Trading Videolica

There is a general belief among most investors that markets are controlled by operators and it is no place for small investors. It is believed that the operators enriched themselves at the cost of small investors. Two scams of 1992 and 2002 had certain operators at the center of the storm. There were other star players in the market also in the past that had a big role to play in the market movements. Let us examine the validity of the statement that Stock Markets are run by operators.

An operator is a person who is supposed to drive the market price of a particular share that is he decides what should be the pricing of the share and whether it should go up or down. It is also believed that operators in association with the management of the company first acquire certain stocks in the market and subsequently through rumors and such other communication mechanism create a mass interest in the share. Subsequently once the general public starts believing in the companys prosperity the operators sells the shares and makes handsome profits. Some operators also use circuit mechanism of stock exchanges to hike the price. The circuit mechanism allows the operator to put an order at a price which is 3 to 8% above the previous days closing. Once the share hits upper circuit there are very few sellers in the market since they believe that if the share has hit upper circuit it is likely to go up further. This is the modus operandi of an operator. For an operator to be successful some factors are very
important. Such as connivance with the management, low capital base of the company so that manipulation can be done with very little capital and a mass following.

Is manipulation possible in high volume shares? Let us now look at the trading statistics reported by stock exchanges (data of a particular date). Top 30 scripts i.e. 10 in each group, account for 41% of turnover in NSE and 37% of the turnover in BSE. Both the Exchanges put together this translates in to a value of about 4100 crores on a daily basis. As per the market share reported of brokers by NSE (NSE Bulletin) top 10 trading members account for just 24% of the market share i.e. on an average each broker would have about 2.4% of the market across all company shares traded by the company. Hence, the dominance that a single broker can have on the volumes in the market is minimal in highly traded scrips.

Then we move to low value high volume traded scrips. As per the data is provided by newspapers separately on Quotations page, the aggregate value of shares traded in this category on a particular date was studied. The turnover for BSE in such scrips was Rs.34,03,470 i.e. .01% of total turnover and for NSE is Rs.20,28,050 i.e. 0.003% and in terms of number of shares traded it is 1.5 % in case of BSE and in case of NSE 0.45%. This is one area where low funds can help to move the prices and give a false sense of liquidity. Hence investors are advised to refrain from investing in scrip just because it is low value; the merit of the share should be looked into before making the investments.

The Stock exchanges have a system of guiding the investors on stock selection by way of classifying the companies into various groups. A group stocks are highly liquid and good performing companies. B1 group are again good performing companies with lesser liquidity then A group stocks. B2 are stocks that have low capital bases and less liquid. Companies that do not adhere to Listing agreement are categorized as Z group. These companies do not attend to investor complaints and fail to file various investor related information with the stock exchange such as quarterly working, book closure dates etc. Shares which have concentrated activity and unusual price movements are categorized in T 2 T or trade for trade settlement, ie every sale and purchase must result in delivery and positions cannot be squared off during the day. This classification should be kept in mind while selecting a company for investment. Stock exchanges also verify the news items appearing in leading

newspapers and get companies to clarify on rumours. This information is also of vital importance since operators and company managements at times plant false stories in newspaper to mislead the public.

Special laws have been put in place to act as deterrent to such manipulation. The Insider Trading Regulations and Fraudulent and Unfair Trade Practices regulations are the tools available to SEBI to taken action against those manipulating the markets. The punishment is maximum penalty of Rs. 25 crores and imprisonment. Both these laws have been enacted in early 2000. Hence their effectiveness will be proved only with efflux of time. Till the enactment of these laws the prosecution of persons indulging in market manipulation had to be tried under the general legal system, the delays in the same are not unknown to us.

We always blame the regulators, brokers and exchanges if scams happen in markets. However the menace of operators will go only if we stop following their leads in the market. Tips given by operators are widely followed, and so long as you make money on these tips we do not blame anyone. However once the operator weakens then there is fall in prices and the blame game starts. Operators are creations of society and the greed inherent in all of us. Easy money by riding the operators tips is a strong attraction. Scams bring down the prices of not only the shares which were manipulated by the operators but also all other fundamentally good shares also held by us. Mass following that the operators thrives on would be absent if we refrain from buying those shares that are remotely associated with any operator. Reporting wrongful activities of company managements, dabba traders and other market participants will help the regulator in directing their efforts on the wrong doers. Remember, being a spectator to a wrongdoing and not reporting the same is as bad as committing the crime.

