How to Trade Like the Pros: A New, Easy-to-Follow Guide From A Successful Trader and Coach
Feb0
How to Trade Like the Pros: A New, Easy-to-Follow Guide From A Successful Trader and Coach – Phil Storer Spells Out the Importance of Being an Investor, Rather than a Speculator; and of Having a Well-Constructed Plan
Successful trading in the financial markets is not just for the professionals. Individual investors can succeed in the stock/commodities markets just like professional traders do, if they will consistently apply some very basic principles to their market decision-making, says long-time professional trader and trading coach Phil Storer.
In his soon to be released book, Chalk Talks for Traders –Easy Xs and Os from a Proven Market Pro, Storer spells out these principles in clear and simple language, and provides the most easy-to-understand explanations available of the essential techniques of technical analysis used by successful traders. Chalk Talks for Traders –Easy Xs and Os from a Proven Market Pro, is also full of chapter by chapter four color graphs and charts.
Adopt an Investor’s Attitude Rather than a Speculator’s
One of the most important principles for making successful trades, says Storer, is adopting the attitude of an investor, rather than that of a speculator. “While both investors and speculators accept risk as a necessary factor for success, investors tend to create a more complete trading plan than do speculators. The result is a smoother ride in the markets for an investor than the roller coaster experience of a speculator.”
While investors and speculators may both get their original ideas from trusted but unproven sources (such as friends, acquaintances, a salesperson or the media) “speculators tend to respond with unbridled enthusiasm, but investors will not sign on until a plan is worked out,” Storer says.
You Need a Well-Constructed Trading Plan
“To be a successful trader, you will need to have a well constructed trading plan,” says Storer. “Without one, you will unnecessarily jeopardize your welfare and create emotional trauma that could completely remove you from the contest.”
A well-constructed plan will address such critical aspects of a trading transaction as: at what price to enter the market (entry level); when to buy (timing); the level of tolerable risk; setting a profit objective (money management); and setting a target price.
“A trading plan will not guarantee a win,” Storer observes. “But because of it, the investor will walk away with the ability to take advantage of the next reasonable opportunity. Unfortunately, without a plan, the same cannot be said of the speculator.”
It’s Easy to Understand
Chalk Talks for Traders –Easy Xs and Os from a Proven Market Pro is filled with easy-to-understand explanations of all of the key principles, concepts and technical trading techniques that can help an individual investor to master the trading disciplines used by successful professionals. Key chapter subjects include: Planning the Trade; Building a Checklist; Reading Momentum; Maximizing Reversals; Swing Trading; Shadow Trading; Band Running; and Calculating Risk vs. Reward. A key feature, the large-size, easy-to-read-and-understand technical analysis charts are perhaps the most easily accessible in the industry today.
Chalk Talks for Traders –Easy Xs and Os from a Proven Market Pro is based on the accumulated experience of Storer, who has been a professional trader and trading coach for nearly 40 years. Most of Storer’s efforts have concentrated on commodity futures although he is also very experienced in stocks. His basic approach to trading is to use technical indicators with a watchful eye trained on the fundamentals that drive the markets. Storer is an expert at predicting the direction as well as the duration in time and distance that markets travel. His trading methods are consistently simple and contain a high degree of reliability because they are designed to fit a working environment. Storer is the director of trading for the commodity division of Dillon Gage Inc., a full service brokerage firm based in Dallas, Texas.
MEDIA ADVISORY:
For a review copy of Chalk Talks for Traders – Easy Xs and Os from a Proven Market Pro, or to arrange an interview with Storer, please contact: Jo Trizila, TrizCom, at (972) 247-1369 or (214) 232-0078. To pre-order Chalk Talks for Traders – Easy Xs and Os from a Proven Market Pro go to: http://www.chalktalksfortraders.com/index.html .
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Contact:
Jo Trizila, TrizCom Inc., jo@TrizCom.com Office: 972-247-1369
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Meaning in Trading
Dec0
Is there any meaning in trading? Does it serve a purpose? Does it produce anything of value to anyone?
That’s a good question, and one that I have frequently thought about over the years.
When I first began trading, a fair number of futures contracts actually ended up in a delivery — certainly more than we see today. Today only 3% of contracts result in delivery.
The economic and social justification for the futures markets is to provide a venue in which producers and users can hedge against excessive fluctuations in price. Price stability within the economy is seen as a desirable thing, and so it is. In effect, the hedger is seeking price insurance, and the speculator provides the insurance policy. With hedging as its justification, speculation in futures serves as a way of providing liquidity, efficiency, and price discovery. The speculator serves as the person who is willing to take the risk the hedger wants to avoid. Without that justification, trading futures is nothing more than outright speculation.
