Today the ES (S&P Futures) contract dropped over 50 points as of 1:45pm EST and has left many scratching their heads in awe. If you were watching the news this morning which preceded the large decline, you’d hear that many talking heads were impressed with the presidential speech to the United Nations. So how is it that the US financial markets have shown a momentum decline?

The simple answer is; it doesn’t matter! In our daily training room, we discussed our wants (new highs) and why we would NOT enter based on this information. Furthermore, we discussed our methodical approach which dictated the only option was to sell the market at that time.

I cannot count the times that I've been asked the question "If too many people learn supply and demand trading rules, will it stop working?". The simple answer is absolutely not but let's look at a few of the many reasons.

Trying to find levels of supply and demand on a price chart is not an easy task. Especially given the fact that most individuals have their own unique personality for trading, such as risk management, time frame, asset class, confirmation type (if any), confluence measures and others. Below I will address two ways that will hopefully assist in how to locate these areas to generate a zone.

Validate Order Flow

There are endless ways of thinking about the financial markets; for the sole purpose of this article I would like to focus in on only two, specifically regarding technical (trading) vs fundamental analysis (investing).

Technical Vs. Fundamental Analysis

The issue of cash holdings generates debate between investors and operators. While some consider it an essential component of a well-planned investment strategy, others believe that it is not necessary to maintain cash within an investment portfolio.

Assess the Role of Cash

Before we go into the issue of cash in the context of an investment strategy, it is essential to assess its role in terms of personal financial planning. It is usually recommended to have the cash available to finance immediate personal expenses. For people who may face sudden expenses in areas such as health or other emergencies, it is advisable to plan and keep funds available in the form of liquid cash.

Investors can use Fibonacci ratios in predicting future price movements. The ratios are derived from the Fibonacci series, which were named after an Italian mathematician named Leonardo Fibonacci who lived around 13^th century AD.

Every term in the Fibonacci series represents a sum of the preceding two numbers (1, 1, 2, 3, 5, 8,13,…). An interesting feature of the Fibonacci series is that each number after 1 is about 0.6 times greater than the following number. The ratio between the two numbers in the Fibonacci series is termed as the golden ratio.

What is a Hedge Fund?

Hedge Funds are private capital reserves for investment with the flexibility to buy or sell a wide range of assets. It is basically a name for an investment company. The purpose of a hedge fund is to maximize investor returns and reduce risk, hence the word ‘hedge’. It aims to benefit from market failures rather than relying purely on economic growth for performance. These funds are very illiquid, in particular by limitations on redemption and ceilings for withdrawal.

Key strategies of hedge funds

There is no universal formula, and the types of investment strategies pursued by individual Hedge Funds are extremely diverse.

Technological advancements have contributed a lot to the evolution of the trading landscape. The way stock trading is done today represents a radical shift compared to the bygone era when brokers screamed and made hand gestures on the trading floor.

Majority of trades today take place electronically with the push of a button at both the institutional and the individual level. Billions of dollars exchange hands in cyberspace within milliseconds. In this article, we will look at how stock exchanges have evolved and the manner in which stock trading has progressed from in-person to electronic within a span of a few decades.

A stock portfolio watch list consists of a basket of stocks that investors can watch like a hawk. The watch list provides timely information on different financial securities that can be used in making smart financial decision.

By creating a stock watch list, you will be able to monitor changes in price every single trading day. You can even receive emails on major price movements and relevant breaking news relating to the stock. The watch list can help you keep up-to-date with the performance of your stock portfolio.

Investors use indicators to gauge the value and growth potential of an investment instrument. It can be anything that can help in predicting future financial value of a financial asset. While the concept is simple enough, it’s surprising that a number of investors don’t know the correct manner to use indicators to predict the trends.

In the context of financial investment, indicators can generally be grouped into two types: leading and lagging indicators.

Today around 73 percent of equity trading in the US is being carried out using high-frequency trading. High-frequency trading seems mysterious, and somewhat scary, particularly for beginner investors. The words ‘high frequency’ itself conjures an image of bespectacled individuals in gray suits sitting in front of a large computer screen and engaged in a trading frenzy.

But the reality is far from this.

Most new investors consider investing to be a walk in the park. Being overconfident in their ability to invest, they end up making costly mistakes that result in loss of thousands of dollars. The reality is that investing in the corporate world is like sailing on a boat in an ocean full of sharks that can gobble you up if you make a mistake and slip from the boat.

Here are 5 things that you should know if you are starting the journey anew in the cold and somewhat frightful world of investment.

The most common problem traders face when reading technical charts is determining the right profit- taking and stop loss points. The market ‘noise’ caused due to short-term volatility most often triggers a panic response due to which traders exit the trade prematurely. By cutting out of winning trades early, they are not able to make the most of the opportunity, and capitalize on a larger return.

Wouldn’t it be great if the technical chart could filter the market noise caused due to price fluctuations allowing you to make optimal trading decisions?

The saying, “Don’t put all your eggs in one basket” has long been considered an effective risk management technique. By diversifying the portfolio, the investment amount is spread out among different assets resulting in higher long-term returns for less risk as compared to committing the amount in a single asset.

As obvious as it may seem to appear, a lot of day traders do not consider investing in alternative markets. This is due to either lack of knowledge about the benefits of diversification or fear of applying a day trading strategy on anything other than the stocks.

Every active trader looks to maximize investment gains. And one way to achieve this aim is by ensuring that Uncle Sam gets to take a minimum share of the revenues. While there are several strategies you can implement to reduce the tax burden, one effective strategy that not many traders may not know about, is by creating a limited liability company (LLC).

Apart from saving on taxes, there are many other benefits for traders to carry on the investment activities as a registered entity, which we will briefly discuss in this article.

While the world is still recovering from the aftermath of the economic downfall that struck the global markets in 2008, less than a decade later, it is quite probable that the U.S., along with the rest of the world, is heading straight into yet another recession.

There have been numerous predictions since before the beginning of 2016 for an impending depression in the world economy. The World Bank and the IMF predicted low GDP growths for developing countries after which they revised their expectations for global growth to accommodate a downward trend.

What is a 401K?

The 401k is an employer sponsored retirement savings plan. It allows employees to invest and save part of their pre-tax salaries. The money placed into the 401k is typically invested into mutual funds spread over stocks, money market, and bonds.

When your hard earned money is on the line, being completely rational isn’t easy.

In an ideal scenario, an investor should always "buy low and sell high", but things don’t always work that way and market dynamics often prove to be far more complicated than we expect them to be.

One of the world’s oldest forms of investment is commodities. It is good practice for a long-term portfolio to consist of trading in commodities, even if it’s only a small percentage, because they remain relatively free from the chaos of individual stock shares. With the latest bull market approaching the 90-month mark, investors should consider whether they need to invest in something more tangible prior to the next bear market.

What does a commodity add to an investment portfolio?

The commodities market allows investors to put their money into something that is more likely to recover any lost value. A company can go out of business, but commodities like gold and silver will most likely always be in-demand. Commodities like water will most definitely, always be in demand. Therefore, investors know they can extract their wealth once the market recovers.

Mutual Funds and Exchange Traded Funds [ETFs] have many similarities, however Exchange Traded Funds were developed more recently to offer modern advantages and flexibility, especially to active investors.

The first successfully released ETF was the "SPDR" (S&P 500 Depository Receipt, commonly referred to as the "spider") in 1993. Mutual Funds have much more history dating back to the 1920's, before the Great Depression.