Trading Stock Indexes

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AppId is over the quota

All traders, and almost all non traders, are aware of the main US, European, and Asian stock indexes, because these are the indexes that are reported in the news. However, many traders, and certainly most non traders, do not know how the stock indexes are traded, and often assume that they are traded like individual stocks.

The stock indexes cannot actually be traded directly, and are available for information only (i.e. as a way to track the performance of the markets or a specific sector). Market data is available for the stock indexes, and they can be charted like any other market, but there is no way to make either a long or short trade on the actual stock indexes.

Whenever we hear a trader mention that they are long on the Nasdaq, or short on the FTSE 100, they are not actually long or short on the Nasdaq or FTSE 100 indexes. They are actually long or short on a futures or options market such as the NQ futures market or the Z options market.

Futures and options that are based upon a stock index are known as derivatives markets, because they are derived from the underlying stock index. There are futures and options markets available for all of the popular stock indexes. Stock index futures and options markets are some of the most popular markets for short term and long term traders alike.

Futures and options markets usually move in synchronization with their underlying stock indexes (e.g. when the CAC 40 stock index moves down, the CAC40 futures market usually moves down). It is therefore possible to chart the stock indexes while trading the futures or options markets.

There are some advantages to charting the stock indexes instead of the futures or options markets. For example, the stock indexes are continuous markets (i.e. they do not expire like futures and options contracts do), so traders do not need to update their charting software to a new contract every three months (or monthly depending upon the market in question). Also, the options markets are difficult to chart because they consist of many equally active contracts (with different prices), so charting the stock indexes instead allows a trader to trade multiple options contracts using a single chart.

If you do decide to chart the stock indexes instead of the futures or options markets, note that you still need to update your trading software (your order entry software) to use the appropriate futures or options contract, otherwise, you may find yourself trying to trade an expired contract and wondering why it isn't working.

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Forex Day trading With Multiple Timeframe Analysis

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AppId is over the quota

It is not uncommon to see people new to the business of trading try to utilise 5 minute charts and experience numerous losses in the process of doing so.  This is not to say that trading higher timeframe charts is a simple path to success  – because it is not. Higher timeframe charts do however remove some of the noise which is exacerbated when trading with the lower timeframe Forex charts.   A 20 pip stop loss can be hit in seconds during major event risk or even on interaction with a technical level.

Does this mean that lower timeframe Forex trading is an exercise in futility?  I would say this is not the case but an awareness of the bigger picture is essential.  This post will look at a top down analysis piece which culminated in a trade on the 5 minute timeframe charts.  As you will see there was a lot of thought going into the setup and it was not limited to the 5 minute chart in isolation

This trade was on the GBPUSD currency pair.  Our weekly GBPUSD analysis brought to light the following information re the pound/dollar major.

Price was trading just above the psychological 1.6000 GBPUSD handle.Commitment of traders COT report data showed the pound was relatively robust in terms of non-commercial (large speculators) positioning.Price was moving into a confluence area of potential support on the higher timeframe charts.

Now you may see this as irrelevant, when looking to trade intra-day on the lower timeframe, but it tells us there is a chance the bigger traders will be looking for GBPUSD longs as the new week begins.  At the very least it shows us that the market is not “overtly” bearish on the pound.

Further to this we have a gap down on EURUSD and the dollar index gaps higher.  The gap was still open as the Frankfurt/London Open session begins  and some traders may be looking to initiate a gap trade play.  This information is noted down before the trading day begins.

So the top down analysis had shown that price did not close below support. If the bears are trapped in a net breakeven or worse trade and do not see further downside they may need to liquidate positions. Even if they have a profit on the table and see price stalling at support they may become nervous and take a profit before the London open.

All of the above is supplementary information compared with the last piece of the puzzle.  As the Frankfurt and London markets open cable tests double bottom area support following a strong 5 minute bearish candle (see price action within the red circle above). 

The next candle (prior to the trigger candle) is hinting that price my be running out of bearish momentum with the small wick below.  This is not really a strong signal on its own though.  The next candle was my trigger to go long.  A 5-minute bullish engulfing candle at the double bottom area.  A 5 minute trade signal like this is not uncommon but the time (liquidity hitting the market at European open) and location (price structure support) made it stand out in my eyes. 

I was already aware that there was not event risk due and had checked the financial calendar schedule.  The spread was checked before trade initiation to make sure it was acceptable.  The exit was at the horizontal dotted black line above.  Traders differ in this area (profit taking) but I prefer to grab a quick profit and minimise risk.

The trade lasted around 10 minutes and went smoothly to the target (it does not always work out so well… trust me).  If price had of hesitated at the down sloping trend line a decision would have need to be made regarding potentially closing out early.  

Hopefully this gives an insight into the preparation that goes into a trade idea.  Do not go out and try to replicate this.  The post is purely for commentary purposes only and not a recommendation on how to trade.  Take care out there.

Related posts:

App Store From FXCMDollar Index Analysis 16th May 2012Dollar Index Technical Analysis 15/5/2012Forex Broker Articles – What is easy-forex?Gold Technical Analysis Update 12th May

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Trading Forex with Signals – A Social Network Way of Thinking

The Forex Industry has and continues to undergo fundamental changes in 2012. With significant market instability since the recession of 2008+, traders have been forced to become more aware of current affairs and events. Whilst at the same time more astute in understanding the benefits and features of the growing number of Forex Brokers.

