Posts Tagged ‘trading software’

Why The Stock Market Dropped 1000 Points in 10 Minutes Conspiracy Theories

Welcome to May…now sell all your stocks. This week, U.S. stocks plunged 772 points in heavy trading volume the first week of May. This was the worst May ever in this history of the Market. The Euro vs the Dollar dropped to 1.27. Why? Concern over Europe’s debt situation especially in Greece, questioning the pace of any economic recovery. From the April high to the May 6 low, Japanese stocks are down 4.2%, Europe dropped 9.5% and the U.S. plunged 7.6%.

“No one really wants to be long over the weekend with the Greece situation hanging out there,” said Alan Valdes, director of floor operations at the New York Stock Exchange for Kabrik Trading. “Everything is based on that concern right now.”

With last week’s trading, the Futures Market was where all the action was. On Thursday, in just a few quick moments, the Market plummeted almost 1000 points before it rebounded somewhat. At the exact same time, the S&P 500 EMini dove 50 points, with the S&P 500 EMini trading in points not ticks. Day traders were making money faster than they could count. The Chicago Mercantile Exchange traded over 5million contracts, its highest ever volume. Normally, traders are happy to make 2 or 3 ticks, not 2 or 3 points in each trade!

With such sell off, the economic news was entirely downplayed. Unemployment news release on Friday said that the US added 290,000 jobs, and even excluding temporary census jobs, the US added 224,000 nonfarm jobs. What is most important is that nearly all of the jobs happened in the private sector, showing the first real sign of economic recovery. Even the previous two month payroll data increased by 121,000 jobs. At last we started seeing some relief in the job market after waiting for 2 years.

But with Portugal downgraded by Standard and Poor’s and Greece rioting, and given the looming possibility of further downgrades by Spain and Ireland, the Market simply gave up its gains for the last 2 months. The CBOE’s Volatility Index, the VIX measured the US Stock Market’s fear by rising over 40. The VIX works in reverse, the higher the number, the more fear in the Market. For the week, the VIX went up 88%.

For EMini Futures traders, all this volatility provided excellent trading opportunities in the S&P 500 EMini. With the Market dropping without end, it is a perfect trading time to short. Want to see the opportunities? Watch the video that Shadowtraders.com put out on Shadowtraders Youtube, showing trading opportunities. Surf up Shadowtraders on Youtube and you’ll see lots of movies.

Rising fear in the Market had more fuel due to the fact that more banks failed this week, bringing the total number of failed backs in 2010 to 66. San Diego, Calif. 1st Pacific Bank, Mesa, Ariz. Towne Bank of Arizona, and the Bank of Bonifay, Champlin, Minn. Access Bank, were all closed, the Federal Deposit Insurance Corp. (FDIC) said. These failures cost the FDIC fund $213.7 million, said the FDIC.

So what created Thursday’s Market crash of 1000 points? Well for sure there is Greece’s debt problem, bank failures, etc., but Wall Street has not seen a major crash like that since Black Monday when there was the October 1987 crash. For conspiracy theorists, maybe these are the reasons there was a Market crash…

According to CNBC, sources told the network that a trader (possibly at Citigroup) caused the problem. CNBC called it a “fat finger trade”, someone entering a “b” for billion instead of an “m” for million in a trade they put on for Procter & Gamble.

Rich Adamonis, New York Stock Exchange spokesman, said that “there were a number of erroneous trades” on May 6th, These could have been caused by computer error.

Another conspiracy theory was that automated trading programs triggered stop loss orders. That pushed the stock market down even further. When the market plunges to lowest levels, there are automated trading programs that get started, acting almost as a rollercoaster. They trigger more and more stop loss orders. Hedge funds and larger institutional traders watch for Market crashes and start selling, creating their own self-fulfilling prophecy that the Market will deteriorate even further.

Fear that the Greece’s financial crisis will spread like wildfire to other nations. Portugal has already been downgraded. Will Spain be next, or Ireland? If this were true, what Citi analysts projected on Friday would happen…a correction of 20%. Citi analysts said that while even though there were financial crises in the recent past, with Northern Europe in 1992, Southeast Asia and South Korea in 1997, the Greek crisis is “graver than these were.”

