Remember the movie with Alec Baldwin? It’s about the exploits of the Shadow, a crime-fighting vigilante with psychic powers. The Shadow has “the power to cloud men’s minds so they cannot see him.” In the world of trading, there are two kinds of investors, regardless of whether you are day trading or night trading: institutional traders and retail traders. Unfortunately, institutional traders “cloud” the investments (and the minds) of retail traders. (more…)
Posts Tagged ‘trading strategies’
Are Diamonds A Girl’s Best Friend Or Is It Night Trading?
Carol Channing introduced the song as the character Lorelei Lee in the original production of “Gentlemen Prefer Blonds” (1949)
In 1953 Marilyn Monroe did the song in the same role .
Diamonds today are a strong part of pop culture and they have been for a very long time.
It is true that diamonds are a traditional way to preserve wealth. Getting the wealth is quite another matter
Having a trading system and using in in Night trading, Shadowtraders feels is a great way to build capital.
What Shadowtraders teach Night traders is trading system. That Is a set of rules that determine entry and exit signals for a given financial instrument. The signals are shown on a technical analysis chart in real time, keeping up with the Market. They prompt the trader to take an immediate action, either buy or sell. The key is rules. A successful trader will keep the rules that they have established and not change midstream. The main reason why any trader should have a trading system is to keep emotional trading decisions to a minimum. Trading tends to be 50% technical and 50% emotional. Without a trading system, the emotional side can be more than 50%.
A number of studies have been made that show that the majority of traders leave trading when they sustain huge losses after they after they abandon their rules. How that happens is that they break the rules and think that they get away with it. Decide that they can outsmart the market with their hunches. Then they always get slaughtered later.
Every trading day should be uneventful. It is just a business. You start trading, you make your profit, you end off for the day and go do something else.
So you use your rules and build some reserves. With economies and currencies in flux, Diamonds are worth considering as part of a diversified asset portfolio as a buy and hold asset.
The main reason diamonds a popular investment is that the diamond industry is a monopoly that has controlled the price for the past fifty years. Contrast this to emeralds used which used to be controlled to some extent from Columbia but that ended in 1998. In Brazil, you have small, colored stone mines that will sell their merchandise for the best price they can get if and when they need the money.
Here is how the diamond industry works in a nutshell. Diamonds are controlled, with the price of “rough uncut diamonds” claimed to be going up at least 20% per year to site holders. There are fewer than 100 site holders in the world who are allowed to buy diamond rough only 10 times per year. They, in turn, manufacture the rough into cut and polished diamonds that are then sold in your local jewelery stores.
In contrast to precious metals, there is no universal world price per gram for diamonds. However the industry does refer to price guides such as the Rapaport Diamond Report, The Diamond Registry Wholesale Diamond Price List,Ajediam Antwerp Diamonds Monthly and The Gem Guide, which are published weekly or quarterly.
Who’s Who Diamonds, or any other gemstones, are normally not considered an immediate, short-term investment if you buy them from a retail jewelery store. They are only a good, solid investment if you can buy them directly from the rock-bottom, wholesale source. If you’re looking for an investment in diamonds, this means you will have to deal with a wholesaler who can buy directly from the Diamond Trading Company (DTC)/De Beers. Then you have a controlled investment that will be scheduled to increase on the wholesale level at 20% per year.
The largest diamond company in the world is Alrosa, which surpassed De Beers in carat production in 2008. Alrosa is currently government owned, so not listed on the stock market. De Beers is privately owned by Anglo American (45%), the Oppenheimer family (40%) and the Botswana government (15%), so its shares are not traded on the stock market. Rio Tinto and BHP Billiton are the next largest producers, but diamond mining is a small part of their commodity portfolio.
Diamond Funds In 2008 Diapason Commodities Management listed an investment company called Diamond Circle Capital DIAM:LN, which aimed to invest in rare colored and colorless diamonds worth more than $1m each. At Blomberg the ticker is DIAM:LN. which registered and incorporated in the Isle of Man and listed on the London Exchange.
