Trading Journal - Your Trading Pillar for Success

If you are trader (whatever it is - stock/options/future/forex) and never had your trading journal started, this is my genuine advice - Start it now !!! And do not wait !!! 

Trading journal is one of the upmost criteria for a successful trader, of course, it is equally important for all the beginer trader. But from the start, you will be definitely facing discipline issue as recording down every single trade is not an easy task for every one, especially for a person that is not very well organized for his stuff.

But once you started it, you will start to see more results, it is just a like a journal, to understand yourself better. A trading journal will let you understand yourself more about your trading style and behaviour.  

Then why do we need to have trading journal? The reasons are simple:

1. First, it gave you more time to think before you enter your trade while you still entering data in your trading journal before entering the market. Many times, you realised that your trade is based on emotion more than analysis. Give yourself a valid reason why you enter the trade, and what is your exit strategy. 

2. Second, it provide reference information when you trace back why did you enter the trade in the first place. Whether the result is making profit or loss, your record is important for you to know what you did right and what you did wrong. 

3. Lastly, to calculate the profit/loss in a systematic way, as well as providing a performance chart for yourself to track your profit/loss, as well as your winning/lossing trade ratio, etc. 

If you are excel expert, you can make a simple trading journal by using excel.  If you are not, and would like to use what the expert promote - here is one for you. 

My friend Grag has introduced a trading log sheet to me which I find it very useful and comprehensive. 

You can find out more from here - http://tradingspreadsheets.com/

For all Stocks / ETF, E-mini Futures, and Forex (Fx) Currency Pair traders!

   Plan it... Trade it... Track it !!!.

 A glance at the "Spread`Suite's" 8-different sheets

This trading spreadsheet is basically created with excel, with all the necessary information to guide you how to use it. Like all the software you use, first thing first is to familiar with product you are going to use.

You want the excel do the rest of the calculation after you key in the necessary data, this is one for you. It allows you to record your "entry note" and "exit note" in the comment column, because the reason you enter and exit the trade is upmost important, it let you understand your trading behaviour bettter. 

It provides your performance chart based on your monthly profit/loss, and most importantly you can now track every single trade you entered. 

I would say it is basically a comprehensive trading journal package whatever you need to analysis your trading performance. 

To your successful ! Cheers ! Find out more about trading from http://www.traderwork.com/ 

Trading Journal - Your Trading Pillar for Success

http://www.traderwork.com/ - Reveal the Secrets of Options Trading !

If You are looking for free Options Trading Resources adn tips, this site is for you.

Present to you, TraderWork.com http://www.traderwork.com/.

I would love to share more information about options trading, tips, articles as well as my trading journal.

It is a wordpress theme with 3 column, 2 sidebar at the right with easier browsing other information I would to promote.

You can easily find the recent post, category and tag cloud at the right, or simply using the search box.
If you love articles, simply click on the article category, and my articles under Paul's article category.

Pages are all on top, just below the blog title, I have optimized it so user can find more useful information there.

Trading is an art, as well as building a website. I hope you like the new appearance.

Free free to stop by and give me some comments, both positive and negative, I welcome that!

http://www.traderwork.com/ - Reveal the Secrets of Options Trading !

Investing in bank stocks

by A.W. Berry

In the United States, during the 1990's several federally implemented acts contributed to banking deregulation that had begun the previous decade. These Acts essentially gave banks the ability to operate with more freedom and with greater commercial horizons. The new laws allowed banks to operate more freely from state to state and to engage in other banking functions. The result became banks that could provide a multitude of services.

Key U.S. Banking Institutions:

A few major U.S. banks are listed below for illustrative purposes. These are just a few of many U.S. banks, several of which play important roles in various aspects of economics and banking services.

Bank of America (BAC): Bank of America is a very large commercial bank that deals with day to day bank services on a world-wide scale across the United States. This company is a large capitalization bank with share value of 223 Billion dollars and offers a wide array of consumer and commercial banking products. 

Meryl Lynch (MER): Meryl Lynch is another large bank that operates primarily in the investment banking sector of the U.S. economy and globally. This bank has a market capitalization of near 61.5 Billion dollars, and its major products and services include brokerage, institutional investing, and financial advising services along with several related banking products and services. 

