1、November 1, 2010,The Ultimate Trader,Investing VS. Trading,Investment strategy,Passive,Active,Buy and Hold Indexing Diversification,Security analysis and selection Market timing,Trading,Buy Hopefully sell it at a higher price later Short sell Sell a stock (borrowed from the broker) that you dont own
2、 Hopefully buy it back at a lower price later Margin trading Use leverage to magnify your return, both positive and negative Exit strategy Take-profit or stop-loss,Limit-Order Book,Types of Orders,Market order Buy at the ask price (20.30) Sell at the bid price (20.20) Limit order Buy at the limit pr
3、ice (e.g. 20.10) or below Sell at the limit price (e.g. 20.40) or above,Types of Orders,Stop order Use to cover your position Become market order when the stop price is reached Buy at the stop price (e.g. 20.40) or above Sell at the stop price (e.g. 20.00) or below Trailing stop order Sell when pric
4、e drops by certain % or $ to close your long position Buy when price increases by certain % or $ to close your short position,Stock,Valuation Discounted Cash flow model P/E valuation Exchanged Traded Fund (ETF) Tracking an index, a sector or a region iShares, SPDR Leveraged ETF, Inverse ETF ProShare
5、s,Option,Call Holder has the right, but not the obligation, to buy a given quantity of an underlying asset on or before a future date, at price agreed upon today Bullish Put Holder has the right, but not the obligation, to sell a given quantity of an underlying asset on or before a future date, at p
6、rice agreed upon today Bearish,Option Valuation,Call PutStock price + Exercise price +Interest rate + Volatility in the stock price + +Expiration date + +Dividend +,11,Long Straddle Profits,Profit at expiry,Using Option to Stop Loss,Protective put Buy stock at $X Buy put with an exercise price $Y,Te
7、chnical Analysis,http:/ Trading Inc.,Title Trading is the leader in the day trading industry. We operate under the Winupsure trading Inc. umbrella which is one of the largest trading floors affiliated with Title TradingOur U.S. headquarters are in Charlotte, NC, which houses the firms operations and
8、 technology team; Our international headquarters are in Montreal, Quebec, where affiliate training and proprietary trading occurs; Numerous proprietary trading affiliate offices and a couple of thousands day traders exist around the globe.,About us,Our traders trade various asset classes on several
9、stock markets using the firms capital with no financial risk to them. Our leading edge, proprietary direct access electronic trading platform provides traders with live market data, volume price discounts, rapid order execution and unmatched software stability, giving them the necessary to succeed.
10、We take pride in our reputation as offering the best training, trader mentoring, technology, trader tools, and affiliate office support in the industry.,About us,ExperiencePrice Technology Support Education Trading EnvironmentTitle Traders Generate Consistent Income1) unique low commission fee struc
11、ture,2) proprietary fast execution software, 3) state-of-the-art training,Why Title Trading is the leader in the day trading industry?,Proprietary trading is a term used to describe when financial institutions actively trade stocks, bonds, options, commodities, or other items with institutional fund
12、s as opposed to customer money or the trader money, so as to make a profit for the firm. The firm will then pay a percentage of any earnings to the trader for their hard work. This industry has no end in sight for growth. Since the introduction of electronic trade execution on NASDAQ, intraday trade
13、 volumes have steadily increased to eventually overtake the major equity exchanges worldwide,What is Proprietary Trading?,Originally, all stocks were traded on the New York Stock Exchange (NYSE) and all trading activities were performed manually. In 1971, the worlds first fully electronic exchange c
14、ame on line: the National Association of Securities Dealers Automated Quotation (NASDAQ). This exchange allowed traders since the advent of Intranet technology to send orders to one another electronically instead of physically. Historically, brokerage commissions were fixed at 1% of the dollar value
15、 of the trade. We would not be here today in the active trading profession if that were still the case. Markets in April 2001. Prior to that, intra-day traders used their own capital, making 1/16th or 6.25 cents per spread ($62.50 on a 1000 share order) and paying a direct access broker a commission
16、 of usually 1 cent per share ($20.00 round trip). After decimalization, the spreads narrowed to 1 cent ($10.00 on a 1000 share order) and day traders quickly burned through their capital, paying fees and fighting for a smaller spread. This dealt a blow to the volume on the ECNs (Electronic Communica
17、tion Networks) since day traders were no longer providing liquidity throughout the day. To respond to this, the ECNs implemented a credit system, where the direct access broker would receive a small amount of money for adding liquidity on the ECNs. This is where the idea was spawned to allow traders
18、 access to the markets on a near-cost basis, allowing them to profit once again from the spread. Since the direct access broker was no longer profiting on the per share basis, they decided that it would be best to share the profits with the traders and allow them the access to the capital they neede
19、d in order to trade (margin).,History of Proprietary Trading,Title Trading. believes that traders must be multidimensional, and have the ability to adjust and change their trading strategies as market environments change. With proper risk management, we believe that being execution experts will allo
20、w most to grind out profits on a consistent basis. We then teach our traders how to gain the necessary “bias” on the stock being traded and the broader markets on relevant time frames to increase the odds of the trades by staying on the right side of the market.,Title Tradings Approach to Proprietar
21、y Trading,Characteristics of Day Traders Special report from Sec,short 1000 shares AA made $1000 dollars in 5 minutes,Examples of real trades,Bot 5000 shares XLF made $1000 in 20 seconds,Examples of real trades,NPL of traders in a calendar month,NPL of traders in a calendar month,NPL of traders in a calendar month,Skys the limit!,We hope that this presentation has been an insightful look into the world of Day Trading. Good Luck to all Participants! =),
