Great Knowledge:STOCK TRADING

The ABC’s of Stock Trading Success

Stock trading success…why is it so elusive?
With all the trading information, systems, trading advice and assistance available today, the fact that most people who attempt to profit from trading Stocks lose money seems quite bizarre.
Can you imagine the millions of dollars that must have been spent by countless traders on courses and Stock analysis software, that was wasted because the buyers didn’t understand the key principle of trading success I am about to share with you now.
We aren’t going to need any charts for this lesson…just your ability to comprehend the value of what I am about to share with you and your willingness to take action – right now I want to share with you the ABC of trading success.
If trading was an easy business to master and profits were freely available to all, every punter with a computer and a free charting program would be a millionaire and the streets of our cities would be clogged with chauffer driven limousines.
The fact that the majority of the population have no idea how to make a buck from the Stock Market, often after spending large amounts of money on education and trading losses, made me wonder why this is so.
I searched for the answer to profitable trading for years, until I found it in an unexpected place, when I wasn’t looking for it at all.
You may be able to relate to this story, or you might just be starting out and this will help you to reduce the time you spend in your initial learning stages and speed up your path to profits.
Let me tell you about Jim (not his real name…of course). Jim first started trading after answering an ad in the Brisbane Courier Mail for a popular trading education package that cost him around $1000.
Little did he know that the fateful investment in that course would lead him into the abyss of Gann analysis, and that it would eventually cost him thousands of dollars in courses and trading losses to pull himself out the other side.
He read the course, watched the videos, read the course, watched the videos…you get the picture.
Losses, losses, small profit, losses.
He felt that because of his limited knowledge, he had to learn more and more in order to stop the losses and to start profiting from the market. So he spent more and more on courses – and his trading got worse and worse.
The more he learnt, the less he seemed to know and the worse his results became.
Then, he finally learnt about the A, B, C triangle of success, in trading and in every other area of life, from one of his property mentors – John Fitzgerald.
The A, B, C stand for -
A – Awareness
B – Belief
C – Conduct
Awareness – He realised that he already did in fact know enough to become a successful trader and investor. He had studied many books and courses on trading and had everything he needed in the way of practical trading information to make a profit.
He was aware of what it took to trade profitably. He could become a good, a great trader, if he could just develop the second factor…
Belief – If he could bring himself to believe that he was a good trader, he would become a good trader.
He didn’t need more knowledge at that time, because he had a firm grasp of the basics. He simply had to believe in himself and his abilities and the profits would follow.
The third leg of the success triangle -
Conduct – Was were he was falling down.
He would look at a chart of a Stock or market, and decide on a trading strategy using his understanding of trends – he was calm, detached and unemotional – just like his written trading plan told him to be.
His success rate was good at finding profitable trades – but his conduct was the problem…
He had no trouble placing the trade while the market was closed. He would simply call his Broker and give him the order.
Then, the market would open. His calm, detached, unemotional state would turn into panic.
He would feel physically sick at times, scared in case his analysis was wrong and he lost money on the trade.
He honestly believed that he couldn’t afford to lose any money (the poor mans mindset) so he focused on losing.
He got what he focused on…

He watched his trades like a hawk, and at the first sign of a reversal against his position, he would either call his broker and exit the trade, or move his stop loss order to a place where he was virtually guaranteed of being knocked out by the normal fluctuations of the market.
He simply had too much leverage – he was over trading.
He was continually setting himself up to fail.
His conduct was the weak link in his trading success triangle.
Because he was continually losing money on his trades, albeit only small amounts, his belief system started to falter, and he saw himself as a losing trader even more – then he started to think he had two weak sides on the success triangle – conduct and belief.
He started to question the system he was using, which he had painstakingly back tested, over many markets on hand drawn charts and knew was solid, but his failure to have control of his conduct or belief made it look like it wasn’t a good system at all.
So, how to fix it…
He sat down and looked at his recent trading results, and noticed that on most occasions, if he had stayed in the trade, he would have made a profit. His system was valid. His Awareness was enabling him to find and execute profitable trades.
His Belief system needed a gentle prod after several losing trades in a row, but because he had done so much study and work on back testing, he knew he deserved to be successful.
He started to visualise himself in his trading room, making profitable, long term trades and enjoying the benefits that this type of trading would bring to himself and his family.
Then, he worked on his conduct. He again wrote out his trading plan, and decided that he would treat his plan like a shipwrecked sailor treats a life raft.
He would cling to it until he was forced out of a trade by the actions of the market, not by his fearful, emotional response to the actions of the market.

