When it comes to futures trading and especially those who wish to trade intraday, fundamental analysis of a particular stock may not hold much importance. You want to make quick profits due to price volatility and exit your positions. It is only when you wish to hold on to a position for some time that some aspects of fundamental analysis come into play and even that is quite limited.

Technical analysis in futures trading involves mainly three elements – the price of the asset class, the volume traded and the open interest positions that have been created. The analyst looks at these in order to form an opinion on the likely movement of the asset class in the short term.

You would have noticed that four price points are mentioned in the papers relating to an asset class. The price at which a futures contract opened, the high it made during the day, the lowest point as well as the closing price. Of these four, it is the closing price that is considered significant as that sums up the activity for that stock for the day. The opening rates are not seen to be as important mainly due to the buildup of contracts from the previous day and that is seen to influence the opening prices.

Generally, when the price increases with volumes, the indication is that particular contract is in favor and therefore one can have a bullish view on it. The increase in open interest is also another indication that more buyers want to buy the contract and you can therefore get in as quickly as possible to make your profit from the leveraged position you can take.

It is important to mention here that technical analysis does not always mean that you can be certain of the movements of the contracts. It can be used to establish probabilities and you should not confuse it with a particular trend that is sure to happen.

The technical analyst looks at the trendlines that have been established over time for a particular stock to determine the probability of the stock behaving in a specific manner. These trendlines serve as a warning and if specific points in the trendlines are broken, that stock would be able to continue with the momentum in all probability.

For instance, when a stock makes a new high, it means that it is likely to continue the trend with each high it makes being higher than the previous high. The same goes for stocks making a series of lower lows. You can be reasonably sure that this stock will hit new lows in the short term.

Other elements that a technical analyst looks at in futures trading are support levels and resistance points.

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Why are there so many funds available with such an absence of results? Many fund managers engage in window dressing. This is where management will re-balance a portfolio to show they are holding the best performing securities from the last period. They don’t have to disclose every stock they’re holding; just the largest holdings. Most speculators don’t understand how this system works and depend on the advice from their money manager. Many financial planners make their money by directing clients to dangerous funds and investments. Furthermore, many managers extract fees based totally on the amount of transactions their accounts have. This just gives them more incentive to be consistently trading out and in of financial instruments, which is in direct conflict with the best interest of the customer.

A different reason in which it is so tricky to determine a good fund from an average to poor one is that even the best money managers hit a rough patch. This is the reason why it is better to grasp the process undertaken by the fund manager than to only know only about the recent performance. Most investors chase performance. They are going online and looking up the performance of the last year or past 3 months. This, most of the time, is not indicitave of future results.

The funds which have performed best pretty rarely perform as well going forward. This is because after a good run, the base assets became overvalued. Valuations inside each asset group always go back to the mean, or their long term valuation. As stated earlier, most mutual funds return less than the market index. Most individual investors who actually buy them do worse. They chase the hottest fund and purchase it at the peak. After that, they sell after it loses its value, then buy another hot fund.

On the other hand, assets that had been performing inadequately are often under-priced and make better investment sense. This is due to the fact that you can regularly get assets for a price that’s much less that what they are worth.

From a tax standpoint, actively managed mutual funds are simply awful. Unless the mutual fund is exchange traded, there is a tax debt every time the manager makes a profit when selling an underlying security. See your income tax consultant for more.

Index fund investing is the best bet for those that want exposure to the stock market and do not have the desire to always be watching the market. This gets rid of the necessity for an active money manager. Many money managers have a conflicting interests and stand to make money at their customers’ expense. Being in index fund investor, you'll do better than 8 out of ten fund managers.

Eileen E Jacobs is a mortgage consultant from Las Vegas, NV. She has over thirty years of experience in helping clients with financial matters. | Las Vegas Mortgage Lending

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Scalping stocks involves trying to make small amounts of profits several times a day in quick time frames. Often the trades last only seconds but can run into several minutes per trade as well. Scalpers must also have access to live financial news because any important news that comes out can move the stock you are in either in your favor or against you at any given moment.

There are some distinct advantages to scalping. We don’t hold any trades overnight, and all trades occur during the normal trading session. Further, it is easier to glean short-term trends than longer-term trends. For example, natural disasters often affect the price of a stock. With a short holding period the scalper and generally can ignore these broader market variables since his or her exposure to these variables is very limited.

If you intend to trade using scalping techniques, you are definitely not going to have to be sitting at you computer all day watching the monitor with you coffee and biscuits. You hand will be hovering over the button on your mouse, but not for too long. There is no waiting and wondering overnight and most scalpers do not employ such thing as stop loss procedures because of this short exposure frame.

There are many courses teaching the soecifics of scalp trading. Become educated so you can improve your chances for success.

If you want to know more about stocks, please visit www.asiacharts.com. It is a website that provides detailed information of some tools related to stocks, such as Parabolic Trend, Turtle Trading System, Metastock Addon, Stock Trading Seminar, Metastock software and so on.

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Stock market corrections occur every once and a while. They are not to be feared. A correction is simply when stocks after a long time of going up and down. They are called corrections because they are said to bring over priced stocks downward. This corrects the price of the stock, or brings it back down to a reasonable level.

Stock markets corrections are indeed scary because you don’t know how long they will prevail and when the markets would again revive and come out of correction mode. But markets will always go up and down, which is the normal pattern. Instead of fearing market corrections, an investor ought to take stocks of things and reshuffle his portfolio in such a way so as to beat the correction.

However, once investors believe that the stock can’t go up, they would begin to sell. As soon as the market begins to feel the selling pressure, the stock’s price would start to slide, and it eventually slides quite a bit.

Of course the correction in the price of one or two stocks won’t impact the market greatly. Sometimes however, there is a bigger correction where the value of the index comes sliding down.

During a correction, different people choose to trade the markets differently. But there still is money to be made during this market. If you learn it well you could bring home money by the barrel-full.

If you want to know more about stocks, please visit www.asiacharts.com. It is a website that provides detailed information of some tools related to stocks, such as Parabolic Trend, Turtle Trading System, Metastock Addon, Stock Trading Seminar, Metastock software and so on.

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Transcript:

As we discussed in a previous video, dark pools are becoming ever more prevalent.

I’m Leisa Bugge and this is the second video in a series on dark pools.

Since our last video just over a month ago, there have been several articles written in notable publications, including two in the Wall Street Journal.

With our Corporate Clients asking more questions since our last dark pools video we thought it timely to talk about the topic further and open the discussion to new venues.

One common question is “What do dark pools mean for my stock price”. Good question, and while the answer is not straight forward we believe that it is worth discussing.

Do dark pools now call into question the Efficient Market Hypothesis? With broker-dealer owned, independent and exchange owned dark pools, does it matter which dark pool the stock is traded in?

We know many different investors use these trading venues, most notably secretive hedge funds, but also the plain vanilla institutions that populate the top of your shareholder lists.

The IR Professional and others alike should do what they can to educate themselves on this topic, because as we said this trading venue is becoming more widely used as the days go on.

For example, the big news last week was the Wall Street Journal reporting the NYSE and NASDAQ will be allowing clients access to dark pools as a way to increase revenues.

Now this is something that must affect a stock’s price, or is it?

Join our blogs through your Thomson One Investor Relations platform where we will help answer and debate these questions. You can find IR Hub under the Tools tab.

I’m Leisa Bugge with this Corporate Advisory Insight.

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Duration : 0:2:29

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I have options with Nautilus at $32 a share, when I left the company the stock was at $3 a share…worthless