The online market is now slowly proving to be one of the most popular choices to invest in. With considerable knowledge about the markets and a good practical strategy, you can invest a small amount and earn a fortune. To earn a profitable return, you must know a few valuable online trading secrets. In the list below, we give you a few tips that will help you make the profit you desire with little effort.

1. Understand And Recognize Favorable Market Trends

In order to get high profits, you must first understand the market conditions of online trading. Since the market it rarely stable, understanding and recognizing the trends will help you make a decision on when it is the right time to invest. One suggestion is to look for certain scenarios where the supply and demand ratio isout of all proportion. For example, if there are excessive buyers and the supply is low, there is a likelihood that the prices will go higher. Likewise, this also works vice versa. Identifying these turning points will help you understand the best time to invest.

2. Set Your Profit Target

There are several risks to online trading. This is includes over investing your profits for a greed of more. When investing for a long term profit, you must decide how much profit is acceptable to you as well as the right time to stop investing if the tide turns against you. This allows you to limit your investments, thus avoiding potential loss in the long run. Always ensure that you follow the risk reward ration of at least 3:1 before you invest, allowing you lose small amounts but yet earn big returns. With a strong market, wherein you can predict a high returns, you can raise the risk reward ratio to 5: 1 or even higher.

3. Be Patient And Disciplined During All Trading Transactions

As a trader, you must learn to be well disciplined and patient before you make any transactions. While trading on an everyday basis will give you small yet profitable returns on a daily basis, but when it comes to a big investment, you might not have sufficient funds. Throughout the trading process, ensure that you have fixed criterias and rates, ensuring you get the returns you require when trading. Avoid indulging into random investment options just because they seem to provide a profitable return. Also avoid indulging in investing, just for the sake of doing something instead of waiting for the right choice. Impulsive behavior as in such cases will lead to considerable loss while also demotivating you. Greed can keep you in a position for too long and fear can cause you to bail out too soon. Remember, always plan your trading and then trade your plans.

There are legions of dedicated Market Profile users who are hopelessly dedicated to this market-driven information tool. Though I dont usually write about Market Profile (MP), for reasons I dont completely understand, MP is a great tool to understand the overall structure during the course of the trading day. To clarify, I am a scalper so I dont utilize MP in the longer term, but there are great applications using the system if your trading horizon is longer than 15 minutes.

What is Market Profile about?

The system has its roots at the Chicago Board of Trade (CBOT) and was initially developed by J. Peter Steidlmayer and was released in various incarnations in 1985 and later years. The purpose of Steidlmayers research was to gauge market value as it develops throughout the course of the trading day. In strict MP theory, various market participants are identified; locals, commercials, members filling orders for other members, and members filling orders for the public. Recent MP theory can be more easily understood in a popular book by James F. Dalton, Eric T. Jones and Robert B. Dalton entitled Mind Over Markets, 2013 edition. While the book is certainly not easy reading, careful study of the book can be very helpful in understanding daily market structure and helps identify the participants driving e-mini trading price movement.

So who cares who is driving market movement and of what use is this knowledge?

As I mentioned earlier, I dont specifically initiate trades based on Market Profile, but use the profile to identify specific areas that potential e-mini trading may develop. Areas like values areas, developing value areas, auction actions and reactions, and bracketed markets are all very useful in alerting e-mini trading opportunities to traders. At this point you might wonder, if I dont use the system to identify specific trading opportunities, how do I integrate MP into my trading system?

Order flow, is the wild card in this equation. I currently use tradetheeminis and sceeto order systems. If I can determine specific areas, using the MP system, where trades are likely to develop, then order flow can pinpoint (in real time) the direction of trade at these general areas where trades can be initiated with startling accuracy. Further, by using confirming real time indicators, like tape reading and analysis, in tandem with MP and order flow, you can initiate some extremely accurate trade set-ups.

Because of the complexity of understanding MP theory and applying it to your trading it is often glossed over as being too technical or time consuming for the retail e-mini trader. I can tell you that time spent understanding market structure, order flow, tape reading, and correlated markets is well spent and will greatly increase your trading accuracy. Is it tough stuff? Yep, it isnt exactly a walk down in the park when you embark on the task of integrating these systems together; but the rewards are manifold.

