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S & P Trend Up On Stock Chart

Respect my brother stock trading fighters. We may well be at the dawn of a new major bull uptrend.

Come again?

How can that be with so many people being without a job, banks being closed down, and home building taking a double douse to the downside?

Meaningful question. It does appear ridiculous provided you are a one-dimensional life form existing in the present.

However you are better than that. You were given the capability to visualize yourself existing in the future. That higher level of thinking is what makes you unique from other beasts and living organisms that can merely think in the present. Though I admit it’s not as cool as Back To The Future time travel, it can make you a great deal of moolah.

One of the most tricky concepts for amateur investors to take hold of is that the stock market is the future of the economy anywhere from 4 to 9 months. In other terms, all the movement taking place on the stock market at present is a bet on where we believe the economy will be 9 months from now. The stock market is yelling at us that in 9 months from now, the jobless rate will be lower, banks will no longer be failing, and home construction will pick up. The earnings season that just ended confirmed that with 70% of all companies posting earnings increases YOY.

Last Saturday I wrote on the subject of how, with the downtrend channel breakout, we don’t know what new channel or chart pattern will form as we don’t have an adequate amount of chart data yet. At this time with 1 week more of chart data, and zooming out on the stock chart to see the larger chart pattern, a configuration springs forth.

The S&P 500 has finished a Bullish Flag breakout.

Now bears and gold bugs will protest the formation and tell us that not enough volume is there for this to be a authoritative breakout but that is just not correct. Provided you go back and study the preceding Bullish Flag breakout we had on the S&P 500, you can appreciate that the volume that has accompanied this breakout is over 23% greater!

The Bullish Flag did a picture perfect 38.2% Fibonacci retracement of the bull move that started in March of 2009. A 38.2% retracement is a good retracement for a bull rally.

I am upgrading the S&P 500, Nasdaq, and Dow to that of uptrend.

Free expert chart analysis to assist you in establishing the direction of the major indices. Check it out at s & p trend

July 25, 2010   No Comments

How To Survive A Bear Market

You’ve doubtlessly already heard about the terms ‘bull market’ and ‘bear market’. What do these really mean? A bear market is simply when you have a drop in a large number of share prices over a relatively long period of time. Traders normally talk about a bear market when prices have dropped at least 20% over a period of no less than two months. As more and more people sell their stocks, market prices are pushed down even further.

A bull market is exactly the opposite of a bear. Prices start rising and continue to rise with more than twenty percent for more than two months. Just as pessimism drives a market with dropping prices even further down, optimism drives a bull market upwards.

You shouldn’t get confuse a declining market and a normal market correction. A market correction happens after a sudden increase in the price level when people sell their stocks to take profit. It normally doesn’t last more than a few days.

It’s easy to see how one can make money in a bull market. In fact, it’s hard not to make money in such a market. But how can you make money in a declining market?

One such way is if you could accurately predict the end of the falling market and then buy a selection of top quality stock tips. Although you can use a variety of fundamental and technical indicators to help you with predicting the turning point, it remains very difficult. Even the best of traders often fail to correctly predict the turning point of a slumping market.

A further option you have is to sell stocks short. What happens in effect is that you borrow stocks from your brokerage and then sell them to another trader at the current (high) price. Once the negative market has taken its toll and the price of the stock is much lower, you buy it again and give back what you borrowed from the brokerage. It will of course only work if the market actually goes down.

A further course of action is to buy so-called put options, which increase in price when the market declines. Once again you have to be pretty sure it’s actually a bear market which is still in a declining phase, otherwise you will lose the money you risked on the option.

For more on the stock market subscribe to the WallStreetWindow swing trading newsletter written by Mike Swanson.

July 14, 2010   No Comments

Stock Tips To Make You Money

If you want to earn a huge amount of money in a very short span of time then one of the best options is investing in the stock market. Here, your invested money can get multiplied in a very less time. But, nothing in this world comes free, so, in the stock market too you need to take a risk and face the probabilities of market fluctuations in every step. If you want to be successful in the stock market then at first you have to cross the hurdles of the risks involved. But, if you follow some stock tips then you can avoid a lot of these risks. You can get some of the best advices from the experienced traders of the stock market.

