What Critical Skills Do Market Traders Need For Online Trading?

So you have tried to get involved in online trading and found it pretty difficult. Does this sound familiar to you?

Well if it does don’t feel alone as just about everybody thinks they can just jump in and trade only to find out that Rome was not built in a day. The thing that gets me is the amount of people who think they know all about trading who search around online for something better and then call it crap because it’s the same old hogwash. Well,well,well perhaps its the hogwash that you need to learn properly.

online trading

The Secret To Online Trading

Why does everybody think there is a magic wand waiting for them around the corner that will make them a better trader? The secret to this game is simple, either you can or you cannot but the principles will always remain the same, and nothing you can do or say will change it. The only part that is going to change is technology and the one thing that all market traders love is new technology as it tends to make life just that little bit easier sometimes. No I am not talking about automated online trading just simple technologies that make life a little easier.

online trading

I have seen a few people who consider themselves traders start having a bad time of it, this then begins to make them question themselves and soon they are off to buy a new course in trading only to find it’s the same old information they had in the first place. You will only confuse yourself doing this as you cannot keep on changing strategy when you are involved in online trading. Market traders tend to start with an initial learning course and then develop their own skills over time. Each successful individual tends to have his or her own favorite method that works for them. Every successful trader that I know has developed from the basics by talking to others on a regular basis and learning from their mistakes, not by taking new courses all the time. All of the stock market courses that I have come across are usually for beginners not for seasoned traders.

online trading

There are so many ways to make money online such as e commerce, marketing and trading and each one has it’s own individual skill but the lure of the stock market keeps it as one of the most popular. If you would like to make a passive income online aside from trading check out this guys free system HERE<< you will be amazed at how easy that is. Well…… it is a lot of work just like anything else but once it is set and running in the background it becomes so much easier, and hey it is great to have a passive income running in the background while you are working on the stocks.

online trading

I know a lot of traders that start out with Forex but I personally never recommend this as it is a very fast form of trading and involves a lot of skill to be successful. It is far easier to start with equity and move on up from there. While it is tempting to go for the big profit the pro’s can’t wait to get their hands on your cash. Yep that’s how it is you lose and somebody else wins. Oh and don’t get caught up in whats better, fundamental trading or technical trading. I always say choose what you are more comfortable with and then run with both in a kind of 60% – 40% way. So if you prefer technical trading base 60% of your decision on the technical s without ruling out the fundamentals at all. Looking at the other side of the coin has changed my trading decision many a time.

You still don’t know the secret do you?

Well it’s simple and it is the same as everything else in life…. Persistence. Play the long game and don’t expect it to all happen in one day it takes time. I have never seen an electrician or a mechanic learn his trade in one day. Let’s put it this way, would you trust a doctor that had one day or even one week of training? Probably not. Online trading is often taught in one day or one to two weeks. Scary when you think about it and if a young chap joins a trading house he is often put in the hot seat almost immediately. Still trust someone else with your money? Traders learn from other traders and that is as simple as it gets.

I hope you enjoyed the post and you are welcome to leave us comments they are always welcome. Join us on Facebook and stay in touch. I have added a great video from you tube about the wolf of wall street, I hope you enjoy it but take note it is not mine at all and we have nothing to do with any promotions found on this video.

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Live Trading Room Signals For The Serious Trader

I am pretty sure you would just love to be in a live trading room if you have not been inside one yet? Am I on the button?

Trading in currency of various countries is known as Forex trading. This is generally carried out through a legitimate licensed broker who is permitted to execute trades in the market of foreign exchange. Everyone is quite aware of the degree of risk attached with Forex trading, well almost everyone as it appears tempting to earn money by trading in Forex but the process is not that trouble-free. To earn profits calls for a meticulous understanding of the system of trading in Forex. Knowledge is also necessary to forecast the future trends of the currency. It is not always possible for individuals to demonstrate such skill and expertise to deal in Forex. This is where the need for trading signals is identified.

live trading room

What are Forex Signals in a live trading room?

