Online Trading - Stock and Option » Futures Trading

Find The Advantages Of Forex Trading

admin — Mon, 21 Dec 2009 18:40:00 +0000

DefinitionIn a foreign exchange market different currencies are traded on an electronic platform which has no fixed location, but allows you to buy and sell these currencies on a 24 hour basis, from Monday to Friday throughout the year. This is what is generally referred to as forex trading. The Internet has made forex trading very simple and people from all over the world can trade in currencies. This has made forex trading very widespread and popular.The forex traderThe amount of currencies that are exchanged every day is about two billion dollars, and almost everyone with an inclination to trade has got into it. The individual private traders trading in the forex trading market are linked up to forex brokers who in turn are linked up to MNC’s and big banks from all over the world. If you want to become a forex trader and indulge in forex trading you would have to look for an authorized forex broker. These brokers are generally authorized by statutory bodies in their country of origin and are subject to the laws in that particular country.Money ChangersMoney changers have been part of the seen in traditional free markets throughout the world and especially in the Middle and Far East. They helped the customers to exchange the currency that he (the customer) had into the local currency so that the customer could buy products in that market. Forex trading is just this exchanging of currency on a much bigger basis. It is on a much larger scale and allows the exchange of current between banks and corporations all over the world, who require to leverage the difference in the exchange rate to buy other products from various countries. Customers for such foreign exchange can be large companies and even state governments. Taking advantage of this forex marketForex trading is limited to 8 major currencies that are considered suitable for, or acceptable as a method of exchange throughout the world. The values of these currencies, with respect to each other, are constantly fluctuating and it is these changes in the values that a forex trader takes advantage of to profit. Just like the stock market you have to buy when the rate of that particular currency is low and sell it when the price increases. You can only do this and get the advantage if you have sufficient knowledge of the market before you get into it. Software programs are available that will allow you to do dummy trades till you get the hang of it. There also software available which can do the trading for you automatically. So take advantage of this and make your daily profit throughout the year. Profit marginsIt can be in the range of 40 to 300 percent per month, according to traders who have been in the market for a long time, even in the present bleak economic scenario. You have to judge correctly, buy low and sell high and with hard work and effort you can make similar type of profits. The forex trading market can be risky but with the right application of mind profits can be had.But as they say ‘nothing ventured nothing gained’.Which Of These 7 Deadly Mistakes of Online Trading Are You Making Right Now? Get Dr. Asoka Selvarajah’s critical Free Report, The 7 Deadly Mistakes Of Online Trading and surge your trading profits, starting today. Visit His Online Trading Site OnlineTradingRebel.Com Right Now!

Free Online Forex Trading Courses: Where To Find Them

admin — Tue, 15 Dec 2009 06:13:39 +0000

If you are just a beginner in the online forex trading market, just thinking of having to spend for formal trading programs is a big turn-off, especially if you are only still contemplating whether to join the industry or not.
If you are one of these individuals and are still undecisive if forex trading will give you a sound investment opportunity, then you should first try out the expert articles and courses that are available for free online.
Forex trading and other financial instruments is not something things you should play with, because they could spell huge losses if you do not know what you are doing. Thus, for an individual who is just getting started and want to learn the basic concepts, there is a wealth of information available online, free of charge.
Few brokerage firms offer free online trading for a specific time frame if you sign up to their service. But if you are really bent on not spending a single penny to initially learn, then you could just forget this advice.
But if you are interested in saving up on broker’s fee when you are finally ready to jump into the industry, you may just want to try these free services out especially if you are just starting out and is merely keen on trading a few stocks.
Indeed, technology has given us cost-saving opportunities investment in. However, some of these free online trading services do not offer you the whole package. If you do not trade regular and are new to the market, you could try trading for a month using all of these free services. But be very careful in selecting your provider.
Investigate and compare your all your options. And most importantly, just make sure that they have the best trading equipment to make your investments successful, after all, it is your money that you will be gambling on, so you may as well invest a little to be sure that you are well prepared.
As mentioned earlier, free forex trading courses available online will only do so much as give you a summary of the terms to remember and the basic concepts. They will not provide you tips on how to maximize your assets, unless they truly want to assist, and will not part with you tips and tricks that have already been tried and tested by professionals and experts.
Remember, there is never such a thing as a free lunch. While the Internet will provide you a wealth of knowledge about the forex trading industry, you will learn that there still remains more to know when you finally try your hand at actual doing it.
You could also save a little without having to signup for expensive forex training programs by purchasing a software package that focuses on the topic. Several of these software not only provide you enough information about the business, but it will also let you to operate on simulated trading environments, to provide you with a more detailed look into how online forex trading works.

