Technical Analysis Training

When traders embark on their technical analysis training voyage, they usually believe that the challenge will be to learn a lot of technical tools. And they usually seek out who they believe to be an "expert."

However the idea is to develop your own way of looking at the market, and to get comfortable with this vision, and with the patterns which you see, and to learn to identify them and to get comfortable with them so that you can repeat them over and over again.

The most important part of technical analysis training is really personal self-study and building personal awareness.

But whether you learn enough of another's vision or if you create your own from scratch, you can become comfortable with them to the exclusion of all others, and so you can follow your understanding wherever it leads, without listening to other voices and other inputs.

To become a really good trader you have to learn how to isolate yourself from outside influences. Remember that the world is reacting to energy terminations, and that the crowd of people will be at extremes when you are preparing to take action in the opposite direction. This means that you must be in a mental state such that you are able to do things that most people will not do, because they are afraid to act against the crowd, or they are unable to see the alternate course of action because they are asleep, and unaware of the reality of the market action that is unfolding. In our view the key to this optimal mental state is awareness + monitoring + -observing, and it is a specific and learnable talent.

Let us talk about the nature of probability, and its relationship to technical analysis training, and how to go about conducting research, and the need for such research, and the value it has for us as traders in terms of our financial outcomes.

The tools of technical analysis can be so accurate that it sometimes seems as if they are infallible. Some beginning traders start to think that every support will hold, and every trend termination is the time to jump in. Of course life is not that simple. If the market could be completely and accurately predicted in advance there would be no market, and computers could figure it all out. There would be no difference of opinion between buyers and sellers, and there would be no winners and losers and everyone would have the same amount of money. The market is infinitely complex and has the ability to do anything. It is pure in its simplicity, and the major difficulty is that our perception and interpretation is fallible.

Most people only rarely have sufficient awareness to note this simplicity, since our perceptions are usually clouded with various preconceptions and influences. But patterns do exist, and some of these patterns have a high potential for repeating themselves, since energy can and does repeat itself. The trick is learning how to tell when a pattern is holding, and how to tell when it is not holding. And furthermore, to learn how often a pattern will hold or break when viewed in a large sample size. The tools are accurate and effective -- but on a percentage basis. The odds are on our side, not the guarantee of success on any single trade.

The true key to technical analysis training is to do your personal research carefully so that you understand how the patterns that you see will act when considered n a large sample size.

Peter Markham I invites you to take advantage of his 30 years practical experience as a Forex and commodities trader. If you are searching for technical analysis training courses, Peter can help. He has written widely on the subject and has consulted with private funds and investment offices world-wide.

Click on the link for a free sample lesson of Peter's favorite technical analysis training course.

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Stop Hunting - Where to Place Stops

Know this fact that stop hunting takes place all times, all days and every day and there are some brokers who specialize in stop hunting for short term gains. It is amusing that some brokers preach the benefits of placing tight stops to their clients as a way to control risk, but in actual reality what they want is stop levels to shoot for.

Tight stops usually hurt as there is always noise in the markets what you call sudden random moves that easily wipe out 10 pips stops.

Now there are some ideal times for the brokers to do stop hunting, times like when the markets are thin and have high volatility and low liquidity. Rollover hours are also best for stop hunting when novice traders unsuspectingly place short term trades to take advantage of the roll over interests, only to see their trades blown out by the brokers and dealers.

Where To Place Stops?

The intra day forex market is full of noise and random moves. Price tends to jump 10-20 pips apparently for no reason at all and many traders find their stops been constantly tripped even though the market is moving in the direction that they had anticipated. Now this is what the professional traders do! They make their stop loss order invisible to their brokers by leaving them on their computers. However, this requires their trades to be constantly monitored until the preferred outcome is achieved.

Using a Trailing Stop Loss Order for short term trading is also of no use as once you place a trailing stop, you lose control of your trade and the trade may close at a random number that has nothing to do with the price action. Place the trailing stop too close and you are out too quick and place it too far and you will lose profits if the price action retraces itself quickly. With more experience you will learn that placing fixed stops often hurts more than help. What you need is dynamic stops using Moving Averages, Bollinger Bands or SARs. If you really want to risk shield your forex trades than watch these 4 FREE Forex Day Trading Risk Eraser videos by Bill Poulos.

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The Big Figure Trade

Your FCM or forex broker has to act as a counterparty for each trade that you make providing you with liquidity. Now this can become a problem for the FCM or the broker when the market is thin and illiquid. The FCM or the broker cannot immediately offset the position in the interbank market.

