Day Trading Blog

Welcome to Day Trade The World™ day trading blog. Please click on an article to read it.

Blog del 18 settembre

Useful Tips to Start and Run a Successful Trading Floor

Useful Tips to Start and Run a Successful Trading Floor – Introduction

At Day Trade the World, we specialize in trading floors. To date, we have trading floors in many countries. Most of our traders have achieved significant success with many making hundreds of thousands of dollars every week. We have operated for more than ten years. During this time, we have had the chance to interact with many trading floor owners. Some have made it while others have not been very successful. In this article, I will highlight a few tips that will be very important for you as you start and run your trading floor.

  • Start early

One of the most important tips I will share today is on the need to start your trading floor early. Most of our trading floor partners started their floors before they hit 30 years old. By starting their trading early, the traders were able to experiment different things. Some succeeded while others failed. Some of those who failed ventured into other careers where they achieved success. Therefore, the earlier you start, the better it is for you.

  • Have a plan

When starting a trading floor, it is very important to have a short-term and long-term plan. I discourage many people from having visions about their trading floors. In fact, I discourage many floor owners from having their mission statements. This is because having these visions will hinder you from doing something tangible. Remember that anyone can have a vision but not everyone can succeed in business. Therefore, you should have a well-written plan that explains your strategy and the goal you want to achieve. Without this plan, chances are that you will not succeed as a trading floor manager.

  • Hire the best team

Having a trading floor is like having a business. A trading floor is a business. Therefore, you should do the best that you can to have the best team. Like other businesses, if you don’t have a good team, chances are that you won’t succeed. Therefore, you should do a lot of work to ensure that you hire a team that shares your vision and ideology. The team should not be made of your friends or family members. This is because you want to hire a team of people that you can fire at any time without having regrets.

  • Have a set of guidelines

When you hire your trading team, you should always ensure that you have set guidelines. The guidelines will be the guiding principles of your floor. For example, your guidelines should indicate the rules of engagement with the traders. They should also define the specific consequences of failing to adhere to the rules. For example, if a trader fails to come to work in a certain day, the guidelines should state clearly what you are supposed to do. These guidelines will help you fire traders who don’t meet a certain criterion.

  • Conducive environment

You don’t want to spend a lot of money on the trading floor. For example, you don’t need a fancy address to house your floor. However, you want you and your traders to have an excellent time. The best way to go about this is by using the small space that you have and optimizing it. For example, several of our traders have converted their garages to effective trading floors. Others have converted their spare rooms in their houses as their floors. In short, you don’t want to increase your costs to run the floor.

  • Mentor the traders

As a floor owner, you want the best of your traders. You want them to succeed. This is because when they succeed, you succeed as well. When they fail, you also fail. Our research shows us that trading floor owners who motivate their staff are often more successful. It doesn’t need to be much. You can spare a few minutes every week to talk to your traders. To give them hope. To show them that you appreciate them. To reach out to their families. To buy them lunch. To go to bonding trips. By doing all this, the traders will have a special place for you in their heart.

  • Remunerate your traders fairly

The reason the traders are working for you is because they want to make money. Some want to pay their bills. Others want to pay their college fees and others want to buy a car. Therefore, it is very important to remunerate them fairly. Apart from their retainer, you should do whatever you can to give them bonuses depending on their performance. By doing this, they will be highly motivated to do more for you. Remember, if you fail to remunerate them well, they will soon go to other traders who will pay them better.

Useful Tips to Start and Run a Successful Trading Floor – Useful Tips:

Blog del 18 settembre

Cybercrime: How to Trade and Protect Yourself

Cybercrime: How to Trade and Protect Yourself – Introduction

Equifax is one of the three biggest credit bureaus in the United States. The company is a member of an oligopoly that controls the credit industry in the United States. The other companies are Experian and TransUnion. Two weeks ago, Equifax announced that its systems had been hacked and data of more than 143 million Americans stolen. The data which was stolen includes users email, phone numbers, and social security numbers. The hackers will sell this data to other users who will use the data to make transactions illegally. The crime came a few months after Yahoo announced a similar hacking which exposed millions. Experts believe that this type of crime will continue. Traders like you will be affected.

