Dec
24
The Advantages You Get When You Choose Forex Currency Trading
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No Limit up / limit down
When it comes to the Futures market, there is a limitation to the number of transactions and the type of transactions that can be made by a trader. If a currency shows a rise or fall that’s beyond a pre-determined daily limit, traders are not allowed to opt for new positions. All that they can do is to liquidate their current position if they choose.
When it comes to Forex currency trading, such trading constraints do not exist. A trader is free to implement any trading strategy. This helps him to protect his financial investment from the effects of unforeseen price fluctuations by issuing stop loss orders.
24 Hour Forex Trading
The Forex market stays open 24 hours. It starts up in Asia at around 24:00 CET on Sunday evening and closes on Friday around 23:00 CET in the US. It is true that there are electronic communication networks or ECNs that supply after hours trading for the futures market and stock market. However, in Forex currency trading the liquidity is very high and extremely competitive prices are offered. This makes it more exciting and a better money-making enterprise.
Bid/Ask Spread rates
Spread rates in Forex currency trading have seen a phenomenal tightening up in these last few years. On EURUSD (which happens to be one of the most liquid and widely traded pair in currencies), most online Forex brokers are willing to give a spread of about 1.8 – 3 pips. This is equivalent to almost 0.014% and 0.023% on the underlying value of the dollar. This is not possible in stock trading, where you see only stocks that are liquid providing tight spreads. It is predicted that in the future, market spreads will vary greatly swinging to anything between 5 to 9 pips.
Sell Before You Buy
When it comes to equity broking, you have to face highly restrictive margin requirements for short selling. What that means is that a customer will not have the liquidity required in order to sell stock prior to buying it. However, in the spot market, it is slightly different. When you are selling one currency, you have to buy another one necessarily. In Forex currency trading, a trader will hold the same capacity irrespective of whether he is buying position or initiating a selling. That’s another reason why Forex trading has more appeal for traders and brokers.
By: Alan Lim
About the Author:
There are many advantages of considering Forex Currency Trading. To know more about these advantages and to gain better insight into this field, please log on to http://www.workfromhomeatmakemoneyonline.com/forextradingsoftwaresystem/ for more.
Dec
18
Of course, if you are trading off daily charts you might be able to get by with far less effort – a reason that many choose to swing trade rather than day trade - but realize you are also going to be able to “turn” your funds less often, and when swing trading you have to balance the fact that the time between your losing trade and next winning trade is going to be longer. In day trading you might take a loss and then 5 minutes later wipe that feeling away by trading profitably. If you are trading off of daily charts, or even longer weekly charts, you might go a few weeks before you even get another set-up.
This is a primary difference and one you have to keep in mind. Day trading is typically more challenging – both in the workload and the frequency. However, you have the advantage of each trade basically being less important. And you can quickly wipe a bad experience away since another set-up is probably literally developing at that time.
Swing traders have an easier life when it comes to waiting on the set-ups and taking trades, but realize that if you take a few losers in a row, that could be over several weeks and you have to do a better job with the mind games and trading psychology because it could be just two or three losers but the longer time element could wear on you.
So, how do you find what to trade and what timeframe?
We feel it’s actually best to find a mix that works for you. If you can trade using a specific method that will work in both day trading and swing trading it gives you amazing flexibility. You’ll be able to master one trading approach and then apply in the timeframes that make most sense for you in your current lifestyle.
Suppose you like to do a lot of day trading but are about to embark on vacation or begin an import project at work. Wouldn’t it be ideal if you could slide into some swing trading to keep your capital at work but without having to do anything intraday? Then when your schedule returns to normal or you have some hours available one morning, you can mix the day trading back in. Certainly you could focus on one or the other but we’ve found the most successful traders are those that have been able to use one unifying strategy, customize it for the markets they choose to trade and have the flexibility to choose the timeframes that fit their current schedule. Remember, you are supposed to be running your trading plan; it is not supposed to be running you.
What about time commitment?
There is this overreaching human condition that makes us believe that we have to work huge hours to feel like we accomplished something. You need to break that habit, and break it fast. When it comes to trading it is not a measure of success if you put in eight hours today trading, or if you obsessed for three hours in the evening over your next day’s swing trades. You should approach your trading plan with the eye on putting forth the least amount of effort for the return. If you put in too much time and effort, forgetting the stress and strain, you’ll simply be left with a lower return for the efforts. Those of you who instead focus on key timeframes and have a specific strategy know that they will sit down for x amount of time, follow that plan and be done. Time to move on!
This is why we termed an important part of our money and trading management “The Power of Quitting.”
Typically in trading you do not want to use anything negative and quitting certainly sounds negative. However, we have found that this in one of the most important factors between success and failure. In our day trading, we have come up with a plan that we follow, and we use this Power of Quitting concept and personally have set it at “two wins” – this mean when we reach two wins in a trading day and are profitable we quit. We’re done. We even have markets where we call it after one win. The caveat is we keep going if we are negative. We want to give ourselves a way to dig out if the first few trades aren’t as cooperative. There are those =ho have added a losing side to this as well they might trade the two win strategy but add in two losses as well – or three, etc… If they hit that= it is like a circuit breaker for the day to stop. We’ve found that for the most part, if we are using a strategy that has put the odds in our favor when we take every trade, which we can just focus on the lower of Quitting on the win side. For us, that work since we know when a trade is taken, the odds favor us it will succeed. That does not mean for a moment that we feel every trade is a lock for profits. Absolutely not!
