Many today prefer to buy stocks online because they don't have the time to get involved in trading decisions during the day and want to take decisions only when they are free, that might even be at midnight. Also online trading service providers offer the individual a whole wealth of information to analyze and internalize before making the investment. Further the commission that these service providers charge on each transaction is much less than what on-floor brokers do. So the investor earns a lot more on every transaction.
While trading online, there are a few things that you should be careful about. We will try here to provide you with some basic indicators.
You must understand that however fast your internet connection is, and whatever software and hardware you are using there will be some time lag between the time you click to place your order and the actual time when your order gets processed and registered. This time lag, depending on how long it is can seriously alter your final gains or losses. What you can do is to see the time-lag is kept to a minimum. That would be possible if you have the best set-up in place and your trading firm provides its subscribers with the best service.
You must get real time updates and stock quotes from your service provider. If it is delayed then you will be placing orders for rates which are long history. And then it will take further time to process your order. What you will finally get is something a lot different from what you were expecting. So the feeds have to be live and real time. There can be no two-ways about it.
to be successful in the field of stocks one is required to have some primary knowledge as to what is what and investing on something will yield how much result. In this article we will briefly try to explain a few fundamental things that any investor on the stock markets should know. And since you will be investing online and there will be no guide for you, knowing these basics will definitely stand you in good stead.
As online trading get increasingly easy many investors drop their guard. That is criminal. You just cannot take it easy on the net. There are a few simple things you should practice while investing on the net like always have all you transactions confirmed by your online brokerage firm, never trade from unprotected computers, regularly update the security features of the software of your computer, never provide your account information to anyone, etc.
source: http://www.tradeforex2000.info/forexarticledirectory
Wednesday, January 2, 2008
4 Types Of Technical Indicator You Need When Trading Forex
If you have any experience in using any kind of charting packages to assist you with your forex trading, you will know that there are endless different technical indicators you can use. In this article I'm going to be asking what are all these indicators and which ones do you really need?
As you can guess from the title of this article, there are essentially four different types of technical indicator and they are as follows:
1.Trend indicators.
MACD, Parabolic SAR and the various moving averages are a few examples of trend indicators and they can all be used to identify a trend. It's widely argued that you should only trade with the trend so all of these indicators will help you to take the decision out of your hands, and therefore dictate which way you should be trading. Your only decision now is at what level to enter the trade.
2.Momentum indicators.
These types of indicators are essentially oscillating indicators and are most useful for determining overbought and oversold positions and can be very useful in signalling the start of a new trend. Examples include RSI, Stochastics and CCI.
3.Volume indicators.
As the name suggests, these types of indicators show the volume of trades behind a particualr price movement which can be extremely beneficial because a price movement backed up by high volume is a much stronger signal than a price movement based on low volume. Examples here include Chaikin Money Flow, Force Index, Money Flow Index and Ease Of Movement.
4.Volatility indicators.
Volatility indicators generally use ranges to show the behaviour of the price and the volume behind any movements. This is useful because any dramatic change in behaviour can provide a good entry signal. Common examples include Bollinger Bands, Average True Range and Envelopes.
So there you have the four different types of technical indicators available to you. Which ones you use is entirely up to you, but it's generally advised that you have at least one type of each in order to provide additional confirmation for entering a trade.
Trading forex using technical analysis is all about probabilities in that when you enter a long position, for example, you want all of your chosen signals to be signalling an upwards movement, therefore indicating a high probability of an upwards movement taking place.
If you use a strict stop loss policy and use these different types of indicators to confirm positions, then over time this high probability trading method should provide you with more winners than losers in the long run.
source: http://www.tradeforex2000.info/forexarticledirectory
As you can guess from the title of this article, there are essentially four different types of technical indicator and they are as follows:
1.Trend indicators.
MACD, Parabolic SAR and the various moving averages are a few examples of trend indicators and they can all be used to identify a trend. It's widely argued that you should only trade with the trend so all of these indicators will help you to take the decision out of your hands, and therefore dictate which way you should be trading. Your only decision now is at what level to enter the trade.
