Trading crude oil can be very difficult and there are many factors that affect its price.

Oil is currently drifting higher day by day. Although there has been a recent pull back in line with equity markets from the highs, we are still far higher now than we were 12 months ago.

For all of the talk about variation from dependence on oil, the fact remains that a huge percentage of our energy usage still relies on crude oil. While there are other alternatives to petrol and diesel we are stuck with the historical infrastructure built around these, as anyone who has searched for an LPG or bio-fuel garage will testify.

The daily markets are providing some interesting opportunities for those who are able to buy and sell crude oil. For the Nymex US Oil futures contract, a recent attempted rally ran into quicksand far faster than the bulls might have expected.

The moves higher are still very aggressive but we are now running into general-drifting-lower periods when not much is going on. This is in stark contrast to earlier trading sessions which saw continued upside pressure throughout.

Whisper it quietly but there is a certain amount of trepidation. If we cannot get back onto the front foot soon, the current over-supply of oil, which the markets have ignored for some time, might outweigh the recent concerns about ‘future demand outpacing production’.

Towards the end of 2009 oil had something of a gravitational pull to the $80 per barrel level. Having said that there was, and still is, a degree of volatility around the weekly Oil inventories (due out on Wednesdays 15.30 at local London time and 09.30 local New York time).

Many traders seem to be flattening positions out before the weekly inventories and they are only taking a view in the aftermath.

If I am trading the oil markets, be it US Oil (WTI) and/or UK Oil (Brent) then I prefer to trade my short term positions through a spread betting account.

There are a number of Financial Services Authority regulated companies that offer thousands of international markets including crude oil, currencies, stocks and shares. Spread betting firms, like FinancialSpreads.com and IG Index offer the normal benefits of spread betting including; tax free trading*, trading outside market hours, no brokers fees and no commissions.

Be aware though, spread bets do carry a high level of risk to your capital and you can lose more than your initial stake. You should only speculate with funds you can afford to lose. Before trading, ensure that spread betting matches your investment objectives and familiarise yourself with the risks involved. If necessary, seek independent advice.

* According to current UK and Irish tax law, this may change or differ depending on your personal circumstances.

Based in the heart of London’s financial district, Daniel Jones is a seasoned spread betting professional and commentator on some of the leading UK spread betting sites

Article Source:http://www.articlesbase.com/investing-articles/crude-oil-trading-1597864.html

Gold has experienced a spectacular rise recently. I say recently, the metal has been trending upwards for months.

With limited supply, the pressure should always be easier to apply to the upside. However, if this were the only argument then precious metals prices should never really fall.

Perhaps the market is not particularly overbought at the moment so there is still good room for manoeuvre to the upside; unfortunately, the same can of course be said for the downside.

We are in uncharted territory. With inflation remaining weak, interest rates likely to stay low, the US Dollar showing no real signs of recovery, banks still looking a bit weak and fears over the strength of the rebound in world growth, all the factors pushing Gold to the upside continue to linger on.

Looking at gold on a given day though, the price can easily rally on any weakness in the US Dollar. Of course when a market jumps like that then some investors will inevitably close their positions and take their profits. That can then cause the markets to fall, albeit temporarily.

This having been said, selling Gold has proved to be an expensive mistake for quite some months. Aside from minor corrections, the price has slowly ground higher through the whole period.

Not only this but since breaking above the critical $985 level back in September 2009 and then repeatedly failing to get back below it, the omens have started to favour yet another spike higher.

In an era of concern over the value of assets, gold holds its age old allure.

There is still much uncertainty in the markets. The big recipient of all this uncertainty remains the precious metal and it is tempting to speculate that no matter which currency gains the upper hand, the continued undervaluation of the emerging BRIC country currencies will perhaps drive the price of gold to undreamt of levels.

So what are the options for the investor? I prefer to spread bet on gold. However, before I continue, it should be noted that, as with all forms of speculation, there is a negative side. You can lose more than your initial stake with this from of trading.

One of the main reasons for trading gold through spread betting is that you can go long or short with a spread bet. This means you can speculate on gold to either rise or fall, particularly useful in volatile markets.

You also get instant access to thousands of financial markets. Yes you can trade gold spreads but you can also trade the future value of foreign exchange markets like Dollar / Yen and Euro / Sterling as well as stocks and shares or the future price of other commodities like crude oil.

With spread bets, no assets or ownership rights are exchanged, you are simply speculating on the future price of a market, the benefit here is that spread betting is tax free*.

