In my new, short five minute video, I analyze the major trends in what I call the big five. We'll be looking at the DOW (INDEX_DJI), the Dollar index (NYBOT_DX), crude oil (NYMEX_CL.J09.E), gold (FOREX_XAUUSDO), and the CRB index (NYBOT_CR).
I will show you step-by-step how to analyze each of these markets quickly to get the trend.
Once you discover this simple approach, you'll be amazed at just how accurate it is over time.
This is one of my most important videos and I want you to be able to see it without having to register or pay a fee to watch it. I honestly believe that my new video can make a world of difference to how you approach the markets in the future.
Every success and enjoy the video.
Adam Hewison
President, INO.com
Co-creator, MarketClub
The Commodity Channel Index (CCI) is included in most technical analysis charting programs, but it has yet to enjoy the popularity of an RSI or an MACD. Some traders may be misled by the name into thinking the CCI applies only to commodities, but the larger problem with its acceptance as an analytic technical tool rests with the confusion about how to use and interpret the CCI.
In this session, Barbara shows you how to clear away this confusion and tap into the potential of this powerful momentum indicator. The CCI is as effective with stocks, indices, and mutual funds as it is with commodities. Barbara has had the benefit of interviewing the creator of the CCI, Donald Lambert, and will share some of the insights he provided about the purpose and application of the indicator. Although it was originally developed as a programming experiment linked to cycles, users found the CCI to be much more versatile. Barbara tells you how to unleash the power of the CCI by providing examples of several different trading techniques including how to use the CCI as a leading indicator.
Barbara Star, Ph.D., part-time trader, author, and university professor, provides one-on-one technical analysis training for both beginning and experienced traders. She also helps traders find the indicators best suited to their trading style, and will develop custom indicators when necessary. Barbara became interested in the financial markets about fifteen years ago. Tired of hand charting, she bought her first charting software soon after the 1987 crash, and has been fascinated by technical analysis and technical indicators ever since. Barbara’s articles and software reviews have appeared in Technical Analysis of Stocks and Commodities magazine since 1991. She wrote the three-volume EZ Indicator Series for Metastock users, and co-authored the trading manual Oscillator/Cycle Combinations Metastock Supplement with Walter Bressert in 1992. She is active in the Market Analysts of Southern California, a group formed by John Bollinger and his colleagues and open to anyone interested in technical analysis. She has served as both a board member and vice-president of the organization. She also leads a technical analysis user group.
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Saturday Seminars are just a taste of the power of INO TV. The web’s only online video and audio library for trading education. So watch four videos in our free version of INO TV click here.
This little trading tip can and will make a difference in your trading results in 2009.
Stops are enormously important part of a traders arsenal of trading tools. Some traders confirm that stops are the most important part of their trading armour.
So here are three ways to use stops to protect your capital and lock in profits from a trade. These three money management techniques can be used in stock, futures and forex trading.
The important rule is that you do use a real stop in the marketplace. A friend of mine joked with me that that he had never seen a "mental stop" filled electronically or in the pits.
If the market is good your stop will not be hit. If the market is bad or changing direction then you'll want to be out of it anyway. That is why stops are so crucial to trading success.
Here are the three most commonly used types of stops. Which one do you use?
(1) Dollar stop.
(2) Percentage stop.
(3) Chart stop.
If you chose (1) you'd be correct, but, you would also be correct if you had chosen 2 or 3. All three are money management stops and are used to either lock in profits or protect capital.
1) A dollar stop, is when you set a predetermined dollar amount to a trade. Let's say you want to risk $500 on a grain trade or $750 on a stock trade. Once you get your fill back from your broker or electronically online you simply figure from your fill price where to put your stop.
Pros: Easy to implement and use.
Cons: Can place stops too close in a volatile market
2) Percentage stop, is a very simple way for you to place a stop on a position. Here's how it works. Let's say your trading account is 100,000 dollars and let's say you only want to risk 1% of your total portfolio on any one trade. You simply take a $1,000 risk which represents 1% of your over all portfolio. This can help enormously in avoiding taking BIG LOSSES. A 1% loss is easy to absorb. A 30% or 40% loss in a trade is an account killer, and should be avoided at all costs.
Pros: Easy to implement and use.
Cons: Can place stops too close.
3) Chart stop, a chart stop is where you place a stop that is either above or below a crucial chart level. The good thing about a chart stop is that this level is often used by other traders. That can both be a good thing and a bad thing, here's why. Using either one of our first two examples only you know where the stop is. With a chart stop, a great many traders/brokers know that is where the stops are. In an illiquid market this type of stop should not be used, as many times brokers gun for the stops. In a highly liquid and active market this is a good stop to use.
Pros: Very easy to implement and use.
Cons: Can't be used in thinly traded markets.
So there you have it. Now you have all three ways to manage your money and protect your profits in 2009.
Use stops…let them work for you.
Adam Hewison
President, INO.com
Co-creator, MarketClub
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Today we looking at trends and how important they are in trading.
In particular, we're going to be looking at the DOW (DJI) and how it has continued to trend since June of '08.
I have watched with amusement, as several "GURUs" have been trying to pick a bottom in this index. As I have stated many time before, it's not over till it's over and trying to pick bottoms is not a smart thing to do.
The negative trend for the DOW is intact and remains in place. In this new video, I will share with you a simple trick that will help you to avoid the temptation of trying to pick a bottom. In fact, I will show you step-by-step why the DOW is still in a negative trend.
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