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General Trading Articles

 

Is It a Duck or is it a Lobster? by Sam Seiden

If it looks like a Duck, walks like a Duck, quacks like a Duck, smells like a Duck, it's probably not a Lobster. No matter what the leading research analyst on Ducks and Lobsters says. Even if someone wins a Nobel Prize because they have determined that a Duck is actually a Llama based on a sophisticated mathematical equation, it's still a duck. The bottom line, it's a Duck... READ MORE

 

The Cycle of 'It' Part III by Sam Seiden

I hope everyone had a fantastic Thanksgiving holiday. Thanksgiving, as we all know, is the one day of the year where we all reflect on what we are thankful for and the really important things in life, love and family. It is a day where most people really take time to understand how fortunate we all really are... READ MORE

 

The Bull Trap by Sam Seiden

The Polar Bear and the Seal... The Crocodile and the Wildebeest... The professional trader and the novice trader... What do these three relationships have in common? One is the hunter and the other is the hunted... Polar Bears are white just like the icy snowy areas of the world they live in... READ MORE

 

Where is the Stock Market Going? by Sam seiden

Once again it is time to take a look at the stock market from a larger perspective to see if we can figure out the near term and longer term future price direction. Forecasting a market's turning points and direction in advance is the single most important edge traders and investors can attain, if they can attain it... READ MORE

 

Reducing Risk with Automated Trading by Sam Seiden

When people talk about trading and risk, I find they often leave out one of the biggest risks to trading which is us and our emotions. The mental game of trading can easily end up being a trader's most significant risk or enemy... READ MORE

 

Ten Year Treasury Note Futures by Sam Seiden

One the many questions traders have once they have learned how to trade is, which market or markets should I trade? While there are many things to consider when making this decision, I wanted to share with you today a market that I consider to be one of my favorites, the Ten Year U.S. Treasury Note (TY) Futures... READ MORE

 

Why Bother With Bonds? by Sam Seiden

Recently, I began the task of building a new house. Initially, I thought you get some plans together, hire a contractor, and live happily ever after. Boy was I mistaken... It didn't take me long to realize I was on a journey in a world I knew little about... READ MORE

 

Price & Tme by Sam Seiden

One thing I have paid close attention to in my many years of writing articles is making sure I did not spend much time writing about concepts and strategies that everyone else writes and talks about. If I did, there would be no point in reading the article... READ MORE

 

Who Can You Trust? By Sam Seiden

When it comes to trading and investing, everyone desires to know where the market is going to turn, before it turns (market timing). The only way to successfully predict market turning points is to know where the real willing buyers and sellers are in a market... READ MORE

 

Read Between the Lines by Sam Seiden

Have you ever felt the need to be on guard when buying a car, major appliance, new home, or anything that involves a sales person? Or, have you ever had a career in sales which means spending weeks if not months in advanced training sessions where the entire goal of the training is how to convince someone that they should pay $1000 for something that is really worth $500? When you're the seller, it's almost like you're trained to speak in deceptive code... READ MORE

 

Have a Wall Street Mentality by Sam Seiden

Compare the average investor's returns around the world to the average Wall Street firm's returns. I think we would all agree that the average Wall Street firm is making the lion's share of the money, while the average investor is either losing, or not making much at all... READ MORE

 

I Don't use Indicators But If I Did... By Sam Seiden

With all the advances in technology, order execution, and strategy back-testing, it is easy to complicate the simplicity of markets. I began my career on the floor of the Chicago Mercantile Exchange handling institutional order flow in the currency markets. When your trading path begins with people, price, and order flow, how and why prices move in any market is not that difficult to figure out... READ MORE

 

What Does Uncertainty Look Like on a Price Chart? by Gabe Velazquez

Summer is typically the season where market participants have things other than trading on their minds. Even more so, this vacation season, as the cloud of uncertainty hovers over the market. This lack of interest has been manifested in the low trading volume the market has experienced over the past several months... READ MORE

 

The Benefits of Futures Trading by Sam Seiden

When it comes to trading different asset classes, I get more questions about the Futures markets than any other set of markets. This is because many people hear from others how great these markets are for short and long-term trading but know very little about them. In my opinion, these are the greatest trading markets in the world. They have many benefits that other asset classes don't and I will bullet those points for you here... READ MORE