Free Online Forex Trading Courses â Where to Get Them

admin — Sun, 13 Dec 2009 06:18:42 +0000

If you are just joining the online forex trading market, just thinking of having to spend for formal trading programs is a big turn-off, especially if you are only still contemplating whether to join the industry or not. If you are one of these individuals and are still not sure if forex trading will give you a sound investment opportunity, then you should first try out the expert articles and courses that are available for free online.Forex trading and other financial instruments is not something things you should play with, because they could spell huge losses if you do not know what you are doing. Thus, for an individual who is just getting started and want to learn the basic concepts, there is a wealth of information available online, free of charge.Few brokerage firms offer free online trading for a specific time frame if you sign up to their service. But if you are really bent on not spending a single penny to initially learn, then you could just forget this advice.But if you are interested in saving up on brokerâs fee when you are finally ready to jump into the industry, you may just want to try these free services out especially if you are just starting out and is merely keen on trading a few stocks.Indeed, technology has given us cost-saving opportunities investment in. However, some of these free online trading services do not offer you the whole package. If you do not trade regular and are new to the market, you could try trading for a month using all of these free services. But be very careful in selecting your provider.Investigate and compare your all your options. And most importantly, just make sure that they have the best trading equipment to make your investments successful, after all, it is your money that you will be gambling on, so you may as well invest a little to be sure that you are well prepared.As mentioned earlier, free forex trading courses available online will only do so much as give you a summary of the terms to remember and the basic concepts. They will not provide you tips on how to maximize your assets, unless they truly want to assist, and will not part with you tips and tricks that have already been tried and tested by professionals and experts.Remember, there is never such a thing as a free lunch. While the Internet will provide you a wealth of knowledge about the forex trading industry, you will learn that there still remains more to know when you finally try your hand at actual doing it.You could also save a little without having to signup for expensive forex training programs by purchasing a software package that focuses on the topic. Several of these software not only provide you enough information about the business, but it will also let you to operate on simulated trading environments, to provide you with a more detailed look into how online forex trading works.

Minimum Requirements To Start An Online Stock Trading

admin — Fri, 11 Dec 2009 18:25:00 +0000

The ease of online tradingOnline stock trading allows you to buy and sell stocks from the comfort of your home or office without having the hassle of having to call your broker every time you want to trade. For doing online stock trading you need to have a computer with a sufficiently good internet connection and an online broker, through whom you would make all such trades. It allows you to trade stocks at your discretion and also saves you a lot of commissions.What an online broker do for you?Look for the most reputed online brokers, and get in touch with them so that you can rout your online stock trading through them. Most of them would only be happy to provide you with any information that you require as they see you as a potential customer. You need to know the minimum investment necessary to make for starting in online trading. Make sure that there are no fees if there is no activity on their site for whatever reasons. Get their full list of commissions/fees which you would need to factor in every time you make a trade. Some online brokers also help you out with your online stock trading by offering you tips and suggestions, and their own outlook on the market and its prospects.It is easy to open an account Opening of the account can quite often be managed online from the comfort of your home. The online stock trading broker may however require you to provide some sort of paperwork and also open an account with the stock exchanges so trades on your behalf can be done electronically. He may in turn have his own fees for enrolment and other services which you would have to pay, so that you can access his trading network for shares. Your bank account should be linked up to the online stock trading broker so that you can easily transfer funds to the broker or away from him when you want to cash in on your profits.Most online brokers require that you deposit funds with them to start the trading activity. Initially, it’s possible that you may only be allowed to trade in the underlying stocks. Trading options on futures, forex, may require additional registration documents and procedures as this is considered to be very high-risk trading. Also, if you intend to trade on margin, there may be separate documentation and funding requirements for this. Check all this with your broker.Caution at all times is a mustOnline trading can be as risky as any other and you would have to approach it with care and caution. Now that you are on your own and the actions are instantaneous you would require to tread carefully. See that you constantly monitor your portfolio through the tools that most online stock trading brokers provide. Your portfolio will be updated constantly and this will allow you to take decisions on a real time basis. Take advantage also of their services to make in depth analysis of the stocks you are planning to buy or sell, so that you make your trades with the right information available.