2012 is set to be cemented as the year where Social & Apps become one in all verticals. In Forex this is especially pertinent since traditionally interaction and engagement between traders was a taboo subject. Today we see the openness and willingness of traders to share strategies and participate in open discussion on events that can lead to smart trading.

One area where recent technical developments have matured is Forex Signals for long time, signals were frowned upon as untrustworthy and created by opportunists aiming to make their profit from selling a product while their customers lose their money on the markets.

In 2012 we’re seeing a natural move from traditional signal providers being replaced by user generated and transparent social forex signals . A great example of this is the recent (re)launch of ForexGlobes, which pits itself as the first true “Social Forex Signal Platform” The first generation of their platform soft launched last year although after positive feedback was taken off-line while fundamental re-development took place. This month it re-emerged as a total social experience. Signals are only provided by the community, and the platform is open to all traders regardless of level or current choice of broker. The intention appears to be 100% transparence coupled with 100% independence from trading activity.

As a truly social platform the success of individuals is dependent upon the success of the group. Every trader is able to publish signals and a ‘reputation’ score is continuously recalculated allowing new members to easily see which trader should be followed and trades copied for the best chance of success.

Forex trading has become an honest and accepted investment strategy and tool for both institutional and private investors. However it has taken some time for the market to mature and companies to emerge willing and able to provide traders with real tools to help them make money. With social platforms entering the market the face of Forex has changed irrevocably, the power and demand for transparency is with the client.

For the first time there now exists a trading signals community. Engagement, exchange and discussion of Forex trading strategies can now be leveraged to allow you to realize the opportunities claimed by brokers.

Tags: Business, Commodities and Futures, Foreign exchange market, forex, forex globes, ForexSignals, Investing, social forex signals, Trade, Trader (finance)

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Currency and Commodity Trading techniques-Target gold and oil alternatives

An analysis of currencies and commodities trade the sharp dealer refers to the currencies of countries whose economic production and later export are mainly raw materials, such as raw materials such as aluminium, oil and gold and agricultural products such as sugar, soya or livestock.
Although it would not be wrong to refer to many world currency such as commodity currencies, this is not the intention when traders use this description. Those who follow currency and commodity trade trends, however, use the term to describe the three major countries in which raw materials an important role in both the economic output if the output play.
A look at trade charts will learn how changes in global commodity prices seem correlated to the Canadian, Australian and New Zealand dollar coins, with the Australian dollar, a very good proxy for gold price movements and the price of crude oil price seems to correlate closely with movements in the Canadian dollar (CAD). Unlike the other two commodity currencies, the New Zealand dollar (NZD) or "Kiwi" does not seem to be associated with a particular raw material, but rather shows a close correlation with price changes in the broader measure of Commodity Research Bureau (CRB) Index.
Let's consider what happens when gold strengthened? We can expect to observe a similar increase in the AUD/USD pair (the Aussie), as all currencies trade in pairs. This equates to a strengthening of the Australian dollar against the US dollar, or put it another way, the u.s. dollar is weakening in that pair. The beginning of the economic uncertainty in the global economy, such as recession or soaring inflation, asks investors to gold as it is considered a safe haven. Currency and commodity traders will also how Golden links to the Aussie, and instead this pair trade.
Australia Gets a significant percentage of the export of raw materials and more than 50 percent of exports from this source with gold, other precious metals and copper play a major role. Take a look at trade data to see the strong positive correlation of the Aussie and gold. This means a switched-on trader can trade gold futures or an ETF, or exposure to AUD/USD in the spot forex market.
Market data will show the keen observer of currency and commodity trading the significant part played in the global commodities market by Canada, especially when it comes to her role as a strategic crude oil-producer. This leads to the inverse correlation observed between the changes in the price of crude oil and the movement of the pair USD/CAD (Loonie).
Canada is a major oil supplier to the United States, which in turn neighbour consumes more oil than any other economy. A low crude oil price would be bad news for the Canadian dollar, but positive for both the u.s. economy and the u.s. dollar. Every merchant bearish on the Outlook for crude oil prices as a proxy can go short the Canadian dollar in the Forex market, instead of short or inverse ETF in Nymex crude oil is going to buy.
Knowing how these three currencies are closely linked to raw materials, we can see why currency and commodity trading in spot forex trading takes observers their chance to take advantage of commodity market movements, or in crude oil, gold, or more in General about the commodity spectrum. There is always a bull market in currency trading, so decide what you are long or short in your chosen currency pair.

Gold Trading strategies

With the price of gold hit all time highs are many traders wondering if gold trading is a great way to extra profits. One way that this can be done is by the trade of the gold futures contract. This is where you are speculating that the price of gold will rise or fall in the future. Gold historically is a great long-term investment in times of economic uncertainty or crisis. Having regard to the fact that the world is currently in a financial crisis and you have many different international tensions are flaring gold displayed why such big investment in times of great challenge.
There are many ways that you the up and down movements in the gold price can benefit. One way is to play the long side, that where you are speculating is that prices will rise in the future. Another way is to play the short side, which is when you are speculating that the prices will decrease in the future. When you are going to trade one of the different raw materials, it is important to pay attention to the tick occurs.
This is where such as futures contract is bought or shorted is reflected by a positive or a negative number down up tick tick. What you want to do is enter a position on a negative tick below if you plan on going long or a positive to tick on the short side, help you when entering the futures contract at the right time. A common strategy used to trade gold is the straddle, which is where you go long and short at the same time. The idea is to buy both commands on the same price and time frame so you can take advantage of the volatility to earn money.

