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Online Trading Tips

Archive for September, 2009

'italic;' class='tradesbyline'>by James Larson

There are many differences between day trading and investing. Day traders aim to make small profits many times by buying large numbers of shares and selling them within short periods of time to profit from small same day movements. Day traders can make several trades in one day and even hold stocks for a few hours or minutes before they sell them back.

Day trading is more like speculating it is not investing. Some say that day trading is like gambling in some ways but I disagree. It doesn’t offer the possible security investing can offer but it is far from gambling. Day traders analyze what is going on. They educate themselves about a specific company and arm themselves with statistical analysis.

'italic;' class='tradesbyline'>by Jennifer McClelland

As stated in an earlier article, every so often the best movement is standing unmoving. As accurate as that is, after the three month financial recovery we’ve recorded, it’s time to rest and refocus. In a discussion in the remarks of a previous post concerning the new Northrop Grumman contract, this author made the following comment, to the agreement of both parties involved in the conversation, “However, you mentioned we had the biggest rally in history. That is true, and it concerns me to some extent. Our slump hit a fake bottom. I’m afraid that citizens will get too eager and we will hit a fake rally. I’d like to see a sluggish, steady recovery as we restructure a firm basis under it, instead of just setting up one more rollercoaster ride.” That is precisely what you are at present seeing.

'italic;' class='tradesbyline'>by Bart Icles

Forex currency investors participate in the market with the same goal in mind – earn a profit and do it efficiently. Forex software is an indispensable tool for new or old traders alike. Both will eventually want to get one at some point in their careers. To find one that is most suitable and affordable is a task easier said than done, so careful scrutiny should be done before buying one.

Finding the appropriate program won?t be a problem; instead, the difficulty will lie in choosing one among the many available kinds. To make the process easier and less confusing, one need only to get one that compliments one?s trading style. Some other helpful tips are:

'italic;' class='tradesbyline'>by Marc Abrams

In today’s stock market, investors have more choices than the purchase of stocks, bonds or mutual funds. Strategies such as the buying and selling of options can increase returns or minimize losses.

There are two main types of options, a call option and a put option. We are going to discuss call options. A call option is defined as a contract that gives the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.

'italic;' class='tradesbyline'>by Sam McNeill

A stop loss is a pre-determined price that we use as the trigger to sell out of a losing trade. If the share price falls instead of rising then we sell and we sell at a pre-determined price to ensure that we minimise losses. We need to have a stop loss price because not all trades succeed – some fail. Even the best trading techniques struggle to deliver a success rate of more than 70%. Therefore even using some of the best trading techniques we will still end up with two or three losing trades out of every ten. For these losing trades we must keep our losses really really small.

'italic;' class='tradesbyline'>by Bart Icles

Managing risks is one of the most important things that forex traders should learn. Most forex training programs include risk management in their discussions, and managing risks can involve either fundamental or technical analysis. A fundamental analysis refers to the dynamic evaluation of specific plans, unpredictable behaviors, and unanticipated events that affect the economy of a certain individual, business, organization or country. A fundamental analysis mainly focuses on social, political, and economic forces that drive the trends of the supply of and demand for currencies.


Forex Currency Trading Pairs

'italic;' class='tradesbyline'>by Paul Bryan

In Forex, one currency is bought against selling of another currency. A quotation of two different currencies is depicted by a Currency Pair. The first currency is called the Base (or Transaction) Currency and the second one in the pair is called Quote (or Counter) Currency. It simply means how many units of a counter currency are required to buy a unit of base currency. The four most important currency pairs are USD/EUR, USD/CHF, JPY/USD, and USD/GBP.