Forex, Stock, Commodities and Options Trading Rules

Apr 162016
 

Ten Rules for Investment, Forex, Stock Trading, Commodities and Options Trading

Trading investment strategies including stock index investment strategies and options trading investment strategies that deploy ETF’s of Dow Jones Averages , SP500 index, index futures and other investments such as forex and commodities for short term winning trades are available for those of you who do not buy puts or use options investment strategies to protect your portfolio.

ETP’s are relatively new vehicles for investment and option trading investment markets, their popularity has exploded over the last decade as investors sought ways to diversify away from traditional investment vehicles; stocks, bonds and their indices. While investment vehicles change and investor focus on sectors change daily, some things never change, here are 10 Rules for investment trading that never seem to change:

1. ALWAYS TAKE WINDFALL PROFITS

2. Buy Triple Tops and Sell Triple Bottoms

3. Sell Double Tops and Buy Double Bottoms

4. The TREND is your Friend

5. Buy a two day break in a BULL market and Sell a two day Rally in a BEAR Market.

6. Go with outside reversals. A lower low than the previous day then up above the previous high, constitutes a Buy: The opposite is true with a SELL. Markets always go down faster than they go up. You must follow this rule and SELL.

7. GO with the MIRROR IMAGE. One of the most reliable indicators is the pattern of a single day of market action followed by a reversal of the same or similar length. If on the third day it retraces in the range and then extends in the reversal direction, GO WITH IT!

8. Always BUY new Contract highs on Friday if the Market is trading within 10 % of its session highs on the closing range. SELL the close if the market is making new contract lows and is within 10 % of its session low for the day. This is called the Weekend Rule.

9. Never trade on Negative equity.

10. Look for a 4 -day or longer congestion Range. Go with the breakout of  this range. If the market breaks below the congestion- SELL. Vice versa if it breaks above the Range.

Making your trades at the right time is crucial to successful investing  strategies and making high returns from your trading , subscribe to FuturesCom for Excellence in Analysis.

Observation. experience , memory and mathematics–These are what a successful trader must depend on. He Must not only observe accurately but remember at all times what he has observed. He cannot bet on the unreasonable or on the unexpected, however strong his personal convictions maybe about man’s unreasonableness or however certain he may feel that the unexpected happens very frequently. He must bet always on probabilities–that is try to anticipate them. Years of practice at the game, of constant study, of always remembering, enables the trader to act when the unexpected happens as well as when the expected comes to pass. A man can have great mathematical ability and unusual power of accurate observation and yet fail in speculation unless he also possesses the experience and memory “–Reminiscences of a Stock operator- 1929

Investment strategies and options trading investment strategies that deploy ETF’s of Dow Jones Averages, SP500 and  other investments for short term winning trades are available for those of you who do not buy calls and puts or use options investment strategies for investment portfolios.

 

Commodity ETF

Mar 022016
 

Commodity ETF’s, Forex ETF’s & ETN’s , ways to invest now and how to use them and whyCommodity ETF

Commodity ETFs (exchange traded funds) and ETNs (exchange traded notes) are Exchange Traded Products (known as ETP’s) . ETF’s track the price of a single commodity, such as gold or oil, or a basket of commodities by holding the actual commodity in storage, or by purchasing futures contracts. Because futures provide leverage (more exposure than the actual cash invested), ETFs that use futures contracts have uninvested cash, which they usually park in interest-bearing government bonds. The interest on the bonds is used to cover the expenses of the ETF and to pay dividends to the holders. Commodities ETFs that use futures can and have diverged significantly from the price of the hard commodities themselves.

ETNs (exchange traded notes) have to track the price of the commodity closely. Commodity ETNs are non-interest paying debt nstruments whose price fluctuates (by contractual commitment) with an underlying commodities index. Because they are debt obligations, ETNs are subject to the solvency of the issuer.

Commodity ETFs generally track the producers of commodities, such as mining companies. While the financial performance of those companies and thus their stocks may be highly leveraged to the underlying commodity, other factors can impact the profitability of  production. The ETFs, therefore, may not reflect the performance of the underlying commodity. For example, gold miners are highly leveraged to the discovery of gold deposits, exchange rates and their relationships with the countries where gold deposits are found.

Forex Market Symbols with Leverage ; Dollar Index Double long is UUP , Double Short is UDN, Euro Double long URR , Double Short DRR,  Yen Double Long YCL, Double Short YCS.

Simple Forex Market Symbols Japanese Yen FXY, Australian Dollar FXA , Swiss Franc FXF,  Mexican Peso FXM , Canadian Dollar FXC , Indian Rupee ICN,  Brazilian Real BZF,  British Pound FXB, Euro FXE.

Energy related and commodity baskets ETFs ; DEB or ETN UBN, RJN, JJE.  Oil is available as a simple long USO, USL, OIL, DBO, OLO, Leveraged long UCO, or Short SZO, DNODouble short DTO, SCO. Simple Longs ETF for Heating Oil UHN. Simple Long for Gasoline UGA. Natural gas is available as an ETF UNL, UNG or ETN GAS.

Precious metals and Baskets DBP, PSAU. Gold is available as a simple long GLD, IAU, SGOL, DGL, and UBG. Leveraged long DGP, UGL, short is DGZ and double short DZZ, GLL.  Silver, a simple long SLV, SIVR, DBS, USFV, leveraged long AGQ and double short ZSL position. Platinum simple long; PPLT, PTM, PGM and short PTD. Palladium comes only as a simple long PALL. ETFs containing gold and  silver related stocks – the gold miners and junior gold miners GDX, GDXJ.

Broad commodity indexes/ baskets GCC, GSG, DBC and ETNs UCI, GSC, DJP, GSP. Leveraged  broad commodity ETF UCD, a leveraged broad commodity ETN DYY, and a double-short broad commodity ETF CMD and ETN DEE. ETFs which track the stocks of companies in the agricultural commodity business are CUT, MOO.

Agricultural commodities ETN COCOA: NIB COFFEE: JO COTTON: BAL SUGAR: SGG. Agricultural Baskets are  available for Livestock: UBC, COW, GRAIN: JJG, GRU, SOFTS which include coffee, sugar, ECT JJS, BIO FUEL: FUE and FOOD: FUD.  Broader agricultural indexes are also available via ETF DBA ETN UAG, JJA, RJA.

Industrial commodities ETN’s are Aluminum JJU, Copper JJC, Lead LD,  Nickel JJN Tin JJT.

Industrial metal baskets are also available via ETF DBB and ETF UBM,  JJM, RJZ. ETFs are available which track the stocks of companies in the  industrial commodities business PKOL, KOL, SLX, HAP.

Remember , ETP’s such as commodity ETFs (exchange traded funds) attempt to track the price of a single commodity, such as gold or oil, or a basket of commodities by holding the actual commodity in storage, or by purchasing futures contracts. Because futures provide leverage (more exposure than the actual cash invested), ETFs that use futures contracts have uninvested cash, which they usually park in interest-bearing government bonds. The interest on the bonds is used to cover the expenses of the ETF and to pay dividends to the holders.

Commodities ETFs and Forex ETF’s that use futures can and have diverged significantly from the price of the hard commodities themselves. ETNs have to track the price of the commodity closely. Commodity ETNs (exchange traded notes) are non-interest paying debt instruments whose price fluctuates (by contractual commitment) with an underlying commodities index. Because they are debt obligations, ETNs are subject to the solvency of the issuer.

For More information please contact out 24 Trade Support

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