Could it actually have been cyber-terrorism? Automated trading programs now account for 60% of all trading in the New York Stock Exchange. Regardless of which conspiracy theory is true, this is a Market that trades in nanoseconds. Certainly by this time we should know what caused the Market’s crash. By not informing investors what happened, the Market may not recover any time soon. Investors remember that there were just recovering from the 2008 crisis where they lost 3 trillion. Now they are facing the Greek crisis. This may permanently keep them out of the Stock Market.

Barbara Cohen has been a professional day trader for over 10 years. She has trained hundreds of day traders to trade the Futures Market with Shadowtraders online day trading strategies. As the CIO, Barbara frequently hosts Shadowtraders daily online trading chatroom. Before you purchase any trading education, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen

 

What Are The Kinds of Automated Forex Systems?

Automated Forex trading systems are software programmes that permit you to keep a watch on the currency market, allowing it to get and sell transactions in your place all while you do something at the same time. Many forex traders, particularly people who consider themselves to be amateurs, find automated Forex trading software to be very helpful, and this kind of trading system lets them gain many opportunities so as to achieve the profits that they would like.

as the foreign exchange market is a high paced platform, using automatic trading systems is extraordinarily efficient. The currency market is open twenty-four / 7, and constant monitoring of the market is crucial. As the forex market is influenced by socioeconomic and political factors which can change at a moment’s notice this means that automated Forex trading is an invaluable asset in your arsenal of currency exchange tools.

There are two different types of automated Forex trading systems desktop and net-based. What are the variances between the two? Here they’re in a nutshell detail :

Desktop-based systems

A desktop system needs you to use your personal computer, and a Net connection is not necessarily required to keep it going. your information in the forex market and charts are stored on the hard drive of your computer. This makes it absolutely necessary that traders who choose this sort of system have some kind of info backup program. This is the least popular type of automated trading technique.

The difficulty with this sort of system is it’s always under threats from pathogen attacks or security breaks. An occurrence of this sort would cause your personal computer to lose info, explaining why having some sort of backup system is an absolute requirement. All of your charts and info could be extinguished from your computer. Not to mention, other strangers may get access to your personal information and trading plan.

If you choose this type system, and you have additional money to spend, it would be wise to have a separate PC to use solely for your Forex trading. If not, there are more things you can do to protect your PC.

You can set your backup file to update more constantly. You ought to have a different password for your personal info in in your Forex trading statistical data. By having your automated Forex trading software guarded by a password, it will help keep others out of your account. You should also have your antivirus and trading software updated more frequently to optimally defend you from pathogen attacks.

net-based systems

With an internet-based system, there is not any need to install any additional programs on your computer so as to make the system work to benefit. Your account is the only responsibility of your internet-based service provider. Your internet server will also handle the storage of your information, and your provider is also accountable for giving you acceptable security. In addition, encryption is used to offer one more shield of protection if anything should happen also, backup is usually automated.

This gives you a lot more adaptability, because a net-based system permits you to initiate trades in the forex market anywhere you need. There are many that say that you will need a high-speed connection in order to get the maximum out of this system.

As it is with anything more, both types of systems have their ups and downs. All you need to do is make sure that whichever one you choose will be the one which is most customizable for your particular wishes in the foreign exchange market. Your capacities in the foreign exchange trade and your speed in learning how to use your foreign exchange software are both factors you should consider when choosing the proper automated Forex trading software platform to use.

Making moneyforex trading is possible if you select the right tools, including for example forex trading software

 

Emini Futures Trading At A Discount Price

People throughout the world want to be day trading for a living. But potential traders tell us that, “I really want to day trade instead of working, but I just can’t afford the funds required by the brokerage to open an account. Since 9/11 in order to day trade stocks, the NYSE and NASDAQ say you must have at least $25,000 to open your brokerage account. With the tight economy everyone is experiencing worldwide, with highest ever unemployment, $25,000 can be an actual barrier.

At last there is a way for you bypass the barrier to daytrading even though you do not have $25,000 in your brokerage account…learn to trade Emini Futures, a whole new form of education. Emini Futures gives you the capacity to open a brokerage account, and yet have only $2,500. That is significantly less than what you need to open an account to day trade stocks. And imagine trading with only $500/ trade. There are many volatile Emini Futures contracts which require just $500 / contract. Can you name shares of stock that you can be traded for $500, a stock with volatility and liquidity?

As an example of a contract you can be daytrading for a mere $500/contract…the Emini S&P 500 Futures Contract. On margin, the S&P 500 Emini only requires $500/contract, and there are several brokerages where you can trade for even less.

The Emini S&P 500 is a Chicago Mercantile Exchange (CME) Futures Contract. The “E” symbolizes that the S&P 500 day trades “electronically” over the internet. The “Mini” symbolizes that the S&P 500 is a smaller version of the S&P 500 contract traded by the larger hedge funds and professional institutions. Just as a note, Futures trade in “Contracts” not shares. The symbol for the Emini S&P 500 contract is “ES”. Remember, trading this Emini compares with trading each of the top 500 stocks that make up the S&P 500 Index, all at the same time. The Emini S&P 500 Futures Contract appreciates and depreciates in step with the S&P 500 Index on the New York Stock Exchange. The CME created this Futures contract because you cannot trade an Index.

Day trading Emini Futures is just the same as day trading stocks. All your technical analysis charts work the same, with moving averages, stochastics, MACD, etc. You can create trading strategies using your trading software, just like you would when you are trading stocks. You can also have alerts, the same alerts that work with stocks. Best of all, you will be day trading the S&P 500 Emini, the contract that represents all the top 500 stocks…so you only need 1 technical analysis chart, not 4 or 5 charts, one for each stock.

To be daytrading 1 Emini S&P 500, you’ll need about $500 / contract. Of course, that depends upon your broker. Emini S&P 500 Futures contracts trade on margin. Your brokerage decides the margin rate he can offer to each customer. Having said that, most Futures brokerages will allow you to trade the S&P 500 Emini with 1 contract for $500. As a note…you really ought to open an account with an actual Futures broker, not a multi task brokerage that primarily trades stocks and by the way also trades Futures. The reason for this is that futures brokerages offer lower margins and discount commissions.

For each “tick” profit, the Emini S&P 500 earns you $12.50. 1 tick is 1 price movement, like 1 penny increase on stocks.

Lets see an example of how E-Mini S&P 500 Futures day trading compares with daytrading 100 shares of stock that will cost you $25/share. Remember, day trading 1 S&P 500 Emini Futures contract will cost you $500/contract. To begin, you generally day trade stocks in 100 share lots, so initially you’ll need $2500 for that stock. With the S&P 500 Emini Futures Contract, you can be day trading with just $500, because you can trade Futures with just 1 contract. In order to profit $12.50, the 100 stock shares would have to appreciate about 13 cents, 13 real price movements. The S&P 500 Emini, conversely, only needs to appreciate 1 tick, just 1 price movement. Comparing each investment, dollar for dollar, you could actually trade five S&P 500 Emini Futures contracts for the same $2500 investment for the 100 shares of stock. In that way, 1 tick gives you a handsome profit of $60 not $12.50. Each share of stock must now appreciate $6.00, or 600 price movements, to equal the profit from day trading 5 S&P 500 Emini contracts moving up only 1 price movement.

Here is the best part. One price movement day trading the S&P 500 Emini could take you under 4 minutes of actual live trading time. Perhaps your elapsed time in front of the computer may be longer, but actually live in the Futures Market, less than 4 minutes.

If you would like more information about this kind of day trading, attend a Monday night Webinar hosted by http://Shadowtraders.com. See for yourself what trading Futures is all about. Shadowtraders offers a 4-Day intensive online trading seminar, an online trading course, trading software with built in trading strategies and trading alerts using technical analysis charts.

Barbara Cohen is a professional day trader. She has trained hundreds of students to trade Futures with Shadowtraders trading system. Before you purchase any trading software, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen

 

An Essential Trading Strategy for Technical Analysis Charts

To understand the essential nature of pivot trading, you’ll need to first of all understand that the stock market is controlled. Perhaps it could be best said that the Stock Market is entirely controlled and if it were not, then millions of Futures contracts and millions of shares of stock could not change hands each day so competently.

You don’t believe that the market is controlled? Let’s see an example of how control works. At the end of May 2009, Treasury Secretary Tim Geithner went to China and met with Chinese government officials. The Chinese handed Geithner a kind of warning, the conversation most likely went like this…their telling him that they have invested in the U.S. stock market and in Treasury bonds. They are willing to sell their holdings if the stock market does not rise soon.

Geithner realizes that Chinese withdrawal from the Market could crash the U.S. economy, an economy only being held together with rubber bands.

