Economic Data/ Calendar for the week of 21st - 25th July 2008
Personally I don't trade short term over
economic data announcements.
Instead I trade mainly based on price
chart patterns -- over the medium term.
-- But for those who are interested in the
data, enjoy!...
The times given are GMT.
Please add 1 hour to GMT for BST.
Please subtract 5 hours from GMT for EST.
Monday July 21st:
US - 14:00 - Leading Index M/M (Meaning month on month.)
Tuesday July 22nd:
UK - 08:45 - BOE Governor King Speaks.
US - 12:30 - FOMC Member Plosser Speaks
US - 14:00 - House Price Index M/M.
US - 14:00 - Richmond Manufacturing Index.
Wednesday July 23rd:
FR - 06:45 - Consumer Spending M/M.
UK - 08:30 - MPC Meeting Minutes.
UK - 08:30 - BBA Mortgage Approvals.
EU - 09:00 - Industrial New Orders M/M.
UK - 10:00 - CBI Industrial Trends Orders.
US - 14:35 - Crude Oil Inventories.
US - 18:00 - Beige Book.
Thursday July 24th:
GE - 07:30 - Manufacturing PMI.
GE - 07:30 - Services PMI.
GE - 08:00 - IFO Business Climate Index.
GE - 08:00 - IFO Business Expectations Index.
EU - 08:00 - Manufacturing PMI.
EU - 08:00 - Current Account.
EU - 08:00 - Services PMI.
UK - 08:30 - Retail Sales M/M.
US - 12:30 - Unemployment Claims.
US - 14:00 - Existing Home Sales.
US - 14:30 - Natural Gas Storage.
US - 17:00 - MPC Member Bean Speaks.
Friday July 25th:
EU - 08:00 - M3 Money Supply Y/Y.
UK - 08:30 - Prelim GDP Q/Q.
UK - 08:30 - Index of Services Q/Q.
US - 12:30 - Core Durable Goods Orders M/M.
US - 12:30 - Durable Goods Orders M/M.
US - 13:55 - Revised UoM Consumer Sentiment.
US - 14:00 - New Home Sales
Hope this helps...
Monday, 21 July 2008
Monday, 14 July 2008
The Truth About Fear And Greed While Trading That You Need To Know
There are many phrases passed around about trading such as 'buy low, sell high,' but how many traders actually understand how 'fear and greed' drive the markets?
The surprising truth about fear and greed:
The pros and cons of simulated trading and the essentials of money management will both be discussed due to these aspects being related to the emotions of fear and greed in trading.
Basically the aim of this article is to shed some light on emotions in trading and how they can be handled by traders.
Many people know that 'fear and greed' cause movements in market prices but it's wrong to think that these are always negative emotions.
Let's look at greed first. Greed is good! Well a certain amount of greed is good because it's needed to make speculators want to trade in the first place.
A downside to greed is when it causes traders to 'chase the market,' for example by buying after a large sudden move higher when the market is overbought (i.e. overvalued).
You also need to avoid being too greedy when exiting your trades i.e. you should take profits where your proven trading method says you should.
Fear can be a positive and negative emotion too. Fear is a very good thing when it causes you to close out any losers with discipline where your system tells you to. But not too early or too late.
On the other hand, too much fear can stop you from even entering a trade the moment your system tells you to. To overcome this fear it's best to paper trade or make simulated trades for a while before dipping your toes in the water.
Paper trading is something that most traders don't like doing before they first start to trade for real because they want to get out there in the markets pulling in money.
But it's important to test your trading methods first by paper trading as this will help you 'pull the trigger' and commit more easily to trades when the time comes to trade for real.
The main problem with paper trading though is that you don't get as exposed to the emotions of trading as you do when trading for real. Therefore, it can only prepare you to a limited extent.
Using safe money management techniques also helps you to overcome the fear of entering trades. The exact money management rules you use will depend on your trading system.
Generally speaking a good rule is to use no more than 5 to 10% of your initial trading capital per trade. Then only increase the amount you are risking per trade once you've doubled your initial trading capital.
-- But still risking no more than 5 to 10% of your new level of trading funds.
To sum up, yes you can make big money from trading but it's a marathon not a sprint. You'll need to have realistic expectations and not give in to too much greed.
Some greed is good in this walk of life or you would never enter a trade! But not being too greedy means you should take profits where your proven method tells you to and of course, taking the occasional loss really isn't a problem, just don't let them run.
Gradually increasing the size of your trades as described is one of the keys to success. Finally, using a proven trading system will also reduce any fear when entering trades.
Wizard Trader -- Trading Education, Giving You The Edge -- Click Here to get your free trading eBook -- Killer Patterns.pdf
See you there ...
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
The surprising truth about fear and greed:
The pros and cons of simulated trading and the essentials of money management will both be discussed due to these aspects being related to the emotions of fear and greed in trading.
Basically the aim of this article is to shed some light on emotions in trading and how they can be handled by traders.
Many people know that 'fear and greed' cause movements in market prices but it's wrong to think that these are always negative emotions.
Let's look at greed first. Greed is good! Well a certain amount of greed is good because it's needed to make speculators want to trade in the first place.
