Article Archive For
JUN2009
-
At The Close by L.A. Little
ARTICLE SYNOPSIS ...At The Close by L.A. Little
The name of Charles Ponzi, the Boston financier and swindler, has come to symbolize the idea of fraudulent investment operations where investors are paid handsome returns by subsequent investors rather than from profits. This activity is known elsewhere as illegal pyramiding, but whatever the name, a Ponzi scheme is where the victim of the scheme is forever separated from his or her money by underhanded means. The victim's greed gets the best of them and the swindler takes advantage.
AVOID BEING A VICTIM. WALK AWAY.
With so many large-scale Ponzi schemes coming t...
AUTHOR: L.A. LittleDATE: JUN2009SUBJECT: At The Close
AUTHOR: Sylvain VervoortDATE: JUN2009SUBJECT: Trading Strategies
AUTHOR: Technical Analysis, Inc.DATE: JUN2009SUBJECT: Books For Traders
-
Developing My Trading Strategy by Leonardo Jafet
ARTICLE SYNOPSIS ...Developing My Trading Strategy by Leonardo Jafet
Are the risks and returns involved in a more active investment style compatible with your resources and financial goals? Here's a trading approach that can help answer your questions.
ntry in my mental trading journal, circa October 2008: The demise of buy & hope investing (and ensuing losses in my portfolio) is the nudge I need to finally consider developing a trading strategy in which I would have enough confidence to take some smarter risks. The first question I should ask myself is, "Are the risks and returns involved in a more active inv...
AUTHOR: Leonardo JafetDATE: JUN2009SUBJECT: Trading Techniques
-
Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
VOLATILITY RISK
A stock I like has been trending higher, and I was considering a credit spread expiring in May. However, the earnings report is due May 7 and I can't determine whether this volatility rush will negatively affect my position... any advice for me?
You are correct, knowing the earnings reporting date when trading individual stocks can be very important. In addition, there is often a volatility rush ahead of earnings. In other words, the implied volatility (IV) of the options will begin to move higher prior to the earnings release. Why?
The ...
AUTHOR: Tom GentileDATE: JUN2009SUBJECT: Explore Your Options
Forward Contracts Vs Spot Currency by Brian Twomey
AUTHOR: Brian TwomeyDATE: JUN2009SUBJECT: Forex Focus
-
Futures For You by Carley Garner
ARTICLE SYNOPSIS ...Futures For You by Carley Garner
CALCULATING
With Treasury futures at or near an all-time high, I would like to begin trading options on bond and note futures but I am having difficulty calculating profit, loss, and risk.
Figuring in Treasury options often causes confusion for two primary reasons. First, both options and futures in Treasuries are traded in fractions. Second, unlike other commodities and financial futures, bond and note options differ in the manner in which they are quoted from their futures contract counterparts. Before you can understand how to calculate Treasury options,...
AUTHOR: Carley GarnerDATE: JUN2009SUBJECT: Futures For You
-
Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
TRADING ON A MAC
Editor,
Do you ever provide Traders' Tips for Mac applications?
Dave Rich
Durango, CO
Our Traders' Tips section is made up by contributions from outside software developers (we don't write them ourselves). Currently, no Mac-based developers are contributing, but we could try extending an invitation to some of the companies mentioned in the April 2009 S&C article, "Trading On A Mac" by Wallace Wang. We previously have published Traders' Tips contributions from Linn Software for the Mac-based Investor/RT program.
Thanks for writing...
AUTHOR: Technical Analysis, Inc.DATE: JUN2009SUBJECT: Letters To S&C
-
Low-Risk Trades Using Cup-With-Handle by Dale Glaspie
ARTICLE SYNOPSIS ...Low-Risk Trades Using Cup-With-Handle by Dale Glaspie
Here's how a popular pattern can present trading opportunities in a bear market.
The year 2008 marked the beginning of one of the worst economic crises of our country's history. But just like all other economic crises, it too will come to an end, and when it does, those who have prepared will profit in a big way. How? Most stock traders have either traded or at least heard of the cup-with-handle formation. It has long been recognized as one of the most useful technical patterns, and I have been fascinated by the versatility it possesses f...
