The following are the most known data providers. (They are listed as supported by TradeStation):
Bloomberg
Reuters
Tenfore
eSignal
Showing posts with label Markets. Show all posts
Showing posts with label Markets. Show all posts
Making money with funds
A good fund doubles its value every 5-6 years.
(A mutual fund, diversified investing into growth stocks).
(A mutual fund, diversified investing into growth stocks).
SSF
Euroex offers now "Single Stock Future" contracts.
Sometimes spread can be better than on cash market.
Sometimes spread can be better than on cash market.
Pair Trading
Pair-trading is opening opposite position in different currencies that have some correlation like CHF with EUR against USD.
Exiting the trade when we get profit. Risk is limited by the fact the currences are correlated.
Exiting the trade when we get profit. Risk is limited by the fact the currences are correlated.
Hedging Against Slippage
Slippage in a falling share is big cost for the investor. However, if we know there is going to be slippage, it is possible to hedge it on a more luquid spread betting market (or CFD).
Simply, bet on the slippage while selling the share. It only works in your advantage if the price slips, in opposite moves there will be no profit.
Simply, bet on the slippage while selling the share. It only works in your advantage if the price slips, in opposite moves there will be no profit.
Stock Screeners
The folowing two website offers screeners for stocks (search for "Screener" or "Stockscreener")
http://finance.yahoo.com
http://moneycentral.msn.com
According to review MSN offers more.
Other screening softwares offered (not free, some has free servic but with limited functionality):
www.amex.com
www.bigcharts.marketwatch.com
www.etfzone.com
www.money.excite.com
www.hybrid.fi
www.morningstar.com
www.nasdaq.com
www.prerealtime.com - Supports currencies, commodities, futures.
www.stockcharts.com
www.zacks.com
http://finance.yahoo.com
http://moneycentral.msn.com
According to review MSN offers more.
Other screening softwares offered (not free, some has free servic but with limited functionality):
www.amex.com
www.bigcharts.marketwatch.com
www.etfzone.com
www.money.excite.com
www.hybrid.fi
www.morningstar.com
www.nasdaq.com
www.prerealtime.com - Supports currencies, commodities, futures.
www.stockcharts.com
www.zacks.com
Average lifetime
90% of daytraders give up. The avarage novice drops out in less than 6 months.
Industry avarge is 4% month if it is true.
Industry avarge is 4% month if it is true.
SuperSOES on NASDAQ
A new version of SOES (Small Order Execution System).
Orders can be directed on not directed (to a specific market maker). There are binding and non-binding orders. Binding orders forces ECNs to fill the order based on NASDAQ rules. In case of non-binding orders, market makers have 5 seconds to decide. Orders are filled in 0.8 sec. Large trading volume can slow SuperSOES.
There are 9 ECNs: INCA, MSCO, BTRD, GSCO, ARCA, MASH, ATTN, SBSH, REDI, ISLD, MLCO, LEHM. And more to come.
Archipelago is not considered ECN but an exchange itself.
Archipelago is active, Island is passive. Means archipelago arcitvily try to match the order at other firms. In case of Island, it just put in the order book which makes it faster.
Orders can be directed on not directed (to a specific market maker). There are binding and non-binding orders. Binding orders forces ECNs to fill the order based on NASDAQ rules. In case of non-binding orders, market makers have 5 seconds to decide. Orders are filled in 0.8 sec. Large trading volume can slow SuperSOES.
There are 9 ECNs: INCA, MSCO, BTRD, GSCO, ARCA, MASH, ATTN, SBSH, REDI, ISLD, MLCO, LEHM. And more to come.
Archipelago is not considered ECN but an exchange itself.
Archipelago is active, Island is passive. Means archipelago arcitvily try to match the order at other firms. In case of Island, it just put in the order book which makes it faster.
Trading System
All of the systems on the below list perform 75-145% annually:
Open trading systems are I-Master from Keith Fitschen/Murray Rugglero (S&P, Russel 2K, Nasdaq, Mini-Value) and Balance Point from Daytrading Education (S&P).
Blackbox trading system for currencies: EuroTrader from eForex (Euro), Mesa T-Notes from John Ehlrers/Mike Barna (US Bonds), Market Rider from Parviz Harnedanian (Currencies), Dollar Trader (Currencies) from Dave Fox.
