Learn,Then Learn,Then Learn or you are a gambler !

I would strongly advise anyone who is considering trading stocks, shares or related similar, part or full time, to invest in some good trading education. But before you part with your hard earned money, please do yourself a big favour and see if there is a product review you can read first.

By far, the worst thing I’ve done is to pay upwards of $800 each, to attend a few trading seminars. I’ve had to write it this expenditure as investing far too heavily for my trading education. In contrast, the best thing I’ve done is to invest less than $800 in online trading materials.

I think trading educational seminars, unless they are free of course, are not worth one’s time and effort. Most of them end up being a pitch for the presenter to market his or her software and as a consequence, they will tell you enough information as to render you only partially equipped. So what does $800 pay for? Well I figure overheads like hiring a hotel room are not cheap and that is before their presentation materials and administrative staff.

After a lot of painstaking research I have managed to finally find information I need and have stumbled upon a few excellent trading educational nuggets in the form of downloadable digital PDF style ebooks, something that would suit everyone. If only I’d found these sooner, I would have saved a huge sum of money and a lot of time.

The other nice thing about downloads is that you will always have one hundred percent of what you paid for in front of you. If you go to a seminar, you will go home with some fancy promo material and a few tasters, but you may otherwise only have what notes you took which unless you can write in short could just serve only to confuse you a week later. I speak from experience.

If you decide to go the online trading route, which I think is the easiest, most of the online trading platforms you will come across will offer trading education free and if not free, at a very reasonable cost. With both the downloadable material and trading platforms, you will likely get a help facility by email, and occasionally by telephone too.

Whichever you choose, you need to be careful of padding too. Seminars are usually good at this but happily it is not something I’ve found too much of with downloads.

Stock Exchange World.

New York Stock Exchange investors started "ringing the trading bell" in 1790. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day. Not just anyone can make transaction in the stock exchange, your broker can do all of the things that you cannot, that is why they are so necessary for your success.

It seems as though everyone from the big corporations on the New York Stock Exchange to small home-based businesses are jumping on the barter bandwagon. One of the factors that has contributed to the rise of the Spanish stock exchange index (the IBEX 35) is the (expected) takeover premium that is prized in the different stocks. Insistence by the Toronto Stock Exchange that companies file a National Instrument 43-101 on their properties has worked out in favor of investors.

The Rest of The World nearly every European capital city has its own stock exchange, the largest of these being the London Stock Exchange or LSE. Forex trading systems are becoming so very popular because there are so many additional methods that can be used to get into the markets that are not available through the New York Stock exchange. When you see an image of the stock market on television, you are often looking at trading on the floor of the New York Stock Exchange.

I am sure you are familiar with the stock exchange where people buy and sell shares in companies. Companies that are quoted in the stock exchange are the companies that are trusted to have a predictably brighter future. Huizenga became a billionaire when his firm, after ascending to the number one spot as an international garbage-hauling firm, with contracts spanning the United States, Europe and Asia, was listed on the New York Stock Exchange. Some lose the gamble and its becoming like a stock exchange with traders running aghast or happy at the way the nasdaq points move down or up.

What's Going On Behind Closed Doors

Valued well over 5 trillion dollars, the stock market is a wonderful place for anyone to make a great income. It doesn’t matter whether you are in a well established country or a developing country, the stock market is still a awesome place to earn your fortunes. In fact, the stock market has created more millionaires than any other occupation. Many people shy away from trading stocks because they believe that it is extremely difficult. Most believe that it takes years of schooling and huge sum of money to start. That couldn’t be further from the truth. Yes, many years of schooling and experience are invaluable to stock investing, but they are not required. As long as you can get a hold of the basics and dedicate a month to learn all you can about the stock market, you will be on a fast track to success.

One important thing to learn when dealing with the stock market is to know how companies work. You will have to learn the driving force of the companies to plan to invest in. Whose in charge of running the business? How many years of experience does the figure have in running companies? What are his plans for the future? These are just some of the questions you have to ask yourself, because management has a major effect on the price of a stock. If you find out that someone who has very little experience running a company is CEO, then that should set off a red flag. Not only should that be a red flag to you but to everyone who has invested and is planning to invest in the stock. That alone has the power to lower the stock’s price a significant amount. So pay attention to who’s in charge.

Though knowing who’s in charge is vital to making wise trading decisions, there is another factor that is more important. That factor is the insider transactions. The upper management of publicly traded companies also have the ability to purchase and sell their company’s stock. By law upper management has to let the public know there trading actions. So if the CEO purchases one million shares of his companies stock, he is obligated to make that information public. Why is that important to know? Because if you are considering to invest in a particular stock and you find out that the CEO, CFO, and the COO are selling all their shares, you should be greatly concerned. That should let you know that something major has happened or is about to happened that could negatively effect the stock’s price. So you should research the insider transactions of a company before investing.

So when considering in investing in a stock, take a look at who’s in management. Try to find out general information about them. Find out how many years of experience they have. After you find out basic information about them, find out their recent insider transactions. Are they buying or selling their shares? Why are they taking those actions? You should also check the recent news. All of these steps should help you make wise and informed stock trading decisions.

Need Good Financial Guide?..So You Need A Good Broker.

To enter to any new investing world you need a good guide so you can be sure that you will never get lost in this starnge new world ,in the stock market world  this guide called ( Broker ).
So it`s a common experience that in the cutthroat competitive world, everyone wants to show his or her best in their respective areas. Same thing is true when it comes to stock brokers. Some of the stock brokers are really efficient and maintain their promises and the market trust they have made. As the name suggests, stock brokers are financial agents who work for you in the stock market and charge a minimal amount of commission for their services.

