Category: General

Derivatives Are Evil And Must Be Destroyed

Posted on by The INO.com Team

Recently I had the opportunity to meet with one of the most excitable options traders and educators in Las Vegas...his name is Mark Longo and he's the founder and main options guy at TheOptionsInsider.com. I was able to spend about 45 minutes just chatting with him about what's going on in the options world, what's new with his site, and everything he said about options made perfect sense. Almost as if he actually knew what he was talking about! Come to find out later in the conversation he knew what he was talking about, and he's an authority on options...egg on my face! TheOptionsInsider.com is a great FREE resource for all things options and with Mark at the helm you won't be led astray. Please enjoy the article (as I read it twice), comment below, and visit TheOptionsInsider.com today!

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We are seeing a familiar refrain in the financial world these days. Regulators, politicians and even the financial media are jumping back aboard the "derivatives are evil" bandwagon.

Derivatives are a popular scapegoat for the ills of modern society. When commodity prices surged last year, the finger of blame immediately pointed at rampant speculation in the derivatives markets (see It's Time To Ban CEOs & Senators From The Derivatives Markets and The Rage Against Derivatives Speculators Is Unfounded for more information).

But the true backlash came later when the financial crisis paralyzed the global economy. Not surprisingly, the outrage once again turned toward derivatives. But this time the response was different. It wasn't isolated to a handful of grandstanding politicians and CEOs arguing about inflated commodity prices. It poured in from all segments of the marketplace as institution after institution collapsed under the weight of their own greed.

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The Perfect Storm the movie...of trading?

Posted on by The INO.com Team

Is there really such a thing as "The Perfect Storm" of trading? At first I wasn't sure. But after talking to Shane Daly, coach at Netpicks and writer for "Evil Genius Cheats" newsletter, my mind was changed. We spoke for a while and that's when I asked him to write a blog post so I could get the pulse and opinions of the Trader's Blog readers! So he got to writing and put together the article below. I'd like to get your thoughts and opinions as Shane will be reading and answering questions and comments. If you also find the article useful then I recommend you check out the newsletter "Evil Genius Cheats" that's put together just for

The Perfect Storm

Trader's Blog readers.

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Back in 1991, several conditions occurred that created an unusual storm that not only took some lives, but also had caused over $200 million in damages.  Most famous, are the 6 lives that were lost and highlighted in the movie “The Perfect Storm”.

The act of trading also adds in some conditions that, if not prepared for, will not only cause you loss of money but also perhaps life as you know it.  Trading is also “A Perfect Storm”...

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Cash For Clunkers ... and now "Cash For Traders"

Posted on by The INO.com Team

Before I get into the "Cash For Traders" topic, I have something to share with you that is very disturbing. I am getting spammed... that's right, spammed by the White House. I have never asked for e-mails from the White House, nor have I signed up for e-mails from the White House. But for some reason David Axelrod, a close adviser to President Obama, feels he can just e-mail me at will trying to sell Obama's universal health package.

Mr. Axelrod please stop this practice now! (see White House Spam here)

I never ever envisioned the White House becoming a spammer, nor did I envision the White House resorting to spam tactics. The White House is using the same spam tactics as every other con artist. You know the ones I am talking about... get-rich-quick schemes and work at home deals you see all over the internet.

David Axelrod come clean with all this spam business, show some respect for the White House and your position.

That's my first issue cause I'm mad as hell and I'm not going to take it anymore.

Here's the next one ...
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Bollinger Bands 101 – How To Measure Volatility

Posted on by The INO.com Team

Amey from The Wild Investor has been a rather frequent guest blogger (see previous posts) and for good reason...he knows what he's talking about! Over the weekend he and I were talking about technical indicators and I broke down and told him I know "less then nothing about Bollinger Bands". He laughed and broke them down for me, and afterwards I told him to write a guest blog so YOU could learn about them as well! Enjoy the article, feel free to comment with your insights, and visit The Wild Investor and SpeakStocks.com.

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One reason I prefer technical over fundamental analysis is that it is more visually appealing. By quickly glancing at a stock’s chart, I can tell whether I want to buy it, sell it, or what the price targets are.

I look at stock trading as an art, and like any craft we must constantly tweak and perfect it to achieve the most optimal outcome. As a die-hard user of technical analysis, I am always trying out different indicators, seeing which ones work for my trading strategy, and dropping the ones that do not. I typically like to keep my charts clean; otherwise, I get lost and lose focus.

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Momentum Trading with Mark McRae

Posted on by The INO.com Team

In my position I'm blessed to have access to dozens of top traders and investors, Adam being the BEST (in my humble opinion) and one guy I can always turn to is Mark McRae. Mark has taught us many times over the past year (see previous Mark McRae posts) and today I asked him back for your benefit! He's recently released a new trading report that's more of a mini-course then a one time report, so it'll be updated with ALL his latest findings. Please enjoy the article, ask Mark questions in the comments, and jump on his new trading report/mini-course!

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One of the most basic and widely used indicators is that of momentum.

Before I go on to tell you how we can use the momentum indicator to trade with, I want to explain the difference between a leading and a lagging indicator.

Nearly all indicators are lagging indicators. That is to say that the price must first move in order for the indicators to react. So you will inevitable get a situation e.g. where the market will rise shortly followed by the indicator. This is where the term lagging comes form in trading.

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