Friday, 30 December 2016
Entire Forex strategy in under 30 minutes | So You Want to be a Trader: ...
The last video of the year and and a full strategy. Happy and prosperous 2017 everyone!
Labels:
complete strategy,
Forex,
reversal,
risk management,
strategy
Thursday, 22 December 2016
HOW MUCH CAN I MAKE TRADING FOREX?
Wednesday, 21 December 2016
Watch The Forex Guy Make a $7000 Trade with Simple Swing Trading!
OK ready for 1300 ROI?
Swing trading on forex
Labels:
Candlestick charts,
Forex,
ROI,
swing trading,
trends
Tuesday, 20 December 2016
Forex Live Trading - How To Make $1500 In No Time At All
OK, so the last strategy was to take only a few minutes. This one - "no time at all" - see what you think
Labels:
breakout,
entries and exits,
Forex,
reversal,
stop loss
Monday, 19 December 2016
Earn $120 in 5 Minutes by Selling Puts
You'll like this: income from selling puts - following a few indicators forever. It's a strategy you'll see a lot on this blog - what do you think of the indicators?
Tuesday, 13 December 2016
Several chart patterns are very useful in controlling risk while
capitalizing on profitable opportunities.
Two of these, which you will see you lots of in my trading signal posts are the triangle and wedge.

Chart patterns such as the triangle are traded by entering when the lines drawn to create the chart pattern are penetrated by price action. Before this occurs the chart pattern has already provided us with a profit target. The profit target is generally based off the thickest part of the chart formation.
Stops are generally set just outside the other edge of the chart pattern. If a break downward occurs, a stop is placed just above the upper resistance of the chart formation. In the case of a triangle, the lines move towards each other over time, eventually coming to an apex. This means that over time, and the closer prices move towards the apex, the less we need to risk in order to achieve the potential reward (profit target).
Because of the nature of the chart pattern the risk will always be less than the reward, and while risk (as determined by how far away our stop loss is from our entry point) diminishes over time, our profit target is fixed.
In order to be a profitable trader we must win more than we lose. By trading with chart patterns we are able to do this, as our wins will generally be larger than our losses. The only pattern which is generally a one to one risk/reward is a range trade, also known as a rectangle chart formation.
The rectangle can be made a potentially profitable chart pattern by placing our stop somewhere within the formation, instead of on the outer reaches. If prices break out, only to fall back below a support level within the range, we can call that a false breakout and look for a new entry or trading opportunity. Our profit target will remain the height of the range, added to the break out price.
A topping head and shoulders pattern can also be made
profitable by placing a stop just above the right shoulder when we enter
a trade. The profit target for a head and shoulders pattern is the top
of the "head" to the low point between the shoulders and the head. This
is then subtracted from the breakout point, which is the low point of
the shoulders (or "armpits"). The profit target for a bottoming pattern
is calculated the same way, based on a break upwards above the high of
the armpit.
In this way, our profit target is based on the full formation, while our risk is limited to a portion of the formation. Thus our risk is less than our potential reward. So why trade with chart patterns? Quite often a chart pattern provides us with everything we need to trade with. They provide us with an entry point (the breakout), a stop level, profit target, and generally the risk can be kept to less than our potential reward.
There are several other patterns to watch for, which can be traded profitably if we manage our risk and allow the market to reach our profit targets.
Two of these, which you will see you lots of in my trading signal posts are the triangle and wedge.
Chart patterns such as the triangle are traded by entering when the lines drawn to create the chart pattern are penetrated by price action. Before this occurs the chart pattern has already provided us with a profit target. The profit target is generally based off the thickest part of the chart formation.
Stops are generally set just outside the other edge of the chart pattern. If a break downward occurs, a stop is placed just above the upper resistance of the chart formation. In the case of a triangle, the lines move towards each other over time, eventually coming to an apex. This means that over time, and the closer prices move towards the apex, the less we need to risk in order to achieve the potential reward (profit target).