Countrywide Financial Corporation (CFC): Countrywide Financial is yet another very large bank that deals primarily with mortgage lending within the United States. Its market capitalization is near 11 Billion dollars and in 2007 its share prices fell dramatically due to financial turbulence caused by factors relating to a weak housing market.

Benefits of Investing in Banking Stocks:

Banking stocks are a unique to the type of services and products they offer. While the stocks may fluctuate significantly in value over the short run, many large and stable banks offer the potential to grow steadily over longer term horizons. A few of the functions that can lead to a banks asset and profit growth are listed below.

*Mergers and Acquisitions: Banks that facilitate, finance and engage in a high volume of corporate mergers and acquisitions have the potential to yield an increase in profit margin due to the increase in return on assets associated with these banking activities.

*Initial Public Offerings: When companies increase in size or become public, they often seek additional financing for expanded operations and project implementation. Banks that facilitate these activities well can benefit from them.

*Credit Services: Banks that engage in credit services have the potential to earn substantial profits dependent on the creditworthiness of their clients and interest rates they are able to charge.

Risks of Investing in Banking Stocks:

*Sector Downturns: In the case of the aforementioned banks, an economic downturn in any one of the markets these banks deal in could cause a lot of volatility in the share prices of those companies. As we have seen, the downturn in the United States housing market led to stock volatility in shares of Countrywide Financial Corporation.

*Economic adversity: If an economy turns sour, the banks may be the first to feel it as consumers, corporations and institutions run to banks to liquefy their assets, default on loans and redeem their funds. These factors and changes in currency valuation, federal banking policy and profitability can be another risk of investing an banking stocks.

Key Metrics of Banking Institutions:

Since there are many types of banks engaging in a variety of services choosing the right financial metrics to assess these companies can be tricky. Nevertheless, the two following measurements indicate a banks essential capital and operational stability.

*Capital Reserve: The amount of unused liquid assets a bank maintains on its balance sheet is an indicator of solvency. Capital reserve amounts in excess of 10% are considered sufficient by U.S. regulatory agencies. An example formula for assessing capital reserve is the capital adequacy ratio (CAR) which divides capital by assets such as loans which are weighted for risk.

*Daily Value at Risk (VAR): A VAR calculation can be used to determine the risk level of its investments and/or banking products using a multiplier for precaution. An example of this calculation takes the potential dollar value loss within a specific time period using the worst 10% of investment assets multiplied by 4. If over 365 days, a bank's worst 10% of loans cost them $20,000.00. Multiplied by four, and divided by 365, their daily value at risk would be $80,000.00//365 or $219.18 of risk per day or $80,000.00/year. Naturally, the higher this value is in comparison to other banks, the greater the measured risk of the banks investments.

Learn more about this author, A.W. Berry.

Investing in bank stocks

How to Invest During a Recession by Jaime Reina

America is spiraling downward into a recession. Some say we are in the recession now, but that is a matter of opinion really. So what are we supposed to do during this economic downturn. Many of us invest for a living and need to find good opportunities for investing to continue making an income. Luckily, in every situation, there is always a method of investing that is both safe and profitable. It just so happens to be in my area of expertize, penny stocks.

Why penny stocks? You see, during this recession, you are going to see tons of really big companies do really bad. The little companies on the other hand are still under the radar and will not suffer as badly because of our economic situation. In fact, many of them will gain a ton of momentum because of it! Because of my involvement with penny stocks, I have been able to keep investing with little worry of failure. You will not see me turning in dozens of applications during this recession.

So how do I do it? There a couple little tricks I use to find penny stocks that are still safe investments. The first of which is trend investing. I simply look at a stock prices history and identify a trend. A trend is any repeating pattern in the stock price that you can use to predict the price's future. If the trend is unaffected by the recent stock market problems, it is a safe investment. It is just a little method I have developed recently and it has been working wonders!

The second thing I look at is actual trade volume. If a stock maintains it's trade volume, even through all of this mess, it will make a good investment. So you see, you can still invest during a recession. You just have to change it up a little.

It is during times like this that resourceful people who take the time to adapt to there situation make the really big bucks that can be made in investing. Sure, anyone can make a few bucks when times are good, but now is when we will see who is going to be the next big investor that everyone looks up to!

If you need more help or want more advice, you can find one of my favorite tools I use all the time to invest in penny stocks here: Doubling Stocks. I use this tool in just about every investment I make and highly recommend it. Thank you for reading and good luck investing!

for more information visit to:

http://www.squidoo.com/doublingstock

How to Invest During a Recession by Jaime Reina

Trading Rule Part 2 - Set the Difference Between Novice and Professional Trader

From the previous article, I mentioned 4 trading rules, no 1 – Always do market research, no 2 – Limit your trading size, no 3 – Give your trade a reason, no 4 – Set exit level.

Please refer to here to find out more.  

In part 2, I would like to share certain rules that I follow after I have entered the trade.

Rule 5 - Never average out a losing position

If you are having a losing position, try to minimize the loss by cutting the number of position, never add on to it so that you average out each options price. Many people think that they can salvage the trade by adding on to average out each unit price, this is self deceiving, and you might end up doubling your loss easily. Do not hold on to the losing position, you can either cut the position size or accept the failure, move on to another trade quickly.

Rule 6 - Always update yourself with the Economy Calendar

Financial market is always influenced by the economic event, for example, jobless claim, FED meeting, oil inventory, housing start, and etc. These are the regular report that will affect the overall financial market, therefore affects your decision of when to enter and exit the trade as well.

Rule 7 – Always updates yourself with the Stock News

After checking the broad economy view, now zoom into your stock news. You need to understand how the industry and the sector are performing at this moment. After that find out the latest news of the particular stock you trade, in order to understand if it is the best or worst performer in this sector. Keep yourself update with the company news, certain decision from the CEO or board of director definitely will affect the stock performance. 

Rule 8 – Always do analysis after market close

In previous article, I mentioned that we always need to do market research before market open. Now I would like to stress the importance of your stock analysis after market close. The market determine its price only when it close, this is the price that every buyer and seller agree after the war of tug. I usually like to use candlestick chart pattern to confirm if tomorrow I would enter the trade or exit the trade, because you only see the chart pattern after the market close. For example, how can you confirm that today is going to form a bullish engulfing pattern? You know it only when the stock rise up and exceed the open price of yesterday session until the end of the day. Therefore, you can have a better gauge after market close.

For part 3, please find out from TraderWork.com. Always trade with your passion! 

Trading Rule Part 2 - Set the Difference Between Novice and Professional Trader

Trading Rule Part 1- set the difference between novice and professional trader by Paul Liew

If you ask me what is the major difference between a novice and a professional trader, the difference is whether he or she set the trading rules and follow the rules. There are thousands set of trading rules that you can create or follow, what I recommend is that you do not need to create a certain of trading rules, you can just follow them which came from the famous investor and traders.

One of the famous investor that I admire and respect a lot is Warren Buffet. In his world, rules are more important than anything. His famous quote is as follow: Rule 1: never lose money Rule 2: never forget rule no 1 Funny enough? Many people understand the importance of setting rules but never learn to follow the rules.

For part 1, I would like to share the rules that I follow before I enter the market.

Rule 1 - Always do market research before market open: 
Open your CNBC or any finance website to get the latest update, understand what's happening in the market right now. Either is it oil price drop, or some where having a war, focus on news that may be making any impact to the US market and the stock you are trading. After learning the news, try to figure out the market sentiment, for example, is oil inventory going lower a good thing to the market? Certainly not! With the latest news in hand, it will help you to make a better decision when entering the trade.

Rule 2 - Limit your trading size: 
Do not over trade, always make sure you have enough money to play for the next game. Thumb of rule is always using 1/20 of your total money for each trade. If you have $5000, each trade is $250, in that case you can have 20 games to play.

Rule 3 - Give your trade a reason: 
Before entering the position, make a note and jot down what makes you buy or sell certain options, as well as what strategy you use, and why? Put all this down in your trading journal, so that you can revise it back. If you end up a loss, make sure you understand where the problem is. If you earn a profit, remember what you did right.

Rule 4 - Set exit level: 
When you see a potential trade, holds your trigger, make sure you set your exit level before clicking the button. Many people are good traders, they know when to enter the trade, but do not know when to get out. You need to set two exits, one for your stop loss, one for your profit limit. Especially for stop loss, set at the level that you are comfortable with your risk level, from the technical point of view, you can set your stop loss at certain support level, when the stock break through the next support level, cut the loss and run.

For part 2, please find out from Options Trading Academy. Always trade with your passion!

About the Author

I am an options trader and internet marketer, I have experienced the up and down through this valuable journey. Now I am here to share my humble experience so that you can be benefited from it. You can find out more free resources from http://optionstradingacademy.blogspot.com/ andhttp://internetmarketerjournal.blogspot.com/.

Find out how you can create wealth in Forex by 10 mins a Day!


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Trading Rule Part 1- set the difference between novice and professional trader by Paul Liew

Trading News: Is It Worth It?

Whether or not trading news is profitable, only time will tell for each trader, but one clear advice from this is NOT to hold a stock before earnings. By holding through the earnings, it’s a guessing game. If he still likes the stock, by it back a few days after the earnings. Who knows it might have been oversold and now it’s a “bargain.” Of course there will be regrets if the stock does move in the desired direction.

Every morning just before the opening bell ring, every trader gets their buy or sell button ready to make that first pretty penny before someone else gets there. The day is especially important because good economic news had just been released so everyone is anticipating a big profit day. This is a typical scenario in a day where either corporate or economic news comes out. Volume rush higher and higher to catch up with the news development. But is it worth (read profitable) for traders?

There are many books, trading rooms and advisory services teaching traders on how to trade the news but the truth is the vast majority of people lose when they trade news, particularly against the market makers, specialists and other traders who have been around longer than they have. Is it because of faulty technique? Is it the fundamental news, analysts getting their numbers wrong? Or it's the traders themselves that are causing these losses?

One thing that has to be noted is that during the news announcements, there are lots of excitement, anticipation and anxiety. So this atmosphere creates an emotional factor to trading. For those cannot control themselves, they let their emotions take over. These can be harmful to their money without realizing what's really happening. Others come in without any hard concrete tactics or safety nets (i.e. stop losses). While there are other who come in with a gambling mentality for next adrenalin rush.

Trading news has a 50% chance of winning, leaving the probability of a successful outcome is unlikely. But also the fact that with so much volatility, there isn't really a sense of clear momentum swinging one way or the other.

Most don't understand the mechanics or psychology at work in the markets. When the good news is made, the stock goes down. When it's bad, the stock moves up. Taking the news at face value is obviously a losing proposition. No one knows when the price of stock has already absorbed the news and was now being unloaded by the pros. Even the positive surprise or negative surprise can be a real surprise when 30 minutes after opening, the stock starts going the other direction. Also, no one can be sure if the news has been leaked to cause the prices to do the unexpected and the insiders are now going the opposite direction.

If anyone who has traded currencies, trading news can be a handicap, especially with a broker who lock up their clients' orders during news break. This is common practice (please reread the disclaimer as well as the agreement document form when signing up a real account. It will be very enlightening).

There are professionals who do well because they have clearly defined their plan, such as when to get in, when to get out, and when not to get in and when not to get out. They may have taken years to finally master these types of setups in this hectic market action.

Not surprisingly, news carries different meanings to different traders. The numbers in the end don't really mean much because consensus is made of a group of high-profile analysts but they don't necessary represent the opinions of thousands of traders and institutions who put their money on the line. They vote with their money to give their opinion of what the piece of news meant to them. Some find it's a bargain and buy more, while others find it's too expensive so they sell. How does anyone know what ‘expensive' or ‘cheap' is?

Whether or not trading news is profitable, only time will tell for each trader, but one clear advice from this is NOT to hold a stock before earnings. By holding through the earnings, it's a guessing game. If he still likes the stock, by it back a few days after the earnings. Who knows it might have been oversold and now it's a "bargain." Of course there will be regrets if the stock does move in the desired direction. It's down to 50% chance: way or the other. But who want to gamble their hard earned money away so easily after sweating so much to get it?

About the AuthorLarry Swing CEO & Head Swing Trader http://www.mrswing.com theboss@mrswing.com +1 (281) 968-2718 Yahoo & Skype ID: larry_swing

Trading News: Is It Worth It?

Day Trading Stock Online: Basic Techniques For Beginners

Day trading stock online is real seat of the pants stuff for all participants, but none more so than for the novice trader. The casualty rate is high enough amongst experienced professionals, but for the raw beginner it can be an absolute minefield if basic day trading principals arent rigorously adhered to.

Just because youve made a few successful mid to long term trades in your time doesnt ensure that youll be the next talk of Wall Street when you try your hand at day trading stock online. Far from it!

Not surprisingly, day trading irrespective of the asset class involved has been likened to extreme sports, with the only difference being that the thrills and spills are confined to the minute by minute fluctuations of your trading account. Perhaps the only saving grace for those who fail to plan their trades in advance is the fact that no positions are held open, i.e. carried forward, to the next day. If nothing else, this limitation helps prevent further erosion of capital when a trade turns sour.

So what motivates investors to become involved in day trading stock online?

A primary motivation of day trading stock online is understandably the lure of quick money. Another motivating factor is that it isnt necessarily any riskier than other forms of trading activity. However, unless thoroughly tested and proven trading strategies are put in place with each trade, the risk of incurring substantial losses within a frighteningly short period of time is all too real.

Basic Strategies:

There are six basic strategies day traders use to make a profit: Spread covering Technical trading Scalping Range trading Playing news events Trend following.

Spread covering refers to buying at the BID price and then selling at the ASK price. The spread is the difference between these two prices.

Technical trading is simply the action undertaken by a technical analyst. He or she evaluates securities by relying on the assumption that market data, such as price charts, volume, and open interest, can help predict future, usually short term, market trends. Unlike fundamental analysis, the intrinsic value of the security is not considered. Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables. Many technical analysts are also market timers, who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock.

Scalping refers to an extremely quick trade for a small profit. For example, if you bought 20,000 shares in XXX Inc. @ $1 per share, i.e. $20,000 invested, then sold them 45 minutes later for $1.03 per share, $20,600 gross return, you would end up pocketing a cool $600 less brokerage. NB: Remember that when you are day trading stock online, the round turn brokerage fees are minimal.

Range trading is a little harder and inherently more risky, but the returns can be proportionately greater, too! If you are canny enough to be able to pick the intra day market swings and either BUY at or near a low, then SELL at or near a high you can often make substantial profits using this method. But you do have to be wary, because if you buy into what you think is an intra day low point, only to discover that the market sentiment has changed and that a severe sell off is in progress, you could get badly burnt!

Playing news is the realm of the adrenaline seeking day trader. The technique refers to buying a stock which has just announced, for example, a short sell on bad news, the contrarian traders love this sort of play as they will be standing in line to BUY the stock at the end of a short, sharp sell off in the belief that most if not all the bad news is already factored into the market and therefore there wont be any further downward pressure. The sheer volatility offered by unexpected news announcements can provide the diligent day trader with huge potential for quick profits, or losses if they call the market incorrectly.

Trend following assumes that if a stock have been rising steadily it will continue to rise. Admittedly, this technique is better suited to position traders, i.e. where stocks are held for a number of days, weeks or even months, but in strong bull markets some stocks will rise steadily for days on end, making the intra day trend follower a very happy chappy.

Live Coaching

When trading on an intra day basis you need to take into account many factors including: time of day; liquidity; pending announcements such as corporate profit reports, interest rate movements, currency fluctuations; macro and micro trends; market sentiment, in fact, almost anything at all that may have an impact on your trading results.

So, if you want to radically improve your day trading stock online skills, live coaching or even online mentoring with a recognized industry professional can be worth a hundred times the price paid. Coaching can take place in different forms including: in person coaching; online coaching session; or over the phone.

If youre hell bent on being successful, but youre still new to the game, youll be tossed to the lions unless youve acquired the necessary physical and mental skills to survive and profit from day trading stock online. Do yourself, your pride, your career and your bank manager a big favor by making the commitment to learn as much as humanly possible about this fascinating and potentially very rewarding form of investing, and secure the services of a live coach to see over your trading.

Discover How Nicholas Darvas, A 25 Year Old Ballroom Dancer,Turned $25,000 into $2.25 million... A Remarkable Trader, ARemarkable Amount Of Money And Remarkably Easy. Click HereTo Discover Nicholas Darvas` Secretshttp://www.nicolasdarvas.org/
About the AuthorREAD my articles; you'll FIND the most powerful insider trading plans & tips ever put together. Searching for these on your own, is a needle in a haystack (hard to find). I trade everyday & my progressive efforts found the perfect trading card, a set system & plans that really work. These online trading systems are unbelievably powerful, lucrative, reliable, yet simple to use. Until recently, I've kept this formula to myself. NOW, I reveal all.

Day Trading Stock Online: Basic Techniques For Beginners

8 Tried and True Commodity Stock Trading Application Rules That Will Explode Your Mind

Some commodity Stock Trading Application rules are made to be broken, but when you`re trading, there are some rules are meant to be followed. Here some of the Stock Trading Application rules that I consider the most important principles of trading.

I suggest that you make a copy of them and place them in your trading diary or tape them to your desk, so that you`ll always remember to follow them.

Commodity Stock Trading Application No. 1 ~ Cut Your Losses

Never let your losses get out of hand. It is one of the most important things that you can do to ensure you are successful. Losses can devastate you emotionally and will diminish your trading capital, violating your primary aim in trading – to preserve your capital. If you could get successful traders to credit their success to one thing, many would select this rule.

Commodity Stock Trading Application No. 2 ~ Let Your Profits Run

Hand in hand with the first rule is the second ~ let your profits run. Your trading plan will probably produce profitable trades less than half of the time. Therefore, you need to make sure that when you do achieve a profit, you get the most out of the move in the stock. Some up trends take time to develop; and you must wait until you see the high in the stock achieved and then the reverse in direction before you consider closing the position. Until you see the reverse, you won`t know if the stock is going to go any higher. Remember, your few profits must outweigh many losses.

Commodity Stock Trading Application No. 3 ~ Follow the Trend

In trading, trends are the only friends you have. Always trade with the trend! Never attempt to identify the bottom in the stock or time your entry using that approach. If you do, you can be run over as the stock continues on its way down. There is often great force and momentum at work when a stock is trending in either direction, particularly when the trend is down. Don`t try to fight it. Why buy something that is heading in the wrong direction on the hope that it will turn around and head back up past your entry level?

Commodity Stock Trading Application No. 4 ~ Don`t Overtrade

Don`t trade for the sake of trading. Never force the action. If you are not comfortable with any of your potential trades then don`t open a position. It is a mature decision to do this when conditions aren`t quite right, and you won`t be trading for the wrong reasons.

Commodity Stock Trading Application No. 5 ~ Never Act on a Tip

Who hasn`t reacted to a tip they heard from somebody about a stock that is apparently going to the moon and never coming back? Never act on a tip; tips are rarely good. The worst part of tips is that you will probably stick with the trade even when the security starts to head against you. You will be more inclined to break the commodity Stock Trading Application rules and not cut your loss because of the ‘reliable` information you have heard about the stock`s future. Instead of trading on tips, have confidence in your own plan.

Commodity Stock Trading Application No. 6 ~ Always Trade Liquid Stocks

It is a horrible feeling of helplessness to be stuck with a stock that you need to exit from because there aren`t enough buyers in the market. Liquidity is the ability to trade in a security without adversely affecting its market price. Always demand liquidity in your securities before you consider trading them, and you`ll never be stuck with a stock.

Commodity Stock Trading Application No. 7 ~ Keep Positions Small

When trading, you need to understand and manage risk to achieve long term success. If you want to completely avoid risk, then don`t commit any money to any financial market. If you are prepared to take some risk, then managing and controlling that risk will be crucial. One of the best ways to do this is to ensure you have, and use, a good position sizing model. This model will ensure that you don`t commit too much of your trading capital to a single position, allowing you to spread your risk across several positions.

Commodity Stock Trading Application No. 8 ~ Don`t Buy Something Because it Looks Cheap

If a stock is cheap, there is probably a very good reason for it. Only consider stocks that are trending up. There is no such thing as a stock that might start to trend up any day. Even if a stock looks cheap, who is to say that it will not get cheaper? It may never increase in price again.

With these commodity Stock Trading Application rules, a solid trading system, and good money management, you can become a successful trader. Remember these commodity Stock Trading Application rules and use them. Particularly when you don`t want too.

About the Author
David Jenyns is recognized as the leading expert when it comes to MetaStock and designing profitable trading systems.
His MetaStock website offers a huge free collection of tradingrelated tips and tricks. Gain free access now.Click Here ==> http://www.meta-formula.com/subscribe

8 Tried and True Commodity Stock Trading Application Rules That Will Explode Your Mind

How To Trade In Stock Markets?

This article is for the newcomers to the stock market trading who have a great desires to learn the charts and the skill of trading. So, it'll be of no help for those people who make the trading decisions based on some fundamentals.


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

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

Let us start trading lesson with the Basics of Trends:

TRENDS

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

A) SECULAR TRENDS

B) PRIMARY TREND

C) INTERMEDIATE TREND

D) SHORT TERM TRENDS

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

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

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

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

Few rules:

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

2) substantive increase in volume during the price decline.

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

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

About the Author
Lavanay is a blogger/writer who writes on Stock Markets India and Stock Recommendations India....

How To Trade In Stock Markets?

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How Do Interest Rates Affect Investments?

“Life is full of uncertainties. Future investment earnings and interest and inflation rates are not known to anybody. However, I can guarantee you one thing.. those who put an investment program in place will have a lot more money when they come to retire than those who never get around to it.” - Noel Whittaker

Interest rates are not an exciting field of study. Regardless of their entertainment value, it is in your own best interest to understand what interest rates are and how they affect your investments. The term interest rate is defined as the rate that is paid on borrowed money. This rate is applied to the principle of a loan and is usually calculated annually. If the interest rate on your $1000 dollar loan is 10%, at the end of year one the bank will charge you $100 dollars. Interest rates fluctuate all the time therefore they are constantly affecting how companies are growing and there by influence the price of stocks.

Changes in interest rates influence the value of a companies stocks and shares. This is because the risk of a particular investment increases as interest rates increase. As risk increases the cost of stocks fall, and investors lose money. However, the converse is actually beneficial. If the U.S. Reserve decides that the interest rate will be reduced, then stock prices increase, and an investor makes more money.

An increase in interest rates will increase the cost of capital. A company, under a higher interest rate, will have to work harder to create increased returns. If a company fails to generate more return, the interest rate will take a chunk out of their profits. As interest rates increase, profits decrease and this causes the stock value to become reduced and the investor loses money. It is important to keep in mind that companies also have debts. An increase in an interest rate means their monthly obligations go up in price. If they can not afford the increase, their viability is in danger.

An increase in interest rates is usually a good indicator of a slowing economy. The higher interest rate deters people from purchasing things and it stops companies from investing in stock options that will help them grow. This causes sales, profits, and stock prices to fall. The role of interest rates in investing is complicated and can be hard to understand. In general, increasing interest rates are bad for investors because it is bad for the companies they are investing in. Educating yourself about interest rates is important because if you can anticipate a rise in the interest rate you can adjust your financial plan and investment portfolio to compensate for these increased rates.

Visit the Global Investment Institute and signup for our free Investing For Beginner E-Course at http://www.Global-Investment-Institute.com

Investment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.
Article Source: http://EzineArticles.com/?expert=Mika_Hamilton

How Do Interest Rates Affect Investments?

What is Stock Investment? By Micheal James

Knowledge of what is a stock market and why you should invest in it is essential for every budding entrepreneur in this area. But before that, one must understand the meaning of investment and its importance in the context of stock market.

What is investment?

Investment, simply put, is a process of purchasing assets in order to make profits. A profit is usually a reasonable and predictable amount of income over investment. It is unlike gambling, where you can make or lose huge amounts in matter of moments. The income from legitimate investment may come in forms of dividends, interest or rentals and appreciations over the long term.

Why should you invest?

Money does not grow by itself unless it is invested. Money should not just grow but it should also grow sufficiently to annul the effects of rising inflation. The rate of returns on your investments should be greater than the rate of rise in inflation so that you are left with sufficient amount to meet your needs over a period of time.

When you invest your money in stocks, your objective should be to create wealth not only for your daily needs, but also for retirement, marriage, education, vacations, entertainment, medical expenses, and purchasing real estate etc.

You may also aim at improving your standard of living or leave your money to your next generation. You may also want a little extra money to have some fun in your life that you have been planning.