He started placing his stop loss orders in a position so that the market had to change trend in order to take him out of a trade. In other words, a logically placed, technically correct stop loss position.
He then reduced his position size to allow for these stop loss orders being further away from the price action, so that his account was never at risk of being totally wiped out by one serious loss.
He did a pre-trade and post trade analysis sheet, so he could analyze his performance and try to consistently improve his results.
(This can be as simple as a sheet of paper where you write down your order, the position of the market and your thoughts and feelings before, during and after a trade.
Or it can be an elaborate system of checks and balances that guide you through each of your trades. Be careful though – keep it simple or you probably won’t use it!)
Once he started to do this, he started to make money (with the exact system we have been teaching you on this Website).
(There are, of course, many other strategies and systems you can use in addition to the lessons we teach you to increase your profits, but to start with, these methods are all you really need to become a profitable trader.)
We are always learning and improving – every trader should strive to do this also.
When you are making consistent profits using the methods we have shared with you, investigate some of these additional entry and exit techniques, but not at the start. Keep it simple.
When he started to trade this way, he found it was far better to take a small position with a loose stop loss and be able to sleep at night, than his previous strategy of using maximum leverage and stressing out whenever he was in the market, to the point where he couldn’t stand to walk away from his screen in case the position went against him.
This method sets up lots of profits and a few losses. Much better than the alternative he had previously used.
He then started looking for Stocks that trended strongly for long periods of time, and was drawn to the US Stock Market.
He used exactly the same entry and analysis techniques I have shown you on the Website, and -

• He bought Call options in Gen Probe Inc (GPRO) with the Stock at $27 and held on until the Stock price was $58 three months later.
• He bought Pacificare Health Systems Call options (PHS) when it was trading at $24 and held them to $51 four months later.
• And he bought Sandisc Corp Call options (SNDK) with the Stock at $24 and held them to $58 less than four months later.

(Please Note – these are not Stock recommendations, they are merely mentioned here for illustration and educational purposes and the trades are hypothetical examples).

Can you imagine the change in the size of his trading account balance?
None of these Stocks had given him any reason to sell earlier, so he simply held on for the ride…Awareness, Belief, Conduct…the success triangle.
The Awareness will come when you study and really ‘get’ the lessons on the Website and in the Newsletter.
Study the lessons carefully, read books written by the masters. Teach others what you have learned – you will gain a better understanding yourself.
All human interaction is a chance to learn or to teach.
By teaching someone else and sharing your knowledge, you will learn any subject at a deeper level.
You ultimately go from an intellectual understanding to an emotional understanding (as Robert Allen calls them, an aha!) of your chosen area of interest, in this case, profitable trading. Try it…
The Belief will come when you back test the Trading Plan I share with you on the Stocks that you want to trade and prove to yourself that it does indeed work.
Visualize yourself making a series of profitable trades. Feel how good it is to see the market moving in the direction you expected it to.
Imagine spending the profits you make trading Stocks with your family and friends, and the time you will have to do the things you want to do instead of the things you have to do. Successful trading gives you the ‘time freedom’ to do whatever it is that you want to do with your life.
Do it first in your mind, and then do it in the market.

Your Conduct – well that’s up to you. Will you ‘decide’ to look at your written trading plan as your life raft? Cling to it as your last defense against the emotions of fear and greed that live inside each one of us?
Will you trade with the trend, enter off 1 to 4 day reactions to the main trend, reduce your leverage or position size and put your stop loss orders out of the way, so the market has to change trend to get you?
If you do this, you should be confident that you can achieve trading success. That is our wish for you. Good luck.
Now, lets review today’s lesson -

• The Trading Success Triangle has as it’s three sides – Awareness, Belief and Conduct
• If any of these elements are weak or missing, the triangle has no strength
• The sides are all important and are dependent on each other, but Conduct is the most difficult for the average trader to master
• Fear and Greed act to change our conduct from what our rational thoughts tell us is the correct course of action, to actions that aren’t always in our best interests
• By controlling Fear and Greed, we can make rational decisions that help us to become profitable traders
  I hope this lesson has helped you in understanding the mindset of a successful trader a little better.
  Understanding these three critical elements of trading psychology will put you well on the way to a profitable trading career.
  Get this, and your trading success is practically assured. Miss the lesson, and your chances of making big money in the Stock Market are profoundly limited.
  Please feel free to share this lesson with your trading friends and associates – they will thank you for it

Trading For Beginners

Trading is becoming more popular every day and for good reason. Fortunes can be made in a day. The market is traded up to 20 billion a day. Yes, each day.
Trading is not necessarily easy. It takes often years to really get the hang of it. With that said let me tell you what you can do to get the hang of it and not lose your butt while doing it.
There are several brokers out there that offer free demo accounts. Use them! A demo account uses all the real world information, but it does not place real trades and thus real money. This gives you all the time and resources you would ever want to start learning.
You can treat your demo account just like you would if it was real. And you should do exactly that. If you really want to learn, pay attention like it was real money.
Many of the demo accounts are quite advanced too. They have rich tools to help you analyze the trades you made and lots of other info at your fingertips.
Get a demo account and spend a lot of time with it. In time you can learn enough to start making real trades. However, until you are making money just about every time with your demo account I would not put real money into it. You are simply asking for trouble. It is never a good idea to invest in something that you do not fully understand.

I actually spent just about a year on my demo account before I invested one dollar in real money. It was worth it! My first 4 - 5 months I was losing money consistently, which at the time was discouraging, but you have to learn. However, I am proud to say that I really did not lose Rs.60,000. It was just demo money.
We all dream of quitting that day job, but I can assure you that if you do not do your homework you will surely fail. The good thing is that you will only fail at first. With enough practice and patience you can succeed.
The trick is to study. When your brain is fried from all the Forex info then study some more. Keep at it and in time you will succeed.