A Forex signal means a trade that is recommended for a pair of currency. This recommendation is usually worked out by an analyst who is human or an automatic Forex robot. This recommendation is provided to the subscriber of the signal service. Owing to the nature of timing of the signals, the orders of trade are generally corresponded through website, RSS, tweet, SMS and email or through other methods that are fast. These live signals are provided on an instant basis to the traders trading in Forex. If you were in a live trading room you would receive recommendations from traders around you or from the robots in the system software, well this is pretty much the same deal.

Different Types of Forex Signals and the Way They Work

There are usually two chief types of signal providers for Forex. Among the two types the most common one, is the software Forex signal. This software cautions a trader to indulge in trading orders that are reliant on the program parameters. There are numerous different programs that are also recognized as “Forex Robots” which are widely accessible by traders. Differences in performance and price range in rates that climb up to thousands in terms of dollars. The second kind of Forex Signals are offered by traders who are professionals. These traders make the other traders aware by keeping a constant watch on the market. They recommend opportunities regarding trades that are supported by their understanding of the indicators of the market. Many signals just provide alerts for buy and sell transactions, but in the case of Live Forex signal, they provide accurate replication of the account of professional traders. This allows the trader to be in possession of similar profits and the protections that are offered by the signal trader. At Forex Signal Live both kinds of signals are provided. They offer signals from their employees of genuine Traders and whose experience ranges from 5 years to above 20 years in a live trading room. They replicate their trades and observe the similar return as they usually do from the market. Signals are also offered from their Forex Bots that interpret the market in actual time and search for various kinds of signals of trend to offer one with a possibility to witness exceptionally high returns. Being a good succesful trader, requires tapping into good trading chances as often as possible. One should take advantage of what works and keep on searching for more methods to spread one’s risk and earn the most profits.

If you would to have these signals in your trading you can visit this link here to add it all to your arsenal.  >>>LINK SIGNALS<<<

Thanks for reading the blog and I hope you enjoy the trading signals.

 

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How to choose a Forex signal service?

One of the most popular ways of trading is by following “signals”. If you’ve ever heard the term “Forex Signal” but wanted to know more about its pros and cons, and whether it is suitable for you or not, this article is for you. I am sure you will agree that there are just too many different methods and choosing the correct one just takes time. Time costs money!!

forex signal

What is a Forex signal service?

A Signal Service provides alerts on trading opportunities. For example, a professional trader sits at his desk, trading his account (or his company or hedge fund account). Whenever the trader enters the market, he also sends an alert to his subscribers, giving them the opportunity to enter the same trades as him. Some service also provide an automated robot, sometimes called a Trade Copier or a Trade Cloner. This robot will execute the same trade on the client’s account, so clients don’t need to actually go to their computer and execute the signals manually. Such a service is available at  “Vladimir’s Forex Signals & Mentoring”.

Why should I use a signal service?

Whether you a new or experienced trader, there are signal services out there that will contribute to your profits or set you on the right track to trading success.

For beginners: trading alone can be confusing and difficult. Like any other profession, you will not see success over night (despite what some brokers might try to lure you into believing…) So, on your first steps in this exciting but dangerous world, services such as Vladimir’s Forex Signals & Mentoring, can take you hand in hand to learn the way real professionals trade. Plus, you have a chance to copy the trades of a pro into your own account, so you start trading on the right foot.

A signal service is also suitable for people who do not have the time to sit all day in front of the computer, looking for trades. Being subscribed to a signal service means there’s a pro trader sitting and looking for trades on your behalf. Saves a lot of time and headaches, plus of course the results should be better, as you’re having a highly experienced professional working for you.

For veteran traders: it’s a real opportunity to hone your skills, and provide an additional source of profitable trades to diversify your “portfolio” of strategies. It is also an opportunity to join a community of like minded traders who communicate (through chat and live trading rooms) during the trading day, and help each other achieve better results.

What are the disadvantages and problems with signal services?

Here are the disadvantages and common issues with signal services, which require your attention and caution:

Hidden agendas: some brokers provide free signals. You’ve got to ask yourself why would someone offer free signals if they are serious and profitable. The answer in most cases is that they have a hidden motive – to push you to trade more. The equation is simple: the more signals they send you, the more trades you make, and the more commissions they earn. That’s why their main interested is sending as many signals as possible, not as good and profitable signals as possible. These kinds of freebie signals have made a bad name for the world of signals, but luckily there are a few rare paid signals providers who do a good job.

