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20111201

Traders: Profit From Other Investors' Fear
It can be said that to trade effectively, one has to understand that markets are filled with an extremely large number of market participants, along with their hopes, fears and thoughts - both rational and irrational. As traders, we are ultimately trading people and not stocks. It is people and their thoughts and expectations that push a stock to support and resistance. Fundamentals don't move stocks in the near term, it is people's expectations that do. A stock can have a 3% move in a day without any change in the underlying fundamentals. Money, and the thought of making or losing it, has a way...

by maxims - Comments: 0 - Views: 90
20111201

The Dead Cat Bounce: A Bear In Bull's Clothing?
There's an old saying in investing: even a dead cat will bounce if it is dropped from high enough. The dead cat bounce refers to a short-term recovery in a declining trend. In this article, we explore this phenomenon by looking at an example of a dead cat bounce and contrasting it to an actual change in sentiment that turns a market's outlook from bearish to bullish.

What Is a Dead Cat Bounce?
Let's take a look at a period of economic turmoil:

by maxims - Comments: 0 - Views: 108
20111201

How To Break Bad Trading Habits
All traders should have a good trading plan. One of the worst bad habits a trader can have is trading impulsively and without any guidelines. Traders who take the time to make a trading plan are much more likely to succeed, but even with a plan in place we can develop bad habits. A trader will make impulsive trades even with their plan taped to the wall next to them. They may exit winning trades too quickly or let losses go longer than their plan states they should. In this article we will go into how we can change our bad habits. The process involves how we personally view our successes and failures,...

by maxims - Comments: 0 - Views: 89
20111201

Simple Strategies For Capitalizing On Trends
There are two types of markets in which a trader will trade - a trending market or a sideways market. On any time frame, a trade may be held through both types of market, but it is when the trade is entered and in what type of market (trending or sideways) that determines its level of risk. Risk is simply the amount of price movement we would expect before we can say with some certainty the trade is not moving in our direction (at least for right now), and is moving because of factors beyond simple market noise. (To learn how to trade a sideways market, read Finding Value In A Sideways Market.)...

by maxims - Comments: 0 - Views: 99
20111201

For Maximum Market Returns, Get Creative With Hedges
Most individual investors make very simple decisions when investing - they either buy or sell a stock based on its perceived value. By contrast, professional investors formulate broad investment ideas and then design specific strategies to maximize profit and minimize risk. Individual investors can employ these same strategies by adhering to a simple set of rules and guidelines.

An Introduction to Hedging
Hedges are designed to mitigate risk and isolate opportunity in an investment thesis. For example, an investor who is bullish on a retailer due to its real estate's...

by maxims - Comments: 0 - Views: 100
20111201

Find Turning Points With Single-Day Patterns
Technical analysis has a reputation for being complicated and time consuming, but there are many quick techniques that can provide an easy starting point for further research. While single-day patterns should not be relied on exclusively, they can be extremely useful as an on-the-spot analysis to identify potential market turning points. This article will introduce three single-day technical patterns and show how they can be effectively used in everyday trading.

Filling the Void with Gaps
Gap days occur when a day's low is above the previous day's high or a day's...

by maxims - Comments: 0 - Views: 112
20111201

Momentum Indicates Stock Price Strength
Momentum is perhaps the simplest and easiest oscillator to understand and use; it is the measurement of the speed or velocity of price changes. In "Technical Analysis of the Financial Markets", John J. Murphy explains:

"Market momentum is measured by continually taking price differences for a fixed time interval. To construct a 10-day momentum line, simply subtract the closing price 10 days ago from the last closing price. This positive or negative value is then plotted around a zero line. The formula for momentum is:

by maxims - Comments: 0 - Views: 92
20111201

Risk Management Techniques For Active Traders
Risk management is an essential but often overlooked prerequisite to successful active trading. After all, a trader that has generated substantial profits over his or her lifetime can lose it all in just one or two bad trades if proper risk management isn't employed. This article will discuss some simple strategies that can be used to protect your trading profits.