MOST IMPORTANT:-Same Investment & Not the Same Quantity

Same Investment & Not the Same Quantity

When we start a new business we always calculate the profit as per our investment.If we Invest Rs.5.00 lac's, At least we expect 15% P.A.in returns.But in the case of STOCK MARKET we never calculate in that way.We see the price of particular script & than as per the price we invest.Some of the Investors get scare due to high price of the script.

For example:-if price of RELIANCE INDUSTRIES NSE CASH IS 1000/-per share.We buy only 25 shares.That means we invest 25000/-
In other case-If price of UNITECH NSE CASH 100/- per share.We buy 1000 shares.That means investment is of Rs.100000/-

SCRIPT 1-INVESTMENT OF Rs.25000/-
SCRIPT-2 INVESTMENT OF Rs.100000/-

At the end of the month how you calculate the profit?When you invest different amount for every different script depending upon the price of the script..Because you don't aware that how much amount you invest in every script.Now you can't calculate the profit in returns.

But if you invest same amount in both the script.
 INVESTMENT OF Rs.100000/-
RELIANCE INDUSTRIES:-100000/1000(CMP) (value of shares)=100 Shares
UNITECH :-100000/60(CMP) (value of shares)=1666 Shares
In both the script prices is different still if you earn 5% in returns,you earn same amount from both the script.That is Rs.5000/-

So investors please invest same AMOUNT in every script.
Don't see the price of the script for investment.

Trading For Beginners

Trading is becoming more popular every day and for good reason. Fortunes can be made in a day. The market is traded up to 20 billion a day. Yes, each day.
Trading is not necessarily easy. It takes often years to really get the hang of it. With that said let me tell you what you can do to get the hang of it and not lose your butt while doing it.
There are several brokers out there that offer free demo accounts. Use them! A demo account uses all the real world information, but it does not place real trades and thus real money. This gives you all the time and resources you would ever want to start learning.
You can treat your demo account just like you would if it was real. And you should do exactly that. If you really want to learn, pay attention like it was real money.
Many of the demo accounts are quite advanced too. They have rich tools to help you analyze the trades you made and lots of other info at your fingertips.
Get a demo account and spend a lot of time with it. In time you can learn enough to start making real trades. However, until you are making money just about every time with your demo account I would not put real money into it. You are simply asking for trouble. It is never a good idea to invest in something that you do not fully understand.

I actually spent just about a year on my demo account before I invested one rupee in real money. It was worth it! My first 4 - 5 months I was losing money consistently, which at the time was discouraging, but you have to learn. However, I am proud to say that I really did not lose Rs.6,000. It was just demo money.
We all dream of quitting that day job, but I can assure you that if you do not do your homework you will surely fail. The good thing is that you will only fail at first. With enough practice and patience you can succeed.
The trick is to study. When your brain is fried from all the info then study some more. Keep at it and in time you will succeed.
Just remember to use a demo account to learn how to do it.

Exploring The World Of Day Trading

Are you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you.
What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours.
Day trading happens only during the day. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover. During the day trading, they quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Day traders will make a purchase of a stock, hold it for only minutes watching constantly for the stock to go up or down, selling if it goes down only two or three cents and holding if it goes up to about five or six cents and selling. The stock is almost never held over night as there are many other opportunities and a stock that takes hours to move is not worth holding.

Day trading can be a very high paced and stressful lifestyle. There are millions of day traders across the world but it can be a very fast way to lose everything. Some people are making over 50000.00 a day but it takes months and sometimes years to learn and master day trading.
The broader meaning of the term day trading includes those who trade daily from their homes or offices, through Internet brokerages. These day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. The latest buzzword for this is "swing trader," those who keep a stock within in a few days before finally selling them. To some, particularly the so-called bandits, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch everyday price fluctuations.
Day trading requires a certain amount of capital. Generally, day trading should have enough trading capital to buy at least 1000 shares of any given stock on any particular day. There are very few stocks priced under Rs.200 that have the degree of liquidity necessary to make them suitable for day trading. This means that a novice day trader should normally have day trading capital of at least Rs.20,000 to start. In addition, the new day trader should treat this as 100% risk capital and should not have to unduly worry that the whole amount of this capital may be lost very quickly.
You must also be aware that not all stocks are suitable for day trading. Day trading should never trade unlisted or thinly traded (low volume) stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your day trading position quickly at a fair price. Trade only high volume, well-known stocks.

Day Trading Stock

Day Trading Stock

Day trading stock can be a great way to make profits in today’s market.
The concept is simple: You enter a stock position at or after the open of the day and you exit the same stock position at or before the close of the day.
Stock selection is important in day trading stock because the time frame in which you can profit is much shorter that in medium and long-term trading strategies.
Stocks that have a large range during the day are preferable. This simple logic is that the more a stock moves during the day the greater potential a trader has for profit during the day. Profits can be made day trading stock with smaller intraday ranges. Remember, thought the smaller the intraday range the more shares you must trade to make a profit.

