Learning to Win in The Stock Market

Protect your trading capital

The most important rule when trading stocks, or anything else, is to always cut your losses short. You are simply not going to be right on every trade you initiate. This is a hard lesson to learn, because it goes against human nature. If you don’t keep every loss small, sooner or later, you will suffer some very large losses. Not only will they be devastating to your trading capital, but your psychological capital as well. A sound principle is to always sell a stock if it drops 10% below the purchase price. If you bought shares at 40 dollars, you would automatically sell them at 36 dollars, no matter what. Many elite traders will sell sooner. You can make a fortune in the stock market being right only half the time, but you must keep all losses small. This is a key element you must learn for stock market success.

Methods of analyzing a stock

Basically, there are two major ways to analyze a stock, fundamental analysis, and technical analysis. Traders have debated for a long time, the merits of each method. I have found the key is to properly incorporate both methods. This will help put the odds solidly in your favor. Successful trading is based on probabilities, and sound money management. You want to put as many factors as possible in your favor, before taking a position in the market.

Fundamental analysis

Fundamental analysis is about using real data, such as sales numbers, to evaluate a stock. This analysis is the foundation you need when acquiring a stock. It tells you about the quality of a stock. One of the most important factors is consistent earnings improvement. This is the fuel that can really affect the price of a stock. You want stocks with an annual earnings per share growth rate of 30% or more. Learning how to properly analyze a stock’s fundamentals is crucial to winning in the stock market.

Technical analysis

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity. This includes price and volume. Basically, you are studying market movement, mostly with the use of charts. This allows you to check the supply and demand for a stock. I use daily charts for timing purposes, and weekly charts for a longer term perspective. A key part of technical analysis is learning to identify historically proven price patterns. This will dramatically improve your stock market results.

In conclusion

After you determine the general market is in an uptrend, the key to big profits is picking superior stocks. Choose stocks with strong earnings and sales growth. Look for stocks in leading industry groups. Make sure stocks have formed sound price patterns, and break through key resistance with heavy volume. Once you properly learn the stock market, you could make yourself a fortune.

Some of the Things You Need to Know Before Investing in Cryptocurrency

Advancement in technology has been at the forefront of changing how we do things. Digital currencies have been the topic for a long time now. It is incredible how far cryptocurrency has come. Many people have made a fortune dealing with digital currencies while some have lost a significant sum of cash. Many who have ended up making a lot of money in life at some point had to take risks. Risk is present before succeeding many things, but this does not mean that you don’t have to be cautious. Going into the cryptocurrency trade or investing in digital currency without knowing what you are getting into is not advised. Here is what you need to know about cryptocurrency before investing in it.

It Isn’t Just Bitcoin

When people hear about cryptocurrency, what usually comes to mind is Bitcoin. It is, however, fair to state that Bitcoin has made a name for itself. It is one of the most famous digital currencies out there. The value of Bitcoin skyrocketed over a short period, and as a result, many people gained a lot of cash. When deciding to invest in digital currency, it is rather crucial to know that there are other types of cryptocurrencies. Though Bitcoin is famous, it is critical to consider investing in other currencies that offer what Bitcoin can. Considering all the available options will be wise and will help you choose what suits your wants. There are many cryptocurrencies you can invest in, and you can now easily exchange digital currency for cash through the NakitCoins homepage. Though Bitcoin may have the highest value among the digital currencies, there are various other interesting cryptocurrencies.

More is Yet to Come

When investing in cryptocurrency it is important to note that more is still to come. Digital currency was made possible by advancements in technology, and as we all know, technology keeps progressing. It is fair to state that cryptocurrency is still a new phenomenon. More is still to be made possible. Considering what it has done since its launch, you will have to agree that it has a lot of potential benefits. For the few years that people have used cryptocurrencies, many have benefited in ways that they could not before its introduction. 

The blockchain technology used by digital currency has completely changed how business transactions are being conducted. Many business operations are now running more effectively as a result of digital currency. People can now conduct various businesses despite where there are located. Looking at what it has to offer, investing in a cryptocurrency may prove beneficial as time progresses. Knowing that more benefits are yet to come makes it even better for an investor.

Conclusion

Investing in cryptocurrency is not for the faint-hearted. You have to be willing to take risks to benefit. It is important to always be careful since more is still to be known. Doing your research and asking for advice from professionals is essential before investing a large sum.

