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The Real Secret Of Forex Trading

December 14, 2009 — 1:30 am

When you surf online, you will see lots of people selling secrets. It is a fact, if they really found the secret of success of Forex trading; they will be busy trying to earn money to tell you about it! If you want to know the real secret of success of Forex, we will explain it here, and you will see how it can lead you to big profits Forex.

The fact that we will look at well-known and not the fact itself that is so important is its value. Let’s look at the facts and why is it so important to get on the path to commercial success.

In fact, 95% of all traders lose now, you probably knew that anyway, but consider this – 100 years ago 95% of traders lost and today this ratio is the same. Now this time we have seen technology advance and make our lives richer and more productive, but when trading in foreign currency, in spite of the PCs that are more powerful than the one that put man on the moon, the software, with awesome processing power of news and prices, delivered faster than ever before, the number of traders who are losing remained the same. So what can we learn from this?

Forex markets cannot be predicted and complex strategy, there is a greater chance of success than just a really simple system will always work better because they are more reliable, with fewer parameters to break.

Now consider that everyone can understand a simple strategy that can make money, but makes it a success relies on the “other” and the real secret of success with good thinking. Human nature has remained unchanged, and therefore the number of losers remains unchanged over time.

Thinking you need to win in Forex is different from many other professions, and if you want to win you have to stand alone and have confidence in what your doing and keep your emotions from your trading.
Traders want to be right all the time and think they can beat the market, so they are either constantly change systems, in which one to use them, do not perform or run losses, and this leads to disaster.

To trade successfully, you must keep your losses small and run your profits. You must accept you will lose from time to time and not look for perfection and stay on course with the discipline.

This secret Forex trading, it is obvious when you think about it and the good news – if you understand the above, you know you can win, and you know what you need to do to win. The secret of success of Forex trading is really easy.
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The Mindset Of Forex Market

November 30, 2009 — 5:31 am

The forex market can be a very dangerous place for those who are not acting with the proper mindset. Trading almost entirely psychological and how you think about the market is the most important factor in determining long-term success of trade. The purpose of a set of mind in fact, it is necessary for success in the Forex market. While many traders are beginning to thinking in the direction of the market, very few can maintain this way of thinking.

Difficulties in achieving the objective of thinking the market is that you can make a huge amount of damage to your trading account very quickly on the currency market. Traders have access to a huge amount of leverage in the foreign exchange market and use is extremely dangerous for those who trade with the wrong mentality of the market. How can the trader accomplish and maintain an objective thinking in an ever-changing and volatile arena of Forex Trading?

Right thinking the market begins not with trade money that you can not afford to lose. You should not be trading money that you might need to live or that someone in your family might need. This is the first step in operating from an objective point of view on the market. Not needing the money in your trading account, allows you to develop virtually any emotional attachment to any trade you enter, it is very important if you want to consistently make profits in the currency market.

Once we confirm that we did not use the money we need for any daily expenses then we can proceed to the next most important factor in achieving and maintaining proper thinking the market, are profitable and easily definable trading methodology. We need the edge in the market, definable and profitable edge is important, because he needed to base our trading plan. Wealth management is just as important, if not more, than your competitive advantage. However, you must first determine your trading method before you can develop a plan for managing capital.

Plan your money management scheme is the next step after you know what determines the edge of trade on the market. You need to sit down and map out how much you’re willing to risk every time the edge will appear on the market. Most traders can not support the goal of thinking risking more than 2% for every transaction. This, of course, is only a general rule, but in fact depends on the frequency of your trading if you only trade once a month than you could act objectively at the risk of 5% of your monthly trade. However, if you trade once a week or more than a general 2% max, you must be a risk if you want to give yourself a realistic shot at not trade based on emotions.

