Don't ever do this ...

Posted on by The INO.com Team

Bad Trades

A bad trade is like a dead fish: The longer you keep it, the worse it stinks.

Good Trades

When a trade is making money, the market is telling them they are right and to let the position ride.

Don't ever do this ...

Winners don't add to, or "average", losing positions. They dump the trade and go looking for a new opportunity. Successful investors may add to the winning trades. When ahead, they press their advantage while remembering that at any time the market can turn on them and prove them wrong.

In trading keep your mind clear and do not get emotional about a trade. Remember you are not married to a stock rather you are in the dating game.

Learn more about common sense trading.

Adam Hewison

Co-founder of MarketClub

Twin Disasters

Posted on by The INO.com Team

TWIN DISASTERS

Freddie Mac and Fannie Mae

No love for these two stocks.

Even after Treasury Secretary Henry Paulson made a statement ensuring that Fannie Mae and Freddie Mac would remain as presently constituted to carry out their mission it was not enough to satisfy most investors.

Both Fannie Mae and Freddie Mac hold about $5 trillion worth of mortgage guarantees in this country, roughly about half of the 9.5 trillion mortgage debt. Their survival is paramount.

The trouble with these two companies is the latest depressing factor in the current credit and confidence crisis that the United States is going through at the present time. This type of negative information is depressing for stocks and weighs on the minds of investors. This type of mindset is similar to the early seventies when we witnessed the last prolonged bear market.

There are no quick fixes to our current set of problems, only trading opportunities.

We live in a capitalist society and these are the cycles that we go through every 30 to 40 years. This is the price we pay for living in a free society.

My new eight minute video shows in detail how easy it is to avoid disaster stocks like Freddie and Fannie. I also show you in very clear terms how to fortress your portfolio to withstand any type of financial tornado that blows through the world economy.

Enjoy the video,

Adam Hewison
President, INO.com

Traders Toolbox: This often overlooked technical indicator is a winner

Posted on by The INO.com Team

Parallel trendlines

I am constantly amazed that some of the simplest tools available to technical analysts are often the most effective. One of these simple tools is parallel trendlines. I have used them to identify planes of support and resistance on the charts.

At times, these parallel trendlines will form channels. Commonly, a market will stay within a bounded channel for a sub- stantial period of time. However, these trendlines are not limited to channels of equal width. The weekly corn chart reveals a market which has followed the same angle, or plane, of movement for much of the past three years, but within channels of various widths.

There are three primary applications of this tool which are very useful. The first is to expect a market to respect existing parallel boundaries of support and resistance. Second is to expect a significant change in market action when a boundary is significantly violated. And third is to expect the market to eventually resume trading on a parallel plane at a new level. The weekly corn chart is a good example of all three applications.

How to remove your obstacles to being consistently profitable

Posted on by The INO.com Team

Today we have a chance to hear from Mo Christiensen of Trading Advice Blog. I asked Mo to teach us how we can do something that aludes even the greatest traders...stay CONSISTENTLY PROFITABLE!!

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We're receiving a lot of emails these days from people asking for guidance and help unraveling their trading. With all the variables involved, people want advice figuring out where they're going wrong, or where they can improve.

So here are some suggestions:

Start by taking this free self assessment. It will help you to evaluate your trading around some of the primary success factors for consistent trading.

Second, go through the list of success factors below step by step. Evaluate each one. You'll be able to either tick it off as 'satisfactory' or you'll want to dig deeper and find a solution.

Find a trading method you can be confident in

This is THE basic requirement for every trader. With everything else you need to focus on as a trader, you want to know that your trading method has positive expectancy. That doesn't mean each trade is going to be profitable- but it does mean that you can rely on a regular flow of signals that if you execute correctly will lead to overall profitability.

For new or struggling traders we always advise finding a system with simple entry and exit signals that don't rely on a lot of interpretation in the heat of things. Plain, no nonsense signals that say 'get in' or 'get out' are best. That’s the beauty of MarketClub's Trade Triangles - there's no guesswork involved.

Are you executing correctly?

Many new and struggling traders face the challenge of managing their emotions, which get in the way of precise and focused action when it comes to placing an order in the market. This is almost entirely fear based and is usually caused by a lack of confidence in the system they are trading. Second guessing is the mortal enemy of consistent profitability!

Again, this is where Trade Triangles excel - the signals are so clear that you can see with absolute clarity what you are meant to be doing. So if you don't take the signals, you know immediately that what you need to work on is your execution. Both MarketClub and Ino TV have a rich selection of videos with more on this subject.