A Proper Trading Education Can Make You Wealthy

Complexity can lead to trading failure

Trading is a difficult endeavor, when it comes to long-term success. There are many factors and reasons why most traders and investors ultimately lose. Here is one generally over-looked reason for failure. Many traders and investors falsely believe, the more complicated a trading plan is, the more successful it will be. This is not true at all. In fact, pretty much the opposite is true. Trying to make trading decisions based on dozens of indicators, and tons of information, is a recipe for trading disaster. It has nothing to do with a solid trading education.

Try to keep things simple

Keeping everything relatively simple is a big plus. This certainly does not mean it is easy to be successful. Let’s start out with some seemingly simple rules, that have been proven successful over many decades. The golden rule of trading states to let your profits run, and cut your losses short. Another simple, but yet very effective rule, is to go with the trend. These rules seem simple enough, and they are proven successful. Yet, many traders and investors break these rules quite often. This is true, even when they know better. So the question is, why does this happen? Understanding this is a key to your trading education.

The most important factor

The foundation of a good, solid trading education should be based on rules proven successful over many decades. Two great examples, are the ones I shared with you in the previous paragraph. But why do traders and investors have so much trouble following simple, proven rules? The problem lies not with the rules, but within ourselves. The psychological part of trading is the true key to great success. Human emotions such as fear, greed, and hope can not be part of your trading equation, if you want to become an elite trader who makes fortunes. Fear probably causes over 75% of all trading mistakes. Understanding, and then implementing, proper trading psychology is the most important part of your trading education.

How you think will decide your trading fate

The market gives us very clear directions as to what course of action to take. The big enemy in trading is emotion. It clouds our thinking. You can not be objective when emotions take over. As an example, traders will get out a position as soon as they make a small profit. They allow fear to take over. The fear of the market turning against them, even though all indications point to the market moving in their favor. To make a lot of money, it is imperative to let your winners run. This is one of the main rules of successful trading.

The world’s best traders and investors can put on a trade without any hesitation or worry, and just as easy, admit the trade isn’t working, and exit with a small loss. They are not afraid, but at the same time, not reckless. This is what the psychology of trading is all about. You must always remember that each trade has an uncertain outcome. Winning at anything in life is mostly a function of your attitude, especially as a trader in the markets.

In summary

To become a top trader or investor, you will need to have a proven trading plan, practice sound money management, understand and implement proper trading psychology. The learning curve is steep, and it will take a few years of proper trading education to put everything together, and get the results you want. An important part of your learning process is to study the world’s best traders, past and present ones. Learn their strategies, methods, and principles. These are the people who have already made fortunes in the world of trading. This includes William J. O’Neil, Jesse Livermore, Bernard Baruch, Gerald M. Loeb, W.D. Gann, Michael W. Covel, and others. You can make a fortune with the proper trading education.

How To Navigate The Dangerous Rapids Of Stock Trading

Stock Trading and Investing during the last 10 years have manifested in considerable losses to Investors. All of the key Indices collapsed in the decade from 2000 to 2010. That period is indeed currently referred to as the lost Decade for Investors.

Many Traders on the other hand, earned money. While Investors rely on Fundamental Analysis, Traders depend on Technical Analysis.

The sustained and unbroken commitment of this effort is to assist where ever I am able to guide visitors to this site regarding Trading and Investing. These pages will dispense stock trading information, advice and education for beginners along with hardened investors and traders.

If you are a newbie investor or trader, this is a requisite read. Also, seasoned Traders and Investors will realize its benefit.

In your strategy and your trading activities you want to Keep it Uncomplicated, Stable as well as Repeatable. These pages will seek to constantly prod and guide you towards this simple, nonetheless crucially vital tenet.

All the way through, I will attempt to supply stock trading ideas plus clarify and simplify what I believe are several of the most essential doctrines of successful trading and investing. Subjects discussed will involve:
What is necessary to begin your investing and trading pursuit. You have got to have a plan. Of course it is the single most worthy thing that you do. No, you cannot circumvent it! If you don’t have a plan, you will not be a success. Period!

I resolve to show you how to Plan Your Strategy based on your risk profile and grit and help you Build Your Investment Plan from scratch. We desire to set up a stock trading system that is Simple, Steady and Duplicatable. Finding Potential Trade Possibilities By means of Simple Technical Analysis. It does not matter whether the market is moving up or down.
Technical Analysis cannot prophesy peaks and troughs. In spite of this, it is great at identifying changes in direction and trends. Much money could be made identifying trends and reversals.
Discovering opportunities in the Commodities or Futures Markets without dealing in them directly but in Commodities ETF’S. This permits you to participate, in the volatile and vicious happenings in those markets whilst allowing you to skillfully control your risk. Top 10 Pitfalls of Trading stocks. Be prepared to do your own research and not rely on tips and suggestions from other people.
Causes for the 2008 -2009 Recession along with the Consequences. Has the condition been crushed ?. If so, now what happens to the patient which is the economy? As a result of the after effects, where can the best opportunities be present?
Find out Simple Stock Trading Fundamentals

In trading and investing, the only allegiance or fidelity you possess is to your plan as well as your success – not concerning a individual stock or position. No emotional connection ought to be placed on any specific stock or position.
One of the open stock trading secrets is discipline. There must be a determined, tenacious and forbidding devotion to your strategy and your purpose.

