What is Your Trader Type?: Scapler, Day Trader, Swing or Position
Mar0
Did you know that there are 4 mains types of trader and depending on what sort you are will determine many parts of your trading strategy and trading plan. The four types are: scalping, day trading, swing trading and position trading. When you determine the type of trader that you are it will also determine the time frame in which you will be making your trade. This will be a very important decision that you need to make when deciding how you want to learn to day trade.
1. Scalping Trader, if you scalp the markets this means that you are only looking for a few ticks profit per trade and you may only be in the trade for a few seconds or a minute at most. trading. Some people will also call this day trading but it’s really micro day trading, buying the bid and selling the offer, it’s high speed trading and you might end up doing 15-50 trades a day. This is a very stressful way of trading for many people.
2. Day Trader, the true day trader opens and closes their trade within the same trading session, usually this mean the same day, but unlike a scalper the trade may be held for a few minutes up to several hours. Usually day traders make about 2-5 trades a day and most of them will be in the 5-30 minutes range. This is a less stressful way of trading than scalping but it still requires a lot of attention and quick decision making.
3. Swing Traders, swing trading usually means that a position is held for between 1 to 5-10 days, although some swing traders may keep a trade on for longer most are within this time period. For many this is the idea way to trade because it allows you to review your trade overnight, at the very least you have several hours to make your trading decisions.
4. Position Traders, this just means that you are going to hold onto your trade for longer than a few days, maybe even as long as 1 to 2 months.
If you are still working out how to day trade then it may be better to go with the longer time frames as it gives you more time to think.
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Trading Gold Futures Can Make You Rich
Jan0
Recently gold prices breached the historical barrier of ,200 per troy ounce. Then a retracement took place and gold prices have come somewhat down. Gold market has been in a secular uptrend for the last decade. Gold is still the unofficial international currency. But there are some shocking secrets about the gold market that you should know. Central Banks all over the world are concerned primarily with fighting inflation. Now speculators see rising gold prices as a sign of inflation. This makes many Central Banks in the world nervous. So when they see gold price rallies going out of hand, most of them step in and start selling gold from their huge stockpiles to make the prices fall.Get the Ultimate Swing Trading Software and learn this 10 minutes a day swing trading strategy that works for forex, stocks, futures, options and ETFs. Get this FREE Penny Stock Trading Report that tells the story of James Connelly and how he turned $1K into $1M in just 30 days with only 38 trades investing in penny stocks. Learn how you too can repeat this feat! Know this shocking Dow Futures secret that can make you rich.
This is precisely what happened when gold prices breached the historical barrier of ,200 per ounce. However, this fact that central banks tend to be sellers of gold during rallies in the gold market doesn’t mean that gold prices cannot rally for a significant period of time. What this means is that the days of straight up advances in gold prices though likely aren’t as likely as they once were. Bottom line gold is a tricky market.
Gold prices are heavily influenced by political crisis and political upheavals. In times of political crisis, gold prices tend to rally higher. South Africa is the world’s largest gold exporter. It accounts for more than 25% of the gold exports in the world market. South Africa is followed by Russia, United States, Canada, Australia and Brazil. Remember the California gold rush of 19th century. Many people went, many kept on digging and only a few found gold. Now the days of gold rushes are over. Almost all the gold mines have been discovered.
Inflation is considered to be bad for the economy. It makes prices go up. When prices go up, money loses it’s value. So many wealthy investors start converting their cash assets into gold and other assets that have a negative correlation with inflation. US Dollar and gold prices tend to move in opposite direction. Gold is popularly known as Anti Dollar. However, this negative corraltion relationship maynot hold in the short term but it definately does hold in long run.
There are many exchanges in the world where gold gets traded. The most popular is the New York Mercantile Exchange (NYMEX). The second most popular is the Chicago Board Of Trade (CBOT). GOld futures on CBOT have relatively low margin requirements. This makes trading gold futures highly attractive for retail traders. The international benchmark for gold is the London Price Fix. London Price Fix is quoted in troy ouncestwice daily known as A.M Fix and the P.M Fix and is set in US Dollar.
Mini contracts also get traded on CBOT. These are smaller versions of the regular contract with much lower margin requirements. Mini contract hold 33.2 troy ounces of gold as compared to the 100 troy ounces in the regular contract. However, the general characteristics and fundamentals of the market are the same. Gold trading combined with forex trading can be a lucrative combination!
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Martingale And Other Money Management Systems For Traders
Jan0
Over the years, traders have developed many different ways to manage their money. Most of these money management systems are based on different statistical probability theories. The idea behind a good money management system is that you should never place all your money at risk on a single trade but rather put an amount that is appropriate with the level of volatility in the market. Otherwise, you risk losing everything on a single trade. Not a good idea, huh! Get the Ultimate Swing Trading Software FREE and learn this 10 minutes a day swing trading strategy that works for stocks,forex, futures, options and ETFs. Discover a revolutionary new forex robot that uses a new technology RCTPA and made 2,270.30% in 2009 averaging about 101% ROI each month. If you can read an email, you print cash with these 1500 pips a day Strignano’s Forex Signals from heaven. One new member made ,000 in just 24 hours with these signals.
