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Day Trading Systems

Options Trading — Tue, 07 Feb 2012 15:11:32 +0000

Although some early day trading systems have lost their sheen since the beginning of the millenium other platforms and methods have sprung up in their place. New platforms designed with the ultimate short term trader in mind exist today based on the industry desire to satisfy clients with a desire for high liquidity and volume. Here we look at how three day trading systems work for today’s high turnover investors. Forex Trading Systems Among the biggest movers in the financial industry after the first explosion of day trading systems, forex trading continues to be popular. The expansion of retail trading platforms has made currency trading available to effectively anyone who wishes to give it a try, and many people have. The strengths of working the forex market include the high leverage available and wide variety of automated trading programs to use – including self designed expert advisor / automated trading systems. The downside is the high volatility and danger of margin calls made against highly leveraged positions. Further – leaders in “high interest rate income” currencies such Brazil’s real (amongst others) have grown wise to the impact of international forex investment in their currencies and the damage it can do [...]

Binary Options Trading on Forex Signals

Options Trading — Thu, 24 Mar 2011 12:31:29 +0000

Sponsored LinkBinary Options Forex Trading Alert: It’s been a while since we’ve seen this clear a chart on the forex trading side but it appears we’re looking at a strong open (risk on) in US markets. Yes we’ve had our QE2 run-up but for the first time in I don’t know how long we’re actually looking at a market based trading signal (as best I can tell) rather than a signal based on intervention. Maybe… just MAYBE the Central Banks will let the risk takers do their jobs today. Now if we can just avoid any more Middle East wars or natural disasters maybe we’ll start making money on a consistent basis binary options trading again. We’ll follow markets throughout the day and see where we end up. It’s looking big and green pre-open, I can tell you that. Forex Trading Confirming Movement Mid-Day Watched the risk on signal weaken slightly after the open, with money moving into CHF and EUR but the dollar and Yen remained mixed while the commodities currencies were also mixed. Was pleased to look in again a few minutes ago to see our old friendly pattern: strong commodities currencies with weak USD and JPY. Hello [...]

The Dangers of Forex Trading: Liquidity Risk Brazilian Real

Options Trading — Fri, 11 Mar 2011 18:30:34 +0000

One of the dangers of forex trading is liquidity risk. Today’s Brazilian Real announcement regarding the potential rule changes for foreign equity investments highlights one of the significant problems forex traders face: trading restrictions which result in illiquid investments. What Impact Will the Proposed New Forex Trading Rules in Brazil Have on Day Traders? In truth, it is likely that today’s announcement (a well placed news leak apparently) is nothing more than puffery from the Brazilian Central Bank aimed at stemming the rapid gains in the Real. The immediate impact on the forex rate relative to the US dollar was a small decline but long term the financial flows are going to continue into the country, putting upward pressure on the Brazilian cross with the US dollar. Previous Foreign Investment Restrictions Having Little Impact on Currency Appreciation Today’s leak probably isn’t much of a surprise to seasoned traders, as this latest threat on restricting foreign investment movements into the country is the latest in a series of moves the Brazilian Central Bank has made over the last year (+/-). Brazil is a country which relies heavily on exports to support its economy and as a result feels significant pressures when [...]

Binary Options Today

Options Trading — Thu, 02 Dec 2010 16:08:23 +0000

Binary options today are being affected by the turmoil in foreign currency markets. We write about that alot and of course today is no different. Here’s what we see in today’s opportunity to make money. Welcome Back Euro Crisis, We Missed You So the European Central Bank has basically just loaded up the printing press with reams of paper to make new euros and has opted to buy up debt from the distressed PIIGS nations. Taking a page from the QE2 playbook they’ve decided that in order for the union to survive they need to smash down credit default spreads on the periphery debt. Of course the market response will be to happily collect the profits from the push back on the CDS rates and wait a couple of days for the market to die down so they can attack the next sovereign debt victim. Will it be Spain next, or Ireland? or Portugal? Oh! I know! We haven’t heard from Greece in a while, maybe they’re next! Watching the Forex Trading Markets for Signs of Swings So the little guys like me treading in these dangerous waters watch as the pre-market action plays out in the US and then [...]

Currency Options Trading Strategies

Options Trading — Mon, 22 Nov 2010 19:05:32 +0000

Currency options trading strategies typically involve open ended risk which endangers large amounts of invested capital. There are other ways to take more manageable bite sized chunks of risk however. Here’s a couple of forex trading strategies you might explore to try to make money. Forex Binary Options Trading You may or may not be familiar with binary options. In short, these small investments (ranging from as little as $30 to $3000) yield 60% give or take a few percent on an hourly or daily basis. Trading with a forex binary options broker allows the investor to start with as little as $100 yet still earn 60-80% yields on these facinating short term trades. The pros of this sort of investment are the limited downside risk (only invested capital is risked), high yields, no transaction costs, and micro-sized investments. Lastly, in order to earn the maximum returns, the investor only has to be “in the money” by 1 pip. Try earning a 70% yield on straight currency options trading strategies with only a 1 pip gain. In a few words, “Ain’t Happenin’!” The cons of such an investment are the “all or nothing” nature of the trade (see our binary [...]

