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Thursday, August 20, 2009

Stock Trading - How to Earn More Money

By Bob Jones

Very few investors are successful at stock trading. There are various factors that can influence the success or failure of a stock market investor. If you want to keep on making big money, there are several things that you can do. What are these things? Firstly, you have to know more about how to handle money. You will be making an investment of a certain amount for stock market trading, so you will must learn how to handle it properly.

Your trading money should be handled properly. All traders must have sound methods to guarantee success in stock trading. Without them, all your trading will be just fair to middling guesswork and you will more than likely endure large loses. For successful trading, you have to fix the account size and answer questions like: Is your trading system profitable? By how much? What is the risk for every share deal?

Will you make money or not? Your investment choice determines how long you can stay in the stock market to keep stock trading. Skilful investors don't really need huge investments because they are already equipped with enough knowledge on how to trade wisely. It should be possible to enter the stock market with only a limited amount of investment capital, but you need to control the risks involved in each deal.

Your system need to make sure that the risk is always lower than 3% for every trade you make. For example, if your account is $10,000, your loss per trade must lower than $300. However, if the account grows, you still need to maintain the risk at the same 3%. By sticking to this rule, you can minimize your loses per trade. The system you're using ought to be profitable, so you can not afford to lose much money on a trade. You must be able to work out the 'edge' or your system's profit potential and if you make the estimated amount over a set amount of time, then your system is successful.

Your trading system should include a target percentage profit, so that you always know when you should enter and when you should leave the market. Correct ordering is also vital, in order to earn more money. The trading system is indeed very important. Whenever you buy a certain stock, the risk should be low. Your account will continue to grow if you know when to enter and exit the market for a certain stock. You have to follow a trading plan with a strict set of trading strategies.

You have to make sure that you stick to your rules very strictly. It is important for you to try to uncover which stocks will move to your advantage. Every stock investor has a favourite game plan or trading strategy and you should have one too. When you're just starting out at stock trading, you should not be a rash investor. Take your time and familiarize yourself with the state of the current market. You need to consider everything, even the minutest details.

Get yourself a good broker and you will have a guide on how to go about the trading process. If you want to make more money in stocks trading, you should know how to manage money effectively. You must have a decent trading system and you should make use of the different kinds of orders. Stock trading is not that hard to understand but you should be willing to learn all the basics and some of the advanced methods, so that you can ensure continuous success. Take your time and analyze how the stock market is moving. Learn from the experts and their previous mistakes. That way, you can better ensure your success. - 23218

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Selecting A Forex Trading System

By Bart Icles

The foreign exchange market grows more and more attractive as each trading passes. Investors are not only attracted by the sizeable profits that it can offer, they also want to know if they can really cope with the changing trends of the market. To achieve a more manageable trading experience, investors - both beginners and seasoned traders alike - use forex trading systems. It can be tricky to select a forex trading system that would best suit your needs so it is important to take note of some basics.

In the forex world, investors cannot simply tell what lies ahead of them and those who do not do something about this end up losing money and they eventually give up on forex trading. However, a wise investor would not totally give up on trading if he or she loses money. Instead, a wise investor would just take a step back and review the situation at hand and then go back to trading again. In a situation such as this, it helps to have a forex trading system that can help you get off on the right foot. Doing so, you will be able to save some money for yourself and hopefully become the next most profitable forex trader.

Different kinds of forex trading systems are available and they are based on the different kinds of traders that exist in the forex world. There are three types of forex traders in the currency market. The short term trader, also known as the scalper, likes to open and close a trade in just a matter of minutes. This type of trader takes advantage of the smaller movements in forex rates and large amounts of leverage. The long term trader looks forward to holding positions for months and months on end, and sometimes even years by making decisions based on long-term factors. In between these two are the medium term traders who hold positions for a couple of days by taking advantage of technical situations that appear to be more opportunistic.

To determine which forex trading system would best work for you, it helps to know what kind of trader you would want to become. Short term traders can lose large amounts of capital in just a matter of minutes but they are also able to realize profits faster. Medium term traders can safely hold their positions but they can easily miss out on big opportunities. Long term investors reap in the largest amounts of profit but they also require large investments to cover losses brought about by unpredictable movements.

In choosing a forex trading system, choose one that can be adjusted to your trading personality and your needs. Do not choose a system based on the needs of other traders because this simply will not help. Choose one that will allow you to be more creative on your side of the market, one that can help you achieve your goals in your forex career. - 23218

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Start With a Practice Account (Part I)

By Ahmad Hassam

Almost every forex broker offers a free practice account to new clients. All you need to do is to sign up with any good forex broker. The best way for new traders to get a handle on what forex trading is all about is to open a practice account.

Practice accounts are funded with virtual money. So you are able to make trades with no real money at stake and gain experience in how margin trading works. Practice accounts give you the great chance to experience the forex market. You can see how the price changes at different times of the day.

You can trade your practice account with real market conditions without any fear of losing money. How various currency pairs may differ from each other? How the forex market reacts to new information when major news and economic data is released.

You will also learn using different market orders on your practice account. Imagine using your real money trying to figure out how different market orders work. You will learn on your practice account how to manage an open position? This will improve your understanding of how margin trading and leverage works. You can also start analyzing charts and following technical indicators on your practice account. Without any fear of losing your money, you can experiment with different trading strategies and see how they work out in the real market conditions.

You can test drive almost all the features and functionality of a brokers platform on your practice account. However, one thing you will never be able to simulate on your practice account is the emotions involved in trading. Controlling emotions is important in order to become a successful trader. Emotions will only come into play once you put your real money on the line. Practice accounts are a great way to experience real forex markets first hand.

You can use market orders like the limit orders or the one cancels the other orders. However, you can also trade the current price of the market using the click and deal feature of your brokers platform. There are many ways to pull the trigger in the forex market. Pulling the trigger means how to enter or exit a position.

Many traders like the idea of opening a position by trading at the market as opposed to leaving an order that may or may not get executed. Most prefer the certainty of knowing that they are in the market.

Just specify the amount that you want to trade. Click on the buy or sell button to execute the trade. The forex trading platform responds back within a second or two with a pop-up message either confirming or not confirming that the position was opened. Most forex brokers provide live streaming prices that you can deal on with a simple click of your computer mouse.

Attempts to trade at the market can sometimes fail in very fast moving markets. This happens when prices are adjusting quickly like after a data release or break of a key technical level or price point. - 23218

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Learn Forex Trading-Get Ahead Early

By Zita Von Snyder

Learn Forex Trading and stay ahead of the game, because in the world of cut-throat business, it pays to be prepared. When trading forex it pays to know who the players are, know the market conditions and the risks involved. Be aware of what you are looking at: the currency you are trading, the factors that affect the value of the currency you are trading, your trading strategy and current market trends. You can be ahead of the curve if you take the time to learn forex trading.

To learn forex trading, you should consider a forex trading course. There are a couple of benefits to learning forex trading with a forex course:

Why do you need a forex trading course? To really learn forex you need to understand charting, forex terminology, and some of the common processes pertaining to forex trading. A forex trading course will provide all of this and more so you can learn forex.

A good forex trading course not only provides the technical tools to learn forex but it will also teach you to control your emotions and stress when trading forex. Forex trading demands discipline, which you can get if you will invest in a good forex trading course to learn forex.

To learn forex trading you should invest in a forex trading course that includes the following:

*Basics- the course should define and discuss some of the basic terms used in forex trading. It should include such terms as margins, types of orders, how to leverage trades as well as a basic overview of charting and indicators.

*Analytics-Technical and fundamental analysis should be discussed along with the software and or tools you will need to use when trading forex. A good forex trading course will help you learn forex analysis which can keep your losses low and your profits high.

*Values-A very important attribute of trading is the ability to manage not only your money but the emotions or psychology of forex trading. To learn forex trading a trader should develop good values such as discipline, patience and commitment.

Along with this outline of a good forex trading course you should also be able to gain experience of real time trading. When choosing a forex trading course it should also include either a demo account, live conference rooms or boards as well as some one-on-one feedback and discussion forums. You can learn forex trading with the right forex trading course.

So getting ahead of the game if you want to learn forex can be achieved! Whether you decide to invest in a forex trading course or not, research and knowledge are what can give you the edge in the worlds largest financial market. Invest the time, learn the language, study both technical and fundamental analysis, manage both your emotions and your risks and you can learn forex trading. - 23218

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Stock Market Help: Playing Double Bottoms and Double Tops

By Sean Phelps

Stop losing to professional traders in the stock market when double tops and double bottoms form. Keep reading to discover how you can make thousands of dollars when double tops and double bottoms form.

Every rally in the stock market reaches a point where enough bulls look at it and say"I've made a lot of money, and I might make even more money, but Id rather take my profits off the table. Charts top out when enough bulls take their profits, while the money from new bulls is not enough to replace what was taken out.

Traders who just bought the stock are pissed off because they came to late. They are trapped, sometimes even in a Bearish Island Reversal. Should they just stay in the stock and hope it comes back or sell for a loss? Well, the stock will keep dropping until enough bulls decide that the stock has over extended itself on the downside. So as more and more of these bulls step in, the stock begins to rise and the rally continues. Now when the stock finally rises back up to its previous high, you can expect sell orders to hit the market as those who were trapped exit their positions.

There are always those traders who were trapped in the previous reversal and now they have sworn to their gods to jump out if the market would just give them another chance by rising to its old high.

A mirror image of this situation occurs in the stock market at market bottoms. The market falls to a new low at which enough bears start taking profits by covering shorts and the market rallies. Once that rally stalls out and prices start sinking again, all eyes are on the previous low-will it hold? If bears are stronger than bulls, prices will break below the first low, and the downtrend will continue. If bears are weaker than bulls, the decline will stop near the old low, creating a double bottom. Technical indicators help decipher which of the two is more likely to happen.

Any time you see a stock rise to its previous peak, the main question in your mind should be will it rise to a new high or form a double top and turn down. Technical indicators like volume, MACD, RSI, and stochastics can be a great help in answering this question.

If a stock climbs to its previous high, if the volume, MACD, and stochastics are dropping then a double top is likely to form.

Whenever a stock falls to its previous low, it is likely a double bottom will form if the volume and MACD start climbing. - 23218

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