However, the current top ten performs way better: www.futurestruth.com
Open trading systems are I-Master from Keith Fitschen/Murray Rugglero (S&P, Russel 2K, Nasdaq, Mini-Value) and Balance Point from Daytrading Education (S&P).
Blackbox trading system for currencies: EuroTrader from eForex (Euro), Mesa T-Notes from John Ehlrers/Mike Barna (US Bonds), Market Rider from Parviz Harnedanian (Currencies), Dollar Trader (Currencies) from Dave Fox.
However, the current top ten performs way better: www.futurestruth.com
Me vs Warren Buffet
The bigest names in Forex market are Warren Buffet (Berkshire-Hathaway), George Soros who made a fortune on a single trade.
And what I am most proud of that I had an opposite position with Buffet and I made profit on it - well at least on paper at that time.
The point of this article that small players play and win differently than big guys. Buffet played on the long term and I just made a quick proift (hit and run style).
And what I am most proud of that I had an opposite position with Buffet and I made profit on it - well at least on paper at that time.
The point of this article that small players play and win differently than big guys. Buffet played on the long term and I just made a quick proift (hit and run style).
Zero-Sum Game
This is a false belief again that many markets are zero-sum games, such as Forex, Options, etc. What that statement sais is basically, what you win, somebody else looses.
I myself would have learned about the markets long-long before if I would not have known that the "zero-sum" idea is a false belief. Or at least a half-truth.
Governments print money whenever they need. Or they print 'bonds" which is practically the same as printing money. Where is Forex zero sum?
Options are created similarly. You write one, and you sell it. Both options and futures are not an empty stuff used by speculators to gain some advantage in a global poker game called "futures market" or "options market". These are very important financial tools to hedge against future risk.
When a company writes a future contract. They are hedging against potential loss. Yes, they might "loose on the trade" but actually they did not. They already know months ago their exact profit on the books, because they already had months ago this future contract. There is no loss here, it is just a "locking in of profit". A good business. And on the other side of this trade, a speculator might lost or win some money in exchange for providing the financing for this company on this contract.
Or maybe, there is no speculator on the other side of this contract, just another company wanting to fix down the price today for the future. Nobody loose in this contract. They just agreed on the price between each other and they could not care less after this deal which way the entire market moves.
I myself would have learned about the markets long-long before if I would not have known that the "zero-sum" idea is a false belief. Or at least a half-truth.
Governments print money whenever they need. Or they print 'bonds" which is practically the same as printing money. Where is Forex zero sum?
Options are created similarly. You write one, and you sell it. Both options and futures are not an empty stuff used by speculators to gain some advantage in a global poker game called "futures market" or "options market". These are very important financial tools to hedge against future risk.
When a company writes a future contract. They are hedging against potential loss. Yes, they might "loose on the trade" but actually they did not. They already know months ago their exact profit on the books, because they already had months ago this future contract. There is no loss here, it is just a "locking in of profit". A good business. And on the other side of this trade, a speculator might lost or win some money in exchange for providing the financing for this company on this contract.
Or maybe, there is no speculator on the other side of this contract, just another company wanting to fix down the price today for the future. Nobody loose in this contract. They just agreed on the price between each other and they could not care less after this deal which way the entire market moves.
Exchanges
Only their Forex relevance marked here.
Generally, it is believed that Forex market impacts these markets. However, it is the actual markets of real products that make the world of foreign (currency) exchange. So I do believe, it is good to know the most important markets:
Beside trade flows, another example is money flow. Ff investors get their money away from NASDAQ, NYSE (Indices of these fall) and away from US dollar, the Forex market gets impacted, dollar falls.
Another example would be a growth in gold and silver investment can signal the fall of US dollar or the currency which is used buying these. People tend to buy gold when they are afraid of value loss of the currency.
A third example would be futures and options on currencies. Companies use these financial products to hedge against currency exposure. Growth interest in such products signals uncertainity about the future of a certain currency.
AMEX, American Stock Exchange, www.amex.com
CBoT, Chicago Board of Trade, www.cbot.com, financials and indices, raw materials
CME, Chicago Mercantil Exchange, www.cme.com, contracts, options on currencies, indices.
