Posts Tagged ‘Time’

Take Advantage of Forex Options to Multiply Profits in No Time

Options are normally connected with the stock market. But, they are also used in the forex or foreign exchange market. Forex options let traders the chance to cash in on money at a risk they have fixed on their own.

The conventional options render the trader the freedom to buy from the seller at a preset price, even if the trader is not under any compulsion to purchase at the preset price and time. For example, a trader can buy ten lots at a less price and sell them for a greater price if the value of the stock goes up. All the same, in case the price goes down, the trader incurs a loss on his premium.

FX options are not traded on an exchange and are over-the-counter options. This gives the currency traders the flexibility to pick up the price and time of their desired options. The traders will obtain a premium quotation that they must pay to receive the option.

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There is the single payment options trading or SPOT option that adheres to the same idea as conventional options. However, the only exception is that the currency trader will initially offer a forecast on the market trend for a particular currency. Subsequently, he receives a premium and gets the cash if his forecast comes true. If the trade tastes success, SPOT trading transforms the option to cash in an automated manner.

The SPOT forex options can be traded in a simple way. The reason is that these options solely demand the trader to give a forecast. After that, the trader just waits for the outcome of the forecast. Nevertheless, if the forecast is found to be incorrect, the trader will miss out on his premium.

One more form of FX options is the binary options. To embark on trading, the trader will need to create an account with a broker dealing in binaries. For this kind of options, the account can be created in a simple manner which is similar to signing up and depositing an amount.

Foreign exchange or forex options offer a tremendous chance for traders to generate profits taking fewer risks. The options remain highly active in any situation, even during political turmoil, crucial economic declarations, and soaring economic imbalance. The trader has the capability to determine whether he desires to take advantage of these conditions.

The prices of FX options can get affected by several factors like the intrinsic value of the option, time value, the varying rate of interest, and the instability in the currency. Usually, the price of the option can be denoted in 3 ways, such as ‘in the money,’ ‘out of the money’ and ‘at the money.’

CallWriter.com Launches New Generation of Covered Call Lists that Update in Real Time All through the Trading Day

CallWriter.com Launches New Generation of Covered Call Lists that Update in Real Time All through the Trading Day

Gainesville, FL (PRWEB) August 23, 2005

LogiCapital Corporation, which owns and operates http://www.callwriter.com , the world’s foremost site for covered call writers, announced that it has launched an entirely new generation of its Real Time Lists™ of the highest-returning covered call trades designed for writing covered calls. Buoyed by the rising interest in stock option trading and stock option strategies, covered call writing has exploded in recent years. CallWriter.com uses highly advanced software technology to access market data and make trade calculations, which has resulted in new covered call lists that update every few minutes all through the trading day using real-time prices, unlike competitors offering similar lists using stale, end-of-day prices. The new lists offer more information on each trade, such as net debit, downside protection percentage, company industry, average daily stock volume and a proprietary volume momentum indicator. Readers are invited to view a sample of the new covered call screener list.

The Real Time Lists™ now include 13 separate lists of covered call trades, and provide two months of each list. With up to 30 trades per list, our members can scan as many as 780 potential covered call trades any time. The new lists feature the stock, call option strike price and symbol, the flat and if-called returns, net debit and downside protection, open interest on the calls, the stock’s average daily volume and any volume momentum, the stock’s P/E ratio, two moving averages of the stock’s price, and the company’s industry. Plus, traders can do the requisite analysis and research on each covered call trade right from our lists, with a mouse click.

Publisher John Brasher pointed out that, “Our older-generation covered call lists were more advanced than any other lists out there. The combination of our proprietary calculator for managing covered call trades and our new lists take us to light speed and clearly establish CallWriter as the most advanced and most useful covered call site in the world. In addition, our advanced software platform will allow us to launch additional sophisticated new lists of different option strategies.”

