Tag Archives: Trade

General Business

Price Action And Understanding Multiple Market Modes Using Trade Station Indicators

Advanced TradeStation indicators can provide multiple time frame (MTF) price action.  Price action is undisputedly the most important fact in trading.  If you use multiple time frames to track price action you will increase the effectiveness of your trading edge many fold.  The interaction of the different time frames provides great information regarding which market mode you are trading.  This article will explain how MTF price indicator will tell you what market mode you are in.   Knowing this will assist you to greatly improve your trade management.

The 3 major market modes are consolidation, trend (up-trend or down-trend), and choppy (a trading range).  Every financial instrument goes through these three market modes on any chart.  The interplay of a multiple time frame price indicator shows at a glance when you are in an up-trend, a down-trend, when you have a MTF consolidation, and/or when you are trading a choppy market.

First, let’s focus on consolidation.  A consolidation can be any of the following types; price, volume, volatility, or oscillating inside a trading range.  Price consolidation across multiple time frames gives the most powerful consolidation breakout trades.  With a MTF consolidation, TradeStation traders can typically get breakouts that will sometimes go on for several days. 
This is a very powerful method of trading.  The MTF Price Action Consolidation trade set-up is present when all the price trend lines are collapsed into a tight range.

The second major market mode is trend.  A MTF up-trend is shown by the expansion of the interaction of the different MTF trend lines.  You’ll see this where the shortest trend line is breaking out to the upside and the MTF lines are fanning out into a ribbon.  But don’t be mistaken; simple moving average ribbons are nothing more than a single time frame indicator using multiple different lagging lines.  Unlike the simple moving average ribbon, a MTF price indicator has nothing to do with lagging lines.  In fact, the MTF trend line lags no more than one and a half bars, and yet it shows a smooth price line.  The interaction between the MTF lines is very useful.

You can also see a MTF trading range.  When you go into a choppy market or a trading range, the interaction of the MTF trend lines will show a trading range inside several higher time frame lines and the shortest line will be oscillating between the longer time lines.

You have a big advantage when you know what market mode you are trading in and know how to appropriately trade that market mode.  With a quick glance at a multiple time frame price action TradeStation indicator, this information will be at your fingertips to advance your trading success.

General Investing

Increase Trade Success Through A Value Investing Strategy

There are several strategies an individual can take advantage of when it comes to investing in stock market opportunities. Not having a strategy which you can depend upon is one of the greatest mistakes individuals make with trading since they’ve no genuine plans to protect their various investments. When you have the opportunity to single out a high quality value investing strategy it will support your financial goals of finding success and reducing your risks affiliated with trading in the stock market environment.

When considering the several strategies that are obtainable to you, it’s significant to identify the several mistakes individuals have made in the past so you have an opportunity to avoid these negative elements. One of the most significant mistakes people make is obtained with making investments in companies that they are familiar with instead of companies which offer them a real opportunity for profit. Research into any stock investments can include a wide variety of different resources and factors that impact a business as well as market trends. Selecting a company based upon the recommendation of another without conducting any research on your own can lead to you being punished for the research errors of another person.

Unfortunately when this does occur, a person can expect significant loss because of them not using the resources of a value investing strategy. While you blame another person for the mistakes that were made, it’s still your wealth that is no longer obtainable to you. When attempting to identify a high quality strategy which will assist you in your efforts to avoid financial loss and attain stock market success is important to look into the resources which exist with determining the true value or intrinsic value of any stock you are investing in.

While a stock may be at a certain value and has the potential to boost it is significant to recognize the success or failure of the company you’re attempting to purchase as a step of your value investing strategy. When a company has expenditures that far exceed any profits being made, the intrinsic value of the company is really low independent of its current stock value. No company can attain success in the stock market when it is unable to generate strong levels of profit on a normal basis. It is common to see a stock significantly reduce in value when a fiscal year is closed or profit expectations are generated specifically due to the fact that an unsuccessful company cannot succeed in improving stock market value.

This opportunity of profitability is only one example of the resources of intrinsic value and how this can affect your value investing strategy.

General Forex

Forex Charting Software – Draw Lines And Trade

Forex charting software is used by fx traders to perform forex technical analysis, which assists them to make far better trade decisions.

Charts are useful to visually interpret and represent analytical data in an attractive and lively fashion. Essentially, visual charts tell you when the market is trending for you to enter into a trade, give you stop levels, help you decide on a target for your trade, and give you an indication when the trend may be ending.

An experienced trader will be able to identify these key price points and join them together forming trend lines. These trend lines are also called support and resistance lines which are important levels for forex traders.

With Mt4 trading platform, it is possible to read the market and to conduct statistical evaluation right from the charts. You can draw lines in the chart manually by hand, and when price breaks across or touches the line, will instruct the EA to make trade entry or exit.

This draw-as-you-trade technology make manual forex trading easier in the popular forex charting software metatrader 4. Forex charting software not only perform its basic technical analysis, but also perform key trade processes such as chart pattern recognition, trade entry and exit execution and lastly trade management. All these processes can now be made automated along with the forex charting software.

Draw Lines and Trade Forex Charting Software

Forex charting software with trade execution capabilities is the essential tools that either make or break the trader. It can be vital that the forex trader knows different ways to read chart patterns, as forex chats can certainly help them to read new trending cycle, and to make the most-informed trade decisions at the right time (shortest possible time after chart pattern recognition is confirmed). All these key trade decisions can now be automated and programmed into the forex charting software that works on the MT4 platform.

