Except for the rare well-funded prodigy, most traders aren’t ten year olds. Yet the simple advice you would give to a child on Halloween can translate to even the most seasoned traders.
If you are looking to make the markets less spooky this season, here are some trading tricks that can potentially translate to financial treats.
Beware of Fear and Greed Lurking in the Shadows
Just like the kid who has FOMO (fear of missing out) about not being able to attend the cool costume party at the popular girl’s house, traders often exhibit the same behavior. When a market makes headlines in the media, it doesn’t necessarily mean you should jump in and trade it just because everyone else is. While you may occasionally make money trading a newsworthy event, you have to have tools to find out if the major move has already happened. By the time the network ghosts and goblins start blabbing, it may often be too late.
Don’t Eat the Entire Candy Bowl
More isn’t necessarily better when it comes to trading. Nor is shoveling 25 random fun size candy bars into your face. You want to be able to take only the trades that fit your specific trading style that have the highest probability of success (or only eat the Reese’s peanut butter cups if that’s what you like). Depending on what type of trader you are, you need to find technical tools that are suited specifically to you.
Don’t Wear a Janet Yellen Costume
While a Super Mario costume may be a hit at the school’s parade, a Mario Draghi costume would not. Yes, dressing as a central banker probably won’t win any costume contests, but it is imperative to remember that Yellen and Draghi exert a tremendous influence on global markets. Their mere utterances have the ability to move not only FX pairs and interest rate futures, but markets across the globe.
Therefore, during Halloween, or any time, traders need to approach the markets from a global perspective. A central bank induced move in the EUR/USD or the price of gold will often impact individual stocks. The trick is how to quantify the influence these markets have upon one another. If you try to do it on your own without the help of the proper trading tools, you’ll have about as much success as trying to pass off raisins as a “fun” replacement to Halloween candy.
Don’t be haunted by your past results. It isn’t too late to turn things around and end the year by gobblin up some tasty profits. Following these simple yet satirical steps will make trading a bit less spooky this Halloween season.
As expected, the market showed various signs of volatility today as a result of the Fed’s announcement. Right around 1:30-2:00pm today we saw some crazy movement in both directions. So we wanted to know (more so, we wanted you to know), how did VantagePoint perform? Because if there’s one thing that trips traders up the most it’s unexpected movements due to outside forces, right?
So we put VantagePoint to the test. We look at forecasts for the Dow, the S&P 500 and Natural Gas to show you whether or not the software was able to withstand today’s volatility.
Whether you are an active day trader who can’t get enough action during the six and a half hours the stock exchanges are open or an investor looking for new profitable opportunities, after market trading offers an attractive option. The after-market can be especially profitable for traders who have an added technological edge, like VantagePoint Intermarket Analysis Software.
After Market Trading Defined
The stock markets have gone through many changes, from the old days of hand writing trades on chalk boards to the high speed electronic networks of today. Still, in the recent history of the exchanges, most traders could only buy and sell stocks during the regular business hours of major stock exchanges. For most US Exchanges (NYSE, NASDAQ,), regular business hours is typically defined as 9:30 AM – 4:00 PM Eastern Time. Trading before and after regular exchange hours first became available for large institutional players in the early 1990s.
Today a number of electronic trading networks (ETN) allow all investors to keep trading even when the big money players have stopped participating. Nearly all the major online brokerages and full-service brokerage firms will allow you to enter buy and sell orders for stocks to be executed after the exchanges close. Some may charge extra commissions and fees for after hours, but not all, so you’ll need to check with your broker.
However, with any investment there are inherent risks. Here are a few risks involved with after market trading:
- Increased volatility. While AAPL, NFLX, GOOG and the other names should be okay to trade in the after-market, for stocks with limited trading activity, you may find greater price fluctuations than you would have seen during regular trading hours.
- Lack of liquidity. During regular trading hours, it is easy to match buyers and sellers as there is sufficient interest on both sides of the market. During after-hours, there may be less trading volume for some stocks, making it more difficult to execute some of your trades.
- Bigger bid ask spread. Less trading activity could also mean wider spreads between the bid and offer prices. As a result, you may find it more difficult to get your order executed or to get as favorable a price as you could have during regular market hours resulting in slippage.
VantagePoint Provides an After-Market Edge
Considering the inherent risks, you need a tool to help you find profitable trading opportunities in the after-hours. VantagePoint can help as it forecasts the big trending or gap moves in a stock that often happen in the after-hours market due to an earnings announcement or other important news.
How can VantagePoint do this? By using intermarket analysis and a neural network process to find hidden patterns and relationships between markets, VantagePoint’s proprietary indicators provide short-term trend forecasts that anticipate trend changes. This process provides a unique perspective on markets that uses foresight, instead of hindsight, allowing you to find profitable opportunities if you are after market trading.
Today is “Back to the Future” Day, as was documented in the famous 1985 movie and rather than talk about fictitious movie scenes, we want to talk about profits – from Futures of course.
