Learn To Trade

Analyzing a Pullback System

It is important for the trader to have multiple techniques in his toolbox, since different techniques are favored in different market conditions. I run over a dozen different scans every evening and select the ones best suited to the current market environment....

Automated Robots and Systems

What is a robot? A “robot” is a program that strictly uses technical signals to enter in trades and lets the human sleep in a hammock on a beach while he “makes” money.With a push of a button, the robot runs continuously, making trades signaled by math...

beginners guide how to analyze the stock market

Analyze the Stock Market For Dummies There are two schools of thought in stock market analysis. Some investors believe the best way to analyze markets through fundamental analysis. While others believe technical analysis is the way to go .it's probably...

Call Option

Let's say that a trader is bullish on silver short term, so he wants to trade 1000 shares of SLV. Instead of buying 1000 shares of SLV, the trader buys 10 Febuary SLV Call Options that expire in about 6 weeks.A Call Option locks in a pre-set buy price...

Carry Trade

On the surface it a simple arbitrage between interest rates. Underneath, it determines the viability of a currency and, therefore, a nation and can rock the world. Again, the carry trade is an investment strategy involving basic arbitrage between interest...

Dark Secrets: Internalization and Payment for Order Flow

Many of these retail orders are internalized. In simple terms, that means the opposite party to your executed order was your broker/dealer themselves. These retail orders never leave the brokerage house. Other times your broker will ship your order to...

Economic Releases

how the market reacts to economic releases is generally determined by two factors:1. How important the market considers a particular release to be.2. How close to market estimates the number comes in at. Remember that markets anticipate news,...

Elliot Wave

The Elliott Wave Principle is a type of technical analysis that utilizes past cycles or repetitive patterns to identify predictable market behaviour. It was developed by Ralph Nelson Elliott, who published his theory of market behaviour in the book, “The W...

Follow and trade the trend

Now that we have determined that there is a trend happening, we are going to finally start to trade it. There are a few different ways to take advantage of a trend, let’s look at them…- Support and ResistanceThe first and most basic method for...

Forex

The foreign exchange market is the "place" where currencies are traded. You'll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous and all refer to the forex market. There are many interesting things that ...

Futures

Prior to the invention of modern day futures exchanges, farmers and purchasers of agricultural products such as grains were subject to wild fluctuations in market prices. During the harvest season when farmers were bringing their grains to market, there...

Futures Trading Transaction Costs

When trading futures there are 3 primary transaction fees that traders need to be aware of which are:1. Spread2. Slippage2. Commissions3. Exchange FeesFirst lets take a look at the spread. Like when trading any other financial market,...

Get With The Strength

All traders, at one time or another, try to find the secret to success - the trading Holy Grail. There is no Holy Grail, of course, but I can share with you a secret that comes close: If you want to make consistently large trading profits, trade strongly...

Hedging Using Futures Contracts

This is designed for the person who is seeking to profit from price fluctuations in the futures markets, who are also known as speculators. It is important for speculators to understand however, that like the primary purpose of the stock market is to...

How to be a successful trader !

1. You have to have Discipline.Discipline is at the top of the list for a reason. Discipline makes it all work. Discipline keeps you on track and focused. There will be temptations along the way that will entice you to trade in a manner not in accordance...

How To Gauge Momentum

we have couple of our chart analysis strategy with risk control using the same price chart tools. the idea is to keep this simple. a simple price chart using price intervals that allows us to perform quick analysis in order to achieve our goals the next...

How To Identify The Trend

actually this is the simplest part of the entire method. Albert Einstein once said “Make things as simple as possible, but not simpler”, and to that end, here is a good way to identifying if a market is in a trend.Use two Exponential Moving Averages: ...

Jack Schwager - advice for newbies

What advice would you give to newbies?Jack Schwager: I would advise rookie traders not to assume any particular trading strategy is right or better for them.The process is first, read.That’s a challenge in itself. However you do it, just pi...

Market Adaptive Trading

Using the same trading technique and exit strategy in all market conditions is likely to give you lots of practice at taking drawdowns. There is no single technique that magically works in all markets, no matter what those slick brochures we all get in...

Market Maker

Ways of a MM (Market Maker)For the most part MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade.They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped...

