Day Trading Digest

Knowledge is profit

Entries for September, 2011

Commitment of Traders - The Secrets This Report Possesses

Why should you follow the commitment of traders report? Also known as the COT, this report provides key information that allows individuals to get answers to their questions. It breaks down the open interest for all of the traded futures contracts into both short and long positions and by each type of player. In the market, this information can be of value to you.

Is Forex Trading Really Profitable?

There are thousands of sites online these days promising huge profits related to forex trading. Below is an explanation of why it is virtually impossible to be profitable in the long run and it is one of the worst investment decisions you can make.

How To Place Stop Loss Orders When Trading Forex

Money management means not risking more than a certain amount of your trading capital on any one trade. Commonly, a new trader is instructed to place his stop that many pips away from the market so that if the market moves against him, he will lose no more than that amount of money on a bad trade.

Options Expert Exposes What Is Option Trading

Many people who know me being an option trading expert approach me with the very same question. They ask what is option trading. Let me therefore explain this and illustrate on a few easy to understand examples. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.

Trading Psychology and How The Mind Works

motions are at the root of trading problems. Yes, emotions can interfere with concentration and performance, but that doesn’t mean that they are a primary cause. Indeed, emotional distress is as often the result of poor trading as the cause.