I can recommend a very good trading method that will provide you some solid strategies for finding the truly consistent edge in the market. Price Action Analysis is the best method I have found so far to trade in the currency market. Once I discovered and implemented specific actions installations prices in my trading, I was able to easily manage my money management techniques. This allowed me to remain calm and confident in each trade, thus achieving the goal of thinking the market. There are many ways to profit in the market, but you do at least one thing is for sure, you should think objectively about all of your market activities.
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Trading Forex The Right Way

November 27, 2009 — 11:03 am

You must have basic knowledge of the proper Forex, guidance and training to be successful in the currency. It is a fact that over 95% of people lose in this market due to lack of experience and skills. More profit, you need to know how to stop the losses in the Forex market.

This form of trading can be very profitable if you take time and are making efforts to learn the secrets of the craft. Once you have developed the necessary skills you will easily earn a stable income with minimal effort on your part to work normally.

If you want to avoid losing the original never make the mistake of direct trade with the money in the market to live with no prior experience. Most dealers provide you with a dummy account with which you can participate in trade without investing money. This gives a clear idea about the process and flow of online trading, and you’ll learn several aspects of Forex.

Try to learn not to go in line with your gut feeling when trading. You should never buy or sell, simply because your heart says so! Never open or close your position if you have any reason, and you get some reliable information to do so. Trading according to your emotions can be dangerous and can lead to huge lose.

Do not try to go against the market, but get along with the trends. In most cases, if it begins the trend to continue in the same direction for some time. You must learn to come and go in the period between such tendencies. Going against the market usually leads to losing.

It is a fact that there are more losers than winners in the Forex market. The problem most traders jump in the trade without proper knowledge and education. Most of these traders blindly on the recommendations submitted to them, brokers and intermediaries do not care about their investors, as a result of traders fall into the loser.

1. If you want to be successful in business Forex trading you need to understand the basics of this business. You need the right information and proper guidance and training. Formal education and training will enable you to gain the necessary skills and confidence. Discipline, confidence and patience are the most important traits to cultivate in you to be a successful trader.

2. Instead of trading currencies you should learn to trade in pairs. You need to understand the characteristics of the currency pairs you intend to trade. You should know how to calculate the risks associated with a particular currency pair and knew when to go long or short in this particular pair.

3. Most new traders make mistakes to be more ambitious and work in the wrong auction. You should be careful before entering into any trade. Never open a position if you have reliable information about trends in a particular currency, you are interested in.

4. If you’re new to the trade, the first trading practices, bogus account. Most brokers offer a dummy account, which you can trade without investing money
. This practice provides some experience and confidence, without taking any risk.

5. Find reliable resources and stick to them for advice. No need to consult with each trader.

6. Learn the basics of technical and fundamental analysis. You should be able to understand the terminology used in this business.

7. Learn to learn Charts Forex, most of the trading strategies is mainly based on the charts.
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The DanielCode Trading

November 26, 2009 — 7:48 am

The Danielcode is giving away a free webinar sequence shortly and will allow you to sign up at their website for free of charge to take advantage of the webinars. The series will cover the Forex, stock market, Futures Markets and more. This is a enormous chance to get a free trading webinar series. Simply go to this website, and locate the Trading Blog posting to take advantage of this free offer. Click here immediately for TheDanielCode.com

The DanielCode Reports reviews The Daniel Code Website who specializes in preferred Forex currency pairs, selected Futures, Equity Indices, Metals and Miscellaneous markets, serving traders worldwide.

The Daniel Code Website is set up so that you can easily locate each of our learning tools that will help guide you through the progression of learning how to trade the Daniel Code Proprietary Trade signals they call DC Daily Numbers (T.03 Indicator signals.

The Daniel Code came to life on the Internet in December 2008 but started existence in March 1995. Center of operations are Lake Taupo, New Zealand. They are a privately-held and independent.