AUTHOR: Dale GlaspieDATE: JUN2009SUBJECT: Charting
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: JUN2009SUBJECT: Opening Position
-
Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
BREAKOUT/BREAKDOWN
I've been analyzing breakouts from consolidation and wanted to get your feedback about the viability of a strategy I was considering. I posted this on an Internet thread a while back and got no response, leading me to believe perhaps no one actually trades this way.
Yesterday, Pru started hitting the high ticker as it broke through the Hod and rallied to $22, where it then ranged between $21.75 and $21.99 for almost two hours before breaking through $22 and rapidly hitting $22.59 on the breakout.
When a stock consolidates midday and trades within a tig...
AUTHOR: Don BrightDATE: JUN2009SUBJECT: Don Bright
-
Short-Term Trend Trading by Russell Rhoads, CFA
ARTICLE SYNOPSIS ...Short-Term Trend Trading by Russell Rhoads, CFA
This basic system can be traded profitably
on a short-term basis.
Some of the most basic systems can be the most effective means of making money in the futures markets. In this article I will demonstrate one of the simple systems that can be traded successfully on a daily basis. There are no complex calculations to determine entry and exit points nor indicator crossovers to determine entry and exit points. If you can add two numbers and then divide them by 2, you can do the most difficult calculation involved in this system. All this system...
AUTHOR: Russell Rhoads, CFADATE: JUN2009SUBJECT: Daytrading
-
Trader, Know Thyself by Ray Johns
ARTICLE SYNOPSIS ...Trader, Know Thyself by Ray Johns
Want to become a successful trader? Then it's important to understand how your mind works.
by Ray Johns
IN trading, when something goes wrong and you lose money, nine times out of 10 it's nobody's fault but your own. Most of the time the breakdown occurs in how the trade is managed, since many trades do go into and out of the money during the course of their respective durations. Unless you just hit a bad trade that drops like a rock, there is at least (typically) some opportunity to take a profit along the way. In these cases, trade management is one of t...
AUTHOR: Ray JohnsDATE: JUN2009SUBJECT: Daytrading
Traders' Resorce: Data Services by Technical Analsysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: JUN2009SUBJECT: Traders' Resource
-
Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...All of this month's Traders' Tips are based on Sylvain Vervoort's article in this issue, "Average True Range Trailing Stops."
Code for MetaStock to implement Vervoort's average true range (ATR) stop method is already provided in Vervoort's article elsewhere in this issue. Additional code is presented here as contributed by various software developers.
Readers will find our Traders' Tips section in its entirety at the Stocks & Commodities website at www.Traders.com in the Traders' Tips area, from where the code can be copied and pasted into the appropriate program. In addition, the code fo...
AUTHOR: Technical Analysis, Inc.DATE: JUN2009SUBJECT: Traders' Tips
-
Two Traders, Two Methods by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Two Traders, Two Methods by Jayanthi Gopalakrishnan
The idea of daytrading has captured the attention of many market enthusiasts, but it's not an easy path to riches. It takes years to master, a tremendous amount of patience, and consistency in your results. But most important, each trader has a unique methodology that works for him or her. We interviewed Kevin Haygreen and Gavin Mok, both of whom came to daytrading and blogging about it from very different backgrounds, but they have in common a keen interest in the quick pace that the trading style affords. Britain-based Kevin Haygreen (not ...
AUTHOR: Jayanthi GopalakrishnanDATE: JUN2009SUBJECT: Interview
-
Websites For Traders: Crimsonmind.com by Jayanthi Gopalkrishnan
ARTICLE SYNOPSIS ...Websites For Traders: Crimsonmind.com by Jayanthi Gopalkrishnan
Unusual activity in the option markets can reveal a ton of information about the markets. Crimsonmind.com is one site that provides this type of information, along with other option-related data. There is a ton of information you can find on this site that will help you do some in-depth analysis of the option market and ultimately help you decide if you should open or close any positions.
FEATURES
When identifying unusual option activity, it is necessary to compare the put/call volume with the average daily volume. You may al...
AUTHOR: Jayanthi GopalakrishnanDATE: JUN2009SUBJECT: Websites
Working Money: Bottom-Fishing by John Devcic
AUTHOR: John DevcicDATE: JUN2009SUBJECT: Novice Traders' Notebook
Working Money: Preferred Stocks by John Devcic
AUTHOR: John DevcicDATE: JUN2009SUBJECT: Novice Traders' Notebook