Friday, April 30, 2010

Profiting from a Bear Market

Negative Economic Forecast
Great Systems for Bear Markets Workshop May 1 - 3, 2010


Investing Trading Seminars Webinars Workshops Events 2010 Schedule

Whether you think the bear market rally bounce is over and the market and investment asset prices are headed lower, or you think the the economy will continue to recover and investment asset prices are headed higher from here, it's good to be prepared for both. Today is about preparing for a very possible bear market and how to survive it and or profit from it.

First, it's important to know the indicators of a bear market.

Second, it's important to have a plan on how to invest and trade in a bear market to either profit from it or simple survive it.

Bear Market Indicators To Review and Analyze

Deteriorating weekly and monthly economic reports and indicators. Increasing unemployment rates and decreasing gross domestic product reports. Very possible sovereign debt defaults around the world from Greece Spain Portugal, and yes the USA. Declining company earnings reports. More problems from the real estate market, lower housing prices, more foreclosures, less home sales and construction. Increasing inflation or deflation of which both can send asset prices lower. Politics, wars, terrorism, and natural disasters. Significant slowing in the growth economies of emerging markets such as Asia, China, India, and Brazil. Lastly analyzing price charts for chart patterns that show signs of decreasing buying strength and increasing selling pressure. All of these negatives add up and create a lot of fear in the markets, or what is also called Socionomics.

Profiting or Surviving from a Bear Market

After analyzing all these indicators above, you have choices on how to profit and or survive in a bear market. First, you could be an active short seller of stocks, or place money in a bear market mutual fund or trade forex and futures to the downside. Second, you could sell all your assets and sit out the bear market all together. Third, you could hold your assets and try to ride out the bear market. Me, I would be an active short seller of stocks and other assets. Selling all your assets and waiting for the reversal of the bear market later one is an ok option I guess. The worst would be is to hold and try to ride out the storm. Hang out in the storm long enough and it just might kill you.

Chance Favors The Prepared Mind

If your the type to be active and invest and trade on the short side, then be prepared to be ready to act. In my 20 plus years of investing and trading the markets, when prices are falling, they seem to fall harder and faster compared when they are going up many times. Also, bear markets can move slowly down too. The slow bleed bear market takes its death toll as the market drifts slowly lower and lower over time causing extended pain and suffering psychologically and financially. That combination is a destructive force on people in more ways than one.

"To Be Prepared Or Not To Be" Is The Question

Its all about getting the education knowledge, setting dated goals, having a plan, taking action, to survive and thrive in a bear market. These financial crisis days, there are many bear market investing trading seminars, webinars, workshops, and events where you can learn the finer details of surviving and profiting from a bear market. Below is one of them coming up this Saturday.

Bear Market Systems Workshop May 1 - 3, 2010

Learn five systems specifically created to make money in bear markets.

When the markets start falling off, do you step back? Does the volatility associated with bear markets scare you? Do your trading systems let you down or even surrender hard-earned equity in a declining market?

If you answered "yes" to any one of those questions, you are far from alone. And, if you are not well-prepared to trade declining markets, you are very prudent to pull back from the markets. Better to leave the markets temporarily and wait for more profitable conditions for your systems and your style of trading.

What if you were prepared, however, and bear market conditions offered you opportunities for significant profits? What if you had trading systems custom made to perform well in falling and volatile markets? What would it be worth to you to understand bear markets better and to know how to trade them profitably?

The Van Tharp Institute designed this workshop and these particular systems for our clients who want to take advantage of declining markets—a condition that we expect to reoccur through the coming years during a secular bear market.

What You Will Learn

Day One: Bear Market Essentials

Day Two: Bear Market Systems

Day Three: Live and Simulated Trading

Benefits of Attending the Workshop

• Recognize bear markets and the need for unique strategies required to trade them so you can know when and how to change your strategies in a timely manner.

• Grasp the importance of Van Tharp’s principles on trading psychology, systems, and position sizing strategies before you start trading, which will allow you to trade profitably over the long term.

• Comprehend the key concepts of shorting and be able to apply shorting strategies easily in down markets.

• See one or more of the systems traded live on Monday and practice trading using a trading simulator.

• Discover five trading systems that will equip you with multiple ways to succeed in bear markets.

Here's what other attendees said about the workshop:

"I got far more ideas, strategies and information than I had expected. The material presented was excellent." — P. Bayley

"I only expected to learn systems, but learned a lot more." — M. Finlay

"Fantastic course. I got far more than I was expecting! I'm buzzing." — I. Jones

"The only place you get 'Tharp Think' delivered by real world traders." — P. Foskett

"A valuable course that I thought was presented in an informative way. I liked the fact that it was interactive." — L McIntosh

"Very interactive, excellent content." — M. Tan

More Investing Trading Seminars Webinars Workshops Events

How To Trade In A Fast Moving Bear Market Trading Course Workshop

How to Develop a Winning Trading System That Fits You Workshop May 5 - 7, 2010

Investing Trading Seminars Webinars Workshops Events 2010 Schedule

Thursday, April 29, 2010

2010 World Cup Trading Championships

2010 World Cup Trading Championships
WorldCupAdvisor - Top 5 Finishers Will Each Be Authorized To Trade a $50,000 Award Account


Enter the 2010 World Cup Trading Championship or Trade Your Own Account with the WorldCupAdvisors Pro-Traders

The World Cup Trading Championships® are the competitive arena for futures, forex and stock traders alike. World Cup events are real-time, real-money competition. At stake are great prizes, coveted World Cup Bull and Bear trophies, and a possible spot on the advisory team at WorldCupAdvisor.

The highest percentage increases win the cash and top prizes, but it's fair to say that every entrant wins, because every participant qualifies for free trading tools and discounts. Since 1983, traders have turned to World Cup competition as the ultimate trading challenge.

The 2010 World Cup Trading Championships include the World Cup Championship of Futures & Forex Trading® and the World Cup Championship of Stock Trading®*. The top three finishers in each event receive Bull & Bear trophies and great prizes. The top five finishers in the futures/forex competition will each be authorized to trade a $50,000 Awards Account. And each month, the top performer from the combined events will win a crystal Bull & Bear trophy.

With 66% net ROI in 3.2 Months World Cup Champ Has A Handle On Futures and Forex!

Andrea Unger has been navigating the futures and forex markets with equal agility in his World Cup Championship of Futures & Forex Trading® account.

You'll find both futures and forex trades in Andrea's 2010 WCC program, although lately Unger has been favoring foreign currency pairs because of the deep liquidity they provide for his AutoTrade™ subscribers. After booking winners of $3,266 in the EUR/JPY and $943 in the GBP/USD Tuesday, net profits in this program rose to $9,938* for a 66% return in 3.2 months.

You can follow Andrea's Championship account as he attempts to become the first trader to win three consecutive World Cup crowns. Unger claimed the '08 World Cup Championship of Futures Trading® title with a 672% net return, and won again in '09 with a 115% performance. Learn more now.

Due to the leverage Andrea uses in his competitive trading, subscribers must match his balance in the World Cup Championship account at the time they enter the program.

Andrea's other follow-the-leader programs accommodate a fixed opening balance. Those include Sinergia, a futures-only program with profits of $17,587 for a 70% net return in 16.9 months, and Cross-Current, a new forex-only program that has gained a net $3,184 (12.7%) in its first week.

When Andrea makes a trade in his WorldCupAdvisor.com follow-the-leader accounts, each AutoTrade subscriber automatically makes the same trade. To learn more about Andrea's background and to view specs of his programs, click here.

Cick Here To Enter the 2010 World Cup Trading Championship or Trade Your Own Account with the WorldCupAdvisors Pro-Traders

Click here for more information and resources on using trading advisors and trading your own account with pro-traders.

