By Chris Ebert

kid-pianoWhen I was an engineering major in college some decades ago, I was forced to take a course in music (against my will) as an elective in order to graduate. For my term paper in the course I researched why certain sounds seemed pleasing to most people, while others most would consider displeasing.

In the past 30 years since, I have pondered why there seem to be some naturally occurring patterns that tend to be pleasing. Upon becoming a trader I realized the pleasing nature of patterns did not just apply to music – just ask any trader who uses Fibonacci.

There are days when the stock market seems to act like a two-year old hitting random keys on a piano, and others when it plays like a professional concert pianist. The better part of my last 30 years has been spent waiting for the days when I can hear the concert pianist, because that is the best chance I have of hearing something pleasing. Moreover, If I know the rest of the audience is enjoying the music, there’s a much better chance the song being played is somewhat predictable, as opposed to the two-year old banging randomly on the keys – those are days I try to avoid trading.

The preceding is a post by Christopher Ebert, author of the popular option trading book “Show Me Your Options!” Chris uses his engineering background to mix and match options as a means of preserving portfolio wealth while outpacing inflation. Questions about constructing a specific option trade, or option trading in general, may be entered in the comment section below or emailed to OptionScientist@zentrader.ca

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By Kim Dawkins

There are so many ways of trading that deciding between them can be challenging. CFDs are a popular method of trading.

Contracts for Difference (CFDs) have been in use since the early 1990s. CFD is where two parties (a buyer and a seller) agree to exchange the difference between the opening and closing price of a contract. It isn’t necessarily a prerogative of the trading room floor. Last year the Neart na Gaoithe offshore wind farm struck a deal with the National Grid. They were awarded a 15 year CFD subsidy meaning that their production of electricity had a strike price linked to the rate of inflation.

Considering how political events can affect the commodities on which CFD trading is based is as good a way as any of explaining the concept.

Let us suppose that our trader looking at the US presidential elections exit poll considers that Donald Trump will win. They find a company Acme Products which has 90% of its export trade with the USA. The trader decides that this is going to negatively impact on the share price of the company and so sells 1000 share CFDs at the current price of 1430p.

Three or four things can happen.

  1. The exit poll is correct. Trump wins. Our trader buys the shares back at the new buy price which is 60p down with a gain of £600.
  2. The exit poll is correct. Trump wins but surprisingly the share price rises to 1440p. The trader opines that the price will continue to rise and so buys back the shares at this price, closing the position. There is a resultant loss of 10p per share and the trader is down £100.
  3. The exit poll is wrong and Bill Clinton is the new First Lady, sorry Gentleman. The share price rises to 1500p resulting in a loss of 70p per share. Our trader has just lost £700.
  4. The exit poll is wrong and Hillary Clinton becomes the first woman president. The FBI releases some incriminating emails and the share price plummets to 1320p. Victory is grabbed from the jaws of defeat and our trader gains £1,100.

(more…)

By Chris Ebert

Ordinarily there is little advice a television evangelist can offer a trader. However, in one such broadcast recently, an evangelist made the following remark.

I paid $90 for a book written by a 70-year old man. Why? Because, what it took him 70 years to learn, I’ll know in three hours.

There are very few professions in which one can practice for a lifetime and still continue to learn. Certainly experience is an asset in any line of work; but it is also true that most occupations have a limited scope that allows one to master the skills of the career over a period of a few years.70-years3

Exceptions to the rule are occupations such as law or medicine, for example, in which the scope is so wide that even after a lifetime it is not possible to master every aspect of the field. Trading fits into that category.

Just as a doctor can’t specialize in every aspect of medicine and be expected to be a master of each specialty, neither can a trader be expected to do so. There are just so many products to trade, it is impossible to be an expert in all of them.

It is difficult enough to master the stock market. Then there are currencies, derivatives such as futures and options, and even options on futures. Within the derivatives market there are subsets relating to different facets of the industry, for example commodities or equities, and among those are countless different contracts.

Even if a trader attempts to keep things simple by only trading a single instrument, such as shares of stock, there are different methods of trading. Some traders use technical charts, others trade more by corporate fundamentals. And even among those there are different subsets ranging from day-traders to those who prefer long-term buy-and-hold positions.

It is not inconceivable that there are perhaps a million ways to trade. Therefore it makes sense that (more…)

By Damian Johnson

2016-10-18_1737For instance, it may seem that the Gaming Commission of Kahnawake should be sad because it no longer takes bets from the United States residents on their online casino sites it at its information center.

However, the Montreal South community of First Nations says that they see this agreement. The compact was made with the State of New Jersey this past week to recognize its status as a universal online casino regulator and the opportunities that lie in the future of the commission.

“We are all brought to the vanguard,” Said Chief Joe Norton in a conference. “What it creates is a kind of understanding and recognition which brings a significant impact in the world of online casino.”

The Gaming Enforcement under the New Jersey Division has been in collaborative talks with Kahnawake since October 2015. These talks were revealed to the masses by the New York Times. This release states that the firm managed its information center, continent number eight, might have rendered services to gambling sites whose operations are based in the State of New Jersey.

However, online gaming in the state is regulated. This is one of the states with tough regulations in online gambling sites after Delaware and Nevada. Off-the-vendor sites offering gambling services in this states are considered illegal under their laws>.

It was not until this past week when Kahnawake had no restrictions on their online markets that were targeted by government licensees. This has allowed the United States facing casino websites to carry out their operations without licenses in the southern border. (more…)