How A Computer Reads A Stock Chart - Secret Million Dollar Algorithm Revealed

By Terri Wise

I'm going to do something that is unheard of in stock chart and market analysis. I'm going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet.

This is a secret formula that is much more effective than just reading a stock chart.

In fact, I learned this method from a top secret artificial intelligence algorithm that has produced returns in excess of 1,000% annually known only to a few inner circle stock market club members.

This crazy simple formula can make any computer seem to actually be able to read a stock chart and predict future price action better than a human. Many years ago, software used statistics and models for processing. This secret algorithm goes way beyond that. It's like having 100 stock analysts and day traders inside your computer giving you recommendations!

My fellow inner circle club members have used this to make a ton of cash. I'm going to tell you exactly what this secret algorithm is.

Now you might be thinking how a formula this valuable can be given away free. Simple. I want you as a regular reader of my free blog. I figure if I can help you make a ton of cash you'll become a subscriber. That sounds fair.

We need to examine the trend. Get the 10 day MA, the 20 day MA, and the 50 day MA. The formula is: 10 day MA greater than 20 day MA greater than 50 day MA. So the 10 day MA should be above the 20 day MA. The 20 day MA should be above the 50 day MA. If this criteria is met, move on to the next step. If not, toss out the stock and start over.

The next step in this algorithm is to look at the previous day's close and the last hour of trading. If the stock closed above the 5 hour MA go on to the next step. If it has not, throw out the stock and start over again with a new stock.

Now in this next step, we need to see if the stock is trading at its 3 day high. If it is, read the next step below. If not, you know how this goes, get rid of the stock and find another one and start all over again.

The next step is to determine of the last price of the stock was above its 20 day MA. If it is, move on.

The next step is to see if the stock, during the previous week of trading, hit a new 3 week high. If it has, keep reading. If not, you know the drill, toss the stock out and find a better one.

In this component of the algorithm, we must look at the previous month of trading and then 2 months before that. What you need to determine is if the stock, during the previous month, hit a 3 month high. If it has, now that's a stock! If it has not, you must let the stock go and find another stock and repeat this process over again. - 23212

About the Author:

Don't waste the time doing this by hand, there is an automatic stock screener that can scan more than 25,000 stocks in 5 seconds. For more information go to Lance Jepsen's blog at stock chart

Understanding US Dollar Index

By Ahmad Hassam

The US Dollar Index is used by traders to get the big picture of the overall trend of the dollar. It is widely quoted in the press and on quote services. The US Dollar Index is traded on the New York Board of Trade at Finex and at the Chicago Mercantile Exchange (CME).

The Federal Reserve Board had introduced the US Dollar Index in 2003. The index is the result of the Smithsonian Agreement that had replaced the Bretton Woods Agreement. The US Dollar Index is similar to the Feds Dollar Index which is a trade weighted index. The Fed gives value to each individual currency in the index based on how much it trades with the US.

However, the US Dollar Index and the Feds Dollar Index should not be confused with one another. The value of US Dollar Index and the Feds Dollar Index is different. The US Dollar Index futures contract expires on March, June, September and December. The minimum tick on the US Dollar Index is 0.1. One tick is equals $10.

Delivery is physical and means that you receive dollars based on the value of the index. Delivery is made on the second business day during the month of the expiring contract prior to the third Wednesday. The overall value of the futures contract on the index is 1,000 times the value of the index in dollars. Suppose the value of the index is 80. Its value in dollars will be $ 8,000.

Delivery day is the third Wednesday of the contract month. No trading limits are placed on the US Dollar Index. Trading hours are from 8.05 AM to 3:00 PM with the overnight trading from 7 PM to 10 PM.

The US Dollar Index was modified at the inception of the Euro. It is weighted in a way thats similar to the Feds trade weighted index as follows: Highest percentage is for Euro 57.6%, second highest is Japanese Yen 13.6%, third highest is Great Britain Pound 11.9%, then comes Canadian Dollar 9.1%, Swedish Krona 4.2% and Swiss Franc 3.6%. The US Dollar Index is best used as an indicator of trends in the forex market.

However, you must keep this in your mind that the US Dollar Index is not as good a trading vehicle as the individual currencies. The best way to trade the index is by using the currency mutual funds. One of the secrets of knowing trading success is understanding what kind of personality you have. Are you weak nerved or strong nerved.

Spot Currency trading where you trade the spot currency market is not for the weak nerved. Suppose you are afraid of taking a coffee or bathroom break for the fear the market will move against you and in a blink of an eye you will end up with a margin call. In such a case you need to invest in currency mutual funds based on US Dollar Index and relax.

You are taking away the big part of the risk involved in trading currencies by trading these currency mutual funds. You can have a pretty good idea as to how your fund is going to close at the end of the day if you check the dollar index a few times during the day. - 23212

About the Author:

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

What to Learn As a Forex Currency Trading Beginner

By Jane MacRae

Forex trading might seem like an exciting opportunity to many of us, but you can not just waltz into Forex market without knowing enough. There are many places to start learning as a Forex currency trading beginner, and we will just cover some basics in this article.

Do you know that the Forex market is the biggest financial market in the world? You may think that the stock market is big enough, but it can not quite measure up the size of the Forex market. Even if you add the futures market to the stock market, the Forex market would still have a bigger amount of money being traded every day.

The door of the Forex market was opened to highly wealthy people only in the past, and you would be asked to present millions of dollars before your entry. Thanks to the presence of online trading companies, average investors can also have their share in this exciting field today. That being said, you still need to be able to afford the risk of financial loss.

When doing Forex Trading, people are actually buying and selling different currencies in the world. You buy one currency while sell another. As such, currency trading always involves pairs, and quotes of currencies also come in one currency against another. The major players include the U.S. dollar and the Canadian dollar (USD/CAD), the Euro and the U.S. dollar (EUR/USD), the U.S. dollar and the yen (USD/JPY) and the Australian dollar and the U.S. dollar (AUD/USD).

There are many advantages to trading in the Forex market. The transactions are fast because everything is electronic. You also are assured that there are often people who would want to trade with you. This is simply because there are so many people who are trading everyday and every hour of the day. You can buy and sell at anytime whenever you want to.

One other attractive aspect of currency trading is leverage. Your leverage capabilities are simply huge with a nearly unbelievable ratio of 200:1. With very minimal initial cash you can already manage a large amount of currency. This is probably the main reason why the market is quite attractive for those who want to increase their earnings impressively.

However, if you think you can get rich overnight in the Forex market, think it again. You can also lose in this game, and the loss can be just as huge as the profits if you take use of the leverage capacity. Those who do lose money are often those who act impulsively with the hopes of getting rich instantaneously. If you do not take the time to learn the inner wheels of Forex trading and the technical aspects of leveraging, then you could lose everything you have put into currency trading.

For any Forex currency trading beginner, the best way to dive into this game is to get well-prepared in terms of knowledge, practice, budget and psychology. If you are just an average player, you can pick an online company who offers virtual trading with imaginary currencies without any substantial cost or loss on your part. So, position yourself as a beginner and start by playing small, you can improve quite quickly and steadily. - 23212

About the Author:

Click here for our review of a leading forex trading tool in the market, which will grant you an unfair advantage over your competitors. You may also like to check out this related article on how to learn forex online.

Secrets of Forex Training

By Jacob Tremblay

The key to succeeding with Forex, just like in anything else in life, is to get the proper training. Common wisdom is that who you know is more important then what you know, but in some cases that's just not true. Does it matter who you know when you're trying to drive your car, or to paint a picture? No, of course not. Trading is a skill like anything else. To get good at it, all you need is the time, the materials... and of course the proper training.

Today's internet is filled with helpful articles, the library is stuffed with books, and there are so many courses on offer from so many places that it can be impossible to know where to start. Too many people get swamped by the sheer volume of information, and end up with so many conflicting ideas and suggestions they become completely paralyzed, not knowing where to start. The solution to this, if you really want to succeed, is something I call "information overload".

If you just want some quick and easy success, you can buy a Forex robot to automate the system for you. And sure, that will work, but it's not nearly as good as putting the time and effort into becoming an expert. It all depends on whether you're willing to commit the time to achieve true mastery. If you are, then information overload may be for you. On the surface, it seems a simple enough technique, but when practiced regularly it will allow you to become and expert in any field you wish - including Forex trading.

The first thing you need to do is to find an initial information overload source. So, head out to the public library, and ask them for the Forex training books. Once you've found them, pick one randomly. And I mean completely randomly - just close your eyes and grab one, any one. Doesn't matter.

Ok, now you've got your first information source - time to start overloading it. I want you to take this book, and keep it with you. Constantly, everywhere you go, and whenever you have the time, read a little bit. Even if you only read a couple of lines, you're still working through it. Read it in your lunch break. Read it on the bus. Read it before bed - especially before bed.

This is because whatever you are thinking of last thing at night, is what your mind remembers most strongly. So when you're trying to learn about something, falling asleep thinking about it helps hugely. The purpose of this is not to study the book. Don't worry if you don't understand it, or if you don't get something. Just shrug your shoulders and keep going. The important thing is to get as much information into your mind as possible.

When you finish that book, you can just go back and pick a new one and do it again. Keep going, until you've got enough info in there. You'll find that, once you've passed enough information through your brain, it starts getting overloaded, and things start coming back out. You'll find your mind wanders back to the things you've read, and information you weren't consciously aware of becomes available - maybe you see a chart, and suddenly realize you know what it all means. Don't worry, this is completely normal - you're doing great.

The second stage of information overload, is directed reading. Now you've filled your brain with knowledge, it's time to start learning. Go back to the library, and this time take a look at the books. You may be surprised at how well you know them, and can understand what they're saying. At this point, just let your instinct guide you - don't listen to anyone else. Your subconscious is full of Forex knowledge, and it knows what you need to learn.

By now you're full of information relating to Forex, and all you have to do is bring it to life. So go through the book carefully, and whenever you see something you don't understand, investigate it. You'll find that all the data stored in your subconscious will fall into place, allowing you to breeze through with almost no difficulty.

So you now have all the tools you need to become a master Forex trader. All that's lacking is practice - for that, I suggest you pick up a Forex software package. You need to get experience somehow, and most software packages will give you the tools you need to really come to grips with the material. In the end of course, the human mind is an amazing thing - and you have everything you need right there.

Here's to your success! - 23212

About the Author:

Jacob Tremblay is a long time stock market trader, who is now working on forex trading. Click here to check out his site, where he provides forex trading reviews of some of the leading systems.

An Easy Way To Pick The Best Stocks To Invest In

By Grant Dougan

One of the investments I like most are penny stocks. Since some individuals view these shares to be risky, I see a lot of people stay away from them altogether In reality, there's tremendous opportunity to make enormous money with penny stocks if you understand what to look for.

Typically I consider any share prices under $2.00 to be a penny share and focus on start-up companies rather than established companies. There are many businesses that are now trading under $2.00 because they have had certain difficulties. I will always search for businesses that are up and coming instead of organizations that are simply cheap because of troubles the organization has had. This makes it possible to earn some huge money in the future.

We should now take a look at the way you can find quality penny shares. When you know what to look for, you can start earning tremendous money.

The first step is to do is to analyze the industry that the organization is in. Is it a growing industry or a dying one?. Is the competition too large for a new company to be successful? This requires you to take a broad look at the industry to make sure that the organization is in an industry that affords them the chance to be a profitable company.

Next, of course you want to examine the organization itself. Are you happy with the management? You also want to look at what the business offers and determine if their product differs from what others are offering. Try to find businesses that either produce a unique product or differentiate themselves by having some different factor such as their pricing. It's definitely a good choice to find a company that offers something unique and sticks out from the other companies in some manner.

You should also take a look at the financial situation of the company, but don't be scared if you notice that the business has negative net income. Many growing or new businesses don't make income for the beginning years. Nevertheless I want to see that the business has funds available to them or financing so that they can continue to develop.

Do remember that it's always a smart thing to have the ability to find updates on the company. I love being able to visit a internet site where the organization issues updates because this lets me have a means to keep up to date on business updates.

These stocks can provide you with tremendous gains if the business starts to enjoy some success. There's incredible money to be made once you understand what to look for. - 23212

About the Author:

Click Here to learn more about real people who are earning cash trading forex . You can also see reviews on the most popular Forex Trading Programs.