You should start by gathering all the information of the market before actually making an entry. You should not invest in such a business, trade or market which you don’t understand at all. If you don’t understand the technique of stock market then it would be better to gain as much knowledge as possible. Even after all this, if you still remain confused, then perhaps you would be better off by staying away from this highly speculative market.

You must follow the news of the stock market everyday, as this news will tell you its exact condition and this will help you to trade in a better way.

You must get a good broker who will not only charge you a nominal commission rate but at the same time will guide and help you to trade in a better manner.

You must enter the stock market when it is booming and the moment the market starts to fall, you must make a smooth exit. So, in a stock market you must know the exact time of your entry and exit. In fact this is one of the most important know-how of the stock market.

Also, you should know where you are investing and putting your money. You need to have full information. The stock market won’t remain that unfamiliar a territory, if you follow these stock tips closely.

For more on the stock market subscribe to our the free WallStreetWindow.com stock trading weekly newsletter.

May 2, 2010   No Comments

Fixing Trading Errors

When we are trading we will all from time to time make a mistake when forex trading and it is normal and sometimes can be looked upon as healthy, so as to know that the decisions will either make or break you. However, if this becomes severe to a point wherein you lose more than you can afford to, then you would have to take measures in order to avoid further damage. This is why when you are trading you must make sure that you only trade within your limits. If you can’t afford to lose it, don’t trade.

When trading you must make sure that you keep your emotions in tact, do not let them take over. If you let your emotions take over the result is more than likely to cause even more rash decisions and can cloud your strategies, producing even more disastrous results. You should aim for more positive months with good turnovers but face it; there are some periods wherein gain is not achievable.

Before trading you should make sure that you have a plan and part of that plan is to employ a money management technique; in case is where you went wrong the first time. You should always consider what your losses are going to be. Since most traders would tend to gamble as opposed to trade, instead of making a calculated risk, their bank accounts would be drained each time there is a loss. They don’t have a great capital management system which causes damaging effects. By managing the amount that you can afford to lose in thinking of all possibilities, you can be assured that you do not get bankrupt with forex.

You must make sure that you educate yourself as much as possible about the Forex Market, a great place for education lessons is the CFD FX REPORT They specialize in offering free Forex Education as well as helping you find the Best Forex Broker

Each trader has their own attitude towards forex trading and what risks they are personally prepared to take, but learning about the inherent principles can go a long way in helping you develop your own style and making you more successful in the long run . You can also develop a trading system and make sure to be disciplined enough to follow what you have created. Remember create the plan, plan the trade and trade the plan. You should have this next to your trading screen at all times and never forget it. Remember that since your money is involved and that you are not participating in the market just to lose it, you have to think objectively and learn to foresee the consequences of your decisions.

Do not associate loss with the feeling of being a loser, in order to be a successful trader you will take losses and the best traders can handle them. When trading you should know that you can’t pick the market 100% of the time, so there is going to be losses it is how you handle those losses to how successful you are. The forex market is an objective industry wherein sound decision-making and strategies are employed and not about judging your emotional capabilities and dealing with them. If you can’t handles losses, or losing money, do yourself a favor and don’t trade.

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April 16, 2009   No Comments

Forex Report- Size Matters

One of the major mistakes that most traders will make will be the amount of capital that they place per trade. So how trade to ensure you become successful? Size is the Key The legendary commodities trader Ed Seykota, who turned $5,000 into $15 million over a period of 12 years, was teaching a class in technical trading to a college class some years ago when he decided to conduct an try out to illustrate to his students the value of money management, or position-sizing – that is, determining how much money you will risk on any single given trade – to the generic success of any dealer’s trading plan.

He said his class they were going to contend in a trading competition with each other. Each pupil would start with a theoretical equity stake of $100,000. The winner, of form, would be the student with the most money at the end of the competition. However, there was a catch: Each student would buy and sell the same stocks at the same right time, thinking those stocks would rise or fall exactly the same amount. In fact, Seykota pulled each “stock” out of a hat at the front of the room, and simply stated the students whether it had gone up or down and by how often.

How do you conduct a trading contest when everyone buys and sells the right same stocks at the correct same time? It is all about position-sizing – how often money you are willing to bet on each trade. After Seykota chose each stock, but before he declared whether it had gone up or down, each pupil was required to write down the amount of money he or she was willing to risk on that trade. They could risk as little or as often as they wanted.