Online gold trading-a close look at the meteoric rise of gold

Online gold trading has hit record levels this year. Gold, in terms of value, has risen 19% this year and hit a high of $ 1072/ounce on 14 October. This comes as no surprise if the US Dollar Index which measures the currency compared to those of the six main trading partners, fell to a low 14 month 1 day after gold hit its record high 2009.
What are the underlying factors for the meteoric rise of gold?
-As mentioned in the introduction of this article, is one of the main reasons for the advance of gold the rapid deterioration of the US Dollar. This deterioration in the reserve currency of the world has mainly fed by the Federal Reserve that the past two years has begun an unprecedented program of quantitative easing. The Fed along with other central banks around the world have collective approximately 11.7 trillion pumped into their economies in an attempt to combat the credit crisis. The huge sums of money that the Fed is printed while investors keep rates close to zero has seen to dump the dollar and diversify into other asset classes. One of the main beneficiaries, of course, has its gold, as many investors around the world the precious metal as an alternative currency and a hedge against currency devaluation perceive.
Inflation expectations are now at a very low level with central banks around the world currently interest at a record low level and the pumping of huge sums of money in their economies, but investors are fully aware that once the global economy recovers fully than central banks will aggressively hike interest rates in an attempt to reach the future inflation which threatens to curb record levels and difficult to contain. It is therefore another reason for the increase of gold that investors are hedging yourself against future inflation.
-The broad base commodities rally in recent months also has an impact on the price of gold. After hitting a low point of crude oil broke $ 33 a barrel earlier this year, the met by a very strong bid Show and this week above the 80 dollar per barrel level. Traditionally if oil producers deserve more money, that they tend to buy gold for diversification.
Companies that produce gold traditionally enter the futures markets to sell gold for delivery at some point in the future. This hedging behaviour by producers of gold is performed to compensate for the risk that prices could fall between now and then. However, with online gold trading at record levels this hedging mentality by producers of gold decreases. Instead, producers of gold are unwind their hedges and in order to do this they must buy gold which ultimately pushes up the price of gold even more.
Finally, gold prices continue to rise in the medium term under current market conditions and a printout of $ 1150 $ 1250/ounce is a realistic goal for the precious metal.

The growing popularity of Online gold trading

Gold is already years one of the few commodities that is always in demand. It has always remained in trend and considered the best raw materials for investing. Things are still not changed and if we carefully look at the current situation with the great recession, our money to invest monetary in gold still seems like the perfect choice. Although in the past few years there has been a drastic increase in the price of gold, but according to the market experts it is still a wise decision to the portfolio diversification and gold trading is definitely the perfect choice.
Online Trading gold
Gold is still a strong performer. In fact, there is an increase in the demand of gold in the past few years, and is further stimulating demand on a daily basis. Consequently, investors are looking for different ways to keep track of the price of gold all at ease to trade continuously at the most appropriate price. Fortunately there is one platform called "Internet" who actually encounter in this next question helps.
Gold is today one of the most heavily traded goods online and many people from all over the world are considering for online gold trading. Offering high return on investment, this concept of online gold trading has won widespread popularity. These days there are plenty of websites where an investor can open his or her accounts and depositing of money that is exchanged for digital gold and used for trade between the various funds.
Why Online gold trading has popularity?
The concept of online trading of gold has created a new platform for investors and traders adjust their trading strategies as per their own taste. A trader or investor can gold as a hedge against inflation, long-term and safe as an investment or even coins to turn into storage can buy.
Apart from this are that some of the most important cards in favor of electronic gold trading snatch:
Global Trading-Online Trading offers a best platform to enjoy the gold trade from any part of the world. It is not essential for trader physically while performing a gold trading to be present. Instant trade execution-rather, the traditional method of purchase and trade gold was something that generally took a lot more time, but with online buying and selling of gold, the entire trade process has become time efficiently. Superior Trading functionality-an online trade of gold also offer numerous markets where a trader easily can choose between the import export gold market or the fair. This superior trade functionality helps to diversify his or her portfolio and spreading risk accordingly. Direct access to real market price-The gold market often changes around the world. But online gold trading can be more exciting as it offers numerous online resources that can help keep track of real-time Gold price. It also offers to display charts the performance of gold in a certain period of time in comparison with previous years.
This new internet trading system has definitely redefined the process of gold trading. No estate agents are required to operate on behalf of customers such as automatically generated throughout the approval process online brokerage. Indeed by traders and individuals to conduct trade of House, it has allowed the immediate access to their own gold reserves.

