The Trend is Your Friend

Posted on by The INO.com Team

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Thursday, the 18th of August.

The Trend is Your Friend - How true those word are today!

We have been on the right side of the markets for quite some time now.  It is in times like these when technical analysis really shines.  It doesn't matter if you have a strong upward trend in gold or a downward spiraling trend in stocks, technical analysis works.

In case you missed last night's MarketClubTV show, please check it out HERE and see what we were saying about bank stocks and the market as a whole.

We feel we have a target rich area for trading opportunities right now.  Some of the best money can be made during periods just like this.  A key to being successful in markets that are having large moves is to be disciplined and follow MarketClub's Trade Triangles.

So let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "The Trend is Your Friend" →

Now This May Make You Mad

Posted on by The INO.com Team

It Doesn’t Matter What You Think!

Let me say that again: It Doesn’t Matter What You Think!. Why would I say something like that? Why doesn’t it matter what you think?

Well here’s the cruel reality of the marketplace…

It doesn’t matter where these markets are headed, what matters most is that you get the direction right.

MARKET DIRECTION … is what’s important. It’s one of the keys to trading success.  The reality is that these are trading markets and are all driven by market sentiment.

 

These are the kind of markets we are in right now and we are likely to stay in this mode for quite some time.

As I said, what matters most is that you get the direction of the market right. You can only determine the trend by using pure market action and the easiest way to do this is by using a program that can tell you in plain English what the market is doing.

Don’t let the hype, hoopla, news, and the chat rooms fool you. A market can only do three things: it can go UP, DOWN, or SIDEWAYS – that’s it!

When you hear about the next hot or cold market that is headed for the stars or the basement, just say to yourself “it doesn’t matter.” That way, you will know when to get in and more importantly, when to get out.

Then, take a couple of minutes and watch this educational video. This video is all about common sense trading and removing the number one account killer – emotion.

Here’s to thinking “it doesn’t matter what you think,” it’s the direction of the market that is important.

Let the markets have their say … all you have to do is listen.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

So Here We Are....In The Middle

Posted on by The INO.com Team

Hello traders everywhere!  Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Wednesday, the 17th of August.

So here we are... We're in the middle of the month, it's the middle of the week, and the markets are stuck in the middle.  Stocks rallied early today, but they look like they are failing now.

Gold rallied again to test the $1,800 an ounce level.  It has now fallen back and looks to be on the defensive.  Crude oil has also rallied and is now faltering from a key resistance area.  Once again bank stocks look to be on the defensive.  I'll also share a chart pattern in the bank stocks with you that does not look good.

So let's go to the 6 major markets we track every day and see how we can create and maintain your wealth in 2011. Continue reading "So Here We Are....In The Middle" →

How to Position Size and Allocate Capital

Posted on by lindsay

Today the Trader’s Blog welcomes back Marc Nicolas of TradingEmini.com. In previous posts Marc has shared invaluable trading concepts on risk management and using runners to increase profits. Today will be no different as he discusses the often overlooked method for calculating proper position sizing to stay in the game by taking into account your total risk capital and stoploss level.

Visit TradingEmini.com to learn more about trading psychology, money management and Marc’s trading strategies.
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In my 17 years of trading and having traded for a hedge fund, it is Proper Position Sizing and Capital Allocation which has kept me consistently in the game as a professional trader. Even if you have a great trading strategy, if you do not understand how to properly size your positions, you are unlikely to achieve a comfortable level of consistency and you risk blowing account after account. Proper Position Sizing and Capital allocation protects your risk capital by determining how big a position you should take on any one trade. This will mean fighting the urge to buy an arbitrary number of shares because you “feel” a trade is a sure winner. It is the bridge between your chart analysis and risk management plan. Unfortunately position size is the most overlooked aspect of trading and yet is the most important aspect, especially with the volatility we have seen in the markets lately. I hope the 4 steps below will help you.

• Step 1: Capital Allocation

This calculation will split your capital according to the number of different positions or instruments, like futures, stocks, forex, commodities or options you want to trade, or hold in your portfolio. For instance, assume that you have $100,000 Total Risk Capital and you want to include 5 different positions in your portfolio to diversify your risk. Your Instrument Capital Split should be Total Risk Capital/Number of Positions, in this example, $100,000/5 = $20,000 is the capital allocated to each position. Continue reading "How to Position Size and Allocate Capital" →