The Big Figure Trade is an example of how you can take advantage of your retail FCM or broker limitation in times of thin and illiquid markets. Now if you have been trading, you know this that the market is every now and then testing a certain level. This level maybe a well defined Fibonacci level, a trendline or maybe even a big figure.

During intraday sharp price moves, the market will reach a certain level where traders believe it cannot go higher. Now most of the price action in the currency markets is self fulfilling. Most trader by instinct try to initiate short positions around a big figure placing their stops very close to it making the erroneous assumption that the overbought market will not have the energy to push past that big number.

But you are not alone, your FCM or the broker is also watching the situation and if too many traders place their stop loss close to a big figure number, they will mount a stop hunting attack. Now, it is essential that you understand the psychology of the other traders as well as your FCM. Bill Poulos has released his Forex Income Engine 2.0. He says that with his course you can reach a 4-5 figure part time monthly income. He is offering 60 days RISK FREE trial as well as payment in three installments. Bill is a highly respected trader, educator and a mentor. What he can teach, no one else can. He is also providing you with 8 weeks of FREE personal coaching on how to trade forex. His Forex Income Engine 2.0 teaches three ways to trade forex.

You need to watch the 4 FREE Flexible Forex Day Trading Videos that show Bill trading forex while taking his breakfast and lunch. Yeah, it can be that easy to triple your profits if you know the right tricks. Don't miss these 4 free forex training videos.

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The Golden Rules to Make You a Success in the Stock Market

I assume that when you click in this article, you are having the desire to make money in stock market. From my personal experience, I suggest that the most lucrative way to earn in stock market online is through stock day trading. However, to be honest with you, to be rich overnight through stock day trading is impossible, and unwise to think that. As a novice, you have to learn from ground up and eventually will gain your financial freedom. The following guidelines are the golden rules for you who wish to trade in stock market.

As you know, positive long term stock investment is able to generate profits with the range up to 10 percent per annum if you persist on a particular healthy stock pick. While stock day trading is able to generate a sound profit by a trading day time or even shorter. Hence, if you are able to master the professional skill of day trading, it will be much more effective in earning than long term investment.

Due to the variety of business registered nowadays, stock market provides numerous choices and opportunities. This trend provides better opportunities for day traders to "refine" and "extract" the most profitable stock picks. There are wide spread of stocks which become "hot stock" every week comply with the rapid changing business weather, such as biotech, green energy, online media, mass communication and healthcare sectors.

The most crucial factors I would like to advocate here are the liquidity and volatility of the stock when you doing day trading. In laymen term, high liquidity means high trading frequency while high volatility equals to high trading price range. Neglect those stock picks with minimum price movement and not catching eye ball of traders.

The other mindset should be embraced is to be persistent in implementing your trading discipline. Choose a sound and good strategy, apply the most important content and stick to the basic for good. I will suggest that you may be flexible to deal with unexpected circumstances, however, do not emotionally or simply alter your strategy, this will cause the disastrous outcome.

Last but not least, even though with the help of advance technology stock trading system or well planned strategy, one must understand that trading in the volatile and highly fluctuating stock market involves certain level of risk. You may minimize it but you are not able to completely get rid of risk taking. My personal advise is that do not involves your personal emergency reserve with day trading. Trade with your extra money and this will also allow you to make bold but accurate decision at critical timing.

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The most lucrative and attractive way of earning cash in a short period of time is day trading. Not many people aware that there are some individuals claim it as their full time and professional occupation. Nowadays, many people dreaming of joining the task force to share the benefit of earning fast in the stock market

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A Put Option Payoff in the Future? Down is the New Up in Options Day Trading

Getting access to a lucrative put option payoff will be difficult for traders not fortunate enough to have a full access margin trading account. The rest of the traders in the stock market who do have the ability to act on put options may have some significant opportunities ahead given the continuing shocks to the economy. Most of the market has had a significant run up since the lows of March however clearly the results have yet to reach main street. This portends a likely shift of funds out of stocks once the current rally loses steam and investors seek to lock in gains before the levy breaks, sending stock prices downward.

A Put Option Payoff on Market Indices Could Be on the Horizon

The late year rally in the Dow Jones and S&P 500 have been welcome news to investors with retirement accounts and 401Ks invested in those indices. Wise investors are taking advantage of the gains and present market liquidity by re-balancing money out of those stock funds and into safe havens such as money market funds, treasuries, and high return CDs. A put option payoff on trading positions held in these indices seems likely given the economic storm still roiling at home and two wars continuing overseas.

