Beginner Trader Blogs, Blogs for Beginner Stock Traders

Monday, July 30, 2007

Stock Market Weekly Advice July 30

The Week Ahead: Despite a strong GDP report showing a resilient and flexible economy, selling capped a wild week in the stock market. Tighter credit and a slower housing market are seen as big concerns going forward. Reports to watch include the construction spending numbers for June, consumer confidence figures for July, and the 2nd quarter employment cost index on Tuesday. With crude oil approaching new highs, watch the inventory report Wednesday and the ISM Manufacturing Survey. June factory orders are out on Thursday and the July jobs report on Friday.

Common Mistakes that DAT Traders Make

Winning in today’s financial markets is a hard task, especially for novice traders. Direct access trading of DAT can tremendously magnify a trader’s abilities; but it can also magnify his or her weaknesses. Below are some common mistakes that DAT traders make.

Friday, July 27, 2007

Black-Scholes Options Pricing Model

Black-Scholes model or Black-Scholes-Merton model was formulated in 1973 by Black, Scholes and Merton. The theory became widely popular and is some extend responsible for the current popularity of the derivates. Black-Scholes model and its variations are still widely used by options traders.

Thursday, July 26, 2007

Day Orders and GTC Orders

Good for Day Orders, popularly known as Day orders are unspecified orders which expires within the order entered day, unless executed. These orders usually have price points closer to the current market price. Day orders entered after the trading hour will remain open for the next trading day. They are better for traders trading with short-term goals.

GARP Stock Investing Strategy

GARP or Growth At a Reasonable Price is a hybrid stock market investing strategy which combines the merit of two most popular investing strategies named Growth Investing and Value Investing. The investors following GARP investing strategy looks for growth company stocks which are to some extent undervalued.

Wednesday, July 25, 2007

Elliot Wave Theory

Elliot Wave theory is one of the oldest and widely followed theories regarding the stock market trend. It was developed by R N Elliot in late 1920s. The theory has its root in the traders’ mind – “the continuous bullish trend force tempt to sell the products they holding and the continuous bearing trend attract them to buy more insruments.”

Monday, July 23, 2007

Pit Trading Vs Electronic Trading

Pit trading and electronic trading are the two major methods of trading used by traders trading financial products. Pit trading also known as floor trading is the trading of stocks or futures manually in the exchange floor, known as Pit. It was the main type of trading until late 1990s. But the introduction of electronic trading of stock and futures have certainly lowered the popularity of pit trading and now more and more pit traders are moving to electronic type.

Why Demo Trading Performance Better Than Actual One

Perhaps the most common question that novice traders ask themselves is “Why my demo trading performance is better than the actual one, even when I am trading with the same trading system and strategy?”

Friday, July 20, 2007

Stochastic Oscillator Momentum Indicator

Stochastic oscillator is one another most followed technical momentum indicator by traders trading almost all financial instruments like stock, futures and forex currencies. Stochastic oscillator was developed in late 1950s by George C Lane. It is one of the powerful tools to generate the market divergence signals.

Thursday, July 19, 2007

More Trading Tips for Online Traders

We have already discussed many tips useful for traders trading stocks, options, futures and forex. Here are some more.

Wednesday, July 18, 2007

Market Opening and Closing Prices

By definition the opening and closing prices are the first and the last traded price for a particular financial instrument respectively. When combined with previous day prices, they are good indicators of market trends. Today they are available from virtually all media and are widely used by both highly active and less active traders to find out trading opportunities.

Tuesday, July 17, 2007

Stock Market Trader Newsletter

The Week Ahead: In contrast to the nations chain store sales report, the government reported June retail sales had the biggest drop in 2 years with higher gas prices getting the blame. Despite this, the DOW pushed toward the psychologically important 14,000 level. Watch the June PPI and industrial production numbers on Tuesday, the June CPI and housing starts on Wednesday, Fed chairman Bernanke's semi-annual congressional testimony on Wednesday and Thursday, and June's leading economic indicators on Friday.

