My Best Idea for Small Investors

Stocks are a wonderful investment but they will not be the right choice for small investors looking at trading for a living. A widely cited figure is that stocks return about 10 percent a year in the long run. If a successful trader can triple that, a 30 percent annual return will not amount to … Read more

Exotic Carry Trade Strategies

The Carry Trade strategy in forex trading involves buying a high yielding currency and selling a lower yielding currency. In doing this you will capture the interest rate differential. For example if the New Zealand Dollar has an interest rate of xx and the Japanese Yen has an interest rate of xx. If an investor … Read more

Turtle Traders

Famous commodities trader Richard Dennis was having an ongoing debate with his friend and business partner Bill Eckhardt about whether great traders are born or made – whether it is possible to teach the ability to trade successfully. While Dennis firmly believed that trading abilities could be broken down into a quantifiable system of rules … Read more

The Three Dimensional Market: Who, What, Why?

PART I: TRACKING MARKET PARTICIPANTS By Martha Stokes, C.M.T. © copyright 2007 all rights reserved. Most traders have a one dimensional view of the market.  They are simply searching for stocks to buy or sell using the latest strategy or indicator that they have learned.  Excitement is high about the latest trend and they are … Read more

Momentum Reversals in E-Mini Futures Contracts

By Toni Hansen ©2007, Reprinted with permission of The Trader’s Journal magazine (www.tradersjournal.com) For many traders, the decision to trade the E-Mini futures market is viewed as a highly lucrative decision. The tax benefits and the ability to trade with relatively small starting capital thanks to the leverage makes it very appealing to many. In … Read more

Legendary trades

Ironically, many of the most spectacularly successful trades of all time were made of one of the so called ‘black’ days, where the market saw a huge decline. Black Monday refers to Monday, October 19 1987, when the Dow Jones Industrial Average (DJIA) fell 22.6% – the second largest one day decline in recorded stock … Read more

Automated Trading Systems and the Forex Market

An army of small speculators have entered the forex arena armed with pooled knowledge and sophisticated technology rivaling that of large institutions. By Dan Blystone As the editor of a website focused on trading and investing I try to keep track of industry related trends and the hot topics of the moment. Notably, the combination … Read more

AB=CD Pattern Keeping it Simple

By Larry Pesavento and Leslie Jouflas History of the AB=CD Pattern In 1935 a book was published for sale to investors at an incredible price of $1500. That book was Profits in the Stock Market by H.M. Gartley. On page 249 Gartley describes a chart pattern, “Practical Use of Trend Lines”, which we now call … Read more

Death Cross

The death cross is a sell signal that occurs when the 50 day moving average crosses below the 200 day moving average. See also: Golden Cross