FX Online Trading-Top 9 essential Trading Tools for the Beginner Fx

With more than 3.2 trillion traded daily OTC (Over The Counter), it is no wonder that Fx online trading has during the recession where a simple trade levers as high as 100: 1 with sensational returns-and stunning losses can deliver as addictive has become.
The first month is make or break time for Fx beginners who with little or no experience make the mistake of the use of money with them must not lose and what they had savings in a blink of an eye.
Of course some get lucky, but discretionary trading will not live outside the mechanical trade like there just isn't discipline.
If you are brand new to Fx online trading then it is essential that you equip yourself with the following tools when you choose your trading platform:
1) make sure you get personal one-on-one training with who ever platform you choose to trade with. This training will be conducted through an online chat system.
2) make sure you receive an ideal to start with a free guide to get familiar with all the glossary and Forex chat.
3) make sure you have access to a tool that will give you information on which currency pairs are trading successfully and the overall structure of these listings.
4) make sure you are receiving SMS messages by the minute to minute keep tabs on every major fluctuations.
5) make sure you receive daily reports each days to assess progress.
6) make sure you are advised of signals on all majors, gold and oil.
7) make sure you have a good relationship with your personal dealer.
8) to ensure that you receive higher than normal levers Fx online trading platforms.
9) custom request technical reports tailored to your style.
If you are lucky to have access to all of the above 9 trading tools have then this is the fundamental key to successful in online Fx trading.

Gold Futures gold trading

With the world economy in total chaos is gold futures and gold trading in heavy Exchange. In terms of the layman, you have all assets invested in stocks, bonds, mutual funds or CDs, run, don't walk to your broker investment and strong buying in the gold investment.
Gold futures are speculating on serious economic adjustments that will leave precious metals as the singular financial trade tools, left to survive the financial storm that is currently volatile and expected to explode in the very near future.
Gold trading and buy gold are in a fever pitch at every level of the fair with the local entrepreneurs who offer money for your gold. Smart buyers try to buy as much gold raw materials as possible. Sale of gold is widespread.
Sales of gold jewelry and cashing in now, is big business and directly related to the economic storm that is highly anticipated to hit very soon. The thinking is, if you have a lot of gold itself, you will be able to survive financially, whereas it is not owning any precious metal, you are sure to suffer huge losses.
Gold futures, not unlike oil futures can sometimes be created on a false positive and this is why gold trading and other commodities can sometimes be overestimated, and back to more normal prices will settle. The decision to act and when to act is purely speculative and you are advised to look for the right counseling before you or exchange large investments.
Gold trading can be very profitable, but at prices currently hovering at $ 1400 per ounce, you can watch buy and sell silver at a more affordable price of around $ 30 an ounce.

Trading system that can trade all markets

Develop a good trading system is not easy. If you're looking for an ultimate trading system that can trade all markets, such as stocks, forex, futures, options, bonds, commodities Etfs than read this article. Professional traders are still many years to develop a winning system. Experienced traders know this fact that money flows from one market to another. So to make a fortune, you must follow the trail of hot money. Requires a universal system that can trade different markets. A system should be tested under different market conditions and its many statistics compared to other trading systems before a trader can satisfied with the results.
A can a stock trading system that can swing trading or day trading stocks develop overtime. A can a forex trading system that can swing trading or day trading the currency markets develop. But you can create a system that all types of markets, such as shares, forex, futures, options, commodities, bonds and Etfs can trade develop?
It takes a lot of experience trading different markets over the years to develop such a universal system. Technical analysis fundamentals are the same for almost all markets. It is in the use of technical indicators that difference comes.
In forex trading would be the Group of technical indicators which you give the best system totally different from, for example, that best for trade in crude oil futures or gold-futures. Something that works in the Forex market works the same way, not in the stock market.
So how do you go about designing a universal trading system that can successfully all markets trade? Hard taste, but Mark Soberman, the President of the such Netpicks system was developed. Its high speed market Master day trading or swing trade system can shares, forex, futures, options, bonds, commodities, ETFs and he is willing to disclose the details of his system.

Trading Instruments

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Price changes in the revenue opportunities created by high Foreksə join you!
Forex World Financial Markets with the highest daily trading turnover is a highly liquid stock exchange. Price changes for the participants in this exchange is able to correct proqnozlasdırmagı-hesabsızdır countless Specials.
Forex Trading in financial instruments with a variety of open free trade can:


CurrenciesMore than 100 trade with the currency pair you can take advantage of the unlimited income fursətlərindən. Foreksdə 70% of trade transactions in euros, dollars, pounds, francs and is being implemented with Japanese yenası.
Precious metals and energy carriersForex market is not only currencies, oil, gold, silver, tools of the trade as possible. In particular, changes in gold and oil prices for market participants to create a great income Specials.
Stock Market IndexesForex-AZ you DJI, Nasdaq, DAX, S & P500, FTSE, Hang, the world's known as the Nikkei stock market index and trading opportunity. The company, through its trading platform in London, Tokio, the world's major financial centers such as New York exchanges dəyərlərindəki index changes can earn you income.
Shares of international companiesForex-AZ through the world financial markets you can trade in shares of international companies attending. Take advantage of the well-known corporations səhmlərindəki price dəyisikliklərindən you.
Contracts Difference (CFD)Income from derivative financial instruments take advantage of you fursətlərindən.Forex-AZ Contracts for Difference (CFD) offers a wide range of financial instruments to trade. Contracts Difference (CFD) trading without a physical proportion of the instrument, as prices increase, as well as allowing advanced trading instruments enisində income.
FuturesAt present, financial markets, along with the standard tools of the trade-term investment instruments, with the opportunity to trade. Now, cotton, sugar beet, wheat, platinum and so on. You can also benefit from the goods-term trading conditions.All income earned by the world financial markets, trading in the Forex-AZ fərqiylə gercəkləsdirin you!Forex from A to Z alphabet