Geithner returns to US. Can he and his Treasury friends do anything to fix the problem? Geithner’s meeting with the Chinese happened at the END of May. After his return, the Dow appreciates to 8,800 from 8,200 in 2 weeks, a 600-point rise. Strange…this market that had not moved for over two months, hanging around 8,000. How could the DOW move up 600 points in two weeks when it hadn’t moved in over 2 months? July and August, the market rose almost 1,000 points. Examine an old Dow chart for the past five years. You’ll understand that May through August are generally thought to be what is known as summer doldrums. How could the DOW go up 1,300 points in just over one month?

The point of the story? How does that help you to become a 12-minute trader? Simple. The point is the market is controlled. The market’s “insiders” know where the market is going and how fast it will get there. They follow specific trading rules, one of which is pivots. Here’s a trick to help you become a 12-minute trader: Just learn the insider rules. Buy when they buy and sell when they sell. Be the market’s shadow. Follow the markets’ rules.

What are pivots? They are support and resistance price levels that the market’s insiders use to control daily highs /lows on any given trading day. There are actually 17 Futures trading pivots — nine inter-day (occurring over more than 1 day), and eight intraday (occurring in just one day). Futures Market insiders use Futures Pivots while stock market insiders use Stock Market pivots. To be a consistent 12-minute trader, you’ll need all the pivots to appear on your chart. It is very difficult to trade without pivots on your charts

Want to learn more about becoming a 12-minute trader? Attend a Monday night webinar on trading Futures sponsored by http://www.shadowtrader.com. You will be able to see the pivots in action on the current day’s chart. Shadowtraders always shows the current day, not some chart from weeks or months earlier.

Before you buy a Futures education program, make sure you attend one of Barbara Cohen’s excellent free Monday night Webinars

 

A little Recommendation To New Traders Wanting To Learn Forex Trading

Too many new dealers attempt to learn forex trading using some of the free pointers and recommendations available online.

While this could be a good method to get an experience of the fundamentals, it’s not inevitably the proper way to learn foreign exchange trading secrets that could help raise your earnings. It may also be a quite complicated market-place to navigate without a total cognizance of the simple way to trade foreign exchange and continue to collect profits no matter whether the market is going down or up.

It is a worldwide market that makes it doable for dealers to make profits without concern for whether the cost of your base currency is going down or up. The freedom for currency exchange traders to put orders at any point of the day or night, from anywhere in the globe with a net connection also makes foreign forex trading very appealing to lots of folks. The forex market isn’t the same as the stock exchange. Once the values have changed, the seller can then close out the contract, switching the foreign currency back for the base currency and keeping the benefit. To make things even less complicated, it’s possible to use automatic foreign exchange trading software, occasionally referred to as foreign exchange bots, to place contracts through your trading account for you.

The robot will monitor and track any moves in the values of currencies as they relate to your chosen base currency and then generate signals to let you know when it’s found a probable worthwhile trade. This type of software often comes with a currency trading guide to help create a trading system.

It is critical to have a clear method in place before you start exchanging so you will not be at the mercy of holding contracts too long. foreign exchange courses can be useful for helping any trader to find how to keep potential losses at a bare minimum. They are also able to help boost the possibility of selecting more winning orders.

A forex trading guide can be a superb way to hurry up your training process and give you a bigger appreciation of trading foreign currencies to earn profits. Using the data you learn in currency exchange courses can distance you from the variety of dealers who never seem to make any profits . If you really are serious about turning a trading spare time pursuit into a profitable small business that might simply earn more than any real job, then it is important to spend the time to work through forex courses and appreciate how a forex trading guide can become your largest profit-making tool.

If you are considering to learn forex I invite you to read our tips onforex trading education

 

The automated Forex Trading Software

If you own an automated Forex trading system, you could have a clear advantage while Forex trading. However, it is the Forex strategy that truly gives your automatic Forex software the upper hand. If you would like to take advantage of long-term success, then it is not advised for you to trade on gut feelings or just because you are excited over a certain trade. No, you will need a Forex trading system/strategy that will make sure that you are making actual trades and transactions.

All Forex strategies have guidelines which show how to appropriately initiate trades in the Forex industry. Any Forex system will furnish you with information on the right time to initiate a transaction, as well as when to get out of a transaction. This will also help you to be capable of assessing when to use sufficient money managing skills.

How can you tell whether your particular Forex trading strategy/system is right for you or not? Here are some tips. Start doing your research now to determine how profitable your strategy has been in past contracts. Believe it or not, it pays off to become acquainted with the profits that previous using the same strategy have made so far. Also, get your hands on the best information concerning the maximum drawdown of the strategy throughout previous trading.