The Daniel Code Website offers the following information:
oDanielcode News
oWhat is it?
oForex Model Account
oArticles
oTraining Videos
oPowerPoint Presentations
oFAQ
oMember Charts
oDC Trading Manual
oMember Documents
oForum
oTrading Reports
oMember Charts
oDC Trading Manual
oT.03 Indicator signals

There are original trading features just announced in the Danielcode (Sept 19) section of the site that are being added in the very near future that will transform how you now trade. In today’s high technology world, they are a traders first company. They believe that human communication is the most central form of communication. If you are having a problem or experiencing problems finding something, please feel free to speak to them. Above all, we here at www.trading-code-revealed.com want you to enjoy your visit to The Daniel Code and go away with a optimistic feeling that makes you want to come back regularly. If we can accomplish this, then we will have played a small part to help make your life easier. In return, you will have helped us maintain our position as the #1 internet site for providing information about the most profound trading tool known to mankind. The Daniel Code is thriving and our goal is that you be doing well. The Daniel Code DC Daily Numbers and enlightenment that goes with them are set up to help you make money early on in your forex trading experience.

Having an unconnected Danielcode Forum open to the community is an idea I have thought about for a long time. I want a place where both experienced Daniel Code Traders and all other interested traders who have not yet made the decision to trade The Daniel Code to be able to voice their thoughts about The Daniel Code in a safe, open environment.

My wish is that we will have clear, truthful information about the trading code that will supply my hundreds of readers with information that will then allow them to make skilled decisions about trading all the markets available at the Danielcode. We invite you to write about your experiences and impart your thoughts about TheDanielCode. If you only trade the Forex, please tell us about that. If, you trade all the markets selected within the Danielcode, then talk with us about that. Almost anything goes here! Many Daniel code traders use the Trade Navigator data and trading platform. We want to hear from you please about how that works for you. For instance, have you found that GMT is very important to your Forex trading? Is trading from the charts directly an advantage or are there troubles with that?

This Danielcode Forum is open to any and all thoughts, concerns and opinions. The most crucial concept that I want you all to understand about the Daniel Code website is that it is required that you be dubious. That is important, but on the other hand it is not OK for you to be foolish and simply walk away without a full and impartial research on your part. To have an uneducated opinion is not a good way to go through life.

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Simple Investing With Forex Signal

November 24, 2009 — 1:45 am

Taking the hands of the right sensitivity and signal on investing is important, especially when it comes to Forex signal. When you invest in something that you expect to make a great return on your investment right? But with Forex Trading all possible, you should always see a huge return on investment. With online trading, you can invest a little money and expect to see tremendous results. All you need to do a little study of global and local currency markets have a very small investment, computer, internet connection, and hard-working person and you will be well on your way to making some killer money.

Forex Online Trading will allow any investor to Stay abreast of any forex news, that will greatly affect the currency market. Forex Forex can be done now on the phone, as almost all phones today have an internet connection. The great thing about it is different from the stock market Forex Trading AKA foreign exchange is open 24 hours a day! Pretty soon you’ll be quitting your day job and protect your financial future retirement through Forex Online Trading. Forex trading has always been a time of large corporations and financial institutions. Now the forex market is gaining significant with a investors.

The forex market is the largest investment market and the wheel, and any other market, and is more than 2 billion dollars of currency traded daily! For this much money to be traded daily, the market must be doing something right! Your day to day trade the forex markets will vary depending on day, time, exchange rate, and the situation. Easy-Forex makes trading simple and very easy to use and understand. It turned out the average Joe into millionaires overnight. You can be that man, especially if you want to permanently work from home instead of your boring 9.5 days of work.

There are many sites out there on the Internet dedicated to giving you the latest news on the stock exchange Forex Forex and many training sites out there that will give you more feel like he is trading in the market, without risking the “real money”. You can create an account and use Forex strategy book for you to go to a simple but cost effective solution.

India’s Forex online trading is an important source and make up a huge percentage of the foreign exchange market. The market is around the world as the global and local levels. Forex in real time today is stable and one of the greatest ways ever revenue on the Internet. It is unfair that large multinational corporations and large financial institutions have done for decades, making huge sums of money and hide it from individual consumers. Now is your chance as an individual consumer to large amounts of money in this industry untapped. The best part about this industry is not regulated. There are no restrictions on the amount of money that you can do. Be prepared to go to great lengths after the regular system FOREX!
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What Are Futures

November 21, 2009 — 7:46 am

Commodity prices rise and fall and you can profit by speculating of future prices of these goods through an investment called Futures Trading. Commodities are basically the essential things that people use everyday.