2.Momentum indicators.
These types of indicators are essentially oscillating indicators and are most useful for determining overbought and oversold positions and can be very useful in signalling the start of a new trend. Examples include RSI, Stochastics and CCI.
3.Volume indicators.
As the name suggests, these types of indicators show the volume of trades behind a particualr price movement which can be extremely beneficial because a price movement backed up by high volume is a much stronger signal than a price movement based on low volume. Examples here include Chaikin Money Flow, Force Index, Money Flow Index and Ease Of Movement.
4.Volatility indicators.
Volatility indicators generally use ranges to show the behaviour of the price and the volume behind any movements. This is useful because any dramatic change in behaviour can provide a good entry signal. Common examples include Bollinger Bands, Average True Range and Envelopes.
So there you have the four different types of technical indicators available to you. Which ones you use is entirely up to you, but it's generally advised that you have at least one type of each in order to provide additional confirmation for entering a trade.
Trading forex using technical analysis is all about probabilities in that when you enter a long position, for example, you want all of your chosen signals to be signalling an upwards movement, therefore indicating a high probability of an upwards movement taking place.
If you use a strict stop loss policy and use these different types of indicators to confirm positions, then over time this high probability trading method should provide you with more winners than losers in the long run.
source: http://www.tradeforex2000.info/forexarticledirectory
Basic Tips in Forex Trading
Tip 1 – When trading forex, always make sure to trade with a stop order, not because you expect to lose, but to prevent a large loss from an unexpected news event like a currency devaluation, government coup d'etat, terrorist attack, natural disasters, or whatever.
Tip 2 - New traders to the forex can learn to trade with the less volatile pairs and then move to the more volatile pairs later.
Tip 3 - Trade only with the trend and market momentum. As they say, "the trend is your friend." All currency pairs are trending or oscillating in some form at all times. Trending is a directional move up or down, oscillating is up and down movements going sideways within a range. We usually like to trade in trending movements only.
Tip 4 - If you have any currency pair that has moved strongly in your favor you can close out half of your lots. It is better to have the "money in the bag," than waiting for "potential winning" to come later. the market might go back against your trend later.
Tip 5 - Carry trades are great, these are trades where your objective is a combination of high interest income and some capital appreciation and you intend to hold on for a long period of time. But carry trades are usually done by seasoned traders only.
Tip 2 - New traders to the forex can learn to trade with the less volatile pairs and then move to the more volatile pairs later.
Tip 3 - Trade only with the trend and market momentum. As they say, "the trend is your friend." All currency pairs are trending or oscillating in some form at all times. Trending is a directional move up or down, oscillating is up and down movements going sideways within a range. We usually like to trade in trending movements only.
Tip 4 - If you have any currency pair that has moved strongly in your favor you can close out half of your lots. It is better to have the "money in the bag," than waiting for "potential winning" to come later. the market might go back against your trend later.
Tip 5 - Carry trades are great, these are trades where your objective is a combination of high interest income and some capital appreciation and you intend to hold on for a long period of time. But carry trades are usually done by seasoned traders only.
Dollar starts 2008 on a weak footing
LONDON, Jan 2 (Reuters) - The dollar fell half a percent versus the euro on the first trading day of the new year with investors inclined to bet that coming U.S. economic news would be soft enough to confirm the need for more interest rate cuts.
Although U.S. existing home sales data on Monday was a bit better than expected, it did little to alter the downbeat view on the world's biggest economy cemented by the previous week's soft reports on new home sales and durable goods orders.
On the last trading day of 2007, U.S. short-term rate futures were pricing in as much as 96 percent probability of a Federal Reserve rate cut to 4.00 percent on Jan. 30. That would bring the U.S. benchmark, currently 4.25 percent, into line with euro zone rates, completely erasing the dollar's yield advantage over the euro.
Market activity was expected to slowly pick up as investors return from Christmas and new year holidays although Japan and China remain on holiday until Friday.