With the advancement of IT system, online stock trading has become possible. Online stock brokers offer their services to the investor via computer based decision support system, which is an online service and help investors in fetching maximum return in a minimum time. Now online trading is easier than ever before with these people who offer their services and share their expertise with investors.

Whether you are a new or old investor, you need some guidance to understand the financial market strategy and fluctuating nature of the stock market. This is the place where stock brokers do their job and keep you abreast of the latest news updates and guide you when and how to buy and sell stocks to fetch maximum return. In return, they charge some commission, though it varies from each service providers.

In the present time, online brokerage is as common as anything else. In comparison to other investment plan, online trading is also legalized and hustles free. If you are new and planning to invest online, consult with online financial experts and service providers regarding your stock investment plan, buying and selling of share, etc., through online trading.

As online brokers are flooded in the market, therefore it is necessary to negotiate with the brokers as far as commissions and services are concerned. Most of the stock brokers offer discounts on trading and growing income. These discount brokers provide benefits to investors in the long run.

At any way Broker is an inevitable part of online trading. If you jump into online trading business without brokers’ help , so it`s more like that you are jumping to a swimming pool for the first time with out have a watcher.

More Money In Less Time !!!...TradeStocks.

This is one of the life facts that i have learned , so if your are seriously planning to invest for your future financial security, then trading stock options is one the best and profitable ways you can look for. Generally, what people think is that savings is the only form of secured investment, but it’s not true. Your savings might also get lowered in value with the increasing inflation rate. Contrary to that, trading stocks is much profitable. For example, if you buy a house today and after a year if its value gets appreciated five times, you can easily sell that commodity. In the Internet world, there are multitudes of options available as far as trade stocks are concerned.

The general perception about stock trading is not overwhelming. If you ask your friend, neighbors and relatives, they would always warn you not to invest online, as it is a gamble. If you find the reason, you will be amazed that none of them possess any interest and knowledge about online trading. Though there are certain risks involved in online trading, but things have changed a lot and in the present time, it is one of the most secured and intelligent modes of investment plan available. In this case, you do not have to face any broker or middleman and you also need not to go through elaborate paper works each time you go for trade stocks. Simply click the button online and buy or sell stocks without making a call or meeting in person with a stockbroker.

As there is very less processing and no middleman involved in trading stocks, online brokers for this process is also very few. However, you can also choose day trading stock with any of the stock trading companies. Day trading stock as the name signifies is a trading option, which is done on day-to-day basis. In this trading, you can gain maximum profit from your stock investment. Moreover, the broking percentage charged by online brokers are also very less. Therefore, you can trade stocks in no time without any hassles. All these positive factors involved have made day trading stock more popular amongst people.

Review A Lot Of Researches ....It`s Your Bridg To A Huge Profit.

We all know that before any one start any project must do a lot of researches about it , stock trading is not a different from this fact so to navigating the complexities of the stock market can be downright intimidating for beginners and veterans alike. With a fluctuating financial environment and money on the line, the stock market can seem more than a bit confusing and overwhelming. But with free stock research you can begin your foray into trading with educated confidence.

Free stock research is typically offered online by professionals who are well versed in the complexities of trading. The services included in free stock research include the examination of a particular stock, the background of the company offering it, its recent performance, and the predicators of its future performance. A free stock research professional will be able to guide you through the process of trading and offer advice as to the buying and selling of a particular stock.

However, finding a reputable free stock research provider involves quite a bit of research on its own. Go online to find chat forums regarding the subject. You’ll be able to learn from the experiences of others who have been in your situation. Look for those free stock research providers who have excellent credentials and a solid track record.

Additionally, you may choose to visit a professional stock broker to find a provider of free stock research.

Either way you choose to find a free stock research provider, you’ll be happy you did so. The services provided through free stock research will afford you a level of confidence that you need to be successful in stock market trading. Do your research, educate yourself as much as possible, and before long you’ll be trading like a pro.

Stock Market Quotes

The stock market is the realm where all businesses survive. In fact all interactions including the buying and selling of stock are done on the stock market, which enables businesses to regulate their profits. However, if you are a beginner in the realm of the stock market, you would figure as a dummy in the stock market jargon. Stock market trading is all about organizing them and living with the risks of stock trading. As a dummy investor, it is necessary that one should know-

• Stock market operations
• The right stocks to invest in
• Risk management and
• Relationship management with the brokers and clients

These are just some of the factors that will enable easy stock market trading. Moreover, guidance for stock market operations can be taken through stock market consultants, who can advise the dummy investors about the right stocks to invest in.

What is a Stock Market?
The stock market is the place where the trading of stocks and bonds takes place. This trading involves the buying and selling of stocks that enable investors to make a profit. In the stock market investors gain information about price fluctuations, Depending on the difference in prices investors can make profit or incur losses. However, not every investor is sure about market conditions. In order to gain better understanding of price fluctuations and the right stocks to be sold at a particular price, the services of a stock broker are essential as he advises about the right time to invest in stocks. If you are a dummy investor, following certain tips about stock market operations will enable you configure your place in the stock market. These tips are as follows-

• Stock quotes - Before investing in any stocks, it is necessary to read the stock quotes as they enable an understanding of what the stocks are and what their price, is.


• Stock brokers - These are the professionals of the stock market who enable investors to have first hand knowledge of the stocks that are to be bought and sold. Moreover the stock broker enables the investor to choose from the stock options that are available to the investor.