Gold has been the lingua franca of investment of the wealthy throughout history. The yellow shine of the soft pliable metal remains highly attractive to many investors today. Gold is arguably the most popular precious metals bar none. Using successful trading systems can build your wealth. Instruments like gold can help to sustain your reserves. Whether you are trading commodities, e-minis, S&P500, currencies or trading futures. It is wise to diversify your portfolio.
Why is gold attractive? Gold is a tangible asset that retains its value even if fiat currencies,stocks, bonds, eminis or futures lose value, Gold is a highly liquid asset. In certain conditions more liquid than currency. Gold is a way of riding through the crests and troughs of world economies. Many feel that gold is the only real hedge against the pervasive financial shenanigans that rock the economics of the western world. In summary, gold is portable, liquid, fungible, portable, and readily exchanged anywhere in the world.
So you think your interested in gold… You need to be clear as to your investment objectives. Face it, Gold is expensive. Keeping it in safe storage provides it’s own set of challenges.
If you have financial wolves howling at your door, gold probably should not be your first priority. First clear some of those existing debts. Eliminating debt returns a higher yield than many investments. Just do the math.
It is conventional wisdom that once you have cleared your debt and have money to invest, traditional investments in stocks and bonds are the first place to look as in the past they tend to outperform gold over the long-term. At Shadowtraders we would argue that a bit of trading in the futures market is a viable way to build your portfolio. In today’s uncertain economy buy and hold may not be the haven that it has been long considered to be. So consider gold as a way to hold part of your portfolio value and to serve as an investment hedge.
Common reasons for investing in gold:
Gold is always in fashion. It is a tangible product that can always be passed on without concerns for its desirability in the future. Contrast demand for gold with fluctuations in antiques and collectibles which are subject to the whims of fashion.
Owning gold can protect you from a decline in currencies or from inflation. Countries often start investing in gold when the economic times start tanking, and the more debt-laden an economy, the higher the price of gold per ounce will generally command.
Gold can be another diversification of your investment portfolio. According to financial experts diversification is considered the best reason for having gold.
Assuming your gold isn’t stolen, gold is a sound means for protecting wealth over a long period of time.
During a period of civil instability, gold is a way to protect assets, it is portable, easy to hide, and can give you something to hang on to when everything else is lost.
The styles of trading that we teach at Shadowtraders® can build wealth. It becomes an interesting subject as to how keep it.
Economic instability has been a hot topic in the international news. Any who have seen the movie Blade Runner should be having feelings of Deja Vu. (more…)
For anyone day trading or night trading, the need to recognize a trend, consolidation, or a break out is critical to being successful. As such, these investors spend a great deal of money purchasing expensive financial widgets (indicators) designed to give them signals when to buy and sell. The grand daddy of all indicators is the moving average. But is this indicator worth its salt, or is it just outmoded. (more…)
As a day trader, you develop a good trading system overtime. In that trading system are a group of trading strategies that you hope you can rely on as you trade. Whether you decide to trade during the day or are night trading, you need the best trading strategies you can find. The key is to find a trading system you can stay with. The last thing any day trader wants is to have to trade from the seat of their pants, entering and exiting without trading strategies. (more…)
As a day trader, you always want to have a good trading system that you can rely on as you trade. If you decide to trade during the day and at night, you might need a different trading system for each. But the key is to use the trading system you develop and stay with it. The last thing any day trader wants to do is trade from the seat of their pants, entering and exiting without an overall strategy…that is how you can get burned. (more…)
One of the best reasons for night trading is that investors who are using a trading system, with accompanying technical analysis trading strategies, will not run into as many high frequency trading robots (HFT). (more…)
Live trading rooms are online chat sessions where a professional day trader (moderator) calls technical setups/trades and helps participants see the Markets. In these trade rooms, both novice and seasoned traders watch the moderator’s charts, ask questions about setups and using the platform, and trade themselves, either live or in simulation mode. (more…)