Exactly What Is The S&P 500 Market? (Part 1 of 6)
A Brief Introduction
The Chicago Mercantile Exchange (cme) introduced the S&P 500 futures contract back in spring of 1982. The S&P 500 futures market has now become today's most actively traded equity futures contract. The S&P's futures contract represents roughly 90% of all us stock index futures trading. The S&P 500 is comprised of the largest 500 listed stocks, therefore allowing you to easily and effectively buy or sell an extremely well diversified portfolio of stocks in one stock index futures contract. This allows you to make trading/investing decisions based on your overall outlook of the stock market. Let me quickly give you a couple advantages of trading the S&P 500 stock index futures contract:
You can easily participate in broad market moves, with one trading decision (one chart) - instead of having to choose individual stocks (looking at many charts). Why bother looking at various stocks when you can trade the S&P 500 - one chart - one market.
You can easily protect the value of a portfolio during adverse markets without incurring high transaction fees.
And in October 1997 the Mini S&P 500 (symbol = es) was introduced - which is the same as the S&P 500 (symbol = sp), except it is one fifth the size in terms of point and tick size, discussed shortly.
Monday, February 13, 2012
Tuesday, February 7, 2012
Key Trading Guidelines & Procedures part 2
Guidelines & Procedures you Must Follow To Successfully Trade The Markets.
-Know What You're Doing Before You Act. Knowledge and practical experience in the markets are the most beneficial teachers. Although without the proper education before trading can literally stop you in your tracks right from the start. That's why you must find someone who has been doing it successfully and model their success - their trading strategies & techniques, etc. - a company like Trading Concepts, Inc. for example. See the paragraph entitled, "Learn From Role Models".
-Don't Put All Your Eggs In One Basket. One of the keys to success in trading is diversification. If you're a day trader you shouldn't be trading more than a few markets at a time. Master a few markets first, then when you start making money on a consistent basis you can venture into other markets. Start off small and concentrate and focus on a few markets until you master them.
-Always Know Your Place. You can not control the market. It will move regardless of what you want it to do - period. It is inevitable that hope, greed and fear will cloud your vision and cause emotional responses detrimental to your trading, that's why you must master your emotions (see Avoid Your Emotions).
-Never Try To Pick Tops Or Bottoms. This is not easy for anyone to try and do. It's much better to find the trend and enter at logical levels into the trend. Most beginners try to pick highs and lows using what they think are some "magical indicators". Our suggestion to you is to avoid trying to do this. Unless you've got a few years trading experience under your belt, simply leave this alone. You really have to be quick and nimble in attempting to pick highs and lows. Only with the proper training and experience would we ever suggest doing this. Even then it's difficult. So, find the trend (i.e. according to 'Trend Determination' - as taught in this Course) and enter at logical levels - you'll be more successful - we guarantee it.
-Only Trade The best Chart Patterns & Formations. If you're unsure of a trade set-up, chances are the trading pattern isn't crisp and clear enough to risk any money. If you're not sure of a trade, stay out and wait for a better trading opportunity. Do Not Overtrade and wait for the absolute best trade set-ups possible (try no to trade more than 6 markets at one time). In fact, trade as little as possible and only take those trades that are setting up the best - remember, look for only the best Trading Opportunities.
-Be Patient and Discipline In Your Trading Approach. Patience is a virtue, especially when it comes to the trading business. If you are not patient, the markets are sure to get the best of you. Waiting for those special opportunities to make money is what this business is all about. Discipline will help prevent you from shooting from the hip and help you stay with a plan of action (i.e. as taught in the Trading Concepts Lifetime Mentoring Program). Discipline will also help you in becoming consistent in your trading approach, which is very Important in this business. Like in any other business, both Patience and Discipline is a must.
-Act On Your Decisions. Once you've decided what to do - If you hesitate too long, chances are you'll miss a good trade opportunity. The key ingredient in becoming successful is being able to act on what you see. You will never make money by standing on the sidelines. Have a mind of your own and don't rely on anybody else for your trading decisions.
-Avoid Your Emotions when trading. Your emotions can be your greatest enemy. When trading, your emotions must be under control and must be ignored. Do exactly what you're supposed to do without your emotions altering your decisions too much. Sometimes this can be difficult to do, but when you've mastered this you've truly overcome a major hurtle in your pathway to success in trading.
-Develop Winning Attitudes & Behaviors. A good way of doing this is by reading about the worlds greatest traders. This will also help motivate you and show you that great fortunes can be made in this perfect business. I suggest reading "market wizards I & ii, Interviews with Top Traders", by Jack d. Schwager. Besides learning how to trade, you must also spend some time developing yourself - self control, patience, discipline and a positive mental attitude (pma), to name just a few. An Important aspect of successful trading is the trader, not necessarily the trading methodology (though that helps a great deal).
