Funds Trading Blogs, Different Funds Trading Strategies

Wednesday, December 31, 2008

No Transaction Fee (NTF) Funds

Non Transaction Fee or NTF funds, also known as No Transaction Fee Mutual Funds, are no-load mutual funds without any commission charges. Like no-load mutual funds which are usually offered directly through the investment company without any commission charges, NTF funds are offered through a brokerage firm without any transaction fee.

Tuesday, December 30, 2008

What are Stop Entry Orders?

Stop entry orders are market entry orders placed at set price levels. These orders utilize stops as a way to enter into a trade rather than exit a trade by locking profit or minimizing risk (stop-loss orders). Stop entry orders work just opposite to limit entry orders. They are of two types.

Monday, December 29, 2008

Tomorrow Next Procedure in Forex Trading

Tomorrow Next or Tom Next or T/N is a common trading procedure in forex market; practiced solely for the purpose of avoiding taking delivery of currencies. Tom Next is a simple procedure which includes closing of open position on market daily close rate and opening a new position on the new market opening rate on next trading day.

Friday, December 26, 2008

Bearish Downside Tasuki Gap Pattern

Downside Tasuki Gap is a bearish trend-continuation candlestick pattern which indicates continuation of an existing downtrend, even after a bullish day. Bearish Tasuki gap is a rare pattern which usually favors short-sellers to profit from market. It is a three candlestick pattern which includes two bearish candlesticks and one bullish candlestick.

Wednesday, December 24, 2008

Ultra ETFs – Advantages and Disadvantages

Ultra ETFs or Leveraged ETFs are exchange traded funds which use leverage and derivative trading for double/triple the return. There are now a number of Ultra ETFs available for trading from ProShares, Rydex, ProFunds, etc. There are both advantages and disadvantages of trading these funds.

Tuesday, December 23, 2008

Weekly Market Review Letter, 22 December 2008

The Week Ahead: The markets finished mixed last week despite a government bailout of two of the three auto giants. With a short trading week ahead, all relevant data will be released inside of two days. Tuesday brings the final Q3 GDP report, new and existing home sales, and the Consumer Sentiment from the University of Michigan. Wednesday is a shortened trading day ahead of the holiday as personal income numbers, durable goods, and a jobless claims report are to be contended with.

Monday, December 22, 2008

Forex Spread Trading – Things to Know

Spread trading is one of the most popular currency trading strategies to profit from the rollover fee differences of different currency pairs. Here the trader buys a high interest currency pair (buys a high interest currency like GBP, NZD and AUD against a low interest currency like JPY or CHF). The trader then, for hedging the position holding risk, shorts a low interest currency pair (e.g.: CHF/JPY) having great correlation with the first currency pair.

Friday, December 19, 2008

Day Trading of Futures Contracts

Day trading of futures contracts is a trading strategy which need discipline, knowledge and experience. There are many liquid futures contracts and markets which can be day traded. Increased margin available for futures contracts make them perfect for day traders. But, to profit from day trading, the trader should have a good day trading plan, day trading software.

Thursday, December 18, 2008

Long shadow and Marubozo Candlesticks

Long shadow and Marubozo are single candlesticks which carry important trading information. Long shadows, as the name suggests, are candlesticks which have long shadows, which extend to the highest and lowest price of the day. They usually have small real-body which indicates opening and closing prices.

Tuesday, December 16, 2008

Forex Range Trading Strategy

Range trading is on of the most simple and widely followed trading strategies for trading different instruments including forex currencies. Ranging trading does not demand too much fundamental or technical analysis, it does not demand following/predicting trends and does not require to quickly responding to news.

Monday, December 15, 2008

Weekly Market Review Letter, 15 December 2008

The Week Ahead: Markets open this week with two important expectations. One is a resolution to the bailout of the major auto companies by a Bush White House plan. Two, the lowering again of the Fed Funds interest rate by the Federal Reserve by Tuesday after the initial meeting on Monday. Tuesday also brings the Consumer Price Index and the housing starts number. With oil having rebounded 14% an important OPEC meeting will be held on Wednesday. The jobless claims report and leading economic indicators arrive on Thursday.