Most traders know that Futures trades often have big, trending moves and thus timing is the key to success in these markets. Too often though, traders will miss the onset of a big move because they’re relying on lagging indicators that fail to give them advance warning of a trend change.
A few weeks ago we demonstrated how traders can get into the Futures market with low margin. If you followed our forecasts back then you would have gotten into some incredible positions that led to lucrative profits as captured below.
- Natural Gas – 22-day position that resulted in $1890 profit per contract.
- US Dollar – 11-day position that resulted in $1427 profit per contract.
- Cocoa – 13-day position that resulted in $2170 profit per contract, followed by a 6 day position in the opposite direction that resulted in $1030 profit per contract. Total profit = $3200 over 19 days.
- Orange Juice – 20-day position that resulted in $2404 profit per contract followed by a 10-day position in the opposite direction that resulted in $3972 profit per contract. Total profit = $6376 over 30 days.
- Live Cattle – 17-day position that resulted in $6599 profit per contract followed by a 10-day position in the opposite direction that resulted in $5447 profit per contract. Total profit = $12,046 over 27 days.
Anyone who has been around the market for any meaningful period of time has learned many lessons that are invaluable for technical trading. One of those lesson is that trading a breakout can be one of the most profitable times to capture a big market move. With the right information, traders can receive early alerts to when a trade is about to breakout. Find out how to take a breakout trade using a predictive high and low.
What is a Breakout?
Like the name suggests, breakout trading is the practice of buying stocks or other assets as they “break out” above a prior resistance level or “break down” below a prior support level. Since support and resistance have previously acted as thresholds for the stock, when it moves beyond these levels it predicates a much larger move.
Here’s another way to think about it from the supply and demand perspective: If a resistance level indicates a glut of supply of shares of a stock at a particular price level then a breakout above that price level should mean that buyers have absorbed the excess supply above, and now those sellers are adjusting their ask prices to higher levels. This excess supply is what causes the stock’s price to go higher.
Challenges of Breakout Trading
While trading breakouts seems like a logical approach, fundamental and value investors can find the psychological aspects of breakout trading as an impediment. For example, on an upward breakout, it is counterintuitive for a value investor to wait to buy the stock at a higher price.
A Technological Assist
So how do individual traders gain the confidence to take breakout trade? As mentioned earlier, it’s all about having the right information from the right tools. VantagePoint’s predictive indicators give you a forecast of the stock’s next day’s move.
How can VantagePoint do this? By using intermarket analysis and a neural network process to find hidden patterns and relationships between markets. VantagePoint’s proprietary indicators provide short-term trend forecasts that anticipate trend changes instead of those that lag the market. This process provides a unique perspective on markets that uses foresight instead of hindsight giving you an early indication of when a trend may breakout. Couple this with the software’s accuracy, proven to be 86% accurate, you’ll have the confidence to take break-out trades and hold positions throughout times of volatility.
Want to start making more money as a trader but don’t feel like spending hours in front of your computer screen staring at charts and analysis? We hear you loud and clear. With so much information out there it’s easy to get lost. However, with the right trading tools, you can significantly reduce the time spent trading and significantly increase the profits you make. Sound too good to be true? Watch the short video below to see how to make more money in less time with VantagePoint.
In this video we demonstrate how to make $45 per share in less than 4 minutes.
By spending just a few minutes each day you can easily identify the most promising opportunities, filter out trades that don’t meet your criteria and take positions with a high degree of confidence using VantagePoint’s predictive technology.
Whether you’re currently trading stocks, ETFs or Forex I’m sure you know the value in diversifying your portfolio. One of the easiest ways to diversify without breaking the bank is to trade Futures. Certain softs, such as live cattle, sugar and cocoa have a very good margin ratio and in this video we demonstrate how to trade futures with low margin (specifically – how to turn a $3000 investment into $10,608 in just 17 days.)
Trade Futures – the Results
- Live Cattle – 17 day position to the downside resulted in $6500 profit per contract with an initial investment of about $1000 per contract.
- Sugar – 8 day position to the upside resulted in $1848 profit per contract with an initial investment of about $1000 per contract.
- Cococa – 8 day position to the downside resulted in $2,260 profit per contract with an initial investment of about $1000 per contract.
You can see how using this system to trade futures, with multiple contracts of these markets, you can quickly turn a substantial profit.
Birds of a feather flock together, right? The same can be said for sectors of the market. This phenomenon, commonly known as sector rotation, allows traders to take advantage of economic cycles in which sectors tend to move in the same direction at the same time. By being able to identify sectors that are able to start trending, traders can gain a significant edge in the market.
Watch the video below as we identify the downward trend of the Basic Materials sector as well as some recent swings to the upside in the Healthcare sector.
Profitable trading opportunities exist everyday but traders must know where to look and when to move. With predictive trading software such as VantagePoint – you’ll never miss a beat.