Trading the pullbacks in a verified trend can be some very low risk trades. Swing-Trades-Stocks.com explains one way this can be done. Click this link
http://www.swing-trade-stocks.com/pullbacks.html
Tuesday, July 28, 2009
Candle Stick Video
This is a candle stick webinar on the basics of candle sticks, by Steve Nison and sponsored by Profit Run. Steve also give a few advanced tips.
http://www.profitsrunsupport.com/webinars/nison20090715/
I don't know how long this video will be there so take advantage of it now.
http://www.profitsrunsupport.com/webinars/nison20090715/
I don't know how long this video will be there so take advantage of it now.
Tuesday, July 21, 2009
Technical Tips from Dan Gramza
Hello everyone, this is Dan Gramza and welcome to Gramza Market
Studies Technical Tip.
Well today we're going to be talking about selling rallies. Now what
does it mean when people say, "sell the rally" when you want to
get into a trade? Or they sell a pull back? Or you hear things like,
"The Trend Is Your Friend?"
Well we're going to explore this here in just a minute. I want to show
you the technique and I want to show you some examples of how
these markets behave in those settings.
I want to show you an example, but before I can talk to you too much
about this example I need to define a few things for you. First candles...
the approach that I use with Japanese candle charts, and that is what
you're looking at here, is not the standard approach. So from my
perspective,
I don't focus on patterns, I focus on behavior. If we see a green candle
that represents buying, that means that the closing price is higher than
the open. If you see a red box that represents selling it means that the
closing price is below that opening price. If you see a white line on top
that's called a shadow, I think that represents selling. If you see a
white
line on the bottom that represents buying. Now with that in mind, the
sizes
of the bodies and the shadows tell us about the degree of buying or
selling.
Now let's talk about this set-up here...
To get the rest of the tips, please visit the link below and WATCH me!
http://www.ino.com/info/36/CD3393/&dp=0&l=0&campaignid=9
Studies Technical Tip.
Well today we're going to be talking about selling rallies. Now what
does it mean when people say, "sell the rally" when you want to
get into a trade? Or they sell a pull back? Or you hear things like,
"The Trend Is Your Friend?"
Well we're going to explore this here in just a minute. I want to show
you the technique and I want to show you some examples of how
these markets behave in those settings.
I want to show you an example, but before I can talk to you too much
about this example I need to define a few things for you. First candles...
the approach that I use with Japanese candle charts, and that is what
you're looking at here, is not the standard approach. So from my
perspective,
I don't focus on patterns, I focus on behavior. If we see a green candle
that represents buying, that means that the closing price is higher than
the open. If you see a red box that represents selling it means that the
closing price is below that opening price. If you see a white line on top
that's called a shadow, I think that represents selling. If you see a
white
line on the bottom that represents buying. Now with that in mind, the
sizes
of the bodies and the shadows tell us about the degree of buying or
selling.
Now let's talk about this set-up here...
To get the rest of the tips, please visit the link below and WATCH me!
http://www.ino.com/info/36/CD3393/&dp=0&l=0&campaignid=9
Monday, July 20, 2009
Why not to buy OTM directional Options?
Do you trade directional options? Read this interesting article By Josip Causic, Online Trading Academy Options Instructor, on why it's not a good idea to trade direction OTM options.
http://www.tradingacademy.com/lessons/20090714/options_article.htm
http://www.tradingacademy.com/lessons/20090714/options_article.htm
Sunday, July 19, 2009
Battle of the EUR vs USD…who’s the winner?
Today I’ll be looking at the Euro versus the US dollar.
The big question is, are all the “Trade Triangles” lined up for this trade? The answer is yes, and then some. In my new video I step you through a detailed analysis of this market.
You will see how I measure moves and how this particular move could be a really good one. I will also share with you how MarketClub’s charts can help you determine price swings in the market.
You can watch this video with my compliments and there is no registration requirements.
http://www.ino.com/info/405/CD3393/&dp=0&l=0&campaignid=3
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The big question is, are all the “Trade Triangles” lined up for this trade? The answer is yes, and then some. In my new video I step you through a detailed analysis of this market.
You will see how I measure moves and how this particular move could be a really good one. I will also share with you how MarketClub’s charts can help you determine price swings in the market.
