Prevent Early Exits

Posted on by The INO.com Team

Shaun Downey is a technical analyst with CQG in London and a contributor for SFO Magazine. Shaun has been in the financial business since 1979 and has held a variety of trading and head of trading positions for firms including Rudolf Wolff, Fulton Prebon and AFP. If you enjoy this post on how to prevent early exits, please click here for a complimentary subscription to SFO Magazine.

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A common practice when using trailing stops, (beyond money management techniques) is to use popular indicators such as the parabolic, ADX, moving averages or volatility stop.
While these methods do have merits, a recurrent flaw is their inability to prevent a premature trade exit when a market's corrective phase begins The same thing can occur when traders rely on calculations of a prior range to achieve a more dynamic type of trailing stop. Continue reading "Prevent Early Exits" →

The Bullish Markets

Posted on by The INO.com Team

Here is your 1p.m. update for Thursday, June 30th. Today Susan reviews the very bullish market that we seem to be trading in this week. Susan also gives you some pointers on how to follow the "52-week new highs on Friday rule." If you have forgotten what those rules are, we have posted them here as a refresher. Watch today's update now!

These are the only three rules you need to trade with “The 52-week new highs on a Friday rule” successfully.

  1. On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
  2. Exit the long position on the opening of the following Tuesday.
  3. If the market opens sharply lower on Monday, exit the position immediately.

“The 52-week new highs on a Friday rule” works extremely well in futures and in the Forex markets. This rule can be reversed for “The 52-week new lows on a Friday rule” if you are so inclined to trade the short side of the market. The same rules apply.

So, there you have it!

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Best,
The MarketClub Team

Use "Trade Triangles" to help you with rocky markets

Posted on by The INO.com Team

Here is today's 1PM update for Tuesday, the 28th of June. Susan makes a confusing market very simple with MarketClub's "Trade Triangle" technology. Let us do the work for you. If you missed the live update, watch it now!

 

Best,
MarketClub

 

Five Ways to Stay Focused In Scary Markets

Posted on by The INO.com Team

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple. If you like this article, Larry's also agreed to give you free access to his favorite technique.
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Five Ways to Stay Focused In Scary Markets

In the fallout from the 2008 global financial crisis, there have been moments that have been driven by pure fear. These are the moments when it can be hard to maintain your composure and trade your plan. Unfortunately, these big days are the times when you need that composure the most. Here is a quick lesson in why it is important to keep focused in a scary market and how to achieve that focus.

Market Basics

First let us understand some market basics. Markets exist to facilitate trade. From moment to moment the market offers traders the opportunity to profit from price movement. It's an environment where every trader has the freedom to create his own results, i.e. all the choices and the power to exercise those choices reside with the trader.

'Scary' implies fear, anxiety, or insecurity. Continue reading "Five Ways to Stay Focused In Scary Markets" →