Wednesday, April 28, 2010

Binary Options Trading Advantages


TraderXP
Simple Binary Options Trading


Binary options are a simple and rewarding financial trading product. Binary options deliver a fixed return on every trade which is made, depending on whether the trade was “In The Money”, “Out Of The Money” or a “Tie”. Binary options – which are also referred to as digital options, are one of the fastest growing financial trading products in the world because their simplicity, together with the certainty which they offer on every trade, makes them an attractive trading tool for many financial investors.

When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 5-30 minutes in the future, an hour ahead or at the close of the trading day. Binary options once bought cannot be resold before the expiry time is reached.

Introduction to Binary Options

A binary option is an option that pays either a fixed amount or nothing, depending on whether a certain condition is fulfilled when the option expires.

Binary options are also referred to as all-or-nothing options, since it is a type of option where the payoff is all or nothing. The return is therefore fixed and it comes to no surprise that such options are also known as: FRO's-Fixed Return Options. Digital options is also another commonly used term. More simply a trader just needs to make a decision about the direction of a rate change: whether the underlying asset's price is going up or going down without taking other factors into consideration.

Binaries are considered to be one of the simplest trading products out there, The trader knows at the time of the trade what is the maximum profit and loss.

Binary Options trading is considered as one of the fastest growing segments of the simplified trading products.

Binary options are fixed-odds-return investment products that have two possible absolute outcomes with structured reward and risk, hence the word 'binary'.

Binaries are considered as a mass market financial instrument as it empowers traders with a very flexible trading approach without the complexities involved in trading traditional vanilla options.

Whether you are looking for a short term speculation or hedging your portfolio, binaries can help you get a high payout within short trading durations as so, binaries are gaining popularity among traders globally.

Binary contracts are available on a variety of underlying assets: Stocks, Commodities, Currencies and Indices.

Whether the trader has made a call or put, if at contract expiration the trader has been successful with regards to the anticipated direction of the underling asset price then the contract will expire in the money. On the other hand, if the trader has been unsuccessful in anticipating the direction of the asset, the contract will expire out of the money.

When the expiry level is equal to the strike price the contract will expire at the money. Normally, there will be a fixed cash settlement to be returned which is often the initial investment, however this depends on what was predetermined and agreed in the contract.

A Binary Option reflects specific speculation in financial markets that may happen during a specific time period.

For example: Google price is now 430.25$ and you want to speculate on the price movement of the share within a time frame of 1 hour.

If you think that Google will rise above this price level, than you should buy a binary call option- if the Google price will be above the current price level during expiry than the option will expire in the money, paying you the fixed odds return promised during the trade. If not, the option will expire out of the money.

If you think that Google will fall below this price level, than you should buy a binary put option- if Google price will be below the current price level during expiry than the option will expire in the money, paying you the fixed odds return promised during the trade. If not, the option will expire out of the money.

Difference between Binary and vanilla options.

Binary options also known as digital options are similar to ordinary options in the sense that the payoff is based on the price of the underlying asset when the contract expires, however with a binary option only need to take a view on the anticipated direction of the underlying asset price and don't have to take magnitude into consideration. The main difference between a regular vanilla option and a digital option is the extent to how much a contract can potentially lose or gain. Binary options often referred to as FRO fixed rate options since the contract will have predetermined percentage of fixed rate of return, unlike traditional vanilla options which are much riskier since the potential gains are infinite of course risk can be managed by strategical stop loss orders.

Binary Options Vs Traditional Options Comparison

Vanilla Options Vs. Binary Options

Expiration:

Traditional Options: Once a month.

Binary Options: Variety of expiration terms: end of day, hourly and Even shorter expiration like 15 min binaries.

Payout:

Traditional Options: Dynamic, based of the underlying asset price.

Binary Options: Fixed.

In-The-Money:

Traditional Options: Requires a relation of the strike price of an option and the underlying price in order to execute the option.

Binary Options: Price movement isn't relevant, just the direction (above or below).

Execution:

Traditional Options: Options usually can be exercised any time prior to expiry.

Binary Options: Can't be exercised before expiry.

Right to buy:

Traditional Options: The option owner has the right to exercise his options and turn them into stocks in case option expires 'In-the-money'.

Binary Options: Don't have the right to exercise to stocks.

Advantages of Binary Options

Simplicity-Whether the instrument will close above or below?

• Binary options are simple to understand and straight forward to trade.

• The trader only needs to consider the direction of the asset price.
Limited risk and predetermined payout

• The payoff of a binary option contract is fixed and pre-determined so therefore the potential risk and reward is known from the outset. Whereas with traditional options there are no outlined parameters so the possible loss or gain is not known.

• The binary option will settle the contract irrespective of how much the asset price is 'In the money' at expiration. Therefore even if the contract is only successful by one tick the contract still pays out at the fixed level.

• Simplified hedging your portfolio

• Binary options are often used as an effective tool to hedge existing positions. As a product Binary options are compatible to most commonly used trading methods and strategies. Also with binary options its possible to offer a a greater selection of short-term contracts across all markets, which enables the intra-day trader to trade more frequently.

• As opposed to vanilla options, While trading binary options the options can close 'in the money 'collecting the full payoff even with a minimal price change of a single tick.

• Binary options are issued 24/7, allowing traders to trade on multiple time frames. As binaries are on a variety of global underlying assets from different exchanges traders are now able to trade binary options 24/7 under the same binary options platform.

Binary Options Trading Strategies

A very common strategy is to make a pull or call option once there has been a big move in the market especially if it is an unexpected move.

Often binary options' traders will open positions related to events that historically have a big influence on market prices. Fox example quarterly profit or loss announcements from firms are eagerly watched by potential traders and betters, since positive or negative results often reflect the movement of the share prices. As well as formal preplanned announcements traders will always be watching the news, as many different events can influence the markets i.e. Natural disasters to political changes. Eventually the best strategies come with experience which cant be taught.

Binary Options in Global Financial Markets

Binary options falls under the umbrella of exotic options but within financial market they are often referred to as digital options.

Whilst digital options are very simple to understand and easily traded the calculations behind the pricing is sophisticated, its for this reason digital options are known as an exotic option.

Digital options are usually traded OTC (over the counter) across all assets in financial markets but more commonly used within the Forex and Interest markets. More recently numerous stock exchanges have produced listed digital options on selected stocks, commonly known as FRO fixed return options. Today the CBOE offers fixed return options on S&P500 and VIX, also 20 stocks were listed on the AMEX in 2008.

Click here for a binary options trading demo.

Click here for more option trading education training courses seminars webinars workshops and resources.

Tuesday, April 27, 2010

Goldman Sachs & Fraud: Who Guessed Part III

Goldman Sachs Securities Exchange Commission
Goldman Sachs Charged With Fraud: Who Could Have Guessed? Part III


The firm's history suggests its vulnerability in periods of negative social mood.

In the November 2009 issue of Elliott Wave International's monthly Elliott Wave Financial Forecast, co-editors Steven Hochberg and Peter Kendall published a careful study of Goldman Sachs history -- and made a sobering forecast for its future.

In this special three-part series, we will release the entire Special Report to you free of charge. Part III is below. You can find the entire series here: EWI forecasts Goldman Sachs company troubles.

Get tomorrow's financial news today! To understand what that means, you must think and act independently from the crowd. Learn how by downloading Elliott Wave International's FREE 118-page Independent Investor eBook here.

Special Section: A Flickering Financial Star, Part III

With the market’s downtrend recently in abeyance, these transgressions failed to capture the imagination of the public or the scrutiny of law enforcement. But the extreme recriminatory power of the next leg down in social mood suggests that Goldman’s dealings will become a lighting rod for public discontent.

In January 2008, Elliott Wave Financial Forecast noted that Goldman’s success relative to the rest of Wall Street pointed “to the eventual appearance of a much larger public relations problem in the future. In the negative-mood times that accompany bear markets, conflict of interest charges will come pouring out.” The recent revelations about Paulson’s and Friedman’s actions are exactly that to which we were referring. Additional claims against Goldman -- including front-running its clients and profiting from inside information -- are already too numerous to mention. As the bear market intensifies, the firm will attract scrutiny as easily as it brushed it off in the mid-2000s.

Based strictly on the form of its advance, a July 2007 issue of The Short Term Update called for a peak in Goldman shares at $234. Goldman managed one more new high to $250 in October 2007; it then fell 81 percent to a low of $47 in November 2008. The stock market’s wave 2 rise brought Goldman back to $193 on October 14. Its affinity for marching in lock-step with the DJIA strongly suggests that Goldman will decline to below its November 2008 low.

Another key socionomic trait is for the most successful recipients of bull-market goodwill to be singled out for special treatment in the ensuing decline. Even fellow financiers are taking aim. In a not-so-veiled reference to Goldman, one Wall Street titan said that big profits made by investment banks are “hidden gifts” from the state, and resentment of such firms is “justified.” Let the bloodletting begin.

Let the Buyers (of Stock) Beware

Goldman’s heavy involvement in the hedge fund industry is another bull market asset that will become a huge liability in the next wave lower. In January, when some minor insider trading charges were brought forward, Elliott Wave Financial Forecast stated that they were only a first puff of “what promises to be a huge mushroom cloud.” The next much larger puff, and its ability to quickly envelop the financial markets, was put on display as the hedge fund Galleon Group went from insider trading charges to complete liquidation in a matter of days. The headlines are already pointing to a potential chain-reaction: “Galleon Wiretaps Rattle Funds as Insider Trading Targeted.” Reports indicate that the Galleon investigation actually began in November 2007, one month after the start of Cycle wave c.

Back in 2007 when Elliott Wave Financial Forecast talked about the “conspicuously tight knit” nature of hedge fund participants, we added that in bear market times, these “men will turn on each other out of a need to survive.” According to reports, that is exactly what happened. The central witness “who brought down the hedge fund” suffers from “financial woes” and “is working with law enforcement in hopes of receiving a lighter sentence.” The bear market is already squeezing the most aggressive bulls from every angle. New legislative and administrative initiatives are being proposed, and in some cases enacted, that will reduce executive pay at bailed-out financial institutions by up to 90% and attempt to shift the cost of bailouts from taxpayers to other large financial companies. The most far reaching “reforms” probably won’t take effect until later, when the decline is over or nearly so.

Finance led the way down in 2007; so we shouldn’t be surprised by its apparent willingness to do so again. ... This time however, the decline will be a third wave at Primary degree, which should be far more intense than the initial Primary-degree decline from October 2007 to March 2009. Stay tuned.

Monday, April 26, 2010

Weekly Stock Pick

Buy Sell Hold
Brazil Bull


I’ve been an emerging markets bull for quite some time now, but have yet to really do any analysis on Brazil and their currently very good performing economy and companies until my weekly technical stock scans this Monday morning popped up three Brazilian stocks in the same scan which is quite unusual so I decided to take a closer look.

3 Stock Picks Instead of One

This week, I’m not only providing buy entry, stop-loss, and take profit price targets on one stock, but I’m doing it on three Brazilian stocks, which if they work out, will provide nice 3:1 plus low-risk high-reward stock buying opportunities. These Brazil stock picks are all ADR’s so you can buy them on the New York Stock Exchange, which hopefully means they are a lower-risk emerging market investment and or trade. In case they’re not, stick to stop-loss plain and simple.

Latin America's Economy

Brazil is Latin America’s biggest economy. The Brazilian central bank president is Henrique Meirelles. Meirelles and his monetary policy makers are meeting this week for two days to decide on the Brazil benchmark interest rate. The last time they met for a Brazilian monetary fed meeting was in September 2008. Analysts are expecting a rate increase to cool down the strongly growing economy.

Brazil Central Bank President Meirelles

The Brazilian central bank previously set their overnight rate at 8.75% to spur growth. Economic growth has been strong with such action and inflation is now at an eleven month high from credit growth and domestic demand. Meirelles said that there is risk of the Brazil economy overheating, and they are taking necessary measures to manage it. Brazil interest rate futures yields gained more than expected last week after the IPC-S consumer price index report came out, which exceeded economists forecasts.

50 Basis Points or More Expected

Meirelles is saying that they may increase the rate by 50 basis points or more. The last time they increased rates was in April 2008, to the surprise of most economists. The Brazilian central bank went on after that to raise the overnight rate four times from 11.25% to 13.75 in September 2008. The market looks to be pricing in a 65 to 75 basis point increase at this point. Brazil current inflation rate is at 5.2% and is forcasted to rise to 5.32% later in the year. Meirelles is trying to keep inflation within their forecasted targets in the next 12 months.

Brazil Bust Now Booming

Brazil slipped into a recession with the rest of the world in 2009, but with very low interest rates and economic growth, the current growth forecast is now 6% plus. Meirelles and his monetary policy makers have been happy with their expectations of Brazilian recovery and their interest rate adjustments so far. Analysts and economists on the other hand have been quite surprised and are having a hard time understanding the central banks decisions and the timing of their decisions.

The Real News on Real Interest Rates

Meirelles said that after inflation, real interest rates should be lower in the years ahead. He also said that real interest rates have dropped from about 14 percent to 6 percent since he started as the Brazil fed chief in 2002.

Brazilian Past Debt Defaults and Today's Investment Grade Rating

Brazil has defaulted on its foreign debt two times in the last 25 years. It received its first S&P investment grade rating in 2008. The Brazilian currency, the Real has doubled since 2003, and stocks have climbed more than 1,000% in dollars terms in the same amount of time.

My Three Brazil Stock Picks

The first one is Companhia Paranaense de Energia Brazilian electric utility. The second one is Net Servicos involved in Cable TV and broadband internet services. The third is the famous Brazil oil and gas company Petrobras, which they are also involved in chemical and fertilizer production too.

Buy Long: Companhia Paranaense de Energia COPEL – Ticker ELP

Buy Entry: 19.91 to 20.39

Stop-Loss: 19.52

Take Profit Areas: 21.98 to 22.20, 22.42 to 22.64, 23.51 to 23.76, 25.81 to 26.07

Companhia Paranaense de Energia COPEL Company Profile

Companhia Paranaense de Energia COPEL, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity for industrial, residential, commercial, and rural and other customers in Brazil. It generates hydroelectric and thermoelectric power. As of December 31, 2008, it operated 17 hydroelectric plants and 1 thermoelectric plant, with a total installed capacity of 4,549.6 megawatts. The company also provides corporate and international long-distance telecommunications services to telecommunication companies, supermarkets, universities, banks, Internet service providers, and television networks. As of December 31, 2008, it owned and operated 1,835.2 kilometers (km) of transmission lines and 179,187.6 km of distribution lines. In addition, the company engages in the distribution of natural gas through pipes to industries, thermoelectric plants, cogeneration plants, businesses, gas stations, and residences. Companhia Paranaense de Energia COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

Click the Companhia Paranaense de Energia stock chart for a larger view.

Companhia Paranaense de Energia Stock Chart

Buy Long: Net Servicos – Ticker NETC

Buy Entry: 11.81 to 12.24

Stop-Loss: 11.52

Take Profit Areas: 13.60 to 13.84, 14.07 to 14.34, 15.63 to 15.94, 17.59 to 17.93

Net Servicos Company Profile

Net Servicos de Comunicacao SA (Net Servicos) is a Brazil-based multiservice holding company engaged in the pay-television and broadband Internet industries. The Company’s principal services include pay-television and pay-per-view programming under the NET brand name, digital cable under the NET Digital brand name, high-definition cable television combined with digital video recorder under the NET Digital HD MAX brand name, broadband Internet service under the NET Virtua brand name and fixed line telephony service under the NET Fone Via Embratel brand name. As of December 31, 2009, the Company held shares in Net Rio Ltda, Net Recife Ltda, Net Sao Paulo Ltda, Reyc Comercio e Participacoes Ltda and 614 TVH Vale Ltda, among others.

Click the Net Servicos stock chart for a larger view.

Net Servicos Stock Chart

Buy Long: Petrobras – Ticker PBR

Buy Entry: 41.77 to 44.19

Stop-Loss: 41.33

Take Profit Areas: 47.94 to 48.95, 50.83 to 51.99, 56.81 to 58.06, 64.73 to 66.17

Net Servicos Company Profile

Petroleo Brasileiro SA-Petrobras is an integrated oil and gas company. During the year ended December 31, 2008, the Company’s average domestic daily hydrocarbons production was 2,176 thousand barrels of oil equivalent per day (mboe/d). Approximately 84% of its proved reserves are in fields in the offshore Campos Basin. The Company operates the refining capacity in Brazil. The Company’s domestic refining capacity is 1,942 thousand barrels per day (mbbl/d). Its domestic refining production is 1,787 mbbl/d and sales of oil products to domestic markets is 1,748 mbbl/d. The Company is also involved in the production of petrochemicals and fertilizers. The Company distributes oil products through its own BR network of retailers and to wholesalers. During 2008, it increased its stake in the Sierra Chata and Parva Negra blocks to 45.55% and 100%, respectively, and acquired a 13.72% stake in the El Tordillo and La Tapera-Puesto Quiroga blocks. In November 2009, it acquired Chevron Chile SAC.

Click the Petrobras stock chart for a larger view.

Petrobras Stock Chart

Click here to review different investing trading software that scans analyzes stocks for different technical criteria, and trade pattern setups.

Friday, April 23, 2010

Emini Futures Trading Advantages

Emini Futures
What Are Emini Futures? Click Here For More Resources


Emini On The CME Exchange

Emini futures are a electronically traded futures contract on the Chicago Mercantile Exchange that represents a smaller portion of a normal futures contracts. E-mini futures contracts are available on a wide range of indices such as the Nasdaq 100, SP 500, SP MidCap 400 and Russell 2000. The relatively small size of these stock indices futures contracts permits investors with modest amounts of risk capital to participate in the Dow and SP 500, and at a fraction of the cost of purchasing the actual stocks outright.

Emini Advantages

For example, the E-mini SP 500 futures contract is 1/5th the size of the standard SP 500 futures contract. The advantages to trading E-mini futures contracts are numerous and include high liquidity, easy affordability for individual investors and 24 hour trading like the forex market.

No Stock Analysis Paralysis

Emini futures trading is far easier than stock trading because you don't have to analyze, trade, and manage hundreds or thousands of stocks but just hand-fulls of indices and decide whether its up or down from there, and do that either in a intraday day-trading, weekly swing trading, or monthly speculative trading basis. Another nice advanatage to emini future trading is you can sell short as easily as buying long so you make money in both up and down markets.

Emini on the Nasdaq - SP500 - DJIA Indices

E-Mini futures contracts on the Nasdaq, SP 500 and the DJIA provide a fun, flexible, efficient, and affordable method to profit on daily swings in stock equities. When trading the E-Mini futures contracts on the NASDAQ, E-Mini SP 500 and in DJIA, traders can focus on a group of stocks at a small fraction of the cost of commissions compared to higher expense of trading multiple individual stocks at one time. Also emini traders can profit from both rising and falling markets.

Small or Big Positions Ok

With E-Mini futures, there is no more requirement to lock up large amounts of money buying stock equities, and with online futures trading brokers, you can trade the markets easy and fast. With day trading you know exactly where you are at the end of each day without the risk involved of holding multiple positions for long periods of time. The advantages of day trading the E-Mini NASDAQ, E-Mini SP 500 and the DJIA futures contracts are many, and you may not want to day trade individual stocks again.

Click Here for More Emini Futures Trading Accounts Education Training Forecast Services Systems Software Tools

Thursday, April 22, 2010

Goldman Sachs & Fraud: Who Guessed? Part II

Goldman Sachs Securities Exchange Commission
Goldman Sachs Charged With Fraud: Who Could Have Guessed? Part II


The firm's history suggests its vulnerability in periods of negative social mood.

In the November 2009 issue of Elliott Wave International's monthly Elliott Wave Financial Forecast, co-editors Steven Hochberg and Peter Kendall published a careful study of Goldman Sachs company history -- and made a sobering forecast for the firm's future: "Goldman Sachs will experience an epic fall."

In this special three-part series, we will release the entire Special Report to you free of charge. Part II is below. You can find the entire series here: EWI forecasts Goldman Sachs company troubles.

Get tomorrow's financial news today! To understand what that means, you must think and act independently from the crowd. Learn how by downloading Elliott Wave International's FREE 118-page Independent Investor eBook here.

Special Section: A Flickering Financial Star (Part II)

Despite careful stewardship, Goldman's reputation faltered as stocks fell in 1969-1970. When the Penn Central Railroad went under, it was revealed that Goldman sold off most of its own Penn Central holdings before the June 1970 bankruptcy. This was another case of shifting standards, as Goldman's customers were all institutions dealing in unregistered commercial paper. They should have known the high odds of failure, as the railroad’s stock was down almost 90% when it finally failed.

As Cycle wave IV touched its low in October 1974 (S&P; see historic chart in Part I), a jury ruled, however, that Goldman “knew or should have known” that the railroad was in trouble. But Goldman Sachs company survived the negative judgment and grew quickly as the Cycle wave V bull market took off beginning in 1975.

As the chart shows, its rise to 2007 was meteoric. It was in this period that Goldman “reinvented itself” as a “risk-taking principal.” By 1994, Goldman Sachs: The Culture of Success (by Lisa Endlich) says compensation policies had tilted so heavily toward risk taking that one vice president noted, “everyone decided that they were going to become a proprietary trader.” In that year, the firm suffered its first capital loss in decades as stocks sputtered, but, within a year, the Great Asset Mania was in full force and Goldman's appetite for risk took off with that of the investment public.

In 1999, the last year of a 200-year Grand-Supercycle-degree bull market, Goldman Sachs, appropriately, went public, becoming the last major Wall Street partnership to do so. As Bob Prechter's Elliott Wave Theorist said at the time, “Some of the most conspicuous cashing in has come from the brokerage sector, which has a long history of reaching for the brass ring near peaks.”

The Partnership notes that by May 2006, when a wholesale financial flight to ever-riskier financial investments was in its very latter stages, Goldman had “the largest appetite and capacity for taking risks of all sorts, with the ability to commit substantial capital.” As other firms felt the sting of an emerging risk aversion, Goldman profited by shorting the subprime housing market and putting the squeeze on its rivals. The firm earned $11.6 billion in 2007, more than Morgan Stanley, Lehman Brothers, Bear Stearns and Citigroup combined. Merrill Lynch lost $7.8 billion that year.

Another bull market initiative explains Goldman's relative strength since 2007. It dates back to the hiring of a former U.S. Treasury Secretary, as the Dow peaked in Cycle III in 1968 (see chart in Part I). This was the firm’s first foray into the upper reaches of the U.S. government. In wave V, the flow of talent went the other way and tightened the bond, as executives regularly moved from Goldman to Washington. This process was aided in part by a Goldman policy that pays out all deferred compensation to any partner who accepts a senior position in the federal government.