Time constraints: many signal services require you to be near a computer most of the day, so you can immediately enter the market whenever you get a signal. However, this issue has been overcome by using what’s called a “Trade Copier”, which is an automated robot that receives its trading commands directly from the signals service trader.

Good signals come from good traders: Unfortunately, the Forex industry is full of scams and dishonest vendors. Calling yourself a trader and providing signals is easy, but providing signals which actually provide profits is of course a different story. The statistics are that 95% of traders lose money in Forex. This applies to signal providers as well. So, your mission is to find one of those 5% of signal providers who actually make money in Forex.

Take Vladimir Ribakov for example. He’s been around the net for several years now, which means there’s a lot of feedback about him in forums and review websites. The feedback is decidedly positive so he’s the perfect example of a trustworthy trader to get signals from.

==> You Can Get His Signals Here Today <==

 

Thanks for reading the blog and I do hope this help you in your en devour to succeed in the world of trading.

 

Watch this video for fun…..

5 CREEPIEST Mysteries of SPACE that will FREAK YOU OUT

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Using An Automated Trading System

With markets becoming more and more volatile many a trader is using algorithmic automated trading systems to get them through. The big question is, are you losing out by not using these amazing systems. A system like this is generally used by the big boys and is far too expensive for the normal retail trader to get their hands on. Hmmmm or is it? Big surprise………. it is available and best of all it is FREE you don’t even have to pay a cent. So whats the catch you ask? Well,well lets go have a look and see.

automated trading

An Automated Trading System

I was never a fan of these systems and in fact I used to get downright angry at a computer beating me to the punch with my trading, but there is an old saying if you can’t beat them rather join them. I have done just that for you and I have a free automated trading platform for you that you can simply download and start using today.

 

FREE AUTOMATED TRADING PROGRAM

 

The markets are well due for a big correction and the question is in this volatility how on earth do you make any money. With markets going up one day and down the next you have to be really quick on the draw to stay ahead, so how do you do that? Well, how about with an advantage like an automated trading algorithm. Let the computers do the thinking for you. Does this mean you will be completely out of control? No it does not you can still take control when it is needed and lets be honest there are times when you do need to shut of the algorithms as even the big guys do this. The thing is when things are just running around on a day to day basis why not let the computer make you some easy money?

 

FREE AUTOMATED TRADING PROGRAM

 

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FREE AUTOMATED TRADING PROGRAM

 

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Here’s the link to the instructions again:

 

FREE AUTOMATED TRADING PROGRAM

 

 

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The Stock Market Is living On Borrowed Time

So, you are new to trading and perhaps only got involved in 2016, well then, we forgot to tell you the stock markets are living on borrowed time. The old traders have been trading long since 2008 for around 7 years now going on 8. Well, well markets have a nasty history of failing at around the 7 year mark, a bit like a lot of marriages only more reliable. Last time the big short was in place the banks scoffed and laughed at everyone but look what happened to them.

 

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Markets and borrowed time.

While we all sit around believing once again the the markets just cannot fail there are those of us who know the perils and have become careful over the years. As I sit and look at the technical s of trading and then start to add the fundamentals into the equation I can only rush to either get my money into cash or go short on anything I can find that looks expensive. This is not the first time that investors and traders alike have believed that markets are indomitable and the could not possibly fail again. This is a cycle that has been going on since day one and once again they are living on borrowed time as they have done time and time again.

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I am not a soothsayer nor can I predict the future any other way so lets be honest I am in exactly the same position as you but I do have history, technical ability and fundamentals on my side and just why take any type of bet when the odds are obviously against you as you look at the big sign in the sky that says borrowed time for the market.