For complete article, http://www.reuters.com/article/usDollarRpt/idUSL024375820080102
Although U.S. existing home sales data on Monday was a bit better than expected, it did little to alter the downbeat view on the world's biggest economy cemented by the previous week's soft reports on new home sales and durable goods orders.
On the last trading day of 2007, U.S. short-term rate futures were pricing in as much as 96 percent probability of a Federal Reserve rate cut to 4.00 percent on Jan. 30. That would bring the U.S. benchmark, currently 4.25 percent, into line with euro zone rates, completely erasing the dollar's yield advantage over the euro.
Market activity was expected to slowly pick up as investors return from Christmas and new year holidays although Japan and China remain on holiday until Friday.
For complete article, http://www.reuters.com/article/usDollarRpt/idUSL024375820080102
Tuesday, January 1, 2008
FOREX-Dollar up vs euro, down vs yen as 2007 closes
NEW YORK, Dec 31 (Reuters) - The dollar rallied against the euro but slipped against the yen in the final trading day of 2007 on Monday, though dealers resisted making big bets until volume increases after New Year's Day.
The dollar was on track for its biggest annual decline in four years against a basket of major currencies on expectations the Federal Reserve will have to lower interest rates further to stave off a recession.
The Fed already has cut its benchmark federal funds rate by a full percentage point in three moves, beginning at its September meeting, in an effort to ease a credit crunch which began in August.
It was the second straight year of declines for the dollar index.
"It's a funny market right now, and I can't point to any fundamental factor for what we are seeing," said Stephen Malyon, currency strategist at Scotia Capital in Toronto. "We are in holiday trading mode until Wednesday."
For complete article, click here, http://uk.reuters.com/article/usDollarRpt/idUKN3158286920071231
The dollar was on track for its biggest annual decline in four years against a basket of major currencies on expectations the Federal Reserve will have to lower interest rates further to stave off a recession.
The Fed already has cut its benchmark federal funds rate by a full percentage point in three moves, beginning at its September meeting, in an effort to ease a credit crunch which began in August.
It was the second straight year of declines for the dollar index.
"It's a funny market right now, and I can't point to any fundamental factor for what we are seeing," said Stephen Malyon, currency strategist at Scotia Capital in Toronto. "We are in holiday trading mode until Wednesday."
For complete article, click here, http://uk.reuters.com/article/usDollarRpt/idUKN3158286920071231
Dec 24-28, 2007 update
Dec 24-28, 2007
Open Trades = 9
Floating gain/(loss) = (64.2000%)
PMTFC2 share = 1.3017 unit value
Open Trades = 9
Floating gain/(loss) = (64.2000%)
PMTFC2 share = 1.3017 unit value
Saturday, December 22, 2007
Dec 17-21, 2007 update
Dec 17-21, 2007
Open Trades = 8
Floating gain/(loss) = (49.5904%)
PMTFC2 share = 1.2829 unit value
Open Trades = 8
Floating gain/(loss) = (49.5904%)
PMTFC2 share = 1.2829 unit value
Sunday, December 16, 2007
To temper peso, BSP may further ease forex rules
MANILA, Philippines--The central bank, Bangko Sentral ng Pilipinas (BSP), may be forced to further ease foreign exchange rules to address the sharp rise of the peso, according to a paper by investment bank DBS.
Exporters and families of overseas Filipino workers (OFWs) -- badly hit by the steep climb of the peso -- have been urging government for so long to temper the strengthening currency.
In its latest assessment of emerging and industrialized economies, DBS noted that the Philippine peso is the strongest Asian currency so far this year, marking a year-to-date appreciation of 19.3 percent. This was far stronger than the average 4-percent appreciation posted by nine other Asian currencies.
For the complete read of this article written by Michelle Remo, click here.
Exporters and families of overseas Filipino workers (OFWs) -- badly hit by the steep climb of the peso -- have been urging government for so long to temper the strengthening currency.
In its latest assessment of emerging and industrialized economies, DBS noted that the Philippine peso is the strongest Asian currency so far this year, marking a year-to-date appreciation of 19.3 percent. This was far stronger than the average 4-percent appreciation posted by nine other Asian currencies.
