www.informedtrades.com A lesson on two of the most common mistakes that traders make when trading the stock, futures and forex markets. One of the most common mistakes is sticking in a trade where you know you are right in your analysis, but the market continues to move against you. As the famous economist John Maynard Keynes once said: “The markets can remain irrational longer than you can remain solvent” Perhaps one of the best examples of this are those who shorted the NASDAQ into the runup in 1999 and early 2000. At the time it was pretty obvious that from a value standpoint NASDAQ stocks were way overvalued and that people’s expectations for growth that they were buying on were way out of line with reality. There were many great traders at the time who recognized this and began shorting the NASDAQ starting in late 99. As you can see from the below chart and the huge sell off that ensued after the peak in 2000, these traders were right in their analysis. Unfortunately for many of them however stocks continued to run up dramatically from already overvalued points in late 99 wiping out many of these traders who would eventually be proved correct. So as we learned about in last lesson, people’s strong desire to be right will often times keep them in trades that they should have moved on from even though the market may eventually prove them correct. For those traders who are able to initially move on from trades where they feel they are correct but the market moves …

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www.StockMarketFunding.com Chicago Mercantile Exchange CME Chart Analysis Bearish Charts and Bearish Trend Oversold Condition Options Trading Expiration Weekly Analysis “Stock Market Trading Strategies” Technical Analysis Long & Short Stock Market Talk Radio Show http Follow us on Twitter: www.twitter.com Follow us on Facebook: www.facebook.com Free Trial Signup onlinetradinginvesting.eventbrite.com Video Alert Signup http Trading Community (Free to Join) www.DailyStockCharts.com

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Get Real-Time Online Trading Strategies and Market Information by contacting us at 312 685 2582 or floortradersclub.com Emini Futures and Forex, fx, 4x and Commodities Trading Strategies and Market Information broadcast Live from the Trading Floor (Pits) in Chicago to Traders PCs starting at 8:00am central time Trading Days via Live Audio & Real-Time Charts. * This channel is presented in an educational format only. Nothing is to be taken as trading advice. In addition No presentation is being made that any account will or is likely to achieve profits or losses similar to those predicted or shown.

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Learn how to weave with Travis Meinolf who’s featured on the cover of CRAFT: 08, the Weaving issue.

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www.stockmarketfunding.com Pro Traders highlight the massive move on GOOG, 934390 shares in 1 minute on a move up. Options strategies – Wikipedia, the free encyclopedia The most bullish of options trading strategies is the simple call buying strategy … Neutral strategies in options…

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www.informedtrades.com In our last lesson we looked at the two main types of moving averages, the simple moving average and the exponential moving average. In this lesson we are going to look at some of the ways that traders use moving averages to pick their entry and exit points in the currency, commodities, and equities market. As moving averages are lagging indicators they tend to work well in identifying and following a trend and not to work well in ranging or trend less markets. Because of this traders will often use them to trade with the trend as well as to identify potential areas of support or resistance which may result in a continuation or reversal of a trend. Lets look at some examples: The most basic way that traders will use moving averages is to identify and then trade with the trend of a particular instrument. Although most traders will probably want to use the moving average in conjunction with some of the things that we have learned so far and some of the things we will learn in future lessons, the most basic way to trade using just the moving average is to buy when the price of a financial instrument breaks above the moving average line and sell when the financial instrument breaks below the moving average line. For confirmation traders will often wait for a full bar to close above the moving average line before entering long and a full bar to close below the moving average line before entering a short position. Example of Trend Following Using Moving …

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www.informedtrades.com A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets. The link that I refer to on Standard Deviation is here: en.wikipedia.org The link that I refer to with more resources on Bollinger Bands is here: www.informedtrades.com In our last lesson we learned about the Stochastic Oscillator and how traders use this in their trading. In today’s lesson we are going to learn about an indicator which helps traders gauge the volatility and how current prices compare to past prices. Bollinger Bands are comprised of three bands which are referred to as the upper band, the lower band, and the center band. The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average. Example of Bollinger Bands: Bollinger bands are designed to give traders a feel for what the volatility is in the market and how high or low prices are relative to the recent past. The basic premise of Bollinger bands is that price should normally fall within two standard deviations (represented by the upper and lower band) of the mean which is the center line moving average. If you are unfamiliar with what a standard deviation is you can read about it here en.wikipedia.org As this is the case trend reversals often occur near the upper and lower bands. As the center line is a moving average …

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www.informedtrades.com We continue our course on how to trade stocks by setting up a paper trading account with ThinkorSwim.

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www.informedtrades.com A lesson on how to trade the Moving Average Convergence Divergence (MACD) in the stock, futures, and forex markets. The indicator, which was developed by Gerald Appel, is constructed by taking a 12 period exponential moving average of a financial instrument and subtracting its 26 period exponential moving average. The resulting line is then plotted below the price chart and fluctuates above and below a center line which is placed at value zero. A 9 period EMA of the MACD line is normally plotted along with the MACD line and used as a signal of potential trading opportunities in the stock, futures and forex markets. When the MACD line is above zero this tells the trader that the 12 period exponential moving average is trading above the 26 period exponential moving averages. When the MACD line is below zero this tells the trader that the 12 period exponential moving average is below the 26 period exponential moving average. Traders will watch the MACD line as when it is above zero and rising this is a sign that the positive gap between the 12 and 26 EMA’s is widening, a sign of increasing bullish momentum in the financial instrument they are analyzing. Conversely when the MACD line is below zero and falling this represents a widening in the negative gap between the 12 and 26 day EMA’s, a sign of increasing bearish momentum in the financial instrument they are analyzing. The purpose of the 9 period exponential moving average line is to further confirm …

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www.informedtrades.com A lesson on how using a standard amount per trade when trading the stock, futures, or forex markets is not the best way to go. In yesterday’s lesson we introduced another important yet often overlooked aspect of trading and money management which is position sizing. In today’s lesson we are going to begin to look at some of the strategies that many successful traders use to determine their position sizes. As we discussed briefly in the last lesson many traders make the mistake of choosing an arbitrary number such as 1 contract or 100 shares of stock to trade when they first enter the market. In addition to the fact that this does not consider the amount of capital a trader has at his disposal, it also does not take into account the fact that the Dollar value as well as the volatility characteristics of one contract or 100 shares of stock is going to very greatly. Like a poker player who bets the same amount on every hand, this also does not allow a trader the flexibility to trade bigger on trades with a higher probability of success and smaller on trades with a lower probability of success. As you can see from the picture below, a trader trading 100 shares of a stock which fluctuates 5% a day and a second position of 100 shares of a stock which fluctuates 1% a day does not present the risk/reward picture that many traders would expect it would. In this example the smaller position actually has a greater potential risk and reward because of …

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