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Useful information for novice traders in the US stock market. Reviews, articles and videos about the leading American stock exchanges

Exclusive interview: Best Professional Trader Smita Sadana

I read an interesting interview in Wall St. Cheat Sheet in Smita Sadana. Decided it will be useful to read many, the interview is long and translated for everyone through an automatic translator, so everyone can read it in Russian. Original : wallstcheatsheet.com/?p = 1151 At the cinema, Squatting Tiger, Hidden Dragon, actress Michelle Yeoh plays the main warrior of the ancient martial arts. At the end of the film, she confronts her protégé and instructs her with the ultimate secret to success.: stay true to yourself. Smith Sedan's professional trader offers us the same sage wisdom for investing and trading. Smita delivered, 43 % accounted for the annual benefit over the past 11 years. During the same period, the index S&P500 virtually unchanged. Her accomplishments make her one of the greatest individual traders - and arguably the best female trader - on Wall Street.. My interview with Smita was like experiencing the passage from Jack Schwauger's classic book market trading Wizards. Smita enlightened me in dealing with emotions, risk management, and the art of discipline.

Market “guru”

Market “guru” appeared from that very moment, how people faced the market. IN 1841 the classic book on market manias, "Extraordinarily Popular Misconceptions and Crowd Madness", was published in England. It is still being republished today.. Charles McKay describes tulip mania in it, boom in the South Seas in England and other massive manias. Human nature changes slowly, and today new manias, including the mania to follow “guru”, continue to reach markets.

How to trade trends

There are four basic principles, which should be part of any trading strategy. This: Trade Trends Reduce Losses Give Profits And Manage Risk. You must be convinced, that your trading strategy includes all these principles necessary for success. Trading trends refers to the definition of the rules for opening positions. This requirement means, that you are obliged to constantly open up in the direction of the existing price movement.

VIX fear index – Volatility of the Chicago Option Exchange

  VIX fear index – shows the state of the market, his direction and mood. The regularity of the indicator is as follows, what when the market falls, volatility index is growing, and when the market grows, volatility index is decreasing. VIX Index – ticker symbol for the Chicago Option Exchange Volatility Index, popular measure of implied instability S&P 500 index options. High value corresponds to a more volatile market and therefore more expensive options, which can be used, to pay the risk of volatility. If investors see high risks of price changes, they will demand, for a large premium to insure against such a change, selling variants. Often called the Fear Index, this represents one measure of market expectations for volatility over the next 30 day period.

CIT Group: for herself

Despite, that CIT Group Inc, on the verge of bankruptcy, could not agree with the Government to provide her with assistance, it is trying to ensure its survival at the expense of the private sector. If the credit institution fails to receive the necessary funds in the near future, it may be bankrupt. According to the WSJ, a bankruptcy petition can be filed by the bank in federal court as early as Friday.

New York Stock Exchange Investors and Traders Club

Created a new LJ community for people associated with the New York Stock Exchange to share their trading experience on it, ideas and news. Anyone can write their material in it, ask a question of interest and find an answer to it. We no longer have to search for information all over the Internet, everything you need to trade on the stock exchange will be in 1 place . The group is brand new, I'm waiting for new active participants and a little PR from you, but most importantly active discussion of new topics and issues. New York Stock Exchange Investors and Traders Club

Psychological preparation for trading

The mental attitude before trading is very important for profitable trading.. When you are in a good mood and feeling well, your results will be very good even in a bad market., but if something bothers you or feels bad, tired or whatever, even in a good market, there are many chances to end the day in the red. You should always tune in before trading, throwing everything out of your head.. So that nothing bothers you, it is necessary to form the right attitude to the market. The market doesn't owe anyone anything! It's foolish to think, if i bought this share, he MUST grow. She SHOULD NOTHING. You only have probabilities. If events do not develop according to your scenario, immediately exit the deal. No need to get attached to what you want. It is necessary to adequately and soberly assess the situation. It's impossible to be right all the time.. We are all wrong. Our calculations are not always correct. Know where you will stay. Never lose control of a situation, create rules. Treat as profitable, as well as unprofitable transactions. Profit and loss is an integral part of our work. And the only task is to have more profitable trades. Move away emotionally from every trade and every day. What matters is the result at the end of the month.

Great financial scandals

The case of Bernard Madoff was a real bombshell for the media. The biggest financial scandal in recent years. Person, who was fully trusted, in fact, turned out to be an ordinary fraudster. Truth, the word "ordinary" is not quite right here. Though, Madoff's scams amount to about 65 billion dollars. However, Madoff is not alone. There are many examples of financial fraud in history. How large, talked about all over the world, and very small, which have not even outgrown the local level. Today we will talk about the largest financial fraud in history.. Charles Ponzi God, when it became known to the public: about 1920 Approximate losses: 20 million dollars (adjust for time, then it was a lot)

Open Market Committee (FOMC)

Open market operations are the most important instrument of monetary policy. Open Market Committee ( FOMC ) deals with the purchase and sale of federal debt and US Treasury securities. Treasury Securities are used to fund federal spending and are issued in negotiable and non-negotiable forms. Handled papers include: treasury bills (treasury bills) with maturity 13, 26, 52 weeks and denomination from 10 thousand. Dollars; treasury bonds (treasury bonds) denomination over 1 thousand. Dollars, which can be both medium-term, as well as long-term. Scheduled FOMC meetings are held eight times a year, at them the members of the Committee discuss the current economic situation, possible options for its development, direction of monetary policy. At least twice a year, the Committee also votes on the areas of a long-term strategy in relation to the most important indicators of the money supply and public debt..

An interesting statement from an analyst

Analyst WSJ: Traders Kill Undervalued Investment Strategy Long Before 1 June, dates, to which General Motors was officially declared bankrupt, it became clear, that nothing can save the American auto giant. Nevertheless, the company's shares all this time were traded in the area $1 for pike. Wall Street Journal Analyst David Weidner (David Weidner) wonders, why this happened and GM securities did not lose all their value.

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