Planning Your Trades
One of Sun Tzu's most famous quotes is: "Every battle is won before it is fought." The phrase implies that it is planning and strategy that wins wars and not the battles themselves....

by maxims - Comments: 0 - Views: 141
20111201

Trade Simple, Trade Smart
We can reduce the amount of time and "homework" it takes to find highly tradable securities by running screens and stock scans but there is still the common problem of making strategies far more complex than they need to be. Complex strategies generally start from a simple strategy which works well for the trader, but then that strategy is tweaked and re-tweaked in an attempt to make it even more profitable.

If this tinkering has worked with some strategies, that's excellent, but it is common for the trader to begin to have too much on their mind; profits cease and the trader ends up...

by maxims - Comments: 0 - Views: 91
20111201

Quit Your Job To Trade Stocks?
Trading is often viewed as a high barrier-to-entry field, but this is simply not the case in today's market. Now, anyone with ambition and patience can trade, and do it for a living, even with little to no money. Sound fantastic? It is, and there are so many options available to people with the desire to put in the time to learn.

The New Era of Trading
Changes in technology and increasing volumes on the exchanges have brought about a number of very low barriers-to-entry trading-careers. In some cases no personal capital is required, and in other cases a small amount...

by maxims - Comments: 0 - Views: 100
20111201

Create Your Own Trading Strategies
There are many great trading strategies out there, and purchasing books or courses does save time, but trading can also be a "do it yourself" career. Many traders spend hundreds or even thousands of dollars looking for a great trading strategy. Building strategies can be fun, easy and surprisingly quick. (To read about available trading software check out Forex Automation Software For Hands-Free Trading.)

To create a strategy, you will need access to charts which reflect the time frame to be traded, an inquisitive and objective mind and a pad of paper to jot down your ideas. These...

by maxims - Comments: 0 - Views: 102
20111201

Catching A Falling Knife: Picking Intraday Turning Points
Trying to pick an intraday top or a bottom in a market move can be dangerous, yet many traders are obsessed with trying to get in right at the bottom and out at the top. A common method is to forecast a bottom, place a bid and then watch in horror as prices continue to plummet, resulting in a larger loss than initially anticipated. Traders can get into emerging trends early and exit near the top, but a prudent strategy requires that we wait for the market to provide us with a signal - a sign that it is reversing - before we enter/exit our position. In this way, we can enter and exit at relatively...

by maxims - Comments: 0 - Views: 86
20111201

Top 10 Rules For Successful Trading
Most people who are interested in learning how to become profitable traders need only spend a few minutes online before reading such phrases as "plan your trade; trade your plan" and "keep your losses to a minimum." For new traders, these tidbits of information can seem more like a distraction than any actionable advice. New traders often just want to know how to set up their charts so they can hurry up and make money.

To be successful in trading, however, one needs to understand the importance of and adhere to a set of rules that have guided all types of traders, with a variety of trading...

by maxims - Comments: 0 - Views: 81
20111201

Profit Without Predicting The Market
It is quite common to hear someone say "This stock has got to go up!" or "This stock has got to go down!" In such cases, the trader has made a prediction that the stock should move a certain way based on research or analysis and is ignoring the facts about what the stock's price is saying right now.

Certain strategies require that a price movement is faded (where a position is accumulated as the price moves against the trader), but for most individual traders who have small positions there is little need to fade the market predicting that it will reverse at any moment. Traders, especially...

by maxims - Comments: 0 - Views: 76
20111201

Introduction To Trading: Scalpers
Generally speaking investors make their money by buying a security and then selling it for a profit at some point down the road. It’s not unusual for investors to maintain their positions anywhere from a couple of months to many years. On the other side of the coin there are traders. The typical trader holds a stock no more than a few days, and often trades in and out of stocks several times per day. “Scalpers” are a specific type of short-term trader. Here we'll take a look at this type of trading, how it works and how scalpers profit. (For background reading on what day traders do, see Day...

by maxims - Comments: 0 - Views: 82
20111201

How To Use Volume To Improve Your Trading
Volume is a measure of how much of a given financial asset has been traded in a given period of time. It is a very powerful tool, but it's often overlooked because it is such a simple indicator. Volume information can be found just about anywhere, but few traders or investors know how to use it to increase their profits and minimize risk.

