Saturday, 30 January 2010

Three Investment Lessons To Learn From Warren Buffet

Three Investment Lessons To Learn From Warren Buffet

Thursday, 28 January 2010

Larry Williams %r Indicator

Williams %r Indicator – Another Excellent Technical Trading Tool

By: Mike Estrey
Many stockmarket technical analysts and chart watchers use the well known Relative Strength Index (RSI) as a reliable overbought/oversold indicator, but there are various other highly useful tools out there, and an excellent and simple one is the Williams Percent Range technical indicator.

This was developed by Larry Williams, an expert in trading and systems analysis, and is a slightly different way of evaluating overbought and oversold market conditions. As with the RSI the %R always falls between a value of 100 and 0 (it is actually calculated as a negative figure in some software systems), and two horizontal lines can normally be defaulted to represent the -20% and -80% overbought and oversold levels. RSI watchers often use 30 and 70 as the equivalent levels, but these are not set in stone for either indicator.

The Williams %R formula


The Williams %R indicator uses highs and lows within its calculation, so this is a bonus, and it is inverted by multiplying it by -100 to give the ‘low’ and ‘high’ figures.

The formula which is preset on most software systems is:
((Highest high value (High, Number of periods chosen) - Close)/(Highest high value (High, number of periods chosen) – Lowest low value (Low, Number of periods chosen))) * -100
Williams' original analysis focused on 10 trading days as the number of periods chosen to determine a market's trading range, and then the calculation was made by reference to where the current day’s closing price fell within that range.

There are some similarities with another well known indicator, the Stochastic, (which can be used both as a trend indicator or an overbought/oversold measure), but the Williams %R does not have any smoothing (or fast and slow lines if you like)

A value of 0% on the Williams %R shows that the closing price is the same as the period high, but often the indicator will remain very close to 0% for days on end in a strong bull move where the closing prices are near to period highs. A value of -100% shows that the closing price is identical to the period low, and the opposite scenario is common here.

What this indicator really does that is very good is to show the difference between the period high and today's closing price within the trading range of the specified number of periods chosen.

It tends to work best in trending markets, and just as with the RSI it is possible to look for divergences between the %R and underlying price movements.

What length of time period to use


Although the indicator was developed on a ten day period length, many software systems now use a 14 day default (same as the RSI). As with all technical analysis, there are no hard and fast rules, and the shorter the period chosen the more volatile the outcome. To achieve less whipsaw action, it is best to use a wider periods range, but this of course results in less signals.

Original trading rules


Larry Williams set the following original trading rules for the indicator:

1 Buy when %R reaches -100%, and five trading days have passed since -100% was last reached, and after which the %R again falls below -85/95%.

2 Sell when %R reaches 0%, and five trading days have passed since 0% was last reached, and after which the Williams %R again rises to about -15/5%.

Some technical analysts simply suggest selling when %R reaches -20% or lower, an overbought level, and buying if it goes below -80%. This is too simplistic, and CFD trades will know that using any overbought/oversold indicator in such a standalone manner is doomed to failure.

The reason is that especially on a trading range breakout, a new trend can immediately become highly overbought and remain so for a long time. The same goes with a big fall (say following a profits warning) which can see a share remaining oversold for a long time while the price continues to trend down – you do not want to be buying then!

It is therefore best, as with all these types of indicators, to wait for the underlying price to change direction before going with the trade. You could quite easily combine the Williams %R with a MACD or TEMA indicator to give you more comfort that you are trading with the trend.

About the Author
Mike Estrey is the Head of Research for Blue Index, the Day Trading specialists in Contracts for Difference. Foreign Exchange Trading also forms part of their extensive services.

(ArticlesBase SC #224107)
Article Source: http://www.articlesbase.com/ - Williams %r Indicator – Another Excellent Technical Trading Tool

Recommended reading: *****

    

Wednesday, 27 January 2010

Trading the forex market

Trading the forex market: Forex Fortunate 5%

By: Forex Signs

Forex Fortunate 5%

" Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."    Warren Buffett

Caveat Emptor

The financial markets industry attracts its share of dishonest and devious people, and the Forex sector has its quota of charlatans. Please be mindful of this when assessing brokers, signal services, and the various others who populate the Forex world.

Some people are easily misled, deceived and cheated, especially traders who are inexperienced, unrealistic, and lacking a suitable temperament. Forex blogs and reviewers report various signal scams, including falsification of performance results, sending different signals to the same client base, and various other tricks. We encourage you to beware, and undertake thorough research before signing with any Forex service providers.


Gambler or Trader?


Probably the most serious impediment to profitable Forex trading is an inappropriate attitude. Forex often appeals to inveterate gamblers who seldom resist the urge to place a bet in the forlorn hope of satisfying their "big win" craving. How do we recognise a penchant for gambling? Overtrading with excessive margin is probable a certain indicator.

One of the most astute traders we know was a chronic gambler and is now a wealthy Financier. He has related several times that what eventually made him a profitable Forex trader were the lessons learned to overcome his problem gambling. Those capable of being honest with themselves will recognise any signs of ludomania. If you have a gambling problem please seek professional help, and avoid Forex trading.

Some claim any financial instrument trading is a form of gambling since it involves taking a risk in hope of reward. What is the difference between gambling and professional trading? Professional traders have a highly developed sense of discernment. They employ prudent risk/reward assessment, usually erring on the side of caution, and identify multiple confirmation signals before entering the market; for them each trade is a probable profit making opportunity.

