Archive for the "Trading" Category

04.03.2011 Post in Trading

The last story we are going to tell you concerns an 83-year-old retired lady called Ingeborg Mootz.  She comes from Giessen, the tiny town in Germany. This woman managed to gain as much as half a million euros and she is not going to stop trading.

Ingeborg Mootz

Ingeborg Mootz aged 83 has the most exciting story of success on the financial markets.  She made 500 000 euros on the stock exchange for 8 years. Yet, she is not going to abandon trading. Moreover, Mrs. Mootz means to boost her profit up to 1 000 000 euros  in future.

It is worth emphasizing that Mrs. Mootz does not have any diploma in finance and never has come to deal with stock trading for the whole life.

She spent 17 years of her life in poverty.  Ingeborg was brought up in a large poor family then she got married and became a housewife for the whole life. Her husband had some savings, but she had to literally beg him for each mark. All her attempts to find a job were suppressed by her husband.  A year before her husband’ decease Ingeborg had a sudden idea to try trading on the stock exchange, but she did not have any initial funds to start with.  However, after her husband deceased she came to know that he had acquired a thousand of securities of some companies’ group. This is what happened to be Ingeborg’s start-up capital.

Since then Ingeborg was destined to success. For the first year of working on the stock market her capital had a 100% gain and it increased further by 130% for the following year.  She managed to earn a million euros for 8 years. Ingeborg does not spend her savings: she prefers to invest them into trading. What she lives on is stock dividends.

At presents, Ingeborg Mootz is one of the most well-known people in Germany. She wrote a book, containing the detailed description of her trading technique, interviews with her and other useful material. She provides instructions to everyone, particularly to retired people, on how to easily make money on the stock market.

Operating on the stock market, Ingeborg always observes several well-pronounced rules. First, she does not invest her money but in bank securities. Second, Mrs. Mootz never joins investment funds or capital accumulation programmes offered by banks. As Ingeborg says, banks are the last to be dependent on fluctuations of supply and demand; they are not troubled with insufficient or unstable cash flows, so they are always capable of paying considerable stock dividends.

Ingeborg is happy to share her knowledge with all those concerned and interested and she also calls for all retirees in Germany to dare and to put an end to tastless life, resting on the state support only. What she offers to them is beginning to master their fate themselves by making profit on the stock exchange.

Added by Anna Shubina ,
InstaForex Clients’ relationship manager

23.02.2011 Post in Trading

Further to our topic dedicated to successful women traders we would like to present the story of Cynthia Kase.

Cynthia Kase got acquainted with trading in August 1983 when she had to undergo a training program in the trading department of the company she was working in. It happened the same year when a contract for crude oil became available. Cynthia persuaded the company to install a compute in the trading room. Cynthia was experienced in computer technologies due to her technical education.

The first and the most important thing about trading realized by Cynthia was that in order to succeed on the market on should act separately from the crowd. Cynthia said several times: “You cannot listen to everybody. I think it is important to be focused, have enough sleep, stay calm and everything will fall into place. It is wrong to always be worried.”

At the moment Kase considers herself an absolutely technical trader, despite the fact that she has been a technical trader since 1985. Further Cynthia Kase starts to develop her own technical indicators that she offers to her clients. At present she is trading for herself and consulting about thirty corporate clients. Kase has developed and indicator – PeakOscilltor – that can use cross-comparison of markets and Dev-Stop – a technology of setting stop orders in accordance with market volatility. Kase has published three articles in Futures Magazine, where she described the technical indicators in details.

Since the first day on the market Kase has not employed intraday trading. Her average deal lasts for 3-10 days. Cynthia Kase prefers energy markets, at the same time she highlights that her technical indicators are suitable for all markets. She also favours physical futures over financial ones, since futures depend on unconditioned and political factors.

Besides, Cynthia Kase says that “There are three most important things. First, you should not listen to someone else’s advice. Second, there is no easy way. You cannot find the Holy Grail. Diligent work and persistence make a successful trader. And third, this should bring pleasure.”