[b]TUTORIAL: Analyzing Chart Patterns[/b]

For every buyer there needs to be someone who sold them the shares they bought, just as there must be a buyer in order for a seller to get rid of his or her shares....

by maxims - Comments: 0 - Views: 73
20111201

3 Ways Price Momentum Can Burn Your Portfolio
The positive relationship between a stock's recent price history and its future price performance - known as the momentum effect - is one of the most heavily researched stock market anomalies. While the jury is still out regarding what causes the momentum effect, studies have shown that buying the stock market's recent winners and selling its recent losers can be a rewarding (albeit volatile) investing strategy.
[b]TUTORIAL: Top Stock-Picking Strategies[/b]

For this reason, many investors incorporate price momentum indicators into their stock selection...

by maxims - Comments: 0 - Views: 64
20111201

The Pros And Cons Of Automated Trading Systems
Traders and investors can turn precise entry, exit and money management rules into automated trading systems that allow computers to execute and monitor the trades. One of the biggest attractions of strategy automation is that it can take some of the emotion out of trading since trades are automatically placed once certain criteria are met. This article will introduce readers to and explain some of the advantages and disadvantages, as well as the realities, of automated trading systems. (For related reading, see The Power Of Program Trades.)

[b]TUTORIAL: Trading...

by maxims - Comments: 0 - Views: 93
20111201

Understanding Liquidity Risk
Before the global financial crisis (GFC), liquidity risk was not on everybody's radar. Financial models routinely omitted liquidity risk. But the GCF has prompted a renewal to understand liquidity risk. One reason is because there was a consensus that the crisis included a run on the shadow (non-depository) banking system - providers of short-term financing, notably in the repo market - systematically withdrew liquidity; they did this indirectly but undeniably by increasing collateral haircuts. After the GFC, all major financial institutions and governments are acutely aware of the risk that liquidity...

by maxims - Comments: 0 - Views: 57
20111201

Are You Under Or Overtrading?
One thing that all traders will eventually need to consider is how much should be traded. Will they make one trade per day, 100 or more? While how much to trade may just happen naturally, every trader should stop and evaluate how much they are trading and if they are possibly under or overtrading their specific style or system. Scalping styles generally require lots of trades, while positions traders need to be more selective in the movements the trade. Each style is different, and too many or too few trades could potentially harm a trader's profits.

[b]Tutorial: Electronic Trading[/b]

by maxims - Comments: 0 - Views: 61
20111201

The Importance Of Trading Psychology And Discipline
There are many characteristics and skills required by traders in order for them to be successful in the financial markets. The ability to understand the inner workings of a company, its fundamentals and the ability to determine the direction of the trend are a few of the key traits needed, but not one of these is as important as the ability to contain emotions and maintain discipline.

[b]Tutorial: Managing Risk And Diversification[/b]

Trading Psychology
The psychological aspect of trading is extremely important, and the reason for that...

by maxims - Comments: 0 - Views: 59
20111201

Interpreting Support And Resistance Zones
Technical analysts use support and resistance zones to identify points on a chart where a pause, or the reversal of a prevailing trend, is likely to occur. Once an area of support or resistance has been identified, it provides valuable potential trade entry or exit points. This is because, as price reaches a point of support or resistance, it will do one of two things: bounce back away from the support or resistance level, or violate the price level and continue in its direction.

TUTORIAL: Analyzing Chart Patterns

Most forms of trades based on these indicators,...

by maxims - Comments: 0 - Views: 54
20111201

Adjusting Day Trading Strategies For Different Market Conditions
For active stock traders, having different strategies for different market conditions is a crucial factor. Trends emerge, fade, reverse and ranges develop, all playing out in ever broader trends and ranges, all within a single trading session. Thus, the trader is faced with a choice: trade one strategy and profit only at times that suit the strategy, or trade several strategies that allow them to trade profitably, in an array of market conditions. Different times of the day pose different opportunities and threats, and must be accounted for. Once several strategies have been adopted, it is crucial...

by maxims - Comments: 0 - Views: 106
20111201

Divergence: The Trade Most Profitable
Divergence: The Trade Most Profitable

Posted: Nov 4, 2011 | Reprints Email
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by maxims - Comments: 0 - Views: 52
20111201