Eurex US, Eurex US, www.eurexus.com, contrats and American government stocs
ISE, International Secuirities Exchange, www.iseoptions.com
KCBT, Kansas City Board of Trade, www.kcbt.com
NQLX, Nasdaq, www.nasdaq.com
NYBoT, New York Board of Trade, www.nybot.com, contracts, options on indices
NYSE, New York Stock Exchange, www.nyse.com
NYMEX, New York Mercantile Exchange, www.nymex.com, energy-raw materials
ME, Montreal Exchange, www.me.org, futures and options on indices and interest rates.
EUREX, European Exchange, www.eurexchange.com,
Euronext.liffe, Euronext.liffe, www.liffe.com, futures and options on raw m. and interest products, indices.
IDEM, Italian Stock Exchange, IDEM, www.borsaitalia.it
MEFF, Spanish Official Exchange for Financial Futures and Options, www.meffrv.com
SWX, Swiss Exchange, www.swx.com
LSE, London Stock Exchange, www.londonstockexchagne.com
PSE, Prague Stock Exchange, www.pse.cz
WSE, Warsaw Stock Exchagne, www.wse.com
BUX, Budapest Stock Exchange, www.bux.hu, Since, I am Hungarian, I can joke about this. I think it is a terrible choice of a name. If you pronounce the world in Hungarian, it means "you loose".
TSE, Tokyo Stock Exchange, www.tse.or.jp, Since I trade JPY good to watch the index.
OSE, Osaka Securities Exchange, futures on indices and bonds.
TIFFE, Futures Exchange, www.tiffe.or.jp, Financial futures like Euroyen
TCE, Tokyo Commodity Exchange, www.ocorn.or.jp
OSAMEX, Osaka Mercantile Exchange, www.osamex.com, futures on metal and raw material
SGX, Singapore Exchange, www.ses.com.sg, Asian indices, bonds
HKFE, Hong Kong Futrues Exchange, www.hkex.com.hk
KOFEX, Korean Futures Exchange, www.kofex.com
KSE, Korea Stock Exchange, www.kse.or.kr
BSE, Bombay Stock Exchange, www.bseindia.com
RTS, Russian Stock Exchange, www.indx.ru
SPBEX, St. Petersburg Stock Exchange, www.spbex.ru
SNFE, Sidney Futures Exchange, www.sfe.com.au
ASX, Australian Exchange, www.asx.com.au
SAFEX, Securities Exchange South Africa, www.safex.co.za
Generally, it is believed that Forex market impacts these markets. However, it is the actual markets of real products that make the world of foreign (currency) exchange. So I do believe, it is good to know the most important markets:
Beside trade flows, another example is money flow. Ff investors get their money away from NASDAQ, NYSE (Indices of these fall) and away from US dollar, the Forex market gets impacted, dollar falls.
Another example would be a growth in gold and silver investment can signal the fall of US dollar or the currency which is used buying these. People tend to buy gold when they are afraid of value loss of the currency.
A third example would be futures and options on currencies. Companies use these financial products to hedge against currency exposure. Growth interest in such products signals uncertainity about the future of a certain currency.
AMEX, American Stock Exchange, www.amex.com
CBoT, Chicago Board of Trade, www.cbot.com, financials and indices, raw materials
CME, Chicago Mercantil Exchange, www.cme.com, contracts, options on currencies, indices.
Eurex US, Eurex US, www.eurexus.com, contrats and American government stocs
ISE, International Secuirities Exchange, www.iseoptions.com
KCBT, Kansas City Board of Trade, www.kcbt.com
NQLX, Nasdaq, www.nasdaq.com
NYBoT, New York Board of Trade, www.nybot.com, contracts, options on indices
NYSE, New York Stock Exchange, www.nyse.com
NYMEX, New York Mercantile Exchange, www.nymex.com, energy-raw materials
ME, Montreal Exchange, www.me.org, futures and options on indices and interest rates.
EUREX, European Exchange, www.eurexchange.com,
Euronext.liffe, Euronext.liffe, www.liffe.com, futures and options on raw m. and interest products, indices.
