Tag Archives: Stock

Stock trading and trend indicators

Trading in financial markets has never been easier and committing even a small mistake can result in loss of your money. Hence it is important for any person to be knowledgeable in trading activities.

You might have heard about many people who have successful in trading but for you to declare victory, you have to learn winning strategies in first place. To start with there are many strategies and techniques, people use in trading. But in this article we will limit ourselves to trend indicators.

By using trend indicators one can know how to trade stocks. It is a strategy that will help you assess the performance of the stock based on how it has performed in the past and how it will do in the future as well.

It is basically a way of following the markets and analyzes to invest. There are many types of trend indicators. In this article we will know what the different types of trend indicators are and how they are useful.

Moving average indicator: it provides a trend direction usually by smoothing price data. It is normally calculated based on the closing price of the stock. The time frame of the moving average can be shorter as well as longer. The shorter term moving averages are more sensitive and at the same time identify new trends quickly but also give more false alarms. Longer term moving averages are more reliable compared to shorter term moving averages but are less responsive.
MACD indicator: it is basically an enhancement of the moving average indicator. It helps the trader by measuring the distance between the two moving average lines. This indicator signals are used when MACD crosses its signal line and calculated as a 9 day exponential moving average of MACD.
MACD histogram: with MACD indicators, the signals tend to lag the price movements. To overcome this problem, MACD histogram is used to signal trend changes well in advance. But they are less reliable and should be confirmed by other indicators.
TRIX indicator: it is basically designed as an oscillator for trading trends. It provides you trends that are shorter or equal to window period.
Smoothed rate of change: it performs similar to momentum and rate of change indicators but at the same time it overcome some of the weakness like it is less erratic and gives fewer false signals and it ensure that the indicator will only bark once.
 Price envelops: this indicators are triggered when set percentage is above or below the moving average. They are used to determine the overbought and oversold levels.
Bollinger Bands: this indicator is used to confirm trading signals to indicate the overbought and oversold levels relative to moving average.
Directional movement: it helps you to analyze the ability of bulls or bears to move price outside the previous day trading range.
Parabolic SAR: when it is employed in trending market, it provides entry and exit points of the stock under observation.
Commodity channel index: it helps you to measure the position of the price in relation to its moving average. It is used to signal the overbought or oversold position of the market or to signal when the market is weakening.

Please note that this article is for educational purposes only and should not be considered financial advice.

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Stock Market Trading Strategies

Stock market trading involves the buying and selling of a company’s shares on the stock market. In addition to actual ownership of a company’s stock, traders could spread bet on the rise or fall of a company’s share price.

In spread betting, you speculate on the underlying value of a share. Consequently you do not actually own any company stocks.

Many stock traders ‘buy’ and ‘sell’, or open and close positions, according to a strategy. There are many possible stock market strategies that you might want to develop over time. One of the most important factors in any strategy is an understanding of the company whose stock you are trading, the wider stock market and the larger factors such as the economy.

A company that has just announced, for example, a long-term restructuring plan may be on the road to recovery, in which case you may consider a long-term ‘buy-and-hold’ strategy. The general aim is to sell your holding when it is in as profitable a position as possible, however if you are not making a profit, you may need to sell your shares in order to limit losses.

Fundamental analysis can be a useful tool when developing a stock trading strategy. Fundamental analysis, when it comes to share trading, involves trying to determine a stock’s intrinsic worth.

Fundamental analysis of a stock’s worth can be undertaken using factors such as the company’s financial statements, its profitability, the strength of its executive team, its competitive strengths/weaknesses and its position in the overall market.

Although fundamental analysis can be highly intensive, at its heart it is a simple idea. If the current share price is lower than what you believe the stock is actually worth, you may seek to buy its stock in the anticipation that it will move closer to the true value.

Stock trading strategies can also be aided by technical analysis. Technical analysis differs to fundamental analysis in that it relies on an interpretation of past price movements.

If a share price has been consistently rising over a period of time, you may decide this trend will continue. Technical analysis, therefore, leads to a stock-picking strategy that relies on the idea that the past can be, to some degree, a guide to the future. This is, of course, not always the case.

Trading can, for many market participants, be affected by impulsiveness, greed and fear. Traders may decide to abandon a long-term strategy in favour of short-term trading in response to a bull or bear market.

