Archive for the ‘stocks’ Category
I Want an E-mini Trading System That Is Fool Proof
August 3rd, 2010
I get questioned ofttimes about how to day trade the e-mini contracts. It seems that traders , commonly individuals just starting their trading career , are seeking for a "Holy Grail" when trading emini contracts.
Such a system doesn’t exist.
Live Emini Futures Trade
There are many theories out there on the nature of market and price patterns , the most well known being Efficient Market Theory, Fundamental Theory and Technical Theory. There are many of variants on each theory , and they are all flawed in some manner. The random nature of the equity market price action has prevented the absolute err free system from ever being realized . I guess the most probable reason for this dicotomy is the varied cycles the stock market assumes throughout the trading year . The trending market is the simplest to trade, but the market doesn’t trend on a unvarying basis, though it frequently takes on a positive or negative bias throughout the trading day.
New traders often buy several high priced trading systems before they realize that a superior system is gained through experience and knowledge. A good scheme is to learn one contract and the nominal pricing patterns for that contract. I generally advise beginninging with the YM (Dow emini) for new traders as it seems to have the least "noise" to tackle with in day trading emini contracts. I have found that most traders will start with the ES (S and P emini) and have little success, then switch to trading the YM and see the light . There are a host of theories for this paradigm , and most point to the possibility of excessive black box, or machine-driven, trading on the ES contract. Like many factors involved with trading, the evidence for the black box theory is anecdotal , at best. My general belief is to begin with the YM because it is consistently easier to trade.
As of late, I have been bracket trading the YM with 25 point stops and limits with good results . I do, on occasion , use trailing stops. I think it is a matter of personal choice . For me, I like to not use the trailing stops, as I often lose profit on a momentary pullbacks in the contract price.
I also advise trading with a methodology with the CCI as a primary indicator. There are many CCI systems available and they seem to work pretty well and the best one is available at no cost . One very popular system has been around for a long time, and can be located with a simple search using the keyword "CCI."
Day trading emini contracts can be nerve wracking and less than profitable from the beginning , and a calendar month or two spent "paper trading" on a demo account will save most people a lot of money. If you get competant enough you can put together 5 days of profitable trading on a consistent basis, you are ready to trade with a real account. Start with 1 contract because live trading involves a different emotional state that paper trading. I know that is a difficult concept and hard to digest at face value, but it’s true nonetheless.
Learn a superior system and get some prolonged experience in trading and you will be profitable in trading emini contracts.
More aboute E Mini Day Trading:
Rockwell Trading Futures Day Trading e-mini’s Home Study Course
Learn to day trade the futures markets -Eminis, Commodities and Currencies.
Emini trading – a form of day trading – is a common method these days for making good money. Although day trading can happen at any market place, the most common places for day trading are foreign exchange and stock markets.
Should You Day Trade Stocks or Futures Contracts?
In my opinion, though, trading futures contracts, especially the e-mini contracts, have a multitude of individual advantages so as to make them a prohibitive favorite for day trading.
Suppose now that you one thousand dollars in your futures account with a broker that set the emini day trading margin at only $500. Suppose also that what you wanted to trade is ES, the emini contract of S&P 500.
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The Buttonwood Agreement – Forerunner to the NYSE
July 13th, 2010
When we think of the current New York Stock Exchange, images come to mind of the Big Board, ticker tape and incredible amounts of stress. But it didn’t always use to be that way. There was a time when a group of men met under a shady tree in the spring to found what would become one of the most powerful and well known exchanges in the world.
The story of the Buttonwood Agreement actually goes back even further than 1792. Two years earlier, then Secretary of the Treasury Alexander Hamilton (pre-duel) issued a then staggering amount of $80 million in war bonds to help pay for the rising costs of the Revolutionary War. It would be these bonds that would play a key role in the founding of the Buttonwood Agreement.
A major reason for the founding of the Buttonwood Agreement was that securities trading in New York City at that time were a bit disorganized. Auctioneers would deal in commodity trading, land speculation and foreign currency exchange, but the Buttonwood Agreement sought to organize and streamline the trading so that it could be done in one place.
Two years later, on May 17, 1792, a group of 24 prominent New York City business men met outside of 68 Wall Street in lower Manhattan and put together the Buttonwood Agreement. With a simple two-sentence contract, they formed the New York Stock & Exchange Board and the first securities to be traded were those very war bonds that Alexander Hamilton had issued two years prior. The first company to be listed on the new exchange was the bank of New York. The original home for the new stock & exchange board would be the Tontine Coffee House, which was owned by Hugh Smith, one of the 24 founding members. Other founding members included well known New York business men such as Charles McEvers Jr, John Bush, Alexander Zuntz and Ephraim Hart.
In 1817, the adopted name of the New York Stock & Exchange Board was formally adopted, as well as a comprehensive constitution and bylaws, and later in 1863, this name was shortened to the name we know today, the New York Stock Exchange.
It’s amazing to consider that the billions of dollars that trade hands every day on the floor of the New York Stock Exchange started as a group of business men looking to organize colonial American commodity trading under a tree. But it’s true, and their legacy is felt every single day and it will continue to be felt for as long as the NYSE stands.
