As the dollar continues its descent into uncharted territories, the calling towards gold couldn’t be any louder. Many people are abandoning their paper currency in trade for something more worthy. However, why is it that gold is valuable anyway, and why is this metal the place that everyone turns to when the dollar does become unpredictable? Why So Valuable? To … [Read more...]
3 Essential Money Management Tips to Improve Your Trading Profits
There are many things that define a successful trader, but perhaps none more important than having good money management. In fact, without it trading becomes more like gambling and the house usually wins. For those that do use proper money management, the sky really is the limit as the markets will look more favorably upon them. However, most don't know where to start and it's … [Read more...]
Trading Dow Jones Futures, Risks and Working Examples
Dow futures are great way of speculation and hedging the Dow Jones. The Dow Jones Industrial average is an index made up of the "big players" across nine industries. As the Dow Jones chart shows, the performance has been very good in recent years. The index has in fact increased around 50% in two years. The size of a standard futures contract is valued at $10 X Dow. For … [Read more...]
FTSE Futures and Trading Example
FTSE futures are a way of speculating on the FTSE 100 index. This index is made up of the 100 most capitalized company's on the London Stock Exchange. The FTSE 100 companies make up approximately 80% of all the market capitalization on the London Stock Exchange. Historically the index has been volatile reaching a high of 6950 in 1999. This high has not been touched … [Read more...]
Timing The Trade – Market Perfection
Is ‘timing the trade‘ an important concept? Personally, I think it is. But then again I disagree with dollar cost averaging and stopless trading. But forgetting my own opinion on that, exactly when does one strike? When does one pull the trigger? When do you move without hesitation into a position? What does that moment feel like? How does one know the feeling? Excellent … [Read more...]
How The Correct Risk Reward Ratio Can Boost Your Profits
Ever wonder why a 1:3 Risk:Reward ratio is so prevalent as a rule of thumb? Ever since I’ve been reading about day trading, I’ve heard people say they ideally look for at least a 1:3 ratio, even they’ll settle for 1:2. In this article I’ll talk about how you can derive this value from the expectancy equation. Further, I’ll show how you can predict what kind of Risk:Reward ratio … [Read more...]