A mortgage broker is a certified professional who gets the best mortgage terms for you by contacting a network of lenders which include major banks, credit unions and finance companies. This stable of lenders provides brokers with a certain amount of interest on a daily basis. There are some benefits of using a mortgage broker than doing the whole process on your own. The benefits are as follows: Read the rest of this entry »

The Dow Theory is the oldest method of identifying major trend reversals in the U.S stock market. The main objective of the theory is to determine changes in the primary movement of the market. Charles H.Dow was the developer of the Dow Theory in 1900. The Dow Theory was used as a barometer for business conditions rather than a tool for forecasting stock market prices back then. The principles were further developed and reorganized by William Peter Hamilton in 1922 which was later formalized by Robert Rhea in 1932 and E. George Schaefer into a more complete account of principles that is practical for use today. Read the rest of this entry »

Every trader begins their own arduous trading career by taking baby steps in learning and improving their knowledge and skill in a continuous manner. They need to focus all of their energy and effort to improve the probability of wining in every trade made while simultaneously learning to deal with emotions. Everyone of us are unique individuals. We look at the same situation but we react and also analyse it differently. While the basic knowledge for trading, both fundamental and technical analysis are similar for most financial instruments, an example can be the analysis of the potential of a certain company stock to make money. However, the methods of trading, the trading plans,level of discipline and emotional aspects for each individual are very different. This is why it can be difficult to make money in the market and have a trading career if the individual trader does not improve on his areas of weaknesses. Read the rest of this entry »

Some of us may start trading after attending a trading course in exchange for the knowledge imparted by some amateurs or experts. Some people may start trading after reading several books and paper trading for months. Some regard trading as a way of lifestyle, playing the game of who’s right and who’s wrong on the pricing of the securities. Some regard trading as a self discovery journey on how to deal with innate human emotions. Whatever the case may be, all of us began our own trading career some point in life with many different reasons. We have our unique own way of analysis and looking at things differently, not to mention on how emotions will affect our reactions in different market conditions. That is why we always hear people saying that the market is always in a constant flux of emotions. It is a chaotic place where greed and fear prevail. If there is ever a list of the toughest careers in the world, trading has got to be one of them. This is a career that will require your passion, dedication, full focus, discipline, lots of thinking and reading on your part to constantly upgrade your knowledge and trading skills, and most importantly of all, your ability to control your emotions and not let them affect your judgment. Read the rest of this entry »

Glancing through the financial newspapers, magazines and other publications related to investing and trading, you noticed large advertisements of success stories of people becoming millionaires through trading options. You start to ponder for a few seconds and think whether is it for real? The term “option” seems so foreign to you but yet it seems so familiar at the same time. You know you have heard of this term before but you just could not recall where, as you are too preoccupied with the things you are doing. One thing to be certain, the advertisements mentioning these type of financial instruments, are definitely becoming more and more common in the financial publications. You know you definitely have to find out more. Who doesn’t like to have more options to make decisions on what to invest in when it comes to diversification of your own portfolio?

Welcome to the world of derivatives. Options is just one type of derivative. The term “derivative” means that each kind of financial instruments classified under its category, do not have intrinsic value of their own. Read the rest of this entry »

When i first started out and was exposed to the world of trading in the year 2006, the first most important thing that i was being told repeatedly by experienced traders, was to never trade without a plan. “Trade without one, you are just a naked soldier in the battlefield without your armor”. Read the rest of this entry »