IDEM, Italian Stock Exchange, IDEM, www.borsaitalia.it
MEFF, Spanish Official Exchange for Financial Futures and Options, www.meffrv.com
SWX, Swiss Exchange, www.swx.com
LSE, London Stock Exchange, www.londonstockexchagne.com
PSE, Prague Stock Exchange, www.pse.cz
WSE, Warsaw Stock Exchagne, www.wse.com
BUX, Budapest Stock Exchange, www.bux.hu, Since, I am Hungarian, I can joke about this. I think it is a terrible choice of a name. If you pronounce the world in Hungarian, it means "you loose".
TSE, Tokyo Stock Exchange, www.tse.or.jp, Since I trade JPY good to watch the index.
OSE, Osaka Securities Exchange, futures on indices and bonds.
TIFFE, Futures Exchange, www.tiffe.or.jp, Financial futures like Euroyen
TCE, Tokyo Commodity Exchange, www.ocorn.or.jp
OSAMEX, Osaka Mercantile Exchange, www.osamex.com, futures on metal and raw material
SGX, Singapore Exchange, www.ses.com.sg, Asian indices, bonds
HKFE, Hong Kong Futrues Exchange, www.hkex.com.hk
KOFEX, Korean Futures Exchange, www.kofex.com
KSE, Korea Stock Exchange, www.kse.or.kr
BSE, Bombay Stock Exchange, www.bseindia.com
RTS, Russian Stock Exchange, www.indx.ru
SPBEX, St. Petersburg Stock Exchange, www.spbex.ru
SNFE, Sidney Futures Exchange, www.sfe.com.au
ASX, Australian Exchange, www.asx.com.au
SAFEX, Securities Exchange South Africa, www.safex.co.za
What moves the market?
Many people answer (indadquiatly) that if there are more buyers prices goes up, if there are more seller prices goes down.
This is not true.
For every sale, there is a buyer. For every buy, somebody is selling.
In fact, you could say that you are trading people not shares or currencies. Who is the greater fool the person who buys or the person who sells? And which one is you?
Prices moved by two factors:
This is not true.
For every sale, there is a buyer. For every buy, somebody is selling.
In fact, you could say that you are trading people not shares or currencies. Who is the greater fool the person who buys or the person who sells? And which one is you?
Prices moved by two factors:
- Supply vs demand (not buyers vs sellers)
- Manipulation by market makers (by people with a large pocket)
By the way, this is the reason why people monitor volume of trades not just the price. Volume will tell if the price was moved by real big demand or by just a temporay weak supply or demand. The volume tells this story.
Are you a Speculator?
In the world of Forex. Any individual who is exchanges currencies not because of an underlying product but for any other reason is considered a speculator.
Actually, this definition also applies to any other market, although, the legal (official) definition is quite a bit longer in the legal books.
E.g. a company importing jewelry from China is not a speculator as it needs currency exchange to execute the trade or to hedge against some risk. In short they buy currencies for use.
However, banks, individuals, professional investors are all can be considered as speculators. They buy, sell or hold currencies for profit which is the exact definition of a speculator.
Why is speculator a bad word?
I don't know.
There is no such thing as speculators vs investors based on the definition of the world. The opposite of the speculator is the "looser". Speculator trades for profit, losers on the other hand loose.
Speculators are Important
Speculators give value to the market and no free market can exist without them:
Actually, this definition also applies to any other market, although, the legal (official) definition is quite a bit longer in the legal books.
E.g. a company importing jewelry from China is not a speculator as it needs currency exchange to execute the trade or to hedge against some risk. In short they buy currencies for use.
However, banks, individuals, professional investors are all can be considered as speculators. They buy, sell or hold currencies for profit which is the exact definition of a speculator.
Why is speculator a bad word?
I don't know.
There is no such thing as speculators vs investors based on the definition of the world. The opposite of the speculator is the "looser". Speculator trades for profit, losers on the other hand loose.
Speculators are Important
Speculators give value to the market and no free market can exist without them:
- They provide liquidity to the market. Without them who would buy or sell you on certain days?
- They lessen the price swings (volatility) by their own activity to profit which is beneficial for the industry.
- Speculators (be big or small) who finance the activity of companies who are hedging their trading on the commodity futures market. So real companies with real products need the financing that speculators provide for their activities.
Speculators, actually, can be considered as the innocent guys who might loose their money just because they helped these companies by giving them their money on the future contracts if the large players (the actually companies) move the other directions - if the supply and demand changes.
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