Let’s look at an example Stock A has an average intraday range of 5 points and Stock B has an average intraday range of 1 point. Assuming a perfect day trading stock execution in each stock you would have to trade 5 times as many shares of Stock B to equal the profit of of Stock A. Also consider that with the number of shares traded commissions costs will also rise.
Commissions costs will logically rise in some instances when day trading stock because the more frequently you trade the higher your commission costs will be. Obviously if you trade 10 times a day every day your commission costs will be higher than if you traded the same number of shares once per week.
One of the characteristics of day trading stock that traders like the most is that there is no overnight risk. When you close your positions for the day that’s it. Your positions won’t be affected by any bad news or earth-shattering events.
Many traders prefer this method of trading because they say it lets them sleep at night.

Trading Info - How to Start a Successful Trade Operation

Trading Info - How to Start a Successful Trade Operation

Take your time to read these few lines, as I am going to provide you with some essential trading info.
First thing you should know is that the market is very profitable, because you can make money every time it moves, and believe me, it never stops moving.
However, as any other trading operation, trading will involve a risk, so you need to make sure that you reduce it as much as you can. To do this you need to find reliable rading info focused precisely on showing you ways to ensure a high performance within the market.
But what  trading info should you look for in order to achieve that goal?
ell, simply look for  trading info about educational products and other tools designed to put you on the right track.
I cannot tell you enough how important this is, because when I first started with trading I decided to read a little bit here and there, and settled for some trading info provided by friends already in the market, I thought I was invincible.
As it turns out, I did not do so well. Thankfully I did not lose much money and I managed to make a profit, but not nearly as much as what my friends were making.

That obviously meant that I was doing something wrong, so to turn things around and start making it right, I knew I had to go out and find reliable trading info about educational products or trading tools that would allow me to enhance my performance fast.

I knew that would not come without a cost, but before I payed a dime to anyone I did some insane research, and I found several places dedicated to providing  trading info. Most of the websites I found where not very insightful, and some of them were too sale oriented. However, I kept gathering information and getting an idea of which way to go.
After visiting tons trading info sites, I concluded that you can improve your trading performance in basically three ways:
1) By taking a trading course, which involves purchasing a good and easy to swallow e-book.
2) By getting a  trading assistant, which involves purchasing a good software or system designed to provide you with reliable signals to enter and exit the market at the right time for a profit.
3) By getting an automated Trading system, which involves purchasing a good software designed to place trades and close them automatically for a profit.
When confronted with these alternatives, I simply did not know where to start because you see, to me any of these options were good choices.
Indeed, you can never go wrong with the first option, because knowledge is always a good thing, but if you can not -or do not want to- put the right amount of effort into the learning process, you can end up losing money instead of making a profit.
The second option sounded even better to me because I would not have to make much decisions, since I simply would be pointed out the right moment to place my orders and close them for profits. However I would have to be attentive of the market movements during the day.
Being lazy as a I am, I decided to start by taking the third option, because with this one I would not need to dedicate a lot of time in order to profit from the market (although after a few months with automated trading I decided to invest in a Trading course too). Indeed, the automated system did all the work, including placing and closing the trade orders, and up so far with over 90% success rate.
So as you can see, I ultimately improved my performance as I wanted, but not before I did my homework searching for good trading info.
As I told you before,trading is a very profitable business, but you need to understand that you rely on market movements to make money, so if you are not in the right place at the right time, you could miss a lot of profitable entry points. By having the right tool you will never have to go through that.
So before you put a dime on trading, start by getting some good trading info about educational products and tools that will allow you to become a successful trader from the very start. Avoid wasting time and money like I did and make money from day one.

Trading future

Today, trading futures is one of the best and most profitable financial investment methods. Of course, trading on the stock market is not for the faint hearted. You need to be strong, have the ability to take risks, as well as have the emotional strength to overcome a significant loss. A highly leveraged market, the trading futures market doesn't discriminate and offers everyone an even playing ground to try their luck. From Warren Buffet to Donald Trump to others, trading futures is a profitable and interesting way to make money and climb the ladders of success. Of course, you should never take futures trading lightly and continue to educate yourself in the latest techniques even if you have been trading for some years. Remember, a sound trading strategy and knowledge about the market you are trading in are your biggest defense against any potential damage.

Whether you are already trading in the stock market or have some experience, trading futures is a completely different ball game. It is advisable to have access to some professional and expert advice. However, if you are looking for a broker, you should check the experience, reputation, fees, testimonials, and customer support of the broking firm before choosing them. An experienced broker can be a highly valuable help in making money from trading futures. Not only does a broker know the latest market trends, he also knows some of the tricks and effective trading methods that can prove to be beneficial for both of you. While their charges may be slightly high, the fact that they can bring you heavy profits while adding worth to your portfolio of futures can not be neglected.

 

Brokers also help if you are new to trading futures. Since there are so many choices, he/she can help you choose the more popular and most traded commodities as well as educate you on the contracts that are best for your investment types and requirement. After all the formula for success in trading futures is simple and can be written as success = knowledge. With so many types of online trading systems, you'll have just too much information to sort and utilize. However, a broker can do this for you with relative ease, leaving you with time and ability to simply take advantage of the various trading future trends. Some of the factors for future trading include the capital requirements; the leverage; liquidity; and volatility.
Today, trading futures online is a quick and easy way to high profits and more comfort. Whether you are at work or at home, access your futures trading system online and making sales and purchase can be a very easy and responsive affair. So also, the commission charges for online futures trading firms are lower than brick and mortar firms. While this doesn't guarantee profitability, it surely eliminates the need for visiting your broker on a daily basis for carrying out trading. Seeking help of professional broker is very important for ensuring you can minimize your losses and avoid possible pitfalls.