The Psychology Of Support And Resistance Zones
Article Highlights
- Human emotion and behavior are largely responsible for action in the markets.
- Herd instinct is seen when traders congregrate near support and resistance levels.
- Emotional price levels are significant because they create anticipation.
Technical analysts use support and resistance to identify points on a chart where the probabilities favor a pause, or reversal, of a prevailing trend. Support occurs where a downtrend is expected to pause, due to a concentration...
by maxims - Comments: 0 - Views: 46
20111018

Brokerage fee-the silent killer for small cap players
I suggest all new member to use the cheapset brokerage platform possible. When chosing an investment bank, make sure they have intraday facility or very cheap brokerage.

This help shortterm trader like ourself goes a long way to making profits. If you noticed we usually go in and exit a trade from days to minutes and even seconds.

Imagine using a brokerage which charge Rm28 minumum/0.42% if you make 10 trades? in and out will cost you a whooping Rm560!!!!

and say you buy a stock and exit after one bid? instead of profits you will be exiting at a lost because of...

by phoenix777 - Comments: 4 - Views: 182
20091117

Gauging Major Turns With Psychology
"All economic movements, by their very nature, are motivated by crowd psychology." -- Financier Bernard Baruch

At times, a market will appear to move based on fundamentals, while at other times, the same market will move in the opposite direction on the same news! The key to understanding the highest probability move is to understand the psychology associated with that market. You must also understand that markets move in trends but reverse at extreme levels of bullishness (tops) and bearishness (bottoms). This...

by Guest - Comments: 1 - Views: 189
20091228

Catching a Lift on the Penny Express
June 22, 2004, was another good day for CMKM Diamond Inc. More than 3.2 billion shares of company stock were traded. On the same day, less than 1.7 billion shares traded on the Nasdaq and 1.4 billion on the New York Stock Exchange. CMKM had traded more shares that day than the NYSE and Nasdaq combined! Just a few days earlier, on June 16, the stock had traded more than 4.2 billion shares. Market interest in the little company from Saskatchewan spotlighted a phenomenon in the making: the rapidly growing popularity of penny...

by Guest - Comments: 2 - Views: 237
20091117

What causes a significant move in the stock market?
There is a nearly infinite number of factors that can cause the stock market to move significantly in one direction or another. This can include such things as economic data, geopolitical events and market sentiment, among a myriad of other factors. There is a constant in each of these situations, however. In any stock market move, whether up or down, there is a significant difference between supply and demand. (For more on this, see our [i]Economics Basics[/i] tutorial.)

Simply put, supply is the shares that people want to sell and demand is the shares that people are looking...

by Guest - Comments: 1 - Views: 227
20091122

Good money management skills are very important in trading
A good trading system or strategy is absolutely worthless without a method of managing your money. You like to trade stocks right? You like to make money in the markets right? Well, you will not have any money to trade with if you do not follow good money management practices!

Your #1 goal as a trader is to preserve your capital so that you can stay alive long enough to have some big winners that cover the costs of your losing trades AND make...

by Guest - Comments: 2 - Views: 405
20100110

Translate the Understanding of How Market Function Into Profits
Firstly, let other source do my explanation of what is bear and bull market!

What does Bear Market mean?
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months. While corrections are often a great place for a value investor to find...

by Guest - Comments: 3 - Views: 356
20110118

Would You Profit As A Day Trader?
Market timing attempts to predict the direction of future market movements in order to buy low and sell high. It is a strategy that most professional investors rely on and most other investors hope to replicate. Interestingly, it's also a strategy that has negative connotations for many investors. Have you ever wondered whether you could make money as a day trader? Read on as we cover the controversy behind this strategy.

The Controversy
At the academic level, the very concept of market timing is called into question by those who believe in the efficient market theory. This theory...

by Guest - Comments: 2 - Views: 232
20091117

Investors: Rely On Your Gut
Over time, equities have fared quite well in terms of total returns. However, that doesn't necessarily mean every investor should purchase or be invested in equities. Along the same lines, many junk bonds have the potential to deliver sizable incomes to their holders, but there are people who should never have junk bonds in their portfolios. So how can investors determine what types of investments are right for them?