Economic Storm Clouds Still Brewing - Reform Initiatives Stalled While Expensive Wars Continue

President Obama has been caught between a rock and a hard place in trying to make headway on domestic fronts while trying to manage two problematic war efforts. His health care initiative - designed to save money on treatments while expanding overall coverage is moving like molasses through the halls of Congress. Meanwhile 30,000 more troops are engaging in the Afghan war effort - costly in terms of both managerial and monetary resources. This leaves less money and managerial bandwidth for much needed reform efforts and stimulus spending.

Put Options Traders See Opportunity

Given the challenges facing the economy at home and abroad the market seems destined for periodic pull-backs off recent highs. Those with access to the short side of stocks (via short selling of stocks or buying puts) will have the best opportunity to take advantage of the downswings.

Those not able to access put options directly might consider using a retail binary options broker as a low cost, fast paced, high return way of participating in the stock market. This is particularly true in regard to using puts on major indices like the Dow Jones, Nasdaq, and S&P 500.

To learn more about put option trading generally, see our example of a put option payoff scenario.

Steve Wise

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The Department of Labor, the Federal Reserve, the University of Michigan and various other entities issue important economic reports regularly that

Day Traders who are looking to maximize their opportunities on the ASX top 20 need to consider a couple of key points before jumping on board with any CFD broker. As a day trader you need to consider your main objectives and work out how your goals can be met and which broker can best satisfy those goals.

Day Trading for Small gains on large positions

One trading style that day traders apply is to look at the ASX top 20 stocks and trade on a good deal of leverage and look for small gains on the stock price either long or short. If this is your trading style then you are going to have to rely on a CFD broker that doesn't requote regularly as you'll struggle to get out when the heat is on.

Frustration with CFD brokers giving requites

There is nothing more frustrating than trying to get out of a large position relative to the current market depth and finding your CFD broker offering you the infamous requite. You try to get out at $22.50 and they tell you its not available but $22.45 is. How very frustrating.

But the true volume on the ASX says there is enough volume

Even more frustrating is when you run your CFD broker's platform side by side with a proper Webiress streaming data feed and realize that you only want to sell 6,000 CFDs at $22.50 and there are 15,000 available. You keep trying to hit the 15,000 only to get requite after requite. Your blood boils at this stage and you realize that getting out at $22.50 is now not an option. You either have to wait and be patient in the hope that enough depth with your CFD broker will get you out or take the lower price, some $300 away. $300 in slippage is a cost you'd rather not have to consider.

Overcoming the requotes as a day trader

Market Maker CFD brokers may not be your best option if you are looking for speed of transaction in a transparent fashion. To overcome the requotes you will need to consider trading with a Direct Market Access CFD broker who is 100% transparent in the market. WYSIWYG or what you see is what you get is one way to describe a Direct Market Access (DMA) broker as you can see 100% of your orders right into the market and you can also see the exact number of people at each level of market depth. This isn't to say that a Market Maker model won't serve you well, but instead to point out that you'll never get a frustrating requite with a Direct Market Access CFD broker.

Action: Discover the Universal Trading Strategy that can be used across all market conditions and all market time frames. This one Universal Truth has the ability to Free your Mind as it sets the foundation of all Successful Trading Plans.

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News Trading - Know When Important Economic Reports Are Issued Before You Start Your Day Trading

The Department of Labor, the Federal Reserve, the University of Michigan and various other entities issue important economic reports regularly that impact the markets! As a day trader, before you start your trading day you must know what reports are scheduled for that day. You should always be aware of the news events that lie ahead. You can get this information free by googling the keyword, " Economic Calender."

Financial newspapers and magazines like the Barrons also detail this information. Barrons, a financial newspaper that is published weekly does a very good job of detailing the financial reports of the past week as well as for the upcoming week with the forecast how the market will respond when the anticipated news comes out. So you must always know what economic reports are being scheduled so that you are not taken unaware.

It is always wise that you stay away from the market and don't trade when some of these important economic reports like the NFP Report or the FOMC Release that are considered to be important market movers and shakers are issued so that you are not caught on the wrong side of the market.

Often when these important economic reports are released their will be a quick and strong reaction by the market. You cannot predict in which direction the market will move! The first five minutes after the economic report release are very important so don't trade in the first five minutes. However, some traders have made news trading their forte! News trading is highly risky but if you know how to do it, it can be highly profitable!

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Day Trading Hot Tip - What is the Best Computer Setup When Day Trading the World's Markets?

Day traders live and die with clean and accurate data that is delivered in the fastest possible fashion. Without access to fast streaming data, day traders are doing to be left behind missing crucial points left, right and centre. Today we'll take a look at the best computer set up for Day traders trading any market around the world.

