Futures Trading forex Trading is a game just like any other game. When you are learning how to play a game you first need to know all the rules and then you need to practice what you have learned. Be careful to not mix up those steps though, because as my tennis coach in high school said, practice makes permanent not perfect. You want to be practicing the right way.So lets start with the rules. What are the rules to trading?You need to know when you can trade. Are you going to place all your orders after hours and let them execute during the day or are you going to watch the market during trading and place your orders? You need to know what the different type of orders are and how they affect your trades. Are you going to place market orders, limit orders, stop orders or a combination of different types depending on the situation? What are the advantages and disadvantages to each and how will you use them for money management?Then, what is your hold time going to be? Day trading? Swing Trading? Short-term trading? Long-term trading? Different time periods work have different potential opportunities and risks. What are you going to trade? Just stocks? Perhaps options as well or even futures and currencies. How does volume affect your trades? There’s plenty more to learn as well, but you get the idea.Once you know the rules then you need to practice.Practice in trading usually comes in the form of developing and testing a system that works before using it to trade with real money. To do this you will need to learn about different indicators and oscillators, how they work and what they work best with. You will need software of some kind to test the results of your strategies.Then it is a good idea to do some? paper trading? with your newly developed system, that is using either one of the stock market trading simulators available on the internet or just keeping track on your own. Get used to applying your strategy to real life and get a feel for how to manage it for several days at least. Then you will be ready to start trading your new system. Publié par forex trading à l'adresse 08:24 3 commentaires Financial Markets What is a Ponzi Scheme - How Do Ponzi Schemes WorkQuestion: What is a Ponzi Scheme? How Do Ponzi Schemes Work?Answer: A Ponzi scheme is a scam investment designed to separate investors from their money. It is named after Charles Ponzi, who constructed one such scheme at the beginning of the 20th century, though the concept was well known prior to Ponzi.The scheme is designed to convince the public to place their money into a fradulent investment. Once the scam artist feels that enough money has been collected, he disappears - taking all the money with him. Bailouts: Why Just Stop at Banks? Publié par forex trading à l'adresse 08:23 1 commentaires Insider Trading What is a Ponzi Scheme - How Do Ponzi Schemes WorkQuestion: What is a Ponzi Scheme? How Do Ponzi Schemes Work?Answer: A Ponzi scheme is a scam investment designed to separate investors from their money. It is named after Charles Ponzi, who constructed one such scheme at the beginning of the 20th century, though the concept was well known prior to Ponzi.The scheme is designed to convince the public to place their money into a fradulent investment. Once the scam artist feels that enough money has been collected, he disappears - taking all the money with him. Bailouts: Why Just Stop at Banks? Publié par forex trading à l'adresse 08:22 0 commentaires Insider Trading Insider Trading: What did Martha Do?Martha Stewart has been in the news for several months because the U.S. Securities and Exchange Commission believes that Martha Stewart was told by her friend Sam Waksal that his company ImClone’s cancer drug had been rejected by the Food and Drug Administration before this information was made public. This rejection was a huge blow to his company and the price of its stock went down dramatically. However, Martha Stewart wasn’t financially hurt because she had her broker sell her 4000 shares before this news was made public. If this is true, and it should be noted it hasn’t been proven yet, then Martha Stewart is guilty of insider trading.What Is Insider Trading?When most people hear the term “insider trading” they think of the illegal version. However, the term “insider trading” can also mean the perfectly legal buying and selling of stock by a company’s corporate insiders. Insider trading is legal when these corporate insiders trade stock of their own company and report these trades to the U.S. Securities and Exchange Commission (SEC). That way the insider trading is not kept a secret and anyone can find out a corporate insider’s opinion of his or her company.Insider trading is only illegal when a person bases their trade of stocks in a public company on information that the public does not know. It is illegal to trade your own stock in a company based on this information but it is also illegal to give someone that information, a tip, so they can trade their stock.Why Is Insider Trading Illegal?The SEC’s job is to make sure that all investors are making decisions based on the same information. Insider trading can be illegal because it destroys this level playing field.Punishments and Rewards Associated With Insider TradingAccording to the SEC website there are almost 500 civil enforcement actions each year against individuals and companies that break securities laws. Insider trading is one of the most common laws broken. The punishment for illegal insider trading depends on the situation. The person can be fined, banned from sitting on the executive or board of directors of a public company and even jailed.The Securities Exchange Act of 1934 in the United States allows the Securities and Exchange Commission to give a person a reward “a bounty” to someone who gives the Commission information that results in a fine of insider trading.If you'd like to ask a question or comment on this story, please use the feedback form.