How to trade Cyber-Attacks

As a trader, you can benefit a lot from cyber-attacks. This is because companies react significantly when the news is released. In Equifax’s case, you expect the company’s stock to fall as investors react to the situation. Politicians in congress have called for an investigation. Because of the magnitude, other agencies are also looking into the issue. The chart below shows how the company’s stock has reacted to the news. As you can see, Experian’s stock dived. The same move was replicated to that of TransUnion which also fell with fears that hackers might target it next. In the long term however, I believe that TransUnion will recover because it was not directly associated with the attack.

After shorting the company, you should now look at going long cybersecurity companies. When there is such a massive cybersecurity issue, chances are that people and organizations will take measures to prevent future attacks. This is because all companies are vulnerable to such attacks. Therefore, you need to look at buying opportunities in the cybercrime areas. As you can see below, companies dealing with cybercrime saw their shares appreciate after the attack.

After making money making these trades, you need to learn how to protect yourself from being hacked. You can do this by following a few strategies. If big companies which have allocated billions of dollars to cybersecurity can be hacked, what about you?

First, you need to have a very strong password for all of your transactions. You should create your passwords with cybercriminals in mind. The problem with many people is that they use passwords that are easy to guess. Some of the most common passwords are: 12345678, password, qwerty, and google. To stay safe, you should avoid using these passwords. This is because hackers always try them when they want to hack you.

Secondly, you should avoid repeating the same password for all your transactions. This is a common problem among many accounts. They use the same passwords for multiple of their accounts. A good way to avoid this is by using several apps that help you prevent this. A good application for this is called Keeper. It creates for you strong passwords that are difficult to hack.

Third, you should be very careful on the websites you visit and the things you download. During the American election, Wikileaks released thousands of emails from Hillary Clinton’s campaign manager. It was reported that the manager had previously received an email with an attachment. After he received the email, he downloaded the attachment which the hackers used to access his email. Therefore, you should do the best you can to always evaluate every detail that you download.

Finally, you need to have a very strong anti-virus in your computer or mobile device. The antivirus that you use should be updated regularly. You should make it run in the background. Doing this will help you stay protected all the time.

Remember, a single mistake can leave you and your trading floor exposed to the hackers. Remember that you don’t have the benefit of having billions of dollars to stay protected.

Cybercrime: How to Trade and Protect Yourself – Useful Links:

Blog del 8 settembre

Nordic Markets Auction Behavior Change

Thursday, September 7, 2017, the close auction order acceptance time for the Nordic markets (Helsinki, Stockholm, Copenhagen, and Oslo) ended 15 seconds early.

This change is being done to improve our handling of close auction orders. Orders sent after the times below will be rejected.

Adjusted Close Auction Times
  • Helsinki: accepts orders for the close auction from 11:25:00 to 11:29:45
  • Stockholm: accepts orders for the close auction from 11:25:00 to 11:29:45
  • Copenhagen: accepts orders for the close auction from 10:55:00 to 10:59:45
  • Oslo: accepts orders for the close auction from 10:20:00 to 10:24:45

We would also like to remind all traders that Limit orders entered to participate on European markets’ close auction must be entered within 5% of the last trade or the order will get rejected.

If you have any questions or comments, please create a mojo.

Mancato blog del 4 settembre

Time to Rethink the Financial Outlook for This Year

Time to Rethink the Financial Outlook for This Year – Introduction

Early this year, I penned an article on the United States and the economic implications. At the time, I looked at Trump’s new administration and saw the policies he wanted to implement. I then suggested that the economy and business will do very well. Now, I am changing my outlook.

Yes, the economy has improved significantly. The stock market is near an all-time high and investors have made a lot of money. However, risks are increasing every day. North Korea is testing its nuclear missiles. Donald Trump has failed to achieve a single policy matter, almost a year into his presidency. Dysfunction in Washington is very high and most Americans don’t trust their leaders.

The same risks are increasing in other places. In China, the economy is strengthening but not in the pace that I outlined in my article in January. In Europe, I never anticipated a re-election which was called by Theresa May. The ongoing Brexit negotiations are not progressing well with Britain’s team looking more dysfunctional. In the emerging markets, the countries are engulfed in huge political activities. For example, Jacob Zuma of South Africa has survived a vote of no confidence more than two times.

The stock market in the United States has done very well. The same is true in the stock markets of other developed countries. In Germany, United Kingdom, and other Asian countries, the markets have performed exceptionally well.

