Web Directory Featured Site
|
 |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Article Posts
 |
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 the stock to the earnings of the company, the EPS (earnings per share), the debt equity ratio and tons of other ratios. Although I have spent considerable time studying such ratios I discovered that you do not really need such information to be successful in day trading. I repeat, fundamental analysis plays a marginal role in day trading. In fact, most of the time, I don't follow it at all. If you still have reservations about ignoring fundamental analysis, I recommend trading ETFs (exchange traded funds) such as QQQQ which mirrors the movement of the NASDAQ 100. In essence, you are actually trading the index like a normal stock. Indexes usually have a huge number of stocks in them, making them less susceptible to company specific news. However if you are paranoid, then you might still want to follow the news of the major companies in the index. here is no lack of information and no end to analysis. Knowing the fundamentals might seem cool when you discuss company so and so over a cocktail party, but it will not help you rip money off Wall Street in day trading. Being able to remove fundamental analysis from the decision making process is also one of the reasons why I recommend trading Emini index futures. Paper Trading: Don't Ever Underestimate it! Paper trading refers to trading with virtual money, you do not use real money. You jot down in your notebook when you bought at what price and why. When you sell, you record in your notebook again why you sold and calculate the profit or loss associated with the trade. If you cannot make money by paper trading, you can forget about making money in real trading. Always test a new trading idea with paper trading first before using real money. Also start with paper trading after a long period of break, to help you get back in touch with trading. Although there is very little difference between paper trading and real trading in Emini, real trading is subjected to slippage and psychological factors come into play when you are using real money. Do not underestimate the impact of psychological factors on your trading. After you have a reasonable method and money management techniques, it is the psychological factors which will determine whether you make a profit or loss. Some traders have created software to paper trade. You push the buttons like you are doing real trading but only virtual money is involved and no real cash is used. The system will record down the time, price, symbol and the position opened or closed. This saves you the trouble of keeping a paper record. 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: 897
• 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