Day Traders need to invest in the right Monitors

With talk about flexible hours, no boss and the ability take time off whenever you want, day trading seems to stack up as the ultimate way to multiply your money. Unfortunately nothing could be further from the truth and many day traders will tell you they spend upwards of 10-14 hour days in front of the PC. For this very reason it is critical that you have crystal clear monitors with plenty of size to them, given the fact that you'll be staring at these things for a long, long time. Anything on or above 24 inches should be fine. Further to this you'll need to consider at a minimum a dual monitor set up or perhaps 4 or even more. I've heard of some day traders who have up to 10 monitors spread over 3-4 computers. Incredible.

Day Traders require speed of information

Next on the radar for your computer set up when day trading is the speed with which you get your information and the speed at which your trading programs run. Here we're talking about your internet connection speed, Amount of RAM and your computer's main processor.

Internet connection

It goes without saying that a day trader requires access to information and they want it fast. Trading decisions are made quickly and so a fast internet connection (cable, ADSL2+ or a T1) is essential. Never mind paying a bit more for the faster speed as it all counts.

Enough processing power and to set the world on fire

Intel have some pretty incredible chips and their Core 2 Duo chipsets are some of the fastest available on the market and incredible well priced. You could move up to the quad core processor but its truly not going to help you on the day trading front. Quad Core processors are best suited for high intensity activities like Photoshop or video rendering so don't go overboard here getting a quad core just because you reckon that 4 cores is better than 2.

Ample RAM is important for a Day Trader running multiple applications

Having enough RAM is a key component as well and you need to keep on top of what's the ideal amount at the time of purchase. Make sure you get a motherboard that allows you to upgrade as time passes. RAM allows your PC to process multiple functions at once and do the important grunt work. If you do a lot of backtesting using programs like Tradesim, Metastock, AMI Broker or Wealth-Lab, then grab lots of RAM.

Action: Discover the Universal Trading Strategy that can be used across all market conditions and all market time frames. This one Universal Truth has the ability to Free your Mind as it sets the foundation of all Successful Trading Plans.

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Four Steps to Avoid Buying High and Selling Low

Trading success has been said to depend more on your personal psychology of trading with respect how you lose than on what you make. That sounds pretty negative, but it is the advice given over and over by skilled, successful investors and traders. So what up?

Sure, you've heard the advice to cut your losses and let your gains run. Everyone has. Yet, who hasn't gotten that one just backward?

Buying at the top and selling at the bottom has to be the favorite way to lose money for most people. It is every investor's psychological challenge.

It's how the markets fulfill their apparent mission of making the most people wrong the most times.

Holding out hope that an investment or trading position will turn itself around and you won't have to take a loss is more common for most of us than cutting the loss early. Same with taking our money off the table when we start to get gains. (No one ever went broke taking a profit, right? Wrong!) Put the two together and you've got the pair of evil bookends that keep most of us from making significant money consistently.

If everyone really knows this, why do so many people fall into the trap?

Psychology 101 would have us think that since behavior that is rewarded tends to be repeated and behavior that is not rewarded or is punished tends to be avoided. If that's true, and I believe that it is, it doesn't seem to make sense that people buy at the top and get out at the bottom over and over and over.

The answer has got to be that we are repeating behaviors that are rewarding and avoiding ones that aren't. It's just that we are looking in the wrong places for the rewards and punishments. And, as best I can tell, the central issues center on how you cope with uncertainty and with timing.

The right side of any chart, be it in stocks, options, bonds, or commodities, is empty. It is painfully empty. Neither you nor I knows what's going to happen in the future and that gnaws at us. It is uncomfortable. It doesn't feel good.

Back to Psych 101, this is a situation ripe for a negative reinforcer to come along and offer us a way out. Negative reinforcement is not punishment. Rather it occurs when we are in an unpleasant situation and we have the option of doing something that makes it stop. If every time you walk out your front door a dripping gutter dumps water down your neck and you avoid it by going out the back door, you are more likely to go out the back door. Not getting water down your neck when you go out the back door is the negative reinforcement.

So there you are, not sure where the price of a stock is going next, not in because you aren't sure, unhappy because others are in and making money. Your basic psychological systems are screaming "get me out of this discomfort" and the most immediate way out is to buy something. Problem solved! (And once you're in, the whole thing works in the reverse.)

Problem solved in the short term that is. The existential angst if you will is right here, right now. The potential gain from sticking to our plan, the profit, is out there somewhere in the future.

From the longer term perspective by the time not being in the market got uncomfortable enough that you felt like you had to do something it was very likely too late and you got in near the top. The smart money was already taking money off the table. Then the roller coaster starts to reverse the process and it all happens over again in the mirror image. Hello red ink for us, the weak hands as the pros call us!

