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Product Description
Wiley Online Trading for a Living
When to get in-when to get out
Build, test & trade a winning system
Online brokers, research & market data

For those who are well suited to day trading and short-term trading, the futures market is one of the best games in town. As the original short-term vehicle, the futures market allows the trader to collapse the time frame in which he or she can reach the desired profit target-or pain threshol… More >>

Day Trade Futures Online

System trading means creating a strict set of objective and mechanical rules for identifying if a trade opportunity exists, when should you enter the trade, and how do you exit the trade. The operative words are “objective” and “mechanical”. If a set of trading rules can be programmatically reduced to a series of computer instructions, then the rules are objective and mechanical.

One of the main advantages of system trading is that it enables you to produce consistent trading results. In other words, your actual trading results should be identical to the results generated by the system. This type of trading requires very little thinking or analysis on your part, and all you have to do is follow the trading system rules without deviation.

However, system trading can be difficult to implement in practice because it typically requires you to take all of the valid signals produced by your system in order to allow the system’s edge to manifest itself. This is because it may take a considerable amount of trades in order to turn a profit with a mechanical method. As a result, your system will often produce entry signals that run contrary to what your common sense is telling you. For instance, the current trading day may be a very strong bullish trending day without any signs of selling; however, if your system produces a valid short signal, then you must take the signal without question in order to allow the edge to manifest under a system trading approach. Or, if you are in a trade and prices come very close to your profit target and suddenly reverses back toward your entry, you must stay in the trade if your system trading rules require you to do so, even if you believe strongly that the trade is failing. This type of trading is very hard on the emotions because it often requires you to make decisions that go against logic.

Discretionary trading, on the other hand, entails identifying when to enter and exit a trade based on whether you cognitively or intuitively perceive that a profitable trade opportunity exists. In essence. you are assimilating various mental processes of perception and judgment to determine whether you should either take a position or remain on the sidelines. Although discretionary traders also use rules for entering and exiting a trade, usually discretionary rules do not meet the objective and mechanical test. Typically, discretionary rules cannot be completely programmed for computerized instruction. An example of discretionary trading would be deciphering the sequence of trades occurring at the ask versus trades occurring at the bid on time and sales in order to determine whether a trade opportunity exists.

Discretionary trading is usually easier on the emotions than system trading because you tend to take trades that you agree with emotionally. For example, a discretionary trader that trades with the trend and looks for trade entries by reading the time and sales screen would probably avoid taking a short trade during a very bullish trend day in which there were no signs of selling on time and sales, because he would most likely be trading against the trend.

The main disadvantage of discretionary trading is the inconsistent results this style of trading can potentially produce. Markets are constantly changing, and the circumstances and factors which may have led to you placing a winning trade yesterday, may not be the same as they are today. A lot of the success of discretionary traders can be attributed to their ability to perceive trade opportunity. However, what may be perceived as the same setup that occurred in the past, may in fact be an entirely different setup upon a more thorough analysis. As humans, we are susceptible to biases that allow us to equally treat all market situations simply because they look similar to past situations. Looks can be deceiving when it comes to market analysis and one must perform careful due diligence to make sure that they are comparing apples to apples.

There is a third approach to stock day trading which combines both approaches described above. The hybrid trading approach merges together system trading and discretionary trading. Under a hybrid trading approach, you would employ objective system trading rules for those parts of the decision process that will enable you to achieve consistent results, but discretionary decisions would only be allowed for situations that don’t materially affect the outcome of the trade. For instance, identifying when a trade opportunity exists and when to enter the trade would be performed under objective system trading rules. However, discretionary decisions regarding how and when to exit the trade would only be allowed after your first profit objective has been satisfied because the essence of the trade opportunity has been met. A hybrid trading approach can often produce more effective results than either a system trading approach or a discretionary approach by relying on the rudimentary idea that sometimes the sum is greater than the parts.

Author: Monti Simmons
Article Source: EzineArticles.com
Provided by: Guest blogger

Keith Fitschen’s commodity futures day-trading methods are used in the most liquid commodities in each group: for the grains, wheat and soybeans can be traded; for the softs, coffee can be traded; for the currencies, the yen and euro-currency can be traded; for the metals, copper, gold, and silver can be traded; for the energies, crude oil, heating oil, and reformulated gas can be traded; for the financials, 10-year notes can be traded;, and for the stock indices, the S&P 500, the Russell 2000, and the German DAX can be traded.