You should also get acquainted with the win-loss ratio. This calculates approximately what trades you have won and which ones you have lost. In addition, you should also concern yourself with the profit-loss ratio. This is the computation of your average successful trade compared to the trades you have lost.

Pay attention to regularity in how successful the system was in delivering profits to previous investors.

Each time you are opting for a Forex system, do not only think about the percentages of profit. Your particular lifestyle should be a determining factor in which one you choose in order to suit you properly. Consider also your particular area of the world when spending time to familiarize yourself with any system. Leveraging is a particularly useful strategy used in Forex trading. Using this clever strategy, you would be able to earn nearly 100 times over the amount that you have stored in your Forex trading account. There are many investors who testified to the fact that they are capable of winning large profit increases in utilizing this type of strategy. Therefore, you are able to use a strategy to get more profits if you have a pre-funded Forex trading account.

There is also the stop-loss order. The system operates by properly locating an area in which you would not opt to trade. This, of course, would be set before you do any trading. If you decide to use this type of strategy, you need to have the required background information which would enable you to offer proper analysis of the trading signals, so you do not make a mistake in your speculations. If everything does not go as planned, you could lose huge sums in the Forex market.

Then there is automated Forex trading. Initiating and leaving Forex orders are configured by your automated trading system. Just like the other systems, the particular ways an area in which the software program would initiate or leave a trade is preset.

All three of these basic Forex strategies open up new opportunities in the Forex market. It does not matter if you are using leverage, stop loss, or an automatic Forex trading system, a 100% rate of success is never assured. All of these systems do not have the goal of making perfect transactions, mainly because this is impossible. All of these systems are in place to aid you in reducing the amount of risks involved when initiating and leaving Forex trades.

You would be crazy to spend any money to learn forex trading before you take some time to learn about the many forex robot out there.

 

Choosing the Best Automated Currency Trading System

There is no doubt that automatic Forex trading systems are becoming more commonly used. There are countless beginning, aspiring Forex traders who are interested in investing their hard-earned cash in the forex trading market, but need a little help over the use of automatic currency trading system robot.

High profits can be attained with the use of these somewhat revolutionary systems, while enjoying a more adjustable and diverse trading platform. It does not take much: due to the popularity of automated currency trading software, all you need to do is go on the Internet, and type in a search for the term automated Forex trading, and look at all of the different results. There are many systems claiming that they work better than others. Of course most if not all systems will claim a better performance than the rest, but how can you be absolutely sure that you are getting the best robot in the market, and whether or not these claims are true? There are a number of things that you have to do in order to make sure that whatever automatic forex trading software program you choose is effectively designed for your specific needs.

First, whenever you choose your automatic system, make sure that it takes care of all of your trading needs in the Forex market. There are a lot of systems out there that are capable of trading many different types of currency pairs, as well as offering other services such as brokering and trading activities.

Second, make sure that the software you get can properly analyze the Forex market. You can do this easily by looking at the reviews of other clients concerning the Forex software. When you’re evaluating the software, try to do your best to separate the opinions from the actual truths. If there is a piece of software that has performed terribly in the past, odds are it will take a long time for it to improve in the future.

The importance of dependability cannot be stressed enough. When you are looking to choose your automated Forex trading system software, always be sure that it is a system in which it can backup your data. Forex markets run around the clock, so you will need a dependable software that can easily backup records and operate without interruptions. Whichever forex automatic trading software you choose, it should also be fairly safe. Any trading and sensitive, private data should be secured by an Internet-based system which will encrypt all of your information for high-grade protection.

This is important because the same threat could easily extend to your PC and other software, if your automated trading system of choice were not enough secure. Your automatic software should be totally customizable. You want to be able to configure your automated currency trading software to adapt to your specific Forex trading style. You must also verify that a variety of other options be available, these include multilingual support, sub-administration, and its compatibility with other web applications. If the software has sub-administration, this means that it has the capacity of allowing a number of different brokers on one particular server.

Choose a system that you can easily understand. It should be comparatively easy to install, and come with sufficient info to help you resolve any problems that may occur. Avoid automated Forex trading systems that have longer losing periods and larger drawdowns.