Day Trade Penny Stocks - Your Way to Financial Freedom Today

If you can day trade penny stocks, you can make a killing in the stock market! Many people think thy cannot day trade penny stocks but they are wrong. Anyone can day trade penny stocks with great success. All it takes is a few tricks many people do not know. Well, I have been day trading penny stocks for a long time now and I know what works. If you follow these simple tips, you can day trade penny stocks just like the best of them.

 
Some people say that is to risky to day trade penny stocks but that is just not true. If it was to risky, people would not do it everyday for years. The thing that gets most people is they do not know what to look for in a company. They pretty much just pick a penny stock at random and go for it. You cannot successfully day trade penny stocks this way. It has to be with informed decisions and educated guesses.
To day trade penny stocks is all about trends in a company's history. If you look back at a company's history you will see trends in there stock price. It may rise for a while then plummet, only to slowly rise again over a few weeks. Knowing that this company follows such a trends lets you know when it is a great time to buy. Once that company's price plummets, you know that it is most likely to raise over the next couple weeks. It is that easy to make a profit with very little risk.

So how do you do this and make a big six figure income? You document the trends of many companies. That way you are likely to always have a company to invest in for a low risk profit. Most people make the whole process to difficult to day trade penny stocks. It really is not that hard! Once you fall into the right method and approach, you will become very confident and invest more money. That turns into a bigger profit and complete financial freedom!
Keeping track of so many stocks can be difficult at first but with a little practice it becomes very easy. You can find a review of my favorite tool I use to day trade penny stocks here.Not only does it help me stay very organized, it even tells you good buys based on past trends. I highly recommend it to anyone. Thank you for reading and good luck!

Trading Education - How Long Should I Demo Trade?

Demo trading is an indispensable aspect of every retail trader's career. It would be foolhardy to trade 'live' in the market without first getting your feet wet with paper trading.

What Is Demo Trading?
Demo trading (or 'paper trading') involves normal trading activities such as entering into buy (or sell) trades, setting stop orders, and exiting the market. It's basically the same as actual trading except for one crucial difference: you're not trading with real money.

Most brokers provide this service at no cost to retail traders because they hope the retail traders will move on to using their paid services when ready to 'go live'. The brokers will typically provide you with a demo trading account where your winnings (or losses) are calculated, and also a trading platform for you to monitor the market and to place your trades with.



Why Is Demo Trading Recommended For Beginner Traders?
It allows new traders to familiarize themselves with the brokers' trading platforms - for example, to learn how to place buy and sell orders, as well as how to set stop orders etc.
It's a common occurrence for new traders to enter into a buy trade when they want to sell, and vice versa. Without a paper trading account, they'll be paying for such simple errors with real money!

 What Demo Trading Can't Help You With
Within the 'safety net' of a paper trading account, many conservative traders are unwilling to start 'live trading' accounts. These traders take comfort in knowing that they can't lose any real money.
This is a dangerous mindset to adopt because actual trading inherently involves taking real risks. When amateur traders grow too comfortable within the confines of a demo account, they stop their learning process: the important aspect of psychological discipline is ignored.
So don't wait until you're completely sure that you're making money before you trade 'live'. That day will never come. My advice is to trade live as soon as you've mastered the controls of your trading platform, but to trade with smaller amounts first.
One of the most important lessons to be learnt in  trading is how to manage the psychological impact of actual losses, and you can't get that by paper trading.

Swing Trading For Beginners

Swing Trading For Beginners

The swing trader is not looking to turn a profit in a day. He will hold a stock anywhere from three days to three or four weeks.
This trading technique is most suitable for people who do not have the time to dedicate to sitting in front of a computer to monitor the markets when they are open. Many traders who are novices find swing trading to be the style that they are best suited for.
Swing traders tend to pick stocks that are traded on the big three exchanges which are the NYSE, AMEX and NASDAQ. The reason that they stick with stocks traded on these markets is because they are the most actively traded markets so these stocks have the greatest chance of going very high or low in a given day. This means that the swing traders wont have to hold onto stocks too long before making a profit.
Swing traders prefer to trade when the market is not in full bull market or in full bear market. Swing traders are poised to make the most profits when the market is relatively static. The swing traders will make money with short-term movements in the market.

As a swing trader, you will not make a lot of money with one trade. The profits will be aggregated from making multiple trades over a period of time. Swing traders will only buy and sell once the stock has reached its baseline, so that they could make their trade at the best possible moment to get the most bang for their buck.

A swing trader will attempt to earn a 10-15% gain on his investment, which makes it a viable strategy for beginners, but would also have enough profit potential to interest intermediate traders too. To make the most gains, swing traders try to sell their stocks as close to the upper or lower margins without jeopardizing their chance at missing the large gains. If a swing trader waits too long he runs the risk of the market turning around and hell wind up losing money instead of gaining.
With practice, a swing trader can learn to read the market indicators and avoid this from happening often.
The great thing about swing trading is that beginners find out pretty quickly whether their decisions to buy or sell have paid off, which can be an enormous incentive to continue. Swing trading isnt as quick as day trading to see a return on your investment, but it also doesnt require the attention to market conditions and details that is necessary for day trading to be successful.
In addition, swing trading is also a lot less stressful than day trading. Day traders often find themselves stressing over all of the stock trades they have to make in a day and hope that they have made the correct decision.
Penny Stock Trading can be the most lucrative form of making money in stocks. What other vehicle can make 500%+ in less than one month?
Learn to trade the correctly and you can make a fortune.