I truly hope you've enjoyed and learned a lot from this trading lesson. Please remember, there are many more to come in the following weeks, so please be on the lookout for them. And once again, please feel to visit my website: http://www.yourtradingconcepts.com/
-Know What You're Doing Before You Act. Knowledge and practical experience in the markets are the most beneficial teachers. Although without the proper education before trading can literally stop you in your tracks right from the start. That's why you must find someone who has been doing it successfully and model their success - their trading strategies & techniques, etc. - a company like Trading Concepts, Inc. for example. See the paragraph entitled, "Learn From Role Models".
-Don't Put All Your Eggs In One Basket. One of the keys to success in trading is diversification. If you're a day trader you shouldn't be trading more than a few markets at a time. Master a few markets first, then when you start making money on a consistent basis you can venture into other markets. Start off small and concentrate and focus on a few markets until you master them.
-Always Know Your Place. You can not control the market. It will move regardless of what you want it to do - period. It is inevitable that hope, greed and fear will cloud your vision and cause emotional responses detrimental to your trading, that's why you must master your emotions (see Avoid Your Emotions).
-Never Try To Pick Tops Or Bottoms. This is not easy for anyone to try and do. It's much better to find the trend and enter at logical levels into the trend. Most beginners try to pick highs and lows using what they think are some "magical indicators". Our suggestion to you is to avoid trying to do this. Unless you've got a few years trading experience under your belt, simply leave this alone. You really have to be quick and nimble in attempting to pick highs and lows. Only with the proper training and experience would we ever suggest doing this. Even then it's difficult. So, find the trend (i.e. according to 'Trend Determination' - as taught in this Course) and enter at logical levels - you'll be more successful - we guarantee it.
-Only Trade The best Chart Patterns & Formations. If you're unsure of a trade set-up, chances are the trading pattern isn't crisp and clear enough to risk any money. If you're not sure of a trade, stay out and wait for a better trading opportunity. Do Not Overtrade and wait for the absolute best trade set-ups possible (try no to trade more than 6 markets at one time). In fact, trade as little as possible and only take those trades that are setting up the best - remember, look for only the best Trading Opportunities.
-Be Patient and Discipline In Your Trading Approach. Patience is a virtue, especially when it comes to the trading business. If you are not patient, the markets are sure to get the best of you. Waiting for those special opportunities to make money is what this business is all about. Discipline will help prevent you from shooting from the hip and help you stay with a plan of action (i.e. as taught in the Trading Concepts Lifetime Mentoring Program). Discipline will also help you in becoming consistent in your trading approach, which is very Important in this business. Like in any other business, both Patience and Discipline is a must.
-Act On Your Decisions. Once you've decided what to do - If you hesitate too long, chances are you'll miss a good trade opportunity. The key ingredient in becoming successful is being able to act on what you see. You will never make money by standing on the sidelines. Have a mind of your own and don't rely on anybody else for your trading decisions.
-Avoid Your Emotions when trading. Your emotions can be your greatest enemy. When trading, your emotions must be under control and must be ignored. Do exactly what you're supposed to do without your emotions altering your decisions too much. Sometimes this can be difficult to do, but when you've mastered this you've truly overcome a major hurtle in your pathway to success in trading.
-Develop Winning Attitudes & Behaviors. A good way of doing this is by reading about the worlds greatest traders. This will also help motivate you and show you that great fortunes can be made in this perfect business. I suggest reading "market wizards I & ii, Interviews with Top Traders", by Jack d. Schwager. Besides learning how to trade, you must also spend some time developing yourself - self control, patience, discipline and a positive mental attitude (pma), to name just a few. An Important aspect of successful trading is the trader, not necessarily the trading methodology (though that helps a great deal).
I truly hope you've enjoyed and learned a lot from this trading lesson. Please remember, there are many more to come in the following weeks, so please be on the lookout for them. And once again, please feel to visit my website: http://www.yourtradingconcepts.com/
Thursday, January 5, 2012
Steps To Help You Become A Successful Trader - part I
(1) Learn From Role Models (Mentors). This is probably the most Important step in becoming a successful trader, although very difficult to find. Why reinvent the wheel when you can learn from a successful trader(s) who has been consistently successful for a long time. They've already paved the way by studying, experimenting and by trading successfully in real-time - in short you must learn from successful traders who have made the journey before you. They can tell you what works and what doesn't - in short they can show you the correct and profitable way to trade without you having to make the mistakes (which can translate into a lot of lost money, not to mention time). You must also select the right mentor (role model). A mentor that can make you a better and more successful trader -- and to help you achieve your goals. You'll also be able to learn from their mistakes. In general, you must take advantage of the lessons learned from successful traders who have already done it.
Once again, what you need is a Role Model(s), traders who are easily accessible and can really show you the ins and outs of trading. We know that our Trading Concepts Course will give you exactly what you need to be a successful trader/investor. But Please Remember: Tuition Alone Does Not Guarantee Success...our Course requires a personal commitment to excellence. We do not promote the idea of "wealth without work". Furthermore, we strongly advise you to be highly skeptical of any course, service, or system promising phenomenal results with little effort.
(2) Establish Good Habits. The only way to establish good habits as a successful trader is to be extremely organized. Getting organized will immediately start to put some discipline in your life, and give your day the structure that everybody needs. If you're not organized, you will set yourself up to be unfocused, thus you will ultimately fail. Do your homework, and prepare yourself each and every day. A successful trader must learn everything that they can in order to trade the markets. We can't begin to explain how Important it is to have good habits when it comes to successful trading/investing. Without good habits you are doomed to eventually fail.
(3) Set Realistic Goals: Goals are real Important in trading. If you don't have trading goals how do you expect to become a successful trader? Your trading goals can only be achieved through hard work and making sacrifices. And that goes for any type of goal you set out for yourself, not just trading. Goals are the individual steps that we must take in order to reach our dreams (i.e. to become a full-time professional trader). You must also be willing to consistently push yourself to attain your goals. Get excited about reaching the smaller goals, because a bunch of smaller goals eventually lead into reaching your bigger goals. Just realize that striving for excellence, striving for success is a never-ending process, something that has no end. Never stand still, always continue to try to get better. (1) To be a successful trader you must have a goal. Goal setting starts with a pad of paper, a pen and you, (2) a goal is created in three parts: * first is the mental picture - you must be able to visualize your goal(s) and where your goal(s) will take you * second is when you write down the goal(s) to help add clarity & dimension *third is when you take action towards achieving the goal(s). The best opportunities in life are the ones we create. Goal-setting provides you the opportunity to create a great life. And if becoming a professional full-time trader is your goal, there is absolutely no reason why you can't achieve that goal.
- Goal Setting:
-You must be Decisive -Stay Focused -Reward Yourself
-Write Down your Goals -Plan Thoroughly -Maintain Personal Integrity
-Involve Others (a Mentor) -Take Action -Expect Plan Changes
I truly hope you've enjoyed and learned a lot from this trading lesson. Please remember, there are many more to come in the following weeks, so please be on the lookout for them. And once again, please feel to visit my website: http://www.yourtradingconcepts.com/
Once again, what you need is a Role Model(s), traders who are easily accessible and can really show you the ins and outs of trading. We know that our Trading Concepts Course will give you exactly what you need to be a successful trader/investor. But Please Remember: Tuition Alone Does Not Guarantee Success...our Course requires a personal commitment to excellence. We do not promote the idea of "wealth without work". Furthermore, we strongly advise you to be highly skeptical of any course, service, or system promising phenomenal results with little effort.
(2) Establish Good Habits. The only way to establish good habits as a successful trader is to be extremely organized. Getting organized will immediately start to put some discipline in your life, and give your day the structure that everybody needs. If you're not organized, you will set yourself up to be unfocused, thus you will ultimately fail. Do your homework, and prepare yourself each and every day. A successful trader must learn everything that they can in order to trade the markets. We can't begin to explain how Important it is to have good habits when it comes to successful trading/investing. Without good habits you are doomed to eventually fail.
(3) Set Realistic Goals: Goals are real Important in trading. If you don't have trading goals how do you expect to become a successful trader? Your trading goals can only be achieved through hard work and making sacrifices. And that goes for any type of goal you set out for yourself, not just trading. Goals are the individual steps that we must take in order to reach our dreams (i.e. to become a full-time professional trader). You must also be willing to consistently push yourself to attain your goals. Get excited about reaching the smaller goals, because a bunch of smaller goals eventually lead into reaching your bigger goals. Just realize that striving for excellence, striving for success is a never-ending process, something that has no end. Never stand still, always continue to try to get better. (1) To be a successful trader you must have a goal. Goal setting starts with a pad of paper, a pen and you, (2) a goal is created in three parts: * first is the mental picture - you must be able to visualize your goal(s) and where your goal(s) will take you * second is when you write down the goal(s) to help add clarity & dimension *third is when you take action towards achieving the goal(s). The best opportunities in life are the ones we create. Goal-setting provides you the opportunity to create a great life. And if becoming a professional full-time trader is your goal, there is absolutely no reason why you can't achieve that goal.
- Goal Setting:
-You must be Decisive -Stay Focused -Reward Yourself
-Write Down your Goals -Plan Thoroughly -Maintain Personal Integrity
-Involve Others (a Mentor) -Take Action -Expect Plan Changes
I truly hope you've enjoyed and learned a lot from this trading lesson. Please remember, there are many more to come in the following weeks, so please be on the lookout for them. And once again, please feel to visit my website: http://www.yourtradingconcepts.com/
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