You have to accept, right away, that trading is a game of odds. Not everyone likes to hear that because that might imply gambling but let’s call it an educated gamble. It is a gamble because as much as you want to believe that all of your chart and fundamental analysis has figured out the market or stock or commodity you are trading, the simple truth is that we are trading from within a glass booth, nobody can hear us, and we have absolutely no influence on what happens in the markets, none at all. It would be like going to a sporting event where you yell and scream for your favorite team, but you are sitting in the glassed in luxury box. You can yell all you want at the glass and television but nothing you do will influence what happens on the floor one bit. Same goes for trading.
We always accept the fact that we should trade in a way that we stack the deck as much in our favor as possible, take the trade to the plan, then after that it isn’t up to us any longer. We know when we do this right, the odds are favoring us, and even if it doesn’t work out one time, two times, three times or more, that it will eventually work out, and over any longer stretch of trades, we know we’ll be fine.
Yes, it’s never easy when you are going through those inevitable negative streaks. And on paper when you see results and see small losing streaks you always tell yourself that you’d have no problem with that. Once you go live though? That’s another story. Span suddenly that losing streak of four trades is unbearable. You do that many do: you radically change your strategy, you blame the markets, the strategy, the indicators, maybe yourself (though unlikely) and the dog. Then you make the even grander mistake of trying to chase performance with something else.
When you do that, that’s exactly when the strategy you just left wins eight out of nine trades and is way ahead over the longer stretch of trades. You started trading a strategy you weren’t familiar with, made mistakes and caught a losing stretch with that strategy. Now you have just amplified a problem and made it worse the spiral starts and the account wipeout is well on its way. Don’t think this will happen to you? If you have traded for any length of time you have followed this cycle. We’ve done the exact same thing. It is in some ways a rate of passage for most successful traders. If you have not gone down this road you either have amazing discipline, or you have just started trading. In either case, if you can avoid succumbing to this emotion you’ll take years off your success plan.
By: mark
About the Author:
Mark Soberman of NetPicks provides additional free trading information, forex and futures signals along with the free “30 Minute Guide to an Optimized Trading Life” e-book at http://www.netpicks.com/BetterTrading.html
Dec
9
Online Stock Trading Styles
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According to the time taken by a trader to complete a trade, that is time interval between buying and selling of a stock, online stock trading is divided in to two broad categories as short-term trading and long-term investing. Usually if the time period required for completing a trade is under a year, then the trading style is called short-term trading. If it exceeds a year then it is called long-term trading. Almost all active online stock traders you see around a stock exchange are short-term traders, trading mostly according to the merit of shares and can be industry specific. Long-term investors are usually large financial firms or financially sound investors, want to own shares of growing companies.
Online short-term stock trading style can be further divided in to 3 large trading styles as online day trading, online swing trading and online swing trading. Online stock day trading is the most active stock trading style. Day traders complete a trade within minutes or hours for very small capital gains per share according to small fluctuations in stock price level. At the end of the day stock day traders will be free from liability as they do not hold any stock in their hands; that’s how they avoid over-night risks. There are two types of online stock day traders as scalpers and momentum traders. Scalpers are most active traders trading large number of stocks within seconds or minutes for very small gains. Momentum traders trade according to the stock price trends changes with in a day.
Online stock swing trading resembles online day trading; but here the traders are willing to take over-night risks. The trading interval between buying and selling of stocks can range from few hours to 3 or 4 days. They are like momentum traders, trade according to the trends in stock prices. Online stock swing trading can offer more gain per share than day trading but have slightly more risks.
In online stock position trading, the time range between buying and selling of stocks goes more widely, from few hours to week or months. Position traders are always keen to search for higher price levels offering higher profits for them. They may be company or industry specific and follows long-term trends in stocks prices. Online stock position trading can offer more profit than online day trading and online swing trading, but also involve higher amount of risks.
According to the method or scheme followed for trading stocks, online stock trading can be divided in to many trading styles like Brother-in-law style of stock trading in which traders trade stocks according to the advice driven from brokers or experienced traders, Technical stock trading style in which a trader use advanced stock charting and picking tools to find out suitable stocks for trading, Economist stock trading style in which traders trade stocks according to economic predictions by surveys and other companies, Scuttlebutt stock trading style in which trades trade according to information extracted from news sources or brokers, Value stock trading style in which traders trade according to the merit of shares irrespective of the market condition, and Conscious stock trading style in which a trader either does not follows any proper trading style or follows combination of 2 or more of above styles.
By: Praveen Ortec
About the Author:
Praveen Ortec works for NobleTrading.com, an online trading broker providing online day trading and other online swing trading for stocks, options, futurs and forex on 4 different trading systems.
Dec
5
The Skill of Using Stock Metadata as a Stock Market Investing and Trading Tool
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Simply stated, metadata is data about data. And when properly understood and interpreted, stock market metadata, also simply referred to as stock metadata, can give you the edge you need to help you picture what’s happening with a company’s stock. So if there’s a trading trend developing, one of the tools you can use to spot a trend as it moves along would be stock metadata.
