Archives 2020

How To Navigate The Dangerous Rapids Of Stock Trading

Stock Trading and Investing during the last 10 years have manifested in considerable losses to Investors. All of the key Indices collapsed in the decade from 2000 to 2010. That period is indeed currently referred to as the lost Decade for Investors.

Many Traders on the other hand, earned money. While Investors rely on Fundamental Analysis, Traders depend on Technical Analysis.

The sustained and unbroken commitment of this effort is to assist where ever I am able to guide visitors to this site regarding Trading and Investing. These pages will dispense stock trading information, advice and education for beginners along with hardened investors and traders.

If you are a newbie investor or trader, this is a requisite read. Also, seasoned Traders and Investors will realize its benefit.

In your strategy and your trading activities you want to Keep it Uncomplicated, Stable as well as Repeatable. These pages will seek to constantly prod and guide you towards this simple, nonetheless crucially vital tenet.

All the way through, I will attempt to supply stock trading ideas plus clarify and simplify what I believe are several of the most essential doctrines of successful trading and investing. Subjects discussed will involve:
What is necessary to begin your investing and trading pursuit. You have got to have a plan. Of course it is the single most worthy thing that you do. No, you cannot circumvent it! If you don't have a plan, you will not be a success. Period!

I resolve to show you how to Plan Your Strategy based on your risk profile and grit and help you Build Your Investment Plan from scratch. We desire to set up a stock trading system that is Simple, Steady and Duplicatable. Finding Potential Trade Possibilities By means of Simple Technical Analysis. It does not matter whether the market is moving up or down.
Technical Analysis cannot prophesy peaks and troughs. In spite of this, it is great at identifying changes in direction and trends. Much money could be made identifying trends and reversals.
Discovering opportunities in the Commodities or Futures Markets without dealing in them directly but in Commodities ETF'S. This permits you to participate, in the volatile and vicious happenings in those markets whilst allowing you to skillfully control your risk. Top 10 Pitfalls of Trading stocks. Be prepared to do your own research and not rely on tips and suggestions from other people.
Causes for the 2008 -2009 Recession along with the Consequences. Has the condition been crushed ?. If so, now what happens to the patient which is the economy? As a result of the after effects, where can the best opportunities be present?
Find out Simple Stock Trading Fundamentals

In trading and investing, the only allegiance or fidelity you possess is to your plan as well as your success - not concerning a individual stock or position. No emotional connection ought to be placed on any specific stock or position.
One of the open stock trading secrets is discipline. There must be a determined, tenacious and forbidding devotion to your strategy and your purpose.

Although this can sometimes be challenging to accomplish, it must be done to ensure victory. Be fiercely true to the adherence of your strategy and be all set to undo the stance if there is any violation of the specification you establish for any stock or security.

However, you must have a plan as well as a strategy. If you do not have a plan you will not be successful. Period! You want to know what to purchase, at what time to buy and when to sell.

For Information On How To Actually Devise Your Trading Strategy, Go To Investing Strategy

The author, Winston, has extensive knowledge and proficiency in the Financial Markets. He started trading in the Commodities Market since the mid 1990's and has since become very active in the Stock Market.

He has many interests and has indulged himself in a multiplicity of sectors but his true and enduring love is in dealing in the Financial Markets.

As an undergraduate in College, he tutored in the Academic Foundation of his University. While Winston was still in Graduate School, he left to start his first business. Since then he has been involved in many different businesses and interests.

Winston Duke has been a participant in the stock market for many years. He is also the creator and author of several web sites including

Though his interests are many and varied, and he has indulged himself in a multiplicity of sectors, his true and enduring love is in dealing in the Financial Markets.

Listed below are some of the highlights of his life?s journey.

Making The Way For The Charity Through Stock Donations

It always goes out as a nice impression when you are doing charity which of course you can do in a lot many ways. Long had gone the time when people used to donate in cash and materials only. Now there are even more options available for making the donations. And these little acts of kindness work good in your way as well. You get various tax benefits which can be imperative for your business or work.

But making the decision to donate your stocks is something that you require to do a good research on. First, you need to know that what the current standard of the stocks held by you is? You cannot make the stock donations of the stocks that are in your possession just less than a year. This means that you must have the ownership of the stocks for more than a year or so. This works well in your way as you can reap the tax benefits out of the kind act.

The second thing that you need to take into the consideration is getting a good list of all the good charities or which are also known as the non-profit organizations. These must be the ones that interest your kind of ideology. You will surely not like to donate your precious stocks to someone that does not interest you or someone that is not doing the work that like that much. Though charity is considered to be good always but they are also bound by the religion factors. So once you have defined the kind of charity to look for and then come the third step.

In the third step you need to find out the charities that accept the stock donations. To validate these criteria, the charity or the non-profit organization must have a brokerage account. A brokerage account is the testimony of good charity that will use your stocks for a good decent purpose.

