 
:: NAVIGATION ::
:: TRADING ARTICLES
::
|
Article Contributed by Larry Potter
Feature
Article
Top Tips For Pension Transfers!
If you're considering a pension transfer, then these tips could
help you in the transfer process.
1.Find an Independent Pensions Transfer Advisor
Pensions law and regulation is so complex and changes so
rapidly, that you really do need good advice when it comes to
transferring your pension. An independent advisor isn't tied to
any particular product, and has access to all the...
Program Trading
Wizened Wall Streeters say that you'll have more investing
success if you remove emotion from your buy and sell decisions.
Perhaps the most emotionless approach is program trading.
This is a generic term used to describe trading in stocks,
options and futures based on price relationships and not on the
underlying fundamental strength or weakness of the company or
index. If you see the DOW suddenly turn from plus-50 to minus-50
without big-time breaking news, it's probably the result of
program selling. The same goes if a declining index spurts into
positive territory within the span of a few minutes; that's
likely a buy program hitting the market.
That's what happened Thursday, November 20, 2003 in the final
hour of trading. The DOW and NASDAQ were nicely green when a
sell program hit. Down they went, and by the close the DOW was
down 71 and the NASDAQ off 17.
It's completely legal and performed by all the major
institutions. They have the capability to dump millions of
shares in a sell program; conversely, they'll grab millions of
shares in a buy program when they are in an acquisitive mood.
The trades are usually triggered automatically at specific price
or technical levels like the 50-day moving average or DOW
10,000. The trigger point is often chosen many days earlier. The
computer does the work. It's the ideal "set it and forget it"
style of investing.
Many times program trading sets the stage for a strong or weak
open to a trading session at the NYSE or NASDAQ. If you read in
our e-mails that the S&P futures are soaring well ahead of fair
value in pre-market activity, the odds are that institutions
will automatically sell the futures at the open and buy the
underlying stocks to set the stage for a big gap higher. The
same can happen in reverse if the futures are collapsing.
If you hear a reporter on a financial station talk about
"rotation" from one sector to another, he's probably referring
to one or a series of programmed moves. In that case, the
institutions have picked a certain price level to shift from,
say, cyclicals to small caps. The swap usually impacts most of
the stocks in those sectors.
The sudden appearance of a buy program or two can also create a
"short squeeze" in which traders decide to buy shares of stock
to cover an eroding short position. The increased buying
pressure, adding to the programmed buying, can dramatically
increase the upward momentum.
Dueling buy and sell programs were staples of the 1990s bull
market when volatility often ruled the exchanges. Even today, as
much as 30% of NYSE daily activity is pegged to program trading.
Whenever the market begins to rally, you may see more of this
volatile action.
About the author:
For a FREE report on HOW TO TRADE FAST, enter your email address
at:
http://lb.bcentral.com/ex/manage/subscriberprefs?customerid=12826
Feature
Article
Relocation And The Currency Market
As we all know, there are many important areas to be considered in the process of relocating. From the physical removal of household goods, to settling children into new schools, there seem to be an endless number of items to check off on a relocation ‘to-do’ list. Yet as a currency specialist we continually find that the all important purchase of the employees local currency is often...
|
|