Currency Trading Made Easy With Tips

Currency Trading Made Easy With Tips

I'm going to share with you that make currency trading made easy. There is an undeniable opportunity for new people to enter this market and build an income. The great thing is that you're not involved in a cut throat business against all other traders. All you're doing is trying to profit along side each other

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• Routine, Routine, Routine: The best way to become successful in this business (or any other business) is through routine. What makes you successful is those little things that you do everyday, day after day. That's what a routine does. Not only do routines allow you to apply the same profitable acts over and over again, it also has a mental affect. Have you ever had a rough day at work and come home, only to find yourself thinking "what should I eat?" Well, in that situation, you probably were less likely to actually make a decent meal. You're more likely to order pizza or eat something easy fattening. The reason is that thinking uses energy and you don't always have it. Routine doesn't require thinking. It is just an action. When you have a routine for trading, you don't have to waste all your energy on thinking about what needs to be done, you already know and you just do it.

• No Bargains: There are no bargains or buys. There are cheap prices or on sale. You're a trader, not a consumer. The cheapest price isn't profitable. You make decisions on profit and profit only. You don't buy the cheapest currency, you buy the most profitable. How is profit determined? It is all determined by the sell price. What you sell for is what determines everything. You need to concentrate on figuring out the sell price you will get, than at that point, you can determine a bargain.

• Software: All workers have tools for their job and this is no different for the people trading currency from home. Software was designed for the analytical, repetitious, mundane tasks you have to do to trade. Save yourself time and have software like Tradology Killer do this.

Same Investment & Not the Same Quantity

When we start a new business we always calculate the profit as per our investment.If we Invest Rs.5.00 lac's, At least we expect 15% P.A.in returns.But in the case of STOCK MARKET we never calculate in that way.We see the price of particular script & than as per the price we invest.Some of the Investors get scare due to high price of the script.

For example:-if price of RELIANCE INDUSTRIES NSE CASH IS 1000/-per share.We buy only 25 shares.That means we invest 25000/-
In other case-If price of UNITECH NSE CASH 100/- per share.We buy 1000 shares.That means investment is of Rs.100000/-

SCRIPT 1-INVESTMENT OF Rs.25000/-
SCRIPT-2 INVESTMENT OF Rs.100000/-

At the end of the month how you calculate the profit?When you invest different amount for every different script depending upon the price of the script..Because you don't aware that how much amount you invest in every script.Now you can't calculate the profit in returns.

But if you invest same amount in both the script.
 INVESTMENT OF Rs.100000/-
RELIANCE INDUSTRIES:-100000/1000=100 Shares
UNITECH :-100000/100=1000 Shares

If you earn 5% in returns,you earn same amount from both the script.That is Rs.5000/-

So investors please invest same AMOUNT in every script.
Don't see the price of the script for investment.

 

How to Use Fundamental Studies to Supplement Technical Analysis

 

There are 2 methods of trading in a particular stock. And these methods are known as fundamental analysis and technical analysis.
There is a wide difference between fundamental analyst and technical analyst.
Fundamental analysis investors are those people who take the pains to do certain research about the stock. And then take decision whether to invest or not in a particular stock.
Technical analysis investors are the people who try to evaluate a particular stock and then take decision whether to buy a particular stock or not. They try to find a brief history of the stock and then only they take a decision of investing in a particular stock.
It must be noted that both the methods have their own advantages. Technical analysis investors would but those stocks in which a huge investment is done by other thinking that in future the value of these stocks would go high. These are the investors who follow the crowd and don't take pains to take their own decisions.
On the other hand fundamental analysis investors would take pains to do a brief research about a particular stock and then only they would take the decisions of buying that stock.
Some investor can become a specialist in any one the methods. They try to gain specialize knowledge of any one method. The investors who specialize in technical method are considered to be reliable tool. On the other hand fundamental investors consider this method to be superior to any other method.
Since the technical investors try to find he brief history of the stock so they able to predict the future price of the particular stock. This is the most important advantage of technical analysis. And this method is beneficial for short term and day traders. Where as fundamental analysis is beneficial to long term traders.
According to technical analyst a brief history of the particular stock gives the brief idea about its future performance. But according to IPO or mutual fund the history of the particular stock is not the best way to predict its future. Technical investor take look at the brief history of the performance of the stock but do not consider the other factors that might change the situation in the future.
Fundamental analysts are the investors who take care of factors that might change the price of the stock in future. One should try to gain the latest knowledge about a stock that he is willing to invest in.