Investors might believe that a share price will fall, so they may sell en-masse, and consequently the share price falls. This is not of course always the case.

Be aware that spread betting does involve a high degree of risk to your funds and you can lose more than your initial stake. Please ensure that it matches your investment requirements as it might not be suitable for all classes of investor. Before making any trades, make sure that you fully appreciate the risk. Only spread bet with funds that you can afford to lose. Obtain independent financial advice if necessary.

Situated in the centre of London’s financial district, Daniel Jones is a seasoned spread betting professional and commentator on some of the leading financial spread betting sites.

Stock Market Trading Risks

Stock markets are public exchanges on which company shares, also referred to as stocks, are traded. The London Stock Exchange (LSE), the New York Stock Exchange (NYSE), the Paris Bourse, the Deutsche Boerse and the Tokyo Stock Exchange are among the best known stock markets in the world.

Stocks can be speculated on by a range of financial investors. Some of the larger types of investors include pension funds, hedge funds, investor groups and insurance companies.

One of the main stock market trading risks is that you might lose your investments in a stock market crash. Stock market crashes, the most famous of which triggered the Great Depression in the 1930s, are relatively uncommon. 

Of course, it should always be remembered that these crashes can be hard, if not impossible, to predict. The financial crisis that began in 2007 took many by surprise and wiped out many investment portfolios. Even though stock market crashes are rare, they can be devastating when they do occur.

One of the ways in which you can seek to limit the risk of losing your investments to a stock market crash is to invest only in low-risk investment companies.

A low-risk company is one that has had a steady financial performance over many years, has paid out dividends for many years without interruption and has a credible strategy for the future. Utility companies often fit into this category.

There is always an element of judgement to be exercised in choosing a low-risk investment. Risk, of course, can never be wholly eliminated, as looking at the past is never an entirely accurate method of anticipating what may happen in the future.

If you wanted high risk investment then you could try  financial spread betting with a company like Financial Spreads or IG Index. Spread betting is considered high risk because your trades are leveraged. In short, your profits are magnified but so are your losses.

In short, spread betting involves a high level of risk to your trading capital and is not appropriate for all classes of investor. Before you start trading, make sure you are fully aware of the risks involved. Always ensure that you only speculate with money you can afford to lose. Where necessary request independent advice.

Stock market trading risks are sometimes divided into systemic and non-systemic. Systemic risks are those that affect an entire market. External events such as interest rate announcements or political events such as US presidential elections, war or regional instabilities often affect traders’ decisions across an entire market.

A recession, for example, can make it harder for many companies to sell their goods and services, regardless of what these are.

Non-systemic risks are related to an individual company’s performance and financial health. Non-systemic events that can affect a company’s share price can include its financial results announcements, executive board exits/appointments or product issues.

A traditional method of diminishing risk is stock diversification. In colloquial terms, this is equivalent to putting your eggs in different baskets.

If you are exposed to a high-risk stock in one of your investments, you can seek to offset it by investing in a low-risk stock that may generate profit more slowly, but in your opinion, more surely. A high-risk stock tends to generate profits quicker but with a greater probability of losses.

Diversification does not mean that your trading will be risk free; if all of the sectors which you are trading go against you, you may of course lose even more money.

A leading financial writer based in London’s financial heartland. Peter Jones is a seasoned commentator on the futures and spread betting markets.

Trading Stock Market Newsletters

Oftentimes, trading stock market newsletters appeal to greed, promising unreasonable returns and exposing them unknowingly to huge amounts of risk, which essentially guarantee they will lose money. SRS has a different approach than other trading stock market newsletters. We seek to help clients build lasting wealth focusing on prudent stock trading strategies, keeping their risk exposure low, and researching companies top money managers are buying.

Trading Stock Market Strategy

Some trading stock market newsletters take a short cut, recommending high-beta, cheap stocks that have recently experienced explosive gains. While this approach can sometimes lead to spectacular gains, it also sets clients up as bag holders. In the end, this approach is a guaranteed way to lose money.

SRS trading stock market newsletter subscribers are never exposed to these kind of risks. We buy only strongly trending stocks from sound bases that offer buying support and that show wide institutional accumulation.