Working with Stock Metadata?
When you go online, you find vast varieties of stock charts, current and historical stock market results, and an increasing number of online news sources. But finding anything on stock metadata is challenging.
In order to get more of a feel how stock metadata can be used, consider any of the following scenarios:
You’re planning to buy shares in a company and you want to have an idea during what 15-minute period of the trading day do shares statistically trade at their lowest points You want to sell your shares and you want to have an idea of the best time of the day to execute your trade You want to know the iterations of the various price range differences for a stock to help you time your trade and get a price that’s advantageous to you You want to buy or sell a large block of shares and you want to see a breakdown of the different times of the day when the volume of shares traded for certain stock is both at its highest and lowest
Answers to these and many other questions can be found by reading the topic on stock metadata reports.
Stock metadata reports are unique. For example, you can easily see the relationships that exist between the Open and Close values of stock prices for the day. You can also see what the values are for the other days, day after day.
These reports can cover a specific date range for the company being featured. And, with the availability of multiple arrays of values for the different group categories within each of the arrays, there’s more than a sufficient amount of data there to complete a thorough analysis. This is easy to see when you look at a report.
Stock metadata can also be used to show market trading activity for shares covering 15-minute blocks of time. Statistically speaking, you can quickly see
Time periods when highest and lowest prices were reached Time periods when highest and lowest trading volumes were reached
Metadata answers numerous questions spanning any period of time (days, months or years) like:
How many times during each of the 15-minute periods during normal trading hours have shares traded at the high of the day? How about at the low of the day? What times of the day recorded the highest volume of trades? How about the lowest volume of trades?
Why is this type of stock metadata important? Statistically speaking, it identifies the potential best time of the day to buy or sell shares. When you learn to use metadata, you come to realize that:
History tends to repeat itself Numbers don’t lie, and The trend is your friend.
These statements are easy to understand. Stock metadata makes it simple to prove them true.
Until now, the general public has not been able to easily locate a viable source for stock metadata and stock market metadata. That is until now with Stock-Market-Keywords.com and its Bulls-with-Bears page changing all that. And the good new is that Bulls-with-Bears page already has numerous links to different sources of standard stock market information and is unique with its offering of stock metadata reports.
See today’s featured company. Not only are links included to some of the best sites for stock market information, you can access up to 5 distinct stock metadata reports shown listed below for each company being featured there today. These reports are published every day of the week, Monday to Friday. Click on any of the report titles below for a complete description of it.
Daily Historical Metadata Detail Daily Historical Metadata Summary 15-minute Metadata Detail 15-minute Metadata Summary 15-minute Hi-Low Counts
Furthermore, while you on the Bulls-with-Bears page, you can also get to previous featured companies and find their corresponding reports for them.
Does Using Stock Metadata Work?
Stock charts present graphical images about a company’s stock performance. There are multiple patterns to learn about. These must be understood and correctly interpreted. When used properly, they can be quite effective for stock trading and investing purposes.
The advantage of stock metadata is that it uses something that you have been using all of your life: numbers. If you know how to do simple addition and subtraction, and you know how to count, then you can use metadata.
Here’s actual proof of stock metadata producing results. Check out the following link to the Yahoo! message board for Morgan Stanley stock. It’s a direct result of the analysis I completed using stock metadata as my source.
After lunch on Friday, October 9, 2009, I submitted my prediction regarding the closing price of the day for Morgan Stanley shares. I developed the number by using specific selection criteria against the Daily Historical Metadata Detail report for MS stock. When you read the entry I posted, you’ll see I stated that if Bulls ruled at the end of the day, the stock would close at 32.18.
Well MS actually closed at 32.09 but a few seconds later, the first transaction in after hours trading was at, are you ready for this, 32.18. Talk about making an accurate prediction. I’ll let you be the judge.
Stan Pokutylowicz
By: Stan Pokutylowicz
About the Author:
Senior Information Technology Specialist and stock market trader/investor
Nov
23
However, it has not been a smooth upward journey. Investors should be aware that ‘pull backs’ in gold can be very violent indeed.
We have had two major retracements in the last four years from fast rallies. Both of these finally ran out of steam but not before wiping out at least 25% of the price.
If the same were to happen this time, Gold would slip towards the $900 mark.
The acceleration of the gold market towards the end of 2009 was remarkably similar to the March/May move of 2006 and Oct/March 2007/2008.
Both of these rallies saw sharp pull backs before regaining the upward momentum. The current target for the more aggressive gold bulls remains $1400. This level is a good deal closer now than when it was first mentioned by certain analysts. Having said this, it must be mentioned that Gold is having problems getting to $1,400.
As it turns out, the problems concerning Dubai presented a massive buying opportunity. Of course, Dubai did give us the lesson that ‘the markets are prone to sharp declines’. Any such decline could shake out many bulls and compound moves to the downside.
That is the risk of getting in at these levels. Whilst the upside could be fantastic, investors must have the stomach for possible shocks to the downside. On a bad day that could be as much as 5% in a couple of hours.