Make sure that any automated forex trading system that you choose comes with a return guarantee or some type of refund policy. Do not spend more cash than you need to on an automated Forex trading program. If you spend more funds than you can afford, then you will not be able to invest enough cash in the market to see the great benefits of high earnings. Even if you do find the perfect piece of automatic currency trading software, this does not mean that it will ensure 100% success in the forex trading market.

You will, of course, need a lot of good money managing skills, as well as good news feeds on forex trading. If you are able to wait and learn and go through the ups and downs associated with every education process, you’ll be able to become a successful trader in the Forex market.

If you are considering trading with the help of forex signal software I invite you to read our forex signal software reviews

 

Forex Made Easy Does Not Have To Be Hard

If you are looking to invest and have a little bit of money to do so then the foreign exchange market is the place for you. With trillions of dollars moving through it each day, the possibilities can get really exciting. Now like anything if you jump right in without any experience you can lose your shirt. So let discuss this forex made easy style and go over some key points.

I find the forex market, even with its size and potential, to be easier than other most other markets. Let’s think about the stock market for a second. How can anyone possibly research and study the thousands of stocks being traded everyday? How could you ever really become an expert? Where to even begin? Well in the forex market we are really only concerned with a few currency pairs.

Getting the right “forex made easy” information is all about finding good sources. There are many ways that normal people can trade the market without researching all about forex. You could automate things with a forex robot, take trades from forex signals, or learn a system from a veteran trader. Your options are just about limitless.

With the creation of expert advisors and forex robots we now truly have “forex made easy”. It doesn’t get much simpler than this. Open up an account with your favorite broker, drop in your robot, and watch it trade automatically for you. This is truly the easiest way to get started. And while it will not guarantee you riches, you will be able to get started almost immediately.

While there are a number of great robots out there a lot of them are just fancy sales pages. Don’t get caught up in the instant riches and claims of the product’s website. Do some digging and research before you buy. None of them are perfect but they each of strengths and weaknesses. Always test out your new robot with a demo account before actually putting up your real money.

In my opinion forex signals are the best thing for you to not only make money as a beginner but learn how the market works while you are trading. The signal providers send you messages on when to make a trade based on their years of expertise in the market. You can decide whether or not to make the trade and put it in yourself. A good provider can definitely help your profit margin in the short and long term.

If you really want to trade forex I would definitely suggest studying and analyzing the markets. Find a good manual trading system out there that you can study and work off of. This way you can implement the system and learn how it works, allowing you to grow and develop your own methods.

Regardless of what you decide to do, “forex made easy” is absolutely achievable. Don’t worry if it seems baffling at first. The main thing is that you find a winning mix of systems that work for you. After you do that, it’s all about bringing in a healthy return on your investment.

The forex made easy method completely explained at http://tradingforexblog.com

 

It Is Not Too Late To Profit From High Volatility

For investors who survived the past two years, it will not be much of a surprise to learn that market volatility, as measured by the Chicago Board Options Exchange, has risen from a modest 16 to a little over 79, the highest level ever reached.

To give perspective to just how high the volatility index climbed, think back to the chaos that followed September 11, 2001. That point, volatility “spiked” to 33. These days, as the index reports a number in the 30 range, the markets seems subdued. This is definitely not the case, which means investors can continue to profit from volatility.

When taking a run at profiting from the markets, individual investors will only succeed when they are able to distance themselves from the emotion of investing. This is extremely difficult to do, however, and is why so many investors are gun shy and keeping their money invested in safer instruments. It’s not difficult to understand; we all work hard for our money and to see it erode in a market where we receive no tangible benefits is terribly difficult. Trading software that tells us when to buy and sell can eliminate this emotion as the software, like an investment manager, does not care that we invested blood and tears into our investments.

The next thing the investor needs is an understanding of volatility. Although Yahoo! Finance provides a neat graphical image (enter “^VIX” in the quote box), it does not give a definition to the term. Simply put, volatility is rate of change in the deviation from the mean. This means that the higher volatility, the more rapidly a price will wander from its mean price.

The last thing an investor needs to do is tame the beast known as greed. This is a difficult thing to do since short term returns give us a taste of just how much we might make if we stay invested just a little longer for just a little more money. By using trading software, investors are better able to remove the emotion since the software will study concrete factors like volatility, moving averages, momentum, and so on whereas investors study the profit and potential for more.

While trading systems allow investors to remove the emotional side of investing, they are not absolutely required provided that the investors can control their greed. By eliminating emotion, investors can take advantage of the profit opportunities that volatility offers.

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