Trade in direction of trend

Buy from sound bases

Buy strength, sell weakness

SRS Newsletter Stock Picking Strategy:

The SRS trading stock market newsletter strategy for picking stocks is focused on market leadership. We start by analyzing leading sectors and then drill down to leading stocks in those sectors. We want to see increased fund ownership over a period of quarters, strong earnings per share (EPS), improving relative strength, and most importantly, a good story. Stocks should have real demand. Companies that don’t have strong future growth potential likely have a group of smart investors looking to sell strength.

Focus on leadership

Increasing fund ownership

Increasing EPS

Relative Strength

Risk Management Strategy:

If you focus on managing risk, profits tend to take care of themselves. Years ago we developed a strategy we call the SRS 10/2 Ratchet system. The 10/2 represents reward versus risk. We never take a trade that doesn’t have at least a 10 percent profit potential and we have consistently kept losses below 2 percent on trades that fail by using stop losses and position-sizing strategies. Just like a ratchet tool that never lets a mechanism slip backward, this system ensures that if just 50 percent of all trades are profitable, trading accounts are guaranteed to grow and grow.

Position sizing

Stop loss placement

SRS 10/2 Ratchet System

SRS Trading Stock Market Newsletters Service

Several hours before the markets open each day, we send a newsletter to our subscribers that includes a detailed analysis of the market and an assessment of where new money-making opportunities are at. Subscribers not only know why they are buying or selling a position, but they know what the probabilities for success are.

Daily market analysis

Stock trading recommendations

Detailed entry, target, and stop loss prices

Detailed stock trade description (technical and fundamental)

Detailed guidance for open positions

 

SRS is a one-stop solution provider that helps traders and investors maximize their returns from the markets with the help of a daily stock trading and trading stock market newsletter.

 

Trading Best Stock Newsletters

Many trading stock newsletters draw clients in with promises of huge returns. There is a rule taught in Economics 101 courses around the world — There is no such thing as a free lunch. Huge rewards require huge risk. The best stock trading strategies balance risk with potential reward. It is unfortunate, but the fact is, if you take too much risk, over time you will lose all your money. We believe SRS offers the best trading stock newsletter strategy by helping our clients reduce risk and build long-lasting wealth — the kind they can keep and the kind that changes their lives. We do this by using prudent stock trading strategies that focus on leading companies with strong growth potential.

Stock Trading Strategy

It doesn’t take a great deal of experience and expertise to find a stock that has just moved up 10, 20 or more percent in a day. Many trading stock newsletters do a quick 5-minute scan of the markets and send newsletter subscribers an alert when a stock has just made a big move. These kinds of stock trades can sometimes lead to even more quick gains. Chances are though, they leave subscribers holding the bag as smart money takes profit.

We work hard to ensure our clients are never exposed to this kind of risk. We typically don’t trade cheap penny stocks with no future, but rather focus on strong companies that are leading the market that are in an uptrend and moving up out of sound buying-bases.

Trade in direction of trend

Buy from sound bases

Buy strength, sell weakness

Stock Pick Strategy:

We believe the best way to ensure our stock trades are successful is to focus on market leadership. Rather than scan the market for stocks on the move, we examine sectors that are exhibiting leadership. We then drill down and find those stocks that are leading their sectors. Before we recommend a stock we ensure it has strong earnings, increasing institutional ownership, strong earnings projections, and most importantly, a good story. If a stock doesn’t have a good reason why it is set to increase market share in its sector moving forward, we have to wonder if smart money won’t be looking to unload shares when they see strength.

Focus on leadership

Increasing fund ownership

Increasing EPS

Relative Strength

Risk Management Strategy:

Our clients are probably sick of hearing it, but we keep on hammering on the premise that if you focus on managing risk, profits take care of themselves. One or two big losses can wipe out hard-earned gains that took months to achieve. We have developed the SRS Ratchet trading system designed to force our client’s portfolios to grow just like a ratchet keeps a mechanism always moving forward, never slipping back. Each trade we take must have at least a 10 percent growth potential or we won’t take it. Moreover, we want to keep losses below 2 percent if things go wrong. In fact, we have averaged this very amount consistantly for over seven years now.