The results of the contest provided quite an education for Seykota’s students – and should be remembered by anyone who puts their hard-earned money at risk in the market. By the end of the contest some of the students had lost their entire theoretical stake and were completely “broke”. Others had come out about even, making a little money or losing a little money. But a few of the best students – the best traders – had turned that hypothetical $100,000 into over $1 million!

Think about it: Two traders start with the same amount of money and buy and sell the exact same stocks at the right same time. One goes broke. The other makes 1,000%! Therein lies the secret to survival, and ultimately success, as a trader. All the great traders will tell you that position-sizing is the individual most important factor in their success.

So how often should you risk on any single trade – in other words, how much should you be willing to lose? It is best to risk a fixed percent of your account value on every trade, and not vary that percentage from trade to trade. What that percent should be depends on several critical factors. The most critical are your win-loss ratio, the size of your average win and the size of your average loss. Given these three numbers, your position sizing will determine whether you live or die as a dealer.

The point of position-sizing is to be sure that you don’t break the bank during a losing streak. Even a random coin toss can produce 10 tails consecutively, so make no mistake that even the best traders suffer through losing streaks of equal length. If you risk, say 10% of your account on every trade, and your average loss is 7%, a losing streak of 10 in a row could be devastating. On the other hand, if you are a day trader and your average loss is .5%, you can risk more money on each trade without worrying about a losing streak taking you out of the game.

Seykota says he never risks more than 5% of his account on any single trade. some other highly successful traders think risking anything more than 3% of your account on a individual trade makes you a “cowboy”. A good starting point for beginning traders is probably 1% of your account. The added advantage of lower risk for beginners is that it helps minimize the emotions that often interfere with good trading.

For a detailed discussion of position-sizing, we highly recommend Van Tharp’s book “Trade Your Way to Financial Freedom”. An internationally renowned trading coach, Tharp was profiled along with Seykota in “Market Wizards”, Jack Schwager’s classic collection of profiles of some of the most brilliant traders and trading minds of all time.

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April 15, 2009   No Comments

Boomers Options-for-sale few people know about eBook.

Boomer’s Bank Developed How to eBook.

Free Okay, so it finally hits you that investing in real estate is the best possible move you can make with your money. With your heart is set on buying an apartment building, your search for reading material on the topic has brought you to this article. So what do you need to consider when making this investment? The answer is simple; use, use and use. Use is possibly the most important factor in terms of the property’s value. For your investment to be a success, you need to think of the building’s use for you as well as for your tenants. Hence, you need to also put yourself in the shoes of your customers, i.e. your tenants. To kick start things, first attain information on the demographics of the area in which you want to invest in. This should give you a basic idea of who your target audience is and will also allow you to build a general profile of your typical tenant.

With that profile in mind, think then of what the average tenant would need if he/she lives in your building. For starters, regardless of who you rent out to, people will always need basic amenities near by. Thus, you have to ensure that the apartment building you buy is located near a grocery store, entertainment facilities, medical facilities and the like. You should note that although people might have cars, they won’t like driving for more than 10 minutes to get the basic necessities. For example, in an emergency situation, no person would like to drive more than 10 minutes to get to a hospital.

Following the universal needs, you need to look a little more closely into the profile you have outlined. The more you breakdown this profile, the greater will be chances for success. For instance, if currently you feel that your building will primarily be occupied by families, then you should study the demographic data carefully to figure out what kind of families are we talking about. Will the families be newly married couples or families with school-going children? If it’s the former of the two cases, then your building should ideally be located near a good quality daycare center. Meanwhile, if it’s the latter of the two cases, then you will be best positioned if the building is a near a good quality school.

Use is possibly the most important factor when one is to make a purchase. Combine that with customer profiling, and you have the recipe for success. However, always remember that you shouldn’t venture outside your comfort zone unless you absolutely have to. Comfort zone here refers to areas with which you are familiar and have possibly had experience in previously. This point is important always but even more when you are initially starting out as a real estate investor. When starting out, stick to what you know and try out new things only when you feel you have a handle on the situation. And always, always, keep your eyes and ears open to absorb whatever information you can about your location so that you are never left in the dark.

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March 11, 2009   No Comments