Because of the nature of the chart pattern the risk will always be less than the reward, and while risk (as determined by how far away our stop loss is from our entry point) diminishes over time, our profit target is fixed.
In order to be a profitable trader we must win more than we lose. By trading with chart patterns we are able to do this, as our wins will generally be larger than our losses. The only pattern which is generally a one to one risk/reward is a range trade, also known as a rectangle chart formation.
The rectangle can be made a potentially profitable chart pattern by placing our stop somewhere within the formation, instead of on the outer reaches. If prices break out, only to fall back below a support level within the range, we can call that a false breakout and look for a new entry or trading opportunity. Our profit target will remain the height of the range, added to the break out price.
In this way, our profit target is based on the full formation, while our risk is limited to a portion of the formation. Thus our risk is less than our potential reward. So why trade with chart patterns? Quite often a chart pattern provides us with everything we need to trade with. They provide us with an entry point (the breakout), a stop level, profit target, and generally the risk can be kept to less than our potential reward.
There are several other patterns to watch for, which can be traded profitably if we manage our risk and allow the market to reach our profit targets.
If you would like to know more, are interested in learning how to
start trading, need help with trading methods or want to know who to
trade with, visit me at http://vantagepointtrading.com/trading-courses
You will have access to tons of free information including multiple FREE day, swing, and long term TRADING SIGNALS.
Article Source:
http://EzineArticles.com/expert/Cory_A._Mitchell/24465
You will have access to tons of free information including multiple FREE day, swing, and long term TRADING SIGNALS.
Article Source: http://EzineArticles.com/2322610
Labels:
head and shoulders,
profit targets,
rectangle,
risk and reward,
Swing trading,
wedge pattern
Monday, 12 December 2016
How to Generate Consistent Income Trading Options
Consistent Income - surely what we're all looking for. Personally I have found options useful in collecting a regular consistent income
Labels:
high probability trades,
regular income,
simple,
stacking trades,
system,
trade size,
trading options
Sunday, 11 December 2016
How to trade stock options for beginners
Dispelling some myths and answering some simple questions on options trading - why, how and aren't they risky?
Saturday, 10 December 2016
Call Options & Put Options Explained Simply In 8 Minutes (How To Trade O...
Still looking at options but unsure where to start - this is Bill Pollos and his use of cartoon characters to make options accessible and how to understand leverage.
Friday, 9 December 2016
How I made 84% Return in 3 days - Put Option Trading Case Study
A case study of placing a trade and making profits in 24 hours, quick returns from options trade - from one day to the next, riding the downtrend. Using options for leverage.
Thursday, 8 December 2016
How I Trade Weekly Options
Using the option chart instead of the stock chart to time and work out trades, benefitting from time decay on weekly options - a way of winning from stocks that don't move.
Labels:
buying in the money options,
call,
charts,
put,
shorting options,
time decay,
weekly expiry,
weekly options
Wednesday, 7 December 2016
How To Sell Puts For Max Profits In Shorter Time
Selling put options can be a very useful strategy for collecting regular income from the markets and getting the regular cashflow that this blog is all about. What do you think -
Tuesday, 6 December 2016
Why Only 10% of Stock Traders are Successful (and 90% Fail)
Another video from Tradersfly - this time - why do so many traders fail? What is the mindset that leads to success and what causes so many of us to get distracted? An interesting insight into why its so tempting to go after the next shiny thing, without ever getting good at one strategy at a time.
How about you? Are you distracted when trading? Or if you're focussed what helps you to keep to the same strategy?
Labels:
focus,
mindset,
risk management,
strategy,
Successful trading
Monday, 5 December 2016
Ep 106 : Basic Guide to Trading Options
Personally I like options - the leverage they give and the returns they offer. If you're thinking of using them then this is not a bad starting point. Collecting premiums as cashflow - what's not to like?
Sunday, 4 December 2016
Which is the best indicator for trend trading?
