Lessons from the Pros

Jan 15, 2013 Issue

Featured Article

Social Media and Your Trading

I am so grateful that I had the privilege of starting out in the financial markets on the trading floor of the Chicago Mercantile Exchange. The most important lesson I learned was how money is REALLY transferred from one trader’s account to another. Every day, retail trader accounts would be transferred into institution accounts… Read More »

Stocks

Smart Money?

In the investing world, we usually refer to the professional money managers as the “smart money.” However, recent reports show that trusting your hard-earned capital to mutual fund managers is not the wisest move. In 2012, a whopping 65% of large cap mutual funds failed to outperform the S&P 500 Index’s return of 16%… Read More »

Forex

Defining the Line of the Trend

With such a wide variety of trading tools and methodologies floating around the world today, is it any wonder that so many people find it highly confusing when deciding which to use? I certainly know that I pretty much tried and tested everything I could find since I started trading, and… Read More »

Options

A Picture is Worth a Thousand Words

That is a familiar saying. In this article, you get both! Last week I wrote about a backspread. This is a strategy that can be used to profit when we expect a large price move, are unsure or neutral as to that move’s direction, and expect a sizeable increase in Implied Volatility (IV). The backspread… Read More »

Commodities

It’s the Pits

For many years the Futures markets only had a day session and all the transactions were conducted in trading pits on the floors of the Exchanges. The traders in the pits known, as locals, would act as market makers for when the paper (orders from off the trading floor) came into the pits. This paper… Read More »

Real Estate

Is Buying a Home (or Rental Property) a Good Investment in 2013?

One of the most common questions I receive is: “What will the real estate market do in the coming year?” Well, I don’t have a crystal ball, (wish I did) but I can look at data and see where things are trending. There are very few experts that don’t agree that the real estate market… Read More »

Specialty Skills

Fear of Success Can Derail Your Trading

Jason felt like a deer caught in headlights. The unnerving thing about it was that he had been down this road before. He would identify a demand zone on the 60-minute chart where the price action was pulling back to retest this zone. A 5-minute time frame would be used to execute an order to… Read More »

India Markets

Instant Diversification

Exchange Traded Funds (ETFs) have long been used in the United States as a means for investing in multiple securities without the higher fees involved with mutual funds. An ETF is a tradable security that represents ownership in a basket of shares in multiple companies. The ETF is similar to a mutual fund in that Read More »