Getting Started In Day Trading

By Davin Greenway

People have managed to make quite a bit of money by day trading, and this is a market in which people that have a very minute amount if capital can be capable of making a substantial amount of money. There is a lot of risk involved too, maybe more risk than in most the markets. Because of this, most people have certain fears about becoming involved in a market such as this. One popular market in day trading ebooks today is the futures market.

Though this is a very risky market, some experts state that it's only as risky as you make it. So long as you make sure you have a sound strategy for trading, you should come out fine. The problem is that a lot of people think it is just like trading socks, and therefore a lot of people tend to lose money. This is something that you need be well aware of before attempting to trade futures.

What Are Futures?

Futures are what are known as contracts, and they are transferable. They represent buying a stock or commodity at a set price. The one who holds this contract is bound to make the purchase, and the seller has to deliver on everything that happens to be in the contract. Futures aren't quite the same as options, simply because they're an obligation to buy and sell instead of allowing the buyer and seller the right to buy or sell the named asset.

In order to gain a profit from futures you'll need to do what is called speculative trading, based on changes in the asset price on the open market. Such changes and alterations may show gains, or losses, that might be huge, or very tiny depending on what happens.

Emini futures contracts are the most commonly traded contracts currently. Generally speaking, the ebooks one can download these days usually some form of emini trading system.

How And Why Are Futures Traded?

Futures trading is very popular, especially amongst day traders because a lot of these contracts are able to be traded at a minimal investment and there's a lot of markets capable of being traded like that. Regardless of the outlook of the market, you are free to trade futures whenever you wish. A long trade will be done if one expects the market to go up, and it will be sold as soon as the value shoots up. A short trade will be done so as to get the maximum value out of it.

Any trader that knows the market well and is good at trading will have the ability to turn a profit no matter what. A lot of traders watch the market tend rather than the direction of things simply because of this fact.

Futures trading can be risky, but any investor who has a good understanding of stock trading and how the market operates should be able to do well in futures trading. It involves being able to spot trends in the movements of the market; something which should be second nature to any experienced stock trader.

It's not hard to get started in futures trading, but it's not something to be jumped into headfirst if you're not an experienced trader already. Educate yourself about the market and read everything you can about this potentially very rewarding investment venue before you make a serious financial commitment in futures trading. - 23305

About the Author:

Davin Greenway is the owner of DaytradingInfo, a site that features the day trading ebook guide. The guide is targetted at those looking for a stock trading ebook.

What Happens To OTC Stocks

By Sam Nielson

A question that I'm asked over and over again by new traders is what will happen to their OTCBB stock should it move from the OTCBB to a major exchange like the NASDAQ.

Unless some special arrangement has been made, and you will know this from your brokerage firm, your stock will automatically transition to the Nasdaq.

Traders call this a jumper. Your shares will gain in value and they will automatically start trading on the NASDAQ.

If a change occurs in the ticker symbol, your brokerage house (Scottrade, Ameritrade, and so on) will contact you by your trading account and by regular snail mail.

But let me be clear about something. You are stupid if you think you can pick jumpers and make money at doing this.

Tom Cruise Crazy publishers will try and sell you an expensive subscription for stocks that go from the OTC to the Nasdaq. Jumpers that you can make 1,000%...3,500%, even 10,000% and more! Don't believe it. It's a scam.

In the hundreds of traders I've spoke with over the years, not one of them has told me that he made money from picking jumper stocks more than he lost.

Time for another dose of reality. Drink up. It doesn't cost that much more for a listing on a major exchange as it does on the OTCBB. If the company was such a good company, selling such a hot product, that had this great potential to jump from the OTC to the Nasdaq, then why didn't they just list on the Nasdaq in the first place? Hmmmmm? The main different between the two listings is not money, but the additional reporting requirements. Companies that list on the OTCBB don't want to disclose to investors what's really going on behind the PRs and they sure as hell don't want to provide this information on anything remotely close to a timely and regular basis.

That's the anti-moron truth. The main reason for a company to list on the OTC and not the NASDAQ in the first place is that they do not want to meet the stricter reporting requirements of a major exchange. They do not want investors looking at their financial statements. They do not want investors to know what is really going on.