• Price control mechanism - Through the buying and selling of stocks the stock market regulates the overall price mechanism, which has an impact on the overall economy of a country. Most stock markets around the world are independent of government control.

How do dummies figure their way through the stock market?
Stock trading is not as hard as it looks. As an amateur you have to make your presence felt on the stock market through which other investors will be able contact you. The following points will enable dummy traders to better knowledge of trading stocks:-

• Choosing a broker- Choosing the right stock broker is essential for you in order to invest in the right stocks.


• Risk management- Try to maximize your profits by investing in stocks that your business exclusively deals in.


• Build a Portfolio- Building a balanced portfolio is absolutely necessary in order to have a good business profile.

Therefore stock trading can be easily figured through knowing the workings of the stock market and utilizing the services of the stock broker. However as a dummy investor, it is necessary to manage risks so as to enable better investment strategies.

Stock Trades

The stock market is the procedure through which company stocks and derivatives are traded on the stock exchange. The stocks and securities have to be listed if they are to be traded on the stock market. However, there are different financial exchanges available on the stock market which includes bonds, commodities, derivatives and stocks. Bonds are traded “over the market” which is an informal way of trading and is usually known as bond market. Commodities markets enable the trade of commodities, and derivatives can be traded on various markets.

Currently the worldwide bond market has a volume of transactions that are worth $45 trillion. The deravitives market is estimated at $300 trillion worldwide which is still rising at a rapid pace. The world wide stock market is estimated to be at $51 trillion. This volume of financial transaction gives one a fair idea as to the evolution of the stock market for the trading of financial transactions. In order to trade through the stock market one has to list the stocks that are to be traded on the stock market. Every country has to have at least one stock exchange so as to enable the trading of stocks. For example in the United States there are three main stock exchanges which include the NASDAQ, NYSE and Amex. However there are regional stock exchanges OTCBB and Pink Sheets that enable the sale of the stocks in the market.

The mechanism of trading on the stock exchange is based on the buyer and seller relationship just like in the ordinary market. Trading can be done through auction, physical exchange and virtual exchange.

In auction, trading the stocks is based upon biding. The buyer that bids the highest price gets to buy the stocks. The seller asks for the potential price of the stock and if the buyer calls in the highest price among other sellers than that price is set as the actual price of the stock. The sale of the stocks is then made on a first come first basis of the stock.

Physical exchanges on the stock market take place when stocks are listed on the Stock exchange. This is the most popular kind of trading in the stock market as a stock broker enables the buyer to get the best bids of the stocks at suitable market price. Online brokerage is one aspect of contacting a broker so as to enable the trading of stocks. The broker enables a deal between the seller and the buyer of the stocks. He functions as an intermediary in the stock market, who has information about the best price of the sale of stocks. However it is necessary to read the stock quotes before contacting a broker of a seller. Virtual trading is done on computer networks where the buyer contacts the seller online to bid for the purchase of a stock.

The stock market is a revolutionary concept in business economics which has enabled nations to exhibit better growth rate. This is because stock markets have enabled management and organization of the stocks in an effective way.

by:Vijay Kumar Sharma

Chinese Stock Market Crash - What is Taking So Long?

Many stock market technical analysts will tell you that the Chinese stock market is a bubble and they will also tell you that it is ready to burst. Of course even a technical analyst does not have much to go by as there are very few charts which show similarities with 10% year-over-year growth. Nevertheless judging by technical charts of stock markets in other emerging nations the Chinese stock market looks like it is ready to crash.

Recently former Federal Reserve Chairman Greenspan stated that he believed the Chinese stock market was completely overbought and it was looking for a sharp fall. That very same day in defiance the Chinese stock market went roaring up. Some might say this would show how wrong Greenspan was, however we all know that at the very top of any stock market there is an rational frenzy of buying.

If we look at all the major stock market crashes we see this same scenario. So where is the Chinese stock market today and is it really going to crash and when it dies many of us will say what took it so long? Is the Chinese stock market a good long-term play? It very well may be after the big crash. How far down it goes no one will know, but as it stands now it looks very toppy.

As the traders, companies and even the Chinese government deny that the stock market is in trouble, technical analysts warn that the end is near and the crash is coming. The question now is how much will the stock market fall and what will be the date of its collapse?

by:L. Winslow

Stock Market Secrets Advice Tips Tricks Trends of Stock Market of India

While making an investment in Indian stock market there are lots of thing you should consider before it. I will guide you most important thing and tips that you can implement while making any investment in stock market of India. These stock market tips and tricks are based on many years of expertise experience and as a professional expert in Indian stock market. These are the Stock market secrets ........

Buy at low and sell at high: - This is way to make money in stock market that you should buy at lower prices and should sell at higher prices. It determines the success and failure of an investor in stock market of India. Stock Market Trend: - If you want to be a successful investor in stock market of India you should have perfect idea of stock market and what is going on in the stock market. For this you should have up to date with Indian stock market news.

If stock market is going up try to search out reason behind it. If market is going down then also try the same. Make your mind calculation with these points and than come to a final decision whether you should keep sell or buy. Down and up it is the duty of stock market of India. Stay longer with stock market may result in profit or may be results in loss, it’s totally depends upon the reason why these major up downs have been taking place in stock market. In case you have got the right point than you will get other wise loss.

Current Trend of Stock Market: - As per current trend of stock market it has been seen that once stock market rise at higher speed it down also with same speed and if stock market have gone down there is more possibilities of getting up. This is the current market trends but it can be change in future.

