Get A Stock Trading Newsletter Right For You

By Michael Swanson

A stock trading newsletter is available to people who subscribe to receive them from a website that is devoted to stock trading. While some are available for free, other websites charge to email the newsletter to subscribers.

Be prepared to take the time to research the numerous newsletters that are available online. Look for those that provide the type of information that you need to improve your skills and knowledge, with the view of increasing your profitability.

The type of information contained in different newsletters is determined both by the website they originate from and the frequency of delivery. Newsletters that are sent daily, usually in the morning, will have an analysis of the trading from the day before. A weekly newsletter will analyze the previous week's trading and give tips and opportunities that come from that week. A monthly newsletter is likely to be more general in nature, giving information on current events and trends.

Some stock trading newsletters will be technical, some will be tactical and others may provide basic training and tips for successful trading. You will be able to access information on short-term trading opportunities and volatile stocks that will place you in a position to take advantage of rapid movements in the market. Some websites have specific trading strategies that are shared with subscribers to their newsletter.

Seek out websites and newsletters that are designed with your level of experience and expertise in mind; this is particularly valuable for those just starting out in stock trading, because a lot of valuable training and knowledge is available through newsletters. More experienced traders will benefit from newsletters that show analysis of the market, explain new trading concepts and give tips on how you can increase your trading profits.

There are many benefits to subscribing to a stock trading newsletter, but beware of the ones that are loaded with advertising and unnecessary fillers. You need valuable, usable information that will help you improve the profits from your portfolio. - 23212

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Is Trend Following The Right Strategy for You?

By Don Peterson

Trend following is a stock exchange method that takes virtue of both the ups and downs of the market. It is a technique that employs risk management to minimize likely losses. Traders who employ trend following enter the market after a trend has been settled, they don't attempt to foretell trends. They figure out how much to take a position in a selected issue based primarily on the size of the trading account and the steadiness of the issue.

Most trend followers invest in sophisticated software that can be programmed to exit if the trend changes all of a sudden. Then the traders do nothing and see if the trend reasserts itself before reinvesting. This is about following the already established pattern of certain stocks.

Price is the 1st rule of trend following. Other indicators aren't important, although they are not entirely overlooked. The second factor is the choice of how much to trade. The timing is less important than the amount of the trade. Then there's the exit strategy. When to get out if the trade is unprofitable or if the trade is profit-making. Finally, you must set a stop loss for the maximum sufficient loss.

Before entering a trade, most trend followers will test it on their software so they can guage the probable risks and gains. The software is programmed with various factors relating to the particular trade. The trader then decides if he should make the trade under consideration.

One difficulty with trend following is the impact that unforeseen events can have on the market. Political upheavals, natural disasters and other events can effect the market in both positive and negative strategies. When Hurricane Katrina cause large damage to oil rigs and pipelines in New Orleans, the price of oil and gasoline soared in the expectation of deficits. Although no severe dearths happened, investors and trend followers, in both the exchange and the commodities market, kept the cost of oil elevated for months after the event.

The stock market is a gamble, although if you know how to play the market, you get better odds than in Vegas. Trend following is one strategy that has proved successful for many investors, but it shouldn't be a trader's only technique. By mixing trend following with other proved methods you'll maximise your gains and minimize your losses. A various portfolio along with different techniques is the simplest way to beat the market.

I you do not have a plan and the right data when you enter the market, you will almost certainly lose money. Learn all you can and employ trend following with other proved techniques and you'll make the maximum of your investment greenbacks. - 23212

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Find more on ETF trading service and trend following systems.

Trading Strategy Based On Market Sentiment (Part I)

By Ahmad Hassam

Most traders have a love hate relationship with the market thinking that the market is either against them or for them. Do you see the market as a big mechanical matrix which is devoid of emotions? How do you view the forex market is very important.

The truth is that forex market is just the compressed display of emotions. At anyone time the market is emanating the emotions of currency speculators around the world.

You should think of a market as a big living organism. Think that this organism is made up of millions of cells. Each cell is doing its own functions. Each cell also interacts with other cells of the body keeping the living organism alive and kicking around the clock.

A forex market comprises millions of participants acting out their perceptions and emotions. Knowing what the market thinks and how it thinks is crucial to trading success.

Ultimately, you as the trader are dealing with other traders out there in the market whether they are big institutional players or an independent individual trader like you and me. You need to know what the other participants are thinking.

What is the market sentiment? Market sentiment is simply what the majority of the market participants are perceived to be thinking or feeling about the market. Market sentiment is the most important factor that drives the currency markets.

Market sentiment sums up to the overall dominating emotions of the market participants. Traders tend to act based on what they feel and think of certain currencies. They form their opinions based on emotions regarding their strengths or weaknesses relative to other currencies. It explains the current actions of the market as well as the future course of action.

One thing you should know is that market sentiment is not logical. It is primarily based on traders emotions. These emotions are one of the greatest factors in the determination of the currency exchange rate.

Market sentiment is like a fickle lover. It is capable of changing its mind based on new information. This incoming new information can upset the existing emotion. Market sentiment can be bearish, bullish or just plain confused.

If the majority of the market participants want to buy that currency, the market sentiment is bullish and if the majority traders want to sell the currency, the market sentiment is considered to be bearish. The sentiments end up being mixed up when most market participants are unsure of what to do at a particular moment.

