Candlestick Trading Blog

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The forex, or foreign exchange market is the world’s largest financial market. While that sounds intriguing, investors interested in forex trading must get some sort of training before jumping into this market. This article discusses some of the basics of forex training that may be received as well as the forex markets in general. The purpose of the forex trader is to obtain profit through the buying and selling of foreign currencies. The forex exchange is traded without having the constraints of a central physical exchange and transactions are conducted online or over the phone. The average volume of this market is between 1.5 to 2.5 trillion each day and transactions can be executed quickly and with low transaction costs. Investors who are interested in obtaining forex training must learn about the common types of analysis, the factors that influence the currencies, potential risks for trading forex, and the proper trading tools and data. Technical analysis is the most common and successful analysis for analyzing the forex markets. This type of forex training focuses on the price action of the market only and ignores fundamental factors. Technical analysis consists of support and resistance levels as well as technical studies. The idea is that the market will trade above its support levels and below is resistance levels. If the level is broken, then the market should continue in that direction. The support and resistance levels are found by analyzing chart formations. The technical studies typically consist of various technical studies which are interpreted. Investors who practice technical analysis also research the technical studies in addition to learning how to read charts. Fundamental analysis is another method used to analyze the forex markets. This forex trading strategy consists of assessments taken from factors such as the economic condition of a country, monetary policy, and any other factors that could potentially affect the price action. During your forex training you will most likely find that using fundamental analysis when fx trading is difficult to do. It unfortunately is harder to control risk and it does not provide specific entry and exit points. Most forex investors opt to use technical analysis when trading currency. When you receive forex training you will also learn about the currency pairs and their symbols. There are about 16 total foreign currency pairs however you most likely will not trade all of them. Many investors typically trade the top seven major currencies. These include the U.S. Dollar (USD), Euros (EUR), Japanese Yen (JPY), UK Pounds (GBP), Swiss Francs (CHF), Canadian Dollars (CAD), and the Australian Dollars (AUD). Additional currencies include the New Zealand Dollar (NZD), and the South African Rand (ZAR). Forex training is an investment that is sure to assist you in making a profit, if you are serious about it. After your receive your training, you will need to find a forex trading system that works for you, and you will need to look into obtaining a forex broker. Now that you know a little bit about the forex markets, find a class or online trading course and get started! Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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The Advantages to On Line Stock Trading Due to the advent of the internet the average Joe (or Jane) can now trade stock from the comfort of his or her home. On line stock trading has dramatically changed the dynamics of the stock market allowing investors to trade faster and smarter through the use of various tools and resources available at the click of a button. Remember that the purpose of trading stock online is to build your wealth to ensure that you are comfortable in your retirement, or maybe even so that your kids are comfortable financially as well.  Whatever your reason, it is imperative that you do the extensive research and training required to achieve your definition of success. This article discusses the advantages of on line stock trading that every successful trader should know. Easy access to your account is a must when looking for a stock trading system.  Most offer this, thus easy access is an on line stock trading advantage offered by online brokerage firms.  Now all investors have to do is log in and look-up the information required, rather than having to wait until the following day to call the stock broker.  In addition, online stock brokers typically charge a lot less and you can get them in various degrees. Investors can opt to utilize a full-service broker who will assist you with trading and make the trade happen for you, or investors can utilize an online discount broker.  Discount brokers offer less service for those traders who need only for the broker to make the trade, but not offer any advice or guidance. On line stock trading also offers immediate (or almost immediate) help when you are in need. Online brokerage firms often have trained investment brokers available to assist you during the day with your trading needs. Talk about quick service!  With this level of service available it can easily be said that on line stock trading obviously saves you time and money.  Another advantage is that you can now trade stock from anywhere and quite often at anytime that works for you. You can choose to either stay at home never changing out of your pajamas, or you can stake out at Starbucks or another neighborhood coffee shop that offers internet services.  How nice is it also that you don’t have to wait around for your broker to call you back when it’s convenient for him or her.  You determine your own schedule when online stock trading. There are many additional advantages to on line stock trading that are only a click away!  