Before you trade though, note that spread betting carries a high level of risk so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment needs, make sure you familiarise yourself with the risks involved and, where necessary, seek independent advice.

* Based on current UK tax law, if you pay tax in another jurisdiction then tax law may vary.

Robert Thomas is a seasoned financial spread commentator who offers strategic and tactical opinion on trading commodities such as gold and crude oil.

Article Source:http://www.articlesbase.com/investing-articles/trading-the-world-gold-market-1584600.html

The increasing strength in world economic data does not seem to be translating, just yet, into more demand for crude. While ‘peak oil’ is a phrase on everyone’s lips it must be said that production from many parts of the globe is currently artificially constrained.

Producers seem willing to turn on the taps above $75, as a sort of profitable-commitment to world growth. While everyone blamed the financial institutions for the collapse in the global economy the impact of $147 per barrel of oil was not exactly a helpful factor.

Looking at the day-to-day trend more closely, oil looks to have found a ceiling as it struggles to get beyond the $80 level.

Whenever there is any strength in the US Dollar that has naturally led to weakness in oil prices as investors close positions, very much a flight from risk.

Strength in the equity markets and weakness in the Dollar normally translates into rising Oil prices. Although we are still seeing some good market rallies, it seems that dealers are less confident than in times past.

The failure to break permanently above $80 may be worrying the Crude Oil bulls a bit as all the normal impetus required seemed to be in place. If the Dollar starts to strengthen, unlikely as it might seem, we may find that dealers are pressuring the support levels again rather than the resistances.

Since the highs at $82 in the US WTI Oil contracts in October 2009 we have had a series of attempted rallies, all of them failing at lower and lower levels. Looking at the oil charts, we now have a very nice falling-trend-line-top to aim for.

Should we close above the trend line there may well be a reaction move to new highs. But, and there is always a ‘but’, the longer we remain below the trend easier it will be for the bears to drive prices lower.

So what should an investor look to do? I prefer to trade the oil markets through spread betting. Note though, there are downsides to all forms of investing and with spread trading you need to be careful because you can lose more than your initial investment.

On the plus side though, there is no capital gains tax, no stamp duty and no income tax on spread betting*.

Also, an interesting benefit is the number of markets that you can trade. Spread betting firms often offer thousands of markets from European and US shares to gold and Dollar/Sterling currency rates. Naturally you can trade both US and UK crude oil spreads.

With the volatile markets like oil, being able to short a market provides interesting opportunities. You do not have to speculate on markets to go up. If your research leads to you think the price of crude oil will go up, you can, of course, bet on it to go up. However, if you think that oil will go down you can bet on it to go down.

It is important to note though that spread bets carry a high level of risk to your capital so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment objectives. Make sure you familiarise yourself with the risks involved. If necessary seek independent advice.

* Based on current UK tax law, if you pay tax in another jurisdiction then tax law may vary.

Robert Thomas is a financial journalist and a commodities spread betting writer offering strategic views on a range of financial markets.

Article Source:http://www.articlesbase.com/investing-articles/trading-the-us-and-uk-crude-oil-markets-1584632.html

If you want to be a consistent winner in the Forex market then you must follow this advice. It is time tested and one of the few guarantees left in the Forex trading world.

Have a reason for the getting in the trade in the first place You would be surprised at how many forex traders jump in on a trade just because they re anxious to make a move or because “i just felt right.” It may sound pretty crazy and I imagine that few traders would admit that they do this but the truth is that emotions and human nature take over for most traders and sadly, that is why so many forex traders lose their trading capital so fast. So, what can be done about this? The answer is really quite simple:

Eliminate emotions from trading. OK, so how can emotions be eliminated from currency trading? The simple answer is confidence is your trading system. Here is the clearest way to become confident in your trading system:

1. Know how to use technical analysis and what indicators are the most useful. I have written extensively in the past on the 200 day moving average and how effective it is. Another useful indicator is the Relative Strength Indicator (RSI).

2. You must have reliable and proven Forex trading software. If you are getting good trading signals on a consistent basis then you will be very confident in your trading system.

I have included a link to a review site for the three best Forex trading signal software programs. Good trading ahead.

Would you like to know more?

Check out this site for more information about the above topic!