Although this can sometimes be challenging to accomplish, it must be done to ensure victory. Be fiercely true to the adherence of your strategy and be all set to undo the stance if there is any violation of the specification you establish for any stock or security.

However, you must have a plan as well as a strategy. If you do not have a plan you will not be successful. Period! You want to know what to purchase, at what time to buy and when to sell.

For Information On How To Actually Devise Your Trading Strategy, Go To Investing Strategy

The author, Winston, has extensive knowledge and proficiency in the Financial Markets. He started trading in the Commodities Market since the mid 1990’s and has since become very active in the Stock Market.

He has many interests and has indulged himself in a multiplicity of sectors but his true and enduring love is in dealing in the Financial Markets.

As an undergraduate in College, he tutored in the Academic Foundation of his University. While Winston was still in Graduate School, he left to start his first business. Since then he has been involved in many different businesses and interests.

Winston Duke has been a participant in the stock market for many years. He is also the creator and author of several web sites including

Though his interests are many and varied, and he has indulged himself in a multiplicity of sectors, his true and enduring love is in dealing in the Financial Markets.

Listed below are some of the highlights of his life?s journey.

Making The Way For The Charity Through Stock Donations

It always goes out as a nice impression when you are doing charity which of course you can do in a lot many ways. Long had gone the time when people used to donate in cash and materials only. Now there are even more options available for making the donations. And these little acts of kindness work good in your way as well. You get various tax benefits which can be imperative for your business or work.

But making the decision to donate your stocks is something that you require to do a good research on. First, you need to know that what the current standard of the stocks held by you is? You cannot make the stock donations of the stocks that are in your possession just less than a year. This means that you must have the ownership of the stocks for more than a year or so. This works well in your way as you can reap the tax benefits out of the kind act.

The second thing that you need to take into the consideration is getting a good list of all the good charities or which are also known as the non-profit organizations. These must be the ones that interest your kind of ideology. You will surely not like to donate your precious stocks to someone that does not interest you or someone that is not doing the work that like that much. Though charity is considered to be good always but they are also bound by the religion factors. So once you have defined the kind of charity to look for and then come the third step.

In the third step you need to find out the charities that accept the stock donations. To validate these criteria, the charity or the non-profit organization must have a brokerage account. A brokerage account is the testimony of good charity that will use your stocks for a good decent purpose.

Next, you meet your own broker and tell him about that stock donation you need to carry out. They will require few details and signatures from your side so as to make the stock donation process work. They will also need the brokerage account and account name of the charity organization. The proceedings and final donation will take few business days to complete duly. After you have done everything you can remember to save all the documents which play role at the time of filing the tax returns.

Charts For Trading

Chart selection is one of the most common task a trader novice faces when he/she starts considering trading. Majority of traders who base their decision on the results of technical analysis use charts to monitor and analyze a traded security. So, what are the main criterias that should be considering when it comes to the section of a chart provider?

To answer this question, first of all, a trader has to define his/her own trading preferences. For long-term trading there is no need to subscribe for advanced charting software. There is no need to use real- time streaming intraday charts for making a long-term decision. As a rule, daily charts should be OK for this purpose. There are plenty of free online resources that allow you to analyze majority of technical indicators on daily and delayed time-frames. Plus, if you are using online trading, your online broker should have some charts available. Of course if you base your trading on some complicated and unique technical analysis (like advance/decline data, Fibonacci numbers, etc) then, of course, you may need to consider additional sources of charting solutions.