However, it is difficult to see how trading a 1-, 3-, or 5-minute chart meets the criteria for providing liquidity and price discovery for the hedger. Does a producer or consumer need to hedge for only 1 minute? It is hard to argue on the basis of short-term intraday trading, that anyone is actually providing a social or economic benefit of any kind.
Whereas with longer-term trading it is easy to see the social and economic benefits provided by the speculator, it is virtually impossible to see that such benefits are derived from short-term trading. That renders day trading as nothing more than speculating. To that extent, the futures markets may have become giant gambling casinos.
That raises a question: What is the difference between the gambler and the speculator? True speculation in futures is based on taking advantage of the realities of the market. Gambling is an attempt at trying one’s luck.
Since trading is a business, the business-like speculator in futures is willing to accept the risk of price fluctuation in return for the greater leverage that comes with that risk in the hopes of earning substantial profits. The business-like speculator in futures makes his trading decisions based on knowledge gathered from information about the behavior of the underlying: seasonality, historical and current trends, chart analysis, fundamentals, the market dynamics, and knowledge of those who trade it. But what about the gambler? How does he make his decisions?
The gambler makes his trading decisions on gut feelings, hopes, dreams of getting rich quick, tips from the broker, “inside information” from friends, opinions uttered in the financial news media, and from the improper understanding and use of indicators, oscillators, moving averages, and mechanical trading systems. In general, he is looking for a way to shortcut having to truly learn what is going on. He or she is in a hurry to make money. Unfortunately, most people who attempt to trade fall into this category. Many wannabe traders are gambling, and they don’t even realize it. Anyone who attempts to trade without essential knowledge of what the markets are all about and how they truly function, is gambling.
There is one more aspect to this subject. It has to do with morality. I am often asked if trading goes against the teachings of the Bible. Is it a sin to trade? Is it a sin to speculate in the markets? I have been asked this question numerous times even by church pastors. My friend Kent Calhoun said it this way: “You did not pay to be born. Life is a gift that was freely given to you. The ways in which you repay God for your life is by using your natural talents to the best of your ability and constantly creating positive change in your life and the lives of others. This quest fulfills the meaning of life, to make the world a better place because you were here. What are your talents and abilities? What is the most important goal in your life? How do you exercise your talent on a regular basis to achieve that goal? How are you creating positive changes in your life and the lives of others? What is the legacy y
In my own life, I use my trading to support my prison ministry, mission work, and my local church. I believe that produces both economic and social benefits to the world in which I live.
Joe Ross, trader, author, trading educator is one of the most eclectic traders in the business. His 50+ years include position trading of shares, and futures. He daytrades stock indices, currencies, and forex. He trades futures spreads and options on futures, and has written books about it all – 12 to be exact. Joe is the discoverer of The Law of Charts™, and is famous for the Ross hook™ and the Traders Trick Entry™. Trading Educators Article Source:http://www.articlesbase.com/day-trading-articles/meaning-in-trading-1562042.html
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Futures Trading Basics
Sep0
Have you heard of futures trading? From day trading to positions trading, many people trade in the futures markets. There are also futures options where traders trade an option contract which is directly related to the underlying futures market.
What exactly are they trading? Future commodity trading is not like the stock market where people buy shares of a stock. You do not actual own anything. You are just speculating on what the price will be of a commodity in the future.
When you want to put on a futures trade, you must first put up margin money. This is in case the market moves against you; you will have enough capital to pay the loss to the brokerage firm.
Although speculators make up the bulk of futures traders, the markets were intended to protect farmers from losing everything. A farmer can hedge in the futures and protect any loss he will have in the cash market. A farmer can sell the futures in wheat. He can do this if he thinks the wheat market will fall before harvest. A bread manufacturer might buy the futures if he thinks the price will rise before harvest. Whatever happens to the wheat market, both will guarantee their price.
A speculator is interested only in trading to make a profit. If he thinks the market will rise, he will purchase the futures. If he thinks the market will fall, he will sell the futures. You do not have to own the contract first to sell it. You can first sell the futures contract.
There is risk in any type of trading. That is why some traders only buy futures options, so they know their risk is limited to what they paid for the option. Others who trade futures contracts use technical analysis like fibonacci trading. They will only enter trades that have criteria from the chart analysis.
Mail this postPopularity: 5% [?]