 

Profit Margin, a Must for a Successful Trade by Sam Seiden

So often in the trading world, I hear people talk about where price is likely to turn next, where is the next key supply or demand level, where is the next big market move going to originate from, and so on. The question I hardly ever hear anyone asking is, "Where is the next big profit margin?" This is one of the most important, if not the most important, things to consider when speculating in markets... READ MORE

 

Trending Versus Counter Trending by Jessie Roberts
You will find that as you learn how to trade, it is not enough to be told something, read about it, and then experience it in the market. Taken cumulatively as an approach to learning, that still amounts to a series of brief impressions. To have a method or a trading plan truly hardwired into your head takes many, many impressions or, ideally, many months or even years of demo or live trading... READ MORE

Trending & Counter Trending Behaviour by Jessie Roberts
A trending market is one in which the directional bias is obvious and can be seen on the chart by a pattern of highs, lows, and closes moving in the same direction. A counter trending market is one in which there is no obvious direction other than sideways... READ MORE

Trading Tip - Buying Strength & Selling Weakness by Jessie Roberts
One of the most widely made mistakes by nonprofessional traders results from not understanding the concept of buying strength and selling weakness. Professional traders, in contrast, make a living by taking advantage of this concept... READ MORE

Trading Techniques - The Dow Theory by Jessie Roberts
Dow Theory is a trend-following school of thought named after Charles Dow, one of the original publishers of the Wall Street Journal, for his analysis of nineteenth-century market price action. The theory was refined by S. A. Nelson and William Hamilton and published by Robert Rhea in a book titled The Dow Theory in 1932. Hamilton's 1922 book The Stock Market Barometer is also a cornerstone of this theory... READ MORE

 

Trading the Appropriate Time Frame by Jessie Roberts
The thing to remember is that trading is about making money, yet somehow, particularly for beginners, that gets lost in the emotions and egos.
The way to stay focused on making money is to study your course material, then back test to the point where you recognize signals instantly regardless of background noise, and then demo trade until you are profitable... READ MORE

Discover the Position Or 'End-of-Day' Trading Style by Jessie Roberts
Position, or end-of-day, trading is fairly straightforward in that the trader is taking trade signals on the basis of price behavior on the daily charts. Once you've completed your trading plan and know what qualifies as a trade signal, the only time you will enter orders is just before the end of the trading day at 5 p.m. EST... READ MORE

The Markets Look Ahead, But What Happens When Logic and Common Sense Get Thrown Out of the Window? by Andy Richardson Is the recession over? A good friend who sadly lost quite a lot of money on the banks amongst other things and who has only shown a very passing interest in using stop loss orders...etc has recently started chatting more happily about his portfolio and has been topping up. I sincerely hope it works for him but I'd rather take this as a sign to start selling some positions and tightening stops... READ MORE

The Bear Market - What To Do When The FTSE is Diving by Andy Richardson
So the big question is this: what do you invest in when the bear market takes hold of the ftse? The obvious thing is, I'm afraid, to sell everything and hold a cash position. There are those who do spread-betting instead of share-dealing, and to them, it doesn't matter whether the trend is bull or bear: they can profit from both easily. They just need to know which is in command... READ MORE

The Hindenburg Omen.. Are you Trading Myths or Facts? By Steve Palmquist

The financial press is full of articles about the ‘Hindenburg Omen’ and how it indicates that the market is about to plunge. The Hindenburg Omen is a combination of new 52 week highs and lows, the NYSE’s 10 week moving average, and the McClellan Oscillator... READ MORE

The Proper Use of Indicators & Oscillators by Sam Seiden

When walking around an Online Trading Academy classroom during the trading portion of a Professional Trader class, I see the trading work–spaces of traders, the charts they are looking at and most importantly, what lines, circles, indicators, and oscillators are on those charts. This last part is most important because what you add to a raw price chart will likely strongly influence your trading decision... READ MORE