You must begin to invest in yourself, do your research, practice as much as you possibly can, and then practice again. Develop your trading plan, find a system that works for you, and also find an online forum that discusses the type of trading that you are going to do.  Whether you want to trade futures, trade currency, or commodities, you will be able to find an online forum that you can join. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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Trade Forex with the Pros To trade forex is to buy one currency and to sell another currency simultaneously. The forex market is the largest market in the world trading more than three trillion dollars every day. Forex trading is considered speculative meaning that only a low percentage of market activity represents companies’ and governments’ currency conversion needs. Forex currency trading is also highly liquid which helps to ensure narrow spreads and price stability. When investors trade currency, each currency works against the other. This is due to the constant fluctuation of the market and as a result it provides numerous trading opportunities. In order to trade forex with the pros, you need to understand the terms associated with forex currency trading, also referred to as foreign currency trading. You will need to understand what a bid and an ask are. The bid is the price that you can sell currency at, and the ask is the price that you can buy currency at. Another term that you should be familiar with is the term spread. The spread is the difference between the bid and the ask, or in other words, it is the difference between the price that you can sell forex currency at and the price that you can buy forex currency at. The second term that you should be familiar with is a pip.  Pips are the smallest unit in which a cross price quote changes and is determined by comparing the bid and the ask price. To determine the pip when you trade forex, you have to know how many decimals a country’s currency is quoted at, and then you cancel out the zeros on the amount you trade. The most commonly traded foreign currencies are called the majors. There are five major currencies and they are listed below. The first major currency in the U.S. dollar which is the world’s main currency and is the universal measure to determine all other currencies traded on the forex exchange. The second foreign currency is the Euro. The Euro has a strong international presence and was designed to become the premier currency used to trade forex. The British pound is heavily traded against the euro and the U.S. dollar, but is not quite as strong as the previous two currencies. The British pound used to be the currency of choice until the end of WWII. The Japanese yen is the third most traded currency in the world and is very liquid. The Swiss franc is the only currency of a major European country that does not belong to the G-7 countries or to the European Monetary Union. Unlike the stock market which takes place on a central stock exchange, forex traders trade forex on the Foreign Exchange Market. They are also able to conduct trading 24-hours a day at whatever times works best for them. This works well for investors who may not be able to conduct fx trading during the day during their regular work hours. Forex trading is a great way for investors to make money trading however, they must be sure to invest in their education of the forex markets as well as a forex trading system that works for them. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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Compile a List of Penny Stocks to Play the Stock Market Penny stock investing is an investment method that is somewhat controversial depending on your investment philosophy for playing the stock market. Before you can begin to invest in this type of stock, you must first compile a list of penny stocks to meet your criteria. On reason this type of investing is controversial is due to the high volatility of trading penny stocks on the OTCBB and the Pink Sheets and the extreme due diligence required when building a list of penny stocks. The general definition of a penny stock according to the SEC is stock that is priced below five dollars per share.  Penny stocks typically don’t contain much of a history and the company as a whole is valued at about four million dollars or less. Other issues that investors have with this form of trading include the statistic that only about five percent of small cap stocks are truly worth investing in. These statistics can be somewhat discouraging therefore contributing to the negative reputation of penny stock investing. The good news, however, is that with the right guidance and knowledge, you can make a significant profit in this market. Technical analysis can assist investors who need to build a list of penny stocks, and is often the only method successful in predicting penny stocks price movements. Stock technical analysis uses charts to identify price patterns and trends by examining the trading history of a stock and through observation of indicators. There is actually a major group of technical indicators, a few of which will be discussed in this article. The first indicator to discuss is gap analysis because in the case of penny stocks, the gap almost always fills. The gap is the open spot in the chart caused by an opening price and range that is greater than the previous period’s close. The analysis is done by finding gaps in the daily, weekly, and intraday charts. Another indicator that can assist you in building a list of penny stocks is range analysis. Range analysis is used to determine the best buy and selling points, as well as the potential breakout and breakdown levels. This analysis utilizes the price range, and the opening and closing prices to identify support and resistance levels. The last indicators that will be discussed in this article include the strength indicators and oscillators. These indicators compare the current price action to the history, therefore showing the relative strength or weakness of a stock. One of the most commonly used of these indicators in the RSI which stands for “relative strength indicator.” It can indicate oversold and overbought price conditions therefore providing tips for traders to buy stock or to sell stock. Compiling a list of penny stocks takes time and many hours of research and study. Once the list is built, however you can then begin to exclude stocks that don’t perform well and you can add others too as time passes. Continue to research potential stock market technical analysis tools to assist you as you begin to buy penny stocks. Remember as well that while penny stocks can bring about great fortune, the risk factor is extremely high. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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What are No Load Mutual Funds? In order to understand what it means to invest in no load mutual funds, you must first understand what it means to invest in loaded mutual funds.  Loaded mutual funds are funds that carry a sales load which is commission paid to investment brokers typically ranging anywhere from four to eight percent.  Mutual fund investing of this type generally means that you pay the sales fee up front, on the back-end, or there is an annual fee associated with it. No load mutual funds do not contain any type of commission or sales charge because the shares are distributed directly to the investment company, rather than going through a secondary party. The reason for this is that there is no transaction cost to purchase this type of mutual fund and therefore all of the money invested is working for the investor. The justification provided for loaded mutual funds is that the investors are compensating a sales intermediary, such as an investment advisor, or a financial planner for his or her time and expertise in the selection of an appropriate fund. Investors seek out no load mutual funds instead of loaded mutual funds because they believe that they will outperform the higher priced funds over time because the fees won’t eat away at the overall net return on investment.  The shares for this type of fund are purchased directly from a mutual fund company or indirectly though a mutual fund supermarket.  True no load mutual funds contain absolutely no fees, whereas a supermarket no load fund may contain a very small fee referred to as the 12b-1. This 12b-1 fee can be 0.25% to 1.0% of its assets, and is also known as the cost of distribution. It is still however, considered a no load fund and will lead to better investing and diversification of your investment portfolio. Words of wisdom regarding no load mutual funds consist of a few known facts that investors should realize before investing money in mutual funds. For instance, for every high-performing loaded mutual fund, there is a similar no load fund or low load mutual fund that can be purchased at a cheaper price. When investing in mutual funds, no load funds consistently outperform loaded funds after you take into consideration final calculations, and a load does not go towards any type of incentive for the fund manager to perform better. Investing advice that you should also consider is this. If a loaded mutual fund is held over a long period of time, the effect of the load is not diminished as quickly as you would think, if paid up front.  It is interesting to note that if you selected a no load mutual fund, that money paid (as if it were a loaded mutual fund) would have been compounding over the whole time period. In fact studies have shown that no loaded mutual funds significantly and consistently (as stated above) outperform loaded funds. Successful investors realize that to build a strong portfolio, mutual fund investing is a must.  It is up to each investor, however to determine the type of mutual fund that they will invest in to achieve portfolio diversification. While loaded mutual funds can still provide a great return, each investor will ultimately need to decide whether the services provided by these loaded funds are valuable enough to justify giving up the higher returns of no load mutual funds. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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Foreign Currency in the Forex Markets Forex is short for foreign currency exchange and it is very liquid and is the world’s biggest market for trading foreign currency. The forex market has been around since 1971 where large companies and a few very wealthy investors were only able to practice forex trading. With the advent of the internet, however now anyone with access to the internet and a meager amount of money can participate.   When identifying foreign currencies you will see them with a three letter code, where the first two letters stand for the country and the last letter identifies the nation it represents. There are currently seven major currencies on the forex that are the most heavily traded. These include the U.S. Dollar (USD), Euros (EUR), Japanese Yen (JPY), UK Pounds (GBP), Swiss Francs (CHF), Canadian Dollars (CAD), and the Australian Dollars (AUD).  There are many advantages to fx trading. Below is a list of advantages as seen by most forex traders. 1)  The forex market is open 24 hours, 7 days a week around the clock, which is not the case when trading stock. You can also trade from just about anywhere as long as you have either a computer with high speed internet, or access to a phone. 2)  Forex traders can be profitable in any conditions when foreign currency trading whereas when playing the stock market, stock prices must rise in order to make a profit.  Forex trading can make a profit no matter how the economy is doing. 