How to Leverage Market Forces By Trading the News
So, what is a market force? Simply, it is a force that moves a market. Volume could be a force, or news could be a force. There are many forces that could move a market. This year we have had several different forces moving the market. tarting out, all thought the market and economy would continue to boom and the month of January was a bull. Then the fear of inflation took over and the market dropped, only to have relief of that fear, and then the fear of a trade war emerged and down it went again. But earnings are on the horizon and the expectation is that they will be good, and up the market went. Trade war, inflation, and earnings are all basically news. So let's talk about trading news.Read More
Power Trading - Overcoming Market Intimidation
Trading. What an interesting subject. Almost everything is traded and at some time in your life you most likely have traded something. Even at early ages, did you ever trade your peanut butter and jelly sandwich for a ham sandwich in grade school? How about your time for a new TV. A product you made for money. Your money for something that you live in, drive, sleep on, or eat. It’s all trading.Read More
Do You Know And Understand Your Real Trading Personality?
No two traders are alike. Traders enter the markets with a wide variety of backgrounds, and come from all walks of life. Some are finance majors. Others are retired policemen, working mothers or students trading from their dorm rooms using free campus wi-fi. Each and every trader has a distinct, unique personality that governs their trading behavior.Read More
Performance Stress - Taming Your Trading Monsters
“What’s wrong with me? Why can’t I do what I’m supposed to do? I keep telling myself to stay calm and patient – let the trade come to me. But, before I know it, I’ve jumped into a trade that, I recognize later was never a possibility in my plan.
But I did it anyway. And, of course, it goes downhill after that. Then, I get gun shy and hesitate to take trades that are valid set ups. It’s frustrating. I know what to do, but when I’m really in the act of trading, I fall apart."
The Process of Becoming an Entrepreneurial Trader
You might ask, ‘‘If I am stuck in the Technical Trader’s Trap, how will I get out of it? And how do I turn myself into an Entrepreneurial Trader?’’ Or in other words, ‘‘How do I transform myself from a Frustrated Technical Junkie into a Successful Entrepreneurial Trader?’’
First of all, make sure you have entered the trading business for the right reasons.
It is true that successful trading can reward you with more money for less work and an independent lifestyle, but you need to understand that trading is not a get-rich-quick scheme. It takes hard work and dedication to get there.Read More
Day Trading and Algorithmic Trading in Futures
Whether you like them or hate them, day traders and algorithmic system traders, commonly referred to as “algos,” are here to stay. Both groups of traders bring additional liquidity to the marketplace, which is a positive. However, some would argue that the baggage they bring with them isn’t worth the additional liquidity. It is no secret that highly day traded markets such as the e-mini S&P experience additional volatility throughout the last hour of the trading session as day traders square their positions. In addition, it is difficult to deny that algo traders haven’t created a marketplace that sees severely abnormal prices at a relatively higher frequency. Nevertheless, the new challenges posed by aggressive day traders and high-frequency traders via computer algorithms aren’t all that different from the obstacles faced by traders during the heyday of open outcry trading; the antagonists are simply wearing a different mask.Read More
Trading with Wider Stops and Less Risk for Pennies on the Dollar
If you are a futures or Forex trader, this chapter will show you a strategy to reduce your risk to the current strategy you are trading. Stock traders sometimes buy puts to hedge their risks, but what about Forex traders or futures traders? The strategy in this article will discuss using Nadex as a hedge against risk for futures and Forex trades.Read More
Robert A. Green, CPA
Top 10 Tax Deductions For Active Traders
Active traders qualifying for trader tax status (TTS) maximize these deductions in the following ways:
1. Home-office (HO) deductions
Use the square footage or rooms method to allocate every expense of your home including mortgage interest, real estate taxes, rent, utilities, repairs and maintenance, insurance and depreciation. The IRS limits use of HO expenses by requiring business income to offset the deduction, except for the mortgage interest and real estate tax portion. Link the HO Form 8829 to TTS trading gains or transfer some to Schedule C to unlock the HO deduction. If you have trading losses, carry over unallowed HO deductions to subsequent tax year(s). Converting personal home expenses to business use is great.
Habits of a Successful Trader
Whether you are new to trading or a seasoned veteran, every trader has bad habits that they would like to change. Some habits are buried deep within and need to be brought to the surface so they can be identified and changed. A good way to identify and change habits that are affecting your trading is to look at the habits of successful traders. While reading this chapter, do a self-analysis of your habits by comparing them against the habits of successful traders. As you identify habits that you would like to change, write them down and describe what action you will take to change these habits. Then take the actions that you describe.Read More