Keep patience: - Patience is also plays a vital role in your winning and losing. In stock market many peoples take immediate decisions which can result in big losses later on. This is the nature of stock market every step should be take after a deep thinking and consideration on it.

by:Prabhat Kumar

Stock Trading Courses

The world of stock trading is exceedingly diverse and offers many new and exciting opportunities for trading. Trading stocks enables people to take part in wide-ranging market moves or within specific sectors.

A large number of people are attracted by the ever-growing stock market and hence there are institutions that offer various courses in stock trading. These institutions offer full time courses in stock trading and there are some institutions, which even offer courses that last for a few days. Stock trading courses educate people in all aspects of the stock trading, with the help of most recent tools and software. Traders can learn to place and control their own orders in the stock market with the help of understanding gained from these courses. Stock training comprises of learning how stock trading professionals make money and also learning the variation between different contracts and sectors trading. These courses make people competent enough to decide which stock investment would prove to be profitable for them and which investments are better avoided.

Different types of contracts in the stock market can be used in unison as these contracts offer incredible leverage depending on the stock being traded. These courses also offer advice on which stocks are traded 24/5 and which have restricted time period.

In other words, stock trading courses train people to do business with discipline, profitable plans and technical tools. They focus on vital and technical peculiarities of stock trading. These courses offer comprehensive and professional training that is suitable for novice as well as advanced traders.

Most of the stock trading courses includes interaction with some of the best traders in the country so that learners get more of practical knowledge. These traders provide information on all the complications involved in the stock market and help learners develop a skill of risk management through discipline and investment preservation. Counselors are also available to guide in all aspects of stock trading.

by:Thomas Morva

What Is Stock Market Timing And How It Can Help You Trade Stocks?

Stock market timing has to be on of the least understood terms in stock trading. Some people have even thought that stock market timing was illegal. Obviously this was based upon incorrect information.

Whether you are a short-term, intermediate-term, or long-term trader...whether you use fundamental or technical analysis or both you use stock market timing. Unless you buy a stock and hold it until death, you use some form of stock market timing...and even then you may have had to make the decision of the best time to buy the stock.

Stock market timing is simply deciding two things:

1) When to get in a stock
2) When to get out of a stock

That's not to say that the decision process involved is not more complex than that. A trader will use their preferred analysis techniques to time the stock.

The whole purpose of stock trading analysis is stock market timing. If you use fundamental analysis you may see a company that you would like to buy Wal-Mart stock the P/E ratio is more in line with your analysis. In this case you would be using stock market timing because you would be waiting for the time when the P/E ratio was to your satisfaction.

A stock trader using technical analysis might wait until Wal-Mart stock price is greater than a certain moving average before buying the stock. This is an example of stock market timing as well.

Have you heard the saying, "Timing is everything". It is of true of trading stocks as it is of many things in life. That doesn't mean that you have to have some kind of super-human, split-second accurate timing to make money in the stock market. When you trade using stock market timing you are simply trying to maximize the return on your investment. Where would you have rather bought Google, at the $100 a share price or at today's price? So as you see stock market timing is a way for you to seek out greater than average returns when trading in the stock market.

Stock market timing is not some skill you learn overnight. Like any skill worth having it is important to study your craft and hone your skills. The most important stock market timing tip of all is to become as knowledgeable as you can before you actually trade stock.

by:Tony Spann

Day Trading

Trading

Day trading is difficult for several reasons. The key to successful day trading is to manage your trades and your emotions. Discipline is a requirement, consistency is key, and commissions eat away at profits. Day Trading requires prior experience and skills to be successful. If you are not up to spending the time learning the techniques of trading, reading about new and improved trading strategies, and working with commitment in a fast-paced trading environment, then day trading is probably not for you. Day trading isn’t just investing, you need your investments to make profit (as any investment should) plus pay your living expenses. It is all about control and how much you have of it. Limiting your losses when day trading is by far more important than making big profits. Although it is commonly viewed that day trading is riskier than investing, the professional day trader will argue with you that the opposite is true. Successful day trading is about one thing -momentum- whether you are shorting the market or going long. Day traders want to ride the momentum of the stock and get out of the stock before it changes course.

Day trading is done in real-time. Real time charting software is essential for day trading, it will save you time and improve the accuracy of your trades. Day traded stocks are rarely kept overnight because of the extreme risk of prices changes to the detriment of the trader. Day traders depend heavily on borrowing money or buying stocks on margin. Overnight margins required to hold a stock position are normally 50% of the stock’s value, while many brokers allow pattern day trader accounts to use levels as low as 25% for intraday purchases. Day traders use direct access brokers, not retail brokers as execution of trades are too slow. Low commission rates allow a day trader to make a large numbers of trades during a single day with out eating away at the traders’ profits. There are a variety of online trading services. CyberTrader is one of the best online brokers in the market today.

Conclusion

Successful day traders have the discipline to follow their method because they know that only trades which are indicated by that method have the highest probability of resulting in a profit. Expect to make at least 500 trades before you really start to get comfortable. You must ask yourself, “Do I trust myself to enter trades and do I trust myself to exit trades when my method indicates to do so? “ Remember, good day traders do not rush into trades. They take their time and pull the trigger when the right time occurs. So are you ready to begin day trading online and making money?

by:Gerry Simoni

Stop Losses - An Important Part of Stockmarket Trading

If there is one area guaranteed to confuse many traders and lead to multiple opinions on the most appropriate approach, it is the subject of stop losses. The science and the art of placing stops is featured extensively in many trading books and guides, but the bottom line is that there is no right or wrong answer, simply the fact that stop losses must be used to limit potential downside exposure when trading. Traders should also be careful not to confuse stop losses with buy stops, which trigger an opening position rather than closing the trade.

