Category: General

Cash is King

Posted on by The INO.com Team

Please welcome Paul Judd to the Trader's Blog stage where he will present to you a very interesting trick...BONDS ARE GOOD! Paul should know as he's dedicated the last 14 years to treasury bonds where he's learned the in's and out's that we should all take a look at! So please read the article below, visit Paul's Blog here, and let the comments fly!

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I can take a position in the bond market prior to the release of an economic report. Once the report is released, I can close out my position and take profits. Cash is King!

Not so if you are a long-term investor in stocks.

A popular slogan used by many “salespeople” on Wall Street is to buy and hold for the long term. However, not only is your money tied up for years but also holding for the long term doesn’t necessarily mean you will make a profit.

For instance, if you had invested in the stock market in 1962 and held until 1982, you would have lost money.

The following are comparisons as to why trading bonds can be better than buying stocks:

Continue reading "Cash is King" →

The Giant Flaw In Correlation Trading (UPDATE)

Posted on by The INO.com Team

Last week Jason Fielder gave us some general insight on correlation trading, but today he pulls out ALL the stops and dives deep into a proven method for successful correlation trading! Jason said the only way he would teach this much is if I mentioned his free webinar that focuses on correlation trading! (Please see Ed note below)

Ed Note: The webinar has passed and Jason is now making live his Correlation Code, please check it out.

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I have some unfortunate news for you Trader's Blog readers, correlation trading does have one GIANT FLAW.

While correlations will tell you that a move is about to occur, correlation alone doesn’t tell you which pair is moving or the direction it will be moving in.

In other words, you know you need to put on a trade, but you don’t know which pair to trade or whether you need to buy or sell short. This massive limitation in correlation trading has stifled traders for years, which is why so few traders use correlations despite its obvious benefits.

Of the handful of traders who did trade with correlations, most just used it as a filter to increase the accuracy of an already-profitable system.

Well I for one wasn’t willing to stop there...

Continue reading "The Giant Flaw In Correlation Trading (UPDATE)" →

What Is Correlation Trading And Why Is It So Powerful?

Posted on by The INO.com Team

We've spoke and taught about correlation trading before here on the Trader's Blog, but today I've asked Jason Fielder (a multi-time guest blogger) to give us his insight on correlation trading. The below article is an excellent read and I HIGHLY recommend taking a few notes so you don't miss anything. Jason has told me that he will be responding to all comments and questions you post below. Also, he wanted me to give you a heads up about his new Correlation Cheat Sheets...so check that out if you have some time...but read the article first!

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Correlation Trading is a style of trading that is gaining momentum between traders “In the know”. In fact, the momentum is so strong, Correlation Trading is the cover of this month's Futures Magazine!

As soon as you understand this methodology, not only you will understand WHY it's so powerful, you'll immediately want to get your hands on a few correlation strategies. Correlation trading is all about discovering a way to see what I call “cracks” in the market.

Now for the really interesting part...

Continue reading "What Is Correlation Trading And Why Is It So Powerful?" →

From Gambling to Trading: Mindset Shifts That Help You Win

Posted on by lindsay

Today we welcome Les Schwartz of DecisionBar Trading Software to the Trader's Blog. Les shares his thoughts on why many gamblers become traders and how those types of traders can shift their trading psychology to make more profitable moves in the market place.

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Having been an active trader for 20-plus years, I’ve had the opportunity to observe much more than your average investor.

For instance, one of the unusual things I’ve observed is that many traders come from a gambling background, and horse betting in particular. In fact, many years ago I worked at a race track and placed a few bets myself.

Why do horse betters frequently gravitate toward trading?

I think it’s because there are certain aspects of trading that are more predictable than horse betting. A stock or an option or a currency pair can’t break a leg or unexpectedly fall ill.

Plus, very few guys who play the horses make a full-time living at it. But there are many, many traders who enjoy a healthy part-time income – or even make a full-time living – from trading.

Continue reading "From Gambling to Trading: Mindset Shifts That Help You Win" →

An Old Fashioned View...

Posted on by The INO.com Team

With the Dow back over 10,000, I like a few other people have been considering a taking a few more positions, sticking my neck back out if you will. This got me thinking about the very basic principles of the market. I wanted to share with you a brief list put together by my friend Hale of Bonddad Blog. These are a few basic points that still resonate with him while trading. What do you think, what are some of the basics that you'll never loose? Leave us a comment and be sure to visit Hale at Bonddad blog.

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For a guy who lives in the 21st century I have a remarkably old fashioned view of the market.  My favorite technical analysts -- Gartley, Murphy, Gann and Schabacker -- are some of the earliest practitioners of the art.  There are a few basic points from these people that still stand out for me.

First, you can make money on both sides of the markets – going long and going short.  This means we can always be invested so long as we know the market’s direction.  To know the market’s direction we need to know how the fundamentals of the US economy are doing – is the economy expanding or contracting?  This requires basic knowledge about the economy.  If you don’t know it, learn it. Continue reading "An Old Fashioned View..." →