Another video on trend trading from"Trading with Rayner". This time - what are the best indicators (you choose) to use to find trends? Also an analysis of a trend and how to use the 50 & 20 period moving average.
Saturday, 3 December 2016
How to better time your entries in trending markets
So what do you think - any use in helping to time trades better?
How to identify an "area of value" using moving averages, support and resistance.
Thursday, 1 December 2016
Saturday, 26 November 2016
Financial Spread Betting - Make Risk Management Part of Your Strategy
With financial spread betting you bet on margin which means that
you benefit from increased leverage. That is, you pay a small initial
deposit (margin) and that allows you to take a larger position than you
would be able to in say traditional shares trading. Profits can be
substantial but so too can losses, that's why it's important you
understand the financial market you are betting on, proactively manage
your risk and always keep a close watch on your open positions. Risk
management is always at the core of any successful financial spread
betting strategy.
Controlled Risk Stops and Guaranteed Stops
Placing a stop on your bet is very important. For every bet you place simply calculate how much you can afford to lose and place a stop at the exact position in the market where you would exceed that amount. Guaranteed stops do exactly what you would expect them to, so, even if the market is subject to 'slippage' (a sudden, rapid movement) your position will be guaranteed to close out.
Monitor All Positions Closely
Keeping an eye on your open positions is very important too. Financial spread betting is done on margin and that can be an advantage, but remember, if a market quickly moves against you, you might have to increase the amount of your original margin as security. While it's up to you to monitor your margin on all your positions, if you receive notification from your provider that more margin is due, do not ignore them. A recent report by research organisation Investment Trends suggests that the largest spread betting company in the UK is IG Index.
Article Source:
http://EzineArticles.com/expert/Nicholas_Dockerty/575396
Controlled Risk Stops and Guaranteed Stops
Placing a stop on your bet is very important. For every bet you place simply calculate how much you can afford to lose and place a stop at the exact position in the market where you would exceed that amount. Guaranteed stops do exactly what you would expect them to, so, even if the market is subject to 'slippage' (a sudden, rapid movement) your position will be guaranteed to close out.
Monitor All Positions Closely
Keeping an eye on your open positions is very important too. Financial spread betting is done on margin and that can be an advantage, but remember, if a market quickly moves against you, you might have to increase the amount of your original margin as security. While it's up to you to monitor your margin on all your positions, if you receive notification from your provider that more margin is due, do not ignore them. A recent report by research organisation Investment Trends suggests that the largest spread betting company in the UK is IG Index.
Friday, 25 November 2016
"Stock market for beginners" - Advice by Warren Buffet
Can't argue with the master himself - what would Warren Buffett suggest to stock market beginners?
Labels:
advice,
investing,
stock market for beginners,
trading,
Warren Buffett
Stock Trading Risk Management Plan
Every successful business has a Risk Management Plan.
And Stock Trading is a business!
Every prudent business-person wants to first cover his overhead expense each month, and then concentrate on achieving a steady growth in earnings.
Rather than striving for the big hit, they protect capital first and work for consistent returns and take more aggressive risk with a portion of profits.
Not accidentally, the big hits and home runs still come along, but they come along without excessive risk.
The stock trading Business Philosophy is based upon 3 principals (in order of importance):
1. Preservation of Capital
2. Consistent Profitability
3. Pursuit of Superior Returns
In other words, preservation of capital...leads to consistent profits...which makes pursuit of superior returns possible.
This is a risk management plan, and this is how you build wealth.
Preservation of capital and money management is the cornerstone of stock trading. Risk is the prime concern. Before asking "what kind of profit can I make?", ask first "what potential loss can I suffer?" This is merely astute financial risk management.
A storekeeper takes a risk every time he stocks new merchandise. If it does not sell, he will lose money. A smart businessman takes only risks that will put him out of business even if he makes several mistakes in a row.
As a stock trader, you are in the business of trading. You need to define your businessman's risk - the maximum amount of money you will risk, or lose, on any single trade.