Traditionally, the problem with futures day-trading strategies has been transaction costs: slippage and commission. These costs severely ate into the profit that could be made on a day-trade. But with the advent of deep discount brokers, and electronic trading, commission for a trade can be less than $10, and slippage for a trade can be as low as one or two ticks. This evolution has caused a number of successful trading system designers to promote day-trading strategies. Keith Fitschen’s strategies are unique because they use the same market approach across all the groups, and because the strategy “works” on all the liquid commodities. This type of day-trading leads to an average profit-per-trade of about $150 across all the commodities, and a winning percentage of about 55 percent.

Normally, successful day-trading strategies have been sold to the public for $3,000, or more. This high bar to entry reduces the funds available for trading for a typical trader. Keith Fitschen’s day-trading strategies are offered for a monthly lease fee. This allows a trader to avoid the large upfront expense and spread it over a long period of time, while retaining the right to stop at any time. This means of gaining access to the trading signals is certainly an advantage over the traditional approach.

System trading means creating a strict set of objective and mechanical rules for identifying if a trade opportunity exists, when should you enter the trade, and how do you exit the trade. The operative words are “objective” and “mechanical”. If a set of trading rules can be programmatically reduced to a series of computer instructions, then the rules are objective and mechanical.

One of the main advantages of system trading is that it enables you to produce consistent trading results. In other words, your actual trading results should be identical to the results generated by the system. This type of trading requires very little thinking or analysis on your part, and all you have to do is follow the trading system rules without deviation.

However, system trading can be difficult to implement in practice because it typically requires you to take all of the valid signals produced by your system in order to allow the system’s edge to manifest itself. This is because it may take a considerable amount of trades in order to turn a profit with a mechanical method. As a result, your system will often produce entry signals that run contrary to what your common sense is telling you. For instance, the current trading day may be a very strong bullish trending day without any signs of selling; however, if your system produces a valid short signal, then you must take the signal without question in order to allow the edge to manifest under a system trading approach. Or, if you are in a trade and prices come very close to your profit target and suddenly reverses back toward your entry, you must stay in the trade if your system trading rules require you to do so, even if you believe strongly that the trade is failing. This type of trading is very hard on the emotions because it often requires you to make decisions that go against logic.

Discretionary trading, on the other hand, entails identifying when to enter and exit a trade based on whether you cognitively or intuitively perceive that a profitable trade opportunity exists. In essence. you are assimilating various mental processes of perception and judgment to determine whether you should either take a position or remain on the sidelines. Although discretionary traders also use rules for entering and exiting a trade, usually discretionary rules do not meet the objective and mechanical test. Typically, discretionary rules cannot be completely programmed for computerized instruction. An example of discretionary trading would be deciphering the sequence of trades occurring at the ask versus trades occurring at the bid on time and sales in order to determine whether a trade opportunity exists.

Discretionary trading is usually easier on the emotions than system trading because you tend to take trades that you agree with emotionally. For example, a discretionary trader that trades with the trend and looks for trade entries by reading the time and sales screen would probably avoid taking a short trade during a very bullish trend day in which there were no signs of selling on time and sales, because he would most likely be trading against the trend.

The main disadvantage of discretionary trading is the inconsistent results this style of trading can potentially produce. Markets are constantly changing, and the circumstances and factors which may have led to you placing a winning trade yesterday, may not be the same as they are today. A lot of the success of discretionary traders can be attributed to their ability to perceive trade opportunity. However, what may be perceived as the same setup that occurred in the past, may in fact be an entirely different setup upon a more thorough analysis. As humans, we are susceptible to biases that allow us to equally treat all market situations simply because they look similar to past situations. Looks can be deceiving when it comes to market analysis and one must perform careful due diligence to make sure that they are comparing apples to apples.

There is a third approach to stock day trading which combines both approaches described above. The hybrid trading approach merges together system trading and discretionary trading. Under a hybrid trading approach, you would employ objective system trading rules for those parts of the decision process that will enable you to achieve consistent results, but discretionary decisions would only be allowed for situations that don’t materially affect the outcome of the trade. For instance, identifying when a trade opportunity exists and when to enter the trade would be performed under objective system trading rules. However, discretionary decisions regarding how and when to exit the trade would only be allowed after your first profit objective has been satisfied because the essence of the trade opportunity has been met. A hybrid trading approach can often produce more effective results than either a system trading approach or a discretionary approach by relying on the rudimentary idea that sometimes the sum is greater than the parts.

Author: Monti Simmons
Article Source: EzineArticles.com
Provided by: Guest blogger

System trading means creating a strict set of objective and mechanical rules for identifying if a trade opportunity exists, when should you enter the trade, and how do you exit the trade. The operative words are “objective” and “mechanical”. If a set of trading rules can be programmatically reduced to a series of computer instructions, then the rules are objective and mechanical.

One of the main advantages of system trading is that it enables you to produce consistent trading results. In other words, your actual trading results should be identical to the results generated by the system. This type of trading requires very little thinking or analysis on your part, and all you have to do is follow the trading system rules without deviation.