A downside to greed is when it causes traders to 'chase the market,' for example by buying after a large sudden move higher when the market is overbought (i.e. overvalued).
You also need to avoid being too greedy when exiting your trades i.e. you should take profits where your proven trading method says you should.
Fear can be a positive and negative emotion too. Fear is a very good thing when it causes you to close out any losers with discipline where your system tells you to. But not too early or too late.
On the other hand, too much fear can stop you from even entering a trade the moment your system tells you to. To overcome this fear it's best to paper trade or make simulated trades for a while before dipping your toes in the water.
Paper trading is something that most traders don't like doing before they first start to trade for real because they want to get out there in the markets pulling in money.
But it's important to test your trading methods first by paper trading as this will help you 'pull the trigger' and commit more easily to trades when the time comes to trade for real.
The main problem with paper trading though is that you don't get as exposed to the emotions of trading as you do when trading for real. Therefore, it can only prepare you to a limited extent.
Using safe money management techniques also helps you to overcome the fear of entering trades. The exact money management rules you use will depend on your trading system.
Generally speaking a good rule is to use no more than 5 to 10% of your initial trading capital per trade. Then only increase the amount you are risking per trade once you've doubled your initial trading capital.
-- But still risking no more than 5 to 10% of your new level of trading funds.
To sum up, yes you can make big money from trading but it's a marathon not a sprint. You'll need to have realistic expectations and not give in to too much greed.
Some greed is good in this walk of life or you would never enter a trade! But not being too greedy means you should take profits where your proven method tells you to and of course, taking the occasional loss really isn't a problem, just don't let them run.
Gradually increasing the size of your trades as described is one of the keys to success. Finally, using a proven trading system will also reduce any fear when entering trades.
Wizard Trader -- Trading Education, Giving You The Edge -- Click Here to get your free trading eBook -- Killer Patterns.pdf
See you there ...
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
Heads up on a new article post coming soon ...
Article coming soon -- *Fear and Greed*
Is greed good? Are you chasing the market? Can you pull the trigger?
The truth about 'Fear and Greed' must be understood to trade well.
Inside: The methods that will help you to control your emotions whilst trading are discussed.
The more you control your emotions the more money you're likely to make from your proven trading system.
Is greed good? Are you chasing the market? Can you pull the trigger?
The truth about 'Fear and Greed' must be understood to trade well.
Inside: The methods that will help you to control your emotions whilst trading are discussed.
The more you control your emotions the more money you're likely to make from your proven trading system.
Finally: Trading Veteran Reveals Hints and Tips on Trading that Every Trader Should Know
Your trading system is a set of rules that you have built up that should be met before you enter a trade. The more ways that a trade is confirmed -- the better and the more money you're likely to make.
You might wait for a certain pattern to emerge on the charts that indicates that you should trade, so you might find a buy signal for example. One of your rules should be to make sure that there is not a conflicting signal (i.e. a sell signal in this case) on the longer term charts.
Your trading system should also include what to do in different circumstances after you have placed your trade. So this should include where you will place your stops (stops allow profits to run and give the ability to lock in some profits or to break even on a trade or worst ways, to reduce any losses.)
Know yourself. You need to be able to change your mind about a trade you are considering. You shouldn't always have a bearish (down) or bullish (up) slant or bias towards a market before analysing it.
Most traders will remember market crashes and so will trade on the 'short' side of a market most of the time -- meaning they will sell initially (without having bought anything first.)
But in the long run stock markets and indexes, including the DOW Jones 30, S and P 500 and FTSE 100 rise due to increasing growth and company profits.
After all -- it's only the leading public companies that get listed in these indexes and if the market capitalisation of a stock that's in the FTSE 100 for example, falls, it gets rejected from the index and replaced by a potentially stronger stock.
Markets often behave like an elastic band. They can become over stretched beyond a so called 'equilibrium' point as traders panic, with prices becoming overbought (overvalued) or oversold (undervalued.) And then prices snap back.
So it can pay to wait until prices are over stretched before placing a trade. This fits in well with the fact that prices will often move back to key moving averages of prices.
The only sort of fundamental analysis worth using in my opinion for short term trading decisions is seeing how a market reacts (i.e. seeing how the price reacts) to bad news.
If the price of a security goes up or is pretty much unchanged after bad news relating to the security, it shows strength and you should consider buying. Especially if this potential buy signal is confirmed by other buy signals for the same security.
It follows that if there is good news but the price of the security falls or is basically unchanged, this is a sign of weakness and you can expect prices to fall, so you should consider selling.
Following the advice given on financial programs is something I definitely don't recommend. You can really suffer from information overload.
Very often you'll hear analysts from different financial institutions having totally different points of view on a market. But of course that's what makes a market, buyers and sellers. The thing is, one side is wrong (generally anyway, they could both exit at different times for a profit!)
A little tip for trading the DOW: The first two hours and the last hour of the trading day give good opportunities for momentum trading- meaning trading in the same direction as the market.
To sum up, use a proven system that suits you and do your own chart analysis before entering a trade.
