Trading POC – Page 18 – Just information about trading

How Does Bollinger Bands Work In Day Trading

Posted on February 17, 2019 by blogger

Bollinger Bands are one of the more popular indicators used in forex day trading and is developed by John Bollinger and are considered a leading indicator as 80% of price is contained within the upper and lower bands.

The Bollinger band contains three lines; upper, lower and center. The upper and lower lines are plotted as two standard deviations from the center line and measures price volatility.

When the market is flat and consolidated the bands are contracted and develop a narrow channel. When the market starts trending, the outer bands expands and often the candles will continuously pierce the outer band signifying that the trend is continuing.

There are a number of well-liked trading strategies used by traders when using Bollinger Bands that cater for consolidated currency market conditions, trending markets, and reversals.

Reversal Signals
During normal trading conditions the slope of the bands will indicate the market direction. When price hits one of the outer bands this could be an sign that the market is either overbought or oversold and a common practice is to enter a trade in the opposite direction when a new bar opens outside one of the outer bands and stay in the trade until the price hits the opposite outer band or stops at the mid band.

Trending Market
When the price continuously pierces an outer band then we trade in that direction until price once again opens inside the outer bands before closing our position. When the market is trending the bands will expand.

Bollinger Bounce
When the market is ranging, price generally tends to return to the center line or to the opposite outer band; this allows forex traders to trade off these lines; then reverse their positions once they bounce off the opposite band or the center line.

Bollinger Squeeze
When the market is flat with very little volatility the bands narrow forming a channel. This is normally the precursor to a breakout; the longer this condition exists the bigger the breakout is likely to be. During this period of consolidation price will generally oscillate between the upper and lower bands until the breakout occurs.

Ways To Create Profitable Cfd Trading Strategies

Posted on February 14, 2019 by blogger

Understanding the connection between 2 significant ratios is the key to having winning CFD trading strategies. These two ratios are risk reward ratio and the hit rate.

Lotto Against Contracts for Difference (CFDs)

Many people have bought lotto tickets once in their lives, but is this really the way to riches? The risk is very low, let’s say $10 for a ticket, while the reward is potentially huge, with first prize being many millions of dollars, say $10 million. The risk reward ratio involved is exceptional at 1 million to 1. There are only a few investments that have this kind of risk reward. But there is this issue in buying lotto tickets as an investment technique. It isn’t about the risk reward; it is the hit rate. If a winning Lotto ticket requires 6 correct balls out of 40 possibilities, then the odds of winning are 3,838,380 to 1.

If we were to play Lotto 3,838,380 times then we would expect to win once and lose 3,838,379 times. This means that we are to win $10 million and lose about 38,383,790 times. generally speaking, buying tickets in lotto is not a good CFD trading strategy. Luck will fall on some people in lotto but successful CFD trading isn’t about luck; it is all about exploiting great opportunities.

Rugby against Contracts for Difference (CFDs)

In the Super 14 rugby series the Crusaders has been dominating for the last ten years winning about 7out of the 10 series. In 2008 a gambler placed a $100,000 bet on the Crusaders to win a game at odds of just 1.08. This means that if the Crusaders won the gambler would have received a payout of $108,000, making a profit of just $8,000, but if they lost the gambler would lose $100,000. You can consider this a lousy edge ratio with the reward ratio of about 8 to 100 and a potential large loss for a very small gain. But the probability of the Crusaders winning the game is very high.

For this to become a profitable investment the odds would be over 90% that the Crusaders are to win the game. If the odds were only 95% then the gambler would lose only one out of the twenty games so that he would earn $8,000 times 18, $152,000, and lose an amount of $100,000 only once. This could be a profitable strategy as an investment technique even if the risk reward is lousy if the hit rate is high enough to justify the said investment.

A successful CFD trader will find a CFD trading technique that skews the odds in their favor and then implement that technique to produce profits.

Learn more about the 7 most essential trading tips and 2 of the most common CFD trading strategies.

Forex Trading- Effective Use Of Parabolic Sar

Posted on February 11, 2019 by blogger

Parabolic SAR or parabolic Stop and Reverse is one of the most visual technical indicator. The rising dots below the price action which move up when the price is moving up and hence indicating uptrend. The falling dots above the price action and moving down with the price when the price is falling and hence indicating a downtrend. When trend reverses and when the rising or falling dots hit the price action then it’s the time to stop the trade and take a position in the opposite direction. Stop and Reverse.

But is it really so simple?

The answer is “No”. Parabolic SAR does not indicate the trend and hence we can not take buy positions when the dots are below the price action or vice versa.

Then how to use parabolic SAR?

Well, As the name suggests, The Parabolic SAR helps us in the following:

1) Putting the trailing stop-loss orders.
2) Exiting the trade when the SAR indicates that its time to stop and reverse the direction.

But well, as we mentioned above that both of the above statements are not as simple as they seem and hence before getting a better feel of the above points let’s see when the Parabolic SAR indicator works and when it should be neglected.

Rule #1: Parabolic SAR works better in trends but should be neglected when price is having a sideways movement.