For the complete read of this article written by Michelle Remo, click here.
Saturday, December 15, 2007
Fed Expected to Cut Rates Again
Faced with a spreading mortgage crisis, the Federal Reserve is expected to cut interest rates for a third time later and hint that even more rate cuts could be forthcoming.
Fed Chairman Ben Bernanke has clearly signaled this outcome in a speech last month in which he said that the latest bout of financial market turbulence raised greater risks for the economy.
Most economists are expecting a quarter-point cut in the federal funds rate at Tuesday's meeting, which will be the Fed's last rate-setting discussion this year. That would push the federal funds rate down 4.25 percent and send bank's prime lending rate, the benchmark for millions of consumer and business loans, down to 7.25 percent, the lowest level in two years.
The Fed started cutting rates in September with a bolder-than-expected half-point move and then reduced the funds rate by a quarter-point at its Oct. 31 meeting. The central bank was trying to make sure that a severe slump in housing, spreading mortgage defaults and financial market turbulence which hit with force in August did not derail the economy.
In its October announcement, the Fed indicated that its two rate cuts might well be all that would be needed to make sure the country was not pushed into a recession.
But that view has undergone a dramatic about-face in the six weeks since that time, reflecting worsening conditions in financial markets and continued sharp declines in housing as lenders tighten standards in response to rising mortgage defaults.
Many analysts believe the current quarter and the early part of next year will represent the period of maximum danger for a possible recession.
"I think a full blown recession can be avoided but just barely," said David Jones, chief economist at DMJ Advisors. He predicted that the Fed will follow up its expected December rate cut with three more reductions at its first three meetings of 2008.
For all of 2008, a forecasting panel of the Securities Industry and Financial Market Markets Association said Monday it believed overall economic growth, as measured by the gross domestic product, would come in at an anemic 2.1 percent as housing construction and sales continue to fall for most of the year. That would be the weakest GDP growth in six years.
http://truenorth-forex.blogspot.com/
Fed Chairman Ben Bernanke has clearly signaled this outcome in a speech last month in which he said that the latest bout of financial market turbulence raised greater risks for the economy.
Most economists are expecting a quarter-point cut in the federal funds rate at Tuesday's meeting, which will be the Fed's last rate-setting discussion this year. That would push the federal funds rate down 4.25 percent and send bank's prime lending rate, the benchmark for millions of consumer and business loans, down to 7.25 percent, the lowest level in two years.
The Fed started cutting rates in September with a bolder-than-expected half-point move and then reduced the funds rate by a quarter-point at its Oct. 31 meeting. The central bank was trying to make sure that a severe slump in housing, spreading mortgage defaults and financial market turbulence which hit with force in August did not derail the economy.
In its October announcement, the Fed indicated that its two rate cuts might well be all that would be needed to make sure the country was not pushed into a recession.
But that view has undergone a dramatic about-face in the six weeks since that time, reflecting worsening conditions in financial markets and continued sharp declines in housing as lenders tighten standards in response to rising mortgage defaults.
Many analysts believe the current quarter and the early part of next year will represent the period of maximum danger for a possible recession.
"I think a full blown recession can be avoided but just barely," said David Jones, chief economist at DMJ Advisors. He predicted that the Fed will follow up its expected December rate cut with three more reductions at its first three meetings of 2008.
For all of 2008, a forecasting panel of the Securities Industry and Financial Market Markets Association said Monday it believed overall economic growth, as measured by the gross domestic product, would come in at an anemic 2.1 percent as housing construction and sales continue to fall for most of the year. That would be the weakest GDP growth in six years.
http://truenorth-forex.blogspot.com/
Dec 10 - 14, 2007
Dec 10 - 14, 2007
Open Trades = 8
Floating gain/(loss) = (38.6939%)
PMTFC2 share = 1.2829 unit value
.
Open Trades = 8
Floating gain/(loss) = (38.6939%)
PMTFC2 share = 1.2829 unit value
.
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