Money management

Are your profit targets appropriately balanced with your risk? In other words when you analyze your trades, and compare the profitable ones to the losing ones, does the amount of each profitable trade exceed the amount of each losing trade - preferably by 2 or 3 times?

This is important. Many new traders make the mistake of thinking that their consistent profitability will come about by having more winning trades than losing trades. They get despondent when they have a string of losing trades and begin to doubt their system. Yes ideally your system will have more profitable trades than losing ones. However even if you have 10 winning trades and 10 losing trades, or even 5 winning trades and 15 losing trades, if each of your winning trades is significantly more profitable than your losing trades, then you will be consistently profitable over time. The reverse is equally true, so make sure your winners are bigger than your losers.

Manage those emotions

What's your favorite? Fear, greed, jealousy, guilt? They're all bubbling away in there somewhere and affecting the way we think and act. Here are two pieces of counsel for traders:

The first is clear, clear, clear and clear. Find a method that you can use to clear your emotions! This may sound a bit touchy 'feely' to you, but believe me it will translate into such significant improvements in your trading, and in your life in general, that you'll forever consider it to be one of the most practical things you ever did for yourself. We recommend two methods that are particularly effective.

Second and in closing this post, I want to come back to MarketClub. Adam recently recorded a video on the number one account killer: emotion in trading, and what he says is spot on. Trading Triangles will help you take the emotion out of your trading. Even if you have challenges managing your emotions, if you can just marshall your focus and use the simplicity of the Trade Triangles, over time you'll build the confidence that will allow you to succeed.

Mo Christiensen is co-editor of the popular tradingadviceblog.com which specializes in trading advice for new and struggling traders.

"Saturday Seminars" - Advanced Fibonacci Applications and the Price Axis...

Posted on by lindsay

Advanced Fibonacci Applications and the Price Axis in the Forex, Stock Index, and Interest Rate Futures.

Joe’s techniques result in significantly higher percentages of winning trades through more accurate stop placement, market entry and profit objective location. Joe’s high-accuracy trading approach depends on the proper mix of both leading (Fibonacci) and lagging indicators.

You will learn where and how to apply Fibonacci analysis. This context determines the real bottom-line difference. Joe devotes a significant part of his lecture to trend analysis and directional techniques using variations of Stochastics, MACD and displaced moving averages. Technical analysis software packages can simulate all of these unique and specific variations through pre-programmed studies or by inserting the formulas Joe provides for you.

Joe will explain the three categories of a winning futures trading plan:

  • Management (Yourself & Your Capital)
  • A Competent Trend & Direction Analysis Tool
  • Proper Applications of Fibonacci Retracement & Objective Analysis

Joe DiNapoli is a veteran trader with over twenty-five years of solid market trading experience. He is also a dogged and thorough researcher, an internationally recognized lecturer, and a widely acclaimed author. Joe’s formal education was in electrical engineering and economics. He received his informal education in “the Bunker,” an aptly named trading room packed full of electronics and communications equipment. This is where most of Joe’s early research began. Joe is one of today’s most sought-after experts for his exhaustive investigations into displaced moving averages, his creation of the proprietary “Oscillator Predictor,” and in particular, his practical and unique method of applying Fibonacci ratios to the price axis. A registered CTA, Joe has taught his techniques in the major financial capitals of Europe and Asia, as well as in the United States. His articles have appeared in a wide variety of technical publications across the nation and worldwide. In 1996 alone, Joe taught capacity audiences in twenty-three financial centers around the globe. Joe was a contributing author to High Performance Futures Trading: Power Lessons From the Masters, selected 1990 book of the year by Super Trader’s Almanac. He also wrote the Fibonacci Money Management and Trend Analysis In-Home Trading Course, which has been lauded by professional and novice traders alike. Joe published his newest and most complete work, DiNapoli Levels, in 1997. The book has been hailed by Futures Truth as “one of the best new technical books to come along in a long time.” When Chuck LeBeau (Technical Traders Bulletin) asked his readers for names of successful traders they wanted to see interviewed, Joe DiNapoli’s name came up more often than any other. The Atlanta Constitution cited Joe’s work by referring to the “magical power” of Fibonacci ratios in the marketplace. Joe has often made use of this magic to make both startling and uncannily accurate market predictions, particularly in stock market indexes and interest rate futures. As the president of Coast Investment Software, Inc., located on Siesta Key in Sarasota, Florida, Joe continues to develop and deploy “high accuracy” trading methods, using a combination of leading and lagging indicators in unique and innovative ways. He conducts a limited number of private tutorials each year at his trading room and he also makes his trading approach available to others via software and trading course materials.

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For more audio and video seminars visit INO TV