The Problem is Simple - No One Taught Us How to Make Money by David S Adams
As the country struggles during the current recession, there are countless ways to make money without huge start up costs. Of course, people need to mindful to steer clear of scammers and opportunists, but trading is one of the simplest way to begin your "Plan B" income strategy... READ MORE

Why Execute Trades on the Close of the Bar? by David S Adams
I am often invited to sit in on trading groups and observe what and how they trade. I generally don't jump in and start spouting advice or "you ought to do this", or, "you ought to do that." I am much more content to watch and learn, and answer any questions, to the best of my ability, anyone might have. To be honest, I often have a heck of a time figuring out how many of the groups trade, that is, what criteria are they using to time their entries and exits... READ MORE

Calendar Spreads - Using Time Decay to Your Advantage by Owen Trimball
Although Calendar Spreads are a more advanced option trading strategy, they are one of the least risky and potentially high profit option setups available. This makes them very popular... READ MORE

Government Intervention & Market Price by Sam Seiden

I started my career on the floor of the Chicago Mercantile Exchange facilitating institutional order flow. This means taking large buy and sell orders from banks, institutions, money managers, hedge funds, and more, paying close attention to market price, and then making sure those orders get executed and filled at the proper prices... READ MORE

Motion into Mass: An Example Trade by Sam Seiden

Before starting my career at the Chicago Mercantile Exchange, I did two things and really two things only. I played ice hockey and went to school where the focus of my studies was Biology and Genetics. I know what you're thinking, how boring... Well, I actually was and am still fascinated with the study of life so I really enjoyed those days... READ MORE

Why Proper Market Speculating is so Difficult for Most Poeple by Sam Seiden

Compare the average investor's returns around the world to the average Wall Street firm's returns. I think we would all agree that the average Wall Street firm is making the lion's share of the money, while the average investor is either losing or not making much at all. Next, think about what the average investor does in the markets, they "buy stock." ...READ MORE

The Power of Simple by Sam Seiden

Occam's Razor is a scientific principle that suggests the simplest answer is typically the right answer to a given question. This is truly a principle I have lived by and it has rewarded me handsomely. I am always fascinated with the origin of things and specifically, the simple thought process behind the idea. For example, have you ever wondered about the origin of numbers? ..READ MORE

The Check List by Sam Seiden

There are many aspects to short-term and longer term trading. Where to enter, where to place your protective stop loss order, where to take profits, trade duration, risk management, position sizing, trade management, and much more are key considerations when trading. In my humble opinion... READ MORE

Stock Market: 5 trading Tips for Success by Natalia Kobseva

There are lots of people who aspire to become profitable traders in today’s market environment. Many people who come to trade stocks, options, and other securities are attracted to the potential of making a lot of money but, often, aren’t aware of what it takes to be able to make money consistently, position yourself to make windfall profits, and all the while doing this while protecting your account from excessive and/or unnecessary losses... READ MORE

Rate of Return by Sam Seiden

Often, my articles talk about myth vs reality when it comes to trading, money, and markets. Today, I want to discuss a bigger picture issue many people lose sleep over. The issue is the amount of savings needed to live the lifestyle you choose to live today, tomorrow, and into retirement. The professionals and financial industry lead everyone to believe that they need a large savings amount or else retirement will not be fun and likely consist of moving in with in-laws... READ MORE

Europe... is Intervention Just delaying the Inevitable? by Simon Brown

Any intervention makes sense at the time. After all it is human nature to try and prevent an undesirable event taking place. Animal preservation for example, and don’t get me wrong, I am a conservationist by nature (no pun intended) but can you actually stop a species becoming extinct once the total numbers get to such a low level? Are we not just slowing down the process to an event that is inevitable? ...READ MORE

Do You Have What It Takes to Be a Trader? by Leroy Rushing
Whether you’re a doctor, a basketball or tennis player, a musician, or even a cowboy, knowledge and skills are going to determine your status in your
“community” of peers. The level of your knowledge and skills can either catapult you to world class status or usher you out the door; create increased
(or decreased) demand for your services or performances; provide opportunities to win awards and generate tons of money if you’re the best, or no
awards and little money if you’re not... READ MORE