So what to do? One option is to spread bet on gold. With spread betting you can trade in both directions. If the market looks like it will continue up, then you could bet on it to go up. Likewise, if a correction is due you can look at betting on the price of gold to go down.
All forms of financial investment have the potential for incurring losses. For example, trading in stock, property, investment funds and pensions can lead to you losing money. With spread bets your losses can exceed your initial investment.
Nevertheless, spread bets are a simple way of a) gaining access to the gold market and b) being able to trade the market in both directions.
Yes, the gold market may move the wrong way. However, there are measures you can take to reduce your risks. You can add a Stop Loss to your trades which will mean that, if Gold moves against your position, the stop loss will close your bet and stop you from losing any more funds.
On the plus side, the 24-hour trading that some firms like Capital Spreads offer on key markets can provide several opportunities. Whilst the underlying financial instrument may be closed you can still place trades on markets like Gold, Oil, the FTSE 100 and GBP/USD from Sunday night all the way through to Friday evening.
By: Thomas Bainbridge
About the Author:
A leading financial author based in the heart of London’s Canary Wharf. Thomas Bainbridge is a respected commentator on the financial markets including the gold spread betting market.
Nov
19
There are many reasons to start trading online today and I’d like to address three of them. Trading online has been around for a number of years now. Prior to online trading, people would have to phone their broker for each individual trade. This, for the active trader was a time consuming process and probably kept most people out of active trading. With the creation of the web, access to trading grew exponentially.
The reasons you want to start trading online today
Lower Cost – Online trading is less costly than speaking with a broker. Less people involved in any transaction is going to bring down the cost. Typically if you trade by speaking with a broker you are going to pay on average between $20 and up to $50 for the trade. The range of price depends on the broker, number of shares, and type of order. Online trades can be as low as zero (usually with a minimum balance or minimum paid trades) to about $10 for larger orders.
Faster Executions – Speaking to a broker is fine and from my experience they will get your order in fast but not as fast as you can do it yourself. Think of it like this. When you’re speaking to a broker what do you think they are doing? That’s right, they are looking at a screen that is probably a lot like yours and inputting the same order you would have input yourself.
Access to After Hours Trading – What happens to the broker at the end of the day? Many of them go home and while there may be a night shift why take the risk. Having online access means you can get in and out of positions round the clock. So if news comes out you will be able to shift your positions around right then. One caution here though is be sure the online broker offers after trading and don’t just assume it’s there.
Brokers Like Online Traders
Another reason that commissions are lower for trading online is there is less risk to the broker. You see if you all a broker and input an order verbally there is that chance that he is going to make a mistake. If that happens and the market moves they have to pay for any losses you may suffer but cannot keep any gains. This is the biggest thing brokers fear because one mistake can wipe out an entire years worth of commissions. Online trading reduces this risk substantially.
It’s a no brainer
So as you can see moving to start trading online today make a lot of sense. It’s a win for you as the trader with lower costs, quicker executions, and after hour’s access. So get out those web browsers and start looking into how you can start trading online today.
By: Rye Gongora
About the Author:
Do you want to start trading online? If so Start Trading Online Today by seeing how easily I started.
Nov
12
Tips in Utilizing Forex Trading Hours
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Taking advantage of the best forex trading hours is crucial so you can effectively position yourself in the market. There are different time zone tips to consider when trading in forex such as:
1. EST – This pertains to Eastern Standard Time which is the time zone used for the United States and Canada. You should know that the US dollar is one of the most major currencies being used in forex and thus it is important that you observe the 24-hour trading period based from the EST. Usually, the trading starts by 5pm EST on Sunday until 4PM Friday.
2. Beginning and End Countries – Forex trading usually kicks off from New Zealand and then Australia follows shortly after. Then the Middle East will open up next until Europe eventually does. The Americans are usually the last ones to open their trade.
3. Bulk of Trading – It is also important to know where most forex trading comes so you can plot your forex trading hours more conveniently. The US and the United Kingdom gets around 50% or more of the total forex market share. However, those specific areas considered to be the major markets in the forex industry are New York, London, and Tokyo.
4. Bulk of Trading Time – Aside from identifying the key places to trade, it is also important to take note of the crucial periods when most buyers and sellers are up online. In New York, most of the trading between various buyers and sellers happen in the morning which is also the same thing with most European countries.
5. Be prepared for overlaps – As you begin to trade in the international forex market, you will notice that forex trading hours may overlap. Soon as a specific country opens, others may close and then before you knew it your trades might have been closed. Be prepared to face the fact that the business hours are erratic and at times may overlap.
6. Prepare a forex chart – To help you plot out your business much more efficiently and conveniently for you, it would be best to prepare a forex chart where crucial time zones are indicated specifically. This will help you keep up with the fast-paced environment that the forex business is.
Tapping into the international scene can be nerve wracking at first. If you want, you can also get the help of a forex broker to help you scan the market more conveniently. This way you will be able to learn about international standards and tricks at your own pace.
By: Cedric Welsch
About the Author:
Cedric Welsch is an Expert Article Marketer and SEO Article Writer.
To develop your own forex trading strategy, you should consistently expose yourself with the latest forex news alerts currency trading updates.
Be on top of the most effective forex programs available through: forex trading review brokers website.