Forex Charting Software Takes Away All the Trading Work

Forex traders that prefer for a more fully automatic forex charting software which will automate most manual FX strategy and investment techniques will gain profit by a robust Metatrader 4. There is MT4 Client Terminal that’s developed to offer people up-to-date market info, such as charts, indices, together with recent news. In addition, forex traders have accessed to more trading alternatives, customized indicators and approaches, which may well strengthen performance and increase profitability.

Forex Charting Software Summary

A visual aid is always easier to understand, and offers you the scope of being much more detailed in your study of any market. That is why charts are now the industry standard, and will make things much more easy for you if you’re to use them the proper way. The latest forex charting software not only helps you indicate a buy or a sell, but it can be pre-programmed with trade entry and exit instruction to take or pass the trade opportunity. You make the key decisions and have these tools ‘work’ for your forex trading business.

Forex Trading Articles

How to Trade CFDs

The term CFDs simply stands for contracts for difference. The ‘difference’ referred to means that between the buying price, the ‘offer price’ and the selling price or ‘bid price’ of a particular contract.

The value of the contract is based directly on the value of the underlying asset. You are, however, not buying the actual asset. If you buy a CFD on gold, for example, you are not actually buying gold, instead, you are speculating on the price of gold.

A CFD broker will pay you the difference between the price you bought the market at, the ‘offer price’ and the price you eventually sell the market, the bid price. If you should buy a CFD based on the price of one ounce of gold and sell it again immediately, you will lose the difference between the offer price and the bid price, which is part of the broker’s commission. Also be aware that some brokers will add fees each time you buy or sell a trade.

As the day goes by, the bid price might exceed the original offer price you paid, in which case the difference will be your profit. The reverse is true if the price moves against you; you will lose the initial difference between the offer price and the bid price plus the amount by which the price of the asset dropped.

Only buy a CFD if you are convinced the price of the commodity, equity or currency will increase. Since interest must be paid on your open position at the end of the day, many traders prefer to terminate all their trades before the market closes.

Since you are trading on the price of the underlying asset, you can use both technical and fundamental analysis to try and determine whether the price will move up or down. If you believe it will increase, enter into a long position; if you believe it will fall, take a short position.

There are some differences between long and short positions with CFDs. On long positions, you pay interest and receive any declared dividends, every day. On short positions, you must pay any declared dividends, but you receive interest on your open balance.

Since the value of a CFD closely reflects the value of the underlying share, commodity or currency, you can treat it in much the same way as if trading in the actual underlying asset.

The difference is that CFDs are leveraged instruments. You could trade with much more money than you actually possess, since you only have to pay a deposit, usually between 14% and 35% of the total. For example, with a deposit of 14,000 you could expose yourself to profits and losses on a total amount of 100,000.

Purchasing CFDs worth 100,000 would mean a deposit of 14,000 and you could potentially double your initial ‘investment’ if the price of the asset increased by 14%. You would make 14% profit, which equals 100% on the amount you actually invested.

The reverse is also true; if the price dropped by 14%, you would lose your entire 14,000 investment. To protect yourself against such a scenario, decide how much you are prepared to lose and set a stop loss at that level. Never put all your eggs in one basket, have a diverse portfolio and never risk more than what you can afford to lose on a single trade.

Like the risk warnings tell you CFDs trading is a leveraged investment product, it involves a high degree of risk to your capital and you can incur losses that exceed your investment. Please ensure that it matches your trading objectives as it may not be appropriate for all classes of investor. Ensure that you only trade CFDs with capital that you can afford to lose. Before trading, ensure that you are fully aware of the risks involved and obtain independent financial advice if appropriate.

General Forex

Trade Copier – An Indispensible Tool For Forex Management Companies

Applying sound trading strategies via an EA (Expert Advisor) by providing it with the timely trading based signals is the secret to helping your clients make profits in the market thus helping you expand your Forex Management clientele. As a result, it becomes all the more important to have a software in the likes of EA Coder’s Trade Copier in your arsenal that can copy and transfer signals to target accounts in a time-efficient manner.

The software, once functional, can replicate selected trading signals and transfer them to a large number of secondary accounts without any hassle. Better still, the signals being sent to the client’s side is the latest with only a mere 0.5-1 second time gap. The only prerequisite that need be considered is the both the source (master) account and all client (slave) accounts run on the Metatrader 4 platform.

Once, you have ensured that a secondary Metatrader account is set on the client’s machine; you can pretty much do the rest of the management and sorting out work using the bundled client management website that comes with the software. Once up and running, the client account’s EA can receive trading signals from you irrespective of whether it is a part of a local network or VPS.

Creating new accounts in the TradeCopier database is an automatic process thanks mainly to the PayPal Notification as well as the Clickbank Payment Notification Service wherein client usernames get created in the system as soon as they make the payment. This saves both time and also makes the client service registration a fairly trouble-free affair for the Forex management company.

The Trade Copier is not just a simple copy and paste information type of an application. It comes packed with a lot of features that ensure that trade signals being copied from the master account into the client account make sense in the values being put up for the trader to initiate necessary action either manually or via a robot. This includes areas concerning lot size, take profit, stop loss, and others where these values become all the more important especially when an EA is trading on behalf of the client.

Take the LotMultiplier feature for instance in the Trade Copier. Now, while your subscribers need your timely forex signals, they do not necessarily have to trade in the lot proportions that you do. In case a trader is working on a low balance, the LotMultiplier proportionally brings down the appropriate values without changing the ratios before copying the signal into the TradeClient account and conversely pips up in case the client is a big money trader.

The Trade Copier can replicate both manual as well automatic trades set off by an EA robot. As a result, clients are able to receive better and fast signal updates from your side which makes it all the more important in case an EA is picking off signals from the client account to undertake a move. All said and done, Trade Copier package is an absolute must for any Forex manager looking to provide trade signals to clients.