The Market Engineer

Today we are going to talk about paper trading.  Before we start I want to say I hate paper trading. Why? Because it is boring.  Now that I got that out of the way let’s talk about paper trading. When I became a new trader I started out paper trading. As I said I hated… Continue reading TME 039: Paper Trading The post TME 039: Paper Trading appeared first on THE MARKET ENGINEER.

Today we want to talk about two topics that could be detrimental to a trader. One is trading pride and the other is trading imagination. First let me tell you a story of a woman who was having some problems. She went to her pastor and said I need help. The pastor asked her what… Continue reading TME 038: Trading Pride and Trading Imagination The post TME 038: Trading Pride and Trading Imagination appeared first on THE MARKET ENGINEER.

So why do you want to become a better trader. The obvious reason would be to make more money. For some you might want to become a better trader so you can start making money and stop losing money. Whatever the reason we can all get better. Today we want to share ways that will help… Continue reading TME 37: Seven Ways To Become A Better Trader The post TME 37: Seven Ways To Become A Better Trader appeared first on THE MARKET ENGINEER.

Today we are going to talk about how to be a trader. The brokerage account (where you have your money) will consider you a trader if you buy and sell stocks in a certain way or a certain number of times.   Today we don’t want to talk about what the brokerage account considers traders.… Continue reading TME 036: How to be a Trader The post TME 036: How to be a Trader appeared first on THE MARKET ENGINEER.

What are penny stocks? Low priced small cap stocks are known as penny stocks. A penny stock is pretty much anything under five dollars. Penny Diving I was watching a video on YouTube or the news I’m not sure which one it was. In the video a girl was looking at her cell phone. She… Continue reading TME 035: Penny Stocks The post TME 035: Penny Stocks appeared first on THE MARKET ENGINEER.

Today we are going to talk about trading vs investing. On a side note all of our systems are trading systems. They are not investing systems. With that in mind we will try to be as unbiased as possible and show the benefits and drawbacks of both styles without bias. How To Invest There are… Continue reading TME 034: Trading Vs Investing The post TME 034: Trading Vs Investing appeared first on THE MARKET ENGINEER.

I was looking at a house the other day. I was looking at it as an investment property. The house had foundation problems. The man who came to look at the house was a foundation repairman. When he got out of the truck my perception of him was that he probably was a man who… Continue reading TME 033: Will Your Broker Make You Broker? The post TME 033: Will Your Broker Make You Broker? appeared first on THE MARKET ENGINEER.

What Is the Dow Jones Industrial Average? Today we are going to talk about the Dow Jones Industrial Average. What is the Dow Jones Industrial Average? The Dow Jones is a stock market index. It has been around since 1896. The Dow Jones index shows how 30 large public companies trade during a session. The… Continue reading TME 032: Dow Jones The post TME 032: Dow Jones appeared first on THE MARKET ENGINEER.

I remember eating with the family as a child. The news was on and they were talking about the stock market. My dad had money in the market so he was listening intently. The year was 1987 the date was October 19 and it was a Monday. It is also known as Black Monday. The… Continue reading TME 031: 1987 Stock Market Crash The post TME 031: 1987 Stock Market Crash appeared first on THE MARKET ENGINEER.

Market Trends We have talked a lot in the past about trend following but how do we find market trends? We can talk about a method all day long but it would also be good if we talked about how to do it. Markets trend up and they trend down. How do we find those market… Continue reading TME 030: Market Trends The post TME 030: Market Trends appeared first on THE MARKET ENGINEER.

What is An ETF? An ETF or Exchange Traded Fund is a marketable Security. An ETF can track an index, a commodity, a bond, or a basket of companies. ETFs typically have lower fees than mutual funds. They trade like stocks. The price of an ETF changes throughout the day. What is ETF Trading? If… Continue reading TME 029: ETF Trading The post TME 029: ETF Trading appeared first on THE MARKET ENGINEER.

What is Risk Management
? Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
Risks can come from different ways uncertainty in financial markets, threats from project failures, legal… Continue reading TME 028: Risk Management The post TME 028: Risk Management appeared first on THE MARKET ENGINEER.

What is Volatility?  Volatility defined A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. INVESTOPEDIA EXPLAINS ‘VOLATILITY’
In other words,… Continue reading TME 027: Volatility The post TME 027: Volatility appeared first on THE MARKET ENGINEER.

Today we are going to talk about short term trading. Short term trading can mean different things to different people. We are going to talk about short term trading the way we use it. The day trader would be considered a short term trader but that is not what we want to discuss today. We see… Continue reading TME 026: Short Term Trading The post TME 026: Short Term Trading appeared first on THE MARKET ENGINEER.

      Do you have what it takes to be a trader? When we watch sports sometimes someone comes along that defies what normal people can do. When the game is on the line they rise to the occasion. Some say they have a gut of steel. Look at old videos of Joe Montana… Continue reading TME 025: Trading Psychology The post TME 025: Trading Psychology appeared first on THE MARKET ENGINEER.

Long term investing or long term trading can mean different things to different types of investors or traders. If you are a day trader then a strategy that trades weekly will be long term. Some define long term as holding an asset for an extended period of time. The time could be as little as… Continue reading TME 024: Long Term Investing The post TME 024: Long Term Investing appeared first on THE MARKET ENGINEER.

What is the Stock Market? The stock market is a market where shares of public companies are issued and traded. The companies are traded either through exchanges or over the counter markets. The stock market is also known as the equity market. Many time people complain about the stock market but the stock market is… Continue reading TME 023: The Stock Market The post TME 023: The Stock Market appeared first on THE MARKET ENGINEER.

Price Action Trading What is price? When I was young I came to my granddad and I said look at this baseball card it’s worth $5. He said it is only worth what someone is willing to pay for it. The price of something is what someone is willing to pay for it. When you… Continue reading TME 022: Price Action Trading The post TME 022: Price Action Trading appeared first on 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 The post TME 021: Futures Trading appeared first on THE MARKET ENGINEER.

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 The post TME 020: Trend Following appeared first on THE MARKET ENGINEER.