a closing stock price at $34.05; Apache Corporation (NYSE: APA) stock price shed 1.22 points on the trading session, high on the trading session $77.29, low on the trading session $72.01 with a closing stock price at $72.94; Rio Tinto (NYSE: RTP) stock price shed 3.99 points on the trading session, high on the trading session $95.25, low on the trading session $88.88 with a closing stock price at $90.51; CME Group Incorporated (NYSE: CME) stock price shed 7.67 points on the trading session, high on the trading session $234.88, low on the trading session $2113.13 with a closing stock price at $213.70; ProShares Ultrashort S&P 500 (NYSE: SDS) stock price gained 4.11 points on the trading session, high on the trading session $89.21, low on the trading session $82.56 with a closing stock price at $87.91; ProShares Ultrashort Financials (NYSE: SKF) stock price gained 17.18 points on the trading session, high on the trading session $130.43, low on the trading session $113.00 with a closing stock price at $128.88 ProShares Ultrashort QQQ (NYSE: QID) stock price gained 3.67 points on the trading session, high on the trading session $71.59, low on the trading session $65.80 with a closing stock price at $70.93; Devon Energy Corporation (NYSE: DVN) stock price shed 1.59 points on the trading session, high on the trading session $75.30, low on the trading session $69.51 with a closing stock price at $70.97; ProShares Ultrashort Real Estate (NYSE: SRS) stock price gained 19.58 points on the trading session, high on the trading session $99.31, low on the trading session $78.55 with a closing stock price at $96.30.

National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators for the trading session today:
Advanced stock prices 763 declined stock prices 2,064; unchanged stock prices 137; stock prices hitting new highs 3 and stock prices hitting new lows 83. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: Baidu.com Incorporated (NasdaqGS: BIDU) stock price gained 6.76 points on the trading session, high on the trading session $121.00, low on the trading session $107.80 with a closing stock price at $111.30; Urban Outfitters Incorporated (NasdaqGS: URBN) stock price shed 3.72 points on the trading session, high on the trading session $15.88, low on the trading session $14.68 with a closing stock price at $15.14; Costco Wholesale Corporation (NasdaqGS: COST) stock price shed 1.77 points on the trading session, high on the trading session $53.47, low on the trading session $50.70 with a closing stock price at $51.92; First Solar Incorporated (NasdaqGS: FSLR) stock price shed 2.11 points on the trading session, high on the trading session $126.45, low on the trading session $115.37 with a closing stock price at $117.57.

Market trends on the American Stock Exchange (AMEX) and stock market indicators for the trading session today:
Advanced stock prices 252; declined stock prices 343; unchanged stock prices 75; stock prices hitting new highs 3 and stock prices hitting new lows 28.

Chicago Board of Trade Futures Market activity for the day, at time of this posting for December 2008 Contracts:
E-mini S&P 500 (ES): End of trading session price 873.50; Change for the trading session -22.25
E-mini NASDAQ-100 (NQ): End of trading session price 1,183.00; Change for the trading session -34.00
E-mini DOW $5 (YM): End of trading session price 8,589; Change for the trading session -129
E-mini S&P MidCap 400 (MF): End of trading session price 492.00; Change for the trading session -24.70
E-mini S&P Small Cap 600 (HS): End of trading session price 240.60; Change for the trading session -14.70

World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7496 to U.S. Dollars 1.3340
Japanese Yen 91.7400 to U.S. Dollars 0.0109
British Pound 0.6660 to U.S. Dollars 1.5014
Canadian Dollar 1.2352 to U.S. Dollars 0.8096
Swiss Franc 1.1847 to U.S. Dollars 0.8441

COMMODITY MARKETS:

Energy Sector – Nymex:
Light Crude (January 09) gained $4.46 on the trading session for a closing price of $47.98 per barrel ($US per barrel)
Heating Oil (January 09) gained $0.10 on the trading session for a closing price of $1.51 a gallon ($US per gallon)
Natural Gas (January 09) shed $0.09 on the trading session for a closing price of $5.60 per million BTU ($US per mmbtu.)
Unleaded Gas (December 08) gained $0.11 on the trading session for a closing price of $1.08 a gallon ($US per gallon)

Metals Markets – Comex:
Gold (February 09) gained $17.80 on the trading session for a closing price of $826.60 ($US per Troy ounce)
Silver (March 09) gained $0.23 on the trading session for a closing price of $10.43 ($US per Troy ounce)
Platinum (January 09) gained $5.50 on the trading session for a closing price of $845.50 ($US per Troy ounce)
Copper (March 09) gained $0.02 on the trading session for a closing price of $1.51 ($US per pound)

Livestock and Meat Markets – Chicago Mercantile Exchange (cents per lb.):
Lean Hogs (October 09) shed 0.75 on the trading session for a closing price of 62.38
Pork Bellies (February 09) shed 2.08 on the trading session for a closing price of 82.43
Live Cattle (February 09) gained 0.03 on the trading session for a closing price of 83.83
Feeder Cattle (January 09) gained 0.45 on the trading session for a closing price of 87.33

Other Commodities – Chicago Board of Trade (cents per bushel):
Corn (March 09) gained 9.50 on the trading session for a closing price of 352.00
Soybeans (January 09) gained 27.00 on the trading session for a closing price of 856.50

BOND MARKET: n/a

Thanks for reading
Millennium-Traders.Com
http://www.millennium-traders.com

MTnews
http://www.articlesbase.com/investing-articles/labor-market-information-680398.html

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BY.-  http://www.ChatHotStocks.com

A beginner usually feels very attracted to the stock market while for example discovering a small cap stock that’s being reported in CNBC or the news program and watching it rise steady fast and make new highs from $10 to $70 in just 2 months.

While learning about this successful news story he’s saying to himself “Oh boy if I was one of those lucky guys who bought that stock back when it was priced at $10 I easily would have tripled my money by now… That means my 10 grand would transformed in to a whooping 70 K! hassle free … I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way!”

The stock market news constantly reports of hot small cap stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90′s you could easily see a good number of hot stocks sprouting out every week.

Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today’s market is a different story. A totally different animal.

Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.

The fact that the bull market period has ended for now doesn’t mean that you can’t make a great deal of money in today’s market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading stocks online.

Success in stock trading starts by applying a wiser and REALISTIC methodology for choosing hot stocks as well as for getting in and out of them with profits in mind.

You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down.

You got to WORK SMARTER and get more selective about the hot Stock Trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.

The bottom line is you have to PREPARE YOUR SELF to be successful, just like you would do it in other areas of your life in order to achieve success.

Best Stocks
http://www.articlesbase.com/investing-articles/how-to-make-money-in-the-stock-market-in-2009-making-money-trading-shares-online-727519.html

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