Category: General

NASDAQ gains could indicate a recovery of OTCBB liquidity

Posted on by The INO.com Team

Today's guest is Stock_Analyzer from StockHideout.com, a micro cap community. Certain types of stocks have been hit harder than others lately; risky micro cap stocks have definitely taken a beating. Stock_Analyzer is going to explain the link between the NASDAQ and OTCBB and how he potentially sees some light at the end of the tunnel. Be sure to comment and let us know what you think.

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The financial crisis has caused stock markets worldwide to crash, sending them spiraling into a period of high volatility. As a result, a considerable number of banks, mortgage lenders and insurance companies have filed bankruptcy, spurring a loss of investor confidence in the capital markets and decreasing liquidity.

The dollar trading volume of a market is indicative of overall market conditions. It essentially shows how much money is entering or leaving the market.  It is well known that the markets are very cyclical in nature and that during the growth stages investors increase their investments, while recessions leave investors looking for exit strategies. Continue reading "NASDAQ gains could indicate a recovery of OTCBB liquidity" →

Stock Inefficiency is best found During Times of Hardship

Posted on by The INO.com Team

No matter what side of government intervention you're on, it's agreed that it has an affect on the market. Whether that effect is a shorter bear market or simply a prolonged slide is debatable. Today's guest blogger is Tony of KhronoStock.com. Tony is going to share what he thinks the similarities between the great depression and the current state of the economy means for the markets. Be sure to comment and let us know what you think.

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There are four most important factors that caused the Great Depression during the early part of the 20th century.

1.    Stock market crash that went from October of 1929 to summer of 1932. Stocks dropped over 80% during this period.

2.    Massive bank failures – regional and community banks failed by the thousands. The remaining banks were reluctant to write any new loans due to the collapsing financial system. Continue reading "Stock Inefficiency is best found During Times of Hardship" →

Next to go belly up ... Pension Benefit Guaranty Corp

Posted on by The INO.com Team

From our business news partner.

Deficit surges at agency that insures pensions

By DEB RIECHMANN Associated Press Writer

(AP:WASHINGTON) In an ominous setback, the government agency that insures the pensions of 44 million Americans has amassed a record $33.5 billion deficit _ triple what it was just six months ago.

The bleak financial snapshot, in a report obtained by The Associated Press, raises new fears that a federal bailout eventually will be needed for the Pension Benefit Guaranty Corp. The beleaguered agency is being saddled with the underfunded pension plans of companies going bankrupt in the worst economic slump since the Great Depression.

Continue reading "Next to go belly up ... Pension Benefit Guaranty Corp" →

Good Trades, Bad Trades and the Trap of Being "Right"

Posted on by The INO.com Team

I think we've all been there...we've made a trade, we're happy with that trade, and yet our reasoning behind the trade was wrong! Today I'd like everyone to welcome Bob Iaccino from TraderOutlook.com. Some of you might reconognize the name, and that's because Bob is a frequent contributor on CNBC, CNBC Asia, Bloomberg Television, Bloomberg Radio, CNN, CNN International, Fox News, and several other media outlets as a special guest analyst. Yeah he's all over the place and he knows what he's talking about.

Enjoy the special Sunday guest blog, please post comments to Bob or about the article, and spend a few minutes on TraderOutlook.com and watch his forex videos!

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I remember one of the smartest human beings I’ve ever mentored, in my 15 years in the markets, explaining a trade he wanted to place. Let’s call him “Neal.”  Neal told me that the Fed needed to raise rates immediately and he was piling up long USD.  Well, the rate rise never came, but he made $1oK on his position anyway. The market was pricing in a larger rate rise in the future.  He then prances around my trading room like a show horse, talking about how he was right for taking such a large long position. I walked over to him and proceeded to tell him that we were taking the money out of his account. “What?! Why?!” exclaimed Neal. “Because you were wrong. You said the Fed was going to raise rates immediately and they didn’t,” I told him, “so you have to give the money back.”

Continue reading "Good Trades, Bad Trades and the Trap of Being "Right"" →

How to Lock in Profits with Trailing Stops

Posted on by The INO.com Team

Today I'd like everyone to welcome David Waring from InformedTrades.com to come and teach us a bit about the all important trailing stop loss method! It's always a top question among members and David makes it clear the best methods to use. Enjoy and feel free to comment!

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In all my years one of the most frequent topic I discuss is the psychological difficulties people have with letting their profits run, and how the concept of the trailing stop is one way traders can overcome these difficulties that are the downfall of so many traders.

Once a position has begun to move in a traders favor many successful trader’s will manage that position through the use of what is known as a trailing stop. The simplest type of trailing stop is what is known as a fixed trailing stop which simply moves along behind a position as that position begins to move in the traders favor. The beauty of the fixed trailing stop, is that while it will move up behind a long position or down behind a short position as the position moves in the traders favor, if at any time the position begins to move against the trader, the stop does not move, essentially locking in a large portion of the gains the trader has made up to that point.

Continue reading "How to Lock in Profits with Trailing Stops" →