The trading system I have described is in sharp contrast to the status quo of correlating lagging indicators and hope the market continues in the direction of your tardy entry trade point. I dont fully understand the current crop of retail traders lack of acceptance of the real-time indicators and data that are emerging in recent years. I have noticed a great number of traders who desire to sit in a trading room and take calls from a lead trader. The key give away is wanting to see some sort of brokerage statement to decide whether a room is a good one. What ever happened to learning to trade without specific calls in a trading room? In my opinion, a trading room should be a laboratory where traders interact and educate themselves, with the ultimate goal of trading independence. Is it laziness on the part of retail traders? I cant tell you how many traders expect to sit in a trading room and absorb, through osmosis, what is transpiring in the market, but the numbers of these types of inquiries are a daily part of my trading life. As the saying goes, give a man a fish and he will be satisfied today, teach a man to fish and he will be satisfied for life. I am interested in education and technique, not spitting out trades that participants blindly initiate. Its no way to run a business, and your personal trading is a business. Taking blind trade calls is like owning an auto parts store and not knowing the function of a brake rotor or alternator. Like I said, its no way to run a business.

In summary, I urge you to learn and master the techniques of real time trading, as the tools to accomplish this end are emerging and being refined on a daily basis. The lack of more widespread acceptance of these tools, which were once the exclusive domain of professional and institutional traders, continues to even the playing field against the once dominant role large trading firms enjoyed.

In simplistic terms, an automated or mechanical trading system is a set of specific rules which when applied to the markets, signal entry and exit points automatically. The rules can consist of instructions with regard to the position of say moving averages, oscillators, or some other technical indicator, or maybe specific price patterns, or a markets proximity to certain key price levels, Etc. Most often several of the above are combines in order to create a full set of rules. As a simple example, if a 20 period moving average crosses over a 50 period moving average and the stochastic indicator is less than 20, then buy.

Once your list of rules are coded into a full system, you instruct your trading platform to trade the system on an automated basis. The system will from this point on, automatically place all of the buy / sell orders into the markets.

Automated trading systems take all of the guesswork, personal interpretation, gut feeling, instinct and emotions out of trading, thus eliminating many of the knee jerk reactions traders might find themselves making due to the fear and greed emotions that are part and parcel of non automated trading. Most Systems fall into one of three categories, either they are designed to trade with the trend, against the trend, or on a breakout.

Trend Following means that if the market is moving strongly in a particular direction, then you look for a good place to enter, in the direction of the current strong movement. Counter Trend or Fading means that if the market is moving in a particular direction, then you look for a good place to enter, as you predict that the strong move is about to end, i.e. the market could be overbought or approaching strong resistance. Breakout trades look for prices to move out beyond a certain range, i.e. if the market trades above the highest high of the last 20 bars, then buy. Or positions are taken if prices are breaking out of a particular chart formation, like a triangle for instance.

They can be designed to day trade, say on 1, 3, 5 or 15 minute charts, swing trade on say 60 minute or daily based charts, or trade long term on say daily or weekly based charts.

Day Trading is where traders look to make quick profits from the small market moves that occur during the day. They never hold positions overnight. Swing or Short Term Trading is where traders take a position in the market and look to hold this position for several days in order to make a profit from short term market movements. Long Term Trading is where traders take a position in the market and look to hold it for weeks, months or maybe even years.

Other aspects that are included in the development of a trading system should be risk management, i.e. using a stop loss, trade management, i.e. using a profit target or trailing stop and money management, i.e. how many contracts to trade in relation to the account size.

A person who wishes to trade the markets with an automated trading system has 3 choices, either develop a trading system themselves, have an expert code the system for them, or purchase an existing trading system. Developing a profitable trading system yourself is by no means an easy task. It requires a great deal of understanding with regard to the indicators, the various parameters and how they all interact with each other.

This article describes the secrets on how to create true personal wealth from safe currency trading online from your home or office.

What is currency trading?

How can you get rich and powerful from currency trading?

Who can do currency trading?

Can you do currency trading from any country of the world?

Until six years ago, when the United States Congress passed a law and made it possible for the small investors and average citizen to participate in this currency day trading, only large banks, financial institutions, millionaires and billionaires were doing currency trading.

Currency day trading is the best kept -Secret- of the rich and powerful, international bankers, the money elite, who own and control all the banks, companies, corporations and foundations in the world.

Currency online trading is when you buy and sell the foreign currencies of different countries online.

Through currency trading, you can put your money to work for you like millionaires and billionaires do, instead of you working for your money.

There is no large investment, hard work, technical training or big -risk-.

Currency day trading investment enables you to use $1 to control an investment worth $200, and $500 to control $100,000 and $1000 to control $200,000 and $5000 to control $1,000,000 worth of investment.

Currency trading is the most profitable and attractive internet investing opportunity because you can do it from home or office and from any country in the world.

In currency online trading, you don’t need to do any marketing or selling or internet promotion to succeed.

In currency trading, you don’t need to spend thousands of dollars to do any internet promotion.

In currency trading, you don’t need any stocks or warehousing.

In currency online trading, all that you’ve to do is open an account with one of the brokers with as little as $300 or $2000.

Then follow simple instructions to buy and sell the currencies.

When the price of the currency is low, you buy.

In a few seconds or minutes, the price may go up, and you may sell it and make a profit.

By doing so, in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!

And get this:

You don’t even have to be stuck sitting behind your computer buying and selling these foreign currencies.

You can enter all your buy trades and specify the sell prices you desire and then log off.

Whenever the values of these foreign currencies rise and your selling prices reach, the currencies will be automatically sold for you and you make money!

You can put it into an auto-pilot and forget it, and it will keep generating fast easy cash for you daily, 365 days in the year like an -ATM- machine.

You can do currency trading and at the same time keep your day job, because in currency trading, there is no work to do.

In the future when you have made hundreds of thousands of dollars, you may then quit your job and just keep doing currency trading forever and go on permanent vacation!

To understand the beauty of currency trading, picture this:

In the morning, you get up from sleep at 6 am.

You go to your bathroom and have your shower.

At 7am, you hurry and eat your breakfast.

At 7.20 am, you login into your currency trading account on the internet and spend 10 minutes to buy about 3 or 4 different currencies, [for example British Pound, Euro, CHF (Swiss Currency) and Yen (Japanese currency).]

You can specify the price that you wish to sell each currency.

Then you can log off.

By 9 am, you’re at work in your office or business place.

You do your job as usual and by 5 pm, you’re finished and heading home.

When you get back home around 6.30 pm, you login into your currency trading account to see how much money you’ve made.

Holy Molly, there in your account it says you have made $750!

-Is this for real?-, you wonder-

Yes, it is. (Your eyes are not deceiving you-)

$750 in a day for just clicking your mouse twice and doing no work?

(Whereas at your job, you work 8 hrs, but make only probably $150)

This is how easy it is to make money from currency trading.

But before you use real money to open a live currency trading account, you have to open a free trial (demo) account (currency simulating trading) and practice first, to understand how it works and to acquire the right skills.

This free demo (trial) currency trading account (currency simulation trading) will help you to reduce a lot of risks that can lead to a loss.

In currency trading, you can choose how much money to invest, how much money to make and when to make it.

You may make money daily, 365 days all year from currency trading.

Your computer can be transformed into an -ATM- machine that cranks out cash for you daily (without large investment or hassles) from currency trading.

In currency day trading, you can choose what type of risk you can manage, when to invest and when not to invest.

In currency trading, you’re the boss. You may do as you please.

When currency trading is compared to other investment programs such as stock trading, bond trading, mutual funds, real estate and regular business, it is evident that currency trading is the fastest and greatest way to make money in the world.

Currency trading is a 2.5 trillion dollars daily business and it is larger than all the stock trading in the world combined.

These are some of the reasons why I believe that currency trading is the best online investing opportunity.

Perhaps from reading this article you’ll now come to know why currency trading is the secret behind the greatest wealth on earth and why it has been kept hidden from the average people of the world and therefore little known to the masses.

No matter who you are, be it a salesmen, doctors, office clerks, accountants, carpenters, actors, stockbrokers, small business owners, policemen, firemen, musicians, soldiers, housewives, technicians, attorneys, nurses, students, traders, cab drivers, engineers, you can get rich from currency trading.

No matter which country that you come from, such as USA, Canada, Belgium, Denmark, Sweden, Finland, Germany, France, United Kingdom, Switzerland, Norway, Italy, Greece, Spain, Mexico, Peru, Venezuela, Ghana, South Africa, Kenya, Egypt, Israel, Turkey, China, India, Japan, Australia, New Zealand… you can create true personal wealth and success from doing currency trading.

Creating personal wealth on the internet from your home or office has never been this sinfully easy. (https://www.mscsrrr.com)

May these currency trading insights open your eyes to the possibility of infinite wealth and success that can be yours from currency trading.

Please feel free to print or publish this article anywhere and read and also send to your friends and well wishers and please preserve the author’s resource box below.

Warmly,

Benney Ikokwu