Minggu, 11 Mei 2008

How To Trade In Stock Markets?

by Lavanay

A famous Chinese Proverb goes that, "Give a man a fish; you feed him for a day. Teach a man to fish and you feed him for a lifetime."

This article is for the newcomers to the stock market trading who have a great desires to learn the charts and the skill of trading. So, it'll be of no help for those people who make the trading decisions based on some fundamentals. Something that distinguished a flourishing trader from the rest is his judgment on when to get in, when to stay out and when to accept a mistake ... He has his charts and the knowledge of using it.

Let us start trading lesson with the Basics of Trends:

TRENDS

As per time frames, we can classify Trends into following types:

A) SECULAR TRENDS B) PRIMARY TREND C) INTERMEDIATE TREND D) SHORT TERM TRENDS

Every short term trend has within it one to several intraday uptrend and downtrends. Every intermediate trend has within it one to several short term uptrend and downtrends. Every primary trend has within it one to several intermediate uptrend and downtrends. So too, every secular trend has within it one to several primary uptrend and downtrends.

What we mean by Bull market is a market in a primary uptrend. What we mean by a Bear Market is a market in a primary downtrend.

A SECULAR BULL MARKET has primary uptrend (Bull mkts) higher in magnitude and duration as compared to its primary downtrends (Bear mkts). Expect the bull markets to unfold longer than the bear markets in a secular bull move. Vice versa for the SECULAR BEAR MKT.A secular bear market has primary downtrends greater in magnitude and duration as compared to its primary uptrend. Expect the bear markets to take longer to unfold than the bull markets in a secular bear move. A Secular trend usually lasts about 10-25 years.

We now know what a secular, primary trends and intermed trends are. We know that each larger time frame has within it smaller time frames of trends. We have an intermed uptrend followed by an intermed downtrend followed by an intermed uptrend, so on so forth.

Few rules:

1) After an intermediate uptrend, the correction should be only 33-66% of that cycle (One intermed cycle = one intermed uptrend and one intermed downtrend). Greater the retracement, the increased likelihood that the primary trend has reversed to the down.

2) substantive increase in volume during the price decline.

The above are some basics ... if you are playing with indicators as well, then all the negative divergences, moving average crossovers puts you on Caution Mode. Most important thing that we all have to remember is that Trading is very simple. Our mind being complicated is the reason why we try to over complicate a simple thing. So as in anything simple, we try to leave it as simple as we can.

For more on trading tips, read http;//bazaarlive.info

About the Author

Lavanay is a blogger/writer who writes on Stock Markets India and Stock Recommendations India

Forex Trading Robots Vs Manual Trading Which Is Best?

by kelly Price

Should you buy a forex robot and trust it to lead you to currency trading success or should you learn forex trading yourself and trade manually? Which is more likely to lead you to currency trading success?

Consider this question:

If forex robots make as much as they claim why don't banks and brokerages sack their fund managers and dealers and use robots?

Think about it - most of the forex trading robots you see claim to make as much, if not more than the best bank dealers, yet only cost a few hundred bucks.

So why don't the banks and brokerages sack their dealing teams that cost them far more? You could ask yourself as well - why bother working, when you can just sit at home, put your feet up and your robot goes to work for you?

The answer is of course the forex trading robots you see online won't make you money long term. Why? Well consider this, all the track records you see are made up in hindsight and simulated, there NOT real trading. Here is the typical disclaimer you will see:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Think a track record with the above printed on it will make you money? Well try it and see!

These automated trading systems are designed to appeal to the greedy or naive investor and they really should know better - making money in any venture is not easy.

There is one advantage you have over any robot - you are capable of independent thought, no computer can think for itself and your brain is an amazing tool - if you use it correctly.

The rewards with manual trading are huge and you need to work smart and get a set of trading rules, to execute your trading system and have the discipline to follow it.

Forex trading offers huge rewards for the effort you need to put in and anyone can learn to trade - it's just a question of having the right mindset and right forex education.

Today, we marvel at computers and how they have enriched our lives - but in forex trading the appliance of science is not enough, as markets don't move to set formula's, there an odds game. However, if you learn how to trade the odds you can win.

So which is best using a forex robot or manual trading?

You know our view its manual trading although we have seen some robots that can make money (they are either expensive or require tremendous discipline) you can make more if you apply yourself correctly.

Forex trading is a challenge and one you win just keep in mind you can win have confidence in your ability and learn currency trading for long term gains and don't trust anyone else - especially not a forex trading system with a simulated track record!