An individual's resources or funds available may dictate what type of investment he or she should make. For example,...

by Guest - Comments: 2 - Views: 241
20110801

A Beginner’s Guide: Call Warrants Basics

Newbie please read....dont understand please ask....we are here to help
Call Warrants

A call warrant is a leveraged financial instrument which derives its value from the value of an underlying security. A call warrant can provide exposure to the underlying security for a fraction of the underlying securities price.

For a physical-settled call warrant, the warrant holder has the right, but not the obligation to buy the underlying security from the issuer at a predetermined price or Exercise Price at expiry or at anytime during the tenure of the call warrant.

For a cash-settled call warrant, the warrant holder can exercise...

by phoenix777 - Comments: 1 - Views: 363
20110117

Know Your Counterparty When Day Trading
Know Your Counterparty When Day Trading

As day traders, it is important to remember that when making trades intraday it is highly likely that you will transact against another day trader or a designated market maker - and their algorithms. This can result in frustration for inexperienced traders because they fail to realize that the other party has a contrary interest and motive for the transaction. By making a transaction there is now a possibility that the counterparty may take steps to make you lose on your trade so that they may gain. While the market is by no means a one-on-one...

by Guest - Comments: 3 - Views: 297
20110801

Call warrant trading strategies
WHEN and how does one decide to buy call warrants?

BUYING CALL warrants (CWs) is a leveraged alternative to a position in the underlying stock. Increasing leverage or gearing can result in large percentage profits because purchasing CWs generally requires a lower upfront capital commitment compared with an outright purchase of the underlying stock. Buying CWs also offer the investor a pre-determined maximum risk. So, when and how does one decide to buy CWs?

1. Timing, level

CWs' value is mainly derived from...

by phoenix777 - Comments: 17 - Views: 774
20110815

How to gain confidence in trading for beginners
1. Paper trade first

Do a paper trade buy and sell according to situation. Put items like why i do this trade, why i Profit take....why i cut lost....notes to remember. then you can record what happen to the stock after you PT or CL. what you should do the next time. For some brokerage like OSK there is a trading game. go and buy and sell from there, get familiar with it.

When you keep winning in paper trade you can move to the next step. If you keep losing big do not proceed to the next step

by phoenix777 - Comments: 5 - Views: 202
20110628

Overconfidence
One of the most documented of all psychological errors is the tendency to be over optimistic. In general, most people do not see the need to improve the way they make decisions, as they believe that they are already making excellent decisions. The unwarranted belief that we are usually correct is a major real-life barrier to critical thinking.

People exaggerate their own abilities and this is particularly common in managing their assets. Overconfidence often results in investors being fooled by small gains in a few trades, feeling much more in control of a situation than they are. Money...

by hlk - Comments: 10 - Views: 260
20110625

Should we catch a falling knife in Bursa Malaysia Stock Market?

Should we catch a falling knife in Bursa Malaysia Stock Market?
My friend once told me, we should NOT catch a falling knife in stock market. What is a falling knife? A falling knife means the stock price is falling. If a catch a falling knife physically, our hand will be full of blood. If we buy a stock when the price is falling, it will be the same, full of blood or full of red or full or losses.

Why? Because in stock market, more investors will tend to buy if the stock is on an uptrend and many will chase the stock. If the stock is on the way down, people will tends to sell and therefore, it will goes lower.

When a stock is falling,...

by hlk - Comments: 8 - Views: 509
20110315

Ten Commandments for Peace of Mind
Peace of mind is the most sought after 'commodity' in human life. It appears that most of us are in a state of perpetual restlessness. On analyzing the causes of this restlessness, I have ventured to find for myself ten solutions that need to be followed religiously if we are serious about achieving perfect peace of mind.
1. Do not interfere in others' business

Most of us create our own problems by interfering too often in others' affairs. We do so because somehow we have convinced ourselves that our way is the best way, our logic is the perfect logic, and those who do not conform...

by Guest - Comments: 8 - Views: 494
20110318

Never Go In OSK Issue Call Warrant If You Want To Preserve Your Capital
Case study

1. Pchem- CC: Days ago. Mom price 6.70 and pchem-cc 0.19, mom price 6.85 level the pchem-cc only fetch 0.195, given mom price increase of 15 cents the pchem-cc only go up half cents, with the conversion ratio of 5 to 1 and under normal scenario pchem-cc should fetch at least 0.205 to 0.21 or 7.5 to 10 cents higher after conversion ratio and taking into account that call warrant premium tend to trend towards discount if happen mom up too much, or in simple term, warrant premium tend to reduce from higher to lower premium.

