The Genius Trader Newsletter
Posted by Martin Thomas on August 4, 2009 · Leave a Comment
The Genius Trader provides a unique stock market newsletter.
Each newsletter you will receive information about:
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Technical Analysis lessons of Stocks, Futures, Options and Forex
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Market Commentary and Trading Strategies you can use right now
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Techniques to gain emotional mastery
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How to enhance your trading performance so you trade in an optimal state and improve your profits
- Countless tips and secrets for releasing the power and the combined strength of resources that you already carry within you
- Amazing discoveries to instantly understand your emotions and take actions that will improve your profits
- Easy ways to absorb information, without even trying
- Sure strategies to deal with overwhelming emotions during trading
- New behavioral patterns that will make you feel better about yourself
- Technical analysis strategies, that will assist you to identify endless trading opportunities
- Highly profitable setups that I use to profit from in the markets
- Money management techniques used by hedge funds
WE COVER MONEY-MANAGEMENT AND MIND-MANAGEMENT
Stay Ahead of the Markets
Subscribe to the free Genius Trader stock market newsletter
Be the Master of Your Emotions and Learn trading strategies used by the pro’s
Weekly insights provided by:
Martin Thomas, The Investor’s Advisor
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Commodity Futures Price
Posted by Martin Thomas on June 12, 2010 · Leave a Comment
Understand the difference between Futures and options trading in commodity futures. A futures contract confers the obligation to buy or sell an underlying asset in this case the commodity if the contract is held until expiration. In fact, many traders will close their position before expiration. Producers though who are hedging commodities may decide to take delivery of the underlying commodity. In another case buying calls and buying puts in the commodity futures market confers the option to buy or sell but not the obligation. Selling calls and selling puts, confers the obligation if the buyer decides to exercise the option. There is a major benefit to buying options, which is, the trader only loses their premium if the commodity price does not move as expected.
Below is my video about trading commodities futures
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Forex and Central Banks
Posted by Martin Thomas on May 6, 2010 · Leave a Comment
Central bankers control interest rates, so when forex trading we need to monitor their rhetoric and actions regarding lowering, raising and keeping interest rates unchanged. If you have read my other blogs about the forex market you will know that central banks conduct their rate policies based on inflation they continually study economic data for any signs of it. The good news is we also have access to this info.
These enables us to analyse the same data and think about what action we would take if we were head of a central bank? Combining this with forex technical analysis will help us develop our bias for that currency. Studying economic data is referred to as forex fundamental analysis
Forex economics
As the US Dollar is the most important currency, I’ll focus on the most popular inflation reports for the US economy:
- GDP: Gross Domestic Product
- PPI: Producer Price Index
- CPI: Consumer Price Index
- Retail Sales
- Housing
- ISM: Institute of Supply Management index
- NFP: Nonfarm payrolls
An individual announcement isn’t usually that important in the long term. When looking to implement our trading strategies we should pay more attention to the overall trend of each different announcement. If we notice inflation rising and each report confirms this over a 6 month period, we can develop a bias for that currency because we would be right to assume that the central bank could be considering a rate hike to deal with inflation. Remember this because it is important, higher interest rates attracts more investors this creates more demand for that currency this usually leads to the currency rising in value.
It is still important to use technical indicators in conjunction with fundamental analysis and it is also important to understand the role of central banks.
- They influence monetary and credit conditions so a healthy economy can develop
- They try to reduce the risk of boom and bust cycles (I use the word “try”)
- They regulate the banking system so we the consumers are protected
Each central banks role varies. the information above will give you a basic understanding of how they function. If you decide to take up forex day trading you will only use technical analysis however it is still important to know when key inflation data is being released and I strongly advise you not to intra-day trade just after the data is released as the forex markets can become extremely volatile and technical indicators lose their value.
Below is my video about currencies with higher interest rates
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FOREX
Posted by Martin Thomas on April 12, 2010 · Leave a Comment
What is FOREX?
FOREX also referred to as the foreign exchange is the market in which currencies are traded against one another. The FOREX market is the largest market in the world trading in excess of $1.5 trillion US dollars. This market is open for 24 hours a day (except for weekends) and it is extremely volatile. When you see and hear the term FOREX, you may see it used interchangeably with terms such as foreign exchange, FX, and currency market.
As you learn how to trade FOREX you discover that this market is an over-the-counter market. This means that all transactions are completed either via phone, email, fax, or online. There is not a physical location where buyers and sellers get together to meet and exchange currencies, or FOREX. Of course since this market deals with currencies from around the world and is again open 24 hours a day, it is great for those needing to schedule their trading hours around their own individual schedule. This is one reason why FOREX trading is particularly attractive to day traders.
FOREX technical analysis is used by day traders and it involves the use of charts and technical indicators. Charts and technical indicators are used in order to identify price patterns that are determined by market behavior. Day traders will use a combination of technical indicators as well as trading software in order to do this. There are many different trading strategies that FOREX traders must learn about in order to learn to trade successfully. Some of these trading strategies include the use of technical indicators such as moving averages, Fibonacci, and/or the Bollinger bands. The types of indicators used are subject to the FOREX trader, but most traders will combine at least 2-3 technical indicators as part of their trading plan.
The major FOREX exchanges are located in London, New York and Tokyo with additional exchanges in Zurich, Hong Kong, Singapore, Frankfurt, as well as Sydney and Paris. These exchanges account for the majority of the transactions that take place 24 hours per day in the FOREX market.
The major currencies are:
(symbol/country/currency)
USD /United States/Dollar
EUR /Euro members/Euro
JPY /Japan/Yen
GBP/Great Britain/Pound
CHF/Switzerland/Franc
CAD/Canada/Dollar
AUD/Australia/Dollar
NZD/New Zealand Dollar
FOREX is a great market to trade and is one that every experienced or beginner investor should explore and learn about.
