Month: April 2019

Even traders that are successful don’t change styles of trading as the conditions of the market change; they find a pattern that usually brings success and they stick with that pattern. When times occur when they lose because their style isn’t market compatible, they simply feel that those are the breaks that happen and just accept the loss. They have the idea that their stock trading strategy all possibly trade styles, but it’s not the case .
If traders are able to figure out the market state, that is, the type of trading going on now and the type of trading expected , they can considerably improve their returns . This is because when congestion trading no one applies the techniques of trend trading .
Some times the market state can be ambiguous. There wouldn’t be a market if things always were clear , since traders wouldn’t have different opinions , and trading in the same direction would be done by everyone all the time.
One such ambiguous state is when a trend seems to be out of energy and ready to change , and momentum indicators roll and look like they’ll be going from trend to congestion entrance. But the signals are not clear enough for the trader to go whole hog and initiate a large position .
When this occurs a trader can use pinging . Pinging is an attempt to hedge your bet a bit . The anticipated turn is where they place their single direction trades , but they don’t hold them too long , and when lower time period support appears they get out . At turning points the market frequently manifests “pumping” action , with swings in both directions that are volatile and large as traders of differing opinions around the world take positions against each other . Repeated multiple positions can be taken if a trader is pinging as the market moves from resistance to support and back again . Instead of riding the market both ways, and rather than placing a large bet on the anticipated new direction and holding on for dear life , it is as if stock trading strategy to the trader that he could “ping” the market , taking smaller positions only in one direction , and being willing to quickly and early cover when short term support is reached by the price.
Great profits can be enjoyed when pinging and it has the trader closely in contact with the market as the battle between shorts and longs go forward . Traders will be protected from a too early by pinging, even in a confusing market will allow profits to be brought in when attempting to end a trend may fail and the new direction is not certain. Pinging lets traders keep themselves in a position so that when the new trend does settle in and become well established , he or she is already aboard . When seen correctly , stock trading strategy pinging as one method of entering the market when a trader isn’t totally sure about the next direction of the market .

For many average investors, commodity futures trading are quite hard to understand and deal with due to a largely complex trading process. However, it is only hard to novel investors. Once you have understood the running concept, you can start counting returns even before you invest your money. This article will give you a few pointers towards that direction.

To make it big in commodity futures trading you must have a broker who is well versed in futures trading or an FCM (Futures Commission Merchant). An FCM is an intermediary between the futures market and public traders. The broker deposits a certain margin online to the realm of futures trading market so that he or she can make the trader recognized. We have two brokerage types namely the discount brokers and the full service brokers.

In commodity futures, the trading performance is held in place by a contract that is known as a futures trading contract. The commodity futures contracts are created so that the underlying commodities a trader has invested in can be traded sometime in the long run at a more fixed rate, mostly in the current market prices of the time. Just like trading in stocks, the commodity futures are traded only at certain trading markets that are centralized for that sole purpose, such as Globex and S&P.

Many investors in the futures trading world of commodities are mired by the misconception that it is the commodity futures exchanges that establishes or determines the prices of commodity futures when selling or buying. The truth however is that the commodity’s demand and supply ratios are the determining factors of the market price rates. Like in all trades, you must remember that if the buyers exceed the sellers, the price automatically shoots up. The converse is also true.

Essentially, the sell and buy orders are the ones that determine the kind of prices to be set and they originate from multiple sources. All orders are channelled through the trading exchange for appropriate execution. Commodity futures trading has evolved over the years and currently it has been affected to an extent by online markets. Futures trading online offers the convenience of trading from home and a wider market reach.

A huge number of brokerage firms that have set up their websites. This allows you to trade in distinct commodities on these websites. The brokers on the other hand require you to begin trading only after registering an account with them and after you have downloaded a trading platform, which will give you the ability to trade. Some of the futures trading sites provide you with a number of commodities trading service execution, from broker execution, foreign exchange currencies, self directed execution online to automated system execution. All of these can easily be in use in commodities trading except the foreign exchange platform of execution.

The importance of a commodity futures trading broker is that he or she is responsible for the maintenance of records that include the customer deposit margins, completed transactions, money balances and open futures.

A Forex account manager is a professional trader who trades on behalf of the owner of a Forex account for a salary or a percentage share of the profits. A Forex account manager is usually given authorization by the account owner to place trades in his or her trading account without his or her intervention. It is of essence to note that the permissions of the account manager are restricted to trading only. The account manager is not authorized to deposit any extra capital to the account or make withdrawals from the account.

Not every trader can qualify to be a Forex account manager. It needs a lot of experience in the operations of the Forex market to qualify for this role. Importantly, an account manager should practice the right money management rules and proper risk level when trading currencies. Therefore, it is essential that you do not entrust your money with anyone that brags of huge profits on a Forex managed account history. This is because most of the so-called Forex account managers are fraudsters who post fake two or three months trading history when they were realizing huge profits because they were trading with high risk and they were not practicing proper money management.

In addition, because of the dynamic nature of the Forex market, past results are usually not indicative of future results. This is the hard reality of Forex trading. Thus, you should not throw your hard-earned cash to any Forex account manager you find promoting his or her services with flashy banners. Beware!

Most people prefer to entrust their accounts to Forex account managers because they lack the experience and the necessary skills to invest in the Forex market. Other people claim that they are prone to emotional extremes and thus they like to entrust their funds with an account manager in order to overcome this problem. Inadequate time to study and analyze the conditions of the market is another reason why some people opt for account managers.

However, the problem with these viewpoints is that they rob someone the priceless knowledge and experience gained by studying how to trade currencies. Most people do not like educating themselves on how the Forex market works and they end up entrusting their hard-earned cash to account managers who blow their accounts in a matter of days. In the end, the only way of succeeding in the business of trading currencies is to be knowledgeable, develop a profitable strategy through adequate practice, and maintain discipline regardless of the market conditions.