Category: General

Why Fading The Opening Gap Is The Ideal Setup for Me

Posted on by The INO.com Team

I recently had the opportunity to sit down to dinner with Scott Andrews from MastertheGap.com, and at the end of the dinner I honestly said to myself, this guy has got something here. Now there's a lot of "gap" research and insight out there, but Scott takes it to a different level. So if you have some time, please read his article, fire away with the comments, and visit his site MastertheGap.com.

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If you are looking to become a serious trader, there are two critical questions that you must answer; “What is my primary trade setup?” and “What is my edge?”

When I started out, it seemed like every book, every website, and every trader touted a different setup – each with its own merits. But I knew that I needed a trade that fit “me” and my trading personality.  After lots of searching and introspection I settled on fading (i.e. trading the opposite direction of) the opening gap in the indices (e.g. S&P 500, Dow 30, Nasdaq 100, Russell 2000). Not only do opening gaps occur daily and offer significant profit opportunity,but they have an inherent directional bias. In fact, over 70% of gaps will retrace from their opening price back to the prior session closing price that very same day, often in the first hour of trading.
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Is Natural Gas Cheap?

Posted on by The INO.com Team

Today's guest is David Galland, the managing director of Casey Research. David's going to give us a look through the trained eyes of the Casey Researchers at the energy sector, more specifically, natural gas. So take a look and see why David thinks cheap doesn't always mean buy. As always, be sure to leave us a comment on your energy strategies.

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At the height of its late 2005 rally, natural gas in the U.S. was selling for just over $16/MMBtu, 350% higher than today’s price of $3.56. The oil/gas ratio, now over 18, is an all-time high… suggesting that natural gas is dirt cheap. So, it’s a buy, right?

In a phrase, not exactly. Continue reading "Is Natural Gas Cheap?" →

Mental Aspects of Trading

Posted on by The INO.com Team

As an added Guest Blogger bonus, Bill McCready from Futures Trading Secrets, has a very informative article on the mental aspects of trading, that I think we ALL can learn a little something from. Bill's been trading for a long time, and a long time successfully, and his knowledge and wisdom is widely appreciated. Bill also hosts widely attended webinars that I think you'd appreciate, learn about the webinars here.

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I have decided that after ten years of posting the same trading patterns and working with hundreds of students, that the trading signals are not the problem. Most students have trouble trading mentally and emotionally.  Here are the topics that are the most important.

Learning the Trading Game
The basics are the basics.  Here is what you absolutely must know and master.

1.    Goal Setting that is realistic and possible

2.    Finding your trading edge with patience and discipline

3.    Using both Fundamental (News) and Technical Analysis

4.    How to see in Four Dimensions

5.    Money Management and High Probability Trades

6.    Using a Trading Plan and adjusting it in a Game Plan and trading it as a System

7.    Why and how to avoid overtrading

8.    How your past experience affects your trading

9.    Setting new habits into motion for profitable trading

10.    The 10 Essential Elements Necessary to Learn the Trading Game
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6 Investing Rules Revisited

Posted on by The INO.com Team

Today I'd like everyone to welcome Mike from The Financial Blogger. Mike's main focus on his blog is teaching the best way to control yourself and your money at the same time. Frugality isn't a bad word and in this lesson you'll learn some pretty good tips. Please enjoy the article and let your voice be heard in the comments.

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If You Are Young, You Should Invest the Biggest Part of Your Portfolio into Stocks

There is an old rule saying that to determine the portion of stocks to be held in your portfolio, you simply have to take the number “100” and deduct your age. Therefore, being 27, I should hold 73% of my portfolio in stocks and only 27% in bonds and other fixed incomes. This old rule of thumb is based on the fact that the more you age, the less time you have to recuperate from a market drop.

Technically, this rule is not stupid as you should maintain a high percentage of stocks when you are young since it has been proven that stock markets perform over the long term (read more than 15 years). However, there is something stronger than rationality: emotions.

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