Monday, July 16, 2007

Bollinger Bands for Technical Analysis

Bollinger bands are one of the most widely used technical analysis tools by all types of traders trading stock, bonds, forex currencies etc. It was developed by John Bollinger. Bollinger bands consist of three bands. One middle band showing the simple/exponential moving average and two standard deviation bands plotted above and below the simple moving average band.

Saturday, July 14, 2007

Options Vs Futures - The Hot Dispute

Both options and futures were invented to limit or to avoid the trading loss because of market volatility some where in future. Both are fairly similar in their set up except in exercising methods. Options and futures are traded extensively today, are available for almost all financial instruments, and contribute largely for the stability of markets.

Thursday, July 12, 2007

Advantages of Online Futures Options Trading

Futures and options almost similar financial instruments invented to hedge the risks of trading loss in a point of time in near future. Futures options, as the name implies, are option contracts for futures. From their introduction in 1982 by CBOT for US Treasury bond futures, they became one of the popular financial instruments for active traders.

Trading Exchange-Traded Funds (ETFs)

Exchange-traded funds or ETF are traded just like the stocks. They are funds traded in exchanged like the stocks. Traders can buy them, hold them and sell them when ever they want. ETF have same set up like the mutual funds but with the ever changing net-asset value; the net-asset value (NAV) of mutual funds are calculated on daily basis.

Wednesday, July 11, 2007

What are Limit Orders?

Limit orders are one of the order entry practices by which the trader tells his or her broker to buy or sell stock (or any other financial instrument) at a specified price. Limit orders can be practiced by any type of traders want to limit their risks, especially in volatile market conditions.

Monday, July 9, 2007

Weekly Stock Review Letter 09 July

The Week Ahead: Despite declines in Gross Domestic Product, new hiring continued as evidenced by a steady employment report. This provided new evidence that the economy remains vibrant especially after May's numbers were revised upward and labor costs rose 3.9% year over year. Watch the wholesale inventories release on Tuesday, the jobless claims and International trade balance numbers on Thursday, and retail sales, import prices, and business inventory reports on Friday.

Importance of Stock PEG Ratio

Stock PEG (Price/Earnings to Growth) is one of the most popular stock market indices used to figure our tradable stocks. The stock PEG ratio is certainly more important to value investors who want to figure out good undervalued stocks with greater profit providing abilities.

Saturday, July 7, 2007

Forex Brokers Offering Mini Accounts

As you may know trading mini forex accounts holds many advantages, especially for small sale and less experienced traders. Forex mini accounts have also provided an opportunity to traders whose primary trading area is equities or derivates to come and make profit from forex market; and also to diversify their portfolio to reduce risks.

Wednesday, July 4, 2007

Currency Futures Trading - Overview

Currency futures trading suits all those who want to profit from the exchange rate uncertainties of the forex currency market. They had surely established as one of the best trading instruments in a short period of time. Currency futures can the day traded, swing traded or position traded according to the trading ability and profit goal of the traders.

Tuesday, July 3, 2007

LEAPS Options Trading Strategy

LEAPS or Long-term Equity AnticiPation Securities are option contract for an extended period of time. They are introduced in early 1990s and are quite popular among active option traders. LEAPS are similar to traditional options contracts except the long-term nature. Because of this extended expiration date, trading LEAPS are considered as “Investing” not “trading”.

Weekly Stock Market Letter July 2

The Week Ahead: The holiday week opens with increased volatility after news of a tame inflation report for core prices, but rising food and energy prices as oil pushed above the $70 a barrel level. Reports to watch will be the Institute for Supply Management's June numbers release on Monday and the June auto sales and factory orders on Tuesday. After the Independence Day market break on Wednesday, the weekly jobless claims along with crude oil and gasoline inventories arrives on Thursday. An important June employment report is due by Friday.

Sunday, July 1, 2007

What are Currency Swaps?

Currency swaps are exchange of different currencies for a period of time. After the period of time, the swap maturity, the exchange is reversed. Currency swaps are performed by companies of same or different nation(s) to improve their efficiency by dealing with suitable currency. According to national rules, currency swaps are not considered as loans and thus not to be included in company balance sheets.

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