The growing popularity of online gold trading

Gold seit Jahren einer der wenigen Rohstoffe, die immer gefragt ist. Es hat immer blieb im Trend und als die beste Ware für Investitionen. Dinge noch nicht geändert haben, und wenn wir die derzeitige Situation mit der Währungsunion Rezession droht große sorgfältig betrachten, investieren unser Geld in Gold noch scheint die perfekte Wahl. Aber in den letzten paar Jahren hat es eine drastische Erhöhung der Preise für Gold, aber es ist Laut Marktexperten noch eine kluge Entscheidung, ein Portfolio zu diversifizieren und gold Handel ist auf jeden Fall die richtige Wahl.

Gold Online-Handel

Gold ist immer noch eine starke Performer. In der Tat hat es eine Zunahme der Nachfrage nach Gold in den letzten Jahren, und seine Forderung ist Förderung weiter auf einer täglichen Basis. Infolgedessen suchen Investoren verschiedene Möglichkeiten, den Preis des Goldes nach Belieben alles rund um die Uhr überwachen Handel am angemessenen Preis. Glücklicherweise gibt es eine Plattform namens "Internet", die tatsächlich treffen diese bevorstehende Nachfrage hilft.

Gold ist heute einer der am stärksten online gehandelten Waren und viele Menschen aus der ganzen Welt für den online Handel mit gold erwägen. Bietet hohen Return on Investment, dieses Konzept online gold Handel große Popularität gewonnen hat. Heutzutage gibt es zahlreiche Websites wo kann ein Anleger seine oder ihre Konten eröffnen und Geld, das für digitale Gold ausgetauscht und verwendet für den Handel zwischen den verschiedenen Fonds einzahlen.

Warum Online Gold Handel hat Popularität gewonnen?

Das Konzept der online-Handel von Gold hat eine neue Plattform für Investoren und Händler ihre Handelsstrategien nach ihrem Geschmack anpassen. Ein Händler oder Investor kann Gold als Absicherung gegen Inflation, als eine sichere und langfristige Investition oder möglicherweise sogar kaufen Münzen in Lagerung gesetzt.

Abgesehen davon sind, dass einige der großen Karten zugunsten des elektronischen gold Handel ziehen:

Global Trading-Online-Handel bietet eine optimale Plattform, gold Handel aus jedem Teil der Welt zu genießen. Es ist nicht wichtig für Händler zu physisch während der Durchführung einer gold Handel vorhanden sein.

Instant Trade Execution- früher, die traditionelle Methode des Kaufs und der Handel mit Gold war etwas, das in der Regel viel mehr Zeit nahm aber mit online Kauf und Verkauf von Gold, ist der gesamte Handel Prozess effizient geworden.

Superior-Handel-Funktionalität- ein online-Handel von Gold bieten auch zahlreiche Märkte, wo Händler problemlos zwischen den Import Export gold Markt oder die Börse wählen können. Dieses Superior Handel Funktionalität hilft in seinem Portfolio zu diversifizieren und verbreitet Risiko entsprechend.

Direkter Zugriff auf reale Marktpreis-Der Goldmarkt Änderungen häufig auf der ganzen Welt. Online gold Handel kann jedoch spannender als es zahlreiche online-Ressourcen, die helfen können bietet, in der Verfolgung Echtzeit gold Preis. Es bietet auch Diagramme zeigen die Leistung von Gold über einen angegebenen Zeitraum im Vergleich zu den Vorjahren.

Diese neue Internet-trading System hat sicherlich den Prozess der gold Handel neu definiert. Keine Makler sind verpflichtet, im Namen des Kunden tätig sind, wie der gesamte Vermittlung Genehmigungsprozess automatisch online generiert wird. Dadurch, dass Händler und Privatpersonen, Geschäfte von zu Hause aus durchzuführen, hat es in der Tat den sofortigen Zugriff auf ihre eigenen Goldreserven erlaubt.

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Advantages of Trading Gold Over the Stock Market

For many people the current bear market is causing second thoughts about possible investments in stocks with countless numbers of investors citing the never ending selling pressure and negative news as reasons for this kind of thinking. While this is no doubt understandable, you can be able to trade gold futures as a way to make money during these challenging times. As the price of the precious metal reaches all time highs it appears that the luster in gold futures trading will continue to be a great way to make money for some time to come. When you compare this outlook for gold futures to stocks it is clear that gold offers many advantages that you simply do not have in any stock such as:

One, you can make more money faster than with the stock market. Gold prices rise and fall very quickly and by big amounts, making it possible to cash in big.

Two, you can trade all directions of the markets, when you do gold futures trading you an speculate that the price is going to rise by purchasing a call, you can bet that the price is going to fall by purchasing puts or you can use straddles as a way to be able to make money off of the volatility that is taking place.

