One year later, reality sets in

It's been just a little over a year since we had our first major buy signal for the S&P 500 at 888.70 on 5/4/09. Since that time, the S&P 500 has climbed approximately 61.8% from the lows that were seen in early March of '09 and the highs that were seen in October of '07.

We take our "Trade Triangle" technology very seriously and this signal today (5/25) at 1044.50 is our first major sell signal since 7/1/08 at 1,272.00 and should not be ignored.

There are a whole host of problems that are coming due around the world that will have negative consequences for the equity markets. The problems in Greece and Europe are well known and are likely to continue for the balance of the year. This is going to have a negative impact on markets in general. Continue reading "One year later, reality sets in"

4 Steps to Mental Toughness for Short Term Traders

As all MarketClub members know, psychology is a major factor in both investing and short term trading.  Chris Dunn, from the Emini Academy, is a major proponent of developing the proper mental mindset of a professional trader, and this week he’s contributing a helpful post on four steps you can take to have a strong trading mindset.
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In my opinion, day trading is top on the list of mentally stimulating professions.  It requires a mental toughness unparalleled by any other business.  For example, the influx of emotions and sensations felt by someone in a short-term trade can bring on fear stronger than that of certain death, or a euphoric sensation as if you just inherited a windfall of profits.

To become a professional trader with the ability to thrive in all market conditions, one must develop understanding and control over their personal psychological strengths and weaknesses.  In this article, we will talk about 4 steps that can help you develop a strong trading psychology and confidence to become a top-level day trader.

Step 1 – Build a Strong Foundation Continue reading "4 Steps to Mental Toughness for Short Term Traders"

The 6 Advantages of ETFs

ETFs, or Exchange Traded Funds, have increased in popularity over the last few years, and for a number of reasons. Today, Price Headley of BigTrends.com, is going to give us the low-down on everything we need to know about this increasingly utilized financial product.

We hope you'll enjoy today's guest blog post and perhaps consider adding ETFs or ETF options to your portfolio in the near future. As always, we're interested in hearing what you have to say about this post or your experiences trading ETFS in our comments section.

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In recent years the popularity of ETF Options has exploded.  At BigTrends.com we have focused on ETFs for quite some time now.

The issue with ETFs and ETF Options has always been liquidity, but things have changed in that regard.  Due to the advantageous architecture of ETFs, more investors are hedging their portfolios with ETF options.  To understand the reason these vehicles are changing the options environment, let's take a look at the underlying securities and their benefits.

1. ETFs Trade Like a Stock - Unlike mutual funds or hedge funds which can only be entered or exited at the market close each trading day, ETFs can be bought and sold intraday.  They can even be day-traded just like stocks.  This advantage allows investors to make speculative bets on the direction of an index while still having the ability to exit the trade at any time of the day.  ETFs also allow short selling, as well as often being optionable. Continue reading "The 6 Advantages of ETFs"