How To Buy Good Stocks

Posted by on October 7, 2009 · Leave a Comment 

Although it may seem obvious to most stock market swing traders there are a number of simple rules that you can follow which will ensure that you have more success when buying stocks:

In the USA stock market there are 3 major indexes which are each made up of a basket of stocks, they are the S and P 500 (also known as the S&P500), the DOW 30 and the Nadaq 100. These stock indexes generally only contain major blue chip stocks, as long as you buy from these 3 groups you will at least know that you are getting a well known solid stock.

For example the DOW30 contains major industrials and large multinational stocks such as Home Depot (HD) and Johnson and Johnson (JNJ) whereas the Nasdaq 100 mainly contains techical companies such as Apple (AAPL) and Miscrosoft (MSFT).

Always buy a stock that is liquid, this means that it is a highly traded stock, this will enable you to easily buy and sell at the price you want without having a delay. You will also get a lower spread, thats the difference between the BID and ASK price of the stock. For a stock to be considered very liquid it should trade at least 500,000 shares per day, ideally even more.

It is best to avoid stocks that are bellow as this usually means the company is in trouble, although with the bear market of 2008 there have been a lot of good stocks at bargin prices between and . Avoid buying a stock that is below at anytime.

Another consideration is options, does the stock has options?, this will be important if you want to trade options around your stock, such as a covered call, or you may want to buy a PUT option inorder to protect your stock.

Be very cautious about buying a stock just before it’s earnings are released, stocks often drop significantly if they come out with a poor report. Earnings are released 4 times a year with one of them being the annual report.

If you are going to trade options make sure that you learn how to trade by getting some good education. There are many swing trading strategies that work well with stocks in todays volatile markets.

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Forex Trading Softwares: How to Use It to Your Advantage

Posted by on October 3, 2009 · Leave a Comment 

As the internet grows we are seeing more people learning about trading currencies on the Forex market platform. Forex trading has become very popular and people realize it is a great way to invest money. Many people think that it is too difficult to learn about currency trading, but the truth is if you just take a couple of hours to do some research on the internet, you can educate yourself as there is literally a goldmine of information available online concerning Forex trading. If you would like to get in on the action, you should take a look at Forex trading software that is available to purchase as the trading is virtually done for you.

Forex trading software is the technological breakthrough which made Forex trading available to individual traders. It is therefore imperative to get one otherwise it is virtually impossible to engage in the Forex trading market without it. With the availability of Forex trading software, online trading is now available to anyone interested in a new income generating activity. The Forex market is currently the biggest market in the world and provides a great opportunity to earn extra income.

Forex trading software can drastically increase your chances of success on currency trading. It is typically available on a trial basis which gives you a chance to determine if it works for you and help you profit. The software can determine the currency rates each day. There are also Forex softwares that assist the trader by analyzing data and predicting market behaviors. Some Forex softwares even have an integrated graph utilization feature which shows the rising and falling of currencies. Forex trading softwares enable traders to have an overview of the entire Forex market conditions at once. It helps in increasing Forex sales volumes in the market. The software is considered as two-in-one because it includes both the trading software and charting software. Huge profits are not impossible to gain if the traders are able to interpret these correctly.

If you were to trade manually you would have to invest a lot of time analyzing reports and graphs but with some knowledge of where the particular currency is going, you can let the trades run or you are able to stop them when your position makes a reverse with the software.

Forex trading softwares provide traders the ability to conduct business and perform transactions such as withdrawing and depositing to your account at any time of day from anywhere in the world.  Having such an account is a win-win situation for you because even though you are not actively trading, your money doesn’t become idle because it is earning interest.

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Stock Trading Technical Analysis Secrets

Posted by on October 1, 2009 · 1 Comment 

Technical analysis of the stock market, or any other market such as Forex, futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.

You only have to think back to recent stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.

Just by reading the balance sheet and other quaterly reports they release gives you a very poor insight into the real health of the company. Whereas the technical charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.

So what are the secrets to technical analysis?, I’m about to tell you, here are my golden rules:

* Only use 3-5 simple technical analysis indicators

* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective

* After selecting your indicators and parameter settings don’t mess with them.

The real secret to technical analysis is to get VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.

The fact is that in any market, for each bar period, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying much the same information and so are redundant.

For the record my set of indicators are:

* 4 Simple Moving Averages

* Bollinger Bands

* MACD

* Stochastics

But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:

Top Dog Trading Review

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Forex IvyBot System – How Effective it Is?

Posted by on September 24, 2009 · 2 Comments 

Ivybot has caused a ripple in the forex world. There are many people who say that it is possible to make money with trading robots. The problem is that it is very hard to find a forex trading robot which performs well. Today’s market is overcrowded with low quality forex trading robots and it is very difficult to choose a really working one. The number of online scams is increasing nowadays and you should be careful not to fall into these swindles. A new robot – Ivybot is the hottest theme of discussion. This forex robot has recently made its entry into the world of trading. Why Ivybot is considered so special among the forex robots? To be honest, this question was a headache for me. I searched through many sites regarding this product and came to know why people are so excited about this new robot.

How does it Work?

Guys from IvyLeague have released a new forex robot based on innovative algorithms called IvyBot which uses unique algorithms. I was overwhelmed in reading this aspect of the product because till now no other product has got this unique feature. This is the reason why the amount of successful trades made by IvyBot is so high. It will help to improve your business and take it into new heights. Some people even say that they hale quit they day job when they started to use the robot.

Unlike many other robots, IvyBot is updated every single week. IvyBot’s stuff regularly analyzes the market and updates the robot as soon as market conditions change. People responsible for market analysis know what they are doing, they have years of trading experience on their shoulders. This is the reason why the system is so effective. Thit is the reason why so many users left positive feedbacks about the robot. This is the reason why you might be the next successful trader who makes a living by using IvyBot. If you want to learn more about the robot, just visit the link below for more information.

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How to Select the best Forex Currency Pair?

Posted by on September 19, 2009 · Leave a Comment 

Do you know what is a currency pair? The currency pair got of two foreign exchange currencies involved in a trade. Some of the popular currency pairs are EUR/USD and USD/CAD. Now what is the best pair for currency trading? There are mainly 2 factors that you have to take into account when selecting the best foreign exchange pairs for forex trading. These factors are activity and the forex trading systems. Now let’s see the activity part.

Which are the Most Active Currency Pairs?
If you are new at forex the best ways to start foreign exchange trading is by picking up the most active currency pairs. Many experts will advocate you to do so due to a number of reasons. The 1st factor is that heavily traded currency pairs have high liquidity and this means that your stop losses will more often be met without slippage. Also, in case of foreign exchange pairs which are really active in the market, the costs are likely to be lower. While enormous number of traders are trading in the forex trading  market it creates a tighter spread, and there is also big war between foreign exchange brokers which will help to keep the fees lower.
So does this mean we only require to look into the most active foreign exchange market and pick the foreign exchange? Not really. If you are new to currency trading you may be surprised to learn that the most voleme forex floor is London, UK and not New York. But the most traded currency globally is of course US dollar. Now one might conclude that US Dollar, GBP (British Pound) pair is the most traded foreign exchange in the forex market. This is not true. Actually EUR/USD currency pair is the most traded currency pair. The next most active forex pair is USD/JPY and the 3rd is GBP/USD pair.

Best Currency Pairs for Your trading System
The key factor in selecting the currency pair is of course the activity level and your understanding about the financial conditions of a particular currency. Your forex trading system also could be a factor in selecting the foreign exchange pair. You might have the best Fx trading system, but if you pick the wrong currency pair you might end up with poor results.
For example if your trading system involves the use of automated forex robot, you will most likely find that the particular currency trading EA is set to work with a small number of forex currency pairs and that the most active currency pair may always gives you the best results. Example, you may know that FAP Turbo which the best selling forex robot currently in the market is set to trade Euro British pound and Euro Swiss Frabc currency pairs. In case of FAP turbo most users experienced that they are able to achieve better results with EUR/CHF pair though EUR/GBP more active pair in this situation. Though you can trade different currency pairs with a foex EA, a specific forex software is always tend to give better profits with its currency pair.
Hence in cases like this one should choose a forex currency pair which is suitable to your trading system even if the currency pair is not the best. There is a new forex software called Ivybot which provides you 4 different trading robot in which each one is created to perform well for a specific currency pair. You can checkout the Ivybot review here.

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Discover The Truth About Forex Fap Turbo…

Posted by on September 15, 2009 · Leave a Comment 

One of the most famous forex trading robots available on the market nowadays is called Fap Turbo. The robot is used to analyze forex market 24/7, find profitable trading opportunities for you and trade accordingly. To be short, Fap Turbo does all the work for you so that all forex traders, regardless of their trading experience can benefit form it. So how does FAP Turbo fare, does it work and can it actually perform so well as to make you rich?

I eventually caved in and decided to give this program an honest try after hearing about their money back policy. At the beginning I invested $550 and got almost $200 in profits in a week. To be honest, I was very surprised to see a 60% profit return in following weeks, so I continued to invest money money.

To be honest, Fap Turbo was not my first automated forex trading robot, however my previous attempts were unsuccessful.The reason why this robot is so effective is that it uses special algorithms which are responsible for such accurate trading predictions.

The system was created to make accurate trades only when there is a percentage that the trade will make money. FAP Turbo was designed in part as an answer for those systems and an alternative so that you can run the program without having to worry how it’s performing.

There are so many forex trading systems available today, however you risk to lose money while using them. As far as I can judge, you want to make money, not to lose them. Fap Turbo was created by very experienced traders who know what they are talking about, thus the robot is a good choice for all people trading on forex, regardless to their experience. If you are interested in it, visit the link below to learn more about this amazing forex trading system.

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How To Trade Options Correctly

Posted by on September 15, 2009 · Leave a Comment 

There is a lot of hype surrounding options trading, and for good reason, it’s a good way make a lot of money fast, or can be used to grow your capital consistently month after month.

There’s also a lot of hype about how complicated it is and why you need to spend thousands of dollars on options trading education before you get started. Needless to say this last statement usually comes from trading seminar companies trying to sell your their trading course on options.

Lets cover a few of the basics about options trading and set you straight about a few important points. Firstly yes it is true that you can make a lot of money trading options, but of course you can also lose money just as fast.

When trading stocks your leverage is 1:1, if you go on margin you can get get 1:2 leverage, but thats about it. With options it is not as straight forward to calculate the leverage but generally speaking you can get between 1:5 and 1:10 when you buy an option on a stock, or ETF.

So with 1:10 leverage, when the stock increases by 5% your option can increase by approx 50%, and this can happen in just a few days, this is why swing trading strategies using options on stocks is so popular.

However the downside is that the reverse can happen, if the stock drops by 5% your option can also drop by 50%, at which point you may want to close the trade and save some of your option value, it really depends on what your stop loss and risk management plan is.

What I’ve just described is called directional option trading where you are betting on the getting the direction of the stock movement correct, this is highly speculative. Options can also be used in option strategies which are much more non directional, such as covered call trades, credit spreads and Iron Condors. In these trades there is much lower dependance on getting the stock direction correct, but it still matters.

So should you trades options?, in my opinion you should not do directional option trades until you become very good at trading stocks. This is because you must be very precise with your entry and exit strategy and trading plan, and be very good at technical analysis.

Whereas if you want to do non directional option trades you don’t need to be such an experianced stock trader to be successful, but of course it does not hurt either.

Learning how to trade options is a very useful skill you have, but don’t rush into it and blow out your account. Make sure that you get a good options trading education before you start, and also make sure that you have a very solid stock trading education as well, such one from Top Dog Trading Review.

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