Future Trading

  Today, trading futures is one of the best and most profitable financial investment methods. Of course, trading on the stock market is not for the faint hearted. You need to be strong, have the ability to take risks, as well as have the emotional strength to overcome a significant loss. A highly leveraged market, the trading futures market doesn't discriminate and offers everyone an even playing ground to try their luck. From Warren Buffet to Donald Trump to others, trading futures is a profitable and interesting way to make money and climb the ladders of success. Of course, you should never take futures trading lightly and continue to educate yourself in the latest techniques even if you have been trading for some years. Remember, a sound trading strategy and knowledge about the market you are trading in are your biggest defense against any potential damage.

Whether you are already trading in the stock market or have some experience, trading futures is a completely different ball game. It is advisable to have access to some professional and expert advice. However, if you are looking for a broker, you should check the experience, reputation, fees, testimonials, and customer support of the broking firm before choosing them. An experienced broker can be a highly valuable help in making money from trading futures. Not only does a broker know the latest market trends, he also knows some of the tricks and effective trading methods that can prove to be beneficial for both of you. While their charges may be slightly high, the fact that they can bring you heavy profits while adding worth to your portfolio of futures can not be neglected.

Brokers also help if you are new to trading futures. Since there are so many choices, he/she can help you choose the more popular and most traded commodities as well as educate you on the contracts that are best for your investment types and requirement. After all the formula for success in trading futures is simple and can be written as success = knowledge. With so many types of online trading systems, you'll have just too much information to sort and utilize. However, a broker can do this for you with relative ease, leaving you with time and ability to simply take advantage of the various trading future trends. Some of the factors for future trading include the capital requirements; the leverage; liquidity; and volatility.
Today, trading futures online is a quick and easy way to high profits and more comfort. Whether you are at work or at home, access your futures trading system online and making sales and purchase can be a very easy and responsive affair. So also, the commission charges for online futures trading firms are lower than brick and mortar firms. While this doesn't guarantee profitability, it surely eliminates the need for visiting your broker on a daily basis for carrying out trading. Seeking help of professional broker is very important for ensuring you can minimize your losses and avoid possible pitfalls.

Day Trade Penny Stocks - Your Way to Financial Freedom Today

If you can day trade penny stocks, you can make a killing in the stock market! Many people think thy cannot day trade penny stocks but they are wrong. Anyone can day trade penny stocks with great success. All it takes is a few tricks many people do not know. Well, I have been day trading penny stocks for a long time now and I know what works. If you follow these simple tips, you can day trade penny stocks just like the best of them.
Some people say that is to risky to day trade penny stocks but that is just not true. If it was to risky, people would not do it everyday for years. The thing that gets most people is they do not know what to look for in a company. They pretty much just pick a penny stock at random and go for it. You cannot successfully day trade penny stocks this way. It has to be with informed decisions and educated guesses.
To day trade penny stocks is all about trends in a company's history. If you look back at a company's history you will see trends in there stock price. It may rise for a while then plummet, only to slowly rise again over a few weeks. Knowing that this company follows such a trends lets you know when it is a great time to buy. Once that company's price plummets, you know that it is most likely to raise over the next couple weeks. It is that easy to make a profit with very little risk.

So how do you do this and make a big six figure income? You document the trends of many companies. That way you are likely to always have a company to invest in for a low risk profit. Most people make the whole process to difficult to day trade penny stocks. It really is not that hard! Once you fall into the right method and approach, you will become very confident and invest more money. That turns into a bigger profit and complete financial freedom!
Keeping track of so many stocks can be difficult at first but with a little practice it becomes very easy.

Why Tradology Trading is the Answer to a Struggling Economy

I know it may seem strange hearing that Tradology trading is the answer to a struggling economy. Especially when you consider how much the economy affects the value of currencies. But if you think about it, how many other businesses are completely recession proof? In the times we live in, there is no better freedom than being your own boss. Tradology trading gives you that option along with many other perks.
It seems like all you hear in the news is how many people are getting laid off, how many people are losing their homes, businesses going under, etc... Obviously times are tough. Small time traditional bricks and mortar business are struggling to succeed now more than ever. What makes Tradology trading so amazing is that your business can be as successful when the economy is flourishing or during a recession. As long as you are able to trade on either side of the market (long or short) it you can be successful.

Another great advantage to trading is that you can save so much money on gas. This didn't use to be such a big issue but in the times we live in, people are going broke just filling their gas tanks. Think of how much money is spent on gasoline from people just commuting to and from work. The beauty of TRADOLOGY  trading is that it is all done online. There is no need to sit in gridlock and waste 2 hours of your day just from being in a car.