What Commodities Can You Trade?

Originally, futures trading consisted only of a few farm commodities such as grains. Of course more commodities were added in at a later date. Now there are futures trading markets that trade in precious metals such as gold, silver and platinum. There is also a futures trading market for livestock and cattle as well as for energy products such as crude oil and natural gas. Also being added to the futures markets have been currencies, interest rates, foods like coffee and orange juice, along with industrially produced products such as lumber..

Don’t confuse futures trading with stock trading where you are investing in a part of a company. With futures, you don’t actually own anything. The idea here is that you speculate what the future may hold with regards to the prices of commodities that you will be trading. In other words, you speculate about what the prices of such goods will be in the future. To start with the process, you must invest a sufficient amount of capital that you will deposit with a brokerage firm. This way, the broker will be assured that you are able to pay for your losses in the event that your trade loses money.

What Are The Advantages of Futures Trading?

Futures trading has the advantage of being basically just a paper investment. Although futures trading involves certain commodities, the investor doesn’t have to worry about how to take care of the produce himself. Normally the only thing being bought and sold is only the futures contract and not the commodity itself. This makes it quite convenient since the investor doesn’t have to worry about where to store and keep the commodities being traded.

The leverage on your capitol that futures trading offers is also very attractive to investors. Sometimes traders can invest a little as 10% of a contracts value as a margin to begin trading futures. So futures contracts can be traded with a lesser investment for a larger valued contract.

Beginning traders should first try to establish that they can afford to trade such a contract Even if your margin is enough to enter into a contract, a trader needs to consider if they can afford the loss if a sizable move goes against them..

Just like any other form of investing, success with futures trading will depend on how much you know about the markets and the process of trading. Gaining knowledge in the future markets is absolutely essential if a trader wants to make a profit on their investment. Not only that, unknowledgeable traders are more likely to experience losses on their investment.

Obtain practical information in the sphere of forex investment – please study this webpage. The time has come when concise info is truly within your reach, use this possibility.

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Forex Trading – Don’t Do It The Wrong Way

November 18, 2009 — 10:15 pm

Starting career Forex trading is an exciting journey. Staggering financial problems, economic puzzles, rocking the profit potential of the sky and psychological effects – all gathered together in the same profession. As a new Forex traders need to recognize the universality of errors that can easily turn your Forex trading adventures in unnecessary, costly journey. What are the common mistakes traders make and how you can avoid them?

Here’s a summary of the slip-UPS every trader should avoid:

1. Risking Too Much

There is no way to get rich quick on the Forex market. You must be consistent and disciplined and not try to compare forex gambling. Every dollar you invest in Forex should be dollars you can not afford to lose the dollar, which will not leave you butt naked on the street. Every successful Forex trader defends the capital, and so instead of risking too much, and pray that he turned into a gold mine, it’s more important to focus on good methods of input and understanding of trends.

2. Overaction

Most new traders believe that to make huge profits, you have to trade all the time. It is important to understand that the forex market is volatile and changes its direction during the day. You can not expect good deals on every price movement. It is so easy to become dependent on the gains, which can lead to Sloppy trade. Depending on your trading style, the possibility of attacks came several times a day, and it’s your job to find out when it happens. After each victory, give yourself a timeout to make sure that you make the right decisions based on your trading plan and not to lure hungry to win again! Once you learn to ignore the market fluctuations, control their emotions and focus on the most profitable traffic, you become a consistent profitable trader.

3. Errors in Order Entry

There is some time in the life of every trader Forex, when he made a wrong entry of the order. Be clumsy fingers or lack of vigilance or wrong, embarrassing mistakes happen to all of us. To save a lot of stress, prevent heart attack and avoid losing money, take two extra seconds to check that everything is correct before you click!

4. Do not have a trading plan

I believe that every trader is unique and requires different approaches to determine when it comes to Forex trading. Just because other traders success in scalping, for example, it does not necessarily mean that it is suitable for you. It is your responsibility to find out what you trader. Are you an instant thinker, or, rather, an analytical? You are aggressive, or rather, the patient? Can you devote enough time to Forex or you plan to trade part time? What is your investment capital? Do you have a full understanding of the fundamental analysis? What is your psychological weakness? The sooner you find out who you are, the faster your trading plan will materialize and better forex you.

5. The loss is the end of the world!

There is no such thing as Forex trading system that runs on 100% of the time. You can get rich Crazy to be right only about 10% of the time. Kick perfection in his mind and opened for a larger image. The most important thing in the Forex market is a win / loss ratio. No matter how many times you win or loose, what really matters is how much money you get when you win and how much money you lose when you lose! Focus on monthly earnings, not on each individual transaction.

6. Ignoring Money Management

Money management is very important in the Forex market. The purpose of money management is to protect you from the risk of too much, and therefore increase your income in a stable, permanent basis. Without proper money management techniques, you can clean up your trading account within 5-10 clumsy bidding.

7. Ignoring the psychological problems

Psychology of the majority is a big part of foreign exchange trading. You must train yourself to control your emotions, deal with loss and understand that success does not depend on each transaction. Many traders keep a diary and record not only the trading results, but their feelings and emotions during trading hours. This can greatly help to analyze yourself and avoid, for example, excessive, trading places, greed, trade, its trade, etc.

8. Make complex indicators

Simplicity is the best way in the Forex market. You do not need to keep adding indicators or to speak with Emergency Plan for trade. Many of the figures only add to the chaos and unnecessary information. Try not to overdo it, the basic idea is to give performance hints on the direction of the trend, support / resistance levels and buying / selling pressure.

9. Trading News

Unfortunately, in most cases, even the simplest news releases are used as a tool to affect the investment psychology of the crowd. This, in a sense, is the manipulation used by governments and traders. Analysis of only the news can be quite problematic, since often the currency market, which seems very bullish indeed a secret may be a bear! It is almost impossible to predict how markets will react to the news. I personally saw markets falling more than 100 points in one second and the growth of 100 pips a backup for a couple of seconds more. It’s like playing Russian roulette!

10. Using too much Leverage

The beauty of Forex trading is the ability to use leverage or margin, but too much leverage can be extremely harmful. After a small trading account and make great trades using leverage may result in complete failure, when the market moves against your position, only a small swing.

11. Traders amount that you do not have

Most Forex brokers offer a demo account for practice. My personal advice is to trade a demo account with the amount of money that you really intend to invest. Typically, the practice expense comes with hundreds of thousands of dollars, so in order to really learn and understand the reality of trade in Forex, it is important to demo trade the sum of your actual capital. It does not make sense in practice, trade with thousands while you are planning to invest $ 500.

12. Switching strategies, such as gloves

You should not jump from one to a different strategy this time you feel a couple of losses. Your Forex strategy should not be discarded at the time of receipt of things Rocky. Each time the strategy should be optimized. Changing strategy from one to another will not make you a successful trader. Give him time; we consider the loss as an initial contribution for future victories.

13. Looking for shortcuts for learning about Forex

There is no shortcut – to learn. The most successful Forex traders know exactly what is happening in the currency market. You must read, learn, practice and analyze all the time in order to be aware and make a profit. Foreign Exchange Trading is a lifelong career. Since the FX market is a complex and very flexible, much training is needed in order to adobt to new changes and to become a qualified trader.

14. Ignoring the Stop Loss

Ignoring the stop loss no-no! You must have a clear entry / exit plan. Decide now, a lot of items you want to do what your loss limit, what are the reasons for entering the trade, in the first place. Sometimes you have a feeling that if you want some more of your good luck will turn around. No, this is a very bad idea. Stick to your plan and always set stop goals. There is no such thing as a “trade time of life.” If you miss one, there is always a set of new jobs right around the corner!

15. Deciding on the Forex broker too fast

Choosing a broker takes time – so be prepared for a long ride. There are hundreds of online Forex brokers today, and they are all attractive in some form or another. It is important to determine which broker is most suitable for you. Broker is good for one trader may not be the best choice for another. There are many factors to consider, including:
¨ trading platform (download, internet, MetaTrader 4, friendly, graphical, etc.)

¨ Ordinance (regulated brokers are usually more reliable)

¨ Features (news, daily analysis, mobile commerce, free seminars, prizes, etc.)

¨ technical and customer support (it is important to have all the contact information for the broker, including a phone number, online support and e-mail address. I also suggest testing for all methods of contact before you make a deposit with a broker – Don’t Forex broker representatives answer the phone? How respond quickly to broker-mail? now on site support and professional qualifications?)

¨ Conditions (always pass conditions you agree to the Forex Broker. You can find Nasty hidden costs or some loss-making trading conditions)
¨ spreads or fixed-price (lower the better, of course!)

¨ Free Demo Account to practice and get acquainted with the trading platform

¨ The minimum deposit requirement (how much you plan to invest?)

¨ (methods of payment (as you plan to make / remove? WireTransfer? Credit Card? Paypal? Moneybookers?)
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Futures Trading

September 25, 2009 — 7:09 am

Many small investors have lost their lifetime saving in the stock market crash of 2008. The first choice for many investors was and is the stock market. After getting their fingers burnt during the recent stock market crash, many small investors are looking for new avenues. Investors have many choices for investing their money today. Have you ever thought of futures trading? But futures trading is not for you if you are among those who take a look at their mutual funds portfolios only once a year. Risk and uncertainty goes hand and hand in money making opportunities.

YouTube Preview ImageYou will have to get out of the buy and hold investment mentality if you want to take on futures trading. Those who cant shake off the preconceived notions and discover to make money as the market rise and fall are not successful at futures trading. What it means that those who can embrace the inherent volatility of the world and the markets and use it as a wealth building tool are more successful at futures trading. Futures trading didn’t have global significance until the 1980 when companies and governments embraced futures trading as financial management tools for hedging although futures markets began in the United States in around 1850s. Futures trading belongs to the 21st century. 

Futures trading is done by most of the people like you and me who are interested in making money in the markets. Trading E-mini futures has become popular with many individual investors apart from professional traders and speculators who also trade other futures contracts. Buy low and sell high, is the basic premise in futures trading as it is in stock trading. You try to go long when the prices are low and go short when the prices are high.

You will like to know what is different in futures trading from stock trading. The fact that you can trade futures with leverage on either long or the short positions introduces an additional element of risk not present in the stock market. Leverage is a risky. Another major difference with stock trading is that there is no uptick rule in futures trading. Thus, it is as easy to sell short as it is to buy long. This means that you can easily enter into a position to capture a downward move in prices with no restriction.

How do you become good at futures trading? How do you manage to survive at futures trading even when you are not particularly good at it? The answer is simple. You should have the money and the ability to develop a trading plan that enables you to keep making money in the market long enough to capitalize your next big move. In nutshell, it means that you wont be able to trade futures if you dont have enough money. And you wont last long in the market if you dont have a good trading plan. The chances are your money will quickly disappear.

You must know this thing that only 5% of the futures traders succeed and 95% of the people trading futures lose money consistently. You need to have at least $25,000 in your account in order to start trading futures. However, $5,000 is the minimum with which you can start trading futures. When you start trading futures make sure that you understand the risks involved and that you go into trading futures contracts with realistic expectations. You can take advantage of the managed futures accounts if you are not sure how to handle the risk involved in futures trading.

In short, you need money, patience, knowledge and technology to be able to trade futures contracts. Trading futures contracts is truly a hybrid that uses both fundamental and technical analysis. You need to know the futures contract specifications.  There are seasonal tendencies in the markets that you need to be aware of. The fundamental side of futures trading involves getting to know the industry in which you are making trades. You should also know the important reports that usually affect the industry in which you are planning to trade futures contracts. You need to keep an eye on the release of those reports.

The technical side of futures trading tells you what the market will do in response to the fundamentals. You will need to develop your own trading style whether it is momentum trading, scalping or swing trading. Once you know your trading goals, establish a trading plan for getting there. Dont try to conquer every type of analysis at once. Instead, focus on mastering one item at a time”maybe concentrating only on chart patterns such as bull and bear flags, for instance. Today individuals trading futures are on a level playing filed with professional traders and institutional investors. Technological advances especially the internet has transformed the futures trading landscape.

YouTube Preview ImageE-mini products have been created specifically to appeal to the individual investors and are now standard among exchange offerings. Now most futures contracts are electronically traded with online order entry and execution. Futures contracts are highly leveraged and marked to the market daily. Leverage is beautiful when it works in your favor. However, it is dangerous and has a dark side. You will only come to know about it when you are caught on the wrong side of the market with highly leveraged positions. There are many ways that individuals can use futures for trading and portfolio diversification. Futures industry is well regulated and has superior financial safeguards in place to ensure trading integrity.

Good services and basic materials will probably undergo major price swings, up and down during the next two to three decades. The volatility of the markets is only going to increase. The chances for sustainable trend that last for decades like that happened in the stock markets during the 1980s and 1990s are less likely.

YouTube Preview ImageThe past investors could afford the luxury of buying and holding stocks and mutual funds for the long term (this is what Warren Buffet did in building his fortune). The todays world calls for a more active and even speculative investor. The new world calls for a trader and futures trading offer one of the best opportunities to make money by trading in volatile times. However, to change from a couch potato to a futures trader, you will have to work at it or you will be out of the game very quickly. Trading future contracts is a risky business and requires active participation. You need to know the futures market intimately. A winning futures trading plan can help you achieve success!

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Dow Futures Never Lose Trade Secret

— 6:29 am

Know the Dow Futures never lose trade secret! Something fantastic happens to the Dow Jones Index that will make you rich. If you learn this one hidden Dow Futures secret which is repeated for years, you will make incredible profits. Forget indicators and futures trading guides,  all you need is to know the secret and the exact trading algorithm. Every day Dow Futures begin trading on Chicago Board of Trade (CBOT) at exactly 8:20 AM EST. New York Stock Exchange (NYSE) opens at 9:30 AM EST. This one hour and ten minutes of Dow futures trading before the trading of stocks at NYSE usually provides financial managers, professional traders and financial reporters good idea of the market sentiment for the day. Dow Futures began trading at CBOT in 1997.

The transaction costs in index futures are significantly cheaper than with stocks. And even as cheap as ETFs are as an investment, futures like Dow futures-the e-mini stock index futures are even cheaper. Just multiply the value of the Dow Jones Industrial Average (DJIA) with $10 in order to find the market value of the Dow Futures. Suppose the DJIA is at 7500 points, a single Dow Futures contract will have a value of ($10) (7500) = $75,000. In other words, the value of the Dow Futures contract increases/decreases by $10 for every point increase/decrease in the DJIA.

Futures traders can use this in build leverage of 10 in their benefit by going long or short in anticipation of a major move in DJIA. So if a futures trader believes that the NY stock market is going to rally huge, he can take long position in Dow Futures and make a huge profit in case his optimism turns out to be true.

The CBOT began trading on its electronic platform in April 2002; a mini sized Dow Futures contract valued at $5 times the average. It has grown quickly in popularity, although the mini sized Dow futures contract hasnt matched the popularity of the CME E-min stock index contract like the E-mini S&P 500 Futures contract.

The Dow Index was first published in 1896 comprising 12 smokestack companies. DJIA grew to encompass 30 large industrial companies and became a popular business barometer. DJIA accounts for about 20% of the market value of all US equities. Dow Jones Industrial Average (DJIA) is an index of 30 largest and most liquid blue chip stocks traded on the New York Stock Exchange (NYSE). The average is maintained by the editors of the Wall Street Journal. Unlike the S&P 500, DJIA is a price weighted index.

