MadMarketScientist

Looking into it ... stay tuned thanks MMS

TradersLaboratory Newsletter - May 5, 2012 This newsletter is brought to you by our sponsor NinjaTrader Unleash Your Trading Potential with NinjaTrader | Traders Laboratory Registration TOP POSTS & THREADS [1]Term Of The Week: Dollar Bear A Dollar Bear is a forex trader with a negative view for the outlook of the US Dollar. Generally, Dollar Bears will look to “short” ... [2]Read More Links: 1. http://www.traderslaboratory.com/forums/trading-dictionary/12771-dollar-bear.html [3]Market Close High Volume I am just beginning to trade and I have serious doubts about ultra high volume at closing time. I noticed that every single day or 2 there is ultra high volume at close and surprisingly the ... Links: 3. http://www.traderslaboratory.com/forums/volume-spread-analysis/12961-market-close-high-volume.html [4]The Illusion of Control: The First Step to Emotional Sobriety in Trading It was the start of another trading day, and John was ready. “This day is going to be different. I am going to trade my plan – no matter what!” John said resolutely into his reflection in the ... Links: 4. http://www.traderslaboratory.com/forums/psychology/12958-illusion-control-first-step-emotional-sobriety.html [5]FX Club I'd like to know if anyone of you has an experience of trading with that Forex broker. There're lots of contradictory feedbacks on the Internet while my friends tell me that this company is well ... Links: 5. http://www.traderslaboratory.com/forums/brokers-data-feeds/11812-fx-club.html [6]Testing Day of Week, Time of Day MultiCharts, 24 Hour Forex Data Hi, I have an intraday forex system which is always in the market either long or short, average holding period just a few hours. I would like to study performance reports in MultiCharts based ... Links: 6. http://www.traderslaboratory.com/forums/coding-forum/12945-testing-day-week-time-day-multicharts.html [7]Psychopaths and Trading Traders can become compulsive gamblers. Financial psychopaths fit the well rounded job candidate profile. Eventually the behavior leads to forgery, fraud, theft, and embezzlement ... Links: 7. http://www.traderslaboratory.com/forums/trading-psychology/12972-psychopaths-trading.html [8]Options Log I will post up some of my options positions(not actual size though) here to see if anyone has some good feedback to perhaps help me some. I'm new to spread strategies ... Links: 8. http://www.traderslaboratory.com/forums/options-trading-laboratory/12873-options-log.html HOT TOPIC [9]Are You Ready for the Truth? You know as well as I do that traders read and read in their attempts to find that magic formula or secret ingredient that'll change them from being an "also ran" to a "champion trader". I like trading books and genuinely new ideas and ways of thinking in the market. I think it's important to challenge yourself and constantly evolve. But my thoughts are more about inexperienced traders and their lack of direction or understanding of what might truly make the difference to their trading. I have seen so many books ... Links: 9. http://www.traderslaboratory.com/forums/trading-psychology/12968-you-ready-truth.html

Here is all their info: http://www.traderslaboratory.com/forums/forex-broker-reviews/11962-forex-club.html?ltr=F

