THE MARKET ENGINEER

What Are Futures? Investopedia defines futures as a financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to… Continue reading TME 021: Futures Trading

What is Trend Following? Trend following is a trading strategy that tries to profit from trends in the market. A trend follower makes money when they follow the trend of a particular market. Trend Following can be done by big time banks on Wall Street or by online stock trading of an individual. If you… Continue reading TME 020: Trend Following

We hear a lot of people giving their stock picks. Some post their stock picks on the web. Some scream their stock picks on TV. Today we are going to talk about the good and the bad of stock picks.  Stock Membership Sites I was in the woods on a cool March morning. The market… Continue reading TME: 019 Stock Picks

In 2013 Gallup’s American Workplace study 70% of those who participated described themselves as disengaged from their work. So if you are reading this article there is a 70 % chance that you do not like your job. Imagine this. We spend 40 hours per week at work. There are 168 hours in a week… Continue reading TME: 018 Trading For A Living

What is the goal of any business? To make money. When you watch the news we need to understand that they entertain so that they can make money. Stock market news is no different. The people reporting on the stock market are in the business of entertaining. It might be a man that screams at… Continue reading TME 017: Stock Market News

OIL Prices So the question on many peoples mind today is how much lower will gas prices go. Personally I never thought gas would get below $3.00 a gallon again. Just the other day I saw gas for $1.88 per gallon. It is crazy. So the question was posed to me the other day “is… Continue reading TME 016: Oil Prices

What is Margin Trading?  When a trader trades using margin they are basically borrowing money to trade. Trading on margin can be very dangerous if you don’t have a good trading plan. How Margin Trading Works Margin trading allows a trader to trade more money than you have in your account. Example: Account value: $10,000… Continue reading TME 015: Margin Trading

DEFINITION OF ‘TECHNICAL ANALYSIS’ A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. We agree with most of Investopedia’s definition… Continue reading TME 014: Technical Analysis

What is a trading system? A trading system is a set of repeatable rules, that answers the following questions that a trader might have: 1) When should I enter a trade? 2) When should I exit a trade? 3) How much volatility is in the market? 4) How much should money I place the trade? 5) How much money should… Continue reading TME 013: Trading System

In 2013, an estimated 96 million individual investors owned mutual funds and held 90 percent of total mutual fund assets directly or through retirement plans at year-end. Altogether, 56.7 million households, or 46 percent of all U.S. households, owned mutual funds. Household ownership of mutual funds has remained steady over the past decade. Mutual funds… Continue reading TME 012: Mutual Funds