Stop Market Orders: Ideas on Utilization by Gabe Velazquez

One of the most important sentences, in terms of its message, found in the Online Trading Academy curriculum goes as follows: "The only thing between you and financial ruin is the zealous use of stops." I'm not exactly sure who came up with this statement, but whoever it was, is spot on, to the point that this message should be taken as gospel by most traders (at least by those that seek a lengthy trading career)... READ MORE

News, Price, Supply and Demand by Sam Seiden

During the years that we are conditioned to buy low and sell high in most areas of life, we are almost always taught to take the opposite action with our investments either long-term or in short-term trading. Sam discusses how the way we are taught to buy stocks is completely opposite of how we are taught to buy and sell anything else, and shows how wrong this is in trading... READ MORE

Find the Fool! by Brandon Wendell

As traders, we need to look for the novice traders who are foolish in their ways of thinking - traders who hear a hot tip, listen to a broker who pushes some brokerage inventory or watch the top performer lists on their computers. This week Brandon shares a way to find when the uneducated investor enter the market, which will lead to successful trades for you... READ MORE

Advanced Trade Management by Giorgos Siligardos

The term “Trade Management” refers to methods and manipulations which can be followed before and after a trade has been made to ensure a protection from undesirable movements of the tradable and at the same time to guarantee that if the position finally proved to be right, the profit will compensate the risk taken... READ MORE

FTSE Fortunes - Where Do We Go From Here? by Simon Brown

The index of the UK’s 100 highest capitalised (market) listed companies, (representing over 80% of the total capitalisation of all the companies on The London Stock Exchange) has an interesting history, and with all the uncertainty not just in the UK economy but economies globally, we need to step back and look at the market from a distance; putting everything into perspective... READ MORE

What's a Good Time for You? by Gabe Velazquez

We can choose to trade all day long, however, knowing when to conserve our financial and mental capital is just as important. This week Gabe discusses the importance of why knowing what time of day to trade is good for you... READ MORE

Where is the Stock Market Going? by Sam Seiden

This week Sam takes a look back to a year ago to see where the markets are today, in comparison. With this information, he helps you understand where the market might be headed next... READ MORE

Get a Trading Buddy: Part III by Josip Causic

Although the plan initially was not to write three articles on this topic, Josip's email box told him that there were several issues that still needed to be addressed on this essential topic of trading buddies as well as other lessons that need to be learned on the road to becoming a Pro Trader... READ MORE

Back To Basics, Part 3: Entry Techniques by Sam Evans

Sam delivers his last installment of his Back to Basics series and highlights the next piece of the puzzle: Trade Entries... READ MORE

Patience Pays by Brendon Wendell

Brandon takes a look at an article he wrote three weeks ago where he showed a chart pattern that was occurring in the S&P 500 index. He shows you how being patient with the markets proved profitable... READ MORE

Patience and Probabilities, Part 2 by Sam Seiden

Sam discusses that if and when we find a low risk, high reward, and high probability opportunity, we take action. If we don't, we must have the patience to wait for it... READ MORE

Patience and Probabilities, Part 1 by Sam Seiden 

Sam explains why patience and probabilities go hand-in-hand in the world of trading. Patience is required to wait for price to reach key supply and demand levels before taking action, and with it comes high probabilities… READ MORE

A Bit About IF & THEN by Vadym Graifer

The idea of IF-THEN scenarios in trading is often misconstrued one. I often see it being interpreted in a sense of predicting stock's action. A trader trying to apply it in this sense tries to think in terms 'If a stock does this, it's going to do that"... READ MORE

As you Name the Boat, or What is Scalping - Part II by Vadym Graifer

First, some simple definitions. There is such thing as a leg of the movement. Price moves in stages, or legs - advance, pullback, advance (let's talk in terms of long position, simplicity sake). Each advance is a leg. Another important thing to define is pullback. For our practical purposes in the case, pullback is not a simple price decline. It's important to make a distinction between meaningful price retreat and noize. We will go deeper into that when in the future we discuss such thing as setup structure... READ MORE

As you Name the Boat, or What is Scalping - Part I by Vadym Graifer

There is this Russian cartoon named The Adventures of Captain Vrungel. The characters set out for a deep sea trip and name their boat Victory. As the boat pushes off, they marrily sing "As you name the boat, so shall it float". Two first letters immediately (and unknowingly for them) drop off turning Victory (in its Russian equivalent) into Disaster.. READ MORE

Paper Trading: Waste of Time or Valid Learning Method? by Vadym Graifer

Numerous discussions of paper trading, and its value as a learning tool, usually see participants divided into two camps. One claims total uselessness of paper trading, another vows never to start without it. The scoffing camp points out the obvious limitations of paper trading... READ MORE

Simplify Your Trading by Bill Procenzano

Back when John Belushi and Dan Aykroyd were regulars on Saturday Night Live, a younger and wilder Steve Martin frequently joined that outrageous cast during guest-appearances.  A relatively new face in comedy, Steve Martin fit in perfectly.  I remember some absolutely hilarious SNL moments from those days... READ MORE

The Automatic Way Forward by Simon Brown

Today’s markets pose significant challenges to those seeking trading profits; despite the volatility experienced over the last couple of years. In contrast, markets of 20 years ago held a plethora of trading opportunities, often obtainable from trading just one product or even one stock... READ MORE

Now That the Market Looks Good (Technically), is it Time to Turn Cautious? by Gabe Valazquez  

Gabe looks at the preponderance of evidence in the charts and shows how things are pointing to limited upside for the market in the intermediate term time frame, and why he thinks it may be a good time to be cautious… READ MORE

Eighty Percent Waiting - Twenty Percent Trading by Gabe Valazquez 

Frequently, traders say that if they're not actively trading, they can't make money. Gabe discusses that a lot of times; more activity does not translate into more profits… READ MORE

Get a Trading Buddy: Part II by Josip Causic

In a continuation to Josip's article from two weeks ago, he discusses some of the ins and outs of finding and keeping Trading Buddies as an answer to a student email... READ MORE

Position Sizing Can Limit Trading Losses by Jimmy Cox

Many seasoned traders know that position sizing or determining the size of each trade is a vital part of any trading plan. Many beginner traders however make the mistake of not paying adequate attention to this step... READ MORE

Scalping with the Affinity Trading Group by Ben Tippen

The basics: First what is scalping?  Well scalping is a word that is thrown around a lot when you hear day traders talk but really scalping is a particular style of trading.  It is a style that involves a high frequency of order tickets with a profit target of only a few cents.  The profit comes from the size of the orders... READ MORE

What is Involved in Peak Performance Trading? by Van K. Tharp

There is so much involved in developing peak performance, that I recommend that all traders have a business plan… READ MORE

How to Protect Yourself In a Super Bear Market by Van K. Tharp

If you’ve read my book, Safe Strategies for Financial Freedom, you should understand that we are still at the early stages of what could be a Super Bear Market.  That bear market started in 2000 and will probably end sometime between 2015 and 2020.  And while it’s difficult to predict what the market will do in a year, we can predict that if you have a long stock position that you just hold, you’ll lose much of those assets by the time this bear is finished with you… READ MORE

Support and Resistance by Joe Ross

One week ago I received a couple of emails questioning whether or not I believe in support and resistance. In fact, one subscriber said if I didn't believe in support and resistance, then I couldn't possibly believe in trend! Why? Because in all cases the situation ends... READ MORE

Can seasonal transitions help a trader? by Joe Ross

Yes! Seasonal transitions create workable Spread strategies. I'll let my friend Jerry Toepke, an expert in seasonal fundamentals, answer. Jerry!.. READ MORE

How Important is it to be Creative in Your Trading? by Joe Ross 

I’m not sure I can describe it in terms of importance. The creative process is somewhat of a mystery, even to scientists who study it. There are a few common characteristics that all creative persons possess (such as an openness to a variety of internal and external experiences and a driving need to express one's sense of individualism), but for the most part, exactly how the creative mind makes earthshaking discoveries is unknown... READ MORE

Crackin Under pressure by Joe Ross

Sometimes I get some really strange questions in the mail. The one that follows is one of them. Although I try to be like "Rambo" when I trade, I haven't in actuality fully achieved "Rambo's" degree of "coolness." ..READ MORE