TradersLaboratory Newsletter - Apr 25, 2012 This newsletter is brought to you by our sponsor NinjaTrader Unleash Your Trading Potential with NinjaTrader | Traders Laboratory Registration TOP POSTS & THREADS [1]Better for scalping: ES or YM? I am mostly concerned about fill times i only trade 1-2 contracts of ES. But have had a lot of problems with fills as the posters above noted. I have not tried the YM but what is the difference ... Links: 1. http://www.traderslaboratory.com/forums/e-mini-futures-trading-laboratory/3214-better-scalping-es-ym-4.html#post147566 [2]Trading - My Beginning and Conclusion This would be my first post in entire /2 week long/ experience with forex trading. I have been reading day and night to learn and give myself best possible try on markets. I probably will shock ... Links: 2. http://www.traderslaboratory.com/forums/day-trading-scalping/12872-trading-my-beginning-conclusion.html [3]How Much Would You Pay to Learn from a Veteran Trader? How can you really check if the person is profitable or not? Not many are willing to show their accounts. I would pay a percentage of my winnings if I knew that the mentor who ... Links: 3. http://www.traderslaboratory.com/forums/futures-trading-laboratory/3619-how-much-would-you-pay-learn-8.html [4]MD FootPrint Chart Comparison with Different Data Feeds Hey guys. I currently have MD with zenfire and want to know if the footprint bid asks are accurate. Can someone post a 5min footprint of theirs for 6E or ES? It would be nice to compare ... Links: 4. http://www.traderslaboratory.com/forums/market-profile/9637-md-footprint-chart-comparison-different-data.html [5]Week 3 Trades- Spookywill We have a great entry Sunday night at 7. Go long off consolidation on the 30 min chart. Unfortunately it has already risen to 1374.50, the idea area would be 1373-1374. Long ... Links: 5. http://www.traderslaboratory.com/forums/e-mini-futures-trading-laboratory/12866-week-3-trades-spookywill.html [6]Stop Hunting Strategies It is widely understood that the forex is the most widely leveraged financial asset market in the world and this has some implications that many traders fail to consider. To get ... HOT TOPIC Links: 6. http://www.traderslaboratory.com/forums/forex/12874-stop-hunting-strategies.html [7]Seven Habits of Ineffective Traders Recently, a couple of people I know packed up and quit trading after struggling for a long time to hold their heads above water. They didn't make it. This isn't unusual, of course. This profession has a high failure rate. But it frustrated me. It frustrated me because I could see potential in them. I don't believe you have to be particularly talented or intelligent to be a successful trader, but these people seemed to have a grasp ... 7. http://www.traderslaboratory.com/forums/trading/12821-seven-habits-ineffective-traders.html

TradersLaboratory Newsletter - Apr 20, 2012 This newsletter is brought to you by our sponsor Mirus Futures MultiCharts with Zen-Fire Trading Demo | Mirus Futures TOP POSTS & THREADS [1]Term Of The Week: Speculative Attack A speculative attack is seen when market traders sell a currency in a drastic fashion. The term tends to be used by media outlets to describe excessive volatility as currency values ... Links: 1. http://www.traderslaboratory.com/forums/trading-dictionary/12855-speculative-attack.html [3]Price Patterns After some years, you start to memorize price movements. My favorite pair is GBP/USD so I watch it more carefully. I noticed that you can see very similar patterns over and over. I will .. Links: 3. http://www.traderslaboratory.com/forums/technical-analysis/12745-price-patterns.html [4]Economic Data is All Cock and Bull To anyone who tries to trade or invest based on economic releases and can't fathom why the market reacts the way it does, please take a look at this story and the video ... Links: 4. http://www.traderslaboratory.com/forums/trading-markets/12789-economic-data-all-cock-bull.html [5]Beyond Fear: Developing Your Inner Trader Despite their knowledge of trading, the vast majority of traders experience fear on a level that compromises their capacity to trade effectively. This problem eventually comes to a ... Links: 5. http://www.traderslaboratory.com/forums/psychology/12830-beyond-fear-developing-your-inner-trader.html [6]Bigger Picture in E-minis Discussion I wanted to start a thread to discuss longer term technical picture of the E-minis and thought it could be useful to not only e-mini day traders, but those looking to swing trade too ... Links: 6. http://www.traderslaboratory.com/forums/e-mini-futures-trading-laboratory/12736-bigger-picture-e-minis-discussion.html [7]Book Review: Unholy Grails - A New Road To Wealth In his third book “Unholy Grails – A New Road to Wealth” Nick Radge presents the straight forward yet frequently misunderstood concept of systematic momentum ... Links: 7. http://www.traderslaboratory.com/forums/book-reviews/12835-unholy-grails-new-road-wealth.html HOT TOPIC [8]Support & Resistance and Trading Trend Put simply, support is the price at which those who have enough money to make a difference are willing to show their support by retarding, halting, and reversing the decline by buying. Resistance is the price at which those who have enough money to make a difference attempt to retard, halt, and reverse a rise by selling. Whether one calls this money professional or big or smart or institutional or crooked or manipulative or (fill in the blank) is irrelevant. If repeated attempts to sell below this support level are met by buying which is sufficient to turn price back, these little reversals will eventually form a line, or zone. Ditto with resistance ... [9]Continue Reading... 8. http://www.traderslaboratory.com/forums/trading/12801-support-resistance-trading-trend.html