Nov
8
Modern Day Forex Trading
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“The Euro continues to hold, in the main, to its gains over the last few months but the upside is beginning to look more difficult. Longer term investors, who have been piling into the Euro as, it almost seems, a quasi replacement for the Chinese Yuan, are pausing for breathe at the moment. It might be interesting to see what will happen if European growth starts to look less optimistic.
“The currency is overvalued by most measures and, while this state of affairs often continues for long periods where currencies are concerned, the swing backs can be very exciting indeed.
That is all well and good but if you want to trade the currency markets what is the best way to do it? Many private investors are looking for fast and simple access to global markets and many are turning to spread betting.
Before we proceed though, it should be pointed out that, as with all forms of investment, there is a downside and you can lose more than your initial stake.
Having said that, spread betting solves a lot of problems when it comes to tax, simplicity, speed and range of options.
An interesting aspect for me is the number of markets that you can trade. Spread betting companies tend to offer thousands of markets. These include the forex markets like US Dollar / Euro, Pound / Euro, Swiss Franc / Yen etc. However, from the same account, you can generally spread trade US and UK shares as well as oil and gold.
There is no capital gains tax and no income tax on spread bets*. You are simply speculating on the future value of a market.
I like the flexibility and ease of opening and closing spread bets. If a particular forex market moves against my position then I can close a trade in order to limit my losses.
Likewise, I like the fact that, if I am ahead of a particular market, I am also able to close a spread bet early in order to lock in the profit.
And then there is 24 hour trading. Spread betting companies like Financial Spreads will open their trading desk late on Sunday evening and let you trade, online or over the phone, all the way through to Friday night.
Whilst spread betting offers a wide range of benefits, it is also important to remember the potential drawbacks.
Spread bets do carry a high level of risk to your capital. You should only speculate with funds you can afford to lose. Before trading, ensure that spread betting matches your investment objectives and familiarise yourself with the risks involved. If necessary, seek independent advice.
* Based on current UK Tax law, this may change or differ depending on your personal circumstances.
By: Thomas Bainbridge
About the Author:
A leading financial author based in the heart of London’s Canary Wharf. Thomas Bainbridge is a respected commentator on the financial markets including the spread betting and share trading markets.
Oct
31
Financial Trading for 2010
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It has become even more desirable to diversify across a wide variety of markets, become more tax efficient and plan ahead for the future.
An increasingly common form of trading that people are turning to is spread trading or spread betting. The speed at which you can trade, the number of trading opportunities and easy access to the markets make it worth investigating further.
There are downsides to all forms of investing and with spread trading you need to be careful because you can lose more than your initial investment.
So why do people spread bet? There are a good number of benefits.
There is a large variety of markets on offer. You can speculate on thousands of markets from the popular Dow Jones Index and Euro/Dollar exchange rate, to the not so popular Wheat, Dollar/Kroner and Interest Rate markets.
Another benefit is that you can close a losing trade and limit your losses but also that you can close a winning trade in order to bank a profit. Being able to part close a trade can also offer opportunities, i.e. closing part of your spread bet but keeping part of it open. Again this is an important risk management feature that can help restrict losses and lock in profits.
Spread betting can be a very convenient trading format. Most trades are made online but you can also trade over the phone and even through mobile phone applications. Certain firms even let you trade markets like the FTSE spreads and Pound/Yen throughout the night.
Where should you trade? The Financial Services Authority regulates the spread betting firms based in the UK. This helps to ensure a certain level of consumer protection. Some offer trades on thousands of global markets.
Also, a number of firms offer the usual benefits of letting you trade outside market hours. Companies, like Financial Spreads, will also let you trade markets such as the FTSE 100, DAX 30, Crude Oil and Gold from Sunday evening all the way through to Friday evening. Genuine 24 hour trading.
Whilst there are many positive aspects to spread trading, you must also remember the downsides.
Spread betting carries a high level of risk. You should only speculate with funds you can afford to lose. Before trading, please ensure that spread betting matches your investment requirements, familiarise yourself with the risks involved and, if necessary, seek independent advice.
Are there any other considerations to take into account? I have seen many trading tips over the years, some more useful than others. Here are a handful of the more common ideas.
Before making any trades, it is useful to have a trading plan. Consider how much capital you are willing to risk, the markets you are going to trade and the return you are aiming for. This can help you make more informed trading decisions.
Try to trade the markets and sectors that you know. If you do not know anything about the foreign exchanges markets it’s best to avoid them. If you are most familiar with the commodities markets then that is a good place to start your research.
Finally, it is worth having a look at a spread trading practice account. These are free accounts with virtual funds. If you are less familiar with this form of trading then a little practice should help you understand the positive and negatives as well as the various types of bet you can place.
By: Daniel Jones
About the Author:
Daniel Jones is a seasoned spread trading professional and commentator on some of the leading UK spread betting sites like Clean Financial
Oct
29
For someone to succeed in the stock market, there are some facts the online trader must know. A lot of people think that trading at the stock market is a gambling and this has caused many to loose large sums of money, because the are coming to the market with that mentality of a gambler. In order to have a proper understanding of the market before investing your real money, one can use an online game called the stock market simulator, which duplicates every aspect of the transactions that took place at the real market. This simulator can be used to learn some expert trading strategies, give you some important information that are vital and also put you through the different trading hours. This is simply a mock of the real happenings at the real stock market, but it is delayed till the market closes to avoid the abuse of it. Once you can understand what is happening here, playing in the real market will not be difficult. Any profit or loss you make with this system is simply imaginary since you are not staking your real cash.
There are two types of simulators that are common in the market. However, the most common ones are called the financial stock market game simulator and the fantasy game simulator. The financial stock market simulator gives you all the information that you can get in the real stock market. Any web site that offers the services of this simulator puts some securities in check against the activities of some unscrupulous people who might try to abuse the use of this as a non trading tool and use it to gain undue advantage in the real market. They make sure that the information here is not used for the real trading during, before or after trading.
For the fantasy game simulator, you are thought to trade in an easy to understand way. They try to make you feel like you are actually playing a game while in actual fact, you are learning. This type of simulator presents only imaginary stocks which will never be traded on the real stock market.
Any body without any background of stock trading that practices with either of this games will catch up easily. Some of the items you can see at the fantasy game simulator are questionnaires on best seller books, and the reason for this is because these are things that people are familiar with which makes your chances of catching up with the trend easier. This system works because people learn faster and easier when you are teaching them with what they are familiar with, compared to when they are learning with what is alien to them. So, with the fantasy game simulator, you are having fun and learning a serious business together and this reduces the stress which goes with any heavy duty. Learning is a duty.
Getting to know how to buy and sell shares and understanding the stock market hours, are critical issues to understand before investing in the stock market , and learning these is not a bread and butter affair. However, with the help of the stock market simulator, learning all these strategies can really be fun, thereby helping you to invest with confidence.
By: Eze ThankGod ik
About the Author:
ThankGod Eze is an investment analyst with a passion for investing in stocks, real estates and other financial instruments. My investment goal is discover hidden but potential investment windows that guarantees maximum returns on invested funds. This site http://investmentpicks08.blogspot.com is a site that gives out free information on profitable investments.
Oct
20
Is your Stock, Futures or Forex Trading Doing Better Than My Laundromat?
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So I looked at it for a while and came up with the following solution. I asked her if she was willing to be my employee, and to basically keep doing what she was doing. She said yes and after negotiating her wage, it turned out that my investment would net me 16% per annum, however my involvement was almost nil. All I had to do was pick up the cash from her each week, and organize maintenance.
To me I had found a good investment. 16% per annum for very little effort is good, but I had to take the situation and tweak it to suit me. If she had said no to my request, and I couldn’t find someone else to do the work, then it would not have been a good investment for me at all, simply because I didn’t have the time, plus I wouldn’t have liked the work involved, it just isn’t me.
This is how you must look at your trading business. Does it suit you? Are you expecting to make large returns per year with little attention? Too many people are getting sucked into promises of big fortunes before looking to themselves and their own needs and current resources to fill those needs.
When I was a student of Peter Bain, I remember him getting a request from someone who had just bought his course. His request was almost a demand, and it was ‘Peter, I need to make around $5,000 a month; I have $10,000 capital and need to be making it in two weeks. Can you help me do that?’ I remember looking through Peter’s sales page after seeing that request, and nowhere does it say that you can generate 50% per month using Peter’s system, nor does it say, in two weeks you’ll be a successful trader. It disturbed me that this was being asked, not too mention how Peter felt.
Peter uses a quote from Albert Einstein that says if you spend 15 minutes a day on a particular topic, in a year’s time you’ll be an expert. Well Peter suggests an hour a day but I’d like to expand on this.
An hour a day does not include your trading time, or the time taken to scan possible trades, or even to analyze the possible trades that have triggered. It is valuable time that you must use to study. Study the course or the system you are looking to trade by way of back testing, understanding the terminology and reviews of your past trades. It also includes time to study the masters of trading. If you want to be a successful trader then there is nothing better than studying the very people who achieve these successes. What makes them tick? I asked Peter as many questions about his day-to-day activities outside of trading as I did on trading itself. Let’s get back to the Laundromat.
You need to be clear on what you can put in to your trading outside of trading itself. Like I said, it’s about study. I could have chosen to do the laundry work my self and made a better return, but it was not what I wanted because I wanted to spend that 15 hours a week doing what I was already doing. Ask your self what you want to be making a year from your trading and then what hours you are prepared to put in a week to achieve this? The higher the return you are seeking the more time you’ll need to put in, it is as simple as that.
By: Dean T Whittingham
About the Author:
Dean Whittingham created A Traders Universe - Trading System Development in 2005 as a resource site for traders of all levels, with eduction, courses, brokers, tips, free videos, newsletters, trading systems, simulations and a free 7 step process for building a profitable stock, futures or forex trading system.
Oct
16
Forex Trading Opportunities
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Looking the forex markets, the US Dollar has been out of favour for a good deal of 2009. More recently, ratings agency Fitch announced that the UK’s sovereign credit rating is at risk when compared to other top-rates countries. That ‘opinion’ helped push down Sterling.
Having said that, Sterling has remained fairly resilient, the general consensus seems to be that, out of the MPC, ECB and Federal Reserve, the UK will be the first to move interest rates higher next year. An increase in interest rates will naturally support Sterling.
