The actual design of a hedging strategy boils down to a simple, three-step process: Identify Suitable Securities A good hedge often uses the cheapest possible security that offers the protection needed. For example, in the retail situation above, using put options on the retail ETF may be cheaper than purchasing a full short position, while offering the same benefits as … [Read more...]
How to make consistent profits while trading in futures?
How to Make Consistent Profits Trading Futures One of the mistakes that we all consistently make in early trading days as a trader is to try to make too much money in relation to the trading capital. So what is a reasonable objective for a day / futures trader? it is a belief that if traders can regularly take small amounts of money out of the market, their knowledge, … [Read more...]
What is Law of Charts ?
The Law of Charts defines four basic formations known as 1-2-3 lows and highs, Ross hooks, trading ranges, and ledges. These occur in all time frames because the depict human action and reaction vis-à-vis price movement. What makes these formations unique is that they can be specifically defined. The ability to formulate a more precise definition sets these formations apart … [Read more...]
How professional traders optimize profits in futures spread trading ?
How professional traders optimize profits in futures spread trading ? Ever wondered what exactly is future spread trading , and how you or any investor can optimize their profits in future trading ?? here is the answers... What is Future Spread Trading ?? Futures spread trading is probably the most profitable, yet safest way to trade futures. Almost every professional … [Read more...]
How to Buy an IPO Stock
How to Buy IPO Stock An IPO is an initial public offering of stock for a corporation. Buying an IPO is usually left to either the wealthy or to those who have inside connections to the company or underwriters. However, there are a few times and ways that you can get in on an IPO. Get a trading account. You need a brokerage account to buy stock of any kind, but for an IPO, you … [Read more...]