The pink sheets is the only worse exchange on the planet. The OTCBB is one giant wanna be system set to favor scammers and bleed investors dry. More tomb stones exist in the Graveyard of Traders from the OTCBB market than any other market. Gambling in the OTCBB market is stupetarded. I should know, I had my life savings completely destroyed doing it by a company that was liquidated, and the CEO who is now in jail. This happens on major exchanges to but not nearly as much as the OTCBB.

Look, we are at a market bottom. There is no reason to gamble in the OTCBB market when you can buy stocks that trade on major exchanges for near OTCBB prices! Plus you have the additional protection that goes with stocks that are listed on major exchanges. - 23305

About the Author:

Written By Sam Nielson. To read more top trader articles go to what happens to my stock when it goes from otc to nasdaq

When The Out Of The Money Covered Call Writing Strategy Fails Miserably

By Marc Abrams

There are many investment training strategy websites and e-books that promise you incredible things. One of the more common stock market trading strategies taught is to sell covered call options on stocks. These websites maintain that you can earn monthly returns up to 10% or more using that very strategy! Sound good? Read on.

Under the right circumstances, impressive monthly returns can be achieved by selling out-of-the-money covered call options. This strategy has been successfully used by me. However, it is not without its disadvantages. The public has not been properly educated by the website and e-book marketers. This strategy is marketed as having low risk and being conservative. They leave you holding the bag when it all goes wrong.

Selling out-of-the-money covered calls works when the stock market is going up in value. They also work when the stock market is neutral, meaning the market trades sideways with little swing up or down. I don't know about you, but when was the last time the stock market traded sideways for any length of time?

We are currently in the midst of an extremely volatile market. The Dow frequently moves as much as 200 points either way in a single day. Hardly a profitable market for an out-of-the-money covered call writer. Your profits will start to evaporate once the stock you are holding starts to decline. I can assure you that profits can evaporate very quickly. I have seen the value of a stock drop from $10 to $1 over night! There is never enough premium on an option sale to cover that kind of decline.

You want the stock to get called, that is the key to out of the money covered call writing. Many so called experts do not want the stock to get called. They say you should keep the stock so you can continue to sell a covered call option on it in future months. This strategy is flawed. What you should do is select stocks that are moving up in value, in a rising market. Those stocks will make you the most money. I am happy when a stock gets called because I ended up making the profit that I expected.

What if the stock shoots way up in value? The stock simply gets called away if it rises up past the strike price and stays there through expiration. Isn't that what you wanted to begin with? Because you did not participate in those gains you may feel like you left money on the table. If that upsets you then just buy the stock outright and don't sell covered call options on that stock. Why not just let the stock get called away, take your profit and move on? Then look for another stock to buy and sell calls on for the next month.

Remember, you can create an excellent source of income selling out of the money covered calls in a rising stock market. However, the stock market we find ourselves in today is less than ideal for this strategy. There are other strategies, however, that offer significant protection in a declining or volatile stock market. - 23305

About the Author:

Marc Abrams Is A Certified Public Accountant With Over 15 Years of Financial And Investing Experience. Visit Marc's Website at http://www.rebuildingmyfuture.com To Learn More About Successful Covered Call Option Writing Strategies In Today's Stock Market.

What to Learn As a Forex Currency Trading Beginner

By Jane MacRae

Forex trading might seem like an exciting opportunity to many of us, but you can not just waltz into Forex market without knowing enough. There are many places to start learning as a Forex currency trading beginner, and we will just cover some basics in this article.

Do you know that the Forex market is the biggest financial market in the world? You may think that the stock market is big enough, but it can not quite measure up the size of the Forex market. Even if you add the futures market to the stock market, the Forex market would still have a bigger amount of money being traded every day.

In the past, only people with large capital are allowed to trade in the Forex market. Thanks to the presence of online trading companies, average investors can also have their share in this exciting field today. That being said, you still need to be able to afford the risk of financial loss.