Now over the years many different money management systems have been developed by traders. These different money management systems are used to calculate the position size for each trade. Most of the trading softwares now include the money management calculators with them. You only need to understand the concept behind each money management system if you want to use them in your trading system. A good trading system or for that matter a good investing system has a solid money management system as its backbone. There are many different money management systems. Let’s discuss the pros and cons of the most common money management systems.
Another thing that you need to keep in mind is that stock trading may require a different money management style as compared to futures trading or forex trading. So you need to understand the concept behind these different money management styles as a trader.
The most basic is the Fixed Fractional Money Management System. This system assumes that you want to limit your risk to a set proportion of your trading account mostly between 2% to 10%. Within that range, you would trade a larger percentage of your money for a less riskier trade and a smaller percentage of your money for a less risky trade. This money management style or what you call system is widely used by traders. Most trade by risking not more than 2% of the trading account. The Fixed Ratio Money Management System is commonly used for trading options and futures. It has a formula that you can master if you are an options trader or a futures trader.
Another money management system is the Martingale System. It has its root in gambling and casinos. But many traders love to apply it in trading as well. Under the Martingale System, you start with a set amount of money, let’s say three thousand dollars. If your trade succeeds, you trade another three thousand dollars. But if your trade loses, you double your amount to six thousand dollars. You keep on doubling the amount, until you have a winner. You might have heard about Doubling Down in a Casino. Well, this is what it is. Under the Martingale System, you will always come out ahead as long as you have an infinite amount of money. The problem is you can run out with your money before you have a winning trade.
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Effective Swing Trading With Mark Soberman
Jan0
Forex traders make tons of money each day, yet do not spend all their time on a computer and many people must wonder how this is possible? A lot of the time wen you see this you will find that they are swing trading. The power and benefits of swing trading is now understood by many, the main reason being that you are free from your computer for hours in the day unlike day trading.
To keep making a healthy profit through swing trading whilst maintaining some spare time is something traders will always try to work out? The answer is a Forex swing trading strategy called the Ultimate Swing Trader Forex Edition. This time, the ten minute trading strategy is focused on Forex, unlike the previous editions that have been released onto the market before.
They have also made a few changes to the strategy since the release of the Ultimate Swing Trader 2.0. After taking part in the live training that is offered, new traders will find that they are able to get started as soon as possible. Not all traders are full time, for some have to rely on the income that they receive from work so this really is an ideal solution.
You will be able to see some impressive results if you take a look at the 10 minute strategy video. Everyone who see these results and the short amount of time taken to achieve them will no doubt be pleasantly surprised. Training tools and videos are provided as well as reference manuals which all go towards helping you work at your own steady pace.
No matter your level of experience you may still come up against problems, but you should feel safe in the knowledge that there is someone waiting to help you out should you need it.
There are a few points to take heed of before you buy a new trading system. Considering what you will achieve as well as how long it can take you to get results is the way forward. It is entirely possible that for those who are not yet satisfied with their Forex trading career that Ultimate Swing Trader may very well help you out.It is pretty much risk free trialling UST, for if you do not like it, the team are legally required to offer you a full refund within the specified time frame.
For more information please read my Ultimate Swing Trader review.
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Stock Market Trading Software: The SMF Stock Market Trading System IS Excellent for Position Trading, Swing Trading, and Stock Option Trading Strategy
Jan0
Having a stock market trading software is critical to being a successful stock trader. I’m not talking about your online retail trading platform or even direct access trading platform. I’m talking about a mathematical stock trading calculator that can help you pin point the key support and resistance levels on equities and options. Having a stock market trading system is really the key to not getting whipped around in the stock market volatility. (Just imagine you decided to short Baidu Ticker: BIDU after the Iranian cyber attack, the stock gapped up $60/share the next day, many puts went worthless)
The SMF Stock Market Trading System is really like nothing out there. Not only do they have a stock market trading software designed to help pin point entries and exits, but it automatically calculates the stop loss orders and at what price you will need to protect your position. We know there is a strong desire in the retail trading and investing community to learn stock options trading strategies in bullish, bearish and sideways markets. That is why we empower SMF Pro Trading School Students to utilize our proprietary options trading software which is designed to keep you one step ahead of the market maker on price moves.
As we see a return of stock market volatility this last options expiration 1-15-2010 we the stats below, the need for a stock market trading software and options trading system will be key to navigate these difficult markets.
MARKET SUMMARY
Dow 10,609.65 -100.90 -0.94%
Nasdaq 2,287.99 -28.75 -1.24%
S&P 500 1,136.03 -12.43 -1.08%
Oil 78.00 -1.39 -1.75%
Gold 1,130.10 -12.50 -1.09%
VOLATILITY SUMMARY
VOLATILITY S&P 500 17.91 0.28 (1.59%)
CBOE NASDAQ 100 Voltility 0.53 (2.91%)
CBOE OEX Implied Volatility 0.53 (3.20%)
At SMF we believe it is critical to have a long term trading plan in place and we teach traders how to adapt to all markets and spot trading opportunities in any market. Trading is a battle and the people that trade in these markets take people’s money in the option pits, this week being a perfect example. Be sure to watch all our live videos as we brought you trading coverage throughout the week.
Visit the SMF Pro Trading School to learn more about stock trading.Learn how to trade options
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