Plain and simple, these are basic risk management principals.
There is no standard amount of money to risk, just like there is no standard business. An acceptable businessman's risk depends on the size of your trading account, and your trading method and pain and tolerance.
Emotional Trading
Trading is so exciting that it often makes stock traders feel high, and then suddenly very down.
Nobody can get high and make money at the same time. Emotional trading is the enemy of success. Fear and Greed are bound to destroy a stock trader.
A real professional stock trader does not get to excited or down about wins or losses
This is proper stock trading psychology.
The goal of a successful professional in any field is to reach his personal best. You need to concentrate on trading right. Each trade has to be handled like a surgical procedure - seriously, soberly, without sloppiness or shortcuts.
This is a stock trading risk management plan.
A loser cannot cut his losses quickly. When a trade starts going sour, he hopes and hangs on, and his loses pile up. And as soon as he gets out of a trade, the market comes roaring back.
Trends reverse when they do because most losers are alike. They act on their gut feeling instead of using their heads. The emotions of people are similar, regardless of their cultural background or educational levels.
Emotional traders go into risky gambles to avoid taking certain losses. It is human nature to take profits quickly and postpone taking losses.
Emotional trading destroys losers. Good money management and timing techniques will keep you out of the hole. Losing traders look for a "sure thing", hang on to hope, and irrationally avoid accepting small losses.
Having a risk management plan is not an option if you want to succeed as a stock trader.
And Stock Trading is a business!
Every prudent business-person wants to first cover his overhead expense each month, and then concentrate on achieving a steady growth in earnings.
Rather than striving for the big hit, they protect capital first and work for consistent returns and take more aggressive risk with a portion of profits.
Not accidentally, the big hits and home runs still come along, but they come along without excessive risk.
The stock trading Business Philosophy is based upon 3 principals (in order of importance):
1. Preservation of Capital
2. Consistent Profitability
3. Pursuit of Superior Returns
In other words, preservation of capital...leads to consistent profits...which makes pursuit of superior returns possible.
This is a risk management plan, and this is how you build wealth.
Preservation of capital and money management is the cornerstone of stock trading. Risk is the prime concern. Before asking "what kind of profit can I make?", ask first "what potential loss can I suffer?" This is merely astute financial risk management.
A storekeeper takes a risk every time he stocks new merchandise. If it does not sell, he will lose money. A smart businessman takes only risks that will put him out of business even if he makes several mistakes in a row.
As a stock trader, you are in the business of trading. You need to define your businessman's risk - the maximum amount of money you will risk, or lose, on any single trade.
Plain and simple, these are basic risk management principals.
There is no standard amount of money to risk, just like there is no standard business. An acceptable businessman's risk depends on the size of your trading account, and your trading method and pain and tolerance.
Emotional Trading
Trading is so exciting that it often makes stock traders feel high, and then suddenly very down.
Nobody can get high and make money at the same time. Emotional trading is the enemy of success. Fear and Greed are bound to destroy a stock trader.
A real professional stock trader does not get to excited or down about wins or losses
This is proper stock trading psychology.
The goal of a successful professional in any field is to reach his personal best. You need to concentrate on trading right. Each trade has to be handled like a surgical procedure - seriously, soberly, without sloppiness or shortcuts.
This is a stock trading risk management plan.
A loser cannot cut his losses quickly. When a trade starts going sour, he hopes and hangs on, and his loses pile up. And as soon as he gets out of a trade, the market comes roaring back.
Trends reverse when they do because most losers are alike. They act on their gut feeling instead of using their heads. The emotions of people are similar, regardless of their cultural background or educational levels.
Emotional traders go into risky gambles to avoid taking certain losses. It is human nature to take profits quickly and postpone taking losses.
Emotional trading destroys losers. Good money management and timing techniques will keep you out of the hole. Losing traders look for a "sure thing", hang on to hope, and irrationally avoid accepting small losses.
Having a risk management plan is not an option if you want to succeed as a stock trader.