Odds For and Against


The Forex is arguably the most authentic zero sum game on earth. Why do the odds greatly favour those who divide so such of the Forex game spoils? Because they are playing against traders who are hugely disadvantaged by there own attitudes and behaviour. It is a matter of statistical probability. You have a much improved chance when the odds are in your favour, and that may simply mean not being one of the traders with the odds unquestionably against them.

Adept traders enter the market when they have determined the odds strongly favour them, and not merely marginally so. They put their money at risk only when they have a high probability of making a profit.

Losses are certain to occur. Professional traders minimise them by employing loss mitigating management methods and self-discipline.  Gamblers have insufficient control to do this, and are thus eating their own odds, actually betting to lose.

Telling Statistics

It is said 5% of Forex Traders take 95% of the profits. Another noteworthy statistic is the claim that approximately 90% of Self Directed Forex traders lose their opening account balance within 90 days. We hear remarks that such losses are a trader’s tuition fees. Doubtless it may help to teach some valuable lessons, unfortunately most repeat the errors, and their habitual losses predictably become the spoils divided by the fortunate 5%.

These numbers may be somewhat distorted and exaggerated, yet they convey telling facts. An extremely low percentage of Forex traders share an extremely high percentage of the profits, and the preponderance of new Forex trading accounts are soon lost.

The vast majority of Forex traders attempting are totally unqualified to accomplish their profit goals. Perhaps they have thoroughly researched the subject, done several courses, opened trial and active accounts, however, in most instances they remain ill equipped to meet the Forex challenge. They usually lack the capital necessary for a reasonable chance of success, are easily lured by brokers offering extremely high leverage, habitually trade with perilously high margin, and lack the requisite self-control. Accordingly, the odds are comprehensively against them.

The attitude of habitual Forex losers often has a common denominator. They take losses personally, believing the Forex should be subject to their trading decisions; they actually blame losses on the market. Professional traders see the market as their friend, the source of their livelihood.

The Fortunate 5%

The definitive Forex challenge is becoming one of the few taking most of the profits. We know and accept that losses and drawdowns are inevitable, even for the five percenters. The difference between them and those whose money they share is making considerably more profits than losses, and they achieve this by applying a superior Trader Intelligence.

The 5% are dedicated to taking profits.  An "if only" attitude does not prevail. There are no regrets or recriminations when a closed trade reverts in the direction they had traded. They understand that the market will constantly offer profit opportunity; it is not about one particular trade. These traders have an unshakeable conviction that their highly developed Trader IQs will consistently reveal profitable market entries and exits.

Trader IQ


Most Forex traders have above average intelligence; nonetheless, the statistical evidence suggests an alarmingly high percentage have below average Trader IQs. Joining the Fortunate 5% requires a high Trader IQ.

To begin, make a earnest effort to analyse your trading. Traders give myriad reasons why their losses are not their fault. The capacity to generate plausible excuses and believable justification is not indicative of a high Trader IQ. Intelligent practitioners of the Forex trading art accept responsibility, exercise discipline, learn and practice patience and detachment.

Intelligent Forex traders are willing and able to risk a reasonable capital sum, establish achievable profit goals, eliminate impulsive trades, and avoid excessive risk.

Unless you are able to make a genuine commitment to achieving these goals you are wasting your time and money. Irrespective of the professional Signal Service you use, or the trades you select, without a sufficiently high Trading IQ you are on a fools errand.

Glimpses of the Forex World

The Internet is replete with data for those seeking information on the technical and fundamental factors that impact the Forex, education and training, broker choices, and signal services. An good resource list for Forex service providers is available at http://www.forexontop.com.

Magnitude


On 17th of September 2008 CLS Bank settled 1,554,166 Forex payment instructions with a gross value of US$ 8.6 trillion. Huge numbers, though of course leveraged to varying degrees. Many quote $2 trillion as the nominal daily Forex volume, though it now seems to have surpassed $4 trillion.

Brokers


Impulsive, self-destructive traders fuel the profits of online Forex brokers. Those of us who have witnessed the introduction and proliferation of retail Forex trading have seen numerous churn and burn shops come and go, and some remain and continue to grow. Those interested in pertinent facts may want to review the Refco story - http://www.reuters.com/article/idUSN0732847120080807Most

Forex brokers receive good and bad reviews. A broker may score high ratings on some sites, and far lower on another. There are sites where no broker rates over 50%, supposed review web sites that are owned by brokers, and the inevitable fake reviews generated by self-interested parties. Sound confusing, that is exactly what the retail brokerage market has become, and the Caveat Emptor warning must be heeded.

Conflicting reviews and scams apart, the real issue is how to make a relatively informed choice when choosing a Forex broker. A good place to start is your Internet search engine. Incidentally, there are sites purporting to answer this question that describe the exact features of particular firms, and conveniently provide links to them.

The fact is, we cannot know how a broker will deal with us until we have opened an active account. Many make the error of thinking brokers with the highest Internet profile will provide the best service and attention. Substantial advertising budgets are not necessarily indicative of a brokers ethics or efficiency. Even big brand associations can lead the unwary astray.

Market Maker brokers may trade against your position. Stop hunting price spikes, persistent data glitches, unfilled orders/slippage, and suddenly widening spreads during high liquidity sessions, are a few of the practices used by such predators. Brokers who claim to have no intervening trading desks may also engage in sharp practices in the dedicated pursuit of your money.

First and foremost make a concerted effort to verify the broker is legitimately connected to the Forex, and is reputable. Treat reviews with a degree of circumspection: some use reviews to denigrate each other. You can usually spot a real review.

As a general rule we prefer ECN brokers, though we stress there are ethical alternatives.

