Risk management

How to read charts in stock and forex trading.  Learning to read tick,or candle stick charts and get it right is something every trader needs to do. Chart patterns change everyday in the movement of the stock and forex markets.Figuring out support and resistance levels, finding buy and sell areas, and determining strength or weakness is what you need to learn. Knowing  if the stock in is a trend and what the volume is are very important to your trading decisions.  To have an edge from reading charts, the trader has to be able to understand chart patterns as they are forming, and you then have to make sure the chart pattern has formed. In the forex market especially over longer time frames the patterns will repeat. The percentages are in your favor if you understand these different patterns on the charts. It is at those chart levels that the imbalance of order show up between the buyers and sellers of different pairs in the FX or the same is true if you are trading stocks .  Many support and resistance areas are known to all the big brokers and banks that trade the forex markets

Elliott Wave Theory

This is one of the fascinating things about Elliott Wave Theory: It seems to apply to patterns found not only in markets, but in the rise and fall of nations, and even entire civilizations  as well as the ebb and flow of many other things in the natural world . Traders have studied and applied it for many years, and continue to be in awe of its frequently uncanny ability to anticipate the future. It is important to note that Elliott Wave Theory was derived from back-testing. Back in the 1930s, R.N. Elliott studied decades of charts at various time frames, and discovered that there were certain patterns which repeated across all time frames. These patterns were of a fractal nature; in other words, the patterns on the one-minute chart join together to make up identical larger patterns on the hourly charts, which in turn make up identical larger patterns on the daily charts  and so on. He developed Elliott Wave Theory as an attempt to quantify and explain these patterns.

Electronic stock trading

The biggest mistake  with new traders is that they are looking for the “career trade;” the big home run. It’s a great fantasy, but it’s not a realistic strategy. The successful traders over time aren’t necessarily scoring big winners—they are successful because they are managing their losses. technical analysis is one way to determine where I might enter a trade and what I’d like to define as my risk. I buy based on my defined support points, sell based on my defined resistance points, and place my stop-loss points below or above those respective levels. Let’s explore the concept of exiting a trade a bit further, beyond just using support and resistance as tools to pinpoint specific levels. If your trade doesn’t look like it will make its profit target, do you just wait it out and hope it does?

Stock trading online

Price Zones

 It is important to try and know where market prices are going to turn in advance and also where prices are going to go with a very high degree of accuracy is knowing exactly what institution bank demand and supply looks like on a trading chart in any market stock, futures, or forex. Understand that supply and demand levels created long ago can serve to be very strong levels. The reason for the strong consistent success of these supply and demand levels is traders need to focused only on institution and bank demand and supply. In other words, the levels that you see on the grid below are levels where banks and institutions are buying and selling. Having this information as a day trader, swing trader, and longer term investor is key.  The first order of business is to protect yourself using proper stop losses and don't get greedy.  Effective self-discipline is about harnessing and managing your thoughts and emotions in order to remain focused on what matters most in the trade.

Price Zones

DRIPS Drip Dividend Reinvestment

  New investors that don't have allot of cash can invest in drips. With a DRIP traders have the ability to accumulate shares more cheaply than buying the stock outside the DRIP. Discounts also provide a boost to the stock’s yield. Dividend reinvestment plans are known as Drip’s. Investors can purchase shares of companies like McDonalds’ Nike or General Electric fifty dollars at a time. In most cases, companies charge no commissions for purchasing stocks through their Drips, and those that do charge only a nominal fee. Sometimes investors can send optional cash payments (OCPs), in some cases for as little as ten dollars.
 A number of Drips permit investors to buy stock at discounts to the current market prices. Discounts are usually three to five percent but may be as high as ten percent. Investors have the right to buy attractive blue chip stocks when they
otherwise might not be able to afford them.  Discounts apply only to shares purchased with reinvested dividends, some apply the discount to purchases made with optional cash payments. The main benefit of buying stocks directly from the company either through a Direct Stock Purchase plan or a DRIP program is that the investor doesn't always have to pay a commission when making a purchase as you do with most brokers.

Dividend Reinvestment Plans

Dow futures trading

Learning to trade the futures markets is something a full time trader needs to learn. Futures markets are a set of markets that includes all the asset classes that can be traded, this can make Futures a very attractive set of markets to get to know and trade properly. Dow futures and the other futures markets is information on Futures that can help get you and your trading on the right side win loss ration and increase your trading account. Most stocks move with the S&P. Knowing how to properly analyze your trading and the S&P Futures offers the short and long-term stock trader a significant advantage and less risk.
 No $25,000 minimum requirement like you have in Equities when you trade futures. Plenty of leverage, low margin requirements, cheap commissions are charges by most futures brokers. Most major Futures markets and brokers have close to round the clock electronic trading especially in different parts of the world. Low risk if you use protective stop orders strong liquidity, huge volume can be seen in global futures markets. There is a small risk with big gaps with index and Dow futures. Commodity Futures are often a leading indicator during significant turns in the market cycle. They can help give the future trader a strong edge when attaining a low risk  high reward entry into the future market.

Futures options trading course

US dollar index

The U.S.. dollar index is an index you should follow especially if you trade the forex and currency markets. Dollar index is a index that follows other currencies and measures the strength of the dollar compared to other currencies. It is a weighted geometric mean of the dollar's value compared only with. If you are trading the forex market you should also be watching the dollar index. Many times the dollar index will move in the opposite direction of the  EUR/USD and the GBP/USD. By watching the chart of the dollar index on a one minute chart, and have your forex chart set at five minutes many time the dollar index will show a move. This happens many times especially if there is a spike in the index. The EUR and GBP will move in the opposite direction.

Trade the dollar index