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A 20 – 30% correction is due and the sooner it takes place the better as we can all get back to trading as per normal. While many have called this rally a new normal we have to bear in mind, “and the word bear is not a pun”, that every rally has been some kind of new normal. This is because every time markets fail we create some kind of new normal in the hopes of preventing it from happening again. Trouble is we cannot change anything as human nature will always take it too far and it will always need to correct itself. If you still believe it can’t happen then go back to the beginning of time and then look at all the corrections, you might just see a pattern.

stock trading

While it is time that we were surprised by the markets when it comes to corrections and it would be interesting to see it keep on going up, all the signs are telling us that this just cannot happen. Just too much of the clever money is sitting on the side lines waiting for that slide and a better opportunity to re enter the market. That said I have seen many a trader sitting on the sidelines for the last 3 years when they could have been invested and making money. All I am saying is if you are long be cautious and keep a tight stop loss on your long positions.

Thanks for reading the blog, and hey if you are by any chance interested in starting an online ecommerce business you can join us and find out everything you need to know on our sister site HERE<<  While I know you are busy trading this is something that has really made me a lot of money through the bad times and it keeps you busy when you are not trading. Have an incredible trading week.

 

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The Stock Market Is Making A Sequence Of Lower Highs

Here we are again watching the Stock Market, wait no in fact all the markets making a sequence of lower highs. Are we all blind and stupid or are we going to sit back and watch this happen all over again. As traders buy and buy and buy with no recourse I sit and watch in anticipation as I start adding short trades to the market. You might be wondering what a sequence of lower highs means or what it is and well I am going to explain it all in this post.

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Lower highs and the impact on the stock market.

The theory behind lower highs is taken from technical trading but let us be perfectly honest they are not the only thing telling us to be careful. Markets have been due for a good correction for a long time now but we keep thinking it has one last leg, and well…. it does. Yep every time without fail it goes up again, but wait it does not go up all the way, in fact it stops way short of where it finished last time and wait for it……. YES it creates a lower high on the stock market. This is a dangerous setup and while it could break through and shoot on up as it has done in previous years we must bear in mind how far into this bull market we are. This is a market that could drop at any second and more and more traders that I speak to are either in cash or short so who is propping the stock market up? Retail traders? Investors? Well I just don’t know but easy government money has propped them up for over 7 years now and we are way overdue for a correction.

stock trading

I wouldn’t say a correction would be a bad thing rather something the markets need as once it plays out the usual suspects will start buying again and everything will start to return to normality, if that is at all possible. I think we have all forgotten what normality is in the markets it has been so long. Some markets are showing the head and shoulders formations beginning to form and while this only plays out 50% of the time playing red or black on the roulette table also offers a 50% chance but you don’t have such a big warning as a head and shoulders to give you direction on your choices. I always say trade what you see, if you are wrong cut your losses but what you see normally has a good chance of playing out. If you are not a technical trader and you are thinking what a load of rubbish then you might prefer to look at the fundamental situation around you, perhaps you will agree then. Not much has changed since markets were struggling in January yet a feeling of euphoria and buying has hit the markets, on can only ask on what basis? Perhaps now is the time to be looking to buy some gold and hedge the portfolio.

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The bear always comes much quicker than the bull so I am starting to take precaution after my long bullish run. When long standing bulls start to turn into bears keep your eyes open. As I start to nibble at shorts on companies with extremely high evaluations and companies showing lower highs on the technical side I am comfortable in the knowledge that a good correction is coming soon. I know some traders and investors that have been sitting in cash for 2 years already and that tells me we are really starting to push our luck now as well as the edge. We don’t know when it will all end in tears but it will and it wont take much of a catalyst to change it all this time. I am not expecting a 2008 scenario but I am expecting a good 20 – 30% correction before long. So many are calling it in 2017…….. Ha it will come in 2016 when you least expect it. The stock market has been sucking traders in week after week in volatile times and just as you think the volatility has ended it falls again. Volatility is another sign of the end. Another warning sign on markets is the amount of double tops and even triple tops that have formed, Oh my and we are still buying in.

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The clever money is waiting for the stupid money to slip up, so don’t get involved in the mess simply clean up the profits on the sidelines. If there is a move to the upside now there is probably only one left and that will be that. If I am wrong these markets are going to break all records in time and money and generally the law of averages is against that. We have all become accustomed to a market that inherently just keeps moving up and that is very complacent while dangerous. If you are trading long trade lightly and watch close as the red comes faster than you think.

 

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What Market Direction Is This A Bear Market ?