You can watch this video with my compliments and there is no registration requirements.
http://www.ino.com/info/405/CD3393/&dp=0&l=0&campaignid=3
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Thursday, July 16, 2009
Low Risk Entries with MarketClub's Triangles?
In looking at strategies that give low risk entries and high rewards a question about MarketClubs's triangles came up. If following the basic use of the triangles would I be entering low risk trades? I would say the answer is yes. The simple basic use of the triangles is this: 1) the monthly triangles are your trend direction. 2) The weekly triangles are your timing for entries.
Look at the chart of RIMM below. On a weekly chart a monthly triangle occurred in July 2008 signaling a downtrend. Also, this is telling you that you are to only take shorts which are signaled by the down weekly triangles. Notice, a down weekly triangle occured in September 2008. You could have entered short at the close of that week or opening of the following week.
You could have placed your hard stop at the top of highest bar that occurred in August. If you noticed, that high point is the turning point or a swing high. Most times, the triangles are occuring at turning points. We don't expect the market to go back to the high or low of these points right away but if it does, then the triangles were wrong and we are stopped out with a small lost. If we are right, as in the case of RIMM, we have a nice profit. I think the triangles are a pretty cool tool especially if you trade direction options.
Click here to learn more
Look at the chart of RIMM below. On a weekly chart a monthly triangle occurred in July 2008 signaling a downtrend. Also, this is telling you that you are to only take shorts which are signaled by the down weekly triangles. Notice, a down weekly triangle occured in September 2008. You could have entered short at the close of that week or opening of the following week.
You could have placed your hard stop at the top of highest bar that occurred in August. If you noticed, that high point is the turning point or a swing high. Most times, the triangles are occuring at turning points. We don't expect the market to go back to the high or low of these points right away but if it does, then the triangles were wrong and we are stopped out with a small lost. If we are right, as in the case of RIMM, we have a nice profit. I think the triangles are a pretty cool tool especially if you trade direction options.
Click here to learn more
Using Volume with Support and Resistance
Buy near support, and sell near resistance. Sounds familiar. Buying near support or selling near resistance can offer some low risk entries when trading or investing. Adding volume to the mix can even be more helpful in making decisions. Here is a link to a pdf document titled "Price + Volume = Price Movement" by Tim Ord.
http://www.ord-oracle.com/pdffiles/PriceVolume.pdf
http://www.ord-oracle.com/pdffiles/PriceVolume.pdf
Good Market Research in One Place
FINVIZ.COM was recommended in a newsletter that I received and after checking it out I believe it's very helpful to those needing a resource to research the markets. The site is jam pack with good stuff such as performance date, heat maps, and screeners. Check it out at FINVIZ.COM.
Friday, July 10, 2009
What now for Dollar vs Yen relationship? (New Video)
Today we are looking at a market we have not looked at for quite some time. I am of course referring to the Japanese Yen US dollar relationship.
The video I have just completed is less than four minutes long and it will give you a good idea as to what the next major direction will be for the dollar against the Yen.
You can watch this video with my compliments and there is no registration requirements. I would love to get your feedback about this video on our blog.
http://www.ino.com/info/400/CD3393/&dp=0&l=0&campaignid=3
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
The video I have just completed is less than four minutes long and it will give you a good idea as to what the next major direction will be for the dollar against the Yen.
You can watch this video with my compliments and there is no registration requirements. I would love to get your feedback about this video on our blog.
http://www.ino.com/info/400/CD3393/&dp=0&l=0&campaignid=3
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Wednesday, July 1, 2009
The Risk Factor
We here alot about managing risk, know your risk or have a good risk to reward ratio. I've been thinking about this and also thinking what really determines if a trader is successful or not. And you know what? It is that risk factor.
There are so many strategies out there, good and bad, but if risk is not controlled then you are setting up for failure and the strategy doesn't really matter. Why is managing risk so important? Let's look at a business. There is risk involved when you operate a business. For example, you buy materials to produce a product to sell. All your invested money, expenses, and work into that product is at risk. If no one buys the product you lose money and time you had invested. Yes, you still have the product but it's no good to you. You might have a sale and sell it cheap in order to attract buyers. You got rid of the product but took a lost at the same time. The big question after that is can you do it all over again? Can you still operate the business? Hopefully the answer is yes because although you took a lost, it was a small lost compared to what you would had made in profits. And because the lost was small you still have capital to make more products.