When doing Forex Trading, people are actually buying and selling different currencies in the world. You buy one currency while sell another. As such, currency trading always involves pairs, and quotes of currencies also come in one currency against another. The major players include the U.S. dollar and the Canadian dollar (USD/CAD), the Euro and the U.S. dollar (EUR/USD), the U.S. dollar and the yen (USD/JPY) and the Australian dollar and the U.S. dollar (AUD/USD).

Forex trading also has a number of advantages compared to other types of financial investment. The transactions are fast because everything is electronic. You also are assured that there are often people who would want to trade with you. This is simply because there are so many people who are trading everyday and every hour of the day. You can buy and sell at anytime whenever you want to.

Perhaps the biggest attraction of Forex trading is its leverage. With a nearly unbelievable ratio of 200:1, you leverage capacity is simply huge. With very minimal initial cash you can already manage a large amount of currency. This is probably the main reason why the market is quite attractive for those who want to increase their earnings impressively.

It is wrong, however, to think that you can immediately get rich in Forex trading. People can lose too in currency trading. Those who do are often those who act impulsively with the hopes of getting rich instantaneously. If you do not take the time to learn the inner wheels of Forex trading and the technical aspects of leveraging, then you could lose everything you have put into currency trading.

For any Forex currency trading beginner, the best way to dive into this game is to get well-prepared in terms of knowledge, practice, budget and psychology. If you are just an average player, you can pick an online company who offers virtual trading with imaginary currencies without any substantial cost or loss on your part. So, position yourself as a beginner and start by playing small, you can improve quite quickly and steadily. - 23305

About the Author:

Click here for our review of a leading automatic forex trading software in the market, which will grant you an unfair advantage over your competitors. You may also like to check out this related article on how to learn forex trading online.

US Dollar Index Explained

By Ahmad Hassam

The US Dollar Index Futures Contracts are traded on the New York Board of Trade at Finex and at the Chicago Mercantile Exchange (CME). The US Dollar Index is widely quoted in the press and on quote services and is used by traders to get the big picture of the overall trend of the dollar.

The Federal Reserve Board had introduced the US Dollar Index in 2003. The index is the result of the Smithsonian Agreement that had replaced the Bretton Woods Agreement. The US Dollar Index is similar to the Feds Dollar Index which is a trade weighted index. The Fed gives value to each individual currency in the index based on how much it trades with the US.

However, the value of US Dollar Index and the Feds Dollar Index is different and it should not be confused with one another. The futures contract expires on March, June, September and December. The minimum tick on the US Dollar Index is 0.1 and equals $10.

The overall value of the contract on the index is 1,000 times the value of the index in dollars. Delivery is physical. It means that you receive dollars based on the value of the index on the second business day prior to the third Wednesday during the month of the expiring contract.

No trading limits are placed on the US Dollar Index. Trading hours are from 8.05 AM to 3:00 PM. There is overnight trading also from 7 PM to 10 PM. Delivery day of the US Dollar Index Futures Contract is the third Wednesday of the contract month.

The US Dollar Index was modified at the inception of the Euro. It is weighted in a way thats similar to the Feds trade weighted index as follows: Euro 57.6%, Japanese Yen 13.6%, Great Britain Pound 11.9%, Canadian Dollar 9.1%, Swedish Krona 4.2% and Swiss Franc 3.6%. The US Dollar Index is best used as an indicator of trends in the currency markets.

However, the US Dollar Index is not as good a trading vehicle as the individual currencies. The best way to trade the index is by using the currency mutual funds. One of the secrets of knowing trading success is understanding what kind of a person you are.

Spot Currency trading where you trade the spot currency market is not for the weak nerved. Suppose you are afraid of taking a coffee or bathroom break for the fear the market will move against you and in a blink of an eye you will end up with a margin call. In such a case you need to invest in currency mutual funds based on US Dollar Index and relax.

You can avoid a big part of the risk involved in trading spot currency market by trading currency mutual funds. You can have a pretty good idea as to how your fund is going to close at the end of the day if you check the dollar index a few times during the day. This will smooth your nerves and make you relax. If trading makes you tense and nervous, you should think about doing something else. Maybe trading is not for you. - 23305

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know Swing Trading. Learn Forex Trading!