It is very important not to package together the placing of stops with money management, as the two represent different strands of trading. Simply put, stops are there to protect profits and limit the potential downside at any time once a trade has been opened, and are part of an exit strategy for trades that are already open. Money management covers position sizing or amounts to be risked within each trade of a portfolio.

Within this potentially complex subject, there are many different types of stops, and it should be added that stops are never guaranteed unless that facility is offered by the broker for an additional charge. Nevertheless, their use is an essential part of any trading strategy. For the examples below share prices are used, but stop losses should also be used when trading CFDs in commodities, forex or indices.

The uses and abuses of stops

Much has been written about the placing of stops and how to avoid them being triggered without too much risk. This of course is the $64m question for most CFD traders and very often causes more consternation than any other aspect of the trading process.

The basic idea behind where to place a stop is by reference to the overall trend or trading range within which the share is moving. As to the actual level of the stop, it depends on several factors including the trader’s overall money management rules, the amount of leverage, the time frame, and crucially the underlying volatility of the share chosen. The stop should aim to be placed at a level which if triggered would confirm the trade was incorrect.

There is no point in trading a highly leveraged CFD account with routine 5% stops as eight losses in a row, which statistically can be expected every few hundred trades, would lead to a minimum 40% drawdown on the account.

Having said that, there is equally no point in attempting to reduce the risk too far by setting 1.5% or 2% stops in highly volatile stocks or takeover situations as each trade needs room to breathe, and stops this tight are likely to be triggered within the normal daily ebb and flow of price movements.

A good rule of thumb is that if you cannot see at least double the potential profit in a trade compared to where you expect to place your stop loss, that trade should be passed over. Indeed some CFD traders look for three times profits achieved against losses as a starting ratio. Consequently an approach like this can be very successful by winning just three or four times out of ten, and is the hallmark of many of the world’s leading traders.

Many losing traders look for an entry point or strategy that wins six or seven times out of ten, but this is very hard to achieve consistently. Although the feeling of winning regularly is certainly warm, the win/loss ratio here very often tends to be very poor as too many winners are taken quickly, so the correct use of initial and running stops placement is crucial.

Types of stops:

The basic maximum loss stop

The maximum loss stop is the starting point for most traders and is triggered when the share price hits a level below or above the opening price of the trade, depending on whether it is a long or short position. It can be measured in percentage points or actual money terms, but for these examples percentages are used. So if a CFD trader buys shares in British Telecom at 330p with a 2% stop loss, then the allowed loss is 6.6p and the position is closed if the bid or selling price falls to 323.4p or lower.

Note that no mention is made of how many shares are purchased or how much is being risked, as this is part of the client’s overall money management.

If the shares gap down below the stop either intra-day or at the open of trading the next day, the closing trade is triggered at the first price available in the market for that size, which is why stops are not guaranteed.

As to the percentage size of the stop to be chosen, that depends on several factors including the trader’s overall money management rules, amount of leverage, time frame and crucially the underlying volatility of the share chosen, which is very important.

Volatility stops and the ATR

Clearly, a percentage based stop is likely to be triggered more quickly in a highly volatile share and one of the ways traders can adjust stop levels is by ratio to the underlying volatility. There are various measures of volatility available, but a simple way is to use a stop related to a multiple of the average true range indicator, which is featured in most software packages.

The ATR determines a share’s volatility over a set period that can be defaulted as desired. The daily ATR indicator is very simple to calculate and is the highest of:

The difference between the current high and the current low
The difference between the current high and the previous close
The difference between the current low and the previous close

Basically this is the maximum range in which the share has traded from the previous close to the current high and low. The average is then taken over a set number of days (ten is often used), and the stop is then calculated as a multiple of the ATR.

The reason this indicator is useful is that it becomes easier to place a stop outside the normal range of trading so that it is not hit by the short term random action of individual shares based on their average volatility.

As to the multiple of the ATR to be used, that is for the trader to decide, but longer term players and seasoned stockmarket investors tend to find a 2.7 to 3.3 multiple (which can equate to 5% to 15% stop losses) is applicable. Shorter term or highly leveraged players need to tighten the stop accordingly by adjusting this multiple.

The breakeven stop

This is a commonly used stop in which the trader closes the position if it reaches a minimum profit and then returns to even or back to a loss. So in the above example, if the price of BT rises say 2% to 336p, the stop is moved up to 330p, which was the opening price of the trade.

Please note that the breakeven stop here is not simply a new 2% stop loss – it’s very slightly different – but very often this approach is used as a rough and ready way to protect the downside. This leads on to the important subject of trailing stops.

Trailing stops

Trailing stops are widely used by professional traders as they provide an element of protection for winning positions without sacrificing too much of the profit.

The idea here is that once the position is opened, the trailing stop runs behind of the best profit achieved throughout the trade and the stop (whether percentage or price) is moved up accordingly.

There are three rules and suggestions (examples here are for long positions):

1. The stop can and must never be lowered

2. The percentage or price of the stop at each stage of the trade does not have to be the same. For example, the trader in the above example may begin with a 2% stop in BT, and then the share price might rise to 346.5p, which represents a 5% profit. At that point, the trader may wish to tighten the stop to 1%, so that a minimum 4% profit can be taken but with more potential upside. This approach is to the discretion of each player, but it is a very useful way of nailing down profits.