On the other hand, if you are an intraday trader or even trade commodities, then of course, you may require streaming or real-time charts with wide range of technical indicators. While majority of online brokers have streaming charts and quotes, many of the broker’s charting solutions are quite poor in selection of technical indicators, drawing ability, setting alerts, etc. In this case following criteria could be recommended to consider:

1. Are the charts updated in real-time (streaming)?
2. Is there a wide selection of technical indicators? Many providers focus only on price based technical indicators, so, it is recommended to check if in addition to the price based technical studies, there are various volume based technical indicators, breadth indicators and indicators to analyze volatility.
3. Is there is ability to make notes and do drawing on charts? Could your notes and drawing be saved for later references?
4. Can charts be scroll back in history? Will be your saved notes displayed when you browse the history?
5. Can you save different chart styles instead of setting a chart each time you open it?
6. Can you set any type of alerts on chart (sound- or email-alerts)?
7. Is there need to purchase, download and install any additional software and you have to drag your computer everywhere you go, or this is java based charting solution and you may see them on any computer in any place in the world?
8. Is there any mobile devices that allow you to see the charts?
9. Is there any tutorial on technical analysis, indicators and studies on a chart provider?s website?

There could be plenty of other questions. However, from my personal experience, it is simply recommended to write an email to customer support with a question related to technical analysis or building a trading system. Depending on an answer you will see how qualified and willing to help you customer support personal is. Believe me, you do not want to stuck with unfriendly service.

Trading Volume A Key To Making Big Money

Opening a treasure chest

Learning to properly analyze trading volume is crucial if you want to make a lot of money in the markets. The skill of recognizing whether the bulls or bears are in control of a particular market, is almost like having a key to a treasure chest of virtually unlimited money.

The definition of trading volume

It is the number of shares or contracts traded in an individual security, or an entire market during a specific period of time. Basically, it is the amount of shares that trade hands from sellers to buyers as a measure of market activity. As an example, if a buyer of a stock purchases 200 shares, that would cause the volume for that period to increase by 200 shares based on that transaction.

The basics

If you get a big price gain in heavy trading volume, this tells you big players such as mutual funds and hedge funds most likely are buying. On the other hand, if you get a big price drop in heavy volume, it is pretty clear the big players are selling. A big price gain in light volume gives you an indication there is a lack of conviction in the move. Big players simply are not behind the move, and the stock will have a hard time holding onto its gains.

Supply and demand

Price-action is obviously important, but trading volume, the supply and demand, will best tell you what is actually going on with a stock, or the market as a whole. Our objective is to determine the balance of the supply and the demand. When the demand is greater than the supply, the price will rise, and vice versa. Remember, it is the action of the volume that tells us of the supply and demand. The price only gives us the value of the volume.

3 important types of trading volume activity

The first type is increasing volume during a price advance, with pauses or set-backs occurring on light volume. This type of action is indicative of demand being greater than supply. This is the type of price and volume action that favors a resumption of the advance. You will make excellent money if your stock is showing this kind of price and volume action.

The second type is when you get increased volume at the top of a price advance, and it lasts for a while with no meaningful gain of prices, that is called churning. Many times churning is indicative of a turning-point. Big players are getting rid of their shares right before the general market starts a correction, or even possibly a bear market. This type of action usually fools the general public.

The third type of trading volume has to do with a price advance that is struggling or acting very tired. This is the case when you see a stock, or the market in general, creep upward on light volume, and simply dies at the top. Basically, this indicates a lack of demand. There are few buying orders or selling orders. This action many times is telling us a reversal could soon be in the cards, especially if followed by increased volume on the down side. Heavy volume at the end of a move generally means a turning-point. Recognizing reversals or turning-points can make you a fortune.

Advantage of The Right And Professional Guidance on Stock And Intraday Tips

Trading is a serious business and one should be aware of the good trading methods and money management policies. The intraday trader has the sole objective of making profit as soon as possible. It refers to the practice of buying and selling financial instruments within the same trading day. And intraday tips assist you in buying and selling stocks, shares and other financial instruments within the same day. Basically intraday trading involves lots of risk, so it is always advised that only experienced traders can go for intraday trading. Intraday Trading is done with very less profit and done multiple times in a day. The vital aspect that you need to be careful about the stock market volatility is the fact that you need to do a decent research and analysis before venturing into a particular stock. All you need to predict is that the stock price will either rise or fall very sharply in the course of the day.

The main purpose of online trading websites is to provide quality educational information, tips and resources as a form of stock trading guide. One of the primary advantages of investing in stocks is the possibility of greater returns. There is lot of risk of losing capital, so persons having small capital should avoid intraday trading. There are number of trading consultants in the market helping you to take the right decision while selling or buying the stocks. Intraday trading can be a great way to make money if invested soundly. Day trading used to be the preserve of financial firms and professional investors and speculators. Excellent returns in day trading if done properly and systematically. So you need to get the best one that would help you provide some share tips including Stock Tips in the market. Like any other investment stocks and shares are also a calculated decision that you need to take with proper care and only then you can profit from that.

