Sunday, July 22, 2007
Trading Term of the Day ~ OPEN INTEREST
Open Interest - The total number of futures contracts of a given commodity that have not yet been offset by opposite futures transactions nor fulfilled by delivery of the commodity; the total number of open transactions. Each open transaction has a buyer and a seller, but for calculation of open interest, only one side of the contract is counted.
Thursday, July 12, 2007
Trading Term of the Day ~ OPTION
Option - The right, but not the obligation, to buy or sell an underlying futures contract at a specific price during a specified time period. (Can also mean the price of cash grain or oilseed that is equal to the underlying futures price. Example: The cash price for soybeans in the first half of July is 8.00 and at the same time, July futures are8.00.) See also "Call Option," "Put Option" and "Strike."
Rainy Day Trader
Glossary of Trading Terms
Basics Of Options Trading
Rainy Day Trader
Glossary of Trading Terms
Basics Of Options Trading
Wednesday, July 11, 2007
Trading Term of the Day ~ FUTURES CONTRACT
Futures Contract - An agreement made at prices established in the trading pit or electronic trading to buy or sell a physical commodity sometime in the future. Futures contracts are standardized agreements, which specify quantity and quality of the physical commodity. They also specify the time of delivery and exchange designated point of delivery.
Rainy Day Trader
Glossary of Trading Terms
Basics Of Futures Trading
Rainy Day Trader
Glossary of Trading Terms
Basics Of Futures Trading
Tuesday, July 10, 2007
Commodity Trading For Beginners
Why learn about commodities?... Because the commodity markets hold tremendous opportunity for profit. But there is also significant risk of loss. Beginners must educate themselves and determine if commodity trading is suitable for them.
Did you know?.... One of the reasons why futures were created was so that the retail trader could participate in exciting commodities, some of which have made incredible gains, like the stock market indices, the grains and even orange juice.
Others are doing it... Some are dentists, others teachers, still others are construction workers or stay-at-home moms or dads. Some have university degrees while others, only a high-school diploma.
Start by requesting a Beginner's Educational Package. It's FREE!!
Did you know?.... One of the reasons why futures were created was so that the retail trader could participate in exciting commodities, some of which have made incredible gains, like the stock market indices, the grains and even orange juice.
Others are doing it... Some are dentists, others teachers, still others are construction workers or stay-at-home moms or dads. Some have university degrees while others, only a high-school diploma.
Start by requesting a Beginner's Educational Package. It's FREE!!
Trading Term of the Day ~ HEDGING
Hedging - The use of futures and options to reduce risk of price movement by establishing the opposite position of what an individual or corporation plans to do with a particular physical commodity in the future. An example would be a corn farmer that planted corn in May, sells a contract of Dec Corn futures on June 10, to offset risks of prices moving lower into the fall because he would be selling harvested corn in the future.
Rainy Day Trader
Glossary Of Trading Terms
Rainy Day Trader
Glossary Of Trading Terms
Friday, June 29, 2007
Saturday, June 23, 2007
Start Your Trading Career with Patience
Patience Is Even More Important Than The Right Trade
The Stock Market is an amazing dynamic - the engine of the world's prosperity. The world's economy and productivity have thrived due to the availability of a platform where the common investor can make contributions and reap their benefits.
The Internet is also an amazing dynamic - the engine of the world's information. The world of information at everyone’s fingertips in real time is only just beginning.
Now these two dynamics are coming together, and ordinary people like you and I now have the opportunity and access to information and trading platforms that only the patrons of Wall Street had just a few years ago.
I can remember when it was all so new to me. It was like a giant game where people played for keeps. People were becoming instant millionaires. People were jumping off buildings in utter despair. Wow!
I remember wanting desperately to become one of those Wall Street guys or a Futures Trader in the Pit. Although my life took more of a creative path, trading remained a passionate interest. Then came the internet. The days of the ticker tape were gone forever.
Hey, this is great. I no longer have to get out my magnifying glass to comb through the endless charts and minuscule details in the Journal, or call my broker just to get a sales pitch when all I wanted was a current quote. If you didn't notice, Stock Brokers have their own agenda, but this is beside the point. Or is it?