3)  Investing in stock and other types of investments typically require and investor to set aside a large sum of money.  When trading currency, you can use as little as $300.00 to set up a small account that will let you trade in amounts of 10,000 units. 4)  Forex currency trading can be done using borrowed capital. This means that you don’t need hundreds of thousands of liquid assets to trade currency in large numbers. You can practice margin trading where a small amount of your own capital can be used to leverage a large chunk of borrowed assets, which can then be invested. 5)  Forex trading also does not require you to pay commissions to a stock broker.  The dealers in forex trading instead receive part of the spread between the buying and selling price of a foreign currency. This is generally a fraction of a percent so it is a very small amount per trade. 6)  Unlike the stock market, it is close to impossible for any individual or company to manipulate the forex market due to the volume of trading that takes place each day.  As you can see there are many advantages to trading foreign currency that are missing when trading in the stock market. Forex markets have different regulations and terminology but the same overall principals apply.  You must stick to your trading plan, and perform technical analysis. If you are interested in learning how to conduct currencies trading, check into online resources and be sure to read a lot books about forex currency trading for beginners. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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Online Trading Course in Forex Trading Many people are interested in trading forex these days due to the advent of the internet. This has made forex trading more available to a wider population that it previously did not reach. The only problem now is finding the time to take an online trading course that equips you with the knowledge and tools to trade successfully in the forex markets. New investors must understand that the forex markets are very technical and contain an array of processes, concepts, and terms that you must understand. The great thing about taking a course online is that you can learn at your own pace and many courses are free if you are just leaning the basics. They are numerous websites that offer an online trading course for free for new forex traders.  In addition to online classes there are also many free seminars that are also available online. Just like taking a trading course online, you can also attend a virtual online seminar at either no cost or at a cheaper rate than if you were to attend a seminar in person. Not only is education important when learning fx trading, you must also practice repeatedly.  You can learn everything about online forex trading, but until you practice you cannot get a complete picture of the process.  In addition to taking an online trading course, you should also set up a demo account.  These demo accounts provide a great opportunity for new traders to learn how to trade forex, without the risk of losing real money.  Many websites offer a demo account to new investors so that they can practice their forex trading strategy with no risk of money lost. They are purely for practice. When you are looking for an online trading course that will provide you with useful tools and the knowledge necessary to trade successfully, you must look for the following: 1)  Real Time Profit Records – Before you purchase any type of forex education course, you must ask for these records. If they will not provide these records to you it may be because they do not have confidence in their own system or they haven’t used the system yet themselves. If that is the case, then move on.   Unfortunately, this does happen a lot when dealing with online trading. 2)  If the course is free, why are they offering it for free?  Is there a catch? If you take this free course, are you then obligated to enroll in their trading site? 3)  Once you begin reading a book about trading forex, does it feel like the author is promoting only one particular forex trading system, in a very pushy sort of way? Many people these days are referencing free articles and advice provided in investor blogs, and they are joining online forums instead of taking a free online trading course. This way they are provided with the best advice when it comes to finding a suitable course to learn about forex signals, rather than researching endlessly on the internet on their own. If you are serous about investing in the forex market, then you must build your trading skills and knowledge through various seminars, workshops, video tutorials, by taking an online trading course as discussed in this article, and through reading recommended books. Learn to implement technical analysis into your trades, learn how to use the technical indicators and practice first through the use of a demo account. In doing this, you will greatly increase your chance at success when trading on a forex exchange. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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Money market mutual funds are a type of mutual fund that invests in short-term debt securities of agencies of the U.S. Government, banks and corporation, and U.S. Treasury Bills. These investment funds are fixed at $1.00 per share and only the yield fluctuates. They invest money in money market securities that typically have a maturity date of 270 days or less and they report seven-day average income yields because the securities in the fund change so frequently.  The average maturity of securities held in an SEC-registered fund must be 90 days or less, although it can have a much shorter average maturity. They are designed to offer features that are best suited to fit the needs of smaller investors whereas minimum initial investments range from $500 to $5,000.  Investment advisors will often sell money market mutual funds and they have their own proprietary funds that offer money market investment opportunities. You can also purchase these types of funds directly from a brokerage firm or from a mutual fund firm similar as you would purchase stock. Money market mutual funds should not be confused with money market accounts.  Money market accounts are interest earning savings accounts offered by the FDIC (Federal Deposit Insurance Corporation).  Not to be confused with money market mutual funds which are sponsored by fund companies and carry no guarantee of principal.  There is some caution to be had when investing in money market mutual funds. Some of which are briefly described below. 1)  Investment Objective – If you are looking to begin retirement investing, this is not the fund for you. If you are looking to practice long term investing at all, it is not the fund for you.  The return on investment generated by this type of fund is typically only slightly above the rate of inflation and is not sufficient for a suitable retirement investment.  They should instead be used as a portfolio management tool to place or to “stash” money temporarily. 2)  Expense Ratio – If you have a higher than average expense ratio, it will eat into the returns produced by money market mutual funds. 3)  Investment Risk – Many investors see this type of fund as risk free.  Please remember that no investment is risk free. Stick to funds that are sponsored by the prime investment companies in the industry that have a huge stake in maintaining a net asset value of $1.00 per share. Money market mutual funds offer a convenient way to “stash” cash reserves when an investor is not quite ready to make an investment or is anticipating a near-term outlay for a non-investment purpose. Investment brokers will often use these types of funds to provide cash management services to their clients.  They can actually earn the client extra percentage points in annual returns above those earned by other possible investments, by placing a client’s dormant cash into money market mutual funds. These types of funds are very unique in nature and therefore must be studied very closely.  Whether you decide to use this type of fund as an investment vehicle or as a temporary place to “stash some cash” make sure that you know as much as you possibly can about the fund to ensure that you avoid making investing mistakes. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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Foreign Currency Exchange Trading – Forex Markets The foreign currency exchange market was established in 1971 and is now the leading market in the world.  The forex market has an average daily trading volume reaching one and a half trillion dollars at times and it is open twenty-four hours a day. Foreign currency exchange trading can be broken down into several key essentials including the market, your broker, your broker’s trading software, and yourself. Basically you will make your trading decisions, enter them into your trading software, and then just watch the results. When deciding which forex software you should use, there are many online that offer forex investors free access to operating software that will let them practice the various methods used to conduct online trades. The trading systems used for foreign currency exchanges might include software that works on an individual account, or for investors who trade as part of an investment club or group. A really good online forex trading system will show you the ropes and teach you how to look at trends and study market movement. You will also learn how to put in strategic stop loss to keep you from losing too much money when the market goes against you. It is important to understand that the trading tools utilized by investors can make an impressive differentiation to the amount of money that is earned each trading day. Trading forex is very unique in comparison to the other trading exchanges.  The foreign currency exchange is entirely digital so the rate of foreign exchange changes so quickly that successful forex traders must be able to react to the market shifts within seconds. In fact online foreign currency trading eliminates the need for a classic stock broker therefore making this possible.  Forex trading can be done at the touch of a button and no longer requires the need to make phone calls or to shout and wave papers in the air like a crazy person in order to get that great deal! In addition to learning and developing your forex trading strategy, you must stay current with events taking place in the world market. When dealing with the foreign currency exchange you must know which countries are experiencing economic growth or a recession so that you can make the best currency trading decisions possible.  You should avoid countries that are unstable due to war, or international economic sanctions and you should obviously invest in those countries that are experiencing growth. The foreign currency exchange can be a great place to make money, but can also be a place that you can lose big.  It is absolutely necessary to ensure that you have studied, practiced, implemented a forex trading system that works for you, and that you stay on-top-of current trends and the world market. Once you have started trading, you must then also visit online trading forums and read as much as you can. You need learn about charting, fundamental and technical analysis, stops, limits, and many more terms that are essential to successful trading. Never stop researching and continue to increase your knowledge of the foreign currency exchange so that you are a successful forex trader. Online Stock Market Reviews presented live via the internet by Stephen Bigalow

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