Covered call writing is a simple trading strategy that consists of buying stock and writing call options against it, or writing call options on stock already owned. The sale of call options produces income to the call writer from the underlying stock. Covered writing, an option trading strategy designed to produce a consistent 3% to 5% monthly returns, continues to gain in popularity as traders realize how easy it is to do and how simple the trades are to manage.

Visitors are welcome to sign up for the MONEY newsLETTER, our free newsletter devoted to tips and tricks of the trade on covered call writing, stock option trading, stock option strategies, technical analysis and much more. Check out our archive of past newsletters, which is available free to the public.

About CallWriter.com:

Callwriter.com, a highly popular Web site for traders devoted to covered call writing, features the world’s only Real Time Lists™ of the highest-returning covered call trades, the Trade Management Calculator™, the world’s only covered call calculator designed to manage open covered writes for maximum profitability, and extensive free education on covered call writing, stock trading and stock option trading. CallWriter makes the CallWriter Method of covered writing, a complete system encompassing trade selection and analysis, trade planning and trade management, available on its site to members at no extra cost.

Contact:

John Brasher, Publisher

CallWriter.com

352-264-8140

john@callwriter.com

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Do the principles of technical analysis work for any time frame?

Question by James: Do the principles of technical analysis work for any time frame?
For example, could you apply a strategy using a 5 min moving average crossing a 20 min MA just like a 5 day MA crossing a 20 day MA?

Best answer:

Answer by Common Sense
The short answer is: yes!

As a matter of fact…. there’s a great book called;
“Technical Analysis Using Multiple Timeframes” that covers this topic,. You’ll find a link on this page: http://www.alphatrends.net/

Having said that….. MA’s are commonly used as a point of reference. Never use an MA as your main reason for making a trade. Remember, Technical Analysis is an art. Don’t try to duplicate someone else’s formula. To be successful in TA….. if must be something you’ve developed over time. This can take years.

Also….. never lose sight that no trader is successful without understanding and using money management techniques and trader psychology.

Good luck!

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Q&A: How to build a position over time using technical analysis?

Question by Richard: How to build a position over time using technical analysis?
specifically how best to reduce risk when building a position over time (typically a bear market lasts 9 months to 2 years and a bull 4-6 years). e.g., If you want 100k invested in a stock or ETF, how to schedule each buy for a long position over time? e.g., moving averages identify the trend but not sure exactly when to schedule buys using moving averages

Best answer:

Answer by MVD34
technical analysis is largely garbage. It cannot tell you anything with certainty and most people are unable to correctly assess the (very low) probability within the models.

Instead let me given you what the numbers tell you to do with a lump sum: invest it all now.

(Yep. It’s really that simple)

And what behavioral science tells you to do: divide the money in “relatively large” chunks and pick a “relatively short” time frame and an inflexible trigger. Then invest each chunk at the trigger and never look back.

Assuming 100k is a relatively large amount of money for you (a year’s income or more), the behavioral method would recommend investing 1/6th of the money on the 15th of the month every month for 6 months.

If 100k is not relatively large, a rule might be 50% today and 50% exactly 5 weeks from today.

The particulars aren’t important — only the requirement that you invest the money largely and quickly but with just enough of a lag to make you feel (notice word choice) really smart if the market takes a 20% dump while you are doing it (a 20% increase is statistically more likely).

——————–

The problem is with trend identification. It is only, ever obvious after the fact. In statistical models — a lot of technical analysis is really “art” and “gut” not numbers — the probability is rarely above 50%. This means we will see trends that aren’t statistically meaningful in real time.

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VIX at 34-Month Low – Time to Sell and Go Away Before May?