3. Another approach is to raise the stop loss with reference to recent action after a certain profit has been reached. Instead of a percentage stop, the trader might move the stop up behind daily lows, thus protecting against a potential trend change.

4. The stop might be triggered if there is a sudden rise in volatility with a reversal in the shares, and some traders use as a trigger if the day’s ATR is double the average ATR of the last ten days. This is very useful where a wider initial stop has been taken and there is the potential for a trend change before the trailing stop is hit, thus protecting the downside.

Dynamic Stock Market Content - How To Find The Best Methods To Keep Up With Your Investments

Today, there are literally thousands of sites that have dynamic stock market content to help you keep up on your investment. With all this content and information, it’s easy to get lost with all the information. Here are some tips to help you cut through the clutter and make a fortune on your investments now.

First of all, here’s an important fact you must know-the stock market short term is merely a voting machine. In other words, the market short term doesn’t value a companies’ stock according to how profitable the company is, but rather on how many investors are buying or selling.

For instance, often times a stock price will be going up, and people will jump on board to buy regardless of how the companies’ profits are. They simply purchase because of the bandwagon effect-they see the stock price going up, and they think they have to get in on the action.

This type of investing is the main reason for the stock market crash of 1929, and it’s also the culprit of just about every wild market swing. Generally, most investors will only buy or sell based on factors that usually have nothing to do with the companies’ profits; again, such as the stock market price, economic factors, etc.

For instance, when an advisor is saying a stock will go up, everybody will go out and buy the stock regardless of the companies’ profits. This is exactly what happened during the dot.com era. Everybody was buying up the stocks left and right even though there were no real profits, and eventually when the stock market realized that, everything came crashing down, and many investors lost a ton of money. In other words, short term the stock market is a voting machine. Long term, however, the market will always value a company according to its’ actual profits.

What can you learn from this information? Don’t do what everybody else is doing.

If you learn to understand how to read a companies financial statements, and can tell the overall health of a company, once you find a good company selling at a reasonable price, buy it. You may or may not profit short term, but long term you will always make money. Therefore, you don’t need dynamic stock market content, because when you invest for the long term, you can go a long time without paying any attention to your investments, and can still be sure of turning a profit.

Make Money From The Stock Market Jitters

Late summer 2007 sees the stock markets around the world jitter with, er, the jitters, as the up and down swings foster insecurity, and talk of recession looms.

Is it possible to profit from this kind of stock market movement? Absolutely...

Never mind the possible recession talk, it's always possible to make profit from stocks and shares, both long term and short term, by a method I don't use, playing the markets.

You can play the futures trades game to make fortunes, but it's risky as you can also lose fortunes - as far as I'm concerned the risk is to high for me, so I prefer to go for a safer route - niche marketing.

Niche marketing means that you simply focus all your efforts, from the product creation, marketing and follow up process on a tightly focused niche market.

A niche market is simply a group of people who are all interested in the same thing, and for this article I want to focus on the credit niche market.

It's possible that the jitters in the stock markets may trigger some sort of recession, and if that happens, a lot of people will be in financial problems.

There are enough people seeking credit when the economy is good, so the market only gets bigger in recession.

Using the niche model, you can focus on what people are looking for when they search for cheap credit online.

You could be an affiliate for credit companies, whereby you send them traffic, and if someone then buys or signs up as a lead, you get paid a commission - these can be amazing figures - say $40 per lead, because the credit company knows they will make far more than that in the long run!

You may want to set up a review site, comparing various different offers.

Of course with the credit market being so huge, even if you select this as a niche, you will need to focus on a smaller, tighter niche, say credit seekers in a particular town. That makes the market smaller, but easier for you to offer them a specific product to them, and this equals easier sales, which equals profit for you!

Once you grasp the idea of niche marketing, you can then simply repeat the process for niche after niche, concentrating on as few or as many as you choose.

by:Gordon Bryan

Using Elliot Wave Theory to Analyze the Stock Market

Some market technicians that use technical analysis to look for a nearing market bottom or market top have noticed over the past several years that the stock market will consistently move in a 5 wave pattern which is based on concepts from Elliott Wave Theory. When the stock market is trending upward a 5 wave pattern consists of 3 separate moves upward and 2 separate moves downward before a top occurs. Meanwhile when the stock market is trending downward a 5 wave pattern consists of 3 separate moves downward and 2 separate moves upward before a bottom occurs.

Let’s take a look at the Nasdaq and S&P 500 and analyze their one year charts using concepts from Elliot Wave Theory. Notice how both the Nasdaq and S&P 500 made a bottom in late July of 2007 (points A) and then made 3 separate moves upward (A to 1, 2 to 3 and 4 to 5) followed by 2 separate moves downward (1 to 2 and 3 to 4) before topping out in late August after completing a 5 wave pattern.

Now notice what happened from late August until early October of 2007 as the Nasdaq and S&P 500 made 3 separate moves to the downside (5 to 1, 2 to 3 and 4 to 5) and 2 separate moves to the upside (1 to 2 and 3 to 4) before making a bottom in early October after completing a 5 wave pattern.

Meanwhile lets continue using Elliot Wave Theory an trace out the 5 wave pattern from early October of 2002 until early December of 2002 when the stock market made a top. Notice there were 3 separate moves to the upside (5 to 1, 2 to 3 and 4 to 5) and 2 separate moves to the downside (1 to 2 and 3 to 4) as well.