StockMarket-Coach.com cares a great deal about you. Our aim is to
provide the best stock advice with a friendly and positive attitude to
keep you on the road to trading success. StockMarket-Coach's mission is
to provide a program of sound investing advice, education, and support
that helps create successful lifetime stock investors. By doing the
appropriate investment research and therefore becoming a confident,
knowledgeable stock investor, you as a stock trader is empowered to
build better financial futures for yourself and your family.
Peace and Abundance!
http://www.stockmarket-coach.com/index.html
Article Source:
http://EzineArticles.com/expert/Dean_Gust/538939
Peace and Abundance!
http://www.stockmarket-coach.com/index.html
Article Source: http://EzineArticles.com/5040720
Thursday, 24 November 2016
Stock Trading for Kids Students and Beginners
Back to basics another time for this one - for kids, students and beginners - keeping it simple works best for me. Not sure I'd let children loose on the markets just yet though - let me know what you think.
Labels:
beginners,
breakout,
charts,
kids,
resistance,
stock trading,
support,
trend lines
Wednesday, 23 November 2016
Investing in the Stock Market for the Individual Investor
Investing in the Stock Market for the Individaul Investor
By: Harry Hooper
Foreword
Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.
If you are considering investing in the stock market it is very important that you understand how the markets work. All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.
The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company. If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.
When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.
People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst. They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.
Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market
Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.
By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.
A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.
Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?
A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.
Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.
The company raises money through the primary market. This is the Initial Public Offering (IPO). Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.
Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy. Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.
Bull Market - Bear Market
Anyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?
A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit. Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.
In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.
Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight. An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices. Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
Brokers
Traditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection. They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip Stocks
Large well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors. Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks
Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.
The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.
Income Stocks
Income Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.
Value Stocks
Sometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at. These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.
Defensive Stocks
Defensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.
Market Timing
One of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools. We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.
One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.
One example of market timing signals are those available from www.stock4today.com.
Risks
There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it. Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.
Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.
One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock. If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.
One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".
As investors we need to find our "Risk Tolerance". Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.
Benefits
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!
The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers. No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.
Day Trading
Day Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price. It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.
Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.
There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.
Author Bio
Harry Hooper has over 30 years experience in portfolio management. He is the senior stock tracker for http://www.stock4today.com.
Article Source: http://www.ArticleGeek.com - Free Website Content
By: Harry Hooper
Foreword
Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.
If you are considering investing in the stock market it is very important that you understand how the markets work. All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.
The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company. If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.
When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.
People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst. They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.
Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market
Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.
By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.
A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.
Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?
A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.
Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.
The company raises money through the primary market. This is the Initial Public Offering (IPO). Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.
Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy. Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.
Bull Market - Bear Market
Anyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?
A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit. Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.
In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.
Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight. An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices. Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
Brokers
Traditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection. They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip Stocks
Large well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors. Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks
Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.
The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.
Income Stocks
Income Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.
Value Stocks
Sometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at. These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.
Defensive Stocks
Defensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.
Market Timing
One of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools. We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.
One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.
One example of market timing signals are those available from www.stock4today.com.
Risks
There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it. Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.
Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.
One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock. If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.
One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".
As investors we need to find our "Risk Tolerance". Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.
Benefits
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!
The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers. No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.
Day Trading
Day Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price. It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.
Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.
There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.
Author Bio
Harry Hooper has over 30 years experience in portfolio management. He is the senior stock tracker for http://www.stock4today.com.
Article Source: http://www.ArticleGeek.com - Free Website Content
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market timing,
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Value Stocks
Tuesday, 22 November 2016
Can I really make decent cashflow from trading?
So is it possible to create an ongoing, regular income from trading a couple of hours a month - the sort of income that could replace your job and allow you to work anywhere with an internet connection?
That's the promise of a good many stock market and trading trainers and is what we'll be looking at in this blog - answering questions such as:
- What sort of money do you need to get started?
- What's the optimum risk per trade and overall in an account?
