Friday, September 12, 2008

Online Stock Trading

Online trading, or direct access equity trading (DAET), of financial instruments has became very popular in the last five years or so. Now almost all financial instruments are available to trade online including stocks, bonds, futures, options, ETFs, forex currencies and mutual funds. Online equity trading differs in many things from traditional trading practices and different strategies are needed for profiting from the market.

In traditional trading, stock trades are executed through a broker via phone or via any other communicating method. The broker assists the trader in the whole trading process; and collect and use information for making better trading decisions. In return of this service they charge commissions on traders, which is often very high. The whole process is usually very slow, taking hours to execute a single trade.
Long-term investors who do lesser number of trades are the main beneficiaries.

In online trading, stock trades are executed through an online trading platform (trading software) provided by the online broker. The broker, through their platform offers the trader access to market data, news, charts and alerts. Day traders who want real-time market data are provided level 1.5, level 2 or level 3 market access. All trading decisions are made by the trader himself with regard to the market
information he has. Often traders can trade more than one product, one market and/or one ECN with his single account and software. All trades are executed in (near) real-time. In return of their services online brokers charge trading commissions (which is often very low - discount commission schedules) and software usage fees.

Thursday, September 11, 2008

Forex - How to start

Market comment

Trading Basics

Trading Secrets Overload

There is so much Investment/Trading information on the Web - it seem everybody has the BIG SECRET TRADING STRATEGY - and they will share it with you for a few Dollars. A person can go broke just paying for courses, mentors, trading software, charts and that's before you even start.

Does any of it work more than 1/2 the time?

After 25 years in the markets, Forex and Equity, I have my favorite indicators which work for me. (TICK, Crossing SMA's, Bollinger Bands, etc.) But there is NO magic formula. I give new traders the basics, point them in the right direction, and let them figure out what combination works for them. The successful beginners, are hyper motivated, do extra research, have lots of questions.

The trick, I think, is identifying your style or trading personality as soon as possible and focusing only on the indicators and strategies that support that style.

Consistency in performance is the key to a career in Trading.

Wednesday, September 10, 2008


In my stock trading career I have been fortunate to have worked with some of the best. Having seen what they do and from my own experience I have compiled a “BEST OF BREED” for the most useful, informative, and potentially lucrative sites in the world when it comes to Trading the Markets. Over the years in my quest for market knowledge and in an effort to futher develop my trading career, I have paid thousandsfor many courses & studied innumerable books, relating to trading for a living including Technical analysis,Candlestick charting, psychology of trading, etc. and ranging from the beginners level to advanced arbitrage modeling. It can take years and does take thousands of dollars, buying and reading books, taking courses and going to seminars to learn to trade for a living.

Tuesday, September 9, 2008

Start of a Trading Career

20 YEARS that was FAST

October 21, 1987
THE MARKET TURMOIL: A NEW ORDER OF TRADING; Officials Halt Trading In Several Futures Pits
LEAD: In an unprecedented move, exchange officials temporarily halted trading today in several of Chicago's financial futures pits because large numbers of the stocks underlying the indexes had stopped trading on the New York Stock Exchange.
In an unprecedented move, exchange officials temporarily halted trading today in several of Chicago's financial futures pits because large numbers of the stocks underlying the indexes had stopped trading on the New York Stock Exchange.
About 11:15 this morning, officials at the Chicago Mercantile Exchange and the Chicago Board Options Exchange announced to their members that trading would stop in the Standard & Poor's 500 futures contract, on the Merc, and both the S.&P. 100 and 500 options contracts, on the C.B.O.E., until a higher percentage of stocks underlying the indexes began trading again in New York.
Trading of futures and options was also suspended on the American Stock Exchange, the Pacific Exchange, the New York Futures Exchange and the Kansas City Board of Trade.
Stock index futures are contracts that represent a bundle of underlying stocks and they are bought or sold according to a person's hunch on which way the actual index will move. They thus enable investors to speculate on broad market climbs and hedge against market tumbles. Usually, futures prices swing more dramatically than the underlying stock prices because traders try to anticipate market swings.
''Futures prices often overshoot the market on the way up or down,'' said Eugene M. Lerner, a Northwestern University finance professor. That may help explain the heavy trading volume and violent price swings that shook Chicago's futures pits in the last two days. And as a ''shadow market'' to the stock exchanges, events in the futures market, including today's trading halts, are often determined by the New York Stock Exchange.
By 12:05 P.M., all three contracts on the Merc and the C.B.O.E. had resumed trading. ''The halt does not bode ill for the markets in general,'' said Alger B. Chapman, chairman of the Chicago Board Options Exchange. ''It's strictly a technical requirement, and indeed may take a little pressure off the market.'' After the halts, the stock market staged a rally, and the Dow Jones industrial average closed up by 102.27 points, to 1,841.01.
As the stock market reversed itself, stock index futures followed. By the time trading was halted, the S.&P. 500 futures contract was down roughly 40 points. By the close, the contract for December delivery closed up 14.75, compared with an 80.75 drop Monday. About 786,205 contracts were traded on the exchange, nearly 100,000 more than were traded Monday.

Access to the Markets

With improving technology and connectivity - Direct access to the equity markets is faster and more reliable then ever. For the quick, nimble and disciplined trader, this directly translates into more trade opportunities, faster entry/exits, better fills, lower execution costs, less risk and greater profits.

Stock Market Countdown

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