I can be a Trader! Little old me and my computer. Where do I start? Hmm... a Google search. Just do a search on any search engine. Every kind of internet hawk is selling something. "Buy my package and I will guarantee 80% winners." Or "this system will tell you when to buy and when to sell." I am sure these are attractive offers to the beginner who doesn't have the time for due diligence. Well not me, I know what I'm doing.
I was the anxious one that just wanted to start trading. I had some great ideas - "Put me in the cockpit and I will learn how to fly when I get up in the air." I crashed and burned of course, but I learned a lot on the way down.
I am not an expert trader, although some days I think I am. I am just a guy that is very interested in trading. I was humbled. I had a lot of new questions too. Hmm... maybe these experts might be able to help.
Day trading vs. swing trading? spread betting? pips? technical analysis vs. fundamental analysis, oh no I'm in trouble. Indeed, I was in trouble right along with all the other newbies entering the market. I began feeling like a mouse exposed in an open field.
In my quest I have learned from the best and got burned by the rest. I like to compare the internet to the wild west - the massive new frontier of great opportunity, but also great lawlessness. There are a lot of snake oil salesmen with miracle medicines that claim to make you wealthy in a matter of months or days, and they just love eager people like you and me.
Well yes, there are those that become millionaires and billionaires virtually overnight, and believe me that intrigues me too. That is what makes the snake oil salesman's job so much easier. Most of the time the only money they make is off selling their system and not by using their system. They prey on the inexperienced uninformed trader. Even more, the impatient trader is an especially delicious target for the internet hawk. That was me, the especially delicious target. So don't make these guys the rich ones.
That said, I can now declare that the more informed and educated I become I realize one thing - the more that I learn, I learn that I can learn much more. There is no substitute for education and due diligence. The information is there, especially with the internet being the amazing and efficient tool that it is. Due diligence is doing the research on a company or commodity for yourself before you trade with your hard earned money. The success of a trading career is directly applied from the extent of due diligence. Now due diligence is an exact opposite of impatience and ignorance.
Yes I said it. Ignorance is exhibiting lack of education or knowledge. The internet has left the ignorant without an excuse. I will admit it, I have been ignorant. Ignorant and Impatient must be the food of the gods for those hawks.
"Put me in the cockpit and I will learn how to fly when I get up in the air", I said. I understand the feeling of wanting to get started - almost with an urgency. Today I write to tell all you eager eagles to wait, slow down and give yourself a much needed education, and learn how to do the research on all those great picks. The internet is the tool for due diligence by the proficient trader. Use it to your advantage not disadvantage.
Two great places to begin your trading education are some excellent courses designed for the begining trader: Commodity Trading For Beginners and Trading Options On Futures. They will give you a firm foundation on the basics of trading. Both of these free courses focus mainly on futures, foreign exchange, and options trading, but the fundamentals you will learn here can also be applied to the Stock Market.
If you are home schooling your children or just want to give them (and yourself) a solid starting point in learning about the market the above courses are a wonderful place to begin. many homeschoolers look to the Rainy Day Trader for a solid foundation of social studies - money studies curriculum.
Lots of people have become very wealthy very quickly trading and most of the time it is not based on good luck. Lots of people have also lost their fortunes trading and most of the time it is not due to bad luck.
Given the risks involved, it is important to say that there are proportionally much greater rewards vs. the risks if the trader is willing to do due diligence. Information and education are key, and most of all a successful trader must combine them with patience.
Anthony Anselmi
Rainy Day Trader
Trading Tips For Beginners
The Stock Market is an amazing dynamic - the engine of the world's prosperity. The world's economy and productivity have thrived due to the availability of a platform where the common investor can make contributions and reap their benefits.
The Internet is also an amazing dynamic - the engine of the world's information. The world of information at everyone’s fingertips in real time is only just beginning.
Now these two dynamics are coming together, and ordinary people like you and I now have the opportunity and access to information and trading platforms that only the patrons of Wall Street had just a few years ago.
I can remember when it was all so new to me. It was like a giant game where people played for keeps. People were becoming instant millionaires. People were jumping off buildings in utter despair. Wow!
