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Traders & Investors Club Meeting - 21st September 2010
Simplicity Is Elegance
When trading intraday, volatility is our best friend. However, volatility is a double-edged sword; a sudden move in the price against us will often take out our stop before the move invariably resumes in our direction leaving us standing on the sideline. Therefore, why not forget about using stops altogether?
Tonight, Andy Simensen of the Traders & Investors Club will be introducing us to some advanced strategies using the trading instrument that is gaining in popularity known as the binary option.
A binary option is a bet that the price of an instrument will reach a certain price level on the upside, or the downside, within a certain period of time. So, the outcome at expiration is either a loss or a win. The binary option is especially well-suited to trading fast-moving markets such as FX. Because your risk and potential profits are clearly defined in advance, you can give your trade room to move because you don't need to worry about placing a stop. No matter how far the market moves against your position, your potential loss is capped.
As well as buying a binary option on either the long or the short side, we can also sell it. This means that we can also make money if the price DOESN'T reach a particular price level. For both speculation and hedging, binary options offer the kind of flexibility not available with most other instruments.
How do binary options compare to the more traditional methods of speculation? Come along and find out.
Trading Ideas And How To Execute Them
We are often asked which is best vehicle to trade. This is a very valid question because the choice is pretty wide; stocks, forex, futures, bonds and options to name but a few. Once we have chosen our market, how do we execute the trade? Should we use a stockbroker, trade directly on the exchange or spread bet?
How should we allow for slippage and why are there several different quotes for what appears to be the same instrument? We must be sure that the chart upon which we have based our analysis reflects the same price as the asset that we're trading.
How do we keep a record of our trading overheads? What ARE our trading overheads? How do we calculate our risk/reward ratio?
Jeff Boccaccio of the Traders & Investors Club is a full-time technical trader who has already asked all of the above questions and many more besides.
This evening, Jeff will be discussing some of his recent trades focusing on the 'how' they were placed rather than the 'why' and sharing with us his cost analysis of using different trading vehicles.
He will also be discussing the variety of mechanisms that are available to us for trade execution. For example, does a platform such as ProSpreads provide us with the best of both worlds?
All will be revealed on the night.
Our Month In The Market:
What have we been trading since last we met?
One of the major benefits of membership of the Traders & Investors Club is the opportunity to network with like-minded individuals. Every evening, members talk about their successful, and not so successful, trades as well as describing their individual trading strategies and methods.
I do hope that you will be able to join us on the 21st in order to continue building the Traders & Investors Club into a unique forum where traders help each other to become better traders.
Market Roundup And Open Forum
The spread between the Greek 10-year bond and the German 10-year bond continues to widen dramatically. So what? Who cares? How can this possibly affect me?
Tarry awhile, my friend. What could this be telling us about the health and perhaps the very future of the Euro? Has the time come to think the unthinkable?
Kevin Barry of the Traders & Investors Club will be presenting our regular summary of the recent global market action and throwing the floor open to the audience for their take on the current trading environment.