- What strategies work best for the individual investor?
- How best can we/you do this alongside a regular job, whilst busy dealing with customers, bills, family, children and all of the other commitments that life throws our way?
Are you with me? Genuine experience and case studies/ stories would be very welcome.
Richard
That's the promise of a good many stock market and trading trainers and is what we'll be looking at in this blog - answering questions such as:
- What sort of money do you need to get started?
- What's the optimum risk per trade and overall in an account?
- What strategies work best for the individual investor?
- How best can we/you do this alongside a regular job, whilst busy dealing with customers, bills, family, children and all of the other commitments that life throws our way?
Are you with me? Genuine experience and case studies/ stories would be very welcome.
Richard
Review of Cashflow 202
Review of Cashflow 202 by Robert Kiyosaki
Introduction
Cashflow
is a game by Robert Kiyosaki to teach investing tactics, terms and
strategies to players. It is based on the principles of the book “”Rich
Dad: How To Get Out of the Rat Race Game”. Cashflow 101 is the basic
level of the game, letting you buy and sell real estate and buy stocks
via cash or debt. Cashflow 202 is a more advanced version of the
Cashflow game; it adds stock options and property option contracts to
the mix. In this review, we’ll look at the strengths and weaknesses of
the Cashflow 202 computer game.
Cashflow 202 is one of the few business games that lets you invest in intellectual property as a source of passive income. | Source
What Are the Strengths of Cashflow 202?
If
you want to learn the economics of stock options and puts, Cashflow 202
is one of the best ways to practice. You aren’t running a fantasy stock
market portfolio and day trading but practicing the concepts in a
control game that has no real world consequences. And you learn how to
manage them on a balance sheet and track the impact of these assets on
your available cash flow.
Cashflow 202 teaches the value of insurance in a way no number of Dave Ramsey lectures would.
There’s more to making money than buying real estate to flip at a profit (or loss), buy stocks for capital gains or dividends and rental real estate. Cashflow 202 introduces players to many types of business deals that can generate money, from inventions to intellectual property rights to buying shares in reinsurance trusts. Even most versions of Tycoon don’t cover the same breadth of investment opportunities as Cashflow 202.
Cashflow 202 teaches the financial impact of having money tied up in options – and the risk of not having enough cash to exercise the option when you can act on it.
The digital version of Cashflow 202 shares the advantages of the computer and online versions of Cashflow 101 – you can play by yourself against computer players and save games for later.
Cashflow 202 teaches the value of insurance in a way no number of Dave Ramsey lectures would.
There’s more to making money than buying real estate to flip at a profit (or loss), buy stocks for capital gains or dividends and rental real estate. Cashflow 202 introduces players to many types of business deals that can generate money, from inventions to intellectual property rights to buying shares in reinsurance trusts. Even most versions of Tycoon don’t cover the same breadth of investment opportunities as Cashflow 202.
Cashflow 202 teaches the financial impact of having money tied up in options – and the risk of not having enough cash to exercise the option when you can act on it.
The digital version of Cashflow 202 shares the advantages of the computer and online versions of Cashflow 101 – you can play by yourself against computer players and save games for later.
If you think that all debt is dangerous, this is not the financial education computer game for you. | Source
What Are the Weaknesses of Cashflow 202?
The game’s resources for teaching you how puts, options and other instruments work are weak.
While Cashflow 101 can be played by children in the upper elementary grades with some coaching or middle school students after they’ve read the information, Cashflow 202 is high school level at a minimum. The Rich Dad franchise does have a “Rich Kid Smart Kid” book and website, but this is actually inferior to parents teaching kids the concepts and letting the kids practice the Cashflow 101 game. If you want to teach your kids about saving and investing from very start, the Dave Ramsey Junior books and kits are the better choice.