The first reason why I am changing my outlook for the year is because of the crisis in the Korean Peninsula. In January, I was optimistic because I believed Trump would use his business experience to negotiate a deal with North Koreans. I also expected him to hire experienced professionals who would help the country negotiate a good and lasting solution in the peninsula. However, what we are seeing now is not what we expected. Trump has failed to negotiate a deal. He has also continued to isolate himself which makes making a deal impossible.

The second reason is that the Fed has not normalized the interest rates as I expected. Early this year, the indication was that the Fed would normalize about four times. However, I believe that will not be the case. Inflation is significantly low and the political and geopolitical risks are increasing. The dollar has continued to weaken against the major currencies. This, coupled with the hurricane Harvey that recently happened will not be a good indicator of more rate hikes. Therefore, I believe that the federal reserve will not hike rates more time which could have significant impacts on the markets.

Third, there is the issue of crude oil. As I have mentioned before, crude oil is the most important resource in the world. Early this year, my projections was that the crude oil would rise as OPEC countries moved to reduce their outputs. However, oil has traded at a range of between $45 to $56. This seems to be a new normal in the oil markets. Therefore, I believe that the oil price will end the year at this range, and not between the $70 to $80 range I suggested.

Gold is an important commodity this year. It has gained significantly as more risks in the markets have increased. For sure, although I recommended owning gold for years, I did not expect it to gain the way it has today. The same is true for bitcoin and other cryptocurrencies which have gained significantly this year.

Time to Rethink the Financial Outlook for This Year – Useful Tips:

  • Please, go to IG for further information;
  • To find out more, visit Deloitte;
  • Discover another challenging reading on Forbes.
Blog del 4 settembre

How to Trade the Emerging Markets Profitably

How to Trade the Emerging Markets Profitably – Introduction

If you are reading this, chances are that you have a lot of interest in the financial market and global economics. If so, chances are that you have heard the talk about the emerging markets or EM. Investors and analysts have always talked about the growth and the risks of emerging market countries.

As asset classes in the developed markets become pricey because of factors like quantitative easing, several investors have moved their funds to emerging markets. Emerging market economies include countries like India, China, South Africa, Nigeria, and South Korea among others. These are the countries that investors believe will be leading in the next few years.

As a trader, it is also possible to trade the emerging markets profitably. However, you first need to understand the risks that exist when investing in these countries. The main factor that you should understand is political risks. In most of these countries, the political risks are so much that many investors have lost money. For example, in South Africa, the current president has survived a vote of no confidence about two times this year. There is a lot of civil strife in the country as many natives fight against the immigrants who they accuse of taking their jobs. In South Korea, there is the issue of corruption that led to the removal of the then president and the jailing of the Samsung heir. The country is also exposed to North Korea conflict. In Russia and Nigeria, the countries are suffering the effects of low oil prices which have affected the economy.

Therefore, the emerging countries are risky places. Most of these economies depend on single sources of income. For example, Saudi Arabia, Nigeria, and Angola depend on crude oil while South Africa depends on the mining sector. They are not as diversified as the developed countries like Britain and United States.

However, despite the risks, it is possible to make money in the emerging markets by buying instruments like currencies, commodities, and stocks from their countries. The benefit of doing this is that the high risk brings about new opportunities that traders can take part in. For example, as the oil prices remain low, it creates opportunities to buy depressed companies at a low price. Then, when the recovery starts, you can make money as their prices race.

In fact, when the problems in the commodities market started in 2015, many investors exited these markets and went to the safer havens in the United States and Europe. Thus, they abandoned some of the best investments in search of yield.

It is also possible to trade the emerging countries currencies. As you can see below, the Mexican Peso was beaten down when it became clear that Trump would win the election. During the campaign, he had bashed the country, calling its people rapists and murderers. However, as the risk of Trump declined, so did the Mexican peso which has performed really well against the dollar as you can see below. You can apply this logic to other currencies. For example, you can be a contrarian and buy the South African rand which has been beaten down after the recent political instability.

You can also buy the bonds of some of these emerging countries. In the bond market, investors tend to buy bonds of countries that are highly rated. They ignore countries that are not highly rated. In turn, the yields of these countries go up. As a trader, you can take advantage of these risky events to trade on the bonds of emerging markets countries.

How to Trade the Emerging Markets Profitably – Useful Tips: