Online Trading

Investing in stock market is no more a tedious process! Now anyone can invest with the online stock trading option available today. Now everyone starting from guys to girls, children to oldies can be a part of this online trading from anywhere by just the help of computer. So no more hanging around the brokerage houses!

Online trading is definitely a striking mode of mechanizing the trading process and that also without any intrusion of a third person! But it should be remembered that online stock option trading is a form of business. Capital is required in the initial stage from the person who is commanding the business. Along with capital, a business also requires a well-formulated plan with an appetite and determination to digest heavy financial losses that might incur in the initial stage.

But, a complete dedication to the work helps the business to prosper very rapidly. Businessman should be acquired with proper academic qualification having a complete idea of the field in which he is investing. The urge to enhance their academic knowledge allow traders to have comprehensive research on the trading of stocks involved in their company.

There are factors that can allow the online stock option trading to have an upside. Traders can control the risks involved in stock trading. They can do that by having a command over a stock-block. Traders should have the thought process and the fore vision to make the best possible decision on their options and stock. Dealing in stocks should be done at adequate time where they can grab maximum gains from the market and simultaneously prevent any kind of loss that the stock might incur in the future. Options carry an expiry date and it should be dealt prior to the expiry date.

Option trading and online stock trading option are similar in nature when we consider the rules followed by both of them. Traders, when they are “in the money”, are with an option to either redeem at stated value or purchase the stock if it expire. However, if the traders are “out of money” with the stock at the expiry of the options, then they loose their investments. Online stock trading option is a platform where there is either a straight-out profit or a loss.

Traders benefiting from online stock option trading might have educational guesses as their weapon. Knowing the basics of “Puts and Call” option allow these traders to be prepared for a “High Stakes” contest. Experienced online stock traders opt for trading use straddles and strike prices as their major weapons. They vary their strategy according to the situation of the stock and the overall financial market. Normal stock traders follow the market according to its rise and fall.

However, option traders need more specific research related to the particular movement, whether rise or fall. A prime benefit of an online stock option trading is that traders to minimize risks or losses can use it. Stock options are not related to the rise and fall of market. If properly planned, stock options are always a winner. Online stock option trading is a platform where option and stock trading is combined with a strategy of having maximum profits or protections from the fluctuation in the market. With the advent of Internet facilities, online stock option trading has been very popular. It gives privacy in the making decision on investments. However, risk factor is always there with online stock option trading. The decision to select an online stock option company should be preceded by a thorough research to have the maximum from the market.

Stock Market Investing

It’s certainly tough to answers questions about stock market than the usual Hollywood, Bollywood stuff. Stock market carries all gestures- happy, sad, creepy, tensed and what not? To cut short it is a risk cell, where thousands of people invests to fetch better returns but some succeed and some console themselves to try again.

Going in literal terms, a stock market is a place for the trading of derivatives and company stocks, listed on stock exchange. The stock comprises of shares, commodities and so. As earlier said, ‘a risk cell’, this market is full of uncertainties and risks. Risks, to loose the hard earned money. Every investor invests in stock market with a perspective and motive to earn positive better results. The bulls and bears are the situations with which you may make some or loose some. The uprising in stocks is termed as bulls’ situation and vice versa.

As such, stock market investing is not a child’s play. The investing in stocks may be carried as a sideline business by an investor but the amount of knowledge needed to invest cannot be side lined. It demands a fearless, fiery and extensive knowledge to understand moods of the stocks. An intuitive person may succeed once but that does work for all time. All counts is the experience in this field along with the almighty luck. Yes, luck is also an important factor that moves on with an investor.

The stock market always has shocks and news in stock. No one can be sure about what’s next? The pressure of bulls and bears along with the fear of loosing money and the predications and tips by the companies always adds spice to the happening world of stock market. One has to be familiar with the dictionary of stock’s world. What I mean is- the stock market has its own words to represent the situations and products. Bulls and bears being the example, one has to work upon the dictionary used in this market. Intraday, future and options (f and o’s) are mere examples of these.

Being aware of the fact that it is a risky affair to invest, thousands of people invest daily in the stock market. To provide assistance there are brokers available who try to get the best possible deal. Brokers are the people who work on percentage basis to fetch the best deal. Very often, the commission is calculated on the money invested. This commission, in turn, is known as brokerage. This amount has to be paid by each investor who does not posses his own pass to trade directly in stock exchange.

Well, only one thing is certain and that is change. Changes are always certain, so does the experienced stock world.. It has moved on to cyber space from the clattered, clumsy stock markets, which looks nonetheless fish markets. The evolution of Internet is the reason for the revolution in stock markets as well as other trading. It got the easy access feature along with the comfort of operating stocks from one’s office or home. The speedy technology acted as a catalyst to break the norms of stock market. It is no more an alien world for people. Rather, it got unearthed and the mysteriousness of this trading place just vanished. Now, people are comfortable trading online and the investors and their investments have increased three-fold. The bulls and bears are no more only confined to the creams rather it has skimmed to the commons.

Moreover, the technological support not only acted as middlemen rather it worked as a magnet which brought thousand of new faces to the stock market. The advances of online brokerages, online trading and online investing further jacked the boom in the stock market investment.

Successful Stock Market Investing

Before entering into the markets at any level it is crucial to have a working knowledge of the dynamics of the stock markets and the main influencing factors.

These will be briefly touched upon. The main influencing factors are likely to be economic, such as inflation, interest rates and GDP. A variety of other factors are likely to have an effect, relating to possible geo-political factors (i.e., wars, civil unrest), also political uncertainty generally has a profound effect on the markets.

From this we can see that there are a wide variety of variables that are going to affect the markets as a whole which will ultimately determine the supply and demand of direct equities.

There are a general set of principles that you should adhere too constantly in order to reap the rewards that the stock markets have to offer, below I will outline some of these universally accepted principles for experienced private as well as institutional investors.

•Set a concrete nominal value you can realistically afford to invest. For example if you go out to the bookies to bet on the horses you would generally have a set amount to spend and once you reach that level cut your losses or cash in. What I am trying to convey is discipline and routine which is essential for consistent returns.

•Do not treat the stock market like the lottery. It is a skill that needs to be mastered and perfected to “trade effectively”. Be in it for the long term and like anything in life essentially the more skills you build the more effective you will be.

•Eliminate as much risk as possible by doing your homework on a stock you are going to invest in. Information is freely available more so than ever especially on the internet. You will be able to locate company accounts and assess the general health of a company through a variety of sources.

•Diversity is truly the key in the markets. All the big guys know this in the markets usually “hedging” their large position’s with an inverse position or more stable position. Do not put all of your egg’s in one basket as they say equally spread capital over a number of positions.

•If you loose money on one position it’s not the end of the world all of the massive guy’s the Karl Icon’s and Warren Buffet’s would have if not still loose money in the markets. Try and look at every event as a learning experience on which to add to your arsenal of skills.

Internet Stock Trading

Stock Trading is the leading and most prevalent mode of making easy money. All over the world, people are fascinated by stock trading system. Everybody is interested in making income through purchasing and selling stock. However, it is always very dicey and und unsafe mode of investment, it is still very attractive and appealing. You can by no means be tired of anything. Stock trading is itself an addiction and you can only be successful if you have the fervor for the same.

Advancement in Stock trading
With the advancement in technology and increase in the interest of number of people in Stock trading, internet stock trading has fabricated a sturdy podium in the market. Internet stock trading is a very remarkable and swift ways to trade stocks. It is so fast and effective that any transaction does not take more than few minutes and the effective is so instantaneous.

Online stock trading has gained so much popularity that even professional online brokers and dedicated online investment websites are easily available rendering best of their services keeping updated through fast trading market news.

Before investing, any amount in online stock market-trading people must be cautious and pay their attention to everything. Foremost things you have to learn and know that market changes with a single click, so be always prepared to face the consequences. Then you have to spend a better part of your day in making research and being specific with the information about your future investments and online trading. However many online stock investing website have incorporated many tools to assist and aid the customers with it.

Can you do it? Obviously, anybody with zeal towards stock trades or stock investment can do it. There is no specific educational qualification necessary as its eligibility. Just all you need to do is gather maximum information possible about online stock trading.

Things you must do You must always plan your finance and strategies before investing in the market that require high-quality information regarding market trends. There are many small and big firms acting as enormous advisors to their client on daily online stock trading. Frequently these companies are great help to you as they try to ascertain contented investment as per your requirement. Then to conclude, all orders and any cancellations in the order should be well communicated and always preferably kept in written form.

Although at times you may face problem in issue of transaction due to server problem but still the risk involved and all the action keeps up the adrenal flow and always keeps the investor on it toes. The profits made are at time outstanding and acts as lure to customer. However, risk always involves in graving fatalities as well. In the end, everything depends on the investor and the final call is from him. It is an expert’s advice that one must never use his retirement or savings money in online stock trading.

Stock Investment

Stock investment: want to make some quick money?

Stock investment is the quickest way to make money! This is the general notion of everyone. Have you ever wondered on what strategy the stock market works? Well, if you are a beginner, then this is question you will ask your financial advisors. In order to get the answer to the question, knowing what stock market is, is important. Then you need to how to make some quick money from stock market investing.

Well, making some quick money from stock market investments is not an apt option for someone wants to invest on a short term basis. But it is definitely one of the best options if someone is planning for a long term investments in stock trading. But please keep it mind, risk is not averted in any of the investments: Either short term or long term as nothing is guaranteed in stock trading system. The market may on its peak one moment and the very next may be crashing down! In long term investments, there are less chances of huge loss. Because loss incurred one moment, it can be recovered after the market has again started gaining pace.

However, this is not the case with short-term investments. The market moves up and down like waves of a sea and hence chances of loss are much more. And with the advent of internet technology, investment in stock trading has become much easier. Internet stock trading has gained a new dimension in stock market investing.

People can now be a part of this huge market right from their home or office or even while they are on tour. All they need is just the internet connection! Before the advent of internet, the traditional way of stock trading was time taking, involved more risk and was even burden some. But online stock trading system lets you buy and sell stocks instantaneously.

Although, online day trading has popularized with the time but it doesn’t detach the risk factor involved. This risk factor can be minimized to a certain extent while selecting an online stock company. Online stock trading company is one of the easiest and the best way to help you start buying and selling or in better words trading in the stock market. Internet is an ocean of information available world wide, where you can find anything and everything. Hence, a thorough research needs to be preceded before the selection of an online stock trading company.

While dealing with an online stock trading company, an important role is played by the online stock brokers in the people’s life who wants to invest in stock trading and do not have large capital or do not know where to start from. They are very different from the usual brokers in the markets as they help you with investments only.

Hence, investing in stock trade is definitely a good option to make some money but proper care should be taken as there is a large amount of risk also involved. This can be minimized with the help of proper guidance from your financial guide, the online stock trading company you opt for and along with your stock investment plans.

An Introduction To Forex Money Management

Forex trading money management is one of the most imperative things you must learn before you really start up with live trades. The Forex money management principles discussed here would further teach you how to keep yourself away from the expensive mistakes many fresh forex traders make, frequently to the degree that they lose their full investment on the first few trades. Psychology is actually the most key factor to money management when it comes to forex trading. You have to be clever to separate yourself from any touching affection you might have got to your money. This is not extremely simple to do, but it works and it could be really done.

First and foremost, you have to mull over leverage and risk. It is sensible that you by no means risk more than two percent of your account stability on any forex trade. However, some go beyond and permit for as much as ten percent, but in no way more than that. This gives you the capability to endure market fluctuations in forex, and if the trade goes poor, you yet have money to try again. You must never function under the hypothesis, which you would profit from each trade. You must as well plan for losses. Therefore, most forex traders would tell you that the most excellent thing to do is to keep your gains big and your losses less. Develop your forex trading strategy around this idea.

Keep a proper track of your gains and losses. Keeping correct and detailed records of your forex account commotion would permit you to see whether or not the forex trading strategy is working, or if it requires being rebuilt. Never go blindly into trading without a means to keep follow of results. You would surely lose all of your money and never know why it happened.

Finally, it is extremely advisable that you first carry out a strategy on a forex demo account. Nearly all forex brokers provide a virtual demo account upon which you make trades in real-time, but with fantasy money, so nothing is risked. This is the most excellent way to test a strategy before you put your real money on the line.

The Big Business Of Forex Online Trading

The daily transactions on the Forex, or foreign exchange markets, are so vast that they dwarf the total amount of money invested in stock markets across the globe. With over two trillion dollars in daily volume, the Forex is the most significant of the global monetary marketplaces

Since the introduction of the Euro to the world currency mix, the Forex has seen exponential growth. Add the rise of the Internet, and what had been the exclusive domain of the world’s great banks, financial institutions and super wealthy with at least a million dollars to invest became available to small investors who had PCs, Internet connections, and a few thousands of dollars in risk capital.

There is a very wide mix of entities, from individual brokers to corporations to governments, engaged in currency dealing through Forex online trading. And the currency market, because it does not operate form a single physical exchange like the NYSE, is ideal for Forex online trading. There are, of course, cites around the globe with large numbers of Forex brokers, and the advent of Forex online trading has connected all of them electronically. Forex online trading is now conducted around the clock every day of the year.

Forex Pre-Internet
In pre-Internet days, Forex business was conducted over the telephone and the only way in which individual investors could participate was to go to their bank and have a banker place their currency trade, or phone the bank to request that it be placed. For most of its history, the currency market saw very little individual involvement.

But Forex online trading has changed all that. Hundreds of thousands, if not millions, of individual investors have taken advantage of their around-the-clock online access and, just like larger institutions, are now engaging in Forex online trading twenty-four hours a day. Geography no longer matters, because business hours are always ongoing somewhere in the world.

Forex Trading Today
Forex traders can now have a hands-on role in their investments by continually observing market trends so that they can close their Forex online trading positions when the market turns against them. Forex online trading has also benefited from improvements in encryption technology, making investors feel more secure about having money online.

Forex online trading, in short, has become big business. And every big business will eventually spawn cottage business; Forex online trading is not different. There are now hundreds of websites offering advice and software designed to improve an investor’s chance of success in the Forex online trading game.

But you should make sure, before you decide to give your money to any Forex online trading site, that its software is compatible with your PC’s operating system. And take the time to comparison shop for commission fees. You’d be surprised to know how widely they can vary among brokers. And above all else, find out how the broker intends to let withdraw your Forex online trading earnings.

How To Make Money In Forex

As you might already know, forex is an acronym for foreign exchange -- is the international currency market where money is being sold and bought. Forex certainly is a new and exciting way to make money in the huge global currency market.

Making money in forex is very similar to stocks, options, or futures. You will be provided with a list of currency pairs each is coming along with graphs which you can select and trade. You can sell (or short) if you expect the graph to go down and you can buy (long) if you expect the graph to go up.

How Can I Make Money in Forex Trading?

When you buy a currency in the forex market, you are actually doing two trades. You are selling one currency and buying the other. You have known what currency you are betting for/against, as opposed to the stock market where you only need to know one stock.

Unlike stock trading, most online forex firms don't charge commission. They make money by giving you a worse spread then they get and by charging you interest on margin. This spread is usually two or three pips (explained below).

Margins are huge in currency trading; you can easily be accepted for 200 to margin on-line. Some forex firms will give you up to 400:1 margin. To be honest, there is very little regulation in this industry, which means you can move $2,000,000 worth of currency with only $10,000 in your account. You can even open an account with as little as $300.

Profits in forex are measured in "pips" or "points." A pip is 1/1000 of dollar. For example if you buy the dollar (USD) against the euro (EUR), and it went in your direction from $1.300 to $1.299, you have made a 1 pip profit. On a $10k order at full margin (200:1), this is equivalent to $50 in profit.

How Much I Can Earn?

Virtually, the limit is the sky. As much as how long you trade and keep earning. Trading will be within 24 hours 5 days a week. How fast you can earn is depending on the volatility of the market. If it is very volatile (moving ups and down quickly), you probably can earn a lot of pips if you are lucky.

However, average earning for professional trader is 100 to 200 pips a day that is equal to 100% to 200% return on investment. George Soros, the heart of inspiration for every forex trader, made a history in September 22, 1992 when he bagged US$1 Billion and ruined the Bank of England. This called The Black Wednesday.

What Do I Need to Trade?

The first thing you need to trade is a broker. Register with any of them and they will provide you a software platform that equip with a list of currency pairs, graph, technical indicators free to use. The broker usually provides you free practices by providing virtual money for you to practice enhance your skills.

There are two schools of thought like in stocks about how to make money in forex trading. On one side you have the technical, which are basically charts and other statistical methods that used to try and guess the market. On the other side you have the fundamentals, which study things like countries domestic product, interest rates, economic output, etc. to try and forecast currency movements based on these criteria.

Of course the best answer is always in the middle, using a combination of graphs and charts along with real world knowledge of political events and economic statistics to make the market more predictable for you.

Is It a Risky Business?

Is there any risk involved? Yes. Everything has risk whether it is involve time, life, money, etc. Risk unfortunately can not be avoided. No absolutely not, that's impossible for everything. But as any other thing else you can minimize risk and increase profit, that’s how to make money.

Forex- Is It Right For You?

Today an average person can learn forex trading. The sale or trading of currency is at the heart of what forex is all about. As exchange rates fluctuate and the economies of countries go up and down, these investments in cash behave in value very much like the regular stock market.

When you are in the Forex trading market you will find it operates 24 hours a day giving you access to trades when ever you want. This is far different than the common stock market, you can trade without concerns of the market closing when you trade currencies. Forex websites allow you anytime access to find out what is occurring in the market at any given time. This allows you to learn the fundamentals of the market.

The websites will include tools and tips to guide you through the beginning steps of trading. This is clearly a bonus! You can practice your trading to your heart's content without risking any of your own money.

Through free guidance, demos, and market news provided by these Forex trading firms, beginners in the industry are already trained to be the expert in the business. If you are wondering how much money it will take to get started in forex, it is about $300. That will allow you to open a mini account with a broker.

Thanks to the online forex trading websites, learning the Forex trading market does not necessarily mean you must become a market analyst or economy expert to be successful in the field. Most of the time, you will gain access to forex trading by using a forex broker.

Just like stock brokers, they can provide you accurate information and advice on how to deal with Forex trading strategies. The advice extends to everything needed to become successful trading forex which includes technical analysis and fundamental analysis data. Without a doubt, forex provides a great return on investment. It is no wonder that large financial institutions try to monopolize the marketplace.

Great results are still available for the small time individual investor, because of easy access to the web. As I mentioned earlier, the online firms have been providing powerful website tools to become familiar with the whole idea of the currency market.

Your choice of Forex trading broker will largely depend on your need in the trading market. Many forex internet sites provide a bevy of tools for the beginning trader including detailed research, online trading simulators, and expert technical advice. In addition, these sites will provide access to skilled online forex traders who will provide in-depth advice for experienced traders and novice traders. Everyone can try these tools to see if it meets their needs.

Don't be afraid to step out of the domestic market of the regular stock exchange. Learn forex trading and take advantage of one of the fastest growing global investment opportunities. There are plenty of places for you to learn and to practice before you decide to put and real money up and take a risk. You can learn forex trading and succeed by choosing to take advantage of all of the tools that are available to you.

Forex Trading Tips

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?

This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.

1. Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

2. Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

3. Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

4. Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

5. Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:

Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);

Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.

6. Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

7. No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

8. Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.

9. The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.

10. Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.

11. Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.

12. Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.

13. Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.

14. Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.

15. Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.

16. Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.

17. Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.

The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.

1. Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.

2. Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.

3. Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.

4. Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.

5. Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.

6. The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.

7. Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.

8. Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.

9. Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.

10. Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.

11. Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.

12. Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.

13. Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.

14. Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).

15. One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.

16. Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.

17. Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.

18. Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.

Forex For Beginners

Since forex trading online is a relatively new investing platform, there is still a lot to learn about how best to utilize it. Since information technology changes so quickly, there are new tools and formats instituted almost daily.

The thing I like about the forex market it that it never sleeps, you can trade 7 days a week 24 hours a day. This differs drastically from the stock exchange, because there are no worries about the market closing when you still feel like trading. The beauty of forex websites is that they allow you to monitor the market in real time when ever you choose. This really helps in the learning process.

They also provide some tools in the website to help and guide you through all the process and mechanics of the trading. This is clearly a bonus! You can practice your trading to your heart's content without risking any of your own money.

You can move from a novice to an expert in forex trading after you take advantage of the free demonstrations, currency trading news and free guidance provided by the forex companies. How much does it cost to get started trading forex? It only takes about $300 to open an account with a broker and to start investing.

Thanks to the online forex trading websites, learning the Forex trading market does not necessarily mean you must become a market analyst or economy expert to be successful in the field. Forex brokers will give you access to the market for your currency trading.

Forex brokers provide similar services as stock brokers. They will provide you with tips and advice as well as strategy information. The advice extends to everything needed to become successful trading forex which includes technical analysis and fundamental analysis data. Naturally, because this market has apparently been providing a great return on investment, large financial institutions have been proactively monopolizing the market.

However, with the trading firms, small-time individuals also have the opportunity to earn money through Forex trading brokers. As I stated earlier, the online forex companies have been making powerful free tools available to educate and improve the knowledge of new investors.

How you choose your broker should be decided upon by your level of trading experience. Many houses (online Forex trading brokerage sites), feature simulators and advice, as well as detailed research designed for the use of the beginners. Furthermore, these websites typically provide experienced online Forex traders who offer in-depth advice to forex traders of all levels. These tools are open to beginners to try out.

As you become more familiar with trading forex online, you will become comfortable with the details of doing business in a virtual marketplace. This will put you in a great position to prosper for a long time to come.

FOREX : Make Money with Currency Trading

For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies: Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.

The Economy Is Not The Stock Market

The Commerce Department reported that May's factory orders had increased by a 2.9 percent. This was well covered by 'the press', as it was to be a positive influence on 'the market' (yes, the quotes are intentional.....you'll see why). The enthusiasm was understandable - the $394 billion in orders of manufactured goods is the highest level seen since the current calculation method was adopted. Although being skeptical can be wise, the figure was (and is) a clue that the economy is on a solid footing. However, too many times there's a disconnect between what 'should' be the result of a piece of economic data, and what actually occurs. The economy isn't the market. Investors can't buy shares in factory orders......they can only buy (or sell) stocks. Regardless of how strong or weak the economy is, one only makes money by buying low and selling high. So with that, we put together a study of some of the economic indicators that are treated as if they affect stocks, but really may not.

Gross Domestic Product

The chart below plots a monthly S&P 500 against a quarterly Gross Domestic Product growth figure. Keep in mind that we're comparing apples to oranges, at least to a small degree. The S&P index should generally go higher, while the GDP percentage growth rate should stay somewhere in between 0 and 5 percent. In other words, the two won't move in tandem. What we're trying to illustrate is the connection between good and bad economic data, and the stock market.

Take a look at the chart first, then read our thoughts immediately below that. By the way, the raw GDP figures are represented by the thin blue line. It's a little erratic, so to smooth it out, we've applied a 4 period (one year) moving average of the quarterly GDP figure - that's the red line.

S&P 500 (monthly) versus Gross Domestic Product change (quarterly) http://www.bluegrassportfolio.com/images/070705spvsgdp.gif

Generally speaking, the GDP figure was a pretty lousy tool, if you were using it to forecast stock market growth. In area 1, we see a major economic contraction in the early 90's. We saw the S&P 500 pull back by about 50 points during that period, although the dip actually occurred before the GDP news was released. Interestingly, that 'horrible' GDP figure led to a full market recovery, and then another 50 point rally before the uptrend was even tested. In area 2, a GDP that topped 6 percent in late 1999/early 2000 was going to usher in the new era of stock gains, right? Wrong! Stocks got crushed a few days later....and kept getting crushed for more than a year. In area 3, the fallout from the bear market meant a negative growth rate by the end of 2001. That could persist for years, right? Wrong again. The market hit a bottom just after that, and we're well off the lows that occurred in the shadow of that economic contraction.

The point is, just because the media says something doesn't make it true. It might matter for a few minutes, which is great for short-term trades. But it would be inaccurate to say that it even matters in terms of days, and it certainly can't matter for long-term charts. If anything, the GDP figure could be used as a contrarian indicator.....at least when it hits its extremes. This is why more and more folks are abandoning traditional logic when it comes to their portfolios. Paying attention solely to charts is not without its flaws, but technical analysis would have gotten you out of the market in early 2000, and back into the market in 2003. The ultimate economic indicator (GDP) would have been well behind the market trend in most cases.

Unemployment

Let's look at another well covered economic indicator......unemployment. This data is released monthly, instead of quarterly. But like the GDP data, it's a percentage that will fluctuate (between 3 and 8). Again, we're not going to look for the market to mirror the unemployment figure. We just want to see if there's a correlation between employment and the stock market. Like above, the S&P 500 appears above, while the unemployment rate is in blue. Take a look, then read below for our thoughts here.

S&P 500 (monthly) versus Unemployment rate (monthly) http://www.bluegrassportfolio.com/images/070705spvsunemp.gif

See anything familiar? Employment was at it strongest in area 2, right before stocks nose-dived. Employment was at its recent worst in area 3, right as the market ended the bear market. I highlighted a high and low unemployment range in area 1, only because neither seemed to affect the market during that period. Like the GDP figure, unemployment data is almost better suited to be a contrarian indicator. There is one thing worth mentioning, though, that is evident with this chart. While the unemployment rates at the 'extreme' ends of spectrum was often a sign of a reversals, there is a nice correlation between the direction of the unemployment line and the direction of the market. The two typically move in opposite directions, regardless of what the current unemployment level is. In that sense, logic has at least a small role.

Bottom Line

Maybe you're wondering why all the chatter about economic data in the first place. The answer is, simply to highlight the reality that the economy isn't the market. Too many investors assume there's a certain cause-and-effect relationship between one and the other. There's a relationship, but it's usually not the one that seems most reasonable. Hopefully the graphs above have helped make that point. That's why we focus so much on charts, and are increasingly hesitant to incorporate economic data in the traditional way. Just something to think about the next time you’re tempted to respond to economic news.

Stock Trading Through Technical Analysis

As an investor enters into a stock market, he needs guidance from experts who can fetch him good returns. Since the stock market appears alien to a first-timer there are several people who can help investors with the necessary information and strategies. These people are usually research analysts who predict and analyze stock market trends and make forecasts for the day, week, month etc. There are two types of analysts here: A.Technical analysts B.Fundamental analysts Fundamental analysts basically work out the valuations of the company. They concentrate on the financial soundness of a company, its market rankings, liquidity etc. Their aim is to figure out if a particular company is worth investing into. They also analyze the right time to make investments in a company. Technical analysts on the other hand, study the data and the financial statistics of a company through various statistical tools and compare the data charts over the years. They try to come out with predictions about companies before everyone and enjoy an edge over other market decision makers. Their studies have a large influence on the investment strategy of the investors. The field of technical analysis is based on three assumptions: 1. The market action discounts everything It is said that technical analysis ignores the fundamental factors and stresses too much on price movements. It also assumes that the price of a particular stock reflects all the fundamentals and factors affecting a corporation. Technical analysts believe that media speculations don’t affect a company’s price listing. 2. Prices of a company move in trends Technical analysis say’s that once a trend has been witnessed on a company’s graph, like up, down, fluctuating etc., the trend is likely to continue in the long run. 3. History tends to repeat itself They believe that the market psychology and sentiments are key factors in making the current investors behave like their previous generations. IMPORTANCE OF TECHNICAL ANALYSIS Strange market movements generate a panic amongst investors and they wish to know the reasons for such volatile movements. Many of them try to understand market pricing and the reasons for the fluctuations.They also seek to comprehend complex statistics, graphs, charts and come out with satisfactory conclusions. The role of technical analysts is very great here and they can act as market stabilizers through their expert views and knowledge. Technical analysts have a huge knowledge and look at all the factors affecting a share price. Hence it becomes important to approach a technical analyst for technical analysis and right information related to stock pricing and market trends. Conclusion Hence, if you are looking to maximize your short term gains and returns technical analysis can prove out to be handy. Technical analysis is always a reliable tool that furnishes market knowledge but solely relying on it may create in you an ability to ignore your fundamentals. So an investor needs to be circumspect and approach the right people. Interaction with experts is a very important need.

All About The Stock Market

Does stock trading interest you? If it does, here are a few items to consider before jumping into the stock trading arena. First and foremost, what exactly is a stock? A stock is a representation of a share in the ownership of an incorporated company, you essentially own a piece of the company. When you purchase a stock, you are given the opportunity to watch the company and stock grow or decline. This is why research is needed before you begin purchasing stocks. You should always research the company , look at the trends of the company and the industry that the company is in. If you completed your research thoroughly, you can stand to earn a profit, given the industry that you picked is growing. Always be aware, the industry could turn at any moment and you could end up losing money. Essentially the goal of stock trading is to earn a profit, this is done by purchasing stocks when they are low and trading them when the stock grows. Here are four different ways to go about trading stocks; Scalping - Scalping involves buying large quantities of shares in a stock, and you are just looking for a small move in the stock price. Day trading - Day trading is similar to scalping but you are looking for bigger moves in the price, and you do not hold the stock overnight. Swing Trading - Swing trading is when you buy a stock and hold it for a short period of time looking for a substantial move in the price. Buy and Hold - Buy and hold is when you plan on holding on to the stock for a long time. You believe the company is going to grow in value and the price is going to go much higher. When you enter into the stock trading arena, you need to decide which kind of stock trader you would like to be. They all have their good and bad attributes, it just depends if you are looking for short term gains or long term gains in the stock market.

Online Stock Trading - Stock Trading Strategies

The ease of online stock trading draws the attention of new investors and investors looking for an alternative to the old methods of trading. With little more than an account and a mouse fortunes can be made or lost from the privacy of one's own home. However, before getting carried away, investors should look into the basics of stock trading strategies to help protect themselves from what can be a very tempting albeit confusing world of internet stocks. The only consistent notion about stocks is that they are inconsistent. Investors that make decisions based entirely on emotional “gut feelings” or make decisions based on desperation will only do about as well as they will at the casino. Planned, precise, and well thought out decisions make for strong trades. Online stock trading need not be a random roll of the dice. Regardless of any pre-planned strategy that an online investor approaches the online trading world with, there are two basic entities that need to built into any strategy. All trading is based on maximizing the profits while minimizing the risks. These two factors also tend to cancel each other out. The greatest risks usually turn the greatest profits while the smallest risks typically turn tiny but long term profits. This means that an individual investor needs to find their individual risk tolerance while building their strategy. There will be losses. There’s no strategy in the world that can guarantee online stock trading without loss. Loss is part of the game no matter how serious the player. The most successful online stock traders in the world have one basic rule implemented into their trading strategy. They all have their stock portfolio divided into percentages. They have a predetermined percentage seeking high risk, high return stocks, a predetermined percentage seeking medium risk, medium return stocks, and a predetermined percentage seeking low risk, low return stocks. The predetermined percentages vary from investor to investor and some have the bulk of their percentages in low risk while others have the bulk in medium risk. Placing the bulk of the available funds in high risk stocks is a sign of either gambling or desperation, neither one is considered a very sound strategy. The reason that these percentages are predetermined for the vast majority of successful online investors is to help maintain unemotional investing. If there is a set amount of the available funds doing predetermined job, then the emotional windfalls and shortcomings are incapable of moving the percentages around. Online stock trading can become emotional, and when it does online traders start making bad decisions based on their emotions. Keeping the emotional trading to a nonexistent minimum is very difficult for many online traders, but it is also on of the best laid online stock trading strategies there is. Every individual investor’s strategy will vary to suit their needs, their risk tolerance, and their individual style. However, having a basic strategy before the account is even opened is a vital key to online stock trading. Investors without a strategy tend to lose more often than they succeed. Every individual investor’s emotional strings are different, and some will need firmer, more complicated rules before setting off into the online investment world. Others will do fine with a basic outline. While learning the ropes, it is best to dabble with small sums of money rather than place large chunks of money into any stock, no matter how good it seems. One of the most significant pros to online stock trading is the investor’s ability to go through the motions on paper without ever spending a dime while they keep an eye on the stocks they believe they are interested in. Over time, online stock trading can become a very healthy form of secondary or even primary income, but the investor has to start with a plan.

How The Value of Stocks Are Influenced

A stocks value can change at any given moment, depending on market conditions,investor perceptions, or a number of other issues. When investors pour money into a company's stock, they do so because they believe that the company is going to turn a profit, and the company's stock will go up in value. However if the investors decide that the company's outlook is poor, and they don't invest, or if they sell the stock that they already own, then the company's stock price will fall.

Investors that purchase stock, believe that others will by the stock as well, and that the share price will rise. Investing is a gamble, but its nothing like betting on horses. a long shot always has a chance to win the race even if everyone else is betting on the favorite. But in the stock market, the betting itself actually influences the outcome. Should lots of investors bet on a particular stock, the price of the stock will rise. The stock becomes more valuable because investors want it. The reverse is also true, if investors sell their stock in a company, the stock will fall in value. The more a stock fall, the more investors will sell.

Some people just invest in stock to get a quarterly dividend payment. Dividends are a portion of the company's profits that are paid out to its shareholders. Lets say that if a company declares a annual dividend of $8 dollars a share, and you own 100 shares then you will have made $800 dollars a year, or they would be paid $200 dollars each quarter. The company's board of directors decides how large of a dividend the company will pay, or if it will pay one at all. Most of the time only large, mature companies pay dividends. Smaller companies need to keep reinvesting their profits in-order to continue to grow.

All stocks don't act alike. One of the basic differences is how closely a stocks value, or price, is tied to the condition of the economy. Cyclical stocks are the shares of a company that are highly dependant on the state of the economy. When the economy slows down, their earnings fall rapidly, and so dose the price of their stock. However once the economy recovers, a company's earnings will rise rapidly and their stock will go up.

In The Stock Market, What Is Obvious Is Often Wrong

If you are considering trading stocks to make extra money, there are certain things you need to understand about market dynamics and market sentiment. Everything logical and sensible is often wrong. As a former professional stock trader, I learned a lot of "tips" that aren't shared with the general population. Here are a few tips that the professionals know. If you are just getting started with the stock market, you need to be very cautious about things that seem logical, but aren’t true. As an example, you may hear about a company that is about to introduce some really exciting product - could be a new MP3 player or a drug - just any product that is really being hyped in a publicity campaign. The "logical" thought is to buy the stock just as it is being introduced. But that "logical" choice could be a very bad one. The market often responds by “buying on anticipation of news, but selling on the actual news.” There is even a common phrase of “buy the rumor, sell the news.” The beginner who expects the news to bring good results will be punished severely. The market has its own rules of behavior, and they often don’t follow our logical beliefs. Most likely, the stock of the company that is introducing the new, exciting product has already risen in value. The hype pushed the price up "in anticipation" of the product introduction. As soon as the product is actually introduced, the people who bought early are likely to cash out, letting the stock price drop as soon as the product is actually introduced. Another example of this is “trader’s sentiment.” This is just a fancy term for “what do people think is going to happen to the market in the future?” When the sentiment gets very bullish, there is a great likelihood that the market will start tumbling. When the sentiment gets very bearish, there is a great likelihood that the market is ready to turn back up. Although this seems illogical, there is some underlying logic to it. When most people are very bullish, there is a good chance that they already bought stock. As more and more people are bullish, there is a good chance that these “bulls” have become fully invested and there are fewer people out there with cash in their pockets, ready to invest. Consequently, there are fewer buyers on the sidelines, and this can lead to the market turning down. This means that beginners need to be extremely careful of how they filter news. One any day, if you listen to CNBC, you will hear people with strong beliefs that the market is about to go in a certain direction. They might be right, but if the majority of commentators are saying that things are about to fall apart, it could mean that things are ready to turn up. The best indicator of market direction is this: if most professional stock commentators are saying the market is going up, that is the best indicator that the market is ready to go down! So listen to analysts' predictions but consider that the opposite is more likely to occur. Is this confusing? You bet it is! That is why a beginner needs to spend a lot of time observing, learning to detect these patterns, understanding sentiment analysis, and developing a list of indicators they can use to determine whether the market is more likely to move up or down. With the market, news is often expected and the effect of the news is already factored into the market pricing, so when the news is finalized, prices start to drop since there is no more anticipation of good news. The anticipation causes the price to rise. The actual news brings the end to anticipation. Watch. Observe patterns. Never assume that things that seem logical will be true. Be an observer, not a believer. Have very few beliefs of what you think will happen. Spend more time observing what is actually happening.

Finding A Good Stock

One of the things people are always asking me is how can I find a good stock. The answer I give does not please them. I say, "You are not qualified to pick stock. You don't know how so don't try. Put your money in a no-load mutual fund that is going up". The next cry is, "I don't want to buy mutual funds. What do I do?" OK, so I'll tell you. It is easy. You will have to do less than an hour of work. None of that Wall Street mythology about research which is all horse hockey. The way Wall Street does research is worthless. And don't listen to any broker. Advice from a broker is a eulogy for your money. They want you to look at the company prospectus. This document isn't worth the paper it is printed on. It was not written for the investor; it was written to pass inspection by some Dilbert lawyer in Washington to see that it meets all the regulations. You can take a prospectus of a very good company and one of a company that has gone bankrupt and you will see they are almost identical. Throw them away. Read the Annual Report. Another bit of smoke and mirrors. The title should tell you - Annual. Much of what is in it is a year old. Worthless. And let's hope it doesn't have a case of Enronitis. Get a report from Morningstar. They know all about every financial statistic for a company that you can think of. You might even find out how many sugar lumps the CEO has in his coffee, but there is one thing you won't learn. If you buy this company's stock will it go up? What I am saying is that all the conventional wisdom methods of doing research are worthless. So what do you do? On the Internet you can find a list of the best performing mutual funds. Go to www.smartmoney.com or www.yahoo/finance.com . There are other places also, but these 2 are very good. List the top 5 mutual funds (write down their symbols). Now go to www.bigcharts.com . Put in the symbol for one of the funds. A chart will come up giving you a picture of the price performance of that fund. If it is going up at a 25-degree angle or more it means the fund manager is doing a good job of picking stocks. At the top of the chart picture there is a legend for Morningstar. Click on that. The new page will show near the bottom the major holdings of this fund. Again you need to get the symbols for his top 5 stocks and look at the chart picture for each one. If that stock is going up in a nice steady price over a period of time of 6 months or longer you have found a winner. Do this with several funds until you have found some stocks you like. You have let a professional stock picker do all the work for you and now can piggyback his expertise at no cost. Please remember that when that stock turns down you want to sell it. You may be able to ride one up, but you can never tell when it will turn into another Enron. Always be ready to sell.

Online Stock Investing Basics And Six Benefits Of Trading Stock Online

Online stock investing is a growing way to trade stock but when done by the average person can be a complete waste of money. The average person needs to know the ups and downs of stock trading so that they can prevent losing money when they trade. This article will tell you about trading stock and the advantages of trading stock online. When you buy stock you are actually becoming a shareholder in that company. The company will then take the money you spent to buy that share to expand the company and earn it more money. When the company earns more money the stock price will grow. You can then sell the stock to get more money than you invested or if the company loses money from when you bought the stock you lose money. If you are interested in getting into the online stock-investing world you should go online and create an account through an online brokerage firm. I would recommend you select a well-known and liked brokerage firm such as ETrade Financial. Once you have set up your online account through the company you can begin to trade stock. Now that you know a little about trading stock online lets look at some of the benefits of online stock investing: 1. When trading stock online the broker's charges are minimal. In most cases the brokers charges will only be around $7-$10 per trade. 2. Online trading is beneficial because the company allows the investor to chart the profitable stocks and and also updates the investor with the latest updates and news on the stock market. 3. One of the best parts about trading stock online is how easy it is to access your account, get up to the minute stock information on the company you invested in, etc. 4. You have complete freedom to trade stock in your own way and at your own time. Basically online investing is the best way to invest money with complete freedom. 5. If you need help while trading online you are able to contact other trained brokers and investment counselors and ask questions to them. 6. You save a lot of money and time when you trade stock at your home. Now that you know a little about online stock investing and six benefits of trading stock online you have to ask yourself, "Do I want to make money and enjoy the freedom of trading stock online?"