Stock Exchange
May 29th, 2010
The stock market is on the news every day. Even on days when there isn’t trading, like a weekend or a holiday, there are people on TV and in the newspaper that are talking about what they think individual stock are going to do and why you should or shouldn’t invest your money right now. We know that a stock market trades stocks. But why? And what good does it provide to the economy?
The stock market is seen by many to be the engine that drives the economy. Businesses and corporations and even governments use the stock market to create capital or wealth. They create this wealth by offering stock, or shares, which are like little pieces of ownership of the company or corporation, and then they trade them. The value of the stock depends on how well the company is doing. The company sells the stock to investors who buy the stock based on if they think the company is going to be making a lot of money or not. This brings in a huge amount of cash into the corporation. IPO’s or initial price offerings are when a company offers stock to the public for the first time ever. A big corporation can make hundreds of millions of dollars or even billions of dollars during their IPO. If the company continues to do well and make money, the stock price goes up, everyone that has shares makes money and more stock is sold to people who want to own a piece of that company.
The same method works if the company is doing badly. The stock loses value as the company does badly, and people then begin to sell the stock and the value of it goes down.
Every company, even the most successful ones, have their stocks go up and down on a monthly basis based on things like earning reports. There is no 100% safe stock, but there are stock that is referred to as “blue chip” stocks, or ones that are the most reliable.
But it isn’t just stock that is traded on a stock exchange like the NYSE. Bonds, securities and commodities are also traded, creating wealth in many different sectors as well as helping the flow of goods and services over the globe. The role of the NYSE and other stock exchanges around the world cannot be overstated in their importance to the world economy.
More about Stock Exchange:
Thai Stock Exchange Up in Flames
The Thai stock exchange was on fire and parts of Bangkok were hit by power blackouts on Wednesday as violence continued, even though anti government protest leaders surrendered and troops said they were in control.
Rules For Beneficial Stock Exchange Business
We are going inform you with the list of definite misconceptions about stock exchange. First of all the greatest mistake that potential investors are dealing with it, is comparing stock market trade with the gambling.
Market Risk At Stock Exchange Trade
Therefore, some investors are looking for the ways to save money when you start invest your funds in the stock exchange. The same result waits for the mutual funds. They would fall as soon as the market falls itself.
What Is The Main Option of Stock Exchange?
We just observe on the abilities that stock exchange gives to its investors. There are people that start investing in 60 and earn more than you earn during all your life. It depends on the amount and niche of investing.
Stock Market Trading For Beginners
Stock Market Trading For Beginners and Become an Expert in Stock Exchange Stock market is something which is considered to be very tough by most people.
Stock Market History – The Wall Street Crash
May 23rd, 2010
The Wall Street Crash of 1929
Maybe no event in American financial history is better known and more infamous than Black Tuesday, the day the stock market crashed and ushered in a depression that would grip the United States through the first half of the next decade. But what caused such a horrible event and what can be learned from it?
The stock market crash that most people associate with Black Tuesday, was actually a may days process. The previous Thursday, the market began its downward slide, with trading setting an all time record with 13 million shares trading hands that day. The Dow had reached an all-time high just a month earlier in September of 1929 with a close of 381.17. A group of bankers met during that Thursday to try to figure out how to stop the slide and they decided to take the same tact that worked to stop the last market panic in 1907. They began to buy massive amounts of blue chip stock to try to reassure investors that the market was holding steady and that they shouldn’t sell everything they had and make matters worse.
The bankers, led by Tom Lamont of Morgan Bank, Chase National Bank’s Albert Wiggin and Charles Mitchell of National City Bank thought that this method had worked, but it only led to a quieter Friday. The downfall would continue early next week.
On Monday, spurred on by negative newspaper accounts of Thursday’s crash, investors sold more and more stock off, sending the Dow into another tailspin. At the end of Monday’s trading, approximately 13 percent of the value of the Dow had been lost. Black Tuesday led to more losses that some believed were spurred on by President Herbert Hoover’s insistence that he would not veto a tariff bill that many on Wall Street thought would hurt the economy.
So, what caused the crash? Most believe an artificial economic bubble is to blame for the crash. The bubble was formed during the 1920’s and the great amount of speculative investing that happened during that time. The downturn in stock prices after the high in September saw a chain of events happen that led to the Great Depression of the 1930’s.
While no one can predict the future, it’s safe to assume that while our current economy is healthy, a possible stock market crash can happen again. But only if we learn from history can we avoid another long-term depression that shakes the American economy down to its very foundation.
More about Wall Street Crashes:
Wall Street Crash Of 2008
Regulators picking through the rubble of last week’s dramatic Wall Street crash have exposed a Byzantine system of electronic trading in the stock market that may have propelled the sell-off.
Thursday 6th May, the New York Stock Exchange plummets 1000 points; a historical first. By the Monday it recovers and a further 400 points are added.
Dow Theory forecasts a Wall Street Crash
Richard Russell, the famous author of the Dow Theory Letters, has joined the growing band of leading forecasters expecting a stock market [...]
While news producers scramble to put together a segment explaining today’s stock market crash, they will inevitably try to tie it to larger unrest.
Wall Street Crash Changes Companies – About Brokers
We change, society changes, and business changes. From night to day and from spring to fall the world keeps changing around us.