Trading signals from Mars

System Traders Club members who have read our book or visited some of our lectures, will recognize this title, one of our favorite retail stories. In a recent marketing campaign, INO.com, selling a video of our presentation at the recent annual conference of the TAG, showed the headline of this story, and we got a lot of questions from interested, what's the matter here. The title was: "Find out how trader made a fortune in the markets with the help of a bottle of cola and signals from Mars.
Many of our members have never heard this story. This is a true story, which contains a very valuable lesson trading affect my trade for many years. We decided that the story could be an interesting topic for this newsletter. That history itself:

Let's go crazy and think about the bull market

Ultimately, the stock market will continue its long-term aptrend. For option traders who like to trade with the trend, start a new life. But while still in the game with variability and circulation. Collie, which you bought yesterday, looked so good for only a few hours, but then the market collapsed. You sold our position, only to immediately see the market turn and a new move up. You run the risk and sell a few bull put spreads, and the market falls again. You decide to buy the short chains of spread of loss and, of course, if the market turns up again. Losses from all sides. This recently happened to me. It is a tough market, to say the least! The days when you can just buy any call and see how the market rises higher and higher, have passed.
We are in a phase of the market, where everything is so volatile, that you should take your profits as long as it is. This means that you have to be glued to the screen, as profits can happen at any time and immediately disappear. If you can not watch the market all day, or wait on the sidelines, or concentrate on long-term strategies. I had a lot of positions over the past few weeks, when I could take them a small profit, but greedy. Some of them have now turned into losing. Since I am selling only the spread option, I know exactly what may be my maximum loss. Aptrend not yet formed, so you have to trade turns, if you can.

Research into the physics of the market

Swing trader takes a serious challenge, solving puzzles of market movements. While most of us recognize the inconsistency and its resolution within the price chart, we are sometimes unable to use this reliable mechanics in our trading strategies. Fortunately, the repetitive elements of the graphic landscape offer a powerful context to understand and manage the vital aspects of the development trend. After repeating the dynamics of crowd behavior, price action tends to follow the classic rules, which modern scholars have applied to our physical universe.
Apparently this is not random in nature. Emotion and mathematics continuously interact, if a Fibonacci levels, which every day we see on the graphs. These relationships provide an exciting opportunity to see a clear order in the usual price movement. Convergence Divergence between these two forces in his heart helps us to understand and trade market fluctuations. For example, we can look at the graph model of a reversal or break, making it possible, but we also observe the ticker tape to measure the emotional intensity of the crowd, and to predict when it will burn down or switch the speed.

Oil - an instrument of the commodity market

With rising oil prices, the commodity market has become the most attractive market for financial investors. In the world of trading financial instruments and a variety of petroleum products is relevant because of its value and volatility allows investors to make money even at the minimum market fluctuations.
Futures for crude oil increased significantly in volume, which respectively attracted many new investors.
Grades of oil in the world very much. Almost every oil producing country supplying the world market several varieties of oil. Chemical composition of oil differs from well to well and to facilitate exports, were invented by some standard varieties of oil. For Russia, the Urals, and this Siberian Light. In the UK - Brent, Norway - Statfjord, Iraq - Kirkuk, in the U.S. - Light Sweet. It often happens that the country produces two grades of oil - light and heavy. For example, in Iran is Iran Light and Iran Heavy. In Russia, light crude - a Siberian Light, and the Urals - hard. The price of crude oil is considered on its cost per barrel.

Production, reserves and oil consumption

Oil - the blood of modern economies. Every year, it required more and more, and it costs more expensive. She - a symbol of power, wealth, war, corruption, political intrigue and economic fears. The World's proven oil reserves

The World's proven oil reserves are concentrated in the Middle East. In the North Sea oil less, and produce it more expensive. Oil industry workers are pinning their hopes on oil in Africa and Latin America, which until now has been to produce unprofitable. In Russia - 6% of world reserves, but additional exploration depths may lead to an increase in reserves by 20%. Oil production in the world

How does the oil market?

How to sell oil?

Crude oil - the most sold raw materials in the world. The largest stock exchange in which contracts for the supply of oil - London, New York and Singapore. However, contracts for the supply of petroleum products are traded worldwide.

The world's oil is not uniform in quality and, consequently, price. Prices depend on the density of paraffin and various additives, admixture of oil. The standard for oil prices is a class "Brent", similar in composition to that produced in the North Sea, and contracts for the supply of which are on the London commodities exchange. That is the price of this sort usually indicate the media.

International gold market GOLD

The structure of the international liquid resources include: gold, foreign currency reserve position of the international Monetary Fund, SDR and ECU.

      The volume of gold resources, which are stored in the central bank and fiscal authorities of the country, supplemented by holdings of foreign exchange accounts of foreign banks and international and regional monetary and financial institutions, designed for International Settlements. The centerpiece of the international liquidity owned gold and resources of States. In the category of foreign exchange resources leading place belongs to the modern reserve currencies, which are freely convertible - without any restrictions convertible foreign currencies.

Gold sinusoid

As is known, in recent years, gold has largely lost its main purpose of equivalent wealth. In particular, the central banks of many countries now prefer to transfer gold reserves in sovereign bonds. However, paper trading, but the drop in stock market prices, a weak dollar, terrorism and war have raised interest in the precious metal.
Gold changing to paper Mankind has a very long time gold as decoration and is likely to be used for a long time. Also, gold has long played an important role in the global economy - with different people, it served as the modern equivalent of money. Later, with the advent of money, people used gold as an object of savings. States created the gold reserves. Gradually, however, the value of gold has fallen markedly. Over the last decade of XX century, its price has fallen by 29%, while the stock index Dow Jones Industrial Average rose by 439%. But with the advent of the new millennium, interest in gold has risen. Consequently, the price of metal goes up. In the past year has been the largest since 1979, an increase in the value of gold, which is associated with falling stock market prices, weak dollar, terrorism, and the expectation of war in Iraq. In this environment, investors are hoping not so much to get return on invested capital as a return of capital itself. Although the rank and file players interested in gold, their role in shaping its prices low. In this market there is much more significant players. For example, hedge funds, whose role in raising the price of "gold" futures is considered the primary.

Тhe victorious march of the Golden Bull

Since 1999, the price of gold almost constantly. Over the past two years it has gone up by 27%. Only in December 2002, the increase was 9%. But who can answer the question: what is the real price of gold, and what surprises can be expected from its motion in the near future? Analysts disagree on this.
Roaring Eighties If you make a small excursion into history and see what world events were accompanied by jumps in gold prices over the past twenty years, you get an interesting picture. Himself the dramatic upsurge daily gold price at auction in London on 21 January 1980, when the price of an ounce was $ 850, was preceded by entering the Soviet Union invasion of Afghanistan in December 1979 and the failure of Congress to ratify the SALT-2 treaty. Do not withdraw from and approved by the U.S. Congress act on monetary control and the deregulation of deposit takers. He expanded the powers of banks, as well as intensified competition in the securities market, which brought the banks more money than deposits. Throughout the 1980 year the U.S. was shaken by a wave of inflation. The situation in the gold market has stabilized until the end of January 1981 And after Iran released the American hostages taken during the Islamic Revolution, the gold price dropped and averaged $ 459.71 per ounce. Strangely enough, but "Black Monday" on Oct. 19, 1987, when the Dow Jones index in one day fell 508.32 points, has not led the U.S. into recession, the strength is comparable with the fall of 1929 Investors prefer not to seek refuge in gold, but in government bonds.

What is options trading?

   

Option (option) - in translation from English means choice. This name speaks volumes about the superior quality of option contracts: the trader has the broadest possible definition of the specific conditions of the option, the most satisfying its interests.
Options trading involves a work contract, which provide a fixed income with strictly limited risk, determined by the trader. This is one of the main advantages of option trading, compared with spot trading in the currency market, in which a trader can not be sure how far the rate will go against his position.

Pitfalls autocredit

Credit a trick! ... The car no longer a luxury, any bank will give you pleasure for its purchase loan. However, along with a loan you yourself up for additional costs and unnecessary headaches. What? At least prepare for this! 

My friend named Alice decided to buy in the cabin Avtomir »Hundai Accent for $ 13,470. Such money had not had, and she decided to take one of the largest Russian banks. There, she was offered a loan without a down payment for three years under 10,5% per annum in foreign currency. Alice, these conditions are quite happy - quite frankly, not the most expensive (though not the cheapest) in the market of credit. Received from the bank good friend rushed execute all documents and then learned about the details that were previously concealed from her. 

Do not give credit? Helps leasing

Extension - headache of small businesses. The big companies "break" a loan to buy equipment may be difficult, but for "kids" - even more so. After all, they usually do not have expensive equipment that can be presented to the bank as collateral. In such a situation can help leasing.
Its essence is that property and equipment do not need to buy immediately. For several years, they can be used on a leasehold basis, and only then redeem at the residual price. The first leasing company appeared on Mar. 20, 1855 in England. Berminghem Wagon Company leased for five - eight years of trains to transport coal. Transport companies willing to use this offer. After the end of the lease locomotives and wagons moved into their property.

10 tips for obtaining a consumer credit

Journal of Finance publishes 10 ways in which it is recommended to draw the attention of everyone who wishes to obtain consumer credit.
1. Calculate the forces.
Before a final decision on buying goods on credit, you must ensure that the lending will not be a burden on the family budget. Typically, banks are taking a positive decision on granting a loan, if the monthly payment on account of repayment does not exceed 40-50% of the income of the borrower. But is it worth buying in order to give each month for her half the wage? Optimally, if a month you will be given to the bank no more than 20-25% of their income.
2. PLEASE in different banks in parallel.
Submit applications to several lenders, as it your chances of getting a loan will increase substantially. If a positive decision will be different banks, you can choose the best conditions.

How to defer payments on the loan

Expenditure on New Year's visit, feast and gifts can sometimes jeopardize the planned repayment of the loan. What if the money to make regular loan payments are simply not enough? - You can ask the bank "credit Holidays - Lodging delay payment of the loan (for a year or two -: (). 



Dentist Anton Mikhailichenko long wanted to take a loan to buy a car. In the cabin, where he decided to buy a car, told him about the campaign, which runs in conjunction with one of the major banks. She concluded that the processing of a loan to the borrower to take first six months does not repay the loan. The proposal seemed to Anton interesting, and he agreed. Already signed all the necessary papers, "happy" car owner learned that he was released only on payment of the loan principal, rather than the full amount of payment (with interest). Instead of the $ 550 a month for six months, Anton pay the bank for only $ 216.  

New financial pyramid - credit!

In Ukraine, "has gone" Czech financial company CFU Service, which is going to issue loans in the system of multilevel marketing (MLM). Czechs offer rate at 6-12% pa in UAH and will accept applications for credit by SMS. "Money" went to learn credit terms and returned to the editor in complete shock.

According to information received on the website of CFU Service, this structure is already working in several Eastern European countries - the Czech Republic, Poland and Hungary. The company itself says nothing about their work no worse than partisan.

One managed to find out exactly: specificity of the Czech creditors is that the company will not open their offices in those countries where the market goes. She has only one office in the Czech Republic, and through which decisions are made about granting loans. In all other countries, the lender uses the principle of MLM (multilevel marketing), that is through building a network of financial consultants. They must find potential borrowers.