While loads of traders and market experts are calling a bear market I just cant seem to determine direction at the moment. I would call this flat as the trend flies up and simply falls back down to the same level the next day. Consolidation seems to be the order of the day even though the trends are extremely volatile at the moment. Could oil be driving the markets all by itself? It is amazing to see that markets are tending to follow oil.

bear market

Will a bear market win over the bulls?

It is beginning to look like the bears are winning with so many shares losing huge chunks of value over the last year and struggling to get it back. That said I don’t think the bull market is over and it looks more like a consolidation than a change in direction. It is very possible that markets are waiting for valuations to catch up and it is very possible they will soon as a larger percentage of companies are doing well rather than struggling. In volatile times the best option is to buy into quality stock and hold on as the good value will always beat the bear market to the punch in the end.

I would say going short on the market at this point may be very risky as while it may seem like a crash is coming but it has looked like that for years. I have seen traders sitting in cash for 3 years now, and they would have lost out on huge movement in that period thinking it is a bear market. On the flip side if you are long and the market does turn sour it could hurt bad. The market is developing a huge top formation but that can also be a continuation pattern so don’t get too excited if you are bearish. We have seen it all before and it would seem many of us are simply looking at the fact the bull market has lasted for 7 years. Have we not learned yet that nothing stays the same.

bear market

One can only marvel at the soothsayers out there calling positions as it looks more like a kid jumping on a trampoline than a trending chart. If you are calling trades at the moment you are calling them on an extremely short term basis. In fact you are probably day trading and in my experience day trading is not an easy art especially for someone new to trading. So am I a bull or a bear? Well…..neither I prefer to trade in both directions depending on what the information is telling me but then I also prefer to position trade over a 28 day period so it can be pretty nerve wracking watching the volatility in between. Unfortunately stop losses have had to be widened due to the extent of the recent movements and that is never good when it goes pear shaped. The risk to reward ratio is narrowed as the loss percentage can only increase. On the flip side you can also catch quicker profits as the volatility moves in both directions. You might also find that if you are out of a trade waiting to get back in that the speed the market moves at now will cause you to miss the trade.

So if you have found your trading to be a little difficult at this time you don’t have to feel alone as most traders that I know have been having a tough time lately and looks like it may take some time before it improves to the point of normality. The only thing to do is to stick to the original plan and wade through the madness as well as trying to put the volatility to good use because believe me when it is gone you will most likely be crying for it to come back again as markets stand still. Traders will never be satisfied until they make easy money and hey….. who said it’s easy.

Thanks for reading the blog and I hope you enjoy a great trading week, so till next week…….

 

 

 

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The Stock Market Is Rocking!!

Been away for a short while as I was moving so I left my investments in the stock market to run without me for a short while and took out the heavy trades for the last couple of weeks. Well hit a luck with all the volatility while I was busy I get back to trades and the market is rocking. I new it would jump but boy what a jump. Just when everybody thought the world was ending it all turns around, I am just glad I was not short.

stock market

The stock market rocks again.

It looks like the market is set to become bullish again for a while but I am pretty sure volatility is here to stay at the moment. The chances of it just disappearing is pretty remote. Well that said a lot of short squeeze has been taking place as I suggested would happen in one of my recent posts, especially in the resource sector. With that in mind many a company that was the darling of the market last year are taking hits if the financial results don’t hit expectation, and don’t expect too many companies in the current stock market to actually hit expectation. Loads of companies were sitting on really high PE ratio’s lately and it looks like they are paying the price this year.

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The markets have been moving in waves with news out of China and FED news swinging markets about but there are a lot of valuation swings in between so the art of buying into quality still holds strong in the marketplace. The stock market is kind to those who choose well and just like myself if you walk away for a couple of weeks at least you know your investments are in quality companies. It is always a good idea to reduce your exposure when you do go on holiday or become otherwise occupied unless you have someone else to take care of your portfolio, but then who really wants someone else to look after their money? Reduce the risk and simply find new entry points when you get back, that is unless you are a long term investor in which case it would not matter to you in any case.