But where and how to take advantage of these market movements? A spread bet is one option that offer a solution which covers tax free* trading and quick access to global markets.
There are a number of useful advantages such as the wide variety of markets available. Investors are not limited to stocks and shares. You can still spread trade stocks but you can also take a position on stock market index values, commodity prices and, of course, the forex markets.
Also unlike traditional share trading, you can sell a market. Spread betting lets you trade in both directions. You do not have to bet on markets to go up. If you feel that a stock market index like the FTSE 100 or Dow Jones will go down you can speculate on it to go down. If you think that the price of a particular share will go up, you can spread bet on it to go up.
I also like that there are no commissions or broker’s fees.
Naturally, you can trade online or over the phone. However, the 24-hour trading that some companies offer provides interesting opportunities. So the underlying markets may be closed but you can still trade markets like the FTSE 100 and EUR/USD from Sunday night all the way through to Friday.
All forms of financial investment have the potential for incurring losses. For example, trading in stock, property, investment funds and pensions can lead to you losing money. With spread bets your losses can exceed your initial investment.
So if you are looking at forex spreads then note that spread bets do carry a high level of risk to your capital. You should only speculate with funds you can afford to lose. Before trading, ensure that spread betting matches your investment objectives and familiarise yourself with the risks involved. If necessary, seek independent advice.
* Based on current UK Tax law. If you pay tax in a jurisdiction other than the UK then this may be different.
By: Daniel Jones
About the Author:
The writer is a seasoned financial professional and commentator for some of the leading spread betting firms.
Oct
13
How can I make money on a trade if a company announces its earnings after trading hours have ended?
Filed Under Investing | 5 Comments
I know that when a company has higher than expected earnings, it’s called a “surprise”. But they usually reveal this “surprise” when trading is over. At this point, everyone logs in to their accounts and floods the aftermarket with their orders, so they saturate the stock with their demand. When the market opens at 9:30 AM the next day, the stock opens much higher and there is nothing I can do.
There is no room for profit!
Or is there? There is some reason this is still being done.
How can I profit if a company announces their earnings in the middle of the night? And what news source would you recommend for earnings news so I can find out before anyone else?
Thank you!
Relaxation Therapy
Oct
12
Begin your online stock trading education by surfing for an online brokerage firm that offers you easy start-up account registration. There are many sites that offer free registration, among other incentives such as online stock market simulator, free stock pick and more.
Many online stock trading sites also teach beginners how to use the tools of online stock trading. Along the same vein, these sites also offer integrated services by which you can keep track of your stock investments, as well as stock market information.
Online firms also provide support for beginners and non-professional online stock traders as they learn more about the trading, as well as in developing their own trading strategies.
Information in terms of real-time stock quotes, free stock market newsletters and free stock pick options are also provided as added incentives for beginners to keep them informed of the current trends and shifts in the stock market. Other financial and market online news sites may also offer information about the stock market, and specifics stocks and options you may be looking to buy, free stock pick and more.
Go for sites that offer the best ways get firsthand information from the market. Other than online brokerage sites that offer information services on stock trading, there are sites that specifically watch the stock market and produce information for stock traders, firms and non-professionals like you. These sites offer stock pick developments, free stock pick information and reports, as well as streaming of stock quote data and after hours stock quote reports, and other trading information.
However, signing up with any online stock trading site can have its disadvantages. Trading stocks online is not as instantaneous as it is on the floor. There is a lag time (that can be up to twenty-four hours!) that occurs from the moment you make a buy offer, till that offer is closed. So, if the stock you’re interested moves at a faster pace, you’d be at a loss as to developing your stock options. This is because the internet can’t duplicate is the market hours, no matter how fast, or how advanced your online stock trading firm’s electronic communication network is.
It is still best to keep yourself up-to-date with after hours stock quote reports, direct investment information and stock analysis data, and free stock pick information. Information is an effective tool to learn in online stock trading, so be sure to keep a pulse on what’s happening so you can make adjustments to you online stock trading.
By: Zachary Riff
About the Author:
Find out how important information is as a stock market investing guide. Find your free stock pick information from trusted sources!
Oct
10
Want a Stock Market Investing and Trading Tool? Try Stock Market Metadata
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Simply stated, metadata is data about data. And when properly understood and interpreted, stock market metadata, also simply referred to as stock metadata, can help you picture what’s happening with a company’s stock. So if there’s a trading trend developing, one of the tools you can use to spot a trend as it moves along would be stock market metadata.
Working with Stock Metadata?
When you go online, you find vast varieties of stock charts, current and historical stock market results, and an increasing number of online news sources. But finding anything on stock metadata is challenging. In order to get more of a feel how this type of information can be used, consider any of the following scenarios:
You are planning to buy shares in a company and you want to have an idea during what 15-minute period of the trading day do shares statistically trade at their lowest points You want to sell your shares and you want to have an idea of the best time of the day to execute your trade You want to know the iterations of the various price range differences for a stock to help you time your trade and get a price that’s advantageous to you You want to buy or sell a large block of shares and you want to see a breakdown of the different times of the day when the volume of shares traded for certain stock is both at its highest and lowest
Answers to these and many other questions can be found by going online and searching for it. I use Google and look either for the terms stock market metadata or stock metadata which returns links to all of the pertinent information.