Article Source:http://www.articlesbase.com/investing-articles/the-best-forex-trading-advice-1573371.html

Maybe it is human nature… maybe it is a lack of patience or discipline…or the new word courage…why do so many lose money when investing with legendary Commodity trading advisors? I have seen it over and over again. A commodity trading advisor has a good run…and then his assets under management swell. Then the inevitable happens the commodity trading advisor goes through a draw down or even a flat period and the investors jump ship. Assets under management plunge. Many investors lose money doing so. If only they had the discipline to stay with the manager…they could have compounded their money over and over again. Some disciplined commodity trading advisors look at these clients that jumped ship as a trade that did not work. They did not take it personally nor cared. The commodity trading advisors are compounding their own money and fully realize that in order to be in this business, loses will happen, draw downs will happen and investors will only invest with the when they have positive results. The real key in investing with commodity trading advisors is to fully understand how the manager thinks…manages risk…and how he trades. One should not be full of unrealistic expectations… Nothing has to happen in commodity trading..in fact ..most of the time it does not. We only get these rare huge moves every couple of years.. But successful, disciplined commodity trading advisors make themselves available. They do not give up during a draw down. They keep on going..If you want to be a successful commodity trading investor you will need to also. Look at this manager.. Yes,Bill Dunn of Dunn Capital Management has some volatile results, he has compounded money since 1974. The results speak for themselves.. on the chart below from 1984 to 2009 approx 25 years on average Bill Dunn generated 14.47%. Putting this in another context… 100k turns into virtually $3,000,000. This is my point. One can compound their way to wealth by diversifying among commodity trading advisors and being patient and disciplined.

For the results of Dunn Capital since 1984…go here

http://myinvestorsplace.com/2009/11/29/how-to-invest-in-a-commodity-trading-advisor/

Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money

My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.

Article Source:http://www.articlesbase.com/investing-articles/how-to-invest-in-a-commodity-trading-advisor-1517986.html

Trading of stocks is the base of the stock market across the world. Stock exchanges play a major role in displaying the stock prices. IT has changed the very facet of the trading world; with a click of the mouse, you can view the latest information on stock prices or get stock quotes online no matter where you are located. You no longer need to visit the stock broker or view stock prices in person; you can trade online as per your convenience.

Stock prices in India exhibited a positive trend with the stock markets being boosted by a robust industrial growth data. Thanks to the increasing foreign investment as well as reform initiatives taken up by the government to improve market conditions. With the Sensex rising by 4.27 per cent in 11 weeks and the Nifty by 4.23 per cent, BSE stock prices rose by 0.9 per cent. Further, the BSE stock prices witnessed a boost with foreign institutional investors making net purchases worth Rs 2,727 crore in a month. So far the figures are showing an upscale drift and in no time the stock market will resume its lost glory. Every winning side has its ‘loss’ factor too; out of the 2,827 stocks traded on the BSE, there were 1,372 advances with 1,355 declines. These affect the stock prices too. So, you as a conscious investor should first analyse the ‘pros and cons’ before trading in shares. Watch the changing BSE stock prices and get the latest stock quotes to experience a win-win situation.

Browsing the Internet for stock prices will ship you to a number of online brokerage platforms. Almost all platforms carry the latest stock market news in addition to analytical reports, detailed picture of the Indian sensex, also updating you which sectors are in the upward graph and those in the descending flow. If you register yourself in any of these brokerage portals, you can avail a lot of benefits like getting share market tips, the latest stock quotes, stock recommendations, and lots more in your mailbox. This saves your time in browsing for updates.

A trading account or a demat account entitles you to trade in stocks via a stock broker. You can buy and sell shares after watching the stock prices or based on the latest stock quotes. In-depth analysis and watching the market conditions closely will help you gain profits as all investors are subject to market fluctuations.

Sourav Sharma is freelance market analyst and is writing reviews articles on Stock Prices, stock quotes online, stock prices india, bse stock prices, latest stock quotes and share market india.

Article Source:http://www.articlesbase.com/investing-articles/stock-quotes-for-stock-trading-1486623.html

As the world slowly recovers from the credit crunch and we look back at what went right and what went wrong, people are increasingly looking to take control of their finances.

It has become even more desirable to diversify across a wide variety of markets, become more tax efficient and plan ahead for the future.

An increasingly common form of trading that people are turning to is spread trading or spread betting. The speed at which you can trade, the number of trading opportunities and easy access to the markets make it worth investigating further.

There are downsides to all forms of investing and with spread trading you need to be careful because you can lose more than your initial investment.

So why do people spread bet? There are a good number of benefits.

There is a large variety of markets on offer. You can speculate on thousands of markets from the popular Dow Jones Index and Euro/Dollar exchange rate, to the not so popular Wheat, Dollar/Kroner and Interest Rate markets.