 

funny 1While the markets appear to moving up at the moment it should not be forgotten that many a company particularly on the JSE has lost almost 50% of its value and in some resource companies even more. This will leave some traders who did not escape way out of the money at this point and the bull run might not even get back to those levels, so while it seems good it is not always good for all. Companies like Anglo American dropped from heights of R300 to a mere R50 and are back at R90 as we stand at the moment. That kind of move is worse than what was experienced in the 2008 crisis. Catching the bottom is the tricky part of any of these trades and it is still very possible that we have not even seen the bottom. Oil is getting bounced around by a bunch of undecided oil producers who thought they could spook the smaller oil producers out of business but it seems they have only spooked themselves somehow. There is more oil in the world than we need at the moment and with the way the world is moving I don’t see that improving much in the future.

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Europe has been rocky at best but it might still be the best investment on the block if you are keen to call a bottom with QE coming into play in a bigger role. Some would say it can only get better from here but hey who really knows on that score. Japan has been struggling for years so why shouldn’t Europe I suppose. That said I might still choose Europe over most as it has been oversold and with the QE program it can only prop the market up. While the USA was looking strong the FED has not committed to any increase and this appears to have somehow spurred the market on again. Any change in that sentiment in the near future will not be good for markets. Markets could continue on upwards as they have done for the last few years or the S&P futures could hit 1990 and start to lose momentum again, that being the case probably won’t be good for markets in general. If it manages to break the 2000 level and continue up then we can expect a lot more upside.

In volatile times markets are very difficult to call so the best strategy is to stick to your plan whatever it is and possibly trade quicker with tighter stop loss strategy but you could be getting stopped out 3 times a day. Without direction it can be better to sit on the sidelines and watch but I don’t have that in me so I would rather stay invested to catch those runs like we are having at the moment then perhaps hit a few short trades. I trust you are enjoying the trading week, don’t forget to sign up and stay in touch for future posts.

 

 

 

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Stock Market Crash or Market Correction?

So are we about to experience a stock market crash or is the latest move simply a correction? A lot of factors have to be in place for a crash to occur and it would appear to me that none of those factors are in place at this point in time , so one can only ask where is everybody running to at the moment. A market is built on buying cheap and selling high and it looks to me at the moment that traders are doing precisely the opposite.

stock market crash

A stock market crash

If you consider the amount of correction in resource markets it is most likely the crash has already occurred and we are waiting for recovery. There has also been huge corrections in the emerging markets particularly in the currency areas. Some stocks in these areas have lost 80% of their value while others have lost 50% as only a few have managed to hold station. Oil as we know has lost a huge chunk of it’s value over the last year and is incredibly cheap at the moment, making it doubtful that we will see the old highs any time soon. That said this all looks like a healthy correction rather than a stock market crash. The governments of the world have stepped in on more than one occasion to prevent disaster and it is doubtful they won’t do it again if they see trouble coming. While there are obvious problems still lurking around in the world governments remain positive about the future and feel they have everything in place to prevent disaster.

stock trading

The big question on everyone’s mind is if we are reaching buying levels or not.  The only way to determine buying levels or selling levels is with good analyses of individual instruments. If you need this type of information or a course download it >>here<<  It is really important to know when the best time to buy or sell the market is and while nobody can actually time the market one can try to get in as close as possible to the required levels rather than just blindly trading or investing. A good example of this is if you had blindly invested into many of the resource stocks with a long term view, you would now be 50 to 80% down on your investment. With this you can see the importance of having a good plan or trading system to work with. While you can ignore daily moves you cannot ignore a general trend that is taking over. What do we do if a bear market occurs? Well look for my post on this blog that explains how to trade a bear market. Are we heading into a bear market? Probably not and the bulls will probably surprise sooner rather than later.

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@marcventresca @ariannahuff @OxfordSBS Interesting? Latest #WEF16 trendwatch “New stock market crash inevitable” https://t.co/cY92x7dJgM … …

 

images (6)We have a situation where the USA is happy and raising interest rates, China while slowing down is still actually surging on ahead and most companies are scrambling to get a piece of that pie and Euro zone has quantitative easing in place. None of this shouts crash in fact most of it shouts buy the market now even though it is falling. Don’t panic just yet and keep an eye open for that big turn upwards or you might just miss it. There will be a lot of short trades sitting in the market and some short squeezes may take place if the market suddenly turns up again. Short traders have made a fortune in the last couple of months and could be getting ready to start taking profit as it is doubtful the short trades will have much more than another 5% in the bag in most cases. Most of the underlying valuations of companies is pretty good and some are trading below NAV at the moment making them a good value investment for value traders.