One of the main disadvantages of trading in the stock market is the risk involved. And thus enter the role of the professional guidance in the form of the online portal as well as brokerage firms. Indulge in paper trading before you actually start trading so that when you start making paper profits, you can shift to the actual trading. Same day traders focus on very short-term trading within the trading day, in which a trade may last just a few minutes. Whether you’re a first time investor or you want to improve the way you manage your existing funds the online investment guide will assist you for sure. So if you are looking for the correct advice on intraday tips and Stock tips, you can always count upon your professional help just click away.

Stock Market For Beginners – Bull And Bear Markets

A bull market is when everyone is positive about the stock market and wants to buy stocks. A bear market is the opposite as the stock market keeps going down no matter what and people want to sell.

The stock market for beginners is a place where you need to pay attention to what is going on. During a bull market, you can probably make money from almost any stock. Everyone will want to give you their stock pick and chances are the stock will go up. All the pundits on TV will be pumping out their stock picks and you can most likely make money on any of them. Even your hair stylist may want to give you a stock tip.

If you start investing in stocks during a bull market you may get over confident. You may make money right away and think it is easy. This is something to be weary about if you are just starting to invest in stocks. It is not easy and things can turn around in a day.

During a bull market, everyone wants to sell. The stocks you own may go down 4 out of every 5 days. You will be confused and want to sell and wonder whether you should. Remember 9/11 when the stock market went down huge and kept going down for months after? Do you sell or do you hold? Will the stock market ever turn around? Do you buy more at a lower price? These are just a few of the questions that you will be faced with in a bear market.

Most of the time the market is somewhere in between a bull and bear market. Usually the better stocks go up over time and the stocks of companies doing poorly go down. It is best to always try to pick stocks of companies that are doing well or will do well. The stock market for beginners can be a confusing and scary place that takes a lot of time and experience to get used to.

Forex Trading Beginners Guide

If you wish to make money with some of that nest egg that you have stashed aside for a rainy day, it?s a great idea. Remember that nothing comes with no trouble and you have got to find out your ABC?s. Like all alternative trading, you have to know what you’re getting into, when to trade and when to not trade.

This is a beginner?s guide to forex trading. Here, you’ll learn what Forex Trading is, and the way you’ll be able to create cash off it. Remember, it?s just a beginner?s guide, so you need to make an attempt to get a lot of material and learn as abundant as you can.

Let?s start!

Forex is an acronym for Foreign Exchange. In most elementary terms, you purchase a currency for one country and sell that of another. Currencies are traded in pairs as a result of each countries, whichever they’re, want their money. Therefore the shopping for one and selling another. Each currency needs to convert foreign currency that they receive throughout trade back to local currency to enable with local operations, which where the chance to trade comes in. Forex trading will not happen on stock markets like alternative monetary trading operations. It happens between currencies and is conducted through banks.

The most common currencies that are traded are Australian Dollar, the British Pound, the Canadian Greenback, the Japanese Yen, the Swiss Franc, and also the U.S. Dollar. You?ll conjointly notice countries in smaller regions trading between themselves.

Thus how do you create a profit? In every currency quote, there is a bid rate and therefore the raise or supply rate. Using hypothetical numbers, assume that you’ve got the bid rate for Japanese yen is 120.5 and also the ask rate against the US dollar is 120.9. That will usually appear as It means that that if you are holding Yen, someone else on the market is ready to relinquish you 120.9 for it. You will so pocket .4 Yen, and there-in comes your profit. Now, extrapolate that variety, and you start to see the potential.

The US dollar is considered a terribly stable currency (sometimes), and many People can be looking to shop for dollars. If you?re holding onto a stash of dollars for instance, the demand for them is typically high, which means that that in line with the market rules, their price is high. If you went into a bank or a forex trader and sold them off, you’d probably build a handsome profit.

Like several alternative trade with low margins, the key to creating additional is to trade it high volumes ? what is referred to as a high volume business. If your stash isn’t so massive, droop on to it till you have got enough greenbacks to make you a handsome profit.

The other thing to try and do is to observe the forex rates hawkishly. Yes, terribly, very keenly. Forex rates modification hourly, in some places in minutes. You must apprehend when to trade in or when to buy and the only means to try to to this can be to know what is occurring a moment by minute basis. You’ll have a broker do that for you, but bear in mind that they will dispose of their commission fee. Otherwise, there are software packages out there that are hooked up to stock exchanges and simply by looking at your computer screen, you’ll see what the rates are and you can purchase or sell.