Three, you can use them as a way to generate income, when you sell calls or puts in the pen market you can use gold futures as a way to be able to make income. What happens is when you are selling calls or puts, someone in the open market is willing to buy them from you paying a premium (which is the right to purchase the future at a particular price) if the either the call or put does not reach the desired level (strike price) then you keep the money.

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Day Trading Profits Secrets - Trading ETF's

Trading an ETF or Exchange Traded Fund is a viable option to trading some of the big futures contracts such as Natural Gas and Gold. The reason to do this would be to use a much smaller margin and reduce your risk exposure to the trade. ETF's are similar to traditional mutual funds, they are structured as open end management companies. ETF's are Traded as CFD's. (contract for difference) Have a look on your trading platform. You will see the full range available.

To simplify, an ETF is a way of trading a group of, or single commodities in much the same way as you would trade stocks and shares. If for example you wanted to trade 1 Natural Gas futures contract your margin would be around $7000,(57,000) but you could get exposure to this market by trading 10,000 ETF's-CFD's, with a margin as small as $550. ($106,000)

In the above example the futures contract has a higher margin cost for a lower overall contract value, but the value per point is much higher for the futures contract and therefore is considered to be far more risky, hence the higher margin.

This may sound confusing but those familiar with trading stocks as CFD's will have no trouble adapting to the ETF. Another reason you may want to trade them is that, say you want to trade gold, but your not sure about taking a futures trade. You could buy some stocks or CFD's in a gold mining company.

The problem here is that the value of the stock may not be linked to the gold price, if for example the gold mining company was having some management or location problems. A gold mine in Tanzania is a t risk of theft; this could affect its price even if the price of gold was rising.

So now you could buy some ETF CFD's in Gold. You control your exposure. And you can buy and sell in the blink of an eye as with any other platform traded instrument. If you are a more sophisticated trader you may use your old ETF's as a hedge for your gold futures contracts.

In this example

Here is a list of some of the most common.

DBA power shares agricultural fund wheat corn and soya beans

DBD base metals fund aluminum copper

DBC general overall commodity index, heavily weighted to crude oil

DBE energy fund crude heating natural gas

DBO pure oil fund replicates behaviour to oil

DBP precious metals gold and silver

DBS silver fund

DGL pure gold fund

UNG natural gas fund

Don't let the unfamiliarity of any traded product stop you. It is just a matter of researching the market and asking questions of your broker. But be sure you have a good understanding before trading.

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Dollar Index Futures & Correlations to Crude Oil & Gold Futures Trading

Scalpers, Intra-Day, Position & Swing traders alike benefit from the correlations seen between the US Dollar Futures Index (DX) & Commodity Futures such as Gold (GC) & Crude Oil (GC). The US Dollar Index Futures is one of the most widely-recognized electronically-trader markets in the world. Comparing the USD against a basket of major currencies, this futures index has relatively low daily trading volume compared to Euro or Pound, and is primarily used for its strong correlations to aid traders in many different situations. Professional traders watch the Dollar Index at the times it is most active, which occurs from 8am to 12pm EST during trading days. The times also correspond well with Crude Oil & Gold futures, which also see more activity at these times as well.There are many ways to use the US Dollar Index for trading opportunities, but most traders find the DX to be most consistently-used as a filter for high-risk trades.

Let's first discuss the basic correlation that traders use. There is a negative correlation between the DX and almost every other market that traders watch. The Dollar is negative to other currencies b/c it's the world reserve currency, and it's negative to commodities b/c of the simple laws of supply and demand. Let's focus on the correlation to Gold & Crude Oil Futures.

(When the Dollar is rising, Crude Oil & Gold falls)

As traders, there are lots of different times in the day when the dollar begins to move more dramatically, such as the open of the US Markets @ 9:30am EST, before and after major news events such as Jobless Claims Reports or FOMC News. We look for the Dollar to begin its trend, and using the negative correlation between these markets, we look for crude oil & gold opportunities to the opposite of the dollar's trend. When the Dollar is trending, traders use Breakout Patterns to capitalize on this correlation. With the dollar rising, look for high-percentage entries to the short side of Gold or Crude Oil Futures.

(When the Dollar is flat, the Crude Oil & Gold is flat)

Most traders will use the Dollar correlation as a filter because it allows them to avoid high-risk entries on Gold & Crude Oil Futures. Without a trend on Dollar, the Gold & Crude Oil Futures also show flat price action, and tend to reverse their current trends often. The dollar has a tendency to get very choppy during indecisive times in the market, and we tend to stay away from higher-risk trading on Crude Oil & Gold during these times.

(When the Dollar is Flat, Traders use Trend-Reversal Patterns to Capitalize on this correlation)

Another important thing to watch on the Dollar is key Support & Resistance around simple chart patterns. For example, using a Head & Shoulders pattern on the Dollar, traders will avoid trading Gold & Crude Oil when the Dollar attempts to complete the trend reversal. Smart traders will wait to trade the reaction to the move around these extreme levels, rather than trying to be the first to enter the market when the Dollar here. In closing, the Dollar Index Futures can be used very effectively with a negative correlation with many of the market we love to trade. Of all the uses for this index, the most effective way most traders use the Dollar is as a filter, to avoid taking high-risk trades on other markets such as Crude Oil & Gold.

