Why Trade?

Posted in Traders' Delusions, Submitted by Trading Critic on Thu, 2006-07-06 14:27.
Why traders trade the worldwide forex and stock markets

I've spent the past week just pondering what to write for my first "real" blog post after posting up my reasons why I set this blog up. I could start off with a "What is trading" post, but you wouldn't be here if you didn't know what trading already was. How about a post about "Where is trading?" Trading is everywhere. Retailers buy off suppliers, hoping to make money on the buy low sell high principle. But the scope of this website is trading the equity markets such as stocks and foreign exchange in markets all over the world. "When can one trade?" With the power of the Internet, there is always a market open for trade anytime for at least 5.5 days of the week. "Who trade the markets?" Financial institutions and private/retail traders like me. "How do you trade?" I'll be delving into the answers of this question throughout the life of this blog. Simply put, traders make money off the difference of the entry price and the exit price when they trade some equity. We've briefly looked at the What, Where, When, Who, How of trading, now we finally come back to the central question, "Why trade?"

Why so much emphasis on the why?

First of all, why am I placing so much emphasis on the why? Your own reasons for trading are important in successful trading. You must always remember the reason why you trade whenever you put forward an order. When you lose sight of your goal, you risk losing yourself in trading. You must be asking... "what the hell do you mean by that mumbo jumbo?"

Trading is sometimes closely linked with gambling, and I’ve argued before that trading is gambling (with a twist). And for this reason, you, the trader, must tread with caution in every trade you make. To ensure that you don't ever turn your trading into pure gambling.

add new comment | read more >>

Why Trading Critic?

Posted in Miscellaneous, Submitted by Trading Critic on Fri, 2006-06-30 13:49.

Why does this blog exist? Why Trading Critic? Well, as it states in my about page:

The sole purpose and mission of this website is to educate and inform aspiring traders and experienced traders alike about the state of the retail trading industry.

Business is booming, and as a result of the Internet boom, trading through the world wide web has become more accessible to anyone with a phone line, modem and a computer. You can basically trade any market now in the world from the US markets, German, English, Australian and more. Trading stocks, options and other derivatives are growing at an exponential rate. Retail forex dealers are promoting their wares all over the world and is an industry experiencing explosive growth.

As a result of this boom, there is a risk that a lot of people will be misinformed or misled by companies or the system and I seek to help and inform those traders who want to know the real deal behind the trading industry.

Good Luck!

Trading Critic's blog | add new comment >>

Trading Critic.com Now Live!

Submitted by Trading Critic on Fri, 2006-06-30 10:35.

Welcome To TradingCritic.com! This blog is now officially live. You can find out more about the blog in my About Page. Stand by for my new entries!

Please note all previously posted articles were "filler" articles to aid with website construction.

Trading Critic's blog | add new comment >>

Big profits from Currency Trading

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:26.

If you want to make big profits from currency trading, you need to lock into and follow the longer-term trends.

“The art of contrary? thinking is one of the most powerful tools a trader can use, and is a trait with which all true great traders are familiar with.

What is the Art of Contrary Thinking?

Humphrey Neill’s book, "the art of contrary thinking,? the best known work on the subject, is based on a simple powerful idea that:

Trading Critic's blog | read more >>

Futures Options Trading

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:23.

A forward contract is a customized contract between two parties to buy or sell a specified quantity of a particular commodity at a specified price on a specified future date. Futures are exchange-traded forward contracts, i.e., forward contracts done in organized exchanges like stock or commodity exchanges.

A futures contract is standardized. To be more specific, futures being traded on exchanges have terms standardized by the exchange. The standardized items in any futures contract are: the quantity of the underlying product; quality of the underlying product (not required in financial futures); the date and month of delivery; the units of price quotation (not the price itself) and minimum change in price (tick-size); and the location of settlement.

Trading Critic's blog | read more >>

Futures Trading Software - Choosing a Package For Big Profit Potential!

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:23.

The growth of the Internet has seen traders look more at the use of futures trading software as a way to increase their profit potential.

Today, many vendors are selling futures trading software packages that make 50% annualised gains a reality.

While there are many good systems, there are also many that don’t perform. This article is all about picking the ones that do and making big profits.

Trading Critic's blog | read more >>

How To Invest In Stocks

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:23.

A stock, also referred to as a share, is commonly a share of ownership in a corporation. A stock exchange is a market in which securities are bought and sold, and it is an essential component of a developed capital market. It is indispensable for the proper functioning of corporate enterprise. It brings together large amounts of capital necessary for the progress of a country. It is the citadel of capital and the pivot of money markets.

Trading Critic's blog | read more >>

Energies Seasonal Trends – How To Trade Them For Huge Profits!

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:22.

If you want big profits you need volatile trending markets and energy markets are just such a market.

Seasonal trends allow traders to better isolate high return, low risk trades and are easy to use and take advantage of and can increase your profit potential dramatically.

They are perfect for all traders, even those who have never traded energies before.

Here we will give you the key seasonal for each energy market and the golden rule for trading them. Let’s have a look at the seasonal trends in crude its two by products unleaded gas and heating oil and finally natural gas.

Trading Critic's blog | read more >>

Finding The Best Forex Traders

Posted in Forex Trading, Submitted by Trading Critic on Tue, 2006-05-16 04:21.

The forex trading market has become the biggest financial market in the world today and online currency trading is now one of the fastest growing investments. There are many ways to find information on forex trading and online currency trading but finding the best forex traders can be difficult if you don’t know where to look.

With the growing popularity of forex trading and the information publicly available on the internet finding the best forex traders is no longer as difficult as it may have been. The currency analytical reports are now available to the public online and you can even access live data if you know where to look. Finding the best forex traders has become even easier and more and more people are beginning to reap these profits.

Trading Critic's blog | add new comment | read more >>

Are You Calmed and Relaxed When You Trade?

Posted in Trading Commentary, Submitted by Trading Critic on Tue, 2006-05-16 04:08.

Sometimes I get some really strange questions in the mail. The one that follows is one of them. Although I try to be like "Rambo" when I trade, I haven't in actuality fully achieved "Rambo's" degree of "coolness."

"Joe, is it really true that you are able to stay calm and relaxed when you trade? Are you saying you have never cracked under pressure?"

There have been times when I made mistakes under pressure, but I don’t recall ever cracking under pressure. By that I mean I didn't panic, but I have come close. Being short soybeans when Chernobyl blew up was probably the closest. I've made huge errors in conduct - once I sat and lost $45,000 in a matter of minutes because I tried trading while teaching a student at the same time. Lesson learned: Never trade and teach at the same time. Stay focused on one or the other. I once woke up to a margin call of $21,000+, but it turned out in my favor. I had erroneously left a 5-lot in the market overnight - thinking I was flat - the result of sloppy housekeeping.

Trading Critic's blog | add new comment | read more >>