A successful trader is one that keeps his/her risk low and is able to stay in the trading business to trade for another day.
How do you determine your risk. Well, it is often recommend not to risk more than 2% of your total account value. So if your account is $5,000, you would only risk $100. In a sense you are saying you are willing to lose $100 for every trade or combination of trades.
In my demo futures account I've set the account value to $2000. I determined that I would only risk 1% of $2000 per trade which equates to $20. Easy math. If I trade the miniDow which 1 tick = $5, I would place my stop 4 ticks from entry (4 ticks = $20). If my risk/reward is 1:1 that is for every $20 at risk I make $20, and I made 4 trades in which 2 were losers, I would break even. If the my risk to reward ratio was 2:1, that is for every $20 at risk I make $40, and keeping the same 4 trades I would had come out with a profit of $40. The point is that I can still trade another day.
So, no matter the strategy please determine the maximum you are willing to lose on a trade. And let it be such that it doesn't break your bank if you were to lose often. Yes, your strategy is still important for you want a low risk/high reward strategy that even if your loses are small your wins are big. Amd the big wins would off set the loses. Please be warned that some strategies call for high risk low rewards. Such strategies would have to have more wins than losers in the long run. If they don't you will be out of business. I saw an automated forex strategy for Metatrader that has a 1:4 ratio. It made 20 pips a day but the stop was 80 pips away. You risked 4 for every 1 gained. NOT GOOD. The idea seemed good and it was giving good profits in backtest for certain periods but run it for other periods and it drained the bank. Please be careful. Another time I will stress the importance of a good strategy to suit your risk/reward ratio.
Happy Trading
There are so many strategies out there, good and bad, but if risk is not controlled then you are setting up for failure and the strategy doesn't really matter. Why is managing risk so important? Let's look at a business. There is risk involved when you operate a business. For example, you buy materials to produce a product to sell. All your invested money, expenses, and work into that product is at risk. If no one buys the product you lose money and time you had invested. Yes, you still have the product but it's no good to you. You might have a sale and sell it cheap in order to attract buyers. You got rid of the product but took a lost at the same time. The big question after that is can you do it all over again? Can you still operate the business? Hopefully the answer is yes because although you took a lost, it was a small lost compared to what you would had made in profits. And because the lost was small you still have capital to make more products.
A successful trader is one that keeps his/her risk low and is able to stay in the trading business to trade for another day.
How do you determine your risk. Well, it is often recommend not to risk more than 2% of your total account value. So if your account is $5,000, you would only risk $100. In a sense you are saying you are willing to lose $100 for every trade or combination of trades.
In my demo futures account I've set the account value to $2000. I determined that I would only risk 1% of $2000 per trade which equates to $20. Easy math. If I trade the miniDow which 1 tick = $5, I would place my stop 4 ticks from entry (4 ticks = $20). If my risk/reward is 1:1 that is for every $20 at risk I make $20, and I made 4 trades in which 2 were losers, I would break even. If the my risk to reward ratio was 2:1, that is for every $20 at risk I make $40, and keeping the same 4 trades I would had come out with a profit of $40. The point is that I can still trade another day.
So, no matter the strategy please determine the maximum you are willing to lose on a trade. And let it be such that it doesn't break your bank if you were to lose often. Yes, your strategy is still important for you want a low risk/high reward strategy that even if your loses are small your wins are big. Amd the big wins would off set the loses. Please be warned that some strategies call for high risk low rewards. Such strategies would have to have more wins than losers in the long run. If they don't you will be out of business. I saw an automated forex strategy for Metatrader that has a 1:4 ratio. It made 20 pips a day but the stop was 80 pips away. You risked 4 for every 1 gained. NOT GOOD. The idea seemed good and it was giving good profits in backtest for certain periods but run it for other periods and it drained the bank. Please be careful. Another time I will stress the importance of a good strategy to suit your risk/reward ratio.
Happy Trading
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