Trading Platforms


Most Forex platforms will successfully process your order with a varying degrees of sophistication. At any given time a few become popular and tend to be dominant. Where possible familiarise yourself with the broker’s trading platform, with the explicit understanding that trial trading is not a facsimile of the real thing. It is merely an opportunity to understand the particular Order Management System’s processes and protocols.

The goal of trial account platform practice is becoming comfortable and confident when executing your orders, before risking your funds with live platform trades. Trades are often incorrectly entered because of careless keystrokes, and lack of attention to basic trade execution procedures. Always check your trade before you place it - instrument, amount, and order.

Charts


The chart is an essential trading aid. It displays the market’s past, present, and possibly hints at its future.

Technical Tools


Studies that once cost large sums are now freely available on the charts provided by most brokers. Each of these trading tools may be useful, however, in most instances covering a chart with a maze of overlays and studies serves no useful purpose. Again, it is a matter of research and personal preference.

Quotes


When you execute a Forex trade you are effectively buying the base currency, the first one in the cross, and selling the quoted currency, the second in the cross. The currency pair or cross is the instrument you are trading. When you buy the instrument you pay the ask price: when you sell you pay the bid price.

You do not have to delve too deeply to read stories of chart quotes and executed prices differing, especially in volatile markets. Stories are far from rare of the same trade being stopped out or not filled by one broker, yet not closed or filled by another. The issue of slippage is a matter between you and your broker.

A stock exchange quote emanates from a specific central source; the Forex is not a centralised market. A Forex dealer’s charts reflect a variety of price sources, and sometimes motivations. Accordingly, prices may vary, sometime quite significantly, because your broker’s third party charts display indicative price, not necessarily the broker's executable price.

So-called live streaming Forex prices, provided by firms like Reuters, play a critical role in the Forex price discovery process. In a way these streaming prices are an aggregated indication of current Forex quotes. At source prices are often manually entered and thus subject to human error, and at several points of distribution they may be manipulated.

Indicative prices signify or imply current Forex quotes and past fluctuations. Virtually all reputable charts will reflect the same trends and be quite closely aligned, nonetheless, they indicate a past bid/ask price, not necessarily a broker’s execution price, though they can be identical, or nearly so.

The more sources used the greater the accuracy of the price - EUR:USD and USD:JPY crosses are widely traded and reported, and tend to be closely aligned across charts. Similarly, quotes tend to be more accurate during the relevant sessions, e.g. the EUR, GBP and CHF during the London session, the JPY, AUD and NZD during the Asia/Pacific session.

The Spread


An obvious conclusion is that the lower the spread the lower the cost to trade. There are brokers who offer raw spreads and charge a fee, so it is not necessarily that simple.

Some brokers offer fluctuating spreads, others fixed. Both appeal to traders for different reasons. The former because it may be a more transparent picture of current market liquidity and volatility, the latter because traders know what the spread will be, supposedly irrespective of liquidity and volatility.

Money Management

A sensible money management plan is essential for disciplined trading. Effective money management is the basis of Forex survival and profitability. Traders who do not take this requirement seriously probably have low Trader IQs and are merely gambling.

Objectively review the discretionary components of your Money Management plan.
• How much capital can you risk, and by risk we mean afford to lose?
• What margin percentage of your usable account balance do you risk on each trade?
• What leverage ratio do you apply to the margin?
• How much profit do you expect to make?
• Calculate your profit goal, as an annualised return on your account balance - is it realistic?

Only about 2% of Forex traders achieve an annual return exceeding 100%, an extraordinary result by any rational expectations.

Capital


The funds you use to trade Forex are at considerable risk. The extent of your risk depends on your choices; i.e., the broker you choose and the trades you make. Only risk money you can afford to lose when trading Forex.

That said, not having sufficient capital is a significant reason for such high self directed trader attrition rates. An under capitalised account dramatically reduces the probability of success, making it extremely difficult to implement prudent money management.

This is an approximate guide for the recommended capital to open various Forex accounts.
• Standard Account              $50,000 to $100,000+
• Mini Account                       $5,000 to $20,000+
• Micro Account                     $1,000 to $5,000

Be patient. Rather than rushing to open an undercapitalised account wait and accumulate the maximum possible capital you can risk.

Equity


Adding the used margin to the available, or useable, margin determines account equity. When there are no open positions the Account Balance, Equity and Available Margin are the same.

Margin


Initial Margin is the amount put at risk to collateralise a trade and is expressed as a percentage of the trade’s total value. The initial, or used, margin is the security deducted from an account, and is often leveraged. Brokers usually aggregate initial margins to fund their own trading.

What remains is the available, or usable, margin. This fluctuates with a trade’s value. When the remaining margin falls below the broker’s acceptable margin requirements open positions are liquidated by a margin call.

Please carefully read broker’s margin policies, and ensure you fully understand the different margin terms, especially the margin call policies. Where a broker has a margin policy of 1% a leverage ratio of 100-1 is available, 2% equates to leverage of 50-1, 2.5% to 25-1, 5% to 20-1, and so on.

We recommend Self Directed Trader margin of 1% to 5%, subject to the leverage chosen, positions open, and market conditions.

Leverage


One compelling reason for the rapid expansion of online Forex trading is the high leverage offered by many brokers. The National Futures Association defines Leverage as: "The ability to control large dollar amounts of a commodity with a comparatively small amount of capital."

Leverage is expressed as a ratio, e.g. 10-1, and is unquestionably an appealing notion. We open a $1,000 account with a Forex broker offering 100-1 leverage, and willing to instantly lend us $99,000. What a deal. Voila! We now have a $100,000 trading bank, and can make 100% return on our capital with only a $1,000 profit. Sounds easy enough. Consider this, we will lose 100% of our capital with a $1,000 loss, and that may only take a handful of pips if we are silly enough to trade with preposterous margins and leverage.

