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Archive for January, 2008
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Wednesday, January 9th, 2008Watch Out For These Warning Signs of Online Trading Fraud
Wednesday, January 9th, 2008Time: 11:15
From: Way West of Wall Street
Dear Friend & Subscriber,
Yesterday we talked about Online Trading Fraud Awareness and Prevention. Today we are continuing to look for these Commodity Futures Trading Commission warning signs of online trading fraud.
I am currently building a list of what to watch out for since some people out there use highly advanced copywriting (marketing) techniques that play on your emotions to get you to puchase high priced online trading classes and study programs
Sincerely,
Michael MeAngelo
Online Trading Fraud Awareness and Prevention
Tuesday, January 8th, 2008Many people often ask me what I think of a particular online day trading course or live class. Since the industry is flooded with all kinds of programs, it is impossible for me to give you my opinion on all of them.
I can make some general observations about Online Trading Fraud Awareness and Prevention.
The Commodity Futures Trading Commission (CFTC) is a good place to start.
The CFTC’s fraud awareness and prevention program involves
- educating futures market users
- protecting futures market participants and
- reviewing information and complaints that market participants send to us.
The CFTC is the Federal agency that regulates the trading of commodity futures and options contracts in the United States and takes action against firms suspected of illegally or fraudulently selling commodity futures and options.
Before you trade in commodities or futures, know the kinds and signs of fraud and the basics of futures trading.
Protect yourself from the many types of commodities fraud that exist in today’s financial markets.
Be suspicious of a promise of high profits with low risk. Scams that falsely promise high profits with low risks are everywhere. Many are targeted at specific ethnic communities using the language of that community, from New York to South Florida, from the Southwest to California, and in other areas.
Be wary of any firm or individual offering to sell you commodity futures or options on commodities, including
- precious metals, such as silver or gold
- foreign currency, such as Euros, Yen, or Deutschmarks, or
- crude oil, heating oil, unleaded gas, or agricultural products such as corn, soybeans, or cattle.
Be wary of any firm or individual offering to trade your money for you in commodity futures or options, or to pool your money with other customers.
The commodity futures and option markets are very risky and you can lose your entire investment very quickly. Anyone who claims otherwise might be breaking the law. Always ask for proof.
Required Government Disclosure
Friday, January 4th, 2008The risk of loss in trading securities, options, futures and forex can be substantial. Customers must consider all relevant risk factors including their own personal financial situation before trading. Online Trading involves risk and are not suitable for all investors. Online Trading on margin carries a high level of risk as well as its own unique risk.
FUTURES TRADING IS NOT FOR EVERYONE. THERE ARE LARGE POTENTIAL REWARDS BY TRADING FUTURES, BUT THERE ARE ALSO LARGE POTENTIAL RISKS. PAST PERFORMANCE AND / OR HYPOTHETICAL RESULTS OF ANY TRADING METHOD ARE NOT INDICATIVE OF FUTURE RESULTS. YOU MUST BE AWARE OF THESE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS SITE IS FOR EDUCATIONAL AND ENTERTAINMENT PURPOSES ONLY AND IS NEITHER A SOLICITATION, NOR AN OFFER TO BUY/SELL FUTURES, NOR AN ENCOURAGEMENT TO TRADE . NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO, ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEB SITE. BE AWARE THAT THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A RISK OF LOSS IN TRADING FUTURES THAT COULD AMOUNT TO MORE THAN YOU HAVE IN YOUR TRADING ACCOUNT. ALL TRADES REFERENCED ARE HYPOTHETICAL. UNDER NO CIRCUMSTANCES ARE ANY OF THE TRADES QUOTED, POSTED OR IMPLIED TO BE TAKEN AS PERSONAL OR INDIVIDUAL TRADING ADVICE.
Online Trading Software
Thursday, January 3rd, 2008Date: January 03, 2008
Time: 10:10
From: Way West of Wall Street
Dear Friend & Subscriber,
The software that you need for online day trading and trading in general comes down to three basic components.
Once again everyone has their own preference when it comes to brokerage services, financial and market information, and charting software.
The first piece of software you will need is from your brokerage account. There are many to choose from and everyone has pros and cons. I look for ease of use and a competitive cost structure. Most of these firms offer online access through a web browser so there is nothing to download which is very nice. I would recommend staying with a main stream broker that has been established from over 10 years.
The second and third piece of software that you need will be a data feed and charting software package. These come in all shapes and sizes and can be a bit confusing. However, it becomes very easy to sort through the choices if you can answer these three questions:
- 1) What Kind of trading do you do? (Day Trading, Swing Trading, Long Term, Short Term, etc)
- 2) What do you trade? (Currencies, Stocks, Options, Futures, etc.)
- 3) How much are you willing to spend per month in fees?
There are many charting packages and data feed that are available for free on the internet. They are usually delayed by 20 minutes or more. If you are doing longer term trades, these kinds of services are fine.
If you are day trading or scalping you will need real-time financial and market information and a charting software package.
These packages cost anywhere between $99.00 to $490 per month depending on the markets and features that you need.
The data feed and charting package that I use cost me $150 per month but it is well worth the price.
I recommend that you purchase your real-time financial and market information and charting service from the same vendor to insure that you charting software is getting the correct data.
You will also need to make sure that your brokerage and real-time financial and market information that you are buying includes the products that you want to trade.
For example, if you want to trade the Russell 2000 E-mini (ER2), you want to make sure your brokerage account lets you trade this future and your real-time financial and market information provider can provide you with the data.
Sincerely,
Michael MeAngelo
Online Trading Computer Equipment
Wednesday, January 2nd, 2008Date: January 02, 2008
Time: 13:59
From: Way West of Wall Street
Dear Friend & Subscriber,
I have been getting a lot of questions on my computer set up for online trading.
First of all, the computer hardware set up has very little to do with success (i.e. profitability) online day trading.
I am constantly amazed at all of the multiple monitors that online traders hook up to their computer systems. I am also amazed at the amount of CPU’s and other goodies that are integrated into the systems.
There are several companies that cater to this niche computer market because they know that when people first start online trading, they go into a buying frenzy and spend big bucks to get a system, “because it is built for online trading.”
Beginning online traders tend to buy the latest technology at a high price points and use the excuse that they need it to make a profit. This brings me to a point that you should write down read before you buy any computer system for your online trading business.
Point Number One:
It’s not the computer equipment or setup; it’s the trader, that makes money online trading.
Now with that out of the way, Let me make a few points. Your internet connection should be with a reputable company. If you are going to spend some money, this is the place to do it. If you cannot connect to your online data services or your brokerage accounts, you cannot trade.
Also, why you don’t need the latest and greatest technology, you also cannot use the oldest and worst computer from 1995 still running Windows 95.
A good rule is to check with your charting/data feed and even your high speed internet provider and see what minimum specifications they recommend and make sure you are above them.
Let’s begin to look at all of the items that you need. This is a very simple list so you are not overwhelmed.
- 1) A reliable high speed internet connection. (DSL, Cable, Satellite),
- 2) A Computer over the minimum specifications as stated by your charting/data feed company. (I like to have at least 4GB to 6GB of memory on board since I have many windows open at once)
- 3) A monitor that is at least 19 inchs. The bigger the better. I do not believe in multiple monitors since I try to keep my trading plan very simple, multiple monitors tend to create information paralysis since there is such a thing as too much information. Multi monitors also add considerable costs to your system since you need each one as well as buy higher end or multiple graphics cards
- 4) A UPS (Uninterrupted Power Supply) This will keep your desktop computer, monitor, modem powered if there is a power outage at your office. Believe me you don’t want to have a trade placed online and then not be able to manage it because you have no power.
Costco has all of these items (except for the internet connection) at very good prices. They also have a 90 day return policy and a concierge service which is why I buy my systems from them.
Just an FYI, I went to Costco and configured a HP desktop computer. I took the same configuration and went to one of the computer companies that focus on trading computers for online traders with multiple monitors and cool, “Trading” computer names. Guess What?
For the same specifications, Costco was $747.67 cheaper. Just some food for thought.
That is all you need. In my next post I will discuss the software that you will need.
Sincerely,
Michael MeAngelo