12 - Steps to Good Trading - Step 1 - Using Your Imagination

Not long ago I was reading the book Imagine That by Dewey Friedel. It was a timely read as it coincided with my plan to lay out these 12-steps to good trading and especially the first step, which is Using Your Imagination. In the book he describes an event in the French Revolution where an experiment in a prison showed the power of imagination and suggestion. A prisoner sentenced to death was told that he would not be guillotined as was the custom then Instead he was told that one night the guards would come in and put a sack over his head and he they would slit his wrists and he would just fall asleep and die. I guess they left this thought for him to stew on a while and finally the night came where they came to him and stuck a bag over his head then proceeded to run ice over his wrists. He felt the cold wetness and laid down and went to sleep and within 20-minutes he was dead.
Now I don't know if this is a true story or not. I am guessing if it is true that it was winter or something because I just cant picture how else they come up with ice back then. Regardless of whether the story is true or not it illustrates a truth about the power of our imagination over our lives and also in our trading. A lot of people die a death like this with every trade by focusing on the bad that can happen. It is my belief that we get what we focus on....good and bad. This is a Biblical law written plain as day in the Bible so as a Christian it is easy to believe but even before becoming a Christian this truth was playing out in my life. Modern marketing is catching up with some of those laws in the form of books like The Secret and techniques like NLP and we cant ignore them as a factor in our trading.
I am including this topic early in the 12-steps because it is a foundational one that will be used in every aspect of our learning period. It is vital that we learn to use our active imagination to reflect on the things we want to accomplish and to master our methods and understanding of the market. I say active imagination because this is a step in which you have to redirect your thoughts to those things you need to focus on and meditate and imagine those things playing out. If you don't your own emotions and outside forces will drive your thoughts and that will not end up well for you or your trading. We are always in thought and imagining on some level. Lets choose our own topics.
At this point we don't have a trading method to talk about with examples, nor should we because we are building from the ground up and the entry method is the last part you need to worry about, but I am going to make some suggestions now to start building this mental muscle of imagination and when we do get a method to work with we will just apply that muscle to learning and becoming one with the method.
Lets start with something really easy and useful. Each day during the next two weeks before the next step is released I want you to start each day by doing your breathing exercise as you learned in step number one. Do this on your knees or sitting down so you don't fall right back asleep. After you have reached your calm place your mind should be clear. What you want to do is to actively imagine your day. See it played out the way you want it to go. If you are already actively trading with some method you can include some of that but see the whole day through and don't get bogged down on individual trades or anything too specific. See the outcomes not all the details at this point. When I say "see" I mean see it in your mind and feel those feelings. If it makes you smile while doing it then smile. The whole thing should only take a minute or so. You are not running through the day in detailed real-time speed but just breezing through it like a to-do list almost with pictures and feeling. Feel, see and hear as much as you can without stopping in on any one thing too much. Focus on the results or outcomes.
This may be very difficult for some of you at the start if you have not done it before. So would bench pressing 300-pounds or running a marathon. We are building a muscle. If what I described seems like too much then just imagine your morning or the next hour or two. It's the concept not the specifics. We want to build this muscle so when we get into charts and visual stuff you can have something to work with. We are also building upon the step we already learned, which was to control our breathing. After you do this morning exercises take 2-minutes to write out what you imagined your day would be like in a journal. It doesn't have to be too detailed at this point. You just want to get it down on paper. As the day moves forward and you feel under pressure from outside forces and you catch yourself imagining or focusing on what the world throws at you then return to your journal so you can see what you wanted for your day and get back on track.
I said not to get bogged down on specific details in this exercise. However, if you have big items in your life that day or in the near future that you need to spend more time on then once you finish your daily outline and journal you can go deeper into those items and see them through the way you want them to go. Just don't do it until you get your broad day down in your journal. Using the power of your imagination to visualize those bigger items through completion will help your prepare and find peace. Just actively take control and not let the dialogue or whatever develops take you out of your controlled breathing and calmness. When it does start to do that just actively clear your head by placing your tongue just below and behind your upper teeth and focus again on your breathing.
If you are really struggling with this idea of using your imagination let me make a suggestion that might help. Imagine something you have already done and will likely do again such as going to the grocery store with a list. See yourself get to the store...walk in...glance at the list...grab the cart...flash to the isles...cart is filling...next item...next item...look at the check out....number 8 looks clear...put items on the sliding thing....swipe the card...smile...say bye...go home...etc.
It may take using your memory muscle to develop your look-ahead muscle. The only difference is the timeline. You need to be looking forward in time so make that shift. Work on this for the next two weeks and email me when you have trouble or need help. Actively combine steps 1 and 2. We will be using our imagination when we get more into the market. When you are in control of your own imagination and not letting it run free under the influence of every suggestion the world throws at us then you have real power and learning is accelerated. And just as important, we get in our lives what we actively focus on or imagine.
I promise you that we will be getting to trading specifics but if you don't have this stuff in your arsenal you will be just like every other person who fails so stay with me and we will build it from the ground up.

Exploring The World of Day Trading

Are you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you.
What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours.

Day trading happens only during the day. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover. During the day trading, they quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Day traders will make a purchase of a stock, hold it for only minutes watching constantly for the stock to go up or down, selling if it goes down only two or three cents and holding if it goes up to about five or six cents and selling. The stock is almost never held over night as there are many other opportunities and a stock that takes hours to move is not worth holding.
Day trading can be a very high paced and stressful lifestyle. There are millions of day traders across North America but it can be a very fast way to lose everything. Some people are making over $5000.00 a day but it takes months and sometimes years to learn and master day trading.
The broader meaning of the term day trading includes those who trade daily from their homes or offices, through Internet brokerages. These day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. The latest buzzword for this is "swing trader," those who keep a stock within in a few days before finally selling them. To some, particularly the so-called bandits, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch everyday price fluctuations.

You must also be aware that not all stocks are suitable for day trading. Day trading should never trade unlisted or thinly traded (low volume) stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your day trading position quickly at a fair price. Trade only high volume, well-known stocks.