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Online Stock Market Investing

Online stock market investing has replaced much of traditional investing directly through a stock broker. Online investing through a discount broker can greatly reduce the cost of investing in stocks but comes with its own unique set of risks. Bypassing a stock broker saves money and foregoing the advice of a professional with years of experience can make online investment very costly.

To avoid making costly mistakes it is important that the investor start by researching online brokers to make sure that they are licensed within their state of operation. Then the investor needs to learn about the basics of stock investing and gain familiarity with the research tools that come with the online brokerfs trading platform. Whether the investor trades through a broker or trades online, fundamental analysis of stocks and market sectors still applies. Online stock market investing makes buying and selling faster. It also requires that the investor know more than was necessary when he called his stock broker for advice before buying or selling.

Online stock market investing uses electronic communications networks to connect the investor or trader to the stock exchange. Nevertheless some online orders still are routed through agents of the discount broker to approve trades. This step helps prevent potentially unlawful trades. Instead of making phone calls the online stock investor uses a trading platform. This is a computer program that helps the investor in picking stocks, review pertinent information, run investment scenarios, and follow the stock market news. Such trading platforms have built in technical analysis that helps the investor or trader to make rapid decisions for real time buy and sell orders.

In some ways the psychology of investing and, especially, the psychology of trading can be more important and more dangerous in online stock market investing. To a degree working at a computer with a trading platform is like a big video game. Trading in Forex, for example, has addictive components. Not having to go through the ritual of calling a stock broker can lead to bad trading decisions made in an instant and regretted forever. The amount of leverage available in online trading can lead to fantastic gains if the investor is prepared and buys a call in options investing in a timely manner. The same degree of leverage can wipe out an investorfs capital in a few minutes as well.

One of the especially useful trading tools that often comes with a trading platform for online stock market investing is the ability to gback testh investment strategies. The investor makes a number of hypothetical investments and then tests them during different sets of market conditions in different time frames. There are a large number of online brokers. Fees differ and services differ. Depending upon the individualfs investment strategy a given broker may or may not fit. Picking a broker is like buying stock. One does not have to go with a broker unless the services and price are right just like one does not need to buy stock unless the conditions are right. Online stock market investing allows the investor to engage in after hours trading, engage in commodities trading, and any other market investing. The only limit is how hard and long the investor wants to work.

Market Direction: The steady uptrend of the markets are producing excellent price pattern opportunities. The Fry Pan Bottom patterns are working very well. For short-term traders, the J-hook patterns are producing high probability, high profit trades. Learning candlestick signals and patterns create the opportunity to make much stronger profits than those produced in a normal slow moving market. The steady uptrend in the market indexes continue to reveal no dramatic change of investor sentiment. The longer this condition prevails, the greater the profitability of candlestick pattern results.

Investing is merely analyzing where money should be placed to produce high probability profits. There are many techniques that attempt to refine those opportunities. Candlestick signals and patterns are the purest form of visual confirmation. Each formation reveals investor sentiment right at that time. The combination of candlestick formations produced patterns that can easily be analyzed from their previous results. The steady uptrend over the past nine months have produced very good profits. This was a time when most money managers have still been holding money in reserve because they were convinced the bottom was not in yet. As expressed in the last three newsletters, the most profitable technique for making money in the markets is to let the markets tell you what the markets are doing.


The patterns produce consistent results. Will you make money each time a pattern can be identified? Definitely not, but the probabilities are so great that the results will produce a statistically favorable result, not utilizing the information built into patterns will greatly diminish your potential returns.



These results can be leveraged to much bigger profits when utilizing options or trading commodities. The more an investor becomes knowledgeable about candlestick pattern results, the more they will want to trade entities that produce much greater profits utilizing those results. Commodity trading, with its extensive leverage capabilities, allows an investor to make big profits knowing the simple rules associated with the patterns.

Live Cattle

There will be a Two-day Candlestick Training session scheduled for the end of January. There will also be an Option Trading Weekend training course scheduled in the next few weeks. The new Candlestick Commodity Trading course will be scheduled over the next few weeks. The schedule will be on the website on Monday. Keep your calendars open. The March 21 Investment Cruise has information available on the home page.


Chat session tonight at 8 PM ET.  Learn what to do after getting stopped out.

Good investing,

The Candlestick Forum Team

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