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Friday, August 21, 2009

Online Stock Trading Software Analysis

By Reginald Shiver

Are there any profitable and genuine online Forex trading software and where can you download them? Having examined numerous currency trading methods and software, I have come to understand that majority of them are not beneficial over the long term even though their systems' reasons makes perfect sense. They are usually disguised as some influential system and software by intelligent marketers who look to create high profits by selling them to naive traders.

Moreover, there are a few genuine Forex courses and software that are really valuable and work to make money in the long term. Their owners generally offer useful lifetime support to update their clients regarding the hottest market fashions.

1. How to Create Bucks with an article of Genuine Online Forex Trading Software?

Some of the best currency devices include software that can help its users study market trends and even generates trades and makes income mechanically for its users. The entire package that I use offers me with an essential training on forex trading and what I should do to get in progress earning money from currencies trading. It must give you a clearer understanding of Forex trading and even introduce you to a complete host of devices and software that can make your trading processes simpler.

2. What Are the Most Common Drawbacks of Online Forex Trading Software?

Most programs and systems will want their users to learn and analyze difficult technical charts and terms needlessly. These complicated analysis courses can usually be eliminated with the right trading systems and software courses. These are the perfect type of tools that make large monetary organizations large income daily, and traders globally are constantly looking for the most beneficial Forex software. I presently use a software program also termed as an Expert Advisor that makes me money consistent every single month. - 23212

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Swim Clear Of The Sharks In The Stock Market

By Steve Wyzeck

Revealed for the first time... if you are losing money because of false breakouts in the stock market then you need to read this entire article.

This behind closed doors secret about institutional traders will save you from being ambushed. This secret has saved me thousands of dollars and now I'm breaking my silence to show you how to do the same.

You are about to learn a low down dirty trick that institutional traders use against you.

After reading this article, these dirty tricks might make you angry.

You may even want to forget you ever read this...

But I'll make you a promise - stick with it, hear me out...

And I promise you you'll be glad you did.

Because you will learn an entirely new way of looking at the stock market and in particular false breakouts...

We must define support and resistance and then look at in more depth what false breakouts really are.

Learning the how and why resistance lines and support lines form will help protect you against false breakouts.

When traders buy and sell a stock, they commit emotion to the trade. It is their emotions that will keep a market trending higher or send it into a reversal.

When a stock falls, some traders jump out and book profits, some traders jump out and take losses, and some traders hold on.

What you see on a chart is the emotional commitment, or lack thereof, coming from the crowd that is trading that stock.

The Main Reason Support And Resistance Lines Form Is From Pain

If someone trading a stock is still holding that stock when the price finally comes back to their cost basis, they are likely going to sell. It is painful to be in this stock and the trader simply wants to get out. This pain relief will temporarily stop a rally. These painful memories are why support and resistance lines form.

Let us say that a $20 stock drops down to $18 and stays there for a few weeks. The longer the $18 level holds, the more that traders believe that this is a good support level and buy the stock. Now right after buying, the stock falls to $15. Skilled traders will sell quickly and exit their position at $17 or at $16. Amateur traders will stay in their losing position until, one day, it rises back to their original entry level at $18. They will then sell this stock never to return. They eagerly jump out at the chance to "get out even". Their selling will temporarily stop a rally and form a resistance level.

Support and Resistance Lines Are Caused By Regret

Traders who discover a stock that has spiked up feel like they have "missed the gravy train". When the stock falls back to a certain level, the traders who felt regret at missing the first spike up are eager to jump in for a chance at a second spike up or upward move. Their buying forms a support level.

When you study a chart, draw support lines and resistance lines at recent bottoms and tops. You should expect the trend to slow down at these levels. Use support and resistance lines to enter positions or to book profits.

Warning: False Breakouts Are Caused By Institutional Traders

When the market rises about resistance and pulls in new buyers and then suddenly reverses and falls back below that resistance, this is called a false breakout.

A false downside breakout happens when a stock falls below support. The bears jump in and short the stock. Suddenly the stock reverses and heads back up retaking the broken support level.

Any stock chart can form false breakouts but be especially careful of any stock that has a high percentage of institutional ownership.

Institutional traders cause these false breakouts to make a ton of money off amateur traders.

Institutional traders can see all the limit orders for a given security. You and I do not have access to this information. They know exactly how many buy orders are waiting to be automatically executed above a certain resistance level.

What institutional traders will do next is what is known in secret, behind closed door circles, as "running the stops". A false breakout occurs when the institutions organize a hunting expedition to run stops.

For example, when a stock is slightly below its resistance at $30, the buy limit orders come flowing in near $28.50. The institutions calculate the liquidity ratio which measures how much the stock will go up if all buy limit orders are executed at $28.50. They calculate that the stock will run to $31 if all the buy limit orders at $28.50 are executed. They short the stock at $30 to push it down to $28.50. At $28.50 they cover their short position and go long as the wave of buy orders are automatically executed pushing the stock up to $31. If greedy traders start piling in, the institutional trader will stay long the trade. As soon as the buy orders start drying up, they sell short and the price falls back below $30. That's when your chart shows a false upside breakout.