Online Trading; Why I Hate Economists!

admin — Sun, 22 Nov 2009 18:13:54 +0000

In mid-July 2007, the Dow Jones index stock market made what appeared to be an important top.
Naturally, this gave rise among the usual TV pundits to pessimistic perceptions of the US economy, the long-term impact of the war in Iraq, and so on. However, what is fascinating and even mildly annoying is that just a week prior, when the Dow Jones broke to new all-time highs on July 12th, the analysis could not have been more euphoric. At least one economic commentator could see the Dow many thousands of points higher by year end.
So, where is this guy hiding now, especially in light of the US home loans crisis that came to the surface a very short time later?…
All of this demonstrates the fickle nature of those who try to forecast stock, currency, commodity and bond market movements using purely economic arguments alone. During my time on the floors of major investment banks, these characters were a constant irritation to me, not least because of the worship the entire industry unfailingly pays to them. It seems that in this world you get eternal credit for SOUNDING as if you know what you are talking about, regardless of whether or not you actually do!
However, the proof of the pudding is very simple: how accurate are they?…
The answer is, not very. In fact, I am reminded of an old adage from Elliott Wave theory which states that when everyone is madly bearish, the market is probably making final BOTTOM. When everyone and his brother are wildly bullish, so much so that even the restaurant waiter is checking his stock portfolio, you know you’re close to final TOP!
This unlikely advice is astonishingly accurate. In fact, I remember once buying a new home based partly on this perspective. So, this isn’t just a fancy theory. I’ve actually profited from it in real life.
The essential problem is that these economic pundits are providing reasons AFTER the fact for why the market has done what it has already done, and they always look good riding on a trend that they imagine is likely to carry into the future. However, what most uncritical people fail to realize is that there is no empirical PROOF for anything these jokers are saying. In other words, there is no evidence that the market moved BECAUSE of the specific factors that they discussed! Where’s the proof of that?
Answer: “There ain’t none!”
The stock market or forex market moved, and afterwards they said something about what they believe to be the causes. However, there is not necessarily any connection whatsoever between the market’s actual move and the causes they cite.
This is why the technical analysis approach is always superior and far more accurate than the best economist can ever be. It makes no pretentious claims about the ‘why’ of market movement, but simply tells you, from the point of view of probabilities, what the market is most LIKELY to do. Almost invariably, a good technical analyst can tell from the charts that the market is about to make a top or a bottom, and they will tell you so well in advance of the event. They will then observe to their chagrin and annoyance, as I have had to do on countless occasions, an ‘expert’ economist explain the ‘reasons why’ the market made said move.
And who sounds the most impressive and gets the most credit in this screwed up world of ours? The guy who actually told you the move in advance, and maybe even traded it, or the guy who comes on AFTER the move has happened and spouts a bunch of complex-sounding fancy words and theories?
I’ll give you a clue: it’s not the first guy!
Of course, said expert can never call the moves in advance, but they can always explain them with extreme eloquent after the event! They make their careers on the fact that the human mind has this ferocious need to know WHY, even if there IS no overall single why to be found.
This is the topic for another article, but in brief we can say here: the markets are far too complex and multi-variable, and at motion simultaneously in a whole range of different time-frames, to ever be reduced down to a few handy formulas such as inflation, budget deficit, interest rate expectations, home loan mortgage crisis, or whatever.
Certainly, the financial markets may use some of these factors as an excuse to do what they were going to do anyway (and it is the technical analyst, studying the charts, who is going to make the forecast in advance of the move, not in retrospect). However, to suggest that there is a simple cause/effect relationship between what the financial markets do and what economists imagine in their tiny minds are the reasons is frankly laughable, if it were not so dangerous.
Here is the danger, and it is one that the trader can all too easily fall into: the danger of believing in it!
In this modern age, we are deluged with information, and so it is critical that we pay attention only to information that is valuable. The latest ravings of your Johnny-come-lately TV economist are NOT accurate information as far as forecasting market movements is concerned, or even understanding past movements or current trends.
Again, the reason why is that there is no empirical proof that all this expert sounding blah-blah has any connection to reality whatsoever. The fact that it sounds good does not make it good, or even useful. What you need as a trader is a methodology that has proven itself over the test of time, not just another blast of hot air.
Hence, the trader should be very wary of what he/she lets into the mind and allows to influence trading decisions. You might find yourself over-riding your own impulses, or even your proven trading system, because of something some idiot said on TV! You then have plenty of time to regret it when your original impulse proves correct, but you are not in the move, thanks to some damn economist!
Listen to this and listen good: You’ve got to cut the BS out of your trading process!
So, if you are prone to listen to these clowns, take a good hard look at yourself and what you are doing. How often has this additional so-called information actually helped you profit in trading, and how often has it confused you or caused you to lose? Be very cold-blooded about asking yourself this. I think you will then see the brutal truth of what I am telling you!
In conclusion, don’t try to ‘understand’ the underlying causes of market moves because they are essentially beyond human comprehension. If you want an equally futile task, stand outside on a windy day and try to ‘explain’ the specific fundamental causes behind each gust of wind that strikes your face. Instead of trying to understand, or trying to use such arrogance as part of your trading method, instead work upon a method that forecasts stock, bond or forex market moves based upon sound principles that repeat with high probability.
You will almost certainly achieve the latter through a sound understanding of the technical factors associated with financial market price charts.