I remember wanting desperately to become one of those Wall Street guys or a Futures Trader in the Pit. Although my life took more of a creative path, trading remained a passionate interest. Then came the internet. The days of the ticker tape were gone forever.
Hey, this is great. I no longer have to get out my magnifying glass to comb through the endless charts and minuscule details in the Journal, or call my broker just to get a sales pitch when all I wanted was a current quote. If you didn't notice, Stock Brokers have their own agenda, but this is beside the point. Or is it?
I can be a Trader! Little old me and my computer. Where do I start? Hmm... a Google search. Just do a search on any search engine. Every kind of internet hawk is selling something. "Buy my package and I will guarantee 80% winners." Or "this system will tell you when to buy and when to sell." I am sure these are attractive offers to the beginner who doesn't have the time for due diligence. Well not me, I know what I'm doing.
I was the anxious one that just wanted to start trading. I had some great ideas - "Put me in the cockpit and I will learn how to fly when I get up in the air." I crashed and burned of course, but I learned a lot on the way down.
I am not an expert trader, although some days I think I am. I am just a guy that is very interested in trading. I was humbled. I had a lot of new questions too. Hmm... maybe these experts might be able to help.
Day trading vs. swing trading? spread betting? pips? technical analysis vs. fundamental analysis, oh no I'm in trouble. Indeed, I was in trouble right along with all the other newbies entering the market. I began feeling like a mouse exposed in an open field.
In my quest I have learned from the best and got burned by the rest. I like to compare the internet to the wild west - the massive new frontier of great opportunity, but also great lawlessness. There are a lot of snake oil salesmen with miracle medicines that claim to make you wealthy in a matter of months or days, and they just love eager people like you and me.
Well yes, there are those that become millionaires and billionaires virtually overnight, and believe me that intrigues me too. That is what makes the snake oil salesman's job so much easier. Most of the time the only money they make is off selling their system and not by using their system. They prey on the inexperienced uninformed trader. Even more, the impatient trader is an especially delicious target for the internet hawk. That was me, the especially delicious target. So don't make these guys the rich ones.
That said, I can now declare that the more informed and educated I become I realize one thing - the more that I learn, I learn that I can learn much more. There is no substitute for education and due diligence. The information is there, especially with the internet being the amazing and efficient tool that it is. Due diligence is doing the research on a company or commodity for yourself before you trade with your hard earned money. The success of a trading career is directly applied from the extent of due diligence. Now due diligence is an exact opposite of impatience and ignorance.
Yes I said it. Ignorance is exhibiting lack of education or knowledge. The internet has left the ignorant without an excuse. I will admit it, I have been ignorant. Ignorant and Impatient must be the food of the gods for those hawks.
"Put me in the cockpit and I will learn how to fly when I get up in the air", I said. I understand the feeling of wanting to get started - almost with an urgency. Today I write to tell all you eager eagles to wait, slow down and give yourself a much needed education, and learn how to do the research on all those great picks. The internet is the tool for due diligence by the proficient trader. Use it to your advantage not disadvantage.
Two great places to begin your trading education are some excellent courses designed for the begining trader: Commodity Trading For Beginners and Trading Options On Futures. They will give you a firm foundation on the basics of trading. Both of these free courses focus mainly on futures, foreign exchange, and options trading, but the fundamentals you will learn here can also be applied to the Stock Market.
If you are home schooling your children or just want to give them (and yourself) a solid starting point in learning about the market the above courses are a wonderful place to begin. many homeschoolers look to the Rainy Day Trader for a solid foundation of social studies - money studies curriculum.
Lots of people have become very wealthy very quickly trading and most of the time it is not based on good luck. Lots of people have also lost their fortunes trading and most of the time it is not due to bad luck.
Given the risks involved, it is important to say that there are proportionally much greater rewards vs. the risks if the trader is willing to do due diligence. Information and education are key, and most of all a successful trader must combine them with patience.
Anthony Anselmi
Rainy Day Trader
Trading Tips For Beginners
Subscribe to:
Posts (Atom)