Please continue to learn about the great world of FOREX trading and see if it is a market that interests you.
Below is my video
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Stocks Analysis
Posted by Martin Thomas on March 30, 2010 · Leave a Comment
There is a lot of information to look at when performing stocks analysis such as the types of stock and the stock value. In today’s article we will take a look at the different types of stocks as well as ways to determine stock value.
There are three types of stock that we will discuss today including growth stocks, value stocks, and dividends. Investors also often refer to themselves as growth investors, value investors, or dividend investors when investing in the stock market.
- Growth stocks – a lot of investors will follow a growth strategy and they will look for those companies that are prospects for growing their sales and earnings along with other stock market information. It is important to note that a stock’s price reflects how profitable investors think a company will be in the future. Those stocks that increase their sales from one year to the next by at least 15% usually qualify as growth stocks.
- Value stocks – when looking at a stocks analysis value investors follow a different route. Value investors believe that the broader stock market always overreacts to news about a company. These investors try to find stocks that were beaten down due to temporary problems that can be fixed, perhaps even stocks that were hot stocks for a while. They look for share prices at bargain levels.
- Dividends – dividend investors are paid while they hold stock unlike growth and value investors who are paid only when they sell stock. Dividend investors buy stock that pay a cash dividend based on the number of shares owned, and typically on a quarterly basis. These investors look for those companies that are financially solid.
As you learn trading and investing you also must learn how to determine a stock’s value. We discuss some of the most commonly used valuation ratios below.
- Price to earnings (P/E) – this ratio is a company’s stock price divided by how much it earns per share over 12 months. When calculating this ratio you should use the most recent 12 month’s earnings. This ratio is the most widely used valuation ratio when performing a stocks analysis.
- Price to sales (P/S) – this ratio is a company’s stock price dividend by the most recent 12 months’ sales per share. You can calculate this ratio when a company loses money in reporting period. You cannot calculate the P/E in that situation.
- Price to book (P/B) – this is a company’s assets minus it liabilities. It is also referred to as the book value and it divides a company’s stock price by its book value per share. Value investors prefer this ratio over others
Below is my video
We are experiencing some technical issues and I’m unable to add a video
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Trading Stock Options
Posted by Martin Thomas on March 16, 2010 · Leave a Comment
Trading Stock Options – Hedging and Speculation
Many stock investors practice trading stock options due to their versatility and leverage. It does not take as much of a stock price movement to generate a significant profit. In today’s article we will discuss two areas that stock options are used to make money in the stock market.
Speculation is one way that stock options are used and it is considered by many to be a risky way to make money when stock trading online. Speculation is basically trading stocks based on the prediction that a stock price will either go up or down. While it is considered risky, many investors make money trading stock options in this fashion. You not only need to be able to predict whether or not the stock value will go up or down, but you must also predict the time frame in which it will occur. Stock options are no place for the emotional investor even though you can make money when the market goes down, up, or even if it goes sideways. Those that wish to practice trading options are typically more seasoned investors who have learned to master emotional trading as well as the stock market.
Hedging is another function of options trading and it acts as a form of insurance. Investors use hedging when trading options in order to insure their investments against a downturn. Many large institutions as well as individual investors use hedging and there are numerous hedging strategies that have proven successful in the stock market. By hedging options, investors are able to limit their losses while taking advantage of a specific stock and its upside. You can restrict your downside while enjoying the full upside in a very cost effective way.
There is a lot more to learn as it relates to hedging, speculation, and trading stock options. Continue your stock options trading education as well as your investment psychology education in order to ensure success in the markets.
Below is my Video Report on important market correlations
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Stock Tips
Posted by Martin Thomas on March 2, 2010 · Leave a Comment
Stock Tips for Emotional Traders
When most people search for or hear about stock tips, it is typically detailed information regarding which stocks to invest in. You should not rely on people to give you “hot stock tips” for the stocks they are positive will thrive. By the time you hear about this so called “hot stock tip” chances are it is too late. In today’s article we will discuss those stock tips that are helpful to emotional traders trying to make a profit in the stock market.
- Control your emotions. Trading with emotion can negatively affect your trading success, even if you know all there is to know about trading stocks. The best way to avoid emotional trading is to develop a trading plan, define your trading rules (including entry and exit points) and trade with discipline. This is one of the most important stock tips you will receive and it is one that you must take very seriously.
- Learn from your trades. Experiencing losses are a natural occurrence in the market and they cannot be avoided. You must keep a trading journal to document your trades. This will help you to figure out what went wrong so that you don’t make the same mistake twice. Perhaps there was nothing in particular that you did wrong, the trade just didn’t play out how you expected. A trading journal will still help you to recognize what went wrong, in the event it occurs again in the future, as you learn how to trade stocks.
- Take a break. You will miss out on some trades and that is okay. It is very important to take breaks in order to keep a fresh perspective on the markets. Stock trading online can be very time consuming and stressful so be sure that you take breaks periodically so that you are trading with a fresh and sound mind. You will find that you achieve excellent results if you do this.
- Follow your trading plan. This one of the most important stock tips that you should follow. It will help you in so many other important trading areas. Following a trading plan and a set of rules will enable you to cut your losses and ride your winners. It will help you to keep your emotions in check as you are investing money so that you trade successfully. Your trading plan should include everything from how much you are willing to risk per trade to your time frame and when you will exit a trade. The more comprehensive your trading plan is the better you will trade. That is, of course, as long as you are disciplined and stick to your trading plan!
Below is my video
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