Tag Archives: retirement

Stock Trading

How to Make the Most Out of Bollinger Bands?

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Below is a chart of Apple. The blue bands represent the standard Bollinger bands.

The chart displays a lot of useful information. It is evident from the chart above that the price follows the upper band at the end of May to the beginning of June and in July. In the above chart, you can also see lots of instances when the center line supports or resists the movement of price from one band to the other.

It is crystal clear that in the beginning of May and then in June, the stock overbought and the price went down on these instances.

Most of the programs utilized for charting with Bollinger bands use the settings as BB(20,2.0), meaning regular 20 bars with 2 standard deviation numbers. This is the typical view, this is how everyone uses this fantastic tool for trading. These methods are effective, but there are other more efficient techniques that you can use.

Start thinking differently from the common people and you will be able to get more advantage from the signs of this instrument. The next chart is based on BB(13, 2.0), meaning 13 bars are used rather than the 20.

You can get more details from this graph. The blues bars show the standard 20 bars and the bars are for the 13 bars. As you can tell that the price moves more closely to the upper red band at a number of places. On all the three uptrend, it appears to paint a far greater boundary.

Most importantly, in this graph you can also note that the lower band provided support in the middle of May and middle of June, which was not shown in the previous graph. The 13 bar input appears to improve the accuracy of the price motion shown by the graph.

You must be thinking now that this is not a surprise. If we keep on lessening the lines and take them to just one line, the it would just trace the price line precisely when taking a look at it retrospectively. But, if you wish to be one step ahead of the people with intraday trading then you should test out various time frames for the bands.

Here’s a graph with an 8 period Bollinger band added. Have a look at the graph and see what you can foretell about the trend and the support levels.

Most people trade Bollinger bands wrong, don’t be one of those individuals. If you understand how to use Bollinger band correctly, they can prove to be of great help. Using Bollinger bands indicator is a great way to find out which trades will be worthwhile for you.

Forex Trading

How To Plan For Your Retirement

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If you want to plan for your retirement, a good place to start would be a 401K plan. Each pay period, this account that you fund with pre-tax earnings is deducted from your paycheck. Invested in a variety of mutual funds, bonds, and stocks are these funds and until the funds are withdrawn from the account, no taxes are charged upon it. In the early 1980’s, Congress created this and it’s been used as a vehicle to save for retirement. There are many benefits of a 401k plan that can make an excellent financial net when it comes time to retire. Examples of some advantages are portability, being able to withdraw for hardship cases or loans, and flexibility to customize your investments.

Matching a portion of the employees 401k is often done by most employers in order to contribute as an appealing factor in keeping employees. Some employers will even increase the amount of their match when the employee works for them for so long, it all depends on the company. Investing the maximum amount you can to the 401k is a good idea in order to benefit from this program. The 401k plan not only customizes your investments, it’s flexible in this manner as well.

When it comes to the 401k plan, an appealing and flexible option is that if you decide to change employers, a variety of options are available to you. These options include, leaving the 401K plan with the employer you are leaving, the administrators could begin to charge you money for keeping the records and managing your account. To your new employers 401k plan you can roll over your 401k, and this is yet an example of an option you have. Putting the rollover into an IRA is also something you can do. With this, you’re not limited by what is provided by your employer and you’ll be allowed to control the allocation of your assets. Your last options is to cash out, pay the taxes, plus a possible penalty fee.

Investigating all options and weighing the pros and cons is important because it will help educate and inform you and help you make decisions that can benefit your future retirement.

When people retire after working hard all their lives, they would want the comfort of knowing that they have financial backing to help them out.

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Forex Trading

Where To Begin In Financial Retirement Planning

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This economy has made it almost impossible to retire – unless you’ve got a plan for the future. Although you don’t need to be afraid of financial retirement planning, you should be serious about it. When it comes to financial retirement planning, it will ensure that whatever vision you have for your retirement will become a reality.

It’s never too late to begin saving, but begin early if you can. If you want to have more security in retirement, then begin at 35 instead of 65. By creating a financial retirement, you’ll realize what needs to be done in order to have a successful future. Without a plan, then future issues can be confusing and murky.

Creating a retirement strategy includes where you’re going to place investments and for what period of time. In setting monetary goals, 3 strategies you should keep in mind are short term, middle term, and long term investments.

Five or more years are long term investments and you can choose a series of investments that are poised to be appreciated in the long term. Short term (less than a year) investments could be CDs or volatile stocks.

When it comes to financial retirement planning, taking the word of an investment analyst as gold is no longer something you can do. What you need to do is take the bull by the horns and know what’s going on with your money.

If you’re intimidated with financial matters, there are books that are well-written that can explain the difference between things like bonds and stock, etc. Short-term college classes abound with information you can use to set financial goals for your retirement.

In order for you not to find yourself short of funds when you retire, you must gain an understanding of what’s going on with your money. You can also choose a plan that includes available cash like money market, savings account, treasury bills, and also stocks from small to large companies as well as investments like real estates.

Taken into consideration when you plan to retire is financial retirement planning. In your readily available cash, more funds should be placed if your retirement is 1-5 years away. If you’ve placed most of your funds in the stock market and there’s another downturn, then a big portion would disappear.

If you have enough time to invest, then you can try real estate and stocks. While avoiding some of the taxes and inflation that’s likely to happen in a long term basis, this strategy will increase your wealth. As time goes on and your retirement date looms closer, adjust your portfolio accordingly.

