In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last post in 2013 on Feb 14th was a kind of open proposal expression through the priceless charts Love you by Finance Market Professional : Valentine day! , also today my blog turned-up 6 years old, and my first ever post was on the Mergers and Acquisitions in India! and the government policies .
Getting back to the topic for today A few years ago, somebody asking this question on market timings would have been dismissed as a nit-picking nerd, but today that question has become extremely important. Last week, the Wall Street Journal’s Money Beat blog ! carried an interesting story about how this difference cost a trader $100,000. Continue reading “At What Time the Market closes 4:00:00 PM or 4:00:01 PM”
Binary options are investment products taking the Internet by storm. If you are looking for ways to make money online or for new financial products, then you probably saw advertisements for binaries, including from adsense as they pop up everywhere. But what are exactly these binary options and are there for anyone?
To put it simply, binary options are equivalent to taking tailor-made bets on financial markets. Or not to sound too much like gamblers, let’s say they let you make predictions about future prices. Do you think gold will go up today? Then buy a one day call binary option on gold. If you are correct you can make a 70 to 85% profit. But if you are incorrect, and this is a big ‘but’ you will lose 100% of your option. Continue reading “The truth about binary options”
Planning your trade sounds like one of the most straightforward aspects to trading. Perhaps you sit down during the evening, scouring charts for the technical setups that you plan to enter the following day and go to sleep confident that the entry, stop and take-profit levels give you a high probability of success. This type of thorough planning is your key to success and the one thing which will provide you an edge when the market opens the following morning. This leaves the question of why so much of this planning goes out of the window as soon as you sit down in front of the live market the following day.
Failing to follow your trading plan is the single most influential element in losing money in any financial market. Similar to opening a bakery and deciding to sell shoes, losing focus on a trading plan creates confusion and, more dangerously, lets your emotions dictate the trade. Many traders prefer mechanical or even automatic trading systems for this very reason; the simple inability to follow their own trading plan and adhere strictly to the rules. Continue reading “Plan your trade, trade your plan”
For those who believe in the random market theory; there will be no way of explaining how it is possible to consistently
win with spread betting. This is because they believe that trading financial markets is akin to flipping a coin in terms of success or failure with each trade that we take. In other words it is gambling pure and simple.
What proponents of this theory fail to realise is that, although spread betting is governed under ‘gaming laws’ in the UK, those who manage to be consistently successful cannot be simply flipping a coin. These traders, of course, are not betting on the price of a stock, currency or commodity going up or down simply as the result of a wild guess, but have highly systematic and thought-out plans of how each trade will be successful. Continue reading “A Thought-out approach to spread betting”
As we come to the end of the year, I want to encourage and challenge my readers to think about their trading performance. Working toward trading competence is a path, not a destination. Whether you are an experienced trader who is very pleased with your performance, a struggling developing trader, or someone who has just begun her journey, I’d like you to spend a few hours in self-reflection and ask yourself a few simple, but profoundly important questions: