Web Directory Featured Site
|
 |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Article Posts
 |
Types of Orders Placing orders is an art in itself. Beginners often do not know when to use market orders and limit orders. Different orders are used in different market conditions. But the limit order is the one that is most versatile. Understanding a limit order is essential to your trading success. I will only discuss the case for buying, the reasoning and mechanism is the same for shorting. Market Order In a market order, you are basically giving instructions to your broker to buy at the prevailing price. You cannot set what price you want to buy. Market orders might be prone to slippage in fast moving markets. For example, if you give a market order to buy 10 lots, 3 lots might be filled at $10, another 3 lots at $10.50 and the remaining 4 lots at $11.00. We usually use a market order when we need to get in or out of a market fast, such as when the market suddenly moves against you drastically. Limit Order A limit order is different from a market order in that you can specify the price at which you want to buy. For example, if you specify you want to buy 2 lots at $10, you will not get a fill at prices above $10. Hence a possible scenario is you get both 2 lots at $10, or 1 lot each at $10 and $9.50. The beauty for the limit order is that you will not get a fill unless the price is better than what you specified. Stop Order A stop order is better known as a stop loss order . In day trading stop loss is essential to your survivor. Some traders do not set a stop loss because they are monitoring their trades real-time. They feel that they can step in fast enough to close the position when the situation goes against them. However, in fast moving markets, you can very well lose $200 or more on a single contract in a matter of minutes. Setting a stop loss order removes the psychological hesitation to exit a position. From my experience, this is an absolute requirement, please master it and use it to your advantage. Assume you are currently long at $10 and you set the stop loss at $8, you are giving instructions to your broker to sell at market price when the price falls down to $8. When the price is above $8, the stop loss order lays dormant, it will turn into a market order only when the price hits $8 to save you from further losses. Note that a stop loss order is always used to exit a position. Hence if you are long, the stop loss order will give instructions to sell. If you are short, the stop loss order will give instructions to buy. Stop Limit Order A stop limit order is similar to a stop loss order, except that it will turn into a limit order at the predetermined price. For example, assume you are long at $10 and you set a stop limit order to sell at $8, when price falls to $8, the order will become a limit order at $8. Recall that limit order will assure you of a fill better than the price you specified. Hence, a limit order at $8 means that you get a fill at $8 and above. Michael Taylor is a professional trader and webmaster of www.daytradeemini.com He regular updates his trading blog at www.daytradeemini.com/blog with educational articles and trading records.
No Services have been Posted by this Member
Emini Futures S&P 500 and Nasdaq 100 : Basic Trading Info
summary This article explains what index futures are, it goes on to further explain the basics of Emini Futures S&P 500 and Nasdaq 100, stock symbols, tick size and their equivalent value in dollars. What are Index Futures? Future contracts originate from commodity trading. A future contract is an obligation to buy/sell a certain quantity of commodity at a specific date for a specific price determined at the outset of the contract. Future contracts are frequently used for hedging risks...
[Posted: 2010-01-14 21:50:06]
Day Trading Emini Futures --Types of Orders
Types of Orders Placing orders is an art in itself. Beginners often do not know when to use market orders and limit orders. Different orders are used in different market conditions. But the limit order is the one that is most versatile. Understanding a limit order is essential to your trading success. I will only discuss the case for buying, the reasoning and mechanism is the same for shorting. Market Order In a market order, you are basically giving instructions to your broker to buy at t...
[Posted: 2010-01-14 21:50:06]
FOMC minutes -- $2380 profit!
How's your first trading day? Not bad for me. I just made $2380 trading the NQ ( Emini Nasdaq 100 futures). It was virtually a riskless trade. I timed my trade just after the release for the December FOMC minutes at 1400. Why did the market go up? You don't need to know exactly why the market go up. Usually market reaction to FOMC minutes is limited. But today, th...
[Posted: 2010-01-14 21:50:06]
Emini Futures Day Trading : Fundamentals and Paper Trading
Emini Futures Day Trading : Fundamentals and Paper Trading Fundamental Analysis Fundamental analysis is a methodology for analysis of a company as a viable stock that you want to hold for long term. Fundamental analysis is more widespread in the world of investing since you are going to hold your companies for 10 to 20 years, you do not wish that your companies go bankrupt the next day. Some of the common ratios used are P/E ratios (price earnings ratios) which measures the relative price of...
[Posted: 2010-01-14 21:50:06]
Gap Closure in a tepid market --> $760 profits
5 Minutes Candlesticks NASDAQ 100 Market gapped up today on better than expected retail sales numbers... As we know, yesterday FOMC announced that they are going to leave the rate unchanged and that inflation is still up... Market reaction was muted at best.. From this we can deduce that market participants have mixed reactions about the economy ahead, bulls are not ...
[Posted: 2010-01-14 21:50:06]
MACD crossed zero line, bounce from Moving Average --> $690
5 min Nasdaq 100 Emini Hi, The market has been plunging from the morning session and its reasonable to expect either a retracement or a continuation of the downtrend in the afternoon session. After a slight pullback, at 13:55, price started to bounce off the moving averages with the short-term MACD crossing the zero line.... I shorted 1 contract ...
[Posted: 2010-01-14 21:50:06]
Hammer Candlestick, Double Bottom, MACD up, Stochastics up, Employement report --> $940 profits
5 minutes Nasdaq Emini CandleStick Chart Hi, How's it going? I hope you captured this trade. This is a god send! Even from a fundamentals perspective, market sentiments are good. Better than expected payroll numbers is definitely good for stocks in a time when we are worried about a soft landing... You can read more about the fundamentals below: Do note that, no matt...
[Posted: 2010-01-14 21:50:06]
Core CPI unchanged , Inflationary Pressures Moderating --> Gap Up --> $640 profits
5 minutes Nasdaq 100 Emini Futures Hi, How's it going? Today price gapped up by almost 15 points due to better than expected CPI data. While what do we mean by better than expected? A bunch of economists expected the november CPI to increase by 0.2% but actual data turns out that the Novement CPI is unchanged. If you remembered economics 101, CPI is a measure of ...
[Posted: 2010-01-14 21:50:06]
No Link Exchanges Have Been Posted by this Member
No Social Media Has Been Posted by this Member.
No Employment Job Posts Have Been Submitted by this Member.
No Reviews Have Been Posted by this Member
No Youtube Videos Have Been Posted by this Member.
|
|
||||||||||||||||||
Member 26796 Scorecard
• Member's Page Visitors: 895
• Referral Points: 0
• Products: 0
• Coupons: 0
• Service Offers: No
• Reviews: No
• Articles: Yes
• Videos: No
• Active Link Exchange: No
• Accepts Link Exchange Requests: No
• Facebook Exchanges: No
• Twitter Exchanges: No
• Youtube Exchanges: No
• Googlebot Visits: 0
• Yahoobot Visits: 0
• MSNbot Visits: 0
• Join Date: 2006-12-04