Another benefit is that you can close a losing trade and limit your losses but also that you can close a winning trade in order to bank a profit. Being able to part close a trade can also offer opportunities, i.e. closing part of your spread bet but keeping part of it open. Again this is an important risk management feature that can help restrict losses and lock in profits.

Spread betting can be a very convenient trading format. Most trades are made online but you can also trade over the phone and even through mobile phone applications. Certain firms even let you trade markets like the FTSE spreads and Pound/Yen throughout the night.

Where should you trade? The Financial Services Authority regulates the spread betting firms based in the UK. This helps to ensure a certain level of consumer protection. Some offer trades on thousands of global markets.

Also, a number of firms offer the usual benefits of letting you trade outside market hours. Companies, like Financial Spreads, will also let you trade markets such as the FTSE 100, DAX 30, Crude Oil and Gold from Sunday evening all the way through to Friday evening. Genuine 24 hour trading.

Whilst there are many positive aspects to spread trading, you must also remember the downsides.

Spread betting carries a high level of risk. You should only speculate with funds you can afford to lose. Before trading, please ensure that spread betting matches your investment requirements, familiarise yourself with the risks involved and, if necessary, seek independent advice.

Are there any other considerations to take into account? I have seen many trading tips over the years, some more useful than others. Here are a handful of the more common ideas.

Before making any trades, it is useful to have a trading plan. Consider how much capital you are willing to risk, the markets you are going to trade and the return you are aiming for. This can help you make more informed trading decisions.

Try to trade the markets and sectors that you know. If you do not know anything about the foreign exchanges markets it’s best to avoid them. If you are most familiar with the commodities markets then that is a good place to start your research.

Finally, it is worth having a look at a spread trading practice account. These are free accounts with virtual funds. If you are less familiar with this form of trading then a little practice should help you understand the positive and negatives as well as the various types of bet you can place.

Daniel Jones is a seasoned spread trading professional and commentator on some of the leading UK spread betting sites like Clean Financial

Article Source:http://www.articlesbase.com/investing-articles/financial-trading-for-2010-1485738.html

Precious Metals & Energy ETF Trading Report

So far this week has been generous with our commodity ETFs moving higher, other than natural gas which is clearly in a bear market. Each of the commodity ETF trading charts below is at a different stage and it will be interesting to see how things unfold in the coming weeks.

Trading ETFs is very rewarding when done properly and using multiple timeframes for timing your entry and exit points is crucial. My main focus is on the weekly and daily charts but I use a 30 minute intraday chart when the time comes to actually pick an exact buy or sell point. Below I have provided both the weekly and daily chart so you can see how the same ETF looks completely different on the two timeframes.

GLD ETF Trading – Weekly & Daily Trading Charts

The weekly chart a nice multi-month rally but is now starting to go parabolic (straight up). When this happens I start tightening my stops so that I can lock in maximum gains. Now, jump over to the daily chart and notice that gold has rallied longer than the previous move in early October. It looks overbought and ready for a pullback. Pullbacks on strong rallies like this tend to be hard and fast as stop orders get triggered sending prices tumbling down on heavy volume. My general thought is 5 days up in an investment is given back in 1 down day. This is why I scale out of positions when they are looking long in the tooth and ready for profit taking.

SLV ETF Trading – Weekly & Daily Trading Charts

Silver had been under performing gold for several weeks but made up some nice ground this week. Gold and silver tend to trade together so if gold pulls back I figure silver will also. That being said the weekly chart of silver looks ready to rocket higher for another week or so.

USO Fund Trading – Weekly & Daily Trading Charts

While gold and silver have been moving higher, oil has been flagging sideways taking a breather. Both the weekly and the daily charts are aligned for a nice move higher if the trend and charts follow through on their patterns.  We could get some tradable action in the next couple days.

UNG Fund Trading – Weekly & Daily Trading Charts

Natural gas is really starting to slide. Wednesday UNG dipped below the Sept. low of $8.94 by a couple cents then moved up into the close. Overall it’s not bullish. This could be the start of a waterfall sell off which is a sharp heavy volume sell off that lasts 3-5 days.

Commodity ETF Trading Conclusion:

To sum everything up the gold and silver ETFs are on fire as they continue to surge higher. Being ready for a sharp reversal is important if you want to lock in gains on a portion of your position.

Crude oil is taking its time but looking ripe for a breakout higher. We continue to watch for some action.

Natural gas continues to get pushed down and it’s not looking good for higher prices anytime soon. We are waiting for a shorting opportunity or an oversold condition to play a 1-5 day bounce.