Wizard Trader -- Trading Education, Giving You The Edge -- Get Your Free Trading eBook Killer Patterns.pdf Here ...
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
You might wait for a certain pattern to emerge on the charts that indicates that you should trade, so you might find a buy signal for example. One of your rules should be to make sure that there is not a conflicting signal (i.e. a sell signal in this case) on the longer term charts.
Your trading system should also include what to do in different circumstances after you have placed your trade. So this should include where you will place your stops (stops allow profits to run and give the ability to lock in some profits or to break even on a trade or worst ways, to reduce any losses.)
Know yourself. You need to be able to change your mind about a trade you are considering. You shouldn't always have a bearish (down) or bullish (up) slant or bias towards a market before analysing it.
Most traders will remember market crashes and so will trade on the 'short' side of a market most of the time -- meaning they will sell initially (without having bought anything first.)
But in the long run stock markets and indexes, including the DOW Jones 30, S and P 500 and FTSE 100 rise due to increasing growth and company profits.
After all -- it's only the leading public companies that get listed in these indexes and if the market capitalisation of a stock that's in the FTSE 100 for example, falls, it gets rejected from the index and replaced by a potentially stronger stock.
Markets often behave like an elastic band. They can become over stretched beyond a so called 'equilibrium' point as traders panic, with prices becoming overbought (overvalued) or oversold (undervalued.) And then prices snap back.
So it can pay to wait until prices are over stretched before placing a trade. This fits in well with the fact that prices will often move back to key moving averages of prices.
The only sort of fundamental analysis worth using in my opinion for short term trading decisions is seeing how a market reacts (i.e. seeing how the price reacts) to bad news.
If the price of a security goes up or is pretty much unchanged after bad news relating to the security, it shows strength and you should consider buying. Especially if this potential buy signal is confirmed by other buy signals for the same security.
It follows that if there is good news but the price of the security falls or is basically unchanged, this is a sign of weakness and you can expect prices to fall, so you should consider selling.
Following the advice given on financial programs is something I definitely don't recommend. You can really suffer from information overload.
Very often you'll hear analysts from different financial institutions having totally different points of view on a market. But of course that's what makes a market, buyers and sellers. The thing is, one side is wrong (generally anyway, they could both exit at different times for a profit!)
A little tip for trading the DOW: The first two hours and the last hour of the trading day give good opportunities for momentum trading- meaning trading in the same direction as the market.
To sum up, use a proven system that suits you and do your own chart analysis before entering a trade.
Wizard Trader -- Trading Education, Giving You The Edge -- Get Your Free Trading eBook Killer Patterns.pdf Here ...
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
Tuesday, 20 March 2007
**Profiting from Bar Charts**
**Profiting from Bar Charts**
The opening price of a daily or a weekly bar usually illustrates theamateurs' view of value.
Research has shown that opening prices very often occur near the highs or lows of daily bars.
Prices tend to recoil later in the day from the extremes set early on by the buying or selling of amateurs.
The actions of professional traders are often reflected in the closing price of daily and weekly bars.
They become especially active near the close, taking profits to avoid holding positions overnight.
In bull markets prices often hit lows on Monday and Tuesday due to profittaking by amateurs and then rally to new highs on Thursday and Friday.
In bear markets prices often make new highs for the week on Monday and Tuesday and new lows then occur on Thursday or Friday.
Expecting your success,
Phil Birchley
PS: Get your free trading eBook Killer Patterns.pdf and free mini course over at...
Wizard Trader -- Trading Education, Giving You The Edge
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
The opening price of a daily or a weekly bar usually illustrates theamateurs' view of value.
Research has shown that opening prices very often occur near the highs or lows of daily bars.
Prices tend to recoil later in the day from the extremes set early on by the buying or selling of amateurs.
The actions of professional traders are often reflected in the closing price of daily and weekly bars.
They become especially active near the close, taking profits to avoid holding positions overnight.
In bull markets prices often hit lows on Monday and Tuesday due to profittaking by amateurs and then rally to new highs on Thursday and Friday.
In bear markets prices often make new highs for the week on Monday and Tuesday and new lows then occur on Thursday or Friday.
Expecting your success,
Phil Birchley
PS: Get your free trading eBook Killer Patterns.pdf and free mini course over at...
Wizard Trader -- Trading Education, Giving You The Edge
BTW I'd love it if you use this article on your site/ blog/ ezine/ newsletter -- but please include the link above and keep it active. Thanks!
Thursday, 22 February 2007
Hi world!
I'm interested to hear about you and your trading and web publishing experiences.
If you want to swap links, give me a blast.
I'm a trader and publisher based in Suffolk, England.
At my site is a free trading ebook and mini course that I wrote which will help you make money.
I know your curious so here's the link! http://www.wizardtrader.com/
Cheers
Phil.
I'm interested to hear about you and your trading and web publishing experiences.
If you want to swap links, give me a blast.
I'm a trader and publisher based in Suffolk, England.
At my site is a free trading ebook and mini course that I wrote which will help you make money.
I know your curious so here's the link! http://www.wizardtrader.com/
Cheers
Phil.
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