So, what to do?

The broad outline is pretty simple:

* Develop a trading/investing plan that takes a longer term view and limits losses while letting gains run.
* Expect your gut to try to get you to deviate from your plan.
* Have a set routine you go through when you feel yourself wavering from the plan.
* Focus your evaluations of how you are doing on how well you traded/invested according to your plan, not on the particular outcome.

Simple to say, hard to do, but it's what you have to do to elude the two-headed monster that causes us to buy high and sell low. Pogo hit it dead on when he said that "We have met the enemy and they are us."

John W. Clark is an individual investor with an interest in finding and exploiting the personal edges that come with each investor and trader's situation. He writes the StockSpinoffBlog that focuses on value investing through stock spinoff situations

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Developing Stock Market Trading Systems

There are as many stock market trading systems in the world as there are traders, or at least it often seems like there is. This is primarily due to the fact that each investor has their own needs, goals and objectives which their personal approach must support.

Consider that stock market trading systems can be designed around creating current cash flow or simply accumulating capital over the long term. They might also involve hedging against loss or risking a great deal for a big return. There are all kinds of goals, and the many different and individualized stock market trading systems exist because of this simple fact.

If you are interested in beginning the process of developing a system for your stock market investments you must first understand your capabilities, the amount of risk you are comfortable in taking, and the various approaches that you have open to you.

For example, you may already be the happy owner of many long-term holdings, but you might be looking for some additional sources of revenue. You could contact a day trader who can provide profit through a large number of small daily gains (if you are comfortable with the risks involved), you could meet with a value investor who can help you develop a plan to capitalize on many long-term financial trends, or you could begin doing a few small investments on your own to explore the various opportunities.

All of these approaches could be used as exclusive systems, or they could be combined to create a diverse approach to economic growth. The thing to remember is that you must identify your goals, understand the rate of return necessary, and invest only the capital that you can afford to put in jeopardy. There are no risk-fee systems, there are simply plans that can reduce and hedge risk to minimal levels.

For example, among all of the various trading systems there is one that almost anyone can quickly understand and enter into without assuming too much risk. This is something known as "options trading", and it can involve the purchase and sale of stocks, but is geared more towards the creation of special contracts that can reward the investor based strictly on a stock's performance. Many savvy investors use options trading as a sort of insurance against loss, but also to yield reliable returns on the current market conditions, regardless of whether they are "bearish" or "bullish". This is often considered a system in its own right, but it can also be incorporated into an overall plan as well.

Options Trading International offers the premier option trading system available online today. Whether you're looking to change careers or just want to learn options trading, come to Options Trading International for the best options trading system and education available.

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Getting an Option Trading Education

There is an old adage that the best way to learn is "by doing", but this is not necessarily a universal truth. Consider those who jump into the financial markets without any underlying knowledge or experience. More often than not they see their small nest eggs disappear almost instantly and their hopes dashed. With something as simple as an option trading education, however, these same people could have started small and slowly learned how to craft a successful portfolio that had a ton of risk management built into it.

In the modern world there are many different ways that people can enjoy the learning process. There are colleges offering degree programs entirely through the online experience, there are seminars sponsored by a huge number of organizations and institutions, and there are also self-guided study programs available on the Internet or through the purchase of software packages.

For someone hoping to get an option trading education the choices are quite diverse. The Chicago Board Option Exchange makes all kinds of educational and informational materials available through their website, but so too do many other groups and organizations as well, including colleges, financial companies, and even some brokerages.

What would something like an option trading education actually involve? There are many varieties, terms, models, strategies and theories around options trading, and it behooves anyone who intends to seriously enter into the markets to know as much as possible.

While some people think that they can accurately gauge which direction an index, commodity, or particular stock might be heading, to make a savvy option investment requires a great deal more than just a valid opinion. For one thing, a good investor needs to know all about the "moneyness" of their decision. They must also consider the time until the investment expires, and any possibility for unexpected volatility.

All of this translates to a need for education, and someone who hopes to financially flourish in this particular area is going to have to really understand where to find accurate data and information about those underlying assets for which they intend to purchase options. They must also know the right strategies for any point in time. Consider that a level market that is viewed as somewhat neutral can still yield returns if the investor understands the various approaches available to them.

A good and thorough education is going to look at the buying and selling of options, the various strategies, the vast range of terminology required, and the most modern approaches to actually beginning to participate in trading.

Options Trading International offers the premier option trading system available online today. Whether you're looking to change careers or just want to learn options trading, come to Options Trading International for the best options trading system and education available.

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