Trading in this manner dramatically increase the risk of loss, and is basically suicidal. Those using such strategies are known in some brokerage circles as wood ducks – easy prey.

Leverage is a useful tool for those who know how and when to use it. That means judiciously, after you begin to consistently take trading profits. Think of leverage as a scalpel, not a chain saw.

Most professional Forex traders use leverage between 2-1 and 5-1. Self Directed Traders may claim this is unrealistic for those with small accounts, and some may want to use leverage up to 20-1 in conjunction with a sensibly low margin. This is not totally unreasonable, however, we must also realise the smaller the capital the greater the need to protect it.

When you have become a profitable, confident trader you may chose to review your Money Management Plan.

Happy Trading  :-)


About the Author
(ArticlesBase SC #802288)
Article Source: http://www.articlesbase.com/ - Forex Fortunate 5%

Monday, 25 January 2010

Tony Blair: Hedge Fund Role

Tony Blair is set to earn a small fortune in a new role as a paid speaker at a leading London hedge fund, Sky sources say.


The former Prime Minister will join Lansdowne Partners for the coming year and is expected to make tens or hundreds of thousands of pounds from the arrangement.

Breaking the news, Sky's City editor Mark Kleinman said the announcement would raise eyebrows, in light of the political backdrop.

"The timing is intriguing, given that hedge funds are back in the political firing line and of course the fact that Mr Blair has a rather different kind of speaking engagement at the Iraq inquiry later in the week," he said.
"What's more, Paul Ruddock, a co-founder of Lansdowne and one of the City’s wealthiest men, is also a major donor to the Conservative Party."

Source: http://news.sky.com/skynews/Home/Business/

EUR/USD Forecast

The EUR/USD Forecast

Author: Rob Trader
The Euro had a pretty good year in 2009 against the dollar. It began the year at 1.40430, rose all the way to 1.51440 and ended the year at 1.43330.

The reasons for this were plentiful:
  • The US economy appeared on the verge of collapse.
  • The US has a record high deficit (it still does).
  • The global economy seemed to be improving in the second half of 2009, leading to a greater appetite for risk and people leaving the dollar for the EURO.
  • Interest rates in the US were at an all time low.
However, it seems that the tables have turned momentarily, at least in this month of January. The Dollar is on the verge of breaking the 1.4000 support and the EURO is the currency that's feeling the pressure.

My euro prediction for 2010 is that the European currency will be vulnerable throughout the year and that the USD is likely to rise in relation to it. Naturally, I am no prophet and you can make your own prediction, but this is what I think for the following reasons:

1. The European Union has too many members who are in serious financial problems. All these problems weigh down on the Euro.

2. Countries like Greece and Spain, with serious financial problems and skyrocket unemployment rates are competing with countries like the Netherlands which seems to have weathered the crisis easily. How these countries come to one monetary policy is beyond me. You just can't please them all so a compromise policy is arrived at, something which won't be optimal for the Euro.

3. It seems that the US has begun to recover from the crisis and there are many who believe that interest rates in the US will rise soon. This will lead to an increase in the USD's value. This is probably what caused the EUR/USD decline that we've seen in the past 3 weeks.

4. Now that the US seems to not be on the verge of collapse, attention has turned to Europe. Some of the countries in the EU are in serious trouble and will get a lot more press and media attention. This will lead to more fear on the side of traders and a greater abandonment of the Euro.

Again, these are my thoughts. You're welcome to act on them or not. It's your choice.

About the Author:
Rob Trader - Forex Expert
Article Source: ArticlesBase.com - EUR/USD Forecast

Sunday, 24 January 2010

Forex Secrets That Will Make You Rich

5 Forex Secrets To Make You Rich Fast

Author: Erik Shimer
This article is all about forex secrets to make you rich - and I'm going to give some alternatives to conventional investment wisdom. Why? - Because most traders in forex follow the norm and make average gains - while this article is about making spectacular gains from forex trading and making money fast! Now, keep in mind that this isn't professional financial advice of any kind or a reccomendation to act and you are solely responsible for your own actions and assume all risks involved, but with that being said, let's go with the 5 forex secrets that can make you rich fast.

The Goal of These Forex Secrets:

Here I'm going to assume you know how to trade, and you have a methodology for forex trading you are happy with, and can apply with discipline.

What I'm are going to show you here with these forex secrets, is how to change your system from making ordinary gains, to making awesome gains, with basic changes in trade selection, money management, and mindset.

Forex trading offers the opportunity to make money fast - so lets see how it can be done.

1.Forex Secrets: Accept Volatility and Risk Cheerfully

All good forex trading systems incorporate volatility.

You can't have a profitable forex trading method without taking calculated risks, and taking losses - if you can't accept risk, then don't trade.

Many traders back away from a market because it's too risky - however, risk also means reward! If you are a trader who doesn't like volatility, then go and find something else to do.

Drawdowns are part of trading; it's volatile markets that make forex trading fun and highly profitable.

To the well-informed forex trader, a drawdown is not something to to be afraid of, but something to benefit from.

Remember: volatility = opportunity for massive gains

2. Forex Secrets: Trade Rarely

Many traders trade on a regular basis and always like to be in the market. They think that in forex trading if they are not in the market, they will miss a move, or that by trading more frequently, they will make money - wrong!

The big moves in forex trading, with the best risk to reward, come a few times a year, and you should trade infrequently.