About the Author

NEW! 2 X ESSSENTIAL FOREX PDFS PDF

For free 2 x trading Pdf's, with 50 of essential info and an exclusive forex Trading Course visit our website at: http://www.learncurrencytradingonline.com

Win At Forex Trading - Can You Do It Answer This Question!

by kelly Price

If you want to win at forex trading you need to answer the question in this article - if you can't answer it, you will join the 95% of forex traders who lose money so see if you can answer it...

My trading edge (defined) is:

A trading edge is something that will put you in the 5% of winning traders. Keep in mind, the vast majority of forex traders lose 95% and you need an edge to beat them Let's look at what is not an edge. Many traders think the beliefs below will help them win but they wont - here they are:

- I can forex day trade and scalp and win
- Forex expert opinion and news is a great way to trade
- I am following a forex robot I bought online
- My broker gives great advice
- Buy low sell high is a great way to make money
- I think the best way to win is to predict price movement
- The more I trade the more I will make
- You have to be in the market all the time in case you miss a big move
- The more complicated my trading system the better the chances of profit
- The harder you work the more you make

All the above are beliefs held by losing traders. Believe any of them and you will lose.

To win at forex trading you need an edge, all edges are different but there are certain common traits.

Here are some basics of a forex trading strategy that has an edge.

- A simple trading system which is robust based on trading the odds.
- Long term trend following or swing trading
- Trading the reality of price change and the truth rather than predicting
- Strict money management
- The user knows why there system works and why it will continue to work
- The user from the above has confidence which leads to discipline.
- The user knows success relies on them and their ability

The formula for market success is:

Forex trading system + Discipline to apply = Long Term Forex Profits

The key really is mindset to know why your system will win and have confidence in the edge, so you can apply the system with discipline. If you can't apply your trading system with discipline you will lose.

A trading edge is essential to win and success comes from within. If you think you can follow other peoples systems or opinions you will lose. Most traders are naïve lazy or both and simply don't see that success relies on them and them alone.

Of course, if you understand the above and learn currency trading the right way, your forex education can lead you to long term success. Forex trading is hard and you would expect it to be with the rewards on offer - but that's good news!

It means more money for you, if you trade the right way and acquire a trading

About the Author

NEW! 2 X ESSSENTIAL FOREX PDFS PDF

For free 2 x trading Pdf's, with 50 of essential info and an exclusive Currency Trading Course visit our website at: http://www.learncurrencytradingonline.com

Simple Technical Stocks Trading Method - Stock Trading Robot

by John Lam

Many people want to earn money from stock market, which they think is simple and easy. Stock market investors should first learn how to protect their capital rather than concentrating on making some quick money. Only 10% of the stock market traders are able to make money, 90% of the traders are in loss. Trading with the medium term target is one of the good and safe methods to make money from stock market. It involves less risk as the stocks will be purchased by paying full amount.

Technically, it is possible to earn 20% within 10 - 15 trading days using momentum theory. Momentum theory can be applied to Stocks or Commodities. Momentum is simple rate of change- the speed at which a stock ascends or declines. It is calculated by taking the difference between prices separated by a fixed interval of time. For example today's 5-day momentum value would be yesterday's price recorded 5 days ago; yesterdays would be yesterday's price minus that of 5 days before yesterday and so on.

Expressed mathematically..

M= Today's Price- 5 days ago price

One basic way to use a momentum indicator is to buy when it becomes positive and sell when it turns negative. Logically, you are buying when the market is picking up momentum and selling when that momentum is lost. The problem is that, by definition, your entering the market after it has made its turn. But even it you miss the beginning of the move, you should catch most of it, if indeed the market is turning. Later, this should also allow you to exit the market with a profit before prices actually start moving against you in earnest.

Summary:

Price Rise:

1. When the momentum indicator is above zero and moving up, upward momentum is increasing.

2. When the momentum indicator is above zero and moving down, upward momentum is decreasing.

Price Declining:

3. When the momentum indicator is below zero and moving down, downward momentum is increasing.

4. When the momentum indicator is below zero and moving up, downward momentum is decreasing.

Points to remember before starting Stock Trading using momentum theory

Movement of particular stock depends on various factors like good or bad news about that stock and economy of the country.

Its better to analyze the individual stock and the Index. If both are moving in same direction than trade in that particular stock.

This is one of the methods to technically predict the stock price movement. There are so many other methods like Moving Average, Gap Theory, etc. Combining the results of all these theories gives correct price prediction of a stock.