Forex Trading Signals Cold Open

Options Trading — Mon, 08 Nov 2010 14:18:06 +0000

Pre-open forex trading signals a cold open on Wall Street, much like the dreary weather outside. Although the market numbers point decidedly downward, the consistent Fed action over the last week suggests a different ending to today’s story. Forex Trading Fed (FedFX??) Gassing Asset Bubble I don’t know how else to say it other than the Fed’s behavior will extend the painful readjustment to a lower standard of living for Americans rather than simply taking our medicine and being done with it. This choice to extend and pretend fails to lean on the greatest strength of Americans – the ability to rebound quickly from adversity. Now instead of bouncing back, we’re taking a slow series of steps to try to make the medicine less painful to take. The end result will be the same – more Americans below the poverty line. Unfortunately for the rest of the world (given the size of our economy) a shaving or two in America’s standard of living is like a tsunami elsewhere. Emerging Markets Continue to Succeed Overseas emerging markets have seen a great deal of money poured into them, much in part due to the Fed making US assets pricey but also because [...]

Day Trading with QE2

Options Trading — Fri, 05 Nov 2010 13:28:45 +0000

So here we are day trading with QE2 day two, three days removed from the election and where has the market gone? UP UP UP. Is it just me or do the words of Henry Ford come to mind when thinking of the potential impact of QE2 on the stock market (sic): “You can have any market direction you choose, so long as you choose UP.” Obviously Mr. Ford was referring to his black only model-T Ford automobiles, but you get the gist of what I’m saying don’t you? Ways to Make Money Day Trading with QE2 I see a couple of potential ways to take advantage of the free money the Fed is printing for the banks. First and easiest is to just put my money into big stocks or index funds and simply float upward with the rising tide of free Fed money – but frankly that seems the slow way. Day Trading Options A second alternative would be to go long some options calls on those same market indexes however present pricing for traditional options are carrying a relatively high premium due to the volatility index. I think I’m going to wait on making any purchases of [...]

Forex Trading on Election Day

Options Trading — Tue, 02 Nov 2010 15:30:39 +0000

Seeing conservative forex trading patterns today with strength in the risk-off securities CHF, USD, and JPY. (for more information about how these forex trading pairs work, see forex-signals-trading.info). This does not bode well for stock markets, although they did start off in the green this morning either one pattern or the other must hold. Either US Stocks need to start falling today or the risk-off forex trading pattern must reverse. In my experience forex pairs make the rules, not the other way around. How US Elections May Be Shaping Forex Trading It is clearly evident that the market has been expecting major Republican pickups in the House and Senate, with the thinking being that Congress will go back to sleep for another 2 years and leave business to (at best) run amok as Republicans work to overturn everything done by the last Congress, or (at worst) see a flood of earmarks and special interests spending on businesses that donated to successful Republican political campaigns. Either way, markets are clearly expecting a financial windfall from these elections. Fed Action Today Clouding Picture The widely expected second round of Quantitative Easing has also been priced into the market, and should the Fed [...]

Make Money Day Trading

Options Trading — Fri, 01 Oct 2010 14:09:16 +0000

To make money day trading in this market requires being mindful that traditional pricing and valuation models are useless. Today we find ourselves in a global economic war, for lack of a better word. The growth rate of demand for goods and services has slowed, and the resulting change in supply and demand for (literally) demand is leaving everyone scrambling to drive down costs. No we’re not talking about costs on a micro-economic scale, we’re talking about entire countries devaluing their currencies to cheapen the cost of their outputs and labor inputs relative to their neighbors. The scramble is on, and to make money day trading off this inherent knowledge one need only pick the next domino to fall. Forex Trading Dominos Continue to Fall All the dominos (currencies) are going to fall eventually. To date the low debt currencies have performed reasonably well however they still supply goods to debtor nations. What happens when debtors find they can’t borrow or decide to do without? Yup, even the strong currencies have to follow to make their exports afordable. It’s a nasty death spiral we’re in. Have You Subscribed to Free Our E-Newsletter Yet? Get Trading Ideas Sent Right to Your [...]

Binary Options Trading Hot Puts on a Rising Market

Options Trading — Mon, 02 Aug 2010 13:27:02 +0000

Binary options trading of puts will be the hot play I figure if market activity holds form. The market / S&P 500 is poised to jump close to a percent and a half based on pre-opening activity; forex trading is showing risk positive pre-market. If recent trading history follows form the market will open basically at the pre-market levels then fall over like a rotten leaf somewhere around 10am. As per normal we’ll be following the forex trading markets for signs of the el-floppo towards risk negative. That will be the opportunity to buy the put side of the binary hedge and double trade we like to try to setup. The plan then is to leave that trade open until we see the risk on switch in the forex market again. With any luck two $200 trades will fall in the money and make $300 a day net profit. That is the idea after all. Stock Market and Currencies in Holding Pattern The stock market and the forex markets remain in a holding pattern established soon after the open this morning. Much like the Cold War detente of the 1980s nobody is blinking. We expected a significant distribution opportunity this [...]