Quick Trading Tip: If you have a position which has done well and has moved up for an extended period of time be sure to draw some trend lines and tighten your stop, or set a stop, under a tight trend line. Sell some of your position (25-50%) to lock in gains and let the core position continue to mature. If you get a pullback to a support level (previous breakout level) you can buy back the other part of your position at a lower price.

To learn more about ETF trading and how you can profit from this analysis, be sure to check out our ETF trading course!

Disclosure: I currently own the GLD ETF.

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Article Source:http://www.articlesbase.com/investing-articles/precious-metals-energy-etf-trading-report-1479760.html

The world of trading and broking is as phenomenal as any other happening sector. In fact, it is more exceptional as it is inclusive of a diverse range of segments and sub-segments constituting some of the honchos in top news. If you are looking for an online trading platform or a platform for equities where you can catch a glimpse of the competitive offers, choose from an assortment of broking firms, compare shares, choose the preferred online trading account, get instant quotes, get expert professional advice, and lots more related to stocks, browse through the various sites available on web. There are multitudes of companies that offer free broking account, but choosing the right one requires a comparative analysis. Whether you want to open a free trading account in India or rather free demat account, you can visit an online share trading platform. The formalities are less; all you need to do is to fill in the particulars and there you go – ready to avail the many benefits as an investor and as a free demat account holder.

As a free demat account holder or a free broking account holder, you will stay at the competitive edge as you will be entitled to a series of advantages. This online account is integrated with your bank account facilitating easy and instant transfer of funds. The advantages are many; worth mentioning are receiving additional incentives from banks, holding of securities that are safe, elimination of stamp duty on transfer of securities, reduction of paperwork, risk elimination, eligibility to sell even a single share, nomination facility, and the list is endless. So you can well conjecture the plus points of holding a free demat account holder or a free broking account. And when you can open these accounts for free, possibilities for grabbing opportunities are never-ending. To open a free demat account, you need to furnish a few documents like identification proof, address proof, a cancelled cheque, PAN card and photograph. One advantage of holding a free demat account is its convenience as well as safety & security as shares in physical form are converted into electronic mode.

When a click of the mouse can do the wonders, why worry? An online share trading platform has executives to cater to your needs and queries. Other than getting your queries solved online, you also get personalized attention so that your free broking account is opened at ease. One platform for equities that is worth mentioning is Nirmal Bang; likewise there are a number of such online share trading platforms where other than deriving complete information on shares and stocks and allied news and updates, you also can open a free demat account or a free broking account. When you can get phone based orders, trading calls, research reports, trade advice including tracking of trade offers, why stay behind. Visit one online share trading platform, open a free broking account and reap the benefits of a lifetime!

Nirmal Kumar Soni is freelance market analyst and is writing reviews articles on Plateform for Equities ,Stock Share Market,Stock share market and information on online free trading account.

Article Source:http://www.articlesbase.com/investing-articles/trading-and-broking-online-1464019.html

Whenever traders enter a trade, they must have 3 factors clear in their mind; where to get in, where to take profits, and where to cut and run if market turns against them.

The secret of exiting a trade for professionals is to plan their exits. Before entering a trade, professionals set their specific target and stop price levels. While beginners keep searching for entries.

Why do traders have to think about an exit before they enter a trade? Is it better to monitor the trade after they got in to find exit in response to price action?

The following are reasons for deciding on an exit before entering a trade.

First is to weight rewards and risks for each trade. When traders know their targets and stops, it allows traders to decide if the trade is worth or not? For example, if there is a clear signal to buy at $6, with a target price of $8 and a stop price at $2. Is it worth to risk $4 to gain $2? Price targets and stops prompt traders to focus only on trades that potential rewards far outweigh the risks.

Second is to help traders to maintain their money management rules. Setting profit targets and stops before entering helps traders to avoid a trade that will break their money management rules. For example, if traders have a $100 account and want to risk only 2% in each trade. When there is a signal to buy at $6, with a stop price of $2. Traders should not take it.

Lastly is to help traders sidestep the “ownership effect.” When people get attached to things they own and lose objectivity. Traders are more rational when they make decision before they own that trade. That is why they need to decide on exits before a trade becomes theirs.

Taro is an experience trader who trades in stocks, futures, forex. He strongly focuses on technical analysis, trading systems and money management.

If you would like to find more articles on MetaStock Tutorials, MetaStock Formulas, Trading Systems and Money Management. Please go to MetaStock Trading System.

You would also find the recommended trading books, DVDs, software and tools at MetaStock Trading Store.

Article Source:http://www.articlesbase.com/investing-articles/secret-of-setting-exits-in-trading-1461650.html