False breakouts will knock you out of a trade. But don't do what most amateur traders do which is to take a single run at a stock and once stopped out, go bipolar and say the stock is bad and never return. Obviously there was something you fundamentally liked about the stock in the first place and that has not changed. Professional traders will take several runs at a stock until finally nailing down the trade they want. - 23212

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Tips for Trading Ascending Triangles Short

By Jeff Cartridge

Ascending triangles have been very popular with traders on the long side and are not so often traded when it breaks in the downward direction. An ascending triangle is defined by two lines, one on the upper boundary of the price movement which is horizontal and one on the lower side which slopes up.

Ascending Triangles Can Be Traded Short

Ascending triangles are definitely not one of the most predictable patterns that are available to trade short. With just 36% of the patterns breaking down ascending triangles also don't deliver good returns when they do. The average drop is 0.31% in 9 days with about half of the breakouts (44%) being profitable. These results aren't great, but selecting the right conditions can make trading ascending triangles better.

Improve Your Trades

As you would expect a break to the downside works better in a falling market environment, but the best trades actually occur at market turning points. By using filters that require the market and the stock to be in a consolidation or an up trend, while the sector is in a consolidation or a down trend, you can improve the results.

Ascending triangles that breakout early in the pattern, produce inferior results to those that breakout later. It is acceptable for the stock to move all the way to the point of the pattern before breaking out. The best results are achieved when the stock climbs up from the lower boundary and collapses back before reaching the upper boundary of the pattern.

If volume supports an ascending triangle breakout then the profitability of the trades improves. For volume to support the breakout, volume when the stock is going down should be greater than volume when the stock is going up.

Ascending Triangles Can Be Profitable

Following a series of simple rules to determine which ascending triangle to trade can improve results dramatically. By applying these filters ascending triangles are profitable on 52% of the trades and return an average of 1.07% per trade in 10 days. This is a profitable pattern to trade.

Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23212

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Forex Blogs and the US Dollar

By Bart Icles

Foreign exchange trading has indeed earned its place in the finance world. More and more new investors are joining this trading arena as each day passes and they are all attracted by the constant challenge of a risks and rewards game. Of all the currencies involved in this market, the US dollar remains as a popular in many forex articles. It is not unusual for a currency trading newbie to come across a forex blog that follows the changing trend in the performance of a US dollar.

Although seasoned forex investors will advise against following a single currency, one cannot avoid following the US dollar. This currency remains as one of the most popular headlines of many forex journals, newsletters, and articles. There are still many people banking on currency pairs that involve the US dollar. Thus, it is no surprise that there are lots of investors who are on the lookout for what will happen next to this intriguing currency.

In the past year, the US dollar has been facing against currency giants as its value plays around its lowest levels for the past decade. With all the economic, financial, and socio-political issues that haunt the US, many people thought that it would be unlikely for the dollar to climb up the ranks again. During the first quarter of this year, many forex investors were caught by surprise by the 200 pip changes between the US dollar and the Euro. They were even more surprised when they found out that the US dollar suddenly started to settle along the mean. Over the past few months, its value has safely danced on smaller pip changes.

Many forex blogs predicted that this apparent stability might again return to its volatile state with the surging oil prices and price hikes. Indeed, these factors have affected the US dollar in the past quarter but it did not result to significant pip movements. This led many speculators to think that there might be calmer times ahead for the US dollar.

In the forex world, nothing is constant. Changes happen every minute. Any forex blog will tell you that anything can happen to the US dollar between now and the next 5 minutes. If you are new to the forex market, it indeed helps to start trading using currency pairs that involve the dollar. This will allow you to learn more about the volatilities of the market as this currency surely attracts lots of changes. - 23212

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Selecting A Forex Trading System

By Bart Icles

The foreign exchange market grows more and more attractive as each trading passes. Investors are not only attracted by the sizeable profits that it can offer, they also want to know if they can really cope with the changing trends of the market. To achieve a more manageable trading experience, investors - both beginners and seasoned traders alike - use forex trading systems. It can be tricky to select a forex trading system that would best suit your needs so it is important to take note of some basics.

In the forex world, investors cannot simply tell what lies ahead of them and those who do not do something about this end up losing money and they eventually give up on forex trading. However, a wise investor would not totally give up on trading if he or she loses money. Instead, a wise investor would just take a step back and review the situation at hand and then go back to trading again. In a situation such as this, it helps to have a forex trading system that can help you get off on the right foot. Doing so, you will be able to save some money for yourself and hopefully become the next most profitable forex trader.

Different kinds of forex trading systems are available and they are based on the different kinds of traders that exist in the forex world. There are three types of forex traders in the currency market. The short term trader, also known as the scalper, likes to open and close a trade in just a matter of minutes. This type of trader takes advantage of the smaller movements in forex rates and large amounts of leverage. The long term trader looks forward to holding positions for months and months on end, and sometimes even years by making decisions based on long-term factors. In between these two are the medium term traders who hold positions for a couple of days by taking advantage of technical situations that appear to be more opportunistic.

To determine which forex trading system would best work for you, it helps to know what kind of trader you would want to become. Short term traders can lose large amounts of capital in just a matter of minutes but they are also able to realize profits faster. Medium term traders can safely hold their positions but they can easily miss out on big opportunities. Long term investors reap in the largest amounts of profit but they also require large investments to cover losses brought about by unpredictable movements.

In choosing a forex trading system, choose one that can be adjusted to your trading personality and your needs. Do not choose a system based on the needs of other traders because this simply will not help. Choose one that will allow you to be more creative on your side of the market, one that can help you achieve your goals in your forex career. - 23212

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