Online Stock Brokers

TD Ameritrade - Rated #1 Online Broker Overall in our 2017 Review, TD Ameritrade offers one of the largest varieties of trade tools through its desktop based Thinkorswim and web based Trade Architect platforms, Best in Class ratings for numerous categories...

Put Option

Put options are basically the right (but not the obligation) to sell an asset. If an investor owns an asset, they can thus buy put options to hedge against short-term downwards movements.Here is an example from the video: Trader is long 100 shares...

Review of Van Tharp's - Trade your way to financial freedom

Chapter One - The legend of the Holy GrailAs promised I start my review of this book with an open mind and hope to keep your interest along the way!!Now if you are like me the title might lead you to immediately think of the Monty Python film...

Stock

A stock is very simply representative of a small piece of ownership in the company whose stock you are buying.A “public” company is one that has issued shares by selling them to the general public. Once those shares have been sold, investors can tra...

Stock Option

An option is simply a contract that provides the buyer the right -- but not the obligation -- to buy or sell a given asset at a specified price within an fixed amount of time.For instance, one might buy an option to buy 100 shares of AMZN at $750...

The VIX

Investorwords.com defines the VIX as:Quote:"Market Volatility Index. An index designed to track market volatility as an independent entity. The Market Volatility Index is calculated based on option activity and is used as an indicator of investor...

trading indicators – a beginner guide

Support and Resistance The markets bounce around every day as investors enter and exit, finding the equilibrium price where buyers and sellers are content. When new information becomes available, an exchange will quickly move to a new equilibrium level....

Trading psychology

If you choose a simulation strategy that has a defined number of setups, a fairly specific strategy for limiting losses, and you stick to that strategy like glue, never deviating from it – then simulated trading is a logical way of testing your method i...

Weinstein Basic Rules for Trading Success

Mark Weinstein 7 Trading Basic Rules for Trading SuccessWork hard on the basics and know all the important details about the instrument you are trading.Most successful traders are humble not arrogant. If you are arrogant you are likely...

The process of trading is not to be taken lightly.  Should you decide to venture upon this journey, you must know that you run the risk of losing every friend you have, your sanity, your dignity, all your worldly possessions, and most of all every penny you own.

On the other hand, if you learn to trade properly and stick to your strategy, you can make a lot of money.  Keep in mind that there is a price to pay.  This price is often called, for newbees,tuition.  That price includes those trades where you have a loss, the hours you spend reading books and information sites on the web, the time away from your friends and family, and a change in your life style. You’ll stay up nights doing research and you’ll pass up those get-togethers with friends at the local Dog & Suds.

“No” you say.  Well friend, lets get something straight from the beginning.  Trading is not for the weekend warrior or the midnight cowboy.  Unless you are willing to put in the time to study and learn, YOU WILL FAIL!

The amount of studying and preparation that you invest will ultimately determine the level of success and the strategy that you design for yourself.   That’s right, you will design and determine your own strategy.  While others will try to convince you that their methods are right or if you decide to follow someone else’s method you must always remember:

“You and you alone are responsible for your actions. 
You and you alone are responsible for any trades that you make.
You and you alone are responsible for doing your own Due Diligence (research).

Don’t be so foolish as to try to blame others if a trade goes sour and you lose money.  You should have gotten out of the trade before it dumped you beyond your economic capabilities.

One more note of caution: don’t let your ego get in the way of saying to yourself, “This is not for me.”    All too often, people see dollar signs in their eyes and just won’t admit that trading on-line is not for them.  If you still want to trade in stocks you might try working with a full service broker for a few years.  Some people find that a full service broker satisfies the craving.  Remember, learn your limitations.  Don’t be afraid to admit to yourself that this is not suited to you. 

Ok, I know, enough already.   We’ll, the reason we started this site was because we would see, and still do see, people everyday losing everything.   We want to make sure that prospective traders really are aware of the risks involved with trading.  Also, for those of you that are really sure that you want to go on, then, at least you are armed with a wealth of resources where you can study, research, practice and chat in your pursuit of learning to trade.

Don’t be foolhardy.  Trade with only those funds that you can afford to lose.  Don’t use your savings, retirement plans, school tuition, etc.  Be cautious, learn to trade on paper first.

Perhaps before going much further, you should read some comments from some of the chat rooms on starting to day trade for a living.  As in any job, there are pros and cons.  Read between the lines and learn to separate the hype from reality.