In May 2006, Henry Paulson, Goldman's chairman, left to become Secretary of the U.S. Treasury. Over the course of wave V and its aftermath, when government was increasingly relied upon as the buyer of last resort, these associations proved valuable to Goldman. Eventually they will weigh heavily upon the firm, but the value persists for now because the government is playing its socionomic role and clinging tenaciously to the expired trend.

Another important late-cycle development is Goldman's all-out effort to court, rather than avoid, conflicts of interest. From the 1950s through the early 1980s, Goldman leaders assiduously avoided even the perception of a conflict of interest between the firm’s positions and those of its clients. Goldman's current leader, Lloyd Blankfein, “spends a significant part of his time managing real or perceived conflicts.” Says Blankfein, “If major clients -- governments, institutional investors, corporations, and wealthy families -- believe they can trust our judgment, we can invite them to partner with us and share in the success.”

The strategy paid off big in 2008 when Henry Paulson, who was still in charge at the Treasury, helped the taxpayer step in to rescue Goldman. According to a Vanity Fair article by Andrew Ross Sorkin, Paulson had signed an ethics letter agreeing to stay out of any matter related to Goldman. In September 2008, however, Paulson received a waiver that freed him “to help Goldman Sachs,” which was faltering under the financial meltdown of a Primary-degree bear market.

It may be that the best interests of Goldman are perfectly in line with those of the nation, but in the combative atmosphere of the next downtrend in social mood, we are quite sure that voters will not see it that way. Also, the potential for self-enrichment already appears to have overwhelmed a key player. The latest headlines reveal that another former Goldman Sachs chairman, Stephen Friedman, negotiated the “secret deal” that paid Goldman Sachs $14 billion for credit-default swaps from a bankrupt AIG. He did this as chairman of the New York Fed while also serving on the board of Goldman Sachs.

Get tomorrow's financial news today! To understand what that means, you must think and act independently from the crowd. Learn how by downloading Elliott Wave International's FREE 118-page Independent Investor eBook here.

Wednesday, April 21, 2010

Day Trading One-On-One Coaching

Rockwell Trading
Rockwell's Day Trading One-On-One Coaching Program


One on one private trading coaching is the fastest easiest way to learn how to trade the financial markets. Group training is good, but one-on-one focused coaching and training is the best choice for sure for new and even experienced traders.

Rockwell Trading is one of the most innovative and comprehensive day trading educational programs in the industry.

We teach our students HOW to trade.

We train our students on WHEN to trade.

We coach our students to trade with CONFIDENCE.

Click here for more information and registration.

Day Trading Coach Program Overview:

Rockwell Trading has made a name for itself through the high-quality education, support services and attention that we provide to our students. We want to give you exactly what you are looking for in day trading education: information, support and the guidance you need at a reasonable cost.

Our Day Trading Coach is a one-month intensive coaching program which will educate and provide you with all the necessary knowledge, tools, skills, discipline and experience you need to become a consistent day trader in today's Futures markets. Through one-on-one sessions with a veteran Rockwell coach, you will learn the essentials of day trading, master several proven trading strategies, create a personal long-term trading plan and log over 200 practice trades in multiple markets. This has all been designed to give you a critical edge in the Futures markets through hands-on application and professional mentoring.

Jump Start Your Trading Education:

It all starts with our four week Day Trading Coach Education. This is where we build your foundation as a day trader and reinforce the skills and discipline you will need to trade the Futures markets. This part of our Day Trading Coach Program includes:

* Four (4) One-On-One Intensive Coaching Sessions

Minimize your learning curve with four private tutoring sessions (conducted via phone and Internet) with a seasoned trader and scheduled at your convenience.

* Comprehensive Introduction to Multiple Trading Strategies

Learn the strategies necessary to day trade the markets, regardless of whether those markets are moving up, down or sideways.

* Professional Evaluation of over 200 Practice Trades

Build confidence by completing over 200 practice trades which are evaluated, graded and critiqued by your coach before you enter into live market trading.

* Course Binder and Reference Materials

A complete written synopsis of the Day Trading Coach program, including course summary videos, provided upon the completion of your final coaching session.

* Introduction to Six (6) or more Recommended Markets to Trade

Careful selection of the six most volatile, liquid, and diverse markets to enhance your ability of consistent and profitable market entry.

* Keys to Managing a Successful Trade

Learn how to establish and implement a trading exit strategy that will maximize your gains and minimize your losses.

* Development of a Personalized Trading Plan

Get ready to confidently trade the live markets with the aid of a personalized, written trading plan that is co-developed by you and your Rockwell coach.

* Money Management Strategies

Learn how to protect and grow your trade equity with a money management plan that is customized to meet your short, medium and long-term financial goals

* Access to the Rockwell Live Trading Support Room

The Rockwell Live Trading Support Room is open Monday through Thursday, from 9:15am – 11:30am EST. This is a terrific way for students to come together in a virtual trading room and watch the live markets together, discussing possible trades, and getting instant analysis from Rockwell trading professionals.

* Access to the Rockwell Trading Student Forum

Read comments and suggestions from students and coaches on new trading ideas and get professional opinions on a wide variety of trading topics.

* Access to all Rockwell Educational Webinars and Archive Library

Join other Rockwell students for regularly scheduled educational webinars that are designed to supplement and expand your trading knowledge base. Browse our growing library of recorded presentations, many of which feature special guest speakers that are addressing a wide variety of trading topics.

* License to use our Charting Software and Proprietary Trading Templates

Our Rockwell trading templates are designed to work with Genesis Trade Navigator* charting software and provide you with your choice of proprietary indicators, allowing you to confidently identify trending markets and possible trade entries.

* All Day Trading Coach Programs included a 45-day license to use Trade Navigator Lite charting software. After 45 days, the Trade Navigator Lite charting software can be leased for $59 per month directly from Genesis Financial Techologies, Inc.

First Coaching Session

* Define your trading goals

* Review the resources available

* Using the charting software

* Connecting to streaming data

* Beginning with one Futures market

* Trend-following strategies

* Trading in the morning vs. afternoon

* Profit target & stop loss values

* Examine sample trades

* Logging trades & setting objectives

* Homework assignment

Coaching Goal:

In the first coaching session, you will learn two different strategies for trading a trending market. We will teach you how to use our charting templates to identify conservative market entries and take trades using profit target and stop loss limits. You will also learn how to properly fill out a trading log and evaluate your performance.

Second Coaching Session

* Review homework assignment

* Evaluate Trading Log & Focus Sheet

* Discuss areas needing improvement

* Adding trading filters to your charts

* Volume & how it impacts a trade

* Intra-day support and resistance

* Counter-trend fading strategies

* Opening gaps & how to trade them

* Examples of trades not to take

* Trade management techniques

* Homework assignment

Coaching Goal:

In the second coaching session, you will learn two additional strategies, including how to fade a trending market. We will teach you how to use discretionary filters to improve the quality of your decision making process as you analyze the markets. You will also learn several trade management techniques to consider when you are already in a trade.

Click here for more information and registration.

Tuesday, April 20, 2010

Goldman Sachs & Fraud: Who Guessed?

Goldman Sach Securities Exchange Commission
Goldman Sachs Charged With Fraud: Who Could Have Guessed? Part 1


The firm's history suggests its vulnerability in periods of negative social mood.

April 16, (Reuters) - Goldman Sachs Group Inc was charged with fraud on Friday by the U.S. Securities and Exchange Commission in the structuring and marketing of a debt product tied to subprime mortgages.

Shocked? Most of the subscribers to Elliott Wave International's monthly Elliott Wave Financial Forecast probably weren't. In the November 2009 issue, the EWFF co-editors Steven Hochberg and Peter Kendall published a careful study of Goldman Sachs' history -- and made a grim forecast for the firm's future.

