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Trading Account

A trading account is very similar to a traditional bank account however it holds cash and securities and it is managed by an investment dealer. The account holder seeks to use this account to trade securities such as stocks, commodities, futures or other financial instruments through various trading strategies instead of through a buy and hold strategy.

Investors may open more than one type of account at various brokerage firms in order to separate their trading strategies. For instance, an investor may have one account for trading stocks in the short-term, another account for retirement savings, and another account for long term investing of stocks. More advanced stock investors may also have a margin account in order to borrow money from their broker in order to place trades.

When deciding to open an online account you have to look at the different types of online brokers available. There are two types to choose from including an online discount broker and a deep discount broker. The difference between these two types of brokers is their commission fees. Deep discount brokers have commission fees that are as low as one dollar per trade whereas discount brokers have commission fees between about seven and twelve dollars per trade. Of course the commission fees for both of these stocks brokers are better than that of a full service broker, however full service brokers are real live brokers and not online brokers.

One thing to ensure when you open a trading account with a brokerage firm is that their website provides real-time quotes. Sometimes they charge extra for real-time quotes if you are using a deep discount broker, since the fee is so low. It is best to go with a broker that offers real-time quotes, especially if you are new to stock investing. Some long term traders can handle the lag time between the actual quoted price and the delayed price, but it is not suggested. The lag time can end up costing you more than the commission if you are not careful. It is best to just stick with a site that offer real-time quotes access.

Also, when opening a trading account be sure that you are aware of any non-activity fees. This fee occurs when there has not been a stock trade made within a certain number of months. Stock traders must read the fine print and do assume there isnít one if you are not told upfront by the broker.

Market Direction: Candlestick analysis provides one major benefit. It provides a built in discipline that allows investors to make inordinate profits as well as protecting a portfolio from an extreme downdraft. The financial news commentary has expressed over and over the conditions of many Americans that have lost more than 50% of their retirement fund value. That is a shame. The real shame is that many Americans entrust their retirement funds to so-called professionals. Most money managers have a completely different perception about how to produce good returns in a portfolio. If you hang on to good companies for the long-term, but it will produce good profits. That may be true if the market doesn't decline by 50% or a new White House administration may have adverse effects on specific sectors/industries.

Candlestick signals allow an investor to see what is occurring in investor sentiment. It is visual! The signals and patterns have specific results that have been identified, tested, evaluated, and utilized for proven profits for centuries. This is the information that allows an investor to evaluate whether at a stock is going up or going down with a relatively high degree of accuracy. Not to use candlestick analysis is a detriment. Even if you are a fundamental investor, candlestick signals reveal valuable information about what is occurring in a stock price. A money manager or an investor that does not utilize the built  in benefits of candlestick signals is putting themselves at a disadvantage.

Having the ability to analyze reversals and price trends with a much greater degree of accuracy allows for multiple investment strategies. Extremely good profits can be made investing in stocks alone. Those returns can be improved with margin accounts. Huge profits can be obtained utilizing option strategies with candlestick signals. Once an investor acknowledges that prices move in patterns based upon the changes of investor sentiment, they will obtain a very strong grasp of how investment price movements work.

As illustrated in our recommendation of BOOM, visually recognizing where a pattern should be confirming allows for the proper entry it can potentially high profit price moves. The Jay hook pattern is clearly evident. It was recommended if it opened positive on Wednesday. However, the lower open, followed by continued selling, did not instigate purchasing the position. That does not diminish the prospect of a strong price move in the stock. One of the features provided by the Candlestick Forum members area is  a follow-up video each night for the analysis of each recommendation. Just because there was a one day selloff during the uptrend that was producing the Jay hook pattern, that did not mean the pattern was not working. Instructions for entering this trade was very simple. If the price opens higher the next day, buy immediately. That would have been evidence the pattern was still in progress. As can be seen, a positive open was just the initial portion of the buying today confirming that pattern.


Candlestick signals allow for very simple if/then entry strategies. If BOOM opens higher, buy immediately. The Jay hook pattern would be  confirming. If BOOM opened lower, the Bearish Harami on Wednesday would be confirmed. Obviously, this would have kept an investor from entering this trade. Candlestick analysis is not difficult to understand. It provides a set of signals and patterns that have expected results. If you are just learning how to invest, learning candlestick signals is the purest form of investment perspectives.  It allows an investor to immediately make money. The seasoned trader can utilize the information built into the signals to help modify the bad habits developed by learning investment techniques from others that do not use investment information correctly.

The Dow has been pushing on the 200 day moving average resistance level for the past few days. Today it showed continued bullish sentiment pushing into that resistance. The NASDAQ provided better clarity as to investor sentiment. After yesterday's Doji, it opened higher today which was a very clear signal the uptrend was still in progress. This is based upon one of the simple rules applied to the Doji.



Option traders - Learn how to use candlestick signals and option trades correctly. June 13 and 14th, the Candlestick Forum Option trading class will be presented.

Whether a beginning option investor or an experienced trader, you will learn a clear and simplified process for utilizing option trades with high probability candlestick signals and patterns. This first option trading session is being offered at a special price. The normal price of $1597.00 is being reduced to $797.00. This two-day training will allow for plenty of time for asking questions. You will not learn extensive and difficult option formulas. You will not be exposed to analytical processes that take hours of your time each night to establish an option trade. You will learn the simple option trading strategies that best work with each candlestick signal and pattern. This combination makes for a very powerful trading platform. It will be easy to understand. Take advantage of the information built into candlestick signals for establishing the correct option trades. Click here for more information.


Chat session tonight at 8 p.m. ET. Bring your friends and brother-in-law. Click here for instructions.

Good investing,

The Candlestick Forum Team

This Week's Early Bird Specials 50% OFF!

Options Training with Steve Bigalow - June 13 & 14, 2009

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Candlestick Trading Forum