Futures Trading Basics
Sep0
Have you heard of futures trading? From day trading to positions trading, many people trade in the futures markets. There are also futures options where traders trade an option contract which is directly related to the underlying futures market.
What exactly are they trading? Future commodity trading is not like the stock market where people buy shares of a stock. You do not actual own anything. You are just speculating on what the price will be of a commodity in the future.
When you want to put on a futures trade, you must first put up margin money. This is in case the market moves against you; you will have enough capital to pay the loss to the brokerage firm.
Although speculators make up the bulk of futures traders, the markets were intended to protect farmers from losing everything. A farmer can hedge in the futures and protect any loss he will have in the cash market. A farmer can sell the futures in wheat. He can do this if he thinks the wheat market will fall before harvest. A bread manufacturer might buy the futures if he thinks the price will rise before harvest. Whatever happens to the wheat market, both will guarantee their price.
A speculator is interested only in trading to make a profit. If he thinks the market will rise, he will purchase the futures. If he thinks the market will fall, he will sell the futures. You do not have to own the contract first to sell it. You can first sell the futures contract.
There is risk in any type of trading. That is why some traders only buy futures options, so they know their risk is limited to what they paid for the option. Others who trade futures contracts use technical analysis like fibonacci trading. They will only enter trades that have criteria from the chart analysis.
Mail this postPopularity: 4% [?]
The Roulette Of Currency Exchange with Forex MegaDroid – Improving Your Percentages
Aug0
There are two factors that actually determine whether a speculator will risk capital or not: the potential for profit and the ability to liquidate the position should things start to go down. Property is a very stable investment for one easy reason: they aren’t making any more of it. In time, all property value rises making it a fairly safe investment vehicle but it takes a long time to close, especially if the market suddenly goes south. Forex MegaDroid faces these obstacles.
The currencies market, on the other hand, is an entirely different beast. The foreign exchange, also called the currency market, is the biggest and most fluid in the world. Nearly two trillion greenbacks are exchanged 24 hours a day between Sun. afternoon and friday. It is awfully liquid making it engaging for investors because there always appears to be somebody ready to sell or buy a position. Speculators are also drawn to the forex as it is extremely unpredictable which provides great potential for money. There are 5 basic options available to a retail foreign exchange trader, including :
* Notice transactions
* Forwards and futures
* Options
* Spread betting
Contracts for change
The overwhelming majority of currency exchange with Forex MegaDroid traders stick with spot transactions. These simple transactions simply involve the exchange of one currency for another. To pick currency pairs and identify entry and exit points, most traders decide to either trade based primarily on news releases and basic analysisor to study performance charts and track movements in prices using technical analysis.
Fundamental criteria typically is employed in scalping or day trading. Forex scalpers try and expect changes in price in the short-term and generally do not hold a position for over a day or 2. In some cases, positions could be acquired and sold in a couple of hours. However, this is considered an especially threatening trading strategy as the heavily leveraged positions tend to reach stop / loss points quickly and losses can mount fast.
Technical research is essentially aimed at identifying and capitalizing on trends. The moving average is a favored technical indicator used to guide investment choices. To spot trends, technical speculators study the historical data of currency rate costs. The moving average helps smooth out the inconsistent nature of lines causes by the daily highs and lows and is refreshed daily with the most recent day being added and the oldest entry dropped. The larger the sample ( in other words, a 10-day moving average is smaller compared to a 50-day moving average pricing chart ), the smoother the lines will be on the charts.
Simple and exponential moving averages can also be used to further identify trends. Resistance and support levels are occasionally then identified as entry and exit points in some forex technical trading systems. The simple truth is that you’ve got to find the method that best fits your trading style. Then, to improve your percentages :
* Avoid over-trading. Forex MegaDroid traders can make big profits but can lose equally big due to highly leveraged accounts and a particularly changeable market. Over trading increases the percentages that you will lose moneyperiod.
* Trust chartsonce you have your method and set your exit points, let it ride. Observe the charts in the end and keep to your strategy.
* Patience is a virtue
* Back test to ceaselessly test your investment methodology
No investment strategy can predict price fluctuations with a hundred percent accuracy. However, the best strategies for foreign exchange have a tendency to involve technical analysis, using stop / loss points with each order, and trusting the charts and strategy while avoiding the enticement to over trade. You may encounter a loss once in awhile but the steps mentioned above will put the odds of success and profit in your favor.
Check also: Forex MegaDroid Review
Mail this postPopularity: 10% [?]