While Cashflow 101 can be played by children in the upper elementary grades with some coaching or middle school students after they’ve read the information, Cashflow 202 is high school level at a minimum. The Rich Dad franchise does have a “Rich Kid Smart Kid” book and website, but this is actually inferior to parents teaching kids the concepts and letting the kids practice the Cashflow 101 game. If you want to teach your kids about saving and investing from very start, the Dave Ramsey Junior books and kits are the better choice.
Observations about the Game Cashflow 202
The
game ups the ante on big ticket purchases. You don’t have a choice when
the doodad square makes you buy a $50,000 cabin with maintenance, a
$20,000 country club membership plus maintenance fees, a fancy car with a
thousand a month maintenance.
The game does teach you the long term drain these items cost you, draining cash that otherwise lets you build your cash flow as well as hinders the ability to improve your situation long term. But in real life, more people would be willing to say no, you don’t get to go to a $50,000 a year college plus a thousand a month in extra fees – you’re going to state school because it is all we can afford. If the intent is to impress on you the “Millionaire Next Door” lesson that buying stuff in anticipation of becoming rich keeps you poor, it does teach that lesson.
The game does teach you the long term drain these items cost you, draining cash that otherwise lets you build your cash flow as well as hinders the ability to improve your situation long term. But in real life, more people would be willing to say no, you don’t get to go to a $50,000 a year college plus a thousand a month in extra fees – you’re going to state school because it is all we can afford. If the intent is to impress on you the “Millionaire Next Door” lesson that buying stuff in anticipation of becoming rich keeps you poor, it does teach that lesson.
Monday, 21 November 2016
Sunday, 20 November 2016
How to buy silver bars
Effective Tips On How To Buy Silver Bars
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In the current unpredictable market
conditions, the long standing tradition of possessing gold and silver
coins has again gained attraction since they are believed being a more
prudent investment in the times of uncertainty. Silver is really a
precious metal which is thought to be a relatively stable style of
investment. Silver can be a store of value, which means it can be
stored and retrieved to be used in the future. Silver bars are produced
in different weights by most organisations and are generally the
primary vehicle used by individuals interested in investing in silver
bullion. Even if the silver standard ended in 1935, silver is yet being
buy for investment purposes.
Methods to Buy Gold and Silver Bullion The traditional technique of investing in silver has always been to buy rectangle-shaped, silver bars which are easy to store in a secure at home or in a safety deposit box at a bank. In Liechtenstein, Switzerland, silver bullion bars are offered on the market by bank teller, however, this selection is not available in the USA. Silver Bar Sizings There are numerous sizes of silver bars available for investment purposes. Based on how much room a purchaser has for storage and how much total weight they want to obtain, there is a wide range of sizes of silver bars to satisfy any investor's needs. Traders of silver bars can choose from the next sizes to fulfill their particular investment needs: -1,000oz Troy Bars weighing about 31 kilograms and considered to be good release by exchange. -100oz Troy Bars with a weight of about 6.8 pounds are the preferred size for investment requirements. -32.15 Troy Ounce Bars weight 1Kg -10oz Troy Bars weighing three hundred eleven grams Unusual weight retail silver bars without recognized company name label come at a lower price, but have additional risk. Symbols on Silver Bars Silver bars with investment class are stamped with information with regards to the weight and fineness of the silver and also name of the mint. For example, a .999 Fine Silver mark designates a silver bar with investment-quality knowing that the silver is 99.9% pure. Silver bars are created and distributed by mints across the world, nevertheless the only items that prohibit the value of silver bars are their weight and of course the purity of the silver. Storage of Silver Bars Given that silver bars are a compact form of investment that hold considerable worth they must be held in a safe, secure place for instance a safety deposit box at a banking institution or perhaps a brokerage firm that will offer these services for a small month-to-month fee. |
| To find out more, be sure to take a look at this site by going to this brilliant link - purchasing silver bars . As well, you can check out buy gold bullion bars Article Source: http://www.articlebiz.com/article/1051628777-1-effective-tips-on-how-to-buy-silver-bars/ |
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Friday, 11 November 2016
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