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So were do we go from here? Sorry but nobody really knows and loads of traders are calling doom and gloom, watch out that is usually a sign of change. I hope you will figure your way through this tricky volatile time and enjoy your trading. Have a good trading week.

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Current Stock Market Fear Has The Bears Rampaging Ahead

The current stock market fear has the bears rampaging on ahead while the bulls are ducking for cover. In a week that produced the worst start in years for most indexes fear took the markets over, chasing the bulls into a corner. As I noted in my previous post the markets look set to be pretty bearish in 2016 but don’t let this trick you into going blanket short because as always nothing is at it seems and it could turn around and kick your ass.

current stock market

The current stock market situation.

Let’s look at the markets as they stand at the moment, heavily oversold on most equities and pretty much in bear territory. The amount of short trading in the system at the moment is most likely huge, weighting everything to the down side. Now imaging for a moment that a catalyst changes things slightly and the market suddenly starts moving up……..you will see a short squeeze to die for, some trades could move up over 20% especially in emerging markets so be very careful of holding blanket short trades. It would be prudent to remember that the current stock market is built to inherently go up in value as companies produce improved results on an ongoing basis.

Many traders tend to get caught up in the noise around them forgetting about the underlying instrument they are dealing with. If the entire market is dropping there will be little hope for most of your long trades to hold up in a weak situation but this would not imply that you have a bad trade simply that fear has taken the current stock market by storm causing the bears to get excited and the bulls to run. This situation will often create really profitable buying opportunities but one needs to know when to get in and out of the trades as the markets could still fall further. If you need more information on this subject download my course >>>here<<<.  While investors might not see this as a problem traders using geared trading will.  The noise in the markets has retail traders jumping in and out of trades like crazy, not that this is a bad thing just that it creates a kind of Mexican wave. Fear causes panic and panic gives you volatility. Now volatility is what you need to make real good money in the current stock market.

bear market

When a market is ticking on really slow you will hear everybody calling for volatility but when it arrives everybody goes into a severe panic mode. This is normally because you have not mastered the art of short trading.  Once a trader gets the feel and it does not matter what the direction is the fear disappears and gets replaced by excitement. The market does not only move in one direction but when volatility is about it does tend to move with a tsunami effect rather than smoothly. A quite market tends to tick along sideways to up but it takes forever to get where it is going climbing the wall of worry but when the bears turn up large movements can immediately be seen. A bearish move can be very difficult to catch so it is important to be able to read when this might occur before it happens. For more information on how to do this download my trading system >>>here<<<.  

A bear market does not imply that every instrument will fall it simply shows the majority move in the index and what it is made up of. A good example of an instrument holding up might be a currency hedged product that moves up in a bear market due to the countries currency losing value. Some equities tend to hold up well as they are market favorites and nobody is selling on the day. One should be very careful of trading short on products that are inherently bullish as it is the same as buying a product that continues to fall. This basically implies that you should not trade against the trend whatever the direction.

If a market is too volatile to trade and it is moving up and down irrationally it can be a good idea to stay out for a while to collect your thoughts and let it settle down rather than constantly calling trades incorrectly. To many bad trades can hurt the confidence of a good trader and the effect can be pretty serious sometimes. Every trader goes through a bad patch and it is important to identify when this is happening so that you can take that step back and re look what you might be doing to cause the effect. Traders often get married to particular shares causing them to effect revenge trades or even keep coming back into the same trade because they cannot believe that particular instrument is being unreasonable. This is when you need to take a step back and re evaluate. Remember if a trade is gone then it is gone don’t keep trying to get it to pay you back you cannot win 100% of your trades and if you try you will probably end up losing more than expected in the long run. If a trade goes wrong you need to move on to the next trade where something better might be waiting on the sidelines to make you some good money.

If you don’t know how to trade short or how to use technical trading with fundamental information check out my trading system >>>Here<<< designed over years of trading. It might be of some use to you.

 

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