In this special three-part series, we will release the entire Special Report to you. Here is Part I; come back Wednesday for Part II.

Special Section: A Flickering Financial Star

At the Dow’s all-time peak in October 2007, Goldman Sachs Group Inc., was the undisputed heavyweight champion of the financial markets. And, thanks to its bailout by Warren Buffett and the U.S. Treasury as well as the liquidation of rivals Bear Stearns and Lehman Brothers, its reign lives on. Come December, earnings and bonuses will reputedly approach the record levels of 2007. If the market can hold up, it might happen. But as the stock market retreat grabs hold, Goldman Sachs will experience an epic fall.

To understand the basis for this forecast, we need to review the firm’s history in light of Socionomics and History's Hidden Engine.

At the beginning of the last century, Goldman Sachs originally made a name for itself with its first initial public offerings, United Cigar and Sears Roebuck. The deals came as the stock market made a multi-year top in 1906. Within months, the panic of 1907 was on, and a U.S. Interstate Commerce Commission investigation of the Alton Railroad Company bond offering, in which Goldman participated, was in full swing. According to The Partnership, Charles Ellis’ history of Goldman Sachs, the deal was “long remembered as ‘that unfortunate Alton deal’.” The bond issue allowed a considerable cash surplus to be paid out to shareholders in the form of a one-time dividend, a standard financial maneuver in the preceding bull market. In fact, the deal was unknown to the public until it came before the ICC in 1907. “Then, probably to the surprise of the syndicate, the verdict was practically unanimous against them. They were tried before the bar of public opinion and found guilty,” said author William H. Lough in Corporation Finance. Lough added that syndicate members “ought not be too severely criticized for they merely acted in accordance with the custom of the period.”

So it goes when social mood, and concurrently the market’s trend, changes; customary Wall Street devices are invariably recast as the instruments of evil financiers.

Another bear market problem is that Wall Street firms are just as susceptible to negative mood forces that tear away at even the most close-knit social units. From 1914-1917, a major rift emerged between the founding Goldman and Sachs families, and the Goldman side of the partnership left the firm. The tension endured through several generations, and as late as 1967 it was said that “hardly any Goldmans are on speaking terms with any Sachses.”

Larger degree social-mood reversals create larger bear-market complications. The firm’s biggest and most devastating setback came after the Supercycle degree top of 1929.

Click the Goldman Sachs Image Below for A Larger View

Goldman Sachs Fraud
Leading up to the market high, Goldman Sachs Trust Company took off, playing a role in the then-financial mania similar to the one that hedge funds perform today. With the help of successively higher levels of leverage, GSTC issued a quarter billion dollars worth of new shares the month before the September 1929 peak (many of which were held in its own account), leaving it completely exposed to the decline that followed. The firm survived only because a quick-witted former mailroom employee, Sidney Weinberg, took charge and used the stock market rally in early 1930 to jettison many of the firm’s equity positions. Weinberg also turned out to be an investment banking savant. While the firm made no money for the next 16 years, he served on the war production board and carefully cultivated key relationships in business and government. In the middle of Cycle wave III in 1956, Goldman completed the largest IPO in history, delivering Ford Motor Company into the public’s hands.

The firm was not yet a major force on Wall Street, but by hiring MBAs from top schools, fostering a reputation for fair dealing and maintaining a partnership structure that aligned the ownership of its principals with the long-term success of the firm, Weinberg laid the foundation for rapid growth. In the words of Gus Levy, Weinberg’s successor, Goldman Sachs was “long-term greedy.” Another Levy secret was to be certain that positions exposing capital were “half-sold” before they were entered into.

Come back Wednesday for Part II of this three-part Special Report from Elliott Wave International (EWI). In the meantime, get more free and insightful analysis from EWI in the Market Myths Exposed eBook. The 33-page eBook takes the 10 most dangerous investment myths head on and exposes the truth about each in a way every investor can understand. You will uncover important myths about diversifying your portfolio, the safety of your bank deposits, earnings reports, investment bubbles, inflation and deflation, small stocks, speculation, and more! Learn more about the free eBook below.

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Monday, April 19, 2010

Weekly Stock Pick

Buy Sell Hold
Buy or Sell This Week?


I don’t know whether to buy long or sell short this week. I think the market is almost ready for a correction or even a big sell off for a variety of factors, but I’m waiting for more low-risk high-reward short sell opportunities to present themselves in force before I start saying the bear market rally is over with.

Buy Reason Number 1

Buying long at this point seems like it’s a high-risk low-reward proposition right now, but then again, there still might be some momentum in this market so as long as I have a stop-loss ready if the market does decide to selloff and or tank big. Buy long Monday, stop and reverse later in the week might be a good call also if the market tries to move back up then reverses again to the downside later. Tough call right now.

Sell Reason Number 1: Fibonacci 61.8% Retracement

First, the DOW and S&P500 are getting close to some major resistance price levels right now. I’m talking about the 61.8% Fibonacci Retracement level from the October 2008 high and then big market selloff to the March 2009 lows. The Fibonacci 61.8% level on the DOW is 11,241.70 and on the S&P500 its 1,226.24 which these markets are very close to right now. The Nasdaq is over its 61.8% Fibonacci retracement which is not unusual for that index. The RSI on the Dow and S&P500 currently is diverging from the price which is a red flag warning sign that we could see a correction and or reversal to the downside in these markets anytime now.

Sell Reason Number 2: Goldman Sachs & Sovereign Debt

Some investors traders are calling the Goldman Sachs problem a short lived no big deal buying opportunity, while others are calling it a deal breaker for more upside in stocks for awhile. I see it as a setup for bigger problems to come. For me it’s more about events like Goldman Sachs and the Sovereign Debt problems that add up, pile up, over time, while the market continues on and on up and up while, then finally figures out its time to sell and the stampede for the exit comes. We are still waiting for that to happen. Its takes time for a spring to get wound up so tight that it can’t go anymore, then it unwinds hard and fast.

Jimmy Rogers Is Looking For A Correction

Billionaire investor Jim Rogers said that "Markets are overdue for a correction," Rogers told CNBC in a telephone interview Saturday. "Any market that goes up this much, this fast, this steadily without correction - it's not normal. When that sort of things happens, the market could be setting itself up for a 15 - 20% correction."

I’m inclined to agree with Rogers, but the big confirmation sell signal has not hit my stock screens yet, but I’m watching and waiting for it to happen to pull the trigger on the all sell buttons. Until then, I’ve got a new buy long position momentum play below that might work out below if the buying opportunists come in and support the market.

My Stock Pick This Week Is A Buy Long Position On Alliance Data Systems

First, Alliance Data is having their Q1 2010 earnings conference call this Wednesday April 21 at 5PM Eastern time. Analysts are looking for Alliance to report earnings of $1.37 on sales of $529 million. For entire year, analysts are expecting ADS to post Earnings Per Share of $5.98. A year ago Alliance reported EPS of $0.87 on sales of $480 million. In the previous quarter, the company reported EPS of $1.67, topping consensus estimates of $1.62.

Alliance Data stock price has risen about 25% since its February 04 year to date low. They have one of the highest return on equity ratios in the financial sector currently. The return on equity for Alliance is currently 43.1%. Jim Cramer put a sell on ADS on March 19th at about 64 a share, and Alliances stock price then went sideways to up, so maybe it still some up from here.

ADS had a higher net charge-off in the first quarter for the private label credit cards its issues, but the recent figures on the performance of their credit card loans show that while losses remain at high levels, the pace of increase is manageable for most card issuers. Another good thing for Alliance is that their delinquency rates are slowing at least for the time being.