Suppose you can understand what the other traders are thinking and why the market is doing what it is doing. You will be in a better position to plan the entry and exit for your trade. Understanding the current market sentiment is important for you. You can exploit it with an appropriate strategy that can help maximize your trading profits. In Part II of this article we will discuss what factors influence the market sentiment in the short term as well as the long term. - 23212

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know Candlestick Patterns. Learn Forex Trading!

How The Hedge Fund Managers Trade Forex? (Part II)

By Ahmad Hassam

You must have read Part I of how hedge fund managers trade forex. You need to understand that hedge fund managers are always on their nerves edge. They constantly look for strategies that work.

Hedge fund managers aim is to make good money consistently while always on their guard because a trade can go bad any time. If a trade goes bad, they know beforehand how to get out of a bad position before it results in a huge loss. You as individual investors also would put your own money at stake in the hope of making good money.

You should decide whether you want to range trade or trend trade? Many hedge fund managers are trend following traders. If you want to become a trend trader than you need to become a master of predicting and anticipating trends in your favorite currency pairs. If you want to be a contrarian trader and range trade, than you should understand how to scalp.

You also need to decide the time frame that you will trade most. You should decide whether you will use the 5 min charts, 30 min charts, 4 hour charts , daily charts etc and why.

Do you want to hold your position overnight or you are happy as a day trader? If you are in a job, do you have time to trade in the evening or the night and how much time you can spare? What time is best for you?

Learn the art of entry and exit. You will need to learn technical analysis for this. Technical analysis is essential for your success. Should it be multiple entry, multiple exits? Should it be single entry, single exit? Should it be multiple entries, single exit? Should it be single entry, multiple exits?

You should understand the money management rules. Never ever put more than 1% of your equity at stake in a single trade. Learn to calculate the risk/reward ratio.

Now, this is the time to take a test drive of the forex system that you have developed by back testing and forward testing. Back testing can be done on Metatrader and other platforms that are freely available online. Forward test your strategies on a demo account using live data.

Open a mini account and try to test it live with a small amount of money. This way you will not lose much money but will be playing against your emotions.

In the end, forex trading is all about developing discipline in yourself and controlling your emotions. You dont get this feeling in demo trading when you know nothing is at stake and you are under no stress of losing your hard earned money.

Get intimate with your strategies. There are two primary types of trading strategies"one that has a high percentage of profitable trades and one that has a high profit factor.

The key here is to know exactly what type of market environment your strategy performs well in and what type of market environment your strategy fails in, because only then will you know when it is time to pull the plug.

Drawdown is very important. Know how much drawdown you can afford. You can establish bench mark figures using a back test for each trading strategy. Decide before you trade, how much drawdown is acceptable before you need to pull the plug out of the trade.

The last step of thinking or trading like a hedge fund manager is self reflection. Oftentimes we become so absorbed with trading that we do not notice the obvious.

This is why it is important to spend some time on a weekly or monthly basis to go over or reflect on your trading. You need to establish a certain ROI level for yourself and keep on tweaking your trading strategies until you start achieving that figure. - 23212

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading and swing trading stocks and currencies. Learn Currency Trading. First Trade Your Forex Demo Account!

How to Make a Budget

By Joe James

With the economy in freefall, everyone is concerned about spending too much money. We all need to save money but a lot of times people dont know where to start. We have a lot of expenses. With spiraling costs it is difficult to live on a shoe string budget. Many people are losing their jobs and yours might be next and so it is wise to curb our expenses. How do we do that? Here are some tips that can help you save some money;

Pay only cash when you visit a super market or mall. That will help you in only buying stuff which you need. If you are using credit card, only use it to the extent that you can pay it off in a months time. Keep your card expense to the minimum. If you have more than one card, try and close the others. Keep only one card and deal only with a single lender. It's easier to track your cash and you become aware of your spending easier.

Tracking your expenses is one of the easiest way to control your cash so you can see where the money is going. Make a list of expenses you have every month. The ones that you have to pay. Not purchases you could do without- mortgage payments, utility bills, education expenses, medical insurance payments, and so on. See how much extra cash you are left with. Save 10% of it.

A great way to save money is to get rid of your car. Cars cost a lot of money with repairs, insurance, and gas. They are not cheap to own. Get rid of it and you will save a lot of money. You'll have to learn how to use public transportation and walk places but it is much more liberating. Moreover, in many cities, you can rent cars cheaply for the day if you really need to go somewhere.

One of the easiest and greatest ways to save money is to stop eating out. Restaurant food is very expensive and if you eat out a lot, you will have a big food bill. However, eating in and cooking your own food is a great way to save a lot of money. You'll learn how to cook and you'll cut your food bill in half. Food is one of the biggest expense people have and one of the quickest and easiest things to cut.

Saving money is something everyone wants to do but everyone has a hard time doing. In this consumerist society, it is really easy to spend money all the time. In order to save money, you need to really look at your budget and cut out the fat. This will ensure that you save a lot of money in case of an emergency and to go out and travel and retire early. - 23212

About the Author:

Joe James gives financial advice for a living. He resides in the southwest of the United States and is a retirement specialist. You can find out more information at his website,Information on Financial Stuff.