VIX at 34-Month Low – Time to Sell and Go Away Before May?
The VIX is at a 34-month low and we are about to enter a seasonal weak spot. Before you decide to sell in May and go away, there are some redeeming studies that possibly could suggest higher prices, if …
Read more on ETFguide.com via Yahoo! Finance

Bombay HC seeks Sebi reply on MCX-SX petition
Mumbai, Apr 26 (PTI) The Bombay High Court today asked market regulator Sebi to file a reply by June 11 on MCX-SX’’s petition, challenging its rejection of the commodity bourse’’s plea to function as a full-fledged stock exchange.A bench of Justices Ranjana Desai and R G Ketkar, while adjourning the hearing to June 28, asked the Securities and Exchange board of India (Sebi) to file an affidavit …
Read more on PTI via Yahoo! India News

Wave59 Time and price patterns

Genius Features™: Automatic Pattern Matching Price, Time & Space Measurements Generate your own unique patterns Pattern matching has always been a powerful way to analyze a chart, in fact some of the worlds best traders use nothing else. No other charting program available has Wave59’s ability to scale charts properly, apply geometric shapes, and match time and price patterns. Wave59 will automatically find any price pattern on a chart and will also easily find subtle time and space patterns. Best of all, designing custom patterns is a snap.
Video Rating: 5 / 5

Could I become at least a millionaire by age 23 by trading options using a “Straddle” strategy every time?

Question by William M: Could I become at least a millionaire by age 23 by trading options using a “Straddle” strategy every time?
I am 17 now, will be 18 in 2 months, I’ve read about all the different investment vehicles there are to make money. Because I live in the UK, I could trade CFDs (Contracts for Differences), but they don’t float my boat now. I’ve read into options trading, bought books, read blogs and articles on the subject, and I’ve been exploring into the many various strategies you can use to invest with and Straddles catch my eye. Straddles are strategies where in which you purchase a Long Call & Long Put with the same strike price, in which before the option has any value, the price of the stock must go strongly up or down. What I’d like to know is if I started with, say, £500 and tradeed stocks using Straddles every time, but once I made enough money, branched out and diversified my investment just to avoid losing everything, could I in 5 years, from age 18 to age 23, or as an alternative, by age 27 become a millionaire, and is this possible and has anybody ever done it in this short of time?

Best answer:

Answer by Jaminio
Straddles and their out of the money cousins Strangles, only work with high volatility underlyings as you use these strategies when you believe that the underlying will move by a large amount, but you don’t know which way (or you would just take the directional trade). First off, to make any money you need for the underlying to move by more than the premium before you can break even.
The problem with high volatility stocks is that this volatility is price into the option (Vega) and the higher the volatility, the more the option costs.

To be put into perspective, your £500 would buy you two options. Because of high cost of bank balance sheets and high Vega on stocks at the moment the average in the money option is running at around 15% premium. So for you to make any money overall, one leg of the option needs to move by 30% before you even break even.

This is a type of hedging strategy so will never make large amounts of money that you are thinking of, what you should do is study one or two areas of the AIM market and then trade CFD’s.

Being very honest, anyone who becomes a millionaire is very good at what they do. So the chances of you becoming a millionaire in the next 10 years through trading is very, very slim unless you are good at it.

Good luck and happy hunting

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Forex Forecast Indicators and time series prediction systems.

Discover the Forex with reliable Forecast Indicators in the forecasting of foreign exchange currency.
Video Rating: 5 / 5

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Forex Scalping – Make a Quick Profit in a Short Time

Forex Scalping is one of the most popular ways of trading in the forex market, along with Swing Trading and Day trading. There are millions of traders who do only scalping. That is because…

1. A scalping trade normally lasts for only few minutes. So, you can open a trade, make quick little profit, and then close the trade immediately.

2. You have the potential of placing multiple trades a day. Since you are targeting only a few pips per trade, there are multiple times you can place a trade. Also, you can use the scalping techniques on multiple currency pairs.

There are some specialized scalping systems and software programs available, like Delphi Scalper and Forex Scalping Blueprint which make it even easier to make money. Still, you have to keep in mind that scalping can be risky also. The primary reason is…

Scalping is about making a small profit on each trade but, as per good trading principles, it requires some realistic stop loss value to protect against the scenario of a trade going in the opposite direction. So, the risk to reward ratio is not good.