Alliance Data is one of the top 5 companies in the data processing outsourcing services industry. Fundamentally Alliance Data’s price to book ratio is about 13 times based on a current price of $66.87 and its book value per share is $5.23 which is at the high range for its industry group. Technically Alliance Data Systems is currently above its 50-day moving average of $60.31 and above its 200-day moving average of $58.59. If these moving averages hold, Alliance may continue is upward momentum. Again, in case it doesn’t stop-loss always, and with the market the way it is right now, stop and reverse could be profitable too.

Buy Long Alliance Data Systems – Ticker ADS

Buy Entry: 65.15 to 68.49

Stop-Loss: 64.14

Take Profit Areas: 68.69 to 68.93, 72.02 to 72.27, 74.37 to 74.62

Alliance Data Systems Company Profile

Alliance Data Systems Corporation, together with its subsidiaries, provides data-driven and transaction-based marketing and customer loyalty solutions primarily in the United States and Canada. The company operates through four segments: Loyalty Services, Epsilon Marketing Services, Private Label Services, and Private Label Credit. The Loyalty Services segment includes AIR MILES Reward Program. The AIR MILES Reward Program enables consumers to earn AIR MILES reward miles as they shop within a range of retailers and other sponsors participating in the AIR MILES Reward Program. These AIR MILES reward miles could be redeemed by its collectors for travel or other awards. The Epsilon Marketing Services segment provides integrated direct marketing solutions that combine database marketing technology and analytics with a range of direct marketing services, including email marketing campaigns. This segment's products and services include marketing database services, analytical services, strategic consulting and creative services, proprietary data services, and digital communications. The Private Label Services segment encompasses card processing, billing and payment processing, and customer care and collections services for private label retailers. The Private Label Credit segment provides private label retail credit card receivables financing; and securitization of the credit card receivables that it underwrites from its private label retail card programs. The company primarily serves financial services, specialty retail, grocery and drugstore chains, petroleum retail, technology, hospitality and travel, media, and pharmaceuticals markets. Alliance Data Systems Corporation was founded in 1996 and is headquartered in Dallas, Texas.

Click here to review different investing trading software that scans analyzes stocks for different technical criteria, and trade pattern setups.

Click the Alliance Data Systems Stock Chart for a larger view.

Alliance Data System Stock Chart

Friday, April 16, 2010

Trading Expectancy vs. Expectation Differences

Ultimate Trade Analyzer
Expectancy vs. Expectation; What’s the Difference? Video


Two of the most important stats that traders should pay attention to are also two of the least understood. ‘Expectancy‘ and ‘Expectation.’ They are NOT the same.

I’m not going to get into any lengthy discussion here. There are plenty of great articles out there on the web and in less than a split second, a google search will pull up many. I highly encourage you to read up on these very two important stats. This video is designed to merely explain to you a simple way to look at the difference between these two stats, how to find them on the UTA, and most importantly, how to quickly interpret what the numbers mean to your trading.

Click here to watch the video.

Thursday, April 15, 2010

Why Economic Forecasts Often Fail

Economic Forecast Failure
An Educational Powerful and FREE 118-page eBook to Help Investors Think Independently


Let's begin with a paradox: The one constant in our society is dramatic change. This is the main reason why projecting present conditions into the future often fails.

"If someone had asked you in 1972 to project the future of China, would anyone have said, in a single generation, they will be more productive than the United States and be a highly capitalist country?

"Project the U.S. space program in 1969, in fact many people did -- there are plenty of papers you can read from 1969 to 1970 saying, well, it's obvious at this pace we'll both have colonies on the Moon very soon and we'll have men on Mars...

"One could just as well ask someone to project, say, the Roman stock market in 100 A.D. I doubt if you'd have found anyone who said, well, it's essentially going to go to zero."

Robert Prechter at the London School of Economics, lecture "Toward a New Science of Social Prediction."

Examples of linear thinking may be well-known like the ones above, or they may happen in our individual spheres. Mom sees Johnny eating animal crackers Monday, Tuesday and Wednesday. The box is now empty. She buys more -- but the box remains unopened for days. Johnny wants a break from animal crackers. It's an elementary example, but a demonstration of linear thinking nonetheless.

Remove dangerous linear thinking from your investment process -- download the free 118-page Independent Investor eBook. The Independent Investor eBook shows you exactly what moves markets and what doesn't. You might be surprised to discover it's not the Fed or "surprise" news events. Learn more, and download your free ebook.

The socially awkward classmate you knew in high school is now the boss of the former class president who was dubbed "most likely to succeed." Projections for both of their futures would have widely missed the mark.

SUVs are selling like snow cones on an August afternoon in Luckenbach, Texas... "let's make more," says Detroit. "Dramatic change" takes over in the form of sky-high gas prices followed by a recession and a social distaste for excess -- and SUV sales sink.

Point is: When it comes to your money, pay attention to the pitfalls of linear thinking.

The markets of today may not resemble the markets of tomorrow.

Keep in mind the concept of dramatic change. This cannot be over-emphasized and bears repeating: Major change is not an occasional occurrence throughout history; paradoxically, it's the only constant.

Even with the benefit of reviewing the above examples, it can be difficult to imagine, ahead of time, a future which is strikingly different from the present. But you must leave your mind open to such a possibility -- nay, probability.

Elliott Wave International believes the stock market in the immediate years ahead will probably show big price changes. The foundation for that forecast is the Elliott Wave Principle, which is based on decades of market observation and proven mathematical patterns -- not linear projections.

"...Elliott can prepare you psychologically for the fluctuating nature of price movement and free you from sharing the widely practiced analytical error of forever projecting today's trends linearly into the future. Most important, the Wave Principle often indicates in advance the relative magnitude of the next period of market progress or regress." -- Frost and Prechter, The Elliott Wave Principle

What is the magnitude of the next market period likely to be?

You may be astonished to find out if you've been thinking "linearly" up until now.

Click here to benefit and profit from the real reality of the markets, for free.

Wednesday, April 14, 2010

Disciplined Trading

The Disciplined Trader
Attention! All Stock, FOREX, Futures, and Options Traders


"To Be A Winning Disciplined Trader, You MUST Install Within You The Mental/Emotional Habits and Skills of a Winning Disciplined Trader, And We Can Make That A Reality For You Within Weeks"

The Fact Is:

The Best Trading System In The World Won’t Do You Much Good If You Don’t Have The Mental and Emotional Discipline to Run Your Trading Plan.

This is not a shocking statement to any trader who has traded for even a few months.

Has This Happened To You?

Inability to pull the trigger on a trade, watching markets “go” without you when your trading plan GAVE you the signal to get into the market…

Lifting your stop because you didn’t want the market to ‘take you out’ only to move higher again (because that’s what happened to you the last time), then to see a free-fall result where you get sick to your stomach when you finally DO get out…

Not taking your profit when your trading system tells you to because a news report eluded to the fact that ‘this could be the big one’, only to have the market come back down and have you successfully turn a nice winner into a big loser…

Sound familiar?

This is ALL DUE to lack of trading discipline… the strength…no, the GUTS to stick to your trading plan.

The good news is you're fixable.

The REAL Key To Being A Successful Trader Is NOT Having The Right Trading System.

If your trading system WAS the key to being a successful trader, every trader who used that trading system would be a winning trader. And that’s not true.

The REAL KEY To becoming a successful trader is to make sure you have the mental and emotional discipline to run your trading plan.

So the question becomes,

“How can I become a disciplined trader…so I follow my trading plan without hesitation, fear or doubt…every time?”

Here’s What WON’T Make You A Disciplined Trader (These May Surprise You!)

* Reading A Book About What You Should Be Doing – Sure, when you read a book that tells you the horrors of trading with reckless abandon, concluding in the suggestion that you need to be more disciplined with your trading… you’ll walk away saying to yourself, “The author is right! I have to be more disciplined!” Then what? Unless you are given the tools to change your trading habits and SUPPORTED in using those tools, you’ll just wind up frustrated with the fact that you’ll remain the same out-of-control trader!