So how do we ensure the application of rule #1?
Well, the rule #1 can be applied by confirming whether it is a trend or not.

Confirmation of the trend:

Whether there is a clear trend or not can be ascertained one or a combination of the flowing:

1) ADX: ADX should be above 25 and rising.
2) MACD: For uptrend a bullish MACD i.e. MACD line crossing over the signal line. For downtrend the MACD crossing below the signal line.
2) Slow or Full Stochastic: Bullish Stochastic i.e. stochastic line crossing over the signal line for uptrend and bearish stochastic i.e. the stochastic line crossing below the signal line.

Now once we have confirmed that there is a trend in a particular direction, we are comparatively safer to use SAR as follows:

1) Putting the trailing stop-loss orders:

If the dots are emerging below the price action and we have a long position then we can move our stop-loss levels up at the level of rising dots. We can simultaneously raise our take profit targets. We should do this by keeping an eye on the other indicators mentioned above for reconfirmation that the trend is keeping up. The same is true with short positions. We continuously move our stop-loss levels to the level of dots moving down with the price. We can also move our take-profit levels further down if other indicators are showing that the trend not slowing down.

2) Exiting the trade when the SAR indicates that its time to stop and reverse the direction:

let’s say that we have a long (buy) position during an uptrend. The SAR dots appearing below the price actions are also moving up. This movement is initially slow but becomes faster with time and the dots come closer to the price action. There is some correction and price moves down. The moment the moving up dots hit the moving down price, SAR indicates that it may be safer to close down the position as the price may go further down. We can close our long position and open a short position. BUT WAIT. Confirm the downward trend with the above mentioned indicators and if they are not confirming a developing downtrend then please do not open a short position. So Stop and don’t reverse.

The same is true with short positions during downtrend. The price is falling down and the dots are over the price action and moving down. When price reverses the direction and falling dots hit it, it indicates taking profits by closing the position.

Why you need forex trading tools

Posted on February 8, 2019 by blogger

The concept ‘Forex’ is a contraction of ‘Foreign Exchange’, and is interchangeable with ‘Foreign Exchange Marketplace’ and ‘Currency Marketplace’. At the easiest level Forex trading is usually about purchasing one type of currency, and offering it in trade for a different currency, producing an income as you perform so.The simplest way to do has been forex currency trading tools.

For example, in the event that you buy an amount of cash in a single currency, and a couple weeks later on the exchange price fluctuations imply that the worth of this currency is continuing to grow in accordance with a different currency, you then might offer that sum in trade for the additional currency, effectively increasing the worthiness of the sum you began with.

Many people assume that to have any success with Forex trading online you need an actual knowledge of how international marketplaces work, of trading in currencies and of undertaking detailed monetary research. Actually whilst that is all certainly accurate, there’s another thing which could very well be more essential, and that is simply a knowledge of the proceedings in the globe.

If you go through or view the news headlines, and have an acceptable notion of what’s happening politically when it comes to the associations between various countries you then have an audio basis for getting into trading in foreign currency.

For example, in the event that you had purchased a commodity of Euros several weeks ago chances are you’ll very well have watched the news headlines and seen Greece’s financial complications escalating, Actually Greece’s complications did create a significant fall in the worthiness of the Euro, and the ones who moved right into a different currency in early stages produced either the most income, or the cheapest losses.

But certainly whilst an audio understanding of the way the behaviour of the leaders of varied countries may impact the exchange prices, additionally it is vital that you have an audio knowledge of how the forex trading system functions. There is nothing like working experience to assist you accomplish that, but working experience could be expensive. That is why it is suggested that for anybody getting started in FOREX CURRENCY TRADING it is advisable to open up a demo accounts and try your hands at virtual forex trading using forex currency trading tools. This enables one to gain working experience without risking your personal cash.

And work quite definitely about gut feeling. If you were to think this after that you’re greatest off forgetting international markets and rather consider up Blackjack or Roulette.

Forex currency trading requires careful evaluation, sound programs and particular goals, and it needs notice taking and a great deal of learning from errors and successes. Don’t forget to use forex currency trading tools.

My name is Maik Richman.

The Best Forex Trading Tools

True Professional Sports Arbitrage Trading Software – The Most Powerful and Efficient Sports Arbitrage Software

Posted on February 4, 2019 by blogger

For a true professional sports arbitrage trader it is virtually impossible to conceive of working in this business without using the most powerful and efficient software they can find. Instead of wasting time scouring the web searching for trades, professionals rely upon their software to do the hard work.

The arbitrage information arrives to their desktop, with all the parameters and calculations already in place. All that the sports arbitrage trader needs to do is to place the wagers, and wait till the event finishes and the profit to roll in.

Nowadays there are many companies offering software to handle sports arbitrage trading online. Some of them are fairly simple and inexpensive, and might appeal to the beginner. Yet if there ever was cause for the argument “cheap is dear” then it certainly applies to sports arbitrage trading software. Starting off with the best is a prerequisite for success.