After the Nasdaq and S&P 500 topped out in early December they formed another 5 wave pattern as they made a bottom in mid March of 2003. Once again there were 3 downside moves (5 to 1, 2 to 3 and 4 to 5) and 2 upside moves (1 to 2 and 3 to 4) before the 5 wave pattern was completed in mid March.

Now I’m not an expert in Elliot Wave Theory but it looks to me that the Nasdaq and S&P 500 may be nearing the completion of another 5 wave pattern with a potential stock market top coming into play. Notice there have been 3 upside moves (5 to 1, 2 to 3 and 4 to 5) and 2 downside moves (1 to 2 and 3 to 4) since mid March through late May of 2007.

Adding concepts from Elliot Wave Theory is another tool investors can use to help predict when a stock market bottom or top is nearing.

Having the ability to take part in online stock trading from your own home is a great service to have. But you have to choose the right company that i

The best online stock trading company is contingent on your needs as a stock trader. If you are looking for a free online stock trading company, then you will find a lot of these, but they might not be able to offer you all the services that services with more traditional payment structures will offer you.

There are companies that will require a small fee for you to use the website's services. One website that keeps winning awards is Scottrade, which is one of the largest and most successful online trading firms. These awards are for investor satisfaction for an online company. But this website is mainly used by heavy investors who have a strong understanding in online stock trading and know the winners and losers when it comes to stock trading.

The only small problem with the award-winning company Scottrade is that they require a fee for signing up. The fee is $500, but to open a margin account, you have to deposit $2,000; as a result, you will want to make sure that you get your money back on the stock market. The way to do this is to develop an overall, analytical stock-trading strategy and then to implement it with self-discipline.

In addition to this, you should consider using stock trading simulators to keep track of your stock before you buy them; and then you should keep an eye on them in your portfolio after you purchase them.

If you need assistance for whatever reason, then you can go into one of the many branches that are placed in various states across America. The friendly staff will be able to help you out with any problem.

As stated before, the best online stock trading company will have to suit your needs. If you are looking for a no fee type of website, then you can try looking for that certain company. But if you are looking for one of the best online stock trading companies, then you will more then likely have to pay for the use of their services. But you will find one that will suit you and you can then open an account with them.

The Benefits of Online Stock Trading

When you decide to start trading on the stock market, you might like the idea of doing this in the comfort of your own home. There are online stock trading companies that are willing to let you do this from the comfort of your own home. You can wake up in the morning and purchase new stocks. Plus you can go to bed and sell some stocks, if that is what you need to do at the time.

Having the ability to do this all from home is a great bonus for investors. There is no need to get in touch with a broker; although a broker is still highly recommended when you are dealing with stocks.

These online stock-trading companies will let you buy and sell stock from your own home and on a secure server. That means that your personal information is kept safe from the hands of potential fraudsters. Using a secure website means that you can trade safely without worrying that someone has access to your information.

Of course, up to the minute information is vital whenever you are trading stocks. One moment, when you are not looking, the price of your stock could take a nosedive in response to the most recent news. This is why it is so important to keep up with the latest share prices and the latest news concerning the future of those shares.

Having the ability to take part in online stock trading from your own home is a great service to have. But you have to choose the right company that is going to provide you with that online stock trading service. If you don't know of any reputable online trading companies, then ask for recommendations from your friends and family. Also check the better business bureau and see if any companies have had complaints filed again them. That will filter out the bad companies from the good companies, allowing you to dodge potential scams and to select the best business based on the information you can access.

Do Any Companies Offer Free Online Stock Trading?

While some companies offer what they claim is "free online stock trading," no company can ever realistically offer a product for free, unless they are a non-profit organization with a stated goal to help bad stock traders learn how to trade better. And because no such organizations exist, you will have to trade with a company that charges you fees, whether it is explicitly or implicitly.

Companies that offer "free online stock trading" are generally offering free access to a members-only online stock trading site, which will allow you to use a range of stock trading analysis tools; it will also usually give you access to dozens of free stock tips from different sources, often including relevant newspaper clippings about publicly-owned companies.

If you opt for a "free online stock trading" company that gives you a free membership, that site will likely generate revenue by selling ad space or by charging commissions on trades. This means that your stock trading experience may be significantly inhibited by pop-ups, flashy ads, and biased information; or it may mean that you will have to pay excessive fees every time you make a trade.

On the other hand, some "free online stock trading" companies charge membership fees, but do not charge for trades. If you plan to make a lot of small stock trades each month, then you should consider opting for one of these companies, which will charge you each month, but wont require you to pay fees when you trade. However, on the other hand, if you plan to make few large trades, then you should consider selecting one of the online stock trading companies that will charge you per trade, rather than per month.

Keep in mind that there is no best solution to this problem for every person. The best solution for one trader may be completely different for you. This is why is it is crucial to inspect each deal in terms of what it will offer you personally as a trader.

Day Trading Online in the United States

Day trading online in the United States has become a powerful trend in recent years. And while growth rates in the US have been sluggish in recent years, the US has still maintained a strong dollar, which is still used as the unquestioned international standard.

Unemployment rates have been better than where they are now, but consumer spending is at a normal pace.

But what does all of this have to do with the stock market?-Surprisingly a lot. Macroeconomic trends are quite simply the sum of microeconomic decisions and realities. If the economy overall is suffering, there's a good chance that most firms are also experiencing slow growth rates, which will be reflected in share prices on the NASDAQ.