* Learning From Your Mistakes – If you only analyze your trading mistakes on the conscious level and your subconscious mind is still on the same old program of “I’m likely to make another mistake again”, then nothing will change. You see, 90% of the power of mind is wielded by the subconscious mind…which can work for you or against you. So it’s IMPERATIVE to have your subconscious mind working FOR you. Learning from your mistakes on a conscious level will do little to change your trading habits. In fact, the result will just be more frustration.

* Talking To Other Traders About How Tough The Market Is – Misery loves company. It’s easy to twist the truth. Somehow, you and your trading “friends” twist the truth to make the MARKET responsible for your losses, not you. Until you take responsibility for ALL of your trading results, you and your trading buddies will just go round and round… then downhill.

I haven’t put you through the pain of the truth, without knowing I had a CLEAR and CONCISE solution to show you how to be the wise and disciplined trader you CAN be.

So Here’s What DOES WORK To Become A Disciplined Trader

* Adopting A Method To Train Your Subconscious Mind – There are two methodologies, hypnosis and NLP (Neuro-Linguistic Programming), that are effective in influencing your subconscious mind. The more specific the suggestions you make to the subconscious mind, meaning specific suggestions for traders, the more effective the suggestions will be in changing your behavior patterns…whether that means having the strength to pull the trigger on your trades or keeping your stops in where they’re supposed to be. “Old-school” hypnosis, however, requires 20 or 30 minutes in a relaxed (alpha brainwave) state to “train”, and that’s a lot of time for traders. In a moment, I’ll let you know how you can train in 8 or 9 minutes!

* Doing “Affirmations” – You know…listening to positive statements over and over again while your riding in your car, working out, taking a walk, etc. Convenient. However, because affirmations are done in a “waking state” (not when your relaxed), they are marginally effective. However, if you use subconscious training (relaxed-state training) as your main training, you can use affirmations to effectively SUPPORT and ENHANCE the work you are doing with your relaxed-state training to empower your subconscious mind.

* Having a Well-Built Trading Plan - What good is having being disciplined, if you don't have a good trading plan to follow. If your trading plan is weak, you'll be disciplining yourself down the road to weak outcome... losing. On the other hand, if your trading plan is built correctly, with the right elements.. and tested properly, you'll NATURALLY have confidence and this will solidify your ability to be disciplined. Make sense?

* Having Your Risk Management and Money Management In Place - This is the central location where most traders go wrong. Controlling risk. You need to make sure that your trading plan has an extra doses of risk management and money management (yes, they are two separate things). You will find an inner confidence you NEVER HAD, when you KNOW that you've tended to having your risk under control. Put a star next to this.

* Keeping A Trading Journal – When you review your trades on a daily basis and write down your experiences and how you want to improve for tomorrow’s trading, it’s very powerful. You’re involving the senses of touch (writing) , vision (looking at what you’re writing), hearing (yes, if you whisper to yourself while you write)… all conduits to impressing neuro-pathways on the subconscious mind. But possibly even MORE importantly, by keeping a journal, you’re taking responsibility for the day’s trading results and your projecting what you will do to improve them. Keeping your journal properly (and we’ll show you how) is a very effective tool to get you disciplined.

* Have A Positive Support System –Once you accept responsibility for your trading outcomes (rather than blaming everything around you), it's important to surround yourself with like-thinking traders. This likely means that you'll need to let go of old trading "friends" as you begin to associate yourself with traders who will empower you rather than sap your confidence. Many of us traders are "private" types, and that's perfectly fine. But when you do need to reach out for an opinion or to share an idea, you want to do with traders who are taking responsibility for their outcomes and not with those living in a fantasy world.

Now that you have a little better handle on what will work for you to get you to be the “Ice-In-The-Veins” trader that you desire to be, you’ll be glad to know that Subconscious Training Corporation has put together a revolutionary intensive, JUST FOR YOU, the purpose of which is to have you on your way to being a Rock-Solid disciplined trader within weeks.

Click here for The Disciplined Trader Intensive Program

Tuesday, April 13, 2010

Momentum Trading

Elite WaveTrader
The Evolution of Momentum Trading


With momentum trading, traders concentrate on stocks that are moving significantly in one direction with big volume. Momentum traders may hold their positions for minutes hours or days at a time, depending on how fast the stock is moving until it makes a reversal or change in direction.

Stocks move in cycles-and learning to interpret where a stock is in a cycle can lead to an uncanny ability to capture significant gains

Along with stocks, the market itself moves in cycles; knowing which bias to use when (short or long) can hyper-charge your trading results.

Premier stocks can provide significant clues to their long-term potential-knowing what those clues are is as simple as following a few basic rules

Finding these premier “hi-scoring” stocks is made much simpler when you understand that patterns tend to repeat themselves.

Realizing that a certain breed of stocks produce these repetitive patterns, stock scans can be built to target the next batch of prospects.

Finding and analyzing these stocks for buy signals can be the most productive thing you do financially for the small amount of effort invested

This system excels at keeping your money working hard - the annual ROI (return-on-investment) on the right momentum stocks can be phenomenal

In fact, the top traders of all time are momentum traders including one who turned a $10,000 account into $42 million in 2 years a few years back (try to do that with Forex ;).

You will understand why the old way of investing in the markets is a thing of the past…getting wrapped up in “noise” can cost you a lot of money in missed opportunities.

It’s All About Time/ Price

The basis of any successful momentum trading system is how the price action performs within specific time periods.

But whereas, many momentum trading systems operate within a set of broad parameters kind of like a hatchet, my long-term study of the market’s mega movers showed that there were excellent common entry and exit signals more like a scalpel.

How would you like to catch 99% of a move? This is not an uncommon occurrence when you understand how the price action operates within sets of waves inside of these cycles.

Getting back to my point about time/ price, what this means simply is what the price action does in a defined period of time will often telegraph its future potential.

Identifying these stocks at the correct point in time in its cycles can lead to unfathomable returns in the markets.

In fact I like to use the analogy that martial arts can teach us much about stock selection. Have you ever seen the one-inch punch?

This was something the late kung fu master Bruce Lee excelled at. He had the ability to produce damaging blows to his opponents with a punch that began one inch from the person’s body.

It is a demonstration of the explosive strength of breakouts that can happen when the right conditions of price tension and time intertwine.

In fact a recent biotech stock did just that with a 300% gain in just a few weeks. This was an optionable stock producing even more stratospheric gains on the options.

This is what can happen when the right momentum meets the right cycles.

These are just some of the simple but little known concepts that consistently allow traders to identify the top potential trading prospects in the market at any given time to momentum trade.

Momemtun trading has provided me my best profits over the years compared to other trading strategies.

If you could learned and be profitable with momentum trading would you be interested? If so, read on.

Elite WaveTrader Momentum Trading System

DVD #1- Momentum Trading Introduction And Basics

DVD #2- Elite Wavetrader Trades

DVD #3- How To Analyze Momentum & Pattern Quality To Isolate The Top Trade Prospects

DVD #4 - Stock Cycles – How To Nail Turning Points in a Stock’s Price Trend With Uncanny Accuracy

DVD #5 - The Art of Stock Timing – How Massive Stock Market Wealth Is Created

DVD #6 - Fundamentals and Stock Scoring – How To Shine A Spotlight on the Market’s Top Trading Prospects

DVD #7 - Introduction to Short-Term Swing Trading – How To Generate Momentum Stock Profits in an “Iffy” Market

DVD #8 - Quick Start & Simple Scans - How To Get Started Quickly With Elite Wavetrader

Elite Wavetrader Trading Course Manuals

Plus 9 Extra Bonuses

Click here to review purchase the Elite WaveTrader Momentum Trading System