21st Centuary of Traders Data: The 'Disaggregated COT report' by Floyd Upperman

The first Commitments of Traders (“COT”) report was published back in 1962 and antecedents of the report can be traced all the way back to 1924.  Since its inception, the COT report has gone through numerous changes and improvements over the years... READ MORE

What makes a good trader? by Alan Rich

I think a good trader needs a trading plan that’s thought out in advance of taking a trade.  Then they need the strength of character to wait for the right circumstances to take the trade and carry it out without a second thought... READ MORE

The Traits of a Profitable Trader by Alan Rich

The Novice Trader: 

1. They tend to follow the crowd. • Watch what others are doing •  Find comfort in numbers
2. They avoid taking risk unless others are sharing the risk as well.
3. They feel that if others are buying then it is "ok" for them to buy, too... READ MORE

Learn From a Trader Not a Book by Alan Rich

Whilst many might start with a book first of all its worth remembering that to get good one needs to get some practical help from a trader with experience. When I first started I ended up trading in a way that my company wished me to trade. It benefited them more than me. An average trader at our company would make $48,000 month profits and pay $24,000 in commissions... READ MORE

Support and Resistance by David Waring

In this lesson we are going to look at something which is known as support and resistance and what these levels tell us about potential future market moves. As many of you already know, just as anything where market forces are at play, the price of a financial instrument in the stock, futures or forex markets is ultimately determined by supply and demand. Very simply, if demand is increasing in relation to supply then price will rise, and if demand is decreasing in relation to supply then price will fall... READ MORE

Multi Time Frame Analysis by David Waring

No matter what time frame you end up using when trading the stock, futures or forex market or what time frame a particular trading strategy calls for, it is important always to have a big picture overview of what is happening in the market... READ MORE

Forex, Futures and Stock Price Charts by David Waring

The tool of the technician when analyzing the forex, futures, or stock markets is the price chart. Very simply a price chart is a chart showing the movement of the price of a financial instrument over a chosen time... READ MORE

Dow Theory II by David Waring

Tenet four of Dow Theory is that The Averages Must Confirm Each Other. The averages must confirm each other. Here Dow was referring to the Dow Jones Transportation Index and the Dow Jones Industrial Average. To understand this point it is important to remember that in Dow’s time the growth in the US was coming mainly from the Industrial sector... READ MORE

Dow Theory by David Warning

Most consider the father of technical analysis to be Charles Dow, the founder of Dow Jones and Company which publishes the Wall Street Journal. Around 1900 he wrote a series of papers which looked at the way prices of the Dow Jones Industrial Average and the Dow Jones Transportation Index moved. After analyzing the Indexes he outlined his belief that markets tend to move in similar ways over time. These papers, which were expanded on by other traders in the years that followed, became known as “Dow Theory”... READ MORE

How to Place an Order with your Commodity Broker by Carley Garner

Before calling your broker you should have a good idea of what you would like to do.  Naturally, if you are paying for her service you will be able to ask questions and request opinions in regards to the strategy and market speculation... READ MORE

Jim Wyckoff's Top 10 Trading Rules

A "Trading Checklist" of prioritized criteria not only will help you decide when to execute a trade, but will also help you identify potential winning trades… READ MORE

Sharpening Your Trading Skills: The Top 10 Trading Mistakes

Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it's not any specific trading methodologies that make traders successful, but instead it's the overall rules to which those traders strictly adhere that keep them "in the game" long enough to achieve success … READ MORE

Silent Traders by Simon brown

Walking through the streets of London EC3 you may notice a growing presence of 30 somethings. Not pinstriped brokers or chino clad merchant bankers frequenting the coffee houses on dress down day, but designer jeaned young men sporting trainers and five o’clock shadows. ‘Builders’ I can here you muttering – no, they are a growing breed of trading professionals known as arcade traders... READ MORE

What you need to Know about Choosing a Broker by Carley Garner

Aside from charting tools and market research, there are two important but often overlooked decisions for a trader to make; choosing a brokerage firm and a specific broker.  Each of these decisions are capable in having a profound impact in your overall trading results and you owe it to yourself to take the time to make an educated judgment... READ MORE