Stock metadata reports are unique. For example, you can easily see the relationships that exist between the Open and Close values of stock prices for the day. You can also see what the values are for the other days, day after day.
These reports can cover a specific date range for the company being featured. And, with the availability of multiple arrays of values for the different group categories within each of the arrays, there’s more than a sufficient amount of data there to complete a thorough analysis. This is easy to see when you look at a report.
Used as an analysis tool, stock metadata can also be used to show market trading activity for shares covering 15-minute blocks of time. Statistically speaking, you can quickly see
Time periods when highest and lowest prices were reached Time periods when highest and lowest trading volumes were reached
It also provides clear answers to questions spanning any period of time (days, months or years) like:
How many times during each of the 15-minute periods during normal trading hours have shares traded at the high of the day? How about at the low of the day? What times of the day recorded the highest volume of trades? How about the lowest volume of trades?
Why is this type of information important? Statistically speaking, it identifies the potential best time of the day to buy or sell shares. When you learn to use stock market metadata, you come to realize that:
History tends to repeat itself Numbers don’t lie, and The trend is your friend.
Previously, the general public has not been able to easily locate a viable source of stock metadata and stock market metadata. Now that has been changing. When you do a search for either of those specific terms, you’re sure to find the information presented from the source sites or through links to articles written about this topic.
Look for sites that also present features on companies being traded on the major North American stock exchanges. This includes numerous links to key sources of standard stock market information as well as including a selection of stock market metadata reports.
When you choose to examine a featured company, make sure links included are to some of the best available online sites of key stock market information. Do they also have stock metadata reports for each company being feature there by them?
Look for reports that are published every day of the week, Monday to Friday. Typically, the standard report titles as listed below, also have corresponding links to site pages that explain and describe the content of each of the reports.
Daily Historical Metadata Detail Daily Historical Metadata Summary 15-minute Metadata Detail 15-minute Metadata Summary 15-minute Hi-Low Counts
Does Using Stock Metadata Work?
Stock charts present graphical images about a company’s stock performance. There are multiple patterns to learn about. These must be understood and correctly interpreted. This can get quite complicated. But when used properly, they can be quite effective for stock trading and investing purposes.
The advantage of stock metadata is that it uses something that you have been using all of your life: numbers. If you know how to do simple addition and subtraction, and you know how to count, then you can use and understand metadata.
Some people even boast of using stock metadata to predict price results. Check out the following link to the Yahoo! message board for Morgan Stanley stock. It was submitted after lunch on Friday, October 9, 2009, to this Yahoo! message board in regards to the closing price of the day of Morgan Stanley shares.
It was developed using specific selection criteria against the Daily Historical Metadata Detail report for MS shares from stock metadata reports available online for people to use. As you read the entry, you’ll see that if Bulls ruled at the end of the day, the prediction was the stock would close at 32.18. Well MS actually ended the day at 32.09 but a few seconds later after closing, the first transaction in after-hours trading was at, are you ready for this, 32.18. Talk about making a good prediction. I’ll let you be the judge.
Stan Pokutylowicz
By: Stan Pokutylowicz
About the Author:
Stan Pokutylowicz is a Senior Information Technology Specialist and stock market trader/investor
http://www.stock-market-keywords.com/
http://www.stock-market-keywords.com/bulls-with-bears.html
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_M/threadview?m=te&bn=11978&tid=80865&mid=80865&tof=8&frt=1#80865
Stock-Market-Keywords was set up with the purpose of presenting some frequently used keywords and keyword terms with corresponding links used by people online to learn about the stock market. The topic of Stock Market Metadata (also referred to as Stock Metadata) was added shortly after the first major construction phase of the site had been completed.
Oct
1
Short Selling Stocks > How To Short Sell Stocks ? Shorting Trading Strategies
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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.
By: stock trade tips
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
Sep
12
What is the advantage to trading after or before the market closes? I’m very confused about what happens then. Can you please explain what is going on?
Buying a Dog
Sep
9
Is it a coincidence that the price of a stock ofter falls back during after hours trading?
Filed Under Investing | 2 Comments
If it gains $0.65 during the day, it often loses $0.65 in after-hours trading. why does that happen so often?
If it gains $0.65 during the day, it often loses $0.65 during after-hours trading. At first, I thought it was just the free market doing its thing. But it happens so often, that I’m beginning to doubt that that is the cause.
What’s going on??
It very often loses exactly as much after hours as it gained during the day, right down to the penny. Why is that?
Aug
20
What does it mean when the market opens and closes, and then there is also “After Hours Trading”?
Filed Under Investing | 4 Comments
Can someone please explain to me the difference between after hour trading and buying and selling stock during the market hours?
Thanks for the help!
Designer Handbags
Aug
14
Do stop loss orders carry into after hours and pre market trading?
Filed Under Investing | 4 Comments
Lets say I bought a call option for $2.00.
So I paid $200 for that one call option.
If i put a stop-loss oder in for $1.50 that is good until cancelled (GTC 60 days) will this oder carry into the pre market trading hours and after market trading hours?
Okay so what about stocks? If options aren’t traded after hours what happens if you have a stop-loss on stock?
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