Above all, making money by itself is an exciting morale booster. It increases self-confidence, self esteem and puts springs in your feet. Money is considered next to God, if there is one.

What is the optimum time to invest in stock market?

It is always better to try creating multiple streams of income including from stock markets. If you are already employed, start investing in stocks as a part time job.

Since it takes sufficient time and experience to master the intricacies of every trade, it is advisable to start investing in stocks as early as you become legal and get your social security and IRS identification numbers. An early bird is always a winner.

Start small and be cautious. Take your time to learn the fundamentals of stock investing. Another important reason why you should invest early is that your money will have sufficient time to grow.

There are several stock investment plans which are comparatively risk free and generate geometrical returns on your investment without creating needless tensions that are invariably associated with most businesses.

Money grows fast with compounding effect. Compounding, according to Einstein, is the eighth wonder of the world, but it requires time to show its effects. The more time it is given, the more money it returns on investment. So if you start investing in stock market as soon as you become a major, you give your investment the maximum possible time to grow.

Invest regularly

One reason why you should start investing early in stocks is that you can invest regularly over a long span of time. The concept of regularity is inherently related to a longer span of time. You cannot be a regular investor for just six months and expect any appreciable returns. Regularity can fructify only if it is practiced over a sufficiently long span of time-for decades. It is like physical exercise. You cannot build (financial) muscle just in a few days.

Consult your stock broker about which stock investment plan suits your individual circumstances. Set apart some amount-even a small amount-- from your monthly income and authorize your broker to automatically draw that amount from your bank account for investment in your decided plan. Just don't forget to check the results of your investment at least for an appreciable time. The returns may appear measly at the earlier stage, but you will be blown off if you check them after some time.

The golden rule, therefore, is that you should invest regularly over a long period of time. There are several stock investment plans such as Individual Retirement Account-IRA-- Roth IRA, Education Saving Account-ESA, 401(K), 403(b) etc.

Knowledge is power

Study the various stock investment options in deep detail. Consult your broker. Read books and magazines, both online and offline, so that you can take fool proof and self-informed decisions. As you study and act more, you will evolve an impeccable intuition about the areas and suitable time for investment.

Pricing and Features for Sogotrade Investment Packages online investment Article Source: http://EzineArticles.com/?expert=Micheal_James

What is Stock Investment? By Micheal James

Stock Trading News: Commodities Focus

Stock Trading News: Commodities Focus

How to Choose Stock Trading Software

Investing money in the stock market can be very profitable if you know what you're doing.

But what if you don't know what you're doing? What if you don't know how to trade on the stock market or where to begin?

If you want to invest money in the stock market, but you don't know how to go about it you do have options.

Many people think that to make money on the stock market you have to have intricate knowledge of how the system works and how to make wise investment decisions.

But you don't have to do it all yourself.

You can employ companies, both online and off line to do your trading for you. You just allow them to invest the money for you and set them limits of how much you want to buy stock for and when to sell it.

But a more popular way of trading on the stock market these days, is by using stock trading software.

Stock trading software helps investors to make smarter investment decisions without having to do all the heavy and time consuming analysis of the stock market.

It provides all the data for you so that you can make fast, and easier, decisions and the software is good for short and long term investors as it allows you to make all the decisions on investments yourself.

But there are so many different types of stock trading software and robots available, that it can be hard to choose which one will be right for you. So you need to decide which is the most suitable for you by how comfortable you are using it, because if you feel comfortable with it, you feel more confident.

Some software let you trial them for a month or two first while others contain really good in-depth tutorials to make sure you have a complete understanding of how it works.

Software that has been established longer will have a better understanding of market trends, and if it's been around for a while then it must be good.

Multifunctional software gives you more options such as real-time stock market quotes whereas more one-dimensional software gives you less options. But there is no get-rich-quick software, so don't believe any hype you may read.

If you try a piece of stock trading software or robot and find that you don't like it, then don't stay with it. Find something that suits you and your needs.

Stock trading software is a really good tool and can be very useful, but ultimately, remember that you are the one responsible for the stock trading choices you make. Using software won't make the decisions for you, but it will provide you with all the tools you need so that you can make the right decisions.

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How to Choose Stock Trading Software