Online Trading: Breaking Through Trading Distractions!

admin — Wed, 28 Oct 2009 06:41:32 +0000

In my opinion, the second biggest challenge that you face in your online forex, stock commodity or futures trading is distraction.
Now, I say the second biggest challenge, because the first challenge is to know what the heck you are doing in the first place! Frankly, if you don’t know that- and most beginner and many intermediate level traders really don’t- then you’re going to need all the distractions you can get to keep you away from the markets so that you don’t keep losing your money!
However, assuming that you do know what you are doing in the markets and have a sound plan, then the next major challenge that you face is distraction. It goes back to what we have discussed about the need for mental focus. However, the issue of distraction is wider ranging. When we spoke about focus, we were talking about the need to focus within all the vast variety of choices available to you in the trading world.
With distractions, the issue is much wider and potentially worse still. Here, we are talking about literally everything that can distract you from your online trading. If you are a private trader working from your home, this can be an endless list; the postman, your cat, the need to get some bills paid,the shopping,the fact that it’s a sunny day and you’d rather be outside,surfing the internet, checking your email, the telephone, odd jobs around the house, and so on. If you are in this position, I am sure you can add to the list.
Even if you are an investment bank trader, there are still plenty of distractions. Some of the above- email and the internet for example still apply- and there are others. Chatter from your colleagues, meaningless bullshit meetings that you must attend and are not allowed to get out of, the endless stream of media “information” and more.
At least for the institutional trader, it is understood that trading is a business. It is literally his/her job. There is daily accountability involved and it cannot therefore be mistaken for a hobby and treated as one. However, for the person working at home, this is a much easier mistake to fall into, especially at the very start, when you may not have decided upon your trading routine.
Speaking personally, I have to say that distraction is something that I have a big problem battling against, since I do operate from home. The problem is that if your mind is not totally focused upon what you are doing in the financial markets, and getting the process right, the margin for error quietly widens and things can start to go wrong.
The key point to come back to is that trading has to be a business, if it is intended to be your primary source of income for yourself and your family. If that is the case, then it is imperative that you treat it with the seriousness that it deserves. That means that even though you may be working for yourself at home, you need to impose some business disciplines that you would find in a standard office environment.
If at all possible, you should establish for yourself a separate room for your online trading. Wherever possible, you need to give very serious thought to closing the door to family and pets in order to concentrate on what you are doing. (Now, I know that this is hard because my two cats basically have total access to me, and I can’t see that changing. But as the saying goes: do what I say, not what I do!)
Let’s not forget that neither your friends, your pets, nor your family would have access to you if you were working at an office job somewhere, would they? Hence, closing the door closes out an enormous source of distraction.
Use effective time management principles to deal with other distractions. In other words, schedule other things that need to be done appropriately so that they do not interfere with your trading. Maybe you need to fix upon a time when you check and deal with your email once in the day, or at most twice, but you certainly do not keep looking at it every five minutes or so.
Do you know what constantly checking your email all the time is like?
It’s like going to your front door every few minutes to see if there is anyone there! Did you ever think of it like that? Well, if you would never do that, why check your email every 5 minutes?!
What’s the big deal? Well, it takes time away from you focusing upon your business, which is trading, not email checking or chatting idly. When you break your focus, then it takes a certain period of time to restore it. If this keeps happening the whole time, your mind is working hard just to stand still, i.e. to keep getting back to where it left off last time.
That is why it is so vital to get this under control. If not, it is not the trading that is exhausting you, so much as the sheer amount of clutter that you have allowed to invade your own brain. They say that failing to plan is planning to fail. Hence, starting today, sit down and plan out what you can do to minimize the distractions during your trading day. Consider the email challenge. Consider too scheduling certain activities together, e.g. make all of your outgoing calls at the same time, when you go out to the shops, make sure that you get that post office visit done too. Try to handle pieces of paper that come onto your desk once, and don’t keep coming back to them over and over again.
This is all about organizing you, and you are unique. Hence, it is impossible for me or anyone else to give you a list. You have to come up with it yourself, and then go to work to reduce the distraction to your trading. I’ve given you a broad hint in what we have been discussing, but it is ultimately down to you.
Remember, your online trading is a business, not a hobby. It will ultimately, if it is not already, be your primary source of income and that upon which your family depends. Hence, you owe it both to yourself and to them to get serious and to get professional, no matter whether you trade from home or on the proprietary trading desk of the biggest firm on Wall Street.

