Tag: Traders Toolbox

Traders Toolbox: Momentum Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"MarketClub is known for our “Trade Triangle” technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the “Trade Triangles” to further confirm trends.

Momentum measures the change in a commodity’s price with time. M = Pc-Pn where M = momentum, Pc = current period’s price and Pn = price n periods ago.

The length of time used for the prior period is a matter of personal preference and time horizon of the trader. A narrow window of less than five periods back would be short-term in nature while six to nine periods would be considered intermediate; 10 or more would be a longer time perspective...."

Revisit the Trader's Toolbox Post: "Momentum" here.

Traders Toolbox: Moving Average Convergence/Divergence Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"MarketClub is known for our “Trade Triangle” technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the “Trade Triangles” to further confirm trends.

Developed by Gerald Appel, this indicator consists of two lines: a solid line called the MACD line and a solid line called the signal line. The MACD line consists of two exponential moving averages, while the signal line is composed of the MACD line smoothed by another exponential moving average..."

Revisit the Trader's Toolbox Post: "Moving Average Convergence/Divergence" here.

Traders Toolbox: Spread It On Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"Spreads sometimes are touted as a no- or low-risk trading option, ideally suited to smaller or more risk-averse traders. Although some do have limited risk in certain circumstances, spreads are by no means risk free, and in fact they contain some unique risks, especially for traders who don’t have a clear understanding of the limitations and possibilities of these transactions.In options markets, the term spreads covers everything from simple time spreads to complex butterflies, boxes and conversions. Although futures spreads are, at least on the surface, more straightforward than many of their options counterparts, understand the basic price relationship between different futures contracts as well as the function off spread trading is integral to a well-informed market perspective.

In the most basic sense, a spread refers to the price difference between two or more trading instruments, whether they are two contact months of the same commodity, two different commodities or the cash and futures price of a particular commodity. (The cash/futures spread is commonly called basis..."

Revisit the Trader's Toolbox Post: "Spread It On" here.

Traders Toolbox: Learning Options Part 2 of 4 Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"Many people like options because they believe them to be less risky than futures. Options sometimes offer reduced risk, but usually at the cost of reduced profit potential.

One drawback of options is that a trader must consider market speed (volatility) as well as direction. Traders who buy or sell options outright to profit from up or down moves in the underlying market can find themselves fighting an uphill battle against volatility and time decay. With futures, if you’re right about market direction, you’ll win. With options, you can be right about the market and still lose...."

Revisit the Trader's Toolbox Post: "Learning Options Part 2 of 4" here.

Traders Toolbox: Money Management Part 4 of 4 Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"This is the final portion of the Trader’s Toolbox: Money Management series. This post will recap the 5 main rules discussed. If you missed our previous post please click here for : Part 1, Part 2 or Part 3.

♦ Setting a goal - Decide what your trading objective is (quick profit and steady return) as well as your risk tolerance level

♦Diversification - If possible, allocate your finances between different products to avert the danger of getting wiped out in a single market. Don’t go overboard, though; think in terms of three to five unrelated instruments. Stick to markets you know, rather than risking the unknown for the sake of diversification...."

Revisit the Trader's Toolbox Post: "Money Management Part 4 of 4" here.