The question is why mom up too much which...

by Guest - Comments: 7 - Views: 730
20110113

Understanding Specific Time Zones During The Trading Day
source: MYSMP

Think about your trading history and notice if you see a pattern in the different day trading time zones in relation to winning and losing trade percentages. What a day trader must understand is that even if a chart has a great setup, the time at which the trade is placed may be in a day trading time zone which typically starts a countertrend move. For example, many traders who are day trading breakouts will be far more successful during the first two hours of the day than any other timeframe during the day. Typically breakout attempts will fail and reverse which will only...

by twink - Comments: 0 - Views: 253
20110113

Know our Bursa trading hours for the NEWBIES...
Trading Sessions
source: URL BURSA MALAYSIA

Trading at Bursa Malaysia from Monday to Friday, except on public holidays and other market holidays (when the Exchange is declared closed by the Bursa Malaysia Committee).

EQUITIES MARKET TIMING (effective 26 October 2009)
Trading Phases Normal Market and Odd Lot Market
Pre-Opening 8:30 am
Opening and Continuous Trading 9:00...

by twink - Comments: 1 - Views: 590
20091228

Don't Let Stock Prices Fool You
There is a common saying that goes, "Don't judge a book by its cover". Some equally valid words of wisdom for investors could be, "Don't judge a stock by its share price". Despite tons readily available information for investors, many people still incorrectly assume that a stock with a small dollar price is cheap, while another with a heftier price tag is expensive. This misconceived notion can lead investors down the wrong path, and help them make bad decisions with their money. The truth is that the cheapest stocks - "penny stocks" - also tend to be the riskiest....

by Guest - Comments: 1 - Views: 240
20100618

What is Penny stocks.?
What is Penny stocks.?

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by palumohan - Comments: 0 - Views: 270
20091228

The Lowdown On Penny Stocks
Successful companies aren't born, they're made - and they have to work their way from humble beginnings and through the ranks just like everyone else. Unfortunately, some investors believe that finding the next "big thing" means scouring through penny stocks in the hope of finding the next Microsoft (Nasdaq:MSFT) or Wal-Mart (NYSE:WMT). Unfortunately, this strategy will prove to be unsuccessful in most cases. Read on to find out why pinning your hopes on penny stocks could leave you penniless.

by Guest - Comments: 2 - Views: 952
20100605

Why are Community Guidelines important?
Our site continues to grow at an incredible speed and we have thousands
of new people signing up every week. To keep our Answers community a
fun and informative place it is important to understand our community guidelines.
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by palumohan - Comments: 0 - Views: 295
20100526

What is Penny stocks.?
What is Penny stocks.?

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Organic Seo |Christian Seo

by rajumohan - Comments: 1 - Views: 217
20100109

Automatic Formula To Select Warrant? Wow Interesting
Let The Formula Tell Us What Warrant To Buy - 95% Match Maximent Manual Pick!

by maximent Yesterday at 7:25:52

[color:3433=#f00][You must be registered and logged...

by Warrants - Comments: 0 - Views: 465
20091228

Spot Hotshot Penny Stocks
Designed as a place for new companies to get a start, the sad truth is that the vast majority of the nearly 3,500 juniors listed on the Over-the-Counter Bulletin Board (OTCBB) will never make it onto the big boards. Most run out of money or simply disappear before their products or services become profitable.

However, that hasn't stopped the phenomenal growth in trading volume. In 1993, just 3 billion shares traded annually, but by the peak of the internet bubble in 2000, this number had swelled 40-fold to 117 billion. In 2006,...

by Guest - Comments: 0 - Views: 251