Online Trading Advantages and Disadvantages

admin — Mon, 12 Oct 2009 20:03:02 +0000

Online trading, or direct access trading (DAT), of financial instruments has became very popular in the last five years or so. Now almost all financial instruments are available to trade online including stocks, bonds, futures, options, ETFs, forex currencies and mutual funds. Online trading differs in many things from traditional trading practices and different strategies are needed for profiting from the market.In traditional trading, trades are executed through a broker via phone or via any other communicating method. The broker assist the trader in the whole trading process; and collect and use information for making better trading decisions. In return of this service they charge commissions on traders, which is often very high. The whole process is usually very slow, taking hours to execute a single trade. Long-term investors who do lesser number of trades are the main beneficiaries. In online trading, trades are executed through an online trading platform (trading software) provided by the online broker. The broker, through their platform offers the trader access to market data, news, charts and alerts. Day traders who want real-time market data are provided level 1.5, level 2 or level 3 market access. All trading decisions are made by the trader himself with regard to the market information he has. Often traders can trade more than one product, one market and/or one ECN with his single account and software. All trades are executed in (near) real-time. In return of their services online brokers charge trading commissions (which is often very low – discount commission schedules) and software usage fees.Advantages of online trading include, fully automated trading process which is broker independent, informed decision making and access to advanced trading tools, traders have direct control over their trading portfolio, ability to trade multiple markets and/or products, real-time market data, faster trade execution which is crucial in day trading and swing trading, discount commission rates, choice of routing orders to different market makers or specialists, low capital requirements, high leverage offered by brokers for trading on margin, easy to open account and easy to manage account, and no geographical limits. Online trading favors active traders, who want to make quick and frequent trades, who demand lesser commission rates and who trade in bulk on leverage.But online trading is not here for all traders. The disadvantages of online trading include, need to fulfill specific activity and account minimums as demanded by the broker, greater risk if trades are done extensively on margin, monthly software usage fees, chances of trading loss because of mechanical/platform failures and need of active speedy internet connection. Online traders are fully responsible for their trading decisions and there will be often no one to help them in this process. The fees involved in trading vary considerably with broker, market, ECN and type of trading account and software. Some online brokers may also charge inactivity fees on traders.