In the forex market, standard lots are equal to 100,000 units of a given currency. Thus, a yard is comprised of 10,000 standard trading lots. Since this is more capital than individual investors possess, yards (or half yards) are generally traded by central banks and large private institutions. Trade orders of this size generally increase volatility and if these orders are not telegraphed, these trades can take many traders by surprise.

Trading positions are generally based either on a fundamental news event, a collection of macroeconomic data, or technical chart analysis. Once positions are established, traders will either gain or lose money depending on the accuracy of their initial forecast, the initial entry level, and the price at which the trade is closed.

Speculative Attack is a term that refers to a collective strategic investment that is made in order to push market prices in a specific direction. The word “attack” in this case can be viewed as an attempt to influence market activity. Defining what is actually a legitimate speculative attack can be difficult to do. Many argue that the use of the term is more closely related to political rhetoric, rather than an adherence to statistics. One way of understanding whether or not a true speculative attack has occurred can be seen in the length of time it takes for the currency to recover to previous levels. Quick recoveries are seen as less legitimate than recoveries that take years. An example of a speculative attack can be seen in the legacy of George Soros. In the 1990s, Soros led a speculative attack to drive down the value of the British pound in the face of questionable central bank activities.

Since these transactions are done at central banks, and in large quantities, this tends to create a great deal of volatility for the underlying currency. Currency interventions tend to have questionable levels of success. In general a central bank’s economic policy will be directly tied to the acceptable value of a currency and when markets deviate from these levels, a central bank will attempt to reverse the trend. Since the value of the currency is a direct function of supply versus demand, a central bank can choose to weaken a currency by increasing supply, or strengthen a currency by limiting supply.

A Hawkish central bank is one that is more likely to raise the interest rate tied to the national currency. This is important for forex traders because higher interest rates tends to increase the value of the underlying currency, and any evidence that a central bank is planning in raising interest rates will likely push the value of that currency higher. When using the term “Hawkish” forex traders are generally referring to comments that are suggestive of a rise in interest rates or a robust national economy.

Monetary tightening is conducted to restrict economic growth by making it more difficult to finance investment capital. One key consequence of tightening policies can be seen with lower inflation levels and a increase in the value of the underlying currency. When consumer spending is affected in this way, the national economy will generally see a decrease in spending and productivity and this will eventually lead the central bank to reverse policy as a way of restarting the economy.

A Dovish central bank is one that is more likely to lower the interest rate tied to the national currency. This is important for forex traders because lower interest rates tend to decrease the value of the underlying currency, and any evidence that a central bank is planning in lowering interest rates will likely push the value of that currency downward.

Central banks act as both major players in the currency market (conducting many foreign exchange transactions) and as a data source for understanding the strength of the country’s underlying economy. In some cases, central banks will actively intervene in currency markets to control volatility and bring liquidity into unstable markets. The main role of a central bank is to ensure price stability with respect to inflation.

The Central Bank Rate determines the rate that commercial banks are charged when loans are initiated and this is directly related to the interest rate determined by the country’s Federal Banking System. Higher rates are put in place to discourage lending in overheated economies, while low rates are given when an economy is viewed as being in need of stimulus measures.

Monetary Easing refers to any practice by the central bank of a country that is used to stimulate economic grow. Monetary easing is conducted to create economic growth by making it easier to finance investment capital. One key consequence of easing policies can be seen with rising inflation levels and a decrease in the value of the underlying currency. When consumer spending is affected in this way, the national economy will generally see an increase in spending and productivity and this will eventually lead the central bank to reverse policy as a way of cooling the economy. Monetary Easing is generally seen when a country is experiencing a trend of negative economic data. Monetary Easing will often help stimulate credit lending and consumer spending once enacted.

