Ground Rules for Speculators Using Hedging Techniques As a Risk Management Strategy
While hedging techniques are great, there are no guarantees when it comes to trading. These techniques are designed to help minimize your losses. At the same time, you must have realistic expectations of what they can do for you.
Who Is Called a Speculator?
One definition of a speculator is someone who wants to profit from the price discrepancy between hedgers. Speculators fall into two categories: large speculators and small speculators.
Analyzing Your Opponents and the Market
There can be no doubt that an extraordinary number of first-time e-mini traders are finished with trading within three months. To be sure, various statistics put the failure rate upward of 90%. Surely there must be some reason for this extraordinary rate of failure.Futures predate stocks by several thousand years. One of the earliest recognized futures transactions was the Chinese rice futures of 6,000 years ago. In the seventeenth century, Japan instituted the first organized rice futures exchange. Japanese merchants would store rice in warehouses for future use. Warehouse holders would in turn sell receipts against the stored rice.
Convert a Collar Trade Into Ratio Backspread
There are three potential scenarios for the collar position here: We can hold it until expiration, we can walk away from the trade once our target price has been hit, or we can convert it. In the preceding example we converted the collar trade into a bull call spread. In this example we will convert the collar into a ratio spread, also known as a call backspread.
Spread Trading: Great Opportunities For Traders
If it can be said that one concept that has influenced every seasoned trader’s idea of what risk management can be like, that concept would be spread trading. The idea of seasonal spread trading has been around since the inception of the commodities exchanges in the United States. Based on the dual impact of storage and planting, seasonal spread trading has greatly influenced the way all types of traders, retail and commercial, interact with various commodities.
Preparing to Speculate
There are a great number of speculators turned traders. They purchase courses and attend seminars, and they all maintain fantasies of becoming the next George Soros or the next “oracle of Omaha,” Warren Buffett. While these dreams are important to have, they also become an impediment to traders forming their own opinion and view of the markets. It also lays the foundation for reckless behavior and inability to grind it out.
Indonesian High Yield Bond Market Structure and Opportunities
Global investor demand for Indonesian corporate paper increased substantially in 2012 and 2013 after the rating upgrade of Indonesia to investment grade early last year and investors looking for exposure in the country’s strong growth story (Indonesia’s GDP growth averaged above 6.0% over the last five years). Majority of the global bonds issued are USD-denominated and are non-investment grade due to the sovereign rating cap (Baa3/BB+/BBB-).
Understanding Perpetual Bonds
Perpetual securities are fixed income securities with no fixed maturity date. Perpetual issuances are done by credits from the investment grade space, preferably with Sovereign-Owned Entity (SOE) background. Issuances from stable sectors get good reception from investors.
How to Start Your Day Trading Business Part 3
In this article, we discuss the importance of practicing your trading before risking capital. Do everything you can to avoid making costly mistakes.
How to Start Your Day Trading Business – Part 2
Let’s recap the first article quickly. In the first article I showed you how important it is for you to have a trading plan or methodology that is simple to follow and I gave you the reasons why. Have you started to research some different trading methods, perhaps started to implement some into any trading you are currently doing? Remember that power comes from taking action, so start thinking about the kind of person you are and the kind of person you will be as a trader and fit a methodology in with that personality.
How to Start Your Day Trading Business Part 1
How many times have you purchased something that you were sure would help you to achieve your dreams and it only collected dust on the shelf? I don’t believe that knowledge is power as the old saying would have you believe. I believe that knowledge coupled with action is true power, so I want to make a deal with you right here and now. I promise to impart as much wisdom as I can in these short articles but you must promise to read them all, take notes and practice to become the next great trader.
Binary Options Trading: What It’s All About
Binary options are an easy and effective way to invest money in stocks and make a little extra on the side, sometimes in less than 60 minutes. Binary means ‘two’, and in this type of trading there can be only two results: either the asset invested in will rise or drop in value.