Position sizing

Stop loss placement

SRS 10/2 Ratchet System

SRS Trading Stock Market Newsletters Service

We spend hours each day researching the markets and reviewing the performances of sectors and sector-leading stocks. Clients receive a newsletter in their email daily in addition to access to the client member area of our site. Newsletters contain a daily market analysis, stock recommendations and more. A free two-week trial subscription is available.

Daily market analysis

Stock trading recommendations

Detailed entry, target, and stop loss prices

Detailed stock trade description (technical and fundamental)

Detailed guidance for open positions

 

SRS is a one-stop solution provider that helps traders and investors maximize their returns from the markets with the help of a daily stock trading and trading stock newsletter.

 

Stock Market Trading: Stock Trading Basics And Trading Stocks Tips For Newbies

More and more people become attracted to stock market trading. Anyone can become a stock trader, but, not everyone can actually profit from the market. If you wish to make stocks lucrative for you, better understand fully and follow the stock trading basics as well as trading stocks tips shared below:

A.Stock-trading can be simply defined as the buying and the selling of what else: stocks. Then trades happen in the so called ‘stock market’, which is a large financial market, that allows you to trade ‘offline’ e.g. by telephone, or ‘online’ e.g. over the World Wide Web.

B. It is a must that you enroll in a stock-trading course if you’re a newbie. Check out your local newspaper for ads of seminars and courses about stock market trading. You can also learn to become a stock trader if you attend online courses that focus on investing in stocks. Always remember that part of the list of stock trading basics is this: it is a must for every aspiring trader to take tutorials and courses about stock investing.

C.One of the most important trading stocks tips is for you to get to know the company that sells the stocks, the history of that company, the performance, and so on. Don’t just invest in specific stocks just because your friend told you to, or just because of favourable gossip about the company. You can’t ‘win’ in stock market trading if you keep on guessing. You have to research seriously, and base your decisions on facts, especially if you want to become a stock trader who makes money from stocks.

D.Included in the list of stock trading basics is for every new trader to engage in simulation games first. If Foreign Exchange trading has the so called Forex demo accounts, stock investing has stock-trading simulation games that can help you gain experience first before you move on to ‘real’ stock-trading. Practicing with simulation-games first is definitely one of the most vital trading stocks tips that you should not do away with.

Stock market trading is an activity that can help you earn more cash, at times even higher that what your employer pays you. Of course, to become a stock trader who earns big regularly or consistently, you have to master stock trading basics and make use of stock-trading strategies that really work; if you don’t, you will not be able to enjoy lucrative stock-investing activities.

Karen Winton wants you to benefit from investing in stocks. To learn more about trading and how to earn from it, read: Stock Market Trading. To profit from any kind of trading, see: Wizard Trader.

Trade To Trade Stock – Use The Stock Market To Trade Foreign Currency And Make Tons Of Money

Trade To Trade Stock

For anyone who has ever had the dream in which he could use the stock market to trade foreign currency and make tons of money in the process, secret forex trading methods could be the thing that could bring those dreams to life. Certainly one could jump in and do their best to figure it out on their own, however this is a good way to lose money fast. The better choice is to use secret methods that have been in use for years by other traders and have been proven time and again.

Of course it is no secret that the market can be a bit risky. Still, it is possible to reduce your chance for a loss by implementing secrets other traders have been using successfully. Trading foreign currency, also known as forex trading, provides a way for long term wins as well as short term gains, and you will increase your chances for success when you use a tried and true system or the secrets of other established traders.

Their secrets for success might just be the final piece that can help you start winning in the market. With them, you will learn how to supplement your nine to five income, and you might even find that you can make enough on the market to give up your day job and become your own boss. Trade To Trade Stock

Secret forex trading methods, created by experts and fine tuned by them as well, make investing a safer proposition. These professionals have developed these secrets over many years and in the process have become educated on how to avoid mistakes. Now you can leverage their experience and use their secrets.

It is important to know that those who make real money approach the opportunity as a real business rather than a hobby or a way to spend their spare time. They invest in the methods, processes, and the secrets that have historically proven themselves and provide the best paths to success.

Of course forex and other types of trading on the market will require the investor to understand when to buy and when to sell. There are a number of signals, many of these part of secret methods, that tip of the educated investor so that he or she knows precisely when to buy in and when to sell off. You can use these secrets as well.