Focus on the trades that make the really big gains

3. Forex Secrets: Don't Diversify

Diversification is an accepted wisdom, believed by most investors in forex trading, but it won't make you money fast, - it will do the exact opposite.

4. Forex Secrets: Money Management

So far, you may think that I am being a little rash, but this is not the case.

I am focusing on the big opportunities that allow us to make meaningful gains, and this is actually, where money management becomes so important.

If you are taking risk, you need to control it - risk as much as 10% per trade, but increase your chances of success by:

1. Buying options at or in the money, to give you staying power - and prevent yourself from getting stopped out.

Many traders lose, not because they were wrong in market direction - they just were stopped out by a volatile counter move - and options will give you staying power.

2. Many traders start trailing their stops to close, they then get stopped out but the trade runs on to make spectacular gains. Don't fall into this trap - keep your stop in its original position - until the move is well in profit, before moving it up.

You're looking to make money fast, and you're trading selectively - so have the guts to go for a trade when it looks good - and milk it for all it's worth.

5. Forex Secrets: Understand the Power of Compound Growth

In forex trading, the way to make money fast, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years. For more forex secrets and how you can to get a $47 value forex secrets ebook, for free see the resource box below.

Happy trading :-)

Article Source: ArticlesBase.com - 5 Forex Secrets To Make You Rich Fast

Friday, 22 January 2010

How to trade stocks online

Stock Trading Basics: Learning How to Trade Stocks Online

Author: stock trading basics
BY.- http://www.ProfitableStockMarket.com

The stock market should present us with a wide variety of NEW hot stocks in 2009. Many of them are going to be new technology stocks that come from the nanotech, biotech, financial, energy, healthcare & communications sectors.

Most of them might seem promising, but the truth is that a good number of these trading & investing opportunities could be extremely risky, while others are simply not as good as they look. That's why it's very important to know how to choose among the best especially if you want to day trade them.

When you know how to pick and approach the best hot stock trading opportunities, you are able to generate a consistent and respectable amount of money in a very short period of time.

Experienced day traders recognize that trading hot stocks on momentum can be the fastest way to make money in the stock market, especially on uncertain times like these.

You don't necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities for going long or for shorting them to make money when they are poised to fall down.

If You decide to day trade stocks just keep always in mind that for a trader to survive and be consistently profitable, its necessary to keep things as simple as possible. To much confusion and technical indicators will most of the time make you slow in your decisions and froze you up when a good opportunity is right in front of your screen.

In the end, stock market day trading is all about picking the best daily stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

About the Author:
Profitable Stock Market helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.ProfitableStockMarket.com
Article Source: ArticlesBase.com - Stock Trading Basics: Learn How to Trade Stocks Online

Wednesday, 20 January 2010

Picking Hot Stocks

Stock Market Day Trading Book > Learn Stock Trading Online - Picking Hot Stocks

Author: Day Trade Online
By.- http://www.ChatHotStocks.com

Beginner traders often fantasize or wonder about how some people are able to achieve tremendous profits by trading stocks just a few hours on a daily or weekly basis.

So going farther than the hype & the bells and whistles that a lot of the called "trading gurus" like to invoke, the real "secrets" of the stock market game are enclosed within the trading set ups and market signals you rely on to decide how to CHOOSE stocks, as well as WHEN to BUY & when to SELL them, or even when to SHORT SELL those that are poised for a profitable fall.

So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and ACT ON IT reducing your risk.

Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to FOCUS on a set of simple trading strategies that you can implement without hesitation.

Fortunately some sites on the web do offer more effective and updated day trading methodologies. One of those sites that can show you how to take advantage of certain stocks on positive and negative momentum as well is http://www.ChatHotStocks.com

They focus on momentum stock trading strategies, that are practical and easier to apply than many other technical systems out there.

Stock trading doesn't have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.

About the Author:
Chat Hot Stocks helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.ChatHotStocks.com
Article Source: ArticlesBase.com - Stock Market Day Trading Book > Learn Stock Trading Online - Picking Hot Stocks

Tuesday, 19 January 2010

When to Buy and Sell Stocks?

Day Trading System > Stock Market Trading Software - When to Buy and Sell Stocks ?

Author: Day Trading System
By.- http://www.momentumstockpick.com/

We all know that in the stock market is always possible to watch certain stocks go up more than 50% within a few hours to days. This is especially true in the 4th quarter of the year where the buying frenzy starts in wall street.

The financial media constantly reports about momentum stocks that are achieving tremendous gains during the same day. And even when you can see online investors that make $3000 on a single trade, it is also not unusual to watch beginner stock investors lose a great deal of money because of a series of unwise decisions

The problem is that if you don't know how to pick among stocks & how to properly approach them you could end up wasting dollars instead of making your wallet happy. You can't just trade stocks like if you where gambling in Vegas or Atlantic City.

The first step in becoming a profitable trader is to start learning how to pick and trade stocks. There are many "ultimate" trading systems out there, but you need to test them in order to discover which ones help you the most. That's part of your homework as a stock trader. Test several strategies and then test them again until you are able to produce consistent winnings.

Bogus stock trading software programs and complicated day trading systems that rely on a "boat load" of technical analysis indicators can confuse you and make you slow, and being slow when trading stocks can be as dangerous as not knowing what to do in the first place.

The worst thing that can happen to a beginner stock market trader is to get information overload. It's better to go step by step, and test a practical trading strategy that can help you focus on simple ways to make money while picking SOLID hot stock trading opportunities once at a time.

In the end, stock trading is all about buying and selling according to your especific knowledge FILTER. Once you master and follow your proven filter parameters like a clock, you can expect to start making serious amounts of cash on a consistent basis.

Fortunately some websites on the internet can show you how to use effective and proven stock trading strategies. One of those sites that can show you how to take advantage of hot stocks using simple to understand and apply momentum trading strategies is http://www.momentumstockpick.com/

Visit them today & discover how to profit in the stock market by picking hot stock trading opportunities in a realistic way every week.
About the Author:
Momentum Stock Pick helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.momentumstockpick.com/
Article Source: ArticlesBase.com - Day Trading System > Stock Market Trading Software - When to Buy and Sell Stocks ?

Sunday, 17 January 2010

Trade Forex Like A Pro

Forex Trading - How Anyone Can Trade Forex Like A Pro

Author: Paul Hamilton
Over the last few years, there has been a great deal of interest in Forex trading. This interest has been fueled by the fact that people are now starting to look for greener pastures, especially after the housing bubble burst in various countries and the slow down in the economy. Amidst all these issues, it is unavoidable that most of us feel the urge to learn to trade forex and keep abreast of investment opportunities that are made available by this exciting market.

However, before anyone can just jump in and start trading, there is quite a bit of education, or learning that must take place if you want to become successful at it. At the very least, a basic understanding of the Forex market will help pave the way for more detailed studies.

The Forex market unlike the New York Stock Exchange (NYSE) is an Over the Counter (OTC) market. This means it is a decentralized market where trading is done through a system or communication network rather than on an actual physical trading floor.

Because of this, the Forex market actually spans across several time zones around the globe. As such, it is a 24 hour market where trading occurs continuously for around five and a half days a week.
Forex is a platform where traders can exchange different countries currencies at a rate determined by the market. There are two reasons why currencies are traded. One reason is for the payment of goods and services by international companies. The other reason is because traders speculate on the movement of the exchange rates and seek to gain profits from such fluctuations. The exchange rates fluctuate because the demand for a currency is always changing and this change is reflected in the differing rates. This explanation is actually an oversimplification of the Forex market, but its a good place to start.

Unlike share prices which are determined by the performance of the companies, currencies prices are affected by a myriad of factors. Hence, trying to forecast the rate of a currency is an extremely complex process.

It is a good idea to educate yourself well and seek the advice of a broker or licenced advisor or trainer as their advanced knowledge and experience of the market will be able to give your some direction in improving your own knowledge base. To gain a feel of what the Forex market is like, you can also always try out a “practice account” available through most forex brokers, where you will trade virtual money based on the actual exchange rates. You will note that it is an extremely dynamic market and can be quite exciting to observe.

Nevertheless, learning how to trade Forex properly requires patience and some investment to learn about the intricacies of the market. Thus, it would be a good idea for anyone who wants to learn how to trade Forex to enroll themselves in some Forex education courses to further understand how this market really works.
There are also many sources of information about Forex available on the internet. These information can be for free or require some payment to acquire. Free information is usually very basic and if you wish to learn more advanced concepts, you would most likely be required to pay for it. You should do as much research as possible and read as many reviews as possible before you join any Forex training program. This way, you will avoid any disappointments by knowing upfront what to expect.

Article Source: ArticlesBase.com - Forex Trading - How Anyone Can Trade Forex Like A Pro

Friday, 15 January 2010

Peter Bain Forex Mentor Program

Do You Now Peter Bain?

Author: Marc Young

The Peter Bain Forex mentor program

Trade forex, It will earn you money.

Welcome to the Forexmentor Program.

Currency Trading has experienced phenomenal growth in recent years as many investors are looking for ways to profit from the currency trading marketplace. Author, professional trader Peter Bain is an authority in Currency Trading education.
His Forex Course teaches the same system used by banks, financial institutions and professional Forex traders alike to trade currencies on the foreign exchange. For the first time, Peter's making his "Commercial Forex Trading" system available to the public in the form of a video currency trading course.

The Peter Bain Video Forex Course is video course is a complete trading solution and is packed with 6 hours of live instructions on DVDs from Peter himself. In addition, there are an additional 6 hours of instruction on CDs, a 150 page “Trade Currencies the Way the Big Dogs Do” User’s Manual and 1 year access to the Forexmentor Membership website. Learn to trade the lucrative 1.5 trillion Forex Market everyday with Peter Bain's Video Forex Course.

A Forex currency trader doesn’t have to worry about 7,800 stocks, or 72 commodities, and all the underlying trading rules that accompany those markets. With the Forexmentor program, a currency trader only has to think about the 4 major currency pairs – and pure technical analysis. The average daily range of 104 pips for all four pairs far surpasses that of any other stock trading market. Peter will show you the techniques and secrets used by the commercial institutions and banks.
Check our testimonial section for accolades of satisfied customers.

Become a Forex trader today. Remember that Forexmentor has a 30 day return policy!
Article Source: ArticlesBase.com - Do You Now Peter Bain?

Why so Many Traders Fail at Forex

Have you ever asked yourself - Why so Many Traders Fail at Forex?

Author: Forex King
The old battlefields of the middle ages are not gone, they have merely changed form. Hundreds of years ago normal men would set out to build their empires by conquering lands through the force of arms. Today, normal men like you and i set out to build our financial empires by conquering markets throught the force of self. The blood soaked battlefields of yesterday have made way for the cash soaked commercial battlefields of today, with the large private armies of Family warlords making way for large pools of family capital. Just as armies were needed to shape empires of the past, so too is capital needed today in order to put modern commercial plans of conquest into action.

In there, lies the reason as to why many forex traders fail. They go into battle risking too many soldiers (capital) and without the knowledge of tactics needed to win the fight.

Lets look at that again. 1. They risk too much capital, 2. They do not understand Forex markets.

Many traders both successful and miserable have made these mistakes, the main reason for me writing this article is so you can learn this lesson here and do not have to make this mistake and lose money, or at the very least be cautious enough to minimise your losses.

No general will risk a majority of his men in a battle that he has no plan for and where he has no idea about his enemy. So my question to you is, why would you risk your capital in market conditions you know nothing about? Luckily two remedies exist for the forex general who finds himself in this situation.

1. Make it a rule to only risk 1% of your capital in any one trade. This is to minimise your losses.

2. Educate yourself so you can recognise your chance to strike but also recognise when it is neccessary to withdraw. Learn to read the conditions of the forex battlefield. Great generals of the past would spend years learning battlefield tactics, luckily we can achieve this in a couple of months.

So in summary only risk 1% of your capital in any trade, and educate yourself about how forex markets work.

About the Author:
No other market in the world offers the potential for profit like FOREX. . So just how long will you wait until you make the decision to join this $3 Trillion daily market?

Start laying the foundation to your financial empire right now! Free resources, free education, and free forex accounts are right here.
Article Source: ArticlesBase.com - Why so Many Traders Fail at Forex

Forex Signal Provider? Which One?

Are You Thinking of using a Forex Signal Provider? Not Sure Which One?

Author: forex-money-signal
So you decided to make full time leaving from foreign exchange market? Or you are going to supplement your income from here? You have set up yourself with proper broker available. I believe you spent hundred of hours in front of PC trying to put together all maths and physics involving currency market. Now you watching business news in the morning paper and following CNBC channel to be on the top with latest information from exchange market. You trading your demo account trying to figure out how to make it all work? So? Does it? No?
Face the fact that in currency market all is possible and there is no golden rule to follow. There are so many aspects to consider that you will need at least another head to set this puzzle together.

But do not worry there is a hope that can make it work.
Signal solutions for forex trading. People who traded forex for a long time and developed their own systems to enter and exit with profit strategies. They will share this knowledge with you for varieties of prices from usd49 to usd499 a month for those precious information. Problem is which one will suit you best. Are they scams? How do I know?

For medium advanced forex trader is almost impossible to choose proper forex signal system, which is not a scam, or at least not profitable. There is bulk of forex signals providers out there. They all offer their signal solution to trade currency with success.

Advice is that you will have to establish what type of trader are you? Do you want to trade quickly or maybe over the days or weeks? What losses can you manage and how much money you want to invest.

As long as you know al that it is a time to pick up signal trade provider.

Few things worth researching are: performance, service offered and rewievs of the signal. Search on forum for another users of the product you are interested in and ask for comment. Every profitable system should be up on collective2 with real track performance. Look for service offered. You will quickly find out that only few offer free trail-option to try signals before you pay. Demand performance evidence.

But while doing all that hard work choosing your automat forex signal system remember that you will have to totally follow it without exceptions to make most out of it. Any even small innovation may have dramatic results in your own gains.

Remember that your future profits will depend on your signal provider so calculate carefully and make smart decisions.
About the Author:
for more related information,support and signal solutions please go to http;//http://www.forexmoneysignal.com/
Article Source: ArticlesBase.com - Forex Signal Provider? Which One?

Thursday, 14 January 2010

Get Forex Juggernaut while its still available!

Have you got your copy of Forex Juggernaut, get it while its still available!

Author: Rob Trader
What an amazing start to 2010, the day for which we waited with a child’s like enthusiasm for has finally arrived. Next Generation FX trading is finally revealing their secret to the world! Forex Juggernaut is now officially out in the public domain…
But you better grab this opportunity before it gets too late. Only limited copies are up on sale and there is a long winding queue, so the limited copies would dry up fast.
Don’t be undecided! Click on the link right now to unlock the immense potential of earnings with Forex Juggernaut. Forex Juggernaut will be off the market soon, so grab your copy before it is disappears (which is about to happen):
==>>> Visit Official Forex Juggernaut Site

Whether you are a novice at Forex, or whether you have tried your luck at Forex trading and have failed like most others, this is the tool that will take you from rags to riches. You will start seeing your account swell right from the first trade.
* Earn more than $42,533.96 over 18 months
* Is armed with amazing DAILY ‘Swing’ Technology
* Is compatible with ECN and with all brokers
* 76.44% ratio on automatic ‘daily’ winning trades
Due to the earnings potential in the Forex Market, many are attracted to this segment. If you are lucky enough, then you may have a few winning trades initially. However, those making even initial profits are rare.
Nevertheless, the initial euphoria dies soon enough and he is faced with stark reality, his account his drying up faster. This is the precise story of all.
Well, not any more. Thanks to Forex Juggernaut
==>>> Visit Official Forex Juggernaut Site

You will fare well and your profits will sky rocket in no time.
Here’s how it works:
* Forex Juggernaut is fully automatic and operates on autopilot. Just turn it on and see how $42,533.96 can flood your forex account.
* This software will find trades, wait on it and leave it when the time is ripe. It does away with emotions such as fear, which the biggest hindrance in making the right decision.
* You can reap huge benefits only if it is continuous. What is the point in earning in just a few trades? This is what Forex Juggernaut does exactly. It will earn you profits on continued basis.
* Setting up Forex Juggernaut is indeed a child’s play. It will set up in just few minutes.
If you have been in the Forex market for a while, then you know that the fear is the biggest culprit. It eats away your profits. Forex Juggernaut has no place for emotions, as it is a robot.
So, neither will it lose trades due to fear nor will it lose due to greed. Simply put, this is the best and the most powerful robot on planet today.
Forex Juggernaut simplifies the complexities surrounding the Forex market such as analyzing and understanding the algorithms.
This means that each trade will be put on and left at the right time, earning you most profits.
Have a cup of coffee and see how your account swells.
In addition:
* You get access to regular updates for life at no cost, so that you are always ahead, whatever be the market conditions.
* Lifetime email support 24/7: The Expert Forex traders will provide you support, at any time of the day or night, wherever you are located. This is why, only LIMITED copies are made available.
Forex Juggernaut is your friend, philosopher and guide in Forex trading. Get your copy, while it is still available.
==>>> Visit Official Forex Juggernaut Site

There are only LIMITED copies. People are racking in the copies real quick, so don’t wait.
About the Author:
Rob Trader - Forex Expert


http://tradingtoollist.co.cc/
Article Source: ArticlesBase.com - Get Forex Juggernaut while its still available!