Added by InstaForex Staff

Prior to the International Women’s Day we will tell you about successful female traders who reached success on the financial markets and earned fame.

The first one in our list of successful women – Lora Pederson.

Laura Pedersen – trading genius

Laura came to Wall Street at the age of 17. Her age did not allow to take part in “adult” games. However, she made an agreement with her employer that she would be a non-staff worker. But she started playing. At 24 years old she managed to earn 1,5 million dollars.

Being young Lora was selling tomatoes at her mother’s farm, in that period a remarkable business talent was disclosed. Later she started playing poker quite well, put money on a horse and never made a mistake. At 10 she asked to present her the shares of Coca-Cola Company. At the age of 14 Laura went to New York on excursion to the American Stock Exchange. She left study at the Michigan University in the first year, as she did not see any practical benefit in getting the higher education.

Since 1984 Laura started working as a clerk earning just a small amount of money. The point of her job was in replacing the traders who were going on vacation. She learned fast to participate in virtual wrangles. Her parents were violent opponents of their daughter’s activity, but for 4 years work at the company she made her employers richer by 5 billion dollars. Even in the period of a total downturn she managed to gain 100 million dollars.

However, her career finished as precipitately as it started. The doctors found a serious disease recommending her to leave the job.

Later she wrote a book “Play Money”. Her book has become a triumphal epitaph of live trading craft left in order to please the omnivorous technological monster of electronic commerce.

Added by Anna Shubina ,
InstaForex Clients’ relationship manager

20.01.2011 Post in Trading

When analyzing the market a trader should decide whether he wants to trade up or down. Besides, the amount of money invested in the deal should be defined. Finally a trader should choose between buying and selling of a contract.
Importance of determining the precise moment to enter or exit the market makes this part of margin trading the most complicated. The decision on the moment of market entry must be based on the combination of technical factors, money management and order type.
The process of determining the moment for entry or exit is characterized by short term and measured not by weeks and months, but by hours and even minutes. But in all cases the same technical tools are used. Major principles of such analysis are listed below.
1. Tactics based on Price Breaks.
There are three ways of trading with the help of price breaks:
closing the position in advance;
opening a position when the break is in progress;
waiting for a rollback after break.
Each approach has many advantages and disadvantages; therefore sometimes a combined approach is used. When working with several lots, a trader can open one position at each of the three stages. Besides, a trader might open a small position before the estimated break, and then open additional positions at an insignificant price decline during correction that follows the break.
2. Trendline Cross
This signal allows a trader to enter the market or to leave it soon enough, especially when a significant and reliable trendline has been crossed. Of course, other technical factors should be also taken into consideration.
3. Support/Resistance Levels
A break of the support level can be a signal to open a long position. The stop loss signal can be placed below the nearest support level or below the break level directly, which will perform a supporting function in this case.
Price decline to the support level during an uptrend and advance to the resistance level during a downtrend can be used to open new positions and add lots to already opened profitable ones. When setting stop loss signal, it is important to take support/resistance levels into account.
4. Gaps
Price gaps formed on bar charts can also be used to choose the proper moment to open or close positions. The stop loss can be placed below the gap. During downtrend a short position should be opened when prices reach the lower border of the gap. The stop signal must be placed above the gap in this case.

5. Averaging
Averaging is a trading strategy employed when a trader has made a mistake or opened a trade and the price has moved against him/her. In this case a trader performs a new operation of the same type but at a more profitable price. However, averaging has a drawback – no one knows beforehand to what price the market will go against the trader. And the averaging demands to each time invest a double amount of the money invested before.
6. Scalping
Another trading strategy, scalping, is usually employed by trader working with very short terms – one minute or five minutes. If the price goes up the trader buys, in case of the reversal he/she sells. As a rule, the trader performs about 15-20 deals a day.
The drawback of this tactics is that the trader should always watch the market and cannot divert his/her attention from the charts.
We have described the most popular and well-known trading tactics, but the choice is always up to the trader. Maybe you will choose a strategy and switch to a more suitable later on.

Added by InstaForex Staff