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Buy Stocks Online

No longer do investors have to phone their stock broker and wait for a call back to place their trades. With the advent of the internet, popularity in trading stocks online has become increasingly popular and it continues to. If you are new to stocks and want to buy stocks online, read this article to find out how to go about getting started.

Before investing in stock online you must first decide on an online broker. There are so many out there that this task can seem overwhelming, not to mention the different types of brokers such as discount brokers and other online brokers. New investors should join an online forum and attend a stock trading course in order to meet other investors who can provide referrals. That way you can narrow down your search tremendously when identifying brokerage firms.

When you buy stocks online it is also important to find a stock trading system that you like and that you completely understand the rules for buying stock and selling stock. You can follow the same process for selecting a trading system as you did for finding a broker. Once you have selected a trading system then you must practice online paper trading. Once you can make money on paper then you are ready to begin trading stocks with real money. Just be sure that you develop a trading plan and that you follow your plan strictly.

Now that you are set up to buy stocks online you must be sure to set your stop loss orders as well as any limit orders. This should be a part of your stock trading plan and again, you must adhere to it strictly. A stop loss order is an open order to your stock broker saying that if your stock drops to a certain target, he or she should immediately place a market order to sell on your behalf. While you havenít made any money on a particular trade if you use your stop loss, you have saved yourself from losing a lot more money. Do not try and wait out the trade in hopes that it will turn around. Follow your stop loss orders!

There is a lot more to buying stocks online than this article discusses. Continue to expand your knowledge of the stock market as well the different types of trading and trading strategies available to ensure your success.


Market Direction:  Learning the candlestick patterns identifies the 'big' price moves during a trend. Usually all prices move up during an uptrend. The added benefit candlestick's provide is identifying the big price moves. The patterns also produce other benefits not found as readily in other trading techniques. It makes for an entry into a price trend much easier after the pattern components are identified. The Jay hook pattern is a perfect example, especially in these current market conditions.

Wednesday's trading in the Dow produced the potential of a Jay hook pattern forming right on the 50 day moving average. Should buyers be aggressive after the market indexes have moved positive over the past 30 days? Normally, a 30 day uptrend would create a higher risk for entering the market. However, this assessment completely changes upon identifying a price pattern. The Jay hook pattern incorporates some very simple assumptions. Wave three is going to be approximate the same magnitude as wave one. This makes the 200 day moving average the likely target in the Dow. Having the parameters of the normal price pattern movement allows a candlestick investor to commit funds with much more certainty than other investors.

DOW

For the daytrader, as well as the swing trader, knowing the anticipated results of a price pattern allows for executions of trades without any mental hesitation. What was expected after yesterdays reversal in the Dow to confirm a Jay hook pattern? Confirmed buying from the Bulls today. This was evident in the strength of the premarket futures. This confirmation allowed for immediate buying on the open. Obviously, this is very important entry strategy information for the daytrader as well as the swing trader.

If the Dow and the NASDAQ are confirming Jay hook patterns, the obvious conclusion is the market is still in an uptrend. That information can be immediately applied to chart patterns that are demonstrating the same pattern. This allows for early entry's and the optimal entry points.

RIMM

Most investors buy for the wrong reasons, and at the wrong times. Candlestick signals do not merely illustrate when investor sentiment is turning in a trend, they also orient an investors perspective to fight through all the negative or exuberant sentiment. They can be prepared to buy when everybody else was selling. The same is true when exuberant buying occurs at the top of a trend. Candlestick sell signals are a part of a candlestick investor's psyche, preparing an investor to sell at the top versus being a buyer at the top.

Many investors lost a lot of money in this last market decline. They will have a very difficult time mentally preparing themselves for getting back into the market. Candlestick Forum investors made moderate-to-good profits during the extensive decline. Short funds were often utilized during the downtrend. This produces a completely different frame of mind when the market showed excessive buy signals at the bottom. There was not fear and panic. There was calculated covering of the short positions and the establishment of new long positions. The shift from being relatively short over to relatively long in the portfolio was done with rational conversions of a trend direction. Take advantage of the information built into candlestick signals. It puts you in control of the market versus the market in control of you.

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Good investing,

The Candlestick Forum Team


 

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