When it comes to financial retirement planning, it’s mostly common sense. Review the knowledgeable decisions you’ve made on a yearly basis. Don’t flip out because a stock goes down in value – if you’re on a long term plan it should all even out in the long run.

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Forex Trading

How Pepperstone Forex Trading Fits Your Needs

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The complexities of the stock market are enough to leave most novices bewildered by the prospects of investing their money, and the difficulty in dealing with foreign currency only adds further fuel to the fire. Pepperstone Financial offers their customers the option to get help and assistance in navigating the financial markets and attaining trading solutions. Their execution-only policies mean that they will carry out their client’s instructions to buy or sell but will not preempt their decisions. Based out of Melbourne, Australia, Pepperstone has the experience of team members who exclusively deal in forex transactions.

Many online forex companies end up facing challenges because of problems with customer support or complicated spreads. Pepperstone uses only the highest technological services so customers can react in a hurry to swift changes in the market. Since there are many good tools available, clients can feel good about staying ahead of the game and not being left behind due to delays or glitches. Although Pepperstone is somewhat new, it has been around since 2010, the people that run this company have decades of experience. Many of these team members understand themselves the challenges of working with other forex firms. This company works hard to trade and give effective solutions to their customers. This company has worked hard to make the entire process go as fast as possible.

Pepperstone relies upon AA-rated financial institutions based out of Australia for their client accounts, such as National Australia Bank as well as HSBC. They strictly use these funds to execute upon their clients’ trades. The company has a policy of high integrity and corporate ethics in tandem with responsible trading and innovation. With seven separate online forex trading platforms, it is possible for a customer to spend every hour of the day making trades with Pepperstone. The company’s access to global forex liquidity, furthermore, as well as their accounts in eight separate currencies all allow for a vast differentiation of trades. No less than twenty-nine currencies or metals may be traded through Pepperstone.

The Pepperstone process is simple. A client need only invest a minimum of two hundred dollars (American) to get their account up and running. Their raw spreads start at a bare .1 pips, they boast a 400:1 leverage ratio, and they can trade from .01 lots. With zero opening or transfer fees, the company represents unmatched proficiency through their highly-rated trading platform. The Metaquotes MT4 Platform allows for zero trading restrictions, meaning that execution can take place as fast as the electricity goes from computer to computer.

With minimum delays, you can feel confident that you will get the best prices when it comes to sales or purchases. Speed is the main advantage that Pepperstone will give you. If you compare this company with other forex execution firms, then you will see why this is the best choice. There is no need to depend on companies that rely on clunky and old platforms when you can turn to Pepperstone. If you are thinking about opening up an account, then you should try it out. Pepperstone Financial has a lot to offer it’s customers.

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Stock Trading

The Secrets to Locking In Profits for Option Traders

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Today, I had an interesting conversation with an option trader who is still searching for the magic formula to making consistent returns with option trading. He said many things which were so familiar to me.

The thing in particular that really stood out to me was when he alleged “Non-directional option investing doesn’t mean we will produce a return on investment in every direction. It really means that we produce a return if the asset doesn’t move in any direction. Another way to look at it, it’s really a directional strategy, sideways.” This is very true, and most schools say that it’s easy to manufacture returns with options simply because we can produce money for every direction the market goes. This is true in some points of view and false in others.

Those investing with Condors understand what I am saying, especially if you are investing in the Iron Condors which most programs and written materials preach. If you are investing with this option strategy during 2008 and 2009, you most likely aren’t doing much good. The reason for this is that the Iron Condor is just as directional as other option positions only that its direction is called “Sideways.” For most traders, it’s just as difficult to forecast a neutral move as it is to predict an upward move or downward one.

I have had many calls over the years from people losing huge chunks of their accounts trading credit spreads and condors. They all say the same thing… “I was doing great for several months, and then all the sudden I lost nearly my whole account in one day.” I have heard this story over and over again.

This is the reason why I don’t push the popular Iron Condors, Bear Calls or Bull Puts. If you are a couple days from expiration, and the RUT is really near the sold strike, then at that moment you are in a very risky position. I’ll remind you that this is the same risky method that many other investors are using to manage this option spread. Shortly all of your friends will be hearing the same story, but you won’t be sharing this news with your wife! You smile at the moment, but you won’t be if it happens to your trading portfolio. Another sad thing about this investing style is that the fear level is so astronomical that it really hurts your personal life. It makes it tough to sleep or even just relax each day.

Anyway, to deal with this problem San Jose Options Mentoring has redesigned Iron Condors and Credit Spreads. We have a different technique which gives the underlying much more wiggle room, lowering our stress level and keeping us out of dangerous situations. Remember, the less you have to adjust your condor, the better off you will be in most cases.

Besides teaching a safer way to trade Condors, we’ve also developed techniques to lock-in our profits on them. Most option traders exit their trades when they make a profit, but we can lock-in our profits and stay in the trade.

There’s yet another technique we’ve developed that I’d like to mention before we go. Every trader has some trades that don’t work out right? Well we obviously do too, but in our case, we usually end up with a Bonus Trade which gives us a chance to make back our loss with very little or no risk at all. It’s these little details to trading that make all the difference at the end of the year.

So there you have it! Whether it’s a winning trade or a loser, we have really developed some nice trading tactics that can improve your personal trading immensely.

Ready to lock in those profits? Better your Option Trading Skills today by visiting San Jose Options Mentoring online at www.sjoptions.com. Visit today and get a Free Video on Option Greeks, a $200 value absolutely free!