Archive for March, 2008

TradeStation Securities Ranked #1 Online Broker by BARRON’S Magazine

Friday, March 28th, 2008

I got this in a Tradestation e-mail and I though I would pass it on to you. As you know I am a Tradestation fan.

We’re happy to announce that Barron’s magazine has ranked TradeStation Securities the #1 Online Broker in its annual review of online brokerage firms. This is a great honor for us that we’d like to share with you. The TradeStation Strategy Trading Community is unlike any other. Your enhancement suggestions that help us shape the product and your willingness to share strategy trading ideas and help other community members are some of the reasons we received this recognition.

TradeStation not only won for “best overall broker,” the biggest prize, but was also the leader in three out of the four subcategories that were ranked — “best for frequent traders,” “best for options traders” and “best for international traders.” TradeStation was ranked superior, overall, to 22 other online brokerages, including Interactive Brokers, optionsXpress, thinkorswim, Charles Schwab, E*Trade Securities, Fidelity Investments, Scottrade, and TD Ameritrade.

The review highlighted TradeStation’s compelling strengths, stating: “What pushes this software-based firm to the top is its incredible trading technology and its powerful analysis, charting and back-testing capabilities.” Referring to the trading system as a “Porsche 911GT3,” the reviewer added, “The average TradeStation customer puts on 640 trades a year … That’s why it’s our top pick for the frequent trader as well.”

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My Favorite Trading Quotes

Wednesday, March 26th, 2008

“Amateurs manage money by taking risk, professionals manage risk by taking money.”
“I trade, therefore I am.”
“How you trade is more important than what you trade.”
“If it’s not in the chart, its only in your mind.”
“Price doesn’t know or care what you think about it.”
“It’s better to prepare than predict.”
“Stop your mind and mind your stop.”
“Thinking without learning can be dangerous, learning without thinking can be disastrous.”
“Lightning reflexes are necessary in trading; they’re necessary to get you out of bad trades, not into good trades.”
“Poor discipline is knowing what to do, and not doing it; knowing what not to do, and doing it; or “not” knowing what to do, and doing anything.”
“You can’t predict when it will happen, and you can’t trade it after it has happened; so you must recognize when it happens.”
“Trading is basically simple; but getting to simple is complicated.”
“You can lead a trader to knowledge, but you can’t make them think.”
“Price is what happens while you’re watching your indicators.”
“Put the trade on right; then you relax, and let the trade work.”
“Some people just trade to manage their money; some people just manage to trade their money.”

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Dow Jones US Economic Indicators Calendar

Thursday, March 20th, 2008

Some readers have asked me what news events Fundamental traders use to trade. Below is a list of events coming up in March that Fundamental traders may be interested in trading.

Dow Jones US Economic Indicators Calendar
All dates are in ET/GMT

Indicator Date Time Last
Feb Existing Home Sales March 24 1000/1400 N/A
ICSC Chain Store Sales Index For Mar 22 March 25 0745/1145 N/A
Redbook Retail Sales Index For Mar 22 March 25 0855/1255 N/A
Mar Conference Board Consumer Confidence March 25 1000/1400 N/A
Mar Richmond Fed Manufacturing Index March 25 1000/1400 N/A
ABC/Wash Post Consumer Conf For Mar 23 March 25 1700/2100 N/A
Feb Durable Goods Orders March 26 0830/1230 N/A
Feb New Home Sales March 26 1000/1400 N/A
Initial Jobless Claims For Mar 22 Week March 27 0830/1230 N/A
4Q Final GDP March 27 0830/1230 N/A
4Q Corporate Profits March 27 0830/1230 N/A
Feb Help-Wanted Index March 27 1000/1400 N/A
DJ-BTMU Business Barometer For Mar 8 March 27 1000/1400 N/A
Feb Personal Income March 28 0830/1230 N/A
Feb Personal Spending March 28 0830/1230 N/A
End-Mar Reuters/U Mich Sentiment Index March 28 1000/1400 N/A