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Spread Trading Gold Vs Platinum

Many customers have been asking spread strategy questions and last week's action in the gold and platinum markets provides us with a wonderful opportunity to have this discussion.

The chart at the end of this article will provide more detail.

The red line on the bottom is how much gold is worth relative to platinum (gold close/platinum close). This is a monthly chart and you can see that the spread, along with platinum, have broken their trends going back to '01. This means that the prices of these two metals are converging. One should be short platinum and long gold. The way I see it, the price of platinum has been beaten up far worse than gold. I think the global slow- down scenario may be impacting the manufacturing base for platinum more than inflationary/deflationary issues are effecting the speculative nature of the gold market. Gold has also held above its trend line, in spite of the U.S. Dollar's significant rally.

Profitable spread trading requires more than predicting the general directions of the two markets involved. The size of the contracts, tick size and volatility also need to be considered. In this example, there is only one platinum contract to choose from. However, there are four actively traded gold contracts in three different sizes and on two different exchanges. Even the simple assumption that one full size contract of each should be sufficient would be incorrect. Recently, platinum is moving around $67 per day in the futures market and gold is moving around $25 per day. Would it be appropriate to try to even these out by trading two gold contracts versus one platinum contract?

Here is the method I use to appropriately size my spread trades. First of all, I calculate the average range for each market relative to the time frame I expect my trade occur in. In this case, I am looking at monthly charts. Therefore, I calculate the 21 day average range for each market and come up with $21 for gold and $67 for platinum. The next step is to multiply each of these average daily ranges by the market's point value. Gold is $21 X $100 = $2100 per day average movement. Platinum gives us $67 X 50 = $3350 in average per day movement.

Clearly, one full size contract of each is not an even spread. Now, since we know that we only have one platinum contract to work with, our only opportunity for proper sizing in the futures market (there are option strategies available, as well), is to look at the list of available gold contracts. One full size gold contract gets us to $2100 per day and leaves us with a $1200 per day deficit to make up. Chicago's mini sized gold contract is 33.2 oz. (1/3 full size). That would bring our total to $2793 on the gold side of the trade. This won't square the ledger. New York's mini sized gold contract is 50 oz. (1/2 full size). That would make our total $3150. That's pretty close. Obviously, the other option is to use two Chicago mini contracts and bring our total to $3486. At this point, it comes down to personal bias. Would one rather be more or, less long gold relative to platinum.

I hope this brief description answers more questions than it creates. However, please feel free to post any ideas, comments or, issues.

For further illustration. blog.commodityandderivativeadv.com/2008/09/09/spread-trading-gold-vs-platinum.aspx

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Commodity Futures Trading And Forex Trading - How Fortunes Are Made Today!

Many people are hooked to forex trading after the crash of the stock market in 2008. Infact in the last decade, many people become millionaires trading forex. It is being said that in this decade forex trading will create many more millionaires. Traders and investors are turning towards forex in droves. The opening of the retail forex market has been the most revolutionary development of the last decade.

Now, any small investor can start trading forex by opening a forex trading account with as little as $250. Retail forex market is experiencing unprecedented growth. This growth in the retail forex market is infact explosive. It is expected that this explosive growth in the retail forex market will continue in this decade. Spot forex trading is the name of the game.

But have you ever thought of Commodity Futures Trading? The money making potential of forex trading and commodity futures trading is staggering. Many fortunes have been made in the last few decades by ordinary traders trading these markets. Let me quote a few examples:

1. Bruce Kovner-He was a former NYC Taxi Cab driver who turned his $3,000 into $11 Billion in a few decades when he started trading forex and futures in 1977.

2. John Henry turned $16,000 into $1.3 Billion trading commodity futures. Now, he owns the Boston Red Sox, Fenway Part etc.

3. Ed Seykota turned his $5,000 into $15 Million in just under 12 years.

4. Richard Dennis is one of the trading legends who started with only $400 and turned that into $200 Million in the next decade.

Whatever, there are many more examples that can be quoted of ordinary people turning into millionaires and even billionaires trading forex and commodity futures.

Now, the futures market is a highly regulated market unlike the spot forex market that is unregulated and uncentralized. Futures trading is done through a Central Clearing House that makes it a regulated market with a better price discovery and better trade executions as compared to the spot forex market. You can trade many futures contracts that includes forex futures, commodity futures and a host of other contracts. You can trade dozens of commodity futures contracts that includes the agriculture commodity futures.

Right now, the gold market is in a bullish mood. Gold prices are hovering around $1,200 per ounce. It is being said that within the next year, gold prices can go as high as $2,500 per ounce. The same thing is happening to the silver market. Silver has six times more potential to skyrocket as compared to gold. Agriculture commodities like soybean, coffee, corn, cotton etc are in hot demand all over the world.

It is being said that the commodity market will be in a boom for many decades in the first part of the 21st century. This boom will be fueled by the rising population all over the world that would naturally yearn for these commodities to satisfy their demand for a better living.As the supply of these commodities is limited, the world will experience unprecedented commodity prices in the near future. Think about the oil prices reaching as high as $200 per barrel in the next few years.

Oil is one of the most heavily traded commodities in the world. Now, you can spot trade oil and gold from the same forex broker platform. Whatever, if you know spot forex trading, you can easily master commodity futures market. The basics are the same. There might be some difference in the details but the same technical indicators work in both the markets and the same theory behind price action works in both the markets.