Tuesday, 12 January 2010

Mastering the Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups


Turn your fascination with trading into a lucrative, full-time career

Mastering the Trade presents you with a step-by-step, innovative approach for becoming a successful professional trader. Full-time trader and fund manager John F. Carter combines an insightful market overview with specific trading strategies and concepts, providing you with chart setups, trading methodologies, vital money management principles, essential psychological guidelines, advice on powerful hardware and software, and more.



This results-driven book sets aside timeworn basics and rehashed ideas to present and examine in detail the underlying reasons that cause prices to move. Its proven program can be used to consistently get in early on market moves, either jumping right back out when you realize you've made a mistake or hanging on for a long and profitable ride.

From valuable hardware and software to market mechanics, pivot points, position sizing, and much, much more, Mastering the Trade covers:







  • The five psychological truths that you must know to transform yourself from a deer-in-the-headlights beginner into a savvy professional
  • Proven set-ups, with optimal markets and a set of non-negotiable trading rules for increasing the effectiveness of each
  • Exact entry, exit, and stop loss levels for the intraday trading of stocks, options, ETFs, emini futures, 30 year bonds, Forex currency markets, and more
  • Seven key internals, from TICKS to 5-minute volume, that are critical for gauging pending market direction from the opening bell
  • A pre-market checklist to analyze recent market behavior and calculate what you plan to do, how you plan to do it, and why
  • Non-negotiable risk control techniques that protect trading capital, the most important component of a professional trading career
  • Tools and techniques for stripping away the cookies, spam, and other hard drive cloggers that rob you of valuable computer speed
After spending years on various trading desks, John Carter developed an intuitive understanding of how the markets work. In Mastering the Trade, Carter gives you unlimited access to everything you need to know--which trading systems work best in specific markets, techniques for controlling losses, internal strategies for overcoming the danger of emotions--to make an exceptional living on the frontlines of professional trading.



Monday, 11 January 2010

Trade the FTSE 100 for FREE

To all traders, those of you who have not got a CMC Markets account, now is probably the best time to open one...


They are offering a risk free trading day to all NEW customers.  Here is the info, directly from their site: http://www.cmcmarkets.co.uk/pages/risk-free-trading


Keep your net profit and incur no losses

To help you perfect your trading technique, we’re giving you the chance to trade with no risk to your capital for a day on our special UK100 index. If you end the day down –don’t worry. CMC Markets will cover any losses on this day.

On your risk-free trading day you’ll get to:

  • Keep your net profit –incur no losses
  • Buy and sell as many times as you want –max trade size £2 per point (spread betting accounts)/ 2 CFDs
  • Choose the day you want to trade risk free –between 8am and 4.30pm
To take advantage of our risk free trading day, apply for a CMC Markets’ spread betting or CFD account and fund with a minimum deposit of £200. Terms and conditions apply.

How to do forex trading

In Comparison to other investments, Foreign Exchange (forex) trading is one of the fairest and the most attractive investment method.  An example of how to do forex trading will soon follow.

Foreign Exchange trading meaning the traders borrow loan from bank, finance organization or broker house to carry on the foreign currency trading. Generally, the financing proportion is above 20 times, which means the Forex traders’ fund may enlarge to 20 times to carry on the trading. The bigger the financing proportion, means the Forex traders just need to pay very less fund, for example, the financing proportion provided by the financial organization is 400 times, namely the lowest margin request is 0.25%, the traders just need to pay 25 US dollars, then he or she could trade as high as 10,000 US dollars, fully using the contra method to make big profit by only paying a very less price.

Besides the fund enlargement, another attraction of the Forex trading method is that it can be traded in both ways, you can make profit by buying the currency when the currency rise (makes many), or to sell a currency when the currency is dropping to make profit (short-selling), thus does not need to be restricted by the restriction so-called bear market is unable to make money.

Making Profit in the Foreign Exchange Market

The currency fluctuate continuously due to reasons such as political, economical reasons, sometimes the changes could be extremely great, therefore, the Forex traders also can have the opportunity in among which makes a profit. For example, the Japanese Yen daily fluctuation is probably between 0.7% to 1.5%, Forex traders may make profit through buying and selling. All trading could be completed in a short time, the trading strategy could be carry up according to the market conditions, it is extremely flexible, even if the direction looks wrong, the lost could be stop immediately, the lost could reduce but profit potential is still great. Therefore, Foreign Exchange trading is the most flexible and the most reliable investment method.

Here are some of the most commonly used currency names and codes for your use...

Currency name
Currency code
SGD
THB
Swedish krona            
SEK
DKK
NOK
ESP
DEM
USD
EUR
JPY
GBP
CHF
AUD
NZD
CAD
HKD
FRF
ITL
BEF




By TwitterButtons.net

Search Google!

There was an error in this gadget