March 2008 Futures Calendar All Report Times are Central
Monday
24 Easter Monday
Export Inspections 10:00

Tuesday
25 Consumer Confidence 9:00
LT: Mar TOCOM Rubber
Apr TOCOM Gasoline & Kerosene

Wednesday
26 Adv Durable Goods 7:30
New Home Sales 9:00
API / EIA Energy Stks 9:30
LT: Mar Pork Bellies
LTO: Apr Copper/CBT & NY Gold & Silver/NY Ht Oil, Nat Gas & RBOB

Thursday
27 Census Crush^ 7:00
Cotton Consumption^ 7:00
Export Sales 7:30
GDP (Q4 ‘07) 7:30
Jobless Claims 7:30
EIA Gas Storage 9:30
LT: Mar Copper/Long Gilt/CBT & NY Gold & Silver/NY Platinum & Palladium
Apr NY Nat Gas

Friday
28 Dairy Products Prices 7:30
Personal Income 7:30
Hogs and Pigs 2:00
FN: Apr NY Nat Gas
LT: Mar Hang Seng
Apr ICE Ht Oil, Nat Gas, RBOB
LTO: Mar Hang Seng

FN: First Notice Day
LT: Last Trading Day Futures
LTO: Last Trading Day Options
^ Tentative Date
-2 yr Note dates subject to change based on US Treasury choice on Notice Issue Day.
WCE: Winnipeg Commodity Exchange
Government and Exchange dates can change without notice; please verify.
Holidays listed here are not necessarily exchange holidays.
Currencies = Euro, Japanese Yen, Swiss Franc, British Pound & Australian Dollar

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Fed Aggressively Cuts Funds Rate by Three-Fourths of a Percentage Point

Tuesday, March 18th, 2008

The Fed Cut the interest rate again today. This brings up a lesson in different trading theories.

When you trade, most people use Fundamental Analysis or Technical Analysis or a combination of the two.

Traders that use financial information and press releases to predict the future market prices are Fundamental traders. It has been my experience that Fundamental traders, trade the news. Fundamental traders would have traded this rate cut very aggressively.

Traders that use technical analysis, use chart patterns, indicators, etc, to predict the future market prices.

I am a Technical trader because I believe that Fundamental traders enter the trades too late. When news hits the streets, the market professionals have already acted on the prices which is too late for the smaller investors like you and I.

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4 Ways Traders Get the Odds wrong

Friday, March 7th, 2008

1) Your Emotions and risk levels cannot be separated

Let’s be realistic, fear is a quick emotional calculation of the odds (a quick assessment of risk, based on emotions.) It is often not mathematically based that leads you to the wrong conclusion.

2) Fear causes predictable behavior

The fear of loss causes you to exit a winning trade too early and hang on to a losing trade to long. You know this is a predictable behavior. So if you recognize that fear is controlling your behavior, you can control that behavior.

3) You like to think you are in control of the market

The only thing you control is your entry and exit order. You have no control over the market.

4) You substitute one trading system for another

Once your system enters a drawdown, you tend to look for another trading system that is doing better. You must remember all trading system will have periods of draw downs. There is no Holy Grail in Trading.

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A quick fix for the feelings of failure after a losing trade

Wednesday, March 5th, 2008

Here is a quick fix for the feelings of failure after a losing trade.

Trading involves losing money. There is no way around this fact.

Feeling like a failure after a losing trade is a normal part of life. It even brings on feelings of depression. A lot of traders will tell you to analyze the trade. Did you follow your trading plan? If so, don’t worry, be happy.

However, even if I followed my plan, it still would get depressed after losing some money.

I found an interesting cure to the problem. If I was having depressing thoughts, I tried to have them quickly. That’s right; I would speed up my mental thoughts.

I did a little research and I found many studies that showed people who were made to think faster (by timed readings or by making lists in under 20 seconds) , reported being happier.

Before you dismiss this as some bogus psychology, try it right now. Whatever you are thinking about, think about it very quickly.

Do you feel better? I bet you do.

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