Now a day with the help of computer software, it is very easy and accurate to find the stocks which will double with-in few days.

Check this Trading software that can be very useful to find stocks which will double within few trading days.

Free Classifeds

About the Author

John Lam is in Stock Srading Business for more than 10 years.

To Be Live By Doing Trading

by Chowrich Yuen

I belive that it’s possible to make a great income from the stock market. There are many advantages to trading as opposed to other professions. Trading will often give financial independence to any one who are willing to put some hard work into if. Many traders have the ability to generate huge incomes from very little effort. Some traders may look at their portfolio for only half an hour a day and yet the others may be one whole week just to study the trend of the . Giving them time to spend the rest of their day with their family or whatever else they want to do.

The major disadvantage to trading is that it is considered to be risky. Even though you can generate huge monthly incomes from time to time there are also times when you will lose money. Many traders will have losing months every now and then. That is why investors will develop systems that will make money in the long run. Most traders will overlook the losses that they might encounter by knowing that overall their system is a money making system. Because every trader will experience consecutive losses during times it is important for them to use proper risk management.

Professionals will not risk more then 2-5% of their account on any 1 trade. That way they can still experience long sets of losses while making money in the long run. Another thing they will tell you is you need to have excess profits. If you need $4,000 a month to live comfortably you don't want to retire when you start making $4,000 a month, because unexpected losses will occur. A rule of thumb is you do not want to become a professional trader until you can make your desired 1 year income in 3 months or less.

About the Author

Chowrich is the owner of http://www.earningbest.com/Make Money Online. For further recommended resources on how to start a profitable Make Money Online business that is Guaranteed to jumpstart your trading business. {a href=”http://www.earningbest.com/”}Click here to grab your chances.

3 Tips to Daytrading Stocks

by Scott Cole

The first thing that you must do to find stocks suitable for daytrading is screen for liquidity and volatility. It makes no sense daytrading an illiquid stock, because you will get killed by the wide bid/ask spreads. Furthermore, it only makes sense to trade volatile stocks, those that regularly move 3-5% in a day.

Second, you need to figure out your choice of weapon. Are you interested in scalping for profits, or looking for big 1 to 3 day moves (sometimes referred to as swing trading)? My personal preference is the latter.

Finally, once you have figured out your style of trading, learn to identify those stocks that are ready to move TODAY! There are a variety of patterns that show some statistical significance in leading up to sizable moves.

I recommend the TC2000 program by Worden Brothers. With this program, you have the ability to screen thousands of stocks and narrow them down to the handful that are solid daytrading and swing trading candidates.

About the Author

Nearly 20 years experience in trading stocks, currencies and commodities; former hedge fund execution trader and formerly registered as a Commodity Trading Advisor (CTA). To learn the 3 Biggest Mistakes Made by Daytraders, check out www.bestdaytradingstocks.com.

Work from Home Trading Forex

by Karen Fairham

Ways of making money on the internet are abundant today and everyone is competing for that great product to market. Making money from home ranges from paid surveys to affiliate marketing and many more, but all these require a great deal of marketing on your part.

Forex Trading is a great way to work from home because you do not require having your own product, building a website or buying a domain name. one way of trading forex without so much stress is through the use of autopilot system which trades your account for you.

Trading forex simply means buying and selling currency pairs simultaneously, meaning that you buy one and sell the other at the same time. By using an autopilot system what you are doing is simply handing over control to mathematically designed complex algorithms which will analyze the market data and enter trades on your behalf. Most of the systems live up to their name by not requiring any sort of attention from you, although you must set them up properly the first time.

Trading forex using the autopilot system might require that you download a piece of software that runs on various famous trading platforms. Some of them also allow you to start trading with capital as little as $100 and in some cases even less than that. Because the forex market is open 24 hours majority of the forex autopilot system can run on your computer for 24 hours non stop but it might require that you keep your system on.

Deciding to start forex trading as a work at home opportunity using forex autopilot system, you must ensure that you set up the system properly from the start. Most of the programs take about 15-20 minutes to set up and once it is set up you are ready to start trading. Using a forex autopilot in most cases might require for you to either use the default trade settings or to select your trade setting. If you are knowledgeable in forex trading then it will be wise to select a setting that will suit your trading account, but if you do not have any previous trading knowledge you might be better off using the default setting with the recommended account value.


About the Author

For more information on how you can work at home trading forex using forex autopilot system visit: http://www.forexxautopilot.info