Take some time to research forex trading on the internet. You will discover that there are ways that you can realize the dream of making enough money on the market to secure your family’s financial security. You can do it. Secret forex trading methods are out there and available for anyone who wants to try. Trade To Trade Stock

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Stock Trading Robot Review

Now that all the doubts about the stock trading robot have dissipated; its time to analyze how the daily trading robot really works which is basically asking: how does it make money? Roughly, this is a question also linked to: why does it make money? Or why is it effective at making money?

In order to answer these questions, we have to ask: Where the daily stock trading robot does gets its money? The stock trading robot is specifically designed to trade in the penny stock market. For beginners, the penny stock market is the market exchange for companies whose stock is price 5 $ and below regardless of how much capital they have.

These stocks’ prices are highly volatile, and can allow the investor to earn a few hundred percent in a few days assuming of course that they invested on the correct stock option in the right time and sold them in the right price.

The difficulty with the penny stock market is, of course, how to predict it. Most of the companies listed on the penny stock market, being small (many have market capitalization of below 5 million), are at the mercy of financial market trends. Here is where the day trading robot comes in. It scans penny stocks looking for market indicators that can tell which stocks may go up.

It identifies profitable stocks by comparing the market indicators with set patterns in its database and once it is sure that it has found a stock that is about to go hot, it makes a recommendation and all you need to do is decide how much you wish to invest. Monitor the same investment next morning and see that the stocks that you bought yesterday have risen in value. Of course, you sell the investment and reap the profit.

There area a few advantages already evident here. One is the stock trading robot does its analyzing for you. More effective in scanning and crunching numbers than a human analyst, it alerts you for opportunities once it recognizes them. Plus, since it scans not just a limited number of stocks as human can, it effectively runs through the whole list of possible stock option candidates. And with thousands of stock portfolios in the penny stock market, it is totally impossible for you not to find one that will reap profit.

Secondly, the stock robot is free from human emotion; it will neither cower out of a bull or be overbearing which is the most common weakness of human traders. Remember, the best trader is the one who sees the numbers as they are – just numbers. Thirdly, the stock trading robot can churn out its recommendation in the first 15 minutes it is running. Hence, you don’t really take the entire day analyzing the market.

This gives you 2 immediate advantages; you can invest almost as immediately as the stocks go hot – You get a first shot at the bandwagon. And secondly, you can stop trading almost a few minutes after you start – which frees you for other activities. You can even get another job that will require you to go in only on the rest of the day assuming you can find one.

In the end, we earn money only for other purposes. If you can earn enough money in the beginning of the day using this tool, then give time for things more important, then buying a day trading robot will be worth all the money spent.

Old school investing was only the beginning; with stock trading robot available, investors are dominating the market without an ounce of sweat.

Stock Trading Secrets

There are many experts and books telling you how to pick stocks. You can turn on the TV and you are going to get a stock recommendation if you watch financial news. But most people never tell you when to buy or sell.

You see you have to do more than just get an idea from TV or read about a hot stock in a magazine to make money. You have to know basic trading tactics and fundamentals and put them to use. That is where understanding price action and stock charts comes in.

There are three principles to technical analysis. First is that market action discounts everything. In other words all of the known information is already factored in price. Knowing information won’t give you an edge, because the price already has it factored in.

The second principle is that prices move in trends. There are predictable trends that repeat over and over again that you can take advantage of. The trader’s mantra is “the trend is your friend.”

The third principle of technical analysis is that patterns happen over and over again. Traders and investors tend to move in herds and do the same thing over again, because people don’t change. This enables the technician to profit from the behavior of the crowd in the market.

The key is to distinguish important trends from meaningless short-term fluctuations in the stock market. That is why you want to combine some sort of fundamental analysis with technical analysis. You want to use price charts as a tool.

This requires a degree of skill, judgment, and interpretation. Mechanical trading systems attempt to do away with subjectivity by basing investment decisions on mathematical indicators calculated with the variables of price and volume.

Money doesn’t fall from the sky. Making money in the stock market requires guts, grits, and tough work. You need to educate yourself on technical analysis in order to use stock charts and make money off of price action in the stock market.

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