Friday, December 12, 2008

Different Types of Preferred Stocks

There are many different types of preferred stocks, classified according to the type of preference they carry. Know more about preferred stocks. Some companies may issue more than one type of preferred stocks; usually named as group 1, group2 … stocks.

Thursday, December 11, 2008

Harami Cross Candlestick Patterns

Harami cross is a moderately reliable candlestick pattern which indicate the reversal of existing trend. Harami cross resembles harami, the only difference is that in harami cross the second day candlestick is a doji (in harami, it is a small bodied candlestick). The doji candlestick is completely lies inside the real-body of first day candlestick. There are both bullish and bearish versions of harami cross candlestick pattern.

Wednesday, December 10, 2008

Inverse ETF or Short ETF

Inverse Exchange Traded Funds (ETFs), also known as Short ETFs and Bear ETFs, are exchange traded funds which moves just against the index it is tracking. These ETFs are carefully constructed using derivatives or they follow complex advanced trading strategies to profit from the declining of falling markets. There are also ultra invest ETFs which offer double (or more than that) return.

Tuesday, December 9, 2008

Commodity Prices and Forex Trading

Trading currencies require more fundamental analysis knowledge than trading any other financial instrument; for profiting one should be aware of macro and micro economic changes. Rise and fall in commodity prices also plays a role in increasing and decreasing of currency pair prices. There are many currencies which show greater correlation (either positive or negative) with commodity prices.

Monday, December 8, 2008

Weekly Stock Market Review Letter, 8 December 2008

The Week Ahead: The worst monthly job loss since 1974 in November left over a 1/2 million people without work accelerating the already grim numbers for 2008 and signaling the worst recession in the post World War II era. Look for Congress to craft and vote on an auto bailout package this week. Watch the pending home sales number on Tuesday. Wholesale trade and import prices are due Wednesday and Thursday respectively. Friday brings retail sales and November's Producer Price Index.

Friday, December 5, 2008

Common Stock and Preferred Stock

Both common and preferred stocks are stocks issued by companies. Most company stocks which are publicly traded in an exchange are common stock. There are some key differences between common and preferred stocks.

Thursday, December 4, 2008

Abandoned Baby Candlestick Pattern

Abandoned baby is a rare but reliable candlestick pattern which indicates a trend reversal. This is a three candlestick pattern formed of three different candlesticks, a bearish candlestick, a bullish candlestick and a doji candlestick; the shadow of doji candlestick is gapped away from other two. There are two types of abandoned baby candlestick patters, bullish abandoned baby candlestick pattern and bearish abandoned baby candlestick pattern.

Wednesday, December 3, 2008

Capital Preservation Strategy

Capital preservation strategy is a portfolio management and investing strategy which aims at preservation of capital over maximization of return. The strategy is widely followed by many investors especially by persons nearing retirement.

Tuesday, December 2, 2008

ETF Dollar Cost Averaging

Dollar cost averaging (DCA) or systematic investment plan is one of the most popular investing strategies followed by many investors, especially small-scale investors who frequently invest small amounts. Know more about dollar cost averaging. Exchange traded funds (ETFs) are also good instruments to DCA but there are two factors to be concerned, expense ratio and trading costs.

Monday, December 1, 2008

Weekly Stock Market Letter, 1 December 2008

The Week Ahead: The volatility pendulum has swung to the positive side as a five day winning streak left equities with the best week in 34 years and an 18.5% gain since November 21. Reports to watch include: construction spending and ISM Manufacturing on Monday, auto sales on Tuesday, Q3 productivity along with the Fed's Beige Book of economic activity on Wednesday, factory orders, chain store sales, and jobless claims on Thursday, and finally the all important November Employment Report on Friday.