Next, you meet your own broker and tell him about that stock donation you need to carry out. They will require few details and signatures from your side so as to make the stock donation process work. They will also need the brokerage account and account name of the charity organization. The proceedings and final donation will take few business days to complete duly. After you have done everything you can remember to save all the documents which play role at the time of filing the tax returns.

Charts For Trading

Chart selection is one of the most common task a trader novice faces when he/she starts considering trading. Majority of traders who base their decision on the results of technical analysis use charts to monitor and analyze a traded security. So, what are the main criterias that should be considering when it comes to the section of a chart provider?

To answer this question, first of all, a trader has to define his/her own trading preferences. For long-term trading there is no need to subscribe for advanced charting software. There is no need to use real- time streaming intraday charts for making a long-term decision. As a rule, daily charts should be OK for this purpose. There are plenty of free online resources that allow you to analyze majority of technical indicators on daily and delayed time-frames. Plus, if you are using online trading, your online broker should have some charts available. Of course if you base your trading on some complicated and unique technical analysis (like advance/decline data, Fibonacci numbers, etc) then, of course, you may need to consider additional sources of charting solutions.

On the other hand, if you are an intraday trader or even trade commodities, then of course, you may require streaming or real-time charts with wide range of technical indicators. While majority of online brokers have streaming charts and quotes, many of the broker's charting solutions are quite poor in selection of technical indicators, drawing ability, setting alerts, etc. In this case following criteria could be recommended to consider:

1. Are the charts updated in real-time (streaming)?
2. Is there a wide selection of technical indicators? Many providers focus only on price based technical indicators, so, it is recommended to check if in addition to the price based technical studies, there are various volume based technical indicators, breadth indicators and indicators to analyze volatility.
3. Is there is ability to make notes and do drawing on charts? Could your notes and drawing be saved for later references?
4. Can charts be scroll back in history? Will be your saved notes displayed when you browse the history?
5. Can you save different chart styles instead of setting a chart each time you open it?
6. Can you set any type of alerts on chart (sound- or email-alerts)?
7. Is there need to purchase, download and install any additional software and you have to drag your computer everywhere you go, or this is java based charting solution and you may see them on any computer in any place in the world?
8. Is there any mobile devices that allow you to see the charts?
9. Is there any tutorial on technical analysis, indicators and studies on a chart provider?s website?

There could be plenty of other questions. However, from my personal experience, it is simply recommended to write an email to customer support with a question related to technical analysis or building a trading system. Depending on an answer you will see how qualified and willing to help you customer support personal is. Believe me, you do not want to stuck with unfriendly service.

Trading Volume A Key To Making Big Money

Opening a treasure chest

Learning to properly analyze trading volume is crucial if you want to make a lot of money in the markets. The skill of recognizing whether the bulls or bears are in control of a particular market, is almost like having a key to a treasure chest of virtually unlimited money.

The definition of trading volume

It is the number of shares or contracts traded in an individual security, or an entire market during a specific period of time. Basically, it is the amount of shares that trade hands from sellers to buyers as a measure of market activity. As an example, if a buyer of a stock purchases 200 shares, that would cause the volume for that period to increase by 200 shares based on that transaction.

The basics

If you get a big price gain in heavy trading volume, this tells you big players such as mutual funds and hedge funds most likely are buying. On the other hand, if you get a big price drop in heavy volume, it is pretty clear the big players are selling. A big price gain in light volume gives you an indication there is a lack of conviction in the move. Big players simply are not behind the move, and the stock will have a hard time holding onto its gains.

Supply and demand

Price-action is obviously important, but trading volume, the supply and demand, will best tell you what is actually going on with a stock, or the market as a whole. Our objective is to determine the balance of the supply and the demand. When the demand is greater than the supply, the price will rise, and vice versa. Remember, it is the action of the volume that tells us of the supply and demand. The price only gives us the value of the volume.

3 important types of trading volume activity

The first type is increasing volume during a price advance, with pauses or set-backs occurring on light volume. This type of action is indicative of demand being greater than supply. This is the type of price and volume action that favors a resumption of the advance. You will make excellent money if your stock is showing this kind of price and volume action.

The second type is when you get increased volume at the top of a price advance, and it lasts for a while with no meaningful gain of prices, that is called churning. Many times churning is indicative of a turning-point. Big players are getting rid of their shares right before the general market starts a correction, or even possibly a bear market. This type of action usually fools the general public.

The third type of trading volume has to do with a price advance that is struggling or acting very tired. This is the case when you see a stock, or the market in general, creep upward on light volume, and simply dies at the top. Basically, this indicates a lack of demand. There are few buying orders or selling orders. This action many times is telling us a reversal could soon be in the cards, especially if followed by increased volume on the down side. Heavy volume at the end of a move generally means a turning-point. Recognizing reversals or turning-points can make you a fortune.