Any reputable company marketing sports arbitrage trading software will be more than willing to provide short term trial periods to enable you to get the feel of the software. They should also provide learning tools that will allow the new trader plenty of opportunity to approach his or her trading project fully prepared. You may even find yourself able to earn profits during your trial, although you should not be disappointed if this does not happen: the experience you gain at the early stages will be far more valuable in terms of long-term profits.

There is a school of thought that says if you are just learning the ins and outs of being a sports arbitrage trader, you should set aside a little time after registering your accounts at the various bookmakers you will be working with, doing dry run wagers. That means picking out arbitrages located by the software and simply going through the process of finding the bets on the bookmaker sites until you feel comfortable with the software. You might even take this a stage further by putting together some low value arbs to get more of a feel of actual trading.

At this stage, you probably wont recover your subscription overheads and any bank charges, but the real-time experience will enable you to hit the ground running when you eventually start trading with higher stakes.

The fact is that professional-level sports arbitrage software will do almost all of the donkey work for you. It will scan the bookmaker sites frequently and consistently. It will calculate the arbitrage trades and display them for you in an orderly manner on your desktop. It will calculate your stake for you and provide you with a 1-click system to open and log you into the relevant bookmaker sites when you have decided on a particular trade. At after you have placed your bets it will record the information for you so that you have a record of all of your activity.

This leaves you free to focus on the knowledge work aspect of your trading. This will include things such as:

* managing your cashflow to ensure that your accounts are always tradeable when necessary
* looking for new bookmakers to trade with (the best software vendors will add new bookmakers to the software if you request it)
* doing background research on prices once you have been alerted to an opportunity (this is an excellent ay to leverage the information you receive from your software)

As you conduct your research into sports arbitrage trading software, youll discover that there are many different offerings available. Its worth trying them all out (those which offer free trials) to find out which suits you best.

However, there are some features which you should look out for in the sports arbitrage trading software you choose:

Sports Arbitrage Filters

An Arbitrage Filter enables you to restrict the types of arbitrage trades you receive. This will help make your trading more efficient as you will only ever be alerted of opportunities which are of real interest to you. The filters should operate on at least the following parameters:

1. Minimum Profit: This filter will block arbs which yield profits below the threshold you have set.

2. Bookmakers: This filter will block arbs which involve bookmakers you dont want to use.

3. Restrict By Sport: This filter will block arbs which occur in sports you dont want to trade.

4. Rules Coherence: In MLB and NHL, and in tennis, prices may differ solely because of unique rules revolving around things like pitcher-changes, injured players, overtime and so on. This might not bother you, but if it does, your sports arbitrage software should be able to block them

Bookmaker Bonus Trading
As an active sports arbitrage trader, you will almost always have some bookmaker bonuses waiting to be turned over on your accounts. Some sports arbitrage programs will allow you to list those bookmakers and it will then go on to alert you, in a separate window from the main arbs, whenever one of these bookmakers can be traded with either in an arbitrage or break-even trade. This type of feature allows you to become very systematic about extracting multiple risk-free bonuses on a regular basis.

Social Networking
If your sports arbitrage software allows it, the ability to chat and share trades and other information with other traders can be very helpful. As well as providing an instant community of like-minded individuals who are actively engaged sports arbitrage at the same time, if the Chat is built into the software then it should allow much faster sharing of sports arbitrage trades than would be possible using a normal instant messenger service such as MSN or ICQ.

Real-time Updates
With many arb alarm programs, websites and other services, youll receive emails or messages into your private account at a site. The problem with this is that you wont actually know about the arb unless you check for it. Some opportunities come and go in a flash, and if youre only refreshing your email browser once an hour, you may miss some golden opportunities.

Other programs which actually provide up to the minute updates onscreen, by simply keeping a little window open as you browse the internet, work, watch TV, etc. Take a glance at it now and then, and it will only show you the opportunities available at that precise moment. No outdated messages, just currently available opportunities.

Speed
The best arbitrage trading programs should let you complete a trade within 1-2 minutes by pre-calculating your stakes and opening and logging you into your bookmaker accounts automatically.

Comprehensive Arbitrage Calculator
As touched upon above, your software should automatically calculate your stakes for any type of trade, including those with betting exchanges. It should be able to take into account, automatically, issues such as exchange-commissions and up-to-date currency exchange rates.

Free Trials
If you cannot get a free trial of the software, the chances are that the seller has something to hide. You should be allowed to play around with a trial version of any arb program before investing in it. Beyond how effective the software is, you want something user friendly, easy to understand, and easy to use. Remember, youll be using this software extensively as you trade so you must feel comfortable with it.

Some things to consider while using your free trials

1 – Is it fast?
Sometimes a program acting slowly isnt your computers fault, it might just be clumsy or careless programming by the software developer.

2 – Does the user interface make sense?
If you cant get to grips with all of the features of the program in less than a day, its probably going to be too unwieldy to use quickly and efficiently in a trading environment.

3 – Does it get you good results?
This is the most important thing. A good sports arbitrage alerts system is meant to do one thing: help you to make more money. If youre not being presented with plenty of great, genuine & tradeable arbitrage bets, move onto the next software.