However, system trading can be difficult to implement in practice because it typically requires you to take all of the valid signals produced by your system in order to allow the system’s edge to manifest itself. This is because it may take a considerable amount of trades in order to turn a profit with a mechanical method. As a result, your system will often produce entry signals that run contrary to what your common sense is telling you. For instance, the current trading day may be a very strong bullish trending day without any signs of selling; however, if your system produces a valid short signal, then you must take the signal without question in order to allow the edge to manifest under a system trading approach. Or, if you are in a trade and prices come very close to your profit target and suddenly reverses back toward your entry, you must stay in the trade if your system trading rules require you to do so, even if you believe strongly that the trade is failing. This type of trading is very hard on the emotions because it often requires you to make decisions that go against logic.

Discretionary trading, on the other hand, entails identifying when to enter and exit a trade based on whether you cognitively or intuitively perceive that a profitable trade opportunity exists. In essence. you are assimilating various mental processes of perception and judgment to determine whether you should either take a position or remain on the sidelines. Although discretionary traders also use rules for entering and exiting a trade, usually discretionary rules do not meet the objective and mechanical test. Typically, discretionary rules cannot be completely programmed for computerized instruction. An example of discretionary trading would be deciphering the sequence of trades occurring at the ask versus trades occurring at the bid on time and sales in order to determine whether a trade opportunity exists.

Discretionary trading is usually easier on the emotions than system trading because you tend to take trades that you agree with emotionally. For example, a discretionary trader that trades with the trend and looks for trade entries by reading the time and sales screen would probably avoid taking a short trade during a very bullish trend day in which there were no signs of selling on time and sales, because he would most likely be trading against the trend.

The main disadvantage of discretionary trading is the inconsistent results this style of trading can potentially produce. Markets are constantly changing, and the circumstances and factors which may have led to you placing a winning trade yesterday, may not be the same as they are today. A lot of the success of discretionary traders can be attributed to their ability to perceive trade opportunity. However, what may be perceived as the same setup that occurred in the past, may in fact be an entirely different setup upon a more thorough analysis. As humans, we are susceptible to biases that allow us to equally treat all market situations simply because they look similar to past situations. Looks can be deceiving when it comes to market analysis and one must perform careful due diligence to make sure that they are comparing apples to apples.

There is a third approach to stock day trading which combines both approaches described above. The hybrid trading approach merges together system trading and discretionary trading. Under a hybrid trading approach, you would employ objective system trading rules for those parts of the decision process that will enable you to achieve consistent results, but discretionary decisions would only be allowed for situations that don’t materially affect the outcome of the trade. For instance, identifying when a trade opportunity exists and when to enter the trade would be performed under objective system trading rules. However, discretionary decisions regarding how and when to exit the trade would only be allowed after your first profit objective has been satisfied because the essence of the trade opportunity has been met. A hybrid trading approach can often produce more effective results than either a system trading approach or a discretionary approach by relying on the rudimentary idea that sometimes the sum is greater than the parts.

Author: Monti Simmons
Article Source: EzineArticles.com
Low-volume PCB Assembly

Day trading is often depicted in a glamorous manner in the trading literature. Do you know this that day trading is stressful and day traders are often referred to as the kings of stress. Now I am not saying that day trading is something you should avoid. There are people who are masters of day trading and this trading style suits their personality.

However, in my opinion swing trading is a much better option. In day trading you have to sit in front of your computer terminal watching the different charts and waiting for the trading signals. You can do that for a few days but after that fatigue and stress will overtake you especially if you have been making losing trades.

In day trading you open and close a trade within the same day and don’t carry forward your trade overnight to the next morning. As compared to that in swing trading you can open a trade anytime of the day when the moment is right and can keep it open for days as long as your profit target is not met.

In swing trading the profit targets are also much higher as well as your stop loss is also more wide so you have more space. Swing trading depends on riding the trend at the right moment and continue riding it as long as it lasts. Day traders are looking for short term trends that may not last more than 24 hours but sometimes as a day trader if at the end of the day you have a profitable position and you feel that you should keep your trade open for a few more days you decide to carry it forward to the next few days.

So sometimes you start as a day trader but end up as a swing trader. In swing trading you don’t need to monitor your trade all day. After opening your trade and putting your stop loss and take profit orders you are free as the market will take its own course after that. You only need to take a look at your trade for 10-15 minutes a day anytime of the day that suits you. As long as your technical analysis was correct, your trade will work. So you have much more freedom in swing trading specially for those who do a regular job and trade as well.

Author: Ahmad A Hassam
Article Source: EzineArticles.com
Provided by: Duty tariff