This also means that day traders will feel the strain; some may even avoid trading altogether out of a sense of despair, which may further lag growth rates.

Most of stock trading websites are actually based in America. So that means that you will always have a huge selection of companies to choose between for your stock trading services.

Day trading online in the USA is a big business and a lot of people setting up online companies are making a lot of money, often through sign-up and service fees. But the real winner can be the consumer--the one who signs up for the website: these people get into the online stock trading world and can make a real killing when they are buying and selling all the right kinds of stock.

But you do need to have some kind of knowledge about buying and selling stocks when you are taking part in online stock trading. Brokers are available to give you any advice when you need it; and if you are always failing to earn, then you should really give a broker a call, just to see if they can help you out of your losing streak.

USA is recognized by many as the home of the strongest and largest stock market. This is why foreign investors from around the world choose to invest a good amount of their money in US-based business. For you to make the most out of the US stock market, you need to be able to know when to buy and sell. If you do not know when to say that enough is enough for that share, then you should not be trading at all. A lot of people have exact strategies-technical or fundamental-to determine exactly when to buy and to trade and exactly how much to diversify to manage risk appropriately; and these are the people who are usually earning a steady income.

Waterhouse Online Stock Trading: Does It Live Up to Its Brand Name Reputation?

As you might expect, there are a lot of companies that will offer you the chance to participate in online stock trading. One of these companies is Waterhouse, which is highly dedicated to giving its customers easy access to the world of online trading.

Waterhouse and their online stock trading website will help you if you have been looking for an online stock trading website that focuses on providing tips and information to the user, rather than letting them make decisions based on their own analysis. They have up- to-the-minute stock prices on their main web site and they also give you the opportunity to research a share to see what has happened to it in the past and that makes for a great tracking program.

Waterhouse lets you take control of your stocks from the comfort of your own home. You can either use the Internet for this service or you can use a telephone for all the stock services that you would expect from a great company like Waterhouse. With this service, you can trade from anywhere in the world.

Buying and selling stock is so easy on the Waterhouse online stock trading website that you might be surprised by the speed and ease-of-use. Waterhouse sticks with the saying that every second counts on the stock market world; and to prove they mean that, they offer one second transactions speeds. Waterhouse also offers extended trading hours for anyone that would like to take part in some after hours stock trading.

Overall Waterhouse is a very pleasant and a much respected company. If you are looking to jump into the online stock trading world, then Waterhouse should be your first stop. Check out their website and see what they can offer you as a customer. If it matches your specific needs as a trader, you should consider trying out their services at least temporarily.

Online Stock Trading and Realistic Assumptions

Many people begin online stock trading with the false belief that they will get rich fast. They believe that they will find some little-known secret and exploit it to generate piles of money while everyone else laments their losses. And this is actually the primary reason why 70% of day traders lose money-they simply do not have realistic expectations.

If you want to master online stock trading, you must set realistic goals that you can actually achieve. If you set your standards far beyond what you can hope to earn, you will get frustrated easily and give up, when you should actually be looking for a better way to nuance your strategy.

Excessive penny stock trading is one example of the pervasiveness of this unrealistic mindset. Many first-time traders will immediately jump into highly-speculative and highly-volatile markets with the false beliefs that they can earn a massive profit fast. This may happen, but they may also lose a lot of money instead.

If you have a lot of money to risk and you are a risk-neutral trader, then you may want to start trading penny stocks; however, you should always proceed with caution by getting the best information you can before you ever enter a market.

Again, even if you are risk-neutral, you should still spend time working with an online stock trading simulator before you actually start to buy and sell stock. You may think you have found a profitable trend, but if you haven't had the chance to prove it through testing (which you can do completely for free), then you really have no reasonable way of assuming that your strategy will work in reality.

This is why you must ground your thoughts. You must understand that most professional brokerages with workers who have traded for years can't bring in much more than 7% each year without making significant risks, which means you will have a hard time doing better, even if you find a profitable strategy.

If you plan to go into stock trading, you should either expect to make around 7% by creating a diversified portfolio of companies that have a long history of steady growth; or you should trade highly-volatile stocks with the assumption that you will lose every penny you trade until you master online stock trading.

How to Find the Best Online Stock Trading Company

The best online stock trading company is contingent on your needs as a stock trader. If you are looking for a free online stock trading company, then you will find a lot of these, but they might not be able to offer you all the services that services with more traditional payment structures will offer you.

There are companies that will require a small fee for you to use the website's services. One website that keeps winning awards is Scottrade, which is one of the largest and most successful online trading firms. These awards are for investor satisfaction for an online company. But this website is mainly used by heavy investors who have a strong understanding in online stock trading and know the winners and losers when it comes to stock trading.

The only small problem with the award-winning company Scottrade is that they require a fee for signing up. The fee is $500, but to open a margin account, you have to deposit $2,000; as a result, you will want to make sure that you get your money back on the stock market. The way to do this is to develop an overall, analytical stock-trading strategy and then to implement it with self-discipline.

In addition to this, you should consider using stock trading simulators to keep track of your stock before you buy them; and then you should keep an eye on them in your portfolio after you purchase them.

If you need assistance for whatever reason, then you can go into one of the many branches that are placed in various states across America. The friendly staff will be able to help you out with any problem.

As stated before, the best online stock trading company will have to suit your needs. If you are looking for a no fee type of website, then you can try looking for that certain company. But if you are looking for one of the best online stock trading companies, then you will more then likely have to pay for the use of their services. But you will find one that will suit you and you can then open an account with them.