We are working on resolving the problem - thanks for the heads up MMS

Hi, We are not intentionally spamming the site, we are just in the process of porting over content from the blog section and closing that down. Sorry if it is messing up the latest post lists. thx MMS

An all-new personal finance guide from the authors/creators of The Wall Street Journal Guide to Understanding Money and Investing First in a new series based on information from Standard & Poor’s—the leading financial information organization—Standard & Poor’s Guide to Money & Investing demystifies the world of stocks, bonds, mutual funds, futures, and options, empowering you to make informed investment decisions, measure your performance, and evaluate the risks and rewards. Completely up-to-date to reflect significant changes in investing due to new technologies and the Internet, this concise, easy-to-read guide explains how to understand the markets, evaluate companies, and spot trends to invest for success. Also covered are forces driving the economy and the roles of institutions from the Federal Reserve to multinational banks to the stock exchanges.

Unravel the Mysteries of the Financial Markets—the Language, the Players, and the Strategies for Success Understanding money and investing has never been more important than it is today, as many of us are called upon to manage our own retirement planning, college savings funds, and health-care costs. Up-to-date and expertly written, The Wall Street Journal Complete Money and Investing Guidebook provides investors with a simple—but not simplistic—grounding in the world of finance. It breaks down the basics of how money and investing work, explaining: • What must-have information you need to invest in stocks, bonds, and mutual funds • How to see through the inscrutable theories and arcane jargon of financial insiders and advisers • What market players, investing strategies, and money and investing history you should know • Why individual investors should pay attention to the economy Written in a clear, engaging style by Dave Kansas, one of America’s top business journalists and editor of The Wall Street Journal Money & Investing section, this straightforward book is full of helpful charts, graphs, and illustrations and is an essential source for novice and experienced investors alike. Get your financial life in order with help from The Wall Street Journal.

This is the book I would recommend to anyone interested in trying his hand at the stock market. It is not, however, exciting, by any stretch of the imagination. Nor is it a book to read over the weekend. Magee takes his time, and the reader would do well to take his time also. This is a book to think long thoughts about. It is not at all difficult. It is, in fact, very easy. But the concepts which it addresses are fundamental, in the deepest sense of the word, to an understanding of what markets are, how they work, and what one can expect to earn from them.

Best of luck steve46, your posts will be missed! Don't stay away too long. MMS

This is a form of market analysis that does not use economic indicators but instead, utilizes technical indicators and repetitive price action as indices for future price determination. Technical analysis depends heavily on chart analysis and the ability to recognize chart formations. When using these chart formations, technical analysts will be able to develop a trading system that incorporates highly probable trading setups to establish long and short positions based on a well-researched trading strategy. The basis of technical analysis is that price patterns tend to repeat themselves, and by using technical indicators to detect these price patterns, a trader can use the information to make a bet on the price direction of the asset in question. Technical analysis works very well in forex because the market is a 24-hour market, providing a continuous stream of data which traders can put together to analyze. It is more difficult in other markets because of the reduced market hours, which produce price gaps on the charts.

In all cases, Forex trades will involve the purchase of one currency and the sale of another. For example, a buy position in EUR/USD involves the purchase of Euros with the sale of an equivalent number of units in US Dollars. In other words, a trader will be “shorting” the US Dollar and buying Euros as the trader’s expectation is that the US Dollar will be declining against the Euro. The position will lose money if the EUR/USD drops.

There are many different periods from which moving averages can be based. For example, a ten period moving average on an hourly chart will show you the average price for the previous ten hours. A ten period moving average on a weekly chart shows you the average price for the previous ten week. In general, traders use moving averages are a means for identifying trend direction.

In all cases, Forex trades will involve the purchase of one currency and the sale of another. For example, a long position in EUR/USD involves the purchase of Euros with the sale of an equivalent number of units in US Dollars. In other words, a trader will be going “long” the Euro and selling US Dollars as the trader’s expectation is that the US Dollar will be declining against the Euro. The position will lose money if the EUR/USD drops.