Combining forex with commodity futures trading can make you a fortune in this decade. This is you chance to make your fortune now just like RIchard Dennis. Remember, he was also once upon a time a small time trader who had started with only $400. Don't hesitate, you chance to make a fortune is standing in front of you!

Trading Gold and Silver - When and Why to Buy Gold and Silver

In times of economic and political uncertainty traders are often advised to invest in gold and silver - the Precious Metals. But is this the right thing to do? Historically, investing in gold, silver or platinum was seen as a sure-fire way of protecting your wealth against the fluctuations in the economy during periods of political unrest or economic down turn. Gold still holds a special place in people's hearts as a means of 'storing' wealth during an economic crisis. However a closer look at the markets shows that buying gold during a financial crisis is not in fact the best option for people looking for a return on their investment. Indeed the smart investor only needs to take a look at the relationship between the gold and silver markets and the US dollar to spot the problem. Over the past 35 years there has been an inverse relationship between the value of the US dollar and these precious metals. Put simply, the price of gold rises when the US dollar falls.
The price of gold rises during political unrest as people flood the market wanting to protect their assets, but it falls when a financial crisis actually hits and the smart money heads for the safety of US Government bonds and hence buying the US dollar. Therefore gold is not the safe haven it is thought to be during a financial crisis. In fact comparisons of the S&P500 index and the gold market has shown that while the price of gold may rise in times of economic and political instability, driven by people opting for the 'safe' option, so too can the S&P500 index. For example in 1979 gold rose from $1,042 at the beginning of the year to $1646 by January 1980. During the same time the S&P500 index rose from 97 to 117. This was during a period when we had the Iranian revolution, the US embassy hostage drama in Tehran, the Soviet invasion of Afghanistan, a second oil crisis and subsequent high inflation, and political turmoil in the UK. When the stock market dropped by 19% at the beginning of 1980, so too did gold - falling 30% during that year. So investing in gold during times of political uncertainty is no better or worse than investing in the S&P500 index.trading.com
During the 1990s, in the wave of the technology boom, people invested in US companies rather than the gold market. This increased the value of the US dollar but had a negative impact on the price of gold. Then, when the technology markets crashed, and the US Federal Reserve lowered interest rates to zero, the price of gold started to rise. It continued to rise as the US dollar was further devalued when the US government started deficit spending and waging a series of expensive wars. In fact the largest trends in the gold and silver markets have been a decline since 1980 (when the economy was booming) until 2001, followed by a continuous rally as the Government has struggled to reduce its deficit and curb its spending.
Another consideration when dealing in the Precious Metals market is that although the prices of gold, silver and platinum are usually strongly correlated and move together, occasionally gaps appear. For example platinum had a huge rally in 2008 and silver fell behind gold in 2010. Despite these fluctuations the markets will usually stabilize and synchronize eventually.
The best way to make the most of your investment capital is to buy gold (or silver) when there is intense political and economic uncertainty. But as soon as the financial crisis actually hits, move out of gold and into the US dollar. Remember to always keep your trading capital to the strongest possible currency. It is worth tracking all the major currencies, including the Euro, the Australian Dollar, British Pound, Swiss Franc, Singapore Dollar and Canadian dollar, so you pick the strongest currency for your base trading capital. Whether you are trading gold and silver or not, tracking the weekly commitment of traders data will give you an overall picture of the strength of the US dollar and therefore the best opportunities for investment during a financial crisis.etrad.com

Can gold save the eurozone?

NEW YORK (CNNMoney) - No end to the debt crisis in the euro zone in sight, there is no end in workflow solutions. The latter involves the use of gold as collateral.
The euro area central banks make up about 64% of the world's gold reserves, which havethe weight back.newyorknews.com
And it earlier, but was largely EUR before. It is therefore clear that the legal obstacles canbe overcome in order to meet all of the 17 euro countries.
But under the assumption that these challenges can be overcome, experts consider a real win-win opportunity.
"Historically, it is not a land use gold as an unusual security," said Jeffrey Nichols, Managing Director of American Precious Metals Advisors in New York.
The idea of ​​using gold as collateral rumored part of a broader proposal by the EuropeanCommission said on Wednesday. Although the plan does not explicitly discuss theconcept of gold as collateral, the experts said it was a plausible scenario.cnn money.com

Trading,Exchange,Currency

Simple sense of Forex (Forex currency exchange, currency) or any other country in the currency of a country's currency, exchange, buying and selling simultaneously. The EUR / USD USD / JPY currency pair like all the others because the world of fixed exchange rates and currency fluctuations will always be. 85% of daily turnover in currency trading has been taken. In general, four pairs of the investment: the Japanese yen, United States of America dollar, British pound and dollar for dollar the United States United States America United States dollars, euros, Swiss francs, or about EUR / USD, USD for / JPY, GBP / USD and USD / CHF pair is used on the register.stop: position 11 in 2001 were foreign exchange market (FX trading as well as to shorten the name) in one of the oldest and largest of the world has seen.'s main market, money, work 24 hours a dayAlways phrase "be careful!are allowed more time to review the error here is a list of common mistakes include: