April 28th, 2009
The world of financial trading might seem complicated and beyond your grasp at first but the basics are not rocket science. The trick is to get an explanation that is not filled to capacity with every piece of jargon available on the topic. Trading in its simplest form is simply the exchange of stock, shares or currency for a monetary value in the hope that it will yield a profit when traded back at a later stage.
Spread betting, however, is a little different. When you try your hand at spread betting you will be placing a bet on whether the value of something will rise or fall within a set time period.
Spread betting systems
Trading systems are one way to take some of the work out of spread betting. Trading systems are software programs that help you place bets and make profits. Trading systems can also be referred to as trading platforms. These software programs make use of strict rules to predict the outcome of a trade or, in the cast of spread betting, to predict the future spread. Trading systems and their writers are a plenty out there and it is crucially important that you get yours form a reputable trader or broker, such as LS Trader.
Using a system that is not 100% up to scratch can cost you a pretty penny on top of what you actually paid for the program. Spread betting is a gamble and even though a good trading system offers you a great chance of making a profit there is no guarantee of success.
Tags: financial trading, financial trading system, Online Trading, Spread Betting, spread betting system
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April 23rd, 2009
Trading in general and especially spread betting is one gamble after another and this uncertainty can take its toll on you as well as deliver tremendous benefits when you are successful. Trading and spread betting can bring in enough extra money to increase your financial status and help you obtain that lifestyle you want. Trading can also eat away at your nerves because you never know for sure whether you will be making a profit or a loss.
The bigger the bets, the greater the risk and the greater the nervousness and thrill. Getting caught up in a loss every time things do not turn out for the best can make you doubt your trading system.
Stick to your guns
It is incredibly important to keep a level head when faced with a loss. Jumping from one trading system to the next in search of the mythical perfect trading platform will only end in disaster. All traders experience loss, even the best of them and that is something to keep in mind and to keep you motivated when disaster strikes. Stick with a good trading system like LS Trader’s system and learn to trust it, relaxing will help you raise your game and your profits.
Tags: financial trading, LS Trader system, Online Trading, Spread Betting
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April 22nd, 2009
Known as ‘trade language’, it is an internationally recognised, semi-technical minimal language used by people who have no common language. Referred to as ‘jargon’, this type of language is common in specialised fields like trading, or computers. It is used to avoid the type of confusion caused by giving the same item many names.
Trade jargon does not stabilise, nor does it expand, and you probably wont find it in any dictionary either.
Examples
‘Going long’ tells everyone that you are either buying or holding stock whereas ‘going short’ would indicate that you are selling stock short. Selling stock short describes borrowing stock that you don’t own and then selling it the intention of buying it at a later date for less than sold it for.
‘Blue chip’ stock indicates valuable stock which has proven itself and has the potential to make a lot of money.
‘GTC’ indicates that stock is ‘good till cancelled’ while ‘bottom fishing’ indicates stocks that have declined in value. A ‘day order’ says buy or sell at a certain price. If not bought or sold on the day it is placed, this amount expires.
‘MKT’ signifies urgency and stands for ‘at the market’. It says buy now no matter how much you have to pay or how little profit you make.
‘Uptick’ and ‘downtick’. ‘Uptick’ the next trade will be at a higher price than previous trades, while ‘downtick’ means the opposite.
‘DNR’, ‘do not reduce’ is usually assumed unless otherwise specified.
‘Overbought’ or ‘oversold’ refers to a market where people have been wildly buying or selling and shares that are considers ‘over valued’, ‘under valued’ or ‘fairly valued’ describe stock just that.
Tags: Financial Spread Trading, financial trading, online trading jargon, stock market trading, trading jargon
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April 17th, 2009
There are only two kinds of day trader. There is the institutional trader and the retail trader.
The Institutional trader, as the name suggests, works for someone in a financial institution. This can give them advantages over the other type of trader because they have access to a vast array of resources such as tools and equipment and office staff who help them with the daily nitty gritty administration stuff.
They have access to office computers with the most up to date analytical and expensive software packages and they have pools of capital availabe to them.
Institutional traders also have access to large pockets of fresh fund inflows so that they can trade the market continuously. They have dedicated and fast lines to data centres and exchanges. All of which give them an edge in a highly competitive market.
The retail trader on the other hand is what is known as a private day trader. These traders work for themselves or they are in small partnership with other traders.
Retail traders have to use their own capital to trade, but they can use their customers, or investors money to trade with too, however the amount they can trade has been restricted by law. In some countires retail day traders are not allowed to advertise their services as financial advisors.
Before the advantages of technology in the form of communications, the internet and personal computers, all retails traders were institutional traders. Technology has allowed online trading because of fantastic analytical tools.
Together with affordable commissions and improved regulations, retail traders are able to make a success of themselves without the back up of large, corporate institutions.
Tags: Day Trader, day trading, financial trading, Spread Trading
Posted in Spread Betting Jargon Explained | 1 Comment »
April 14th, 2009
In-depth knowledge about spread betting is not necessary when you decide on Long and Short trading automated computer systems. In fact you don’t need to know anything about spread betting. All you have to do is follow recommendations on when to place your trade and when to close or exit a trade. The LS Trader system will advise you when to place or stop in order to minimise your risk.
Spread betting systems allow you to trade successfully without spending hours of your time trying to make these decisions yourself. They have the knowledge you don’t, and they are easy to follow, requiring little effort in relation to reward.
Another bonus is that they don’t cost a lot because they charge a reasonable monthly charge which you can cancel whenever you want.
With the aid of trading charts, these systems ensure that you don’t have to make the decisions, however, this may work in theory and for any type of trading to be successful it is necessary for the trader to use their own personal discretion accompanied by discipline and a level head.
Trading often fails to produce results because of human error, not because of a weak system. In fact most systems will offer instructions on when to trade which reduces or diminishes any chances of the trader making rash and emotional decisions.
These systems require no complicated charting software, and abolish the need to sit glued to your computer screen twenty four hours day. You can operate your system anywhere in the world and devote as little as fifteen minutes to it per day.
Tags: Add new tag, Financial Spread Betting, financial trading, LS Trader system, Online Trading, share trading, Spread Betting
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