Sunday, July 29, 2007

How Online Trading Education Can Make A Difference

How Online Trading Education Can Make A Difference By J. Foley


Each online trader will trade in their own style, depending on whether they are
going to be long-term, medium term, short-term or day traders. Making a
decision on the type of trader you want to be, however, means you need to be
aware of the trading education available to assist you.

Stock charts

Stock charts are used and analysed by an online trader in order to help him
determine when to buy and sell stock. The main types of stock charts in use
include:

- Line charts: which, as the name suggests, is a line on a chart connecting
stock price over a period of time (can be minutes, hours, days, weeks,
months, or even years).

- Bar charts: similar to line chart, however the information contained is the
open, high, low and close price of the stock for one particular day.

- Reference chart – charts the stocks price and trading volume and is used to
plot where the stock price may go to.

- Candlestick charts – the information contained in candlestick charts is the
same as that you can find in bar charts; however, the display format is slightly
different.

Technical indicators

As there name suggests, technical indicators are used by stock traders to
track a stock’s previous performance in the hope that it may forecast where
the stock is going to go. This is done by making use of the stock charts
previously mentioned, plus additional analytical indicators which might have a
part to play.

It should be noted that technical indicators can be very confusing if you are
new to this type of information analysis. However, basic use is made of a:
- Bollinger band: which was invented by John Bollinger and uses 3 band lines
to track stock price fluctuations: an upper, centre and lower. The centreline is

the moving average, while the upper and lower lines are twice the plus and
minus standard deviations, respectively.

- Moving average: is a stock price/time series technical indicator. These can
then be calculated over short, medium and long term periods, as the need
requires, to determine where the stock may go and whether you should be
looking to maintain a short, medium or longer term position.

- Candle stick trend reversal: using a candle stick chart, a candle stick trend
reversal technical indicator will use the information in the chart to determine
when to buy in and sell out of a stock.

Keep in mind that there are other types of technical indicators in use, but the
above are the primarily the types used by new online stock traders.

Analysing the information

Assuming you have correctly analysed the stock chart and technical indicator
data, you should then be able to chart a stock’s movements – thereby
hopefully ensuring that you remain one of the 20 percent who make a profit
from online trading from Day One.


Article Written By J. Foley

Want To Learn How To Trade Like A Pro

Friday, July 13, 2007

Investing In Stocks ?

investments & trading

Investing In Stocks ? By J. Foley

Stock investments are generally considered among the best ways of addressing inflation risk over the long term. Investments are the classic example of an undiversifiable risk because the stock market tends to have low returns just when the rest of the economy is also performing poorly. Stock investments are typically common stock, which is the basic ownership share of a company, and also primarily common stock in large-cap companies, while the fixed-income investments are primarily a wide variety of investment grade bonds. Stock investments are typically directed toward long-term capital appreciation, while bond and cash investments are intended to provide ongoing income with significantly less price volatility than stocks.

Market

Market dips, sometimes significant, are simply part of investing in stocks. Markets that lose momentum are sold, while sectors that turn up are purchased. good return for a long term and one should be careful in investing in those stocks which have higher market index. Even the bad stock with poor results would do well in the upcoming market and in the next year with good results.

One should build stock portfolio after considering the risks involved in market. There is rise in stock investments in the market nowadays due to the most advanced technologies available and the process is made easy to check fraud in the markets. When building a stock portfolio, you should carefully consider the risks of investing in the stock market and develop a diversified asset allocation strategy that fits your goals, investing time frame and risk tolerance. Other investment options include buying bonds and mutual funds, delving in real estate and trying your hand out at network marketing. While stock investments can indeed provide excellent returns in the long term, the stock market does indeed fluctuate.

Investments

Investments are the major source of income for many firms which lead to growth and financial status. Investments are not only applicable to firms but also individuals. Investments are not guaranteed a return, and some investments are worse than others. Investments can be a bit risky, but who ever got anywhere by not taking a chance. Investments in common stocks are effected by government policy which may adversely effect the value of the stocks, such as wage price controls, price caps, interest rate increases, tax increases, etc. Investments in a particular company may be impacted by changes in technology. Investments are stated at their purchase price with no impairment as the value of the company invested in exceeds the value paid and the Company does not have the ability to exercise significant influence over the investee’s operating and financial policies. Investments that offer potentially high returns are accompanied by higher risk factors.

Investors

Investors purchase stocks in the hopes that the value of the corporation will increase over time. Investors should pay close attention to press releases from a company. Investors can search the SEDAR site by date, document type, company name, or industry sector. Investors should consider their financial ability to continue purchases during periods of market fluctuation.

Its up to the people to understand and evaluate the best method used before making investment decision in the stock market. If you've decided that investing in stocks is right for you, where do you start to learn about the right stocks for you to invest in. The only strategy that has proven successful for investing in stocks is to pick wisely when you first invest and then hold on for the long term. When you’ve mastered the ropes, stock investments are sure to make some great returns.

All stock investments are risky, but growth stocks represent a gamble too huge for some investors. Good stock investments are always hard to come by but with free stock tips derived from something like disandvantages of stock options one can help learn to invest in the stock market or also learning to invest in the stock market. Most stock investments are higher in risk than bonds and money market securities, but also offer higher potential total returns. It has been proven, that over a long period of time, the market risks associated with stock investments are significantly reduced.
Remember that stock investments are generally meant to be long-term if you want to see any kind of significant return.

Article Written By J. Foley

Forex Trading Machine