Movement in the DJIA is sensitive to the news surrounding the 30 companies represented in the index particularly that with the highest prices as Dow is a price weighted index. Today DJIA is the most widely quoted market indicator in newspapers, radio, television and electronic media around the world.

Most countries with a vibrant stock market also have a futures contract on a stock index that represents that economy. Its not surprising that some of the most popular futures contracts are related to equity markets.  Stock-index futures are an integral part of the stock markets daily activity. Currently more than 70 stock-index futures contracts are traded on at least 20 exchanges around the world.

For example futures contracts are available on the Dow Jones Industrial Average (DJIA) as well as the broader Standard & Poor (S&P) 500 Index and the technology oriented NASDAQ-100 index known as Dow Futures, S&P 500 Futures and NADAQ-100 Futures and many other indexes in US. There are now many ETFs available also based on most of these indexes.

Similarly Hong Kong has Hang Seng Futures Contract on its famous Hang Seng Stock Index, France has CAC 40 futures contract on its CAC-40 stock index and United Kingdom (UK) has FTSE-100 futures contract on its famous FTSE-100 stock index, and Dow Jones Euro STOXX 50 covers selected stocks in the euro economy. DAX is another important stock index that ives a good measure of the German economy.

As a percentage of the total number of futures contracts traded, stock-index futures are by far the largest category of futures contracts traded. That dominance clearly speaks of the major role that stock-index futures play in risk management for the entire stock market. Stock index futures like the Dow Futures are traded for speculation as well as hedging purposes.

Stock index futures like the Dow futures are a better option than trading individual stocks. There are other advantages of trading stock index futures like the Dow Futures. Some of these advantages are gains in the futures markets are taxed at a lower rate than the stock market capital gains.

Globex is a 24 hour electronic trading system for a wide variety of futures contract. If something happens on the stock market overnight when it is closed and you want to hedge your risk, you can trade Dow Futures on Globex. Many futures brokerages offer lower commission rates as compared to stocks. When you trade stock index futures like the Dow Futures, you are betting on the direction of the contract value, in this case DJIA and not on the individual stocks that make up the index.

When you are trading index futures, you are blocking out a good deal of the noise that is often associated with the daily gyrations in the prices of the individual stocks. In trading stock index futures like the Dow Futures, you focus on the value and the general trend of the 30 blue chip stocks as a group when you trade the Dow Futures. Similarly when you trade S&P 500 futures contract, you are focusing on the 500 stocks included in the S&P 500 index as a group not as individual stocks.

Stock index futures like the Dow Futures are guaranteed to move in response to the economic indicators. You can simply speculate with the futures contract like the Dow Futures just by using technical and fundamental analysis. You can setup positions with both futures and options as you wait for the news to hit the wire.

Any information that moves the stock indexes can be used to make profit by investing in stock index futures. Stock indexes move when economic news of fundamental nature is released. For the past many years, the monthly NFP employment report which is issued the first Friday of every month at 8:30 AM EST has been an excellent mover for stock index futures like the Dow Futures.

You just need to find one or two stock index futures with which you’re comfortable -the ones that enable you to implement your strategies. You don’t need to trade every major index futures contract in the world to be successful. Just focus on one stock index futures contract and become its specialist or expert. You can become a successful futures trader in sometime with this approach.

The better off you are, the more you know about a particular type of a contract. So the best way to trade futures contracts is to become a specialist in one type of the contract like the Dow Futures or the S&P 500 Futures or NASDAQ-100 Futures.

YouTube Preview ImageYou can use your knowledge of technical analysis to figure out how many days the Dow Futures contract tends to spend rising or falling using Bollinger Bands or Moving Averages. You can get an idea when the Dow Futures contract is likely to turn around. So by becoming a specialist in trading Dow Futures you can make a lot of profit daily for the daily movements in DJIA. This way you can become a Dow Futures swing trader. Every time profiting from a turn in the DJIA!

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