Infact, there are certain trading systems that use the money management principle of only 10 pip profit for every 50 pips risked. So, imagine you have 4 profitable trades and 1 trade with a loss, which is an 80% success rate, still you would end up losing 10 pips after 5 such trades. Such scalping systems should never be traded in.

At the same time, you also need to consider your own trading psychology. Are you mentally ready for scalping? Do you have the attitude to make trades instantly or are you the kind of person who likes to take time to understand the market and also requires some time to make a trade? How fast is your broker in accepting trades? This is important since if the broker takes even 10-15 second to place a trade, the scalping opportunity in some cases may slip away.

This brings up the next point – that any scalping system or software should be highly accurate and should not have any ambiguity in telling you about when to open a trade and when to close a trade, since you do not have chance to second guess in scalping. If you are late, even by a minute, then the entire scalping opportunity may simply go away and the trade cannot be placed.

Also, the scalping software or system should have sound money management principles. What is the point of using a system that requires a 50 pip stop loss for a 10 pip profit? Such money management principles significantly hamper the trading account in the long run.

The final point to be considered when selecting a scalping software or system is that it should be very easy to understand and use, and there should be excellent customer support available to assist in case of any questions. This is extremely necessary since if the forex trader is not confident about the trading system or software, the trader may be putting his account at risk.

TradersCoach.com Launches Real Time Trading Software For NinjaTrader

San Diego, CA (PRWEB) June 11, 2007

TradersCoach.com, Inc. and NinjaTrader, LLC announce the availability of the ART® Trading Software for the industry-leading NinjaTrader platform. ART® Traders can execute trades in futures, forex and equity markets leveraging the power of NinjaTrader, a complete end-to-end trading platform that offers ultimate flexibility and choice in market data vendors and brokerages world-wide.

The Applied Reality Trading® entry and exit signals have been programmed into a robust software charting program for use with the NinjaTrader® platform. See the “Pyramid Trading Point®” and ART® Reversals appear in Real-Time on your charting platform using the ART® Trading Software.

All Times & Markets

The Applied Reality Trading® system works on all markets and all time frames. If you are an active day trader, position trader, or long-term investor who trades stocks, commodities, options, forex, currencies, or bonds, Applied Reality Trading® will work for you.

Reality Based Trading With Strict Risk control

The Applied Reality Trading® system also known as ART® trades the realities of the market while maintaining strict risk control. Applied Reality Trading® can be used for trend trading, scalping, counter-trend trading, or a combination of trading styles.

Trade With Less Stress

The ART® Trading Software is a trading “tool” that can help automate your trading, making it less stressful. With its “Cutting-Edge” features such as voice technology, it automatically identifies the ART® trading signals. Using NinjaTrader®, ART® users can analyze and execute their trades through hundreds of brokerages world-wide through one trading application.

Free Platform

The NinjaTrader® platform is free to use for advanced charting, analytics, system development and trade simulation.

About TradersCoach.com, Inc.

Founded in 1999 and incorporated in January, 2000, TradersCoach.com® is a company you can count on to deliver results. We pride ourselves as being a professional educational trading organization, trading system developer, and helping serious traders improve their trading skills. Created by Bennett McDowell, founder of TradersCoach.com®, the “Applied Reality Trading®” system is being used throughout the world by individual investors, traders, and institutions

About NinjaTrader, LLC

Founded in 2003, NinjaTrader, LLC (www.ninjatrader.com) has quickly emerged as a leading developer of high-performance trading software. The company’s flagship trading platform, NinjaTrader, is a FREE application for advanced charting, market analytics, system development and trade simulation. Discretionary, end-of-day and automated systems traders can trade futures, forex and equities through hundreds of supporting brokerages worldwide.

NinjaTrader, LLC sets the benchmark for trading software and continues to invest in new product development. Based in Denver, CO, NinjaTrader, LLC serves the global trading community with locations in Grand Rapids, MI, Amsterdam, The Netherlands and Bamberg, Germany.

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