Factors That Affect EFT Liquidity

Exchange traded funds (ETFs) are considered among most liquid trading instruments, especially when compared against mutual funds. But different ETFs have different levels of liquidity. Below are some factors that affect the liquidity of these funds. Underlying Asset: ETFs which have less liquid equities as there underlying assets are usually less liquid than those have liquid equities as underlying asset. Diversification: ETFs which invest in broad diversified market indexes are usually more liquid than which invest in specific sectors. Market Capitalization: ETFs which invest in large-cap stocks are usually more liquid than mid-cap and small-cap tracking ETFs.

Bearish Evening Doji Star Pattern

Bearish evening Doji star pattern is one of the most reliable Japanese candlestick patterns which indicate a possible trend reversal. This candlestick pattern includes three candlesticks; often formed at the top of an uptrend and indicate a possible downtrend. Evening Doji star pattern is widely followed by all types of traders trading all types of financial instruments. The requirements of a bearish evening doji star pattern include, It should be formed after a significant uptrend. First day is should be bullish characterized by a long white (colorless/bullish) candlestick. Second day is the day of uncertainty which result in formation of a doji star (where opening and closing prices are almost equal).

What are Related Trade Orders?

Related Trade Orders, sometimes known as Contingent Trade Orders, are complex trading orders which are created by combining two or more orders. They comes handy when trader want to execute or not to execute the orders (the second or third order) when a specific condition is met. There are mainly three types of related trade orders. IF DONE Orders: Also known as slave orders. These are orders in which the second order or slave becomes only active when the first order is executed. Eg: first order to buy a stock on reaching a price level and the slave order to sell it on reaching another price level. OCO (One Cancels Other) Orders: These are related trade orders in which execution of one order automatically cancels the other.

Trading apart from the crowd

Trading apart from the crowd is the only way to consistently profit in the stock market. History has shown that the majority of people are wrong, the majority of the time. Trading apart from the crowd is the only way to consistently profit in the stock market. History has shown that the majority of people are wrong, the majority of the time. Even so, it is human nature to follow the crowd. That has helped us to survive when we were hunters and gatherers. It was either eat or be eaten and if you are in a big group you aren"t going to get eaten. There is something to the strength in numbers after all. But in the world of the stock market following others only leads to disaster.

Weekly Stock Market Letter, 3 November 2008

The Week Ahead: A continuation of the see-saw action in stock prices is likely as November trading begins. One positive for consumers despite record low sentiment numbers is the rapid decline in oil prices and therefore gasoline at the pump. All eyes are on Election Day this Tuesday. Any surprises will only help to create more up and down volatility. Factory orders will also be out on Tuesday. On Thursday chain store sales will hint at any consumer vitality. Finally, by Friday, another potentially problematic employment report is released. Stocks to Watch: Wynn Resorts Ltd. (WYNN) beat earnings estimates for Q3 even though they were lower than a year ago, but the stock has already more than doubled its recent low from just 5 days ago.