Category: General

Do You Know the Expectancy of Your Trades?

Posted on by The INO.com Team

Since 2007 when Scott Andrews of MasterTheGap.com started calling out daily gap plays in a live trading room, he has been helping traders learn how to use gap trading to their own advantage. He considers gap trading the "bread and butter" of his trading and even earned the nickname, "Gap Guy" due to his successes.

Today Scott is sharing tips on how to get the most out of your trades by showing you how to discern high expectancy trades from low expectancy trades. We hope you enjoy reading his guest blog post and leave a comment for him below.

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This past week I had the great privilege of enjoying lunch with a fellow North Carolinian, Dr. Van Tharp, the world-renown trading coach and author of some of my favorite trading books: Trade Your Way to Financial Freedom and Super Trader. While trying not to ogle over him like a star-struck teenager meeting his favorite musician for the first time, my mind raced with the many pearls of trading wisdom he has espoused over the years.

Continue reading "Do You Know the Expectancy of Your Trades?" →

Using High Frequency Trades to Your Advantage

Posted on by The INO.com Team

Today's guest, Michele (Mish) Schneider has gotten such a phenomenal response from Trader's Blog readers in the past, that we've decided to bring her back and share her take on High Frequency Trading, or HFT, plays. You can leave any questions or comments here on our blog, but be sure to visit Mish on her site, Market Gauge, as well.

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Not too long ago, the buzz around the street was all about High Frequency Trading Models and the possible legislation that would be enforced to try and quell them.  What is High Frequency Trading (HFT)? According to an interview with Sal Arnuk Partner of Themis Trading LLC printed June 14th, 2010 in the High Frequency Trading Review—yes, there is such a publication—“I guess you can call HFT any strategy that involves high speed execution of thousands of orders per second, or in a short time period. I don’t even want to handicap it by calling it thousands as some people can do a million.” Continue reading "Using High Frequency Trades to Your Advantage" →

Why markets reverse... blame it on Fibonacci

Posted on by The INO.com Team

There are times when markets reverse for no apparent reason and seem to defy any news that would support the direction of the trend. We call the this occasional event the "Fibonacci factor." This occurs when markets reach certain retracement levels and often reverse direction from their previous trend.

In this new short video I outline this phenomenon on the S&P500 and will also be covering it when our new educational trading video debuts this Friday, which will be of course, "Fibonacci Friday".

Enjoy today's video and let us know what you think. As always there is no charge and no need to register.

All the best,

Adam Hewison
President INO.com
Co-founder of MarketClub

Fibonacci Range Expansion Trading Zone

Posted on by The INO.com Team

Our guest today is Tom Strignano, a former Chief Bank Dealer with 25 years experience. He has also been featured on The Forex Signals. Follow Tom as he shows you a technique he developed back in the 1990's incorporating Adam's favorite Italian mathematician, Leonardo Fibonacci.

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The Fibonacci Range Expansion Trading technique is one that I developed back in the early 1990s when I was moving away from lagging indicators like RSI, MACD, moving averages etc. I had no success using those indicators and came to the conclusion that either I didn't understand them, or that they simply didn't work. The only thing that I had any success with was trendline breaks, Fibonacci points, and standard pivots with the reading of pure price action. I was taught that in order to be successful in this business of trading, you need a few components.

According to my mentor and senior treasurer, Aldo Pizzoferrato, trading required BMG, or Brains, Money, and Guts. You need the brains to anticipate market momentum and to be a step ahead of the herd. You need capital to advance, and finally, you need the guts to believe in yourself and your systems. Therein lies the problem for most traders. Most traders operate on the simplest level. They have no real trading plan and view charts and price action using gut feel or really just guesswork. Aldo stressed upon me that the most effective approach was acting like a quarterback of a football team. I need to send the signals, by reading the market and finding weakness in the markets’ defenses. He would always say, “Don't just receive the signals, send the market some feedback.” I had learned that trading is not a spectator sport. In other words, the most effective approach is in the development of systems that generate buy and sell signals. I had to move from "chart artist" to a true technician. Continue reading "Fibonacci Range Expansion Trading Zone" →

President Obama's address from the Oval Office last night was a good speech...

Posted on by The INO.com Team

Unfortunately the President seemed to miss the point - capping BP's huge gusher off the Gulf. Coincidentally, I read today that BP now stands for BIG PROBLEM and not British Petroleum.

Surfing around the web today I read comments like, "if we could put a man on the moon 40 years ago and 238,857 miles away, how is it that we can't cap a well that's 40 miles off the US coastline in deep water?" I, myself, am asking the same question.

I believe that the President missed the boat on this one. He has not focused the entire might of the United States on getting this problem fixed. As they say, he was a day late, and in this case, billions of dollars short.

How do you rate the President's management of the Gulf oil spill?

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It seemed outrageous to me that we had local governments wanting to get to work on clean-up and conservation, but were having to wait for permits from the Army Corps of Engineers and other Federal agencies to start making decisions. The reality is, the Federal government is huge and has no idea what the left hand is doing in regards to the right-hand. Continue reading "President Obama's address from the Oval Office last night was a good speech..." →