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Future Trading Tricks

Introduction: Introduction:Many time people have asked me whether any mathematical


method is available to trade in futures. The answer is yes it is available. Then the next
though comes in our mind how to implement such a model which will yield decent
return simultaneously manage the risk? before jumping into the discussion we must
understand the future trade. In simplest term it is the agreement between the buyer and
seller to execute a trade in some future date. The trade is initiated by both the parties
by the way of paying some token amount called margin. The obligation of the trade is
guaranteed by the exchange through daily Mark to market procedure. Hence we have
the risk to manage the MTM and margin if volatility increases. if you will not manage the
future trade then any unfavorable condition may land you in huge loss. The success
solely depend on how you manage the risk. Mathematical model available to manage
the risk in the future trade: A. Covered call and put method to manage the risk in the
future trade in a range bound market. B.Beta hedge technique to protect your portfolios
from extreme volatility condition. C. Using the Option to manage the risk in the
future D. Using the Binomial, Cox Robinson model to manage the risk in future
trade. E. Using the index or the cross currency or the commodity as hedging component
against the shares to manage the risk. The details of these individual methods are
beyond the scope of this article. How ever plenty of web resource is available to guide
you in this subject. However trade can have objective. I always say do not expect too
much from market. Be objective and keep minimum exposure with the help of
decoupling method or option hedging - See more at:
http://www.smartfinancein.com/future-and-option-tradingtechniques.php#sthash.zUJmV40t.dpuf
Wise Stock Investment Techniques
Introduction: Investors often complain that i have not done enough for the. However
the fact of the story is i have done a lot of works for the investors and a glimpse of that
is quite visible in my FREE E-book. "Essential of Stock Trading", this too is available in
this site for FREE download. We all must understand the real problem which an investor
faces almost every day. Which stock to choose for investment from a basket of
stock available in the stock market? What is the logical reasoning behind this
choice?. I have tried to answer only these two questions in this article. However
as an investor you may impliment many other good trading models for successful
construction of your investment portfolio. Formula 1: Buy the stocks having low P/E
ratio.Day trading mechanism devised into three categories. Formula 2: Buy the value
stock or growth stock having low debt / equity ratio and high reserve and
surplus. Formula 3: Buy the stock having good track record of giving bonus shares to
his investors. Formula 4:Buy stock having low PEG ratio (i.e. price to earning ratio
divided by annual EPS growth). Formula 5: Buy Value stock with high beta or growth
stock with low beta. Formula 6: Estimate the beta of the stock for 3 month,6 month and

1 year or the expected duration of your holding to know how muct return it will offer with
specific % movement in the index.Formula 7: Try to Use the GRACH method to find the
expected volatility the stcok may show during the period of your holding - See more at:
http://www.smartfinancein.com/wise-stock-investment-tricks.php#sthash.InydJFob.dpuf
Learn Commodity Trading Technique
Introduction: Trader say Commodity future trading is the safe bate as compared to the stock
trading. It is not because of the low margin it attracts for the trade. Trading in the commodity
future is a structured affair and it is balanced globally hence forth is safe to trade in commodity.
The demand and supply curve which makes the movement in the commodity price is always
over shadowed by the global activities. Though it is a broad and wide spectrum of study but
much time the traders used to neglect its study and analysis. It is my sincere requests do not
ever analyze the commodity price based on technical indicator, oscillator or moving average
study alone. You must understand the internals of the commodity tradingTradable commodity is
classified into 2 categoriesA. Cyclic commodityB. Non Cyclic Commodity.Further more
commodities are classified as the nature dependent and industry dependent. Going one step
further it is classified into two more categories economy dependent and economy independent
commodity. All agree cultural tradable commodities are cyclic, nature dependent and economy
dependent too. Similarly all industry used metals, energy products are non cyclic, industry
dependent and economy dependent. Some economists also argued that semi cyclic commodity.
The demand of a specific commodity is complex tasks to analyze since it depends on many
inter continental and global factors. As a trader though you require the sound knowledge in all
these but it is quite difficult to master. Hence the next way out of this problem is "Simplest
analytical procedure to understand and apply in commodity trading"a. For cyclic , nature
dependent and economy dependent commodity the fall in production is directly proportion to the
raise in price.b. For non cyclic , industry dependent commodity the price is directly proportional
to the demand.The most intelligent method to analyze this commodity price is to use the
correlation analysis of domestic currency with the domestic commodity price. The correlation
tool is readily available in Microsoft excel to do the job for you. The 2nd intelligent procedure to
identify the price trend of the commodity will be using the cycle theory approach of the Elliot,
W.D.Gann. As a commodity trader identify the trend using the cycle theory approach, do the
correlation analysis with domestic or any global standard currency. if possible find the beta and
initiate a successful trade . Though the information given by me is half cooked but I have given
the hint for all the necessary parameter which you need to do a perfect commodity analysis. The
beta decoupling method also has great success in commodity trading.
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Why to use our intraday calculators?


We have many reasons to justify our stand . Few important things we wish tol list below
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