Tuesday, June 26, 2007

Gann - His Trading Method's Made Millions Learn Them For a Profit Edge

By: Sacha Tarkovsky

W D Gann is one of the most famous traders of all time and his unique methods helped him make a fortune of around $50.00 million and best of all he wrote and recorded the way he did it, so anyone can have access to his trading strategy and aplly it for profit.

Trading is one of the ways that small traders can start with small stakes and build real wealth quickly.

The good news is everything about trading can be specifically learned and Gann outlined all his methods in writing for traders to profit from and enjoy today.

His methods are applicable to any financial market from forex to stocks to bonds so you can choose where to apply them, depending on the risk you wish to take.

Let's look at why you should study Gann and his methods of making money.

1. He Had a Track Record

Many e-book sellers or traders sell information but it's worthless they don't trade it themselves and simply make up a track record.

Gann made money and his track record and invited newspapers and journalists to track his trades such was his confidence in how to make money.

2. Gann and the Law of the Market Movement

Gann pointed out quite rightly, that market prices depended on humans and that their psychology was constant - Because human nature was constant this nature would show up in repetitive price patterns that could be traded for profit

Gann was a technical trader and like all charts believed that what happened in the past would happen again and the key to making profits was to look for recurring price patterns to put the odds in his favor

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Sunday, June 24, 2007

Statistics Can Be Our Friend

By: Ricky Schmidt

Dear Fellow-Investor.

Every day the media is full of all kind of statistics and whether they are useful or not is up to each individual. When used properly, statistics can help investors make more informed decisions.

The reasons why statistics are important are as follows:

Economic statistics keep track of the economy. They explain whether the economy is in an expansion, a recession, a sideways or cyclical motion.

By monitoring the status of the economy, statistics provide governments with information on what sort of policies can be used to fix whatever problems the economy may be having.However, as we all know, there s no guarantee that the state will sctually fix any problem.

Statistics provide investors with information that can be useful to make market related investment decisions, i.e. when to buy or sell shares or other securities.

Some of the most commonly reported statistics are:

Stock Market Indices:

World-wide investors look at the Dow Jones Industrial Average as an indicator of stock market trends since this index is considered the largest and most important one. No wonder! About 60% of all financial activities in the world either take place in the United States or go via the USA.

The Dow is an index of the stock prices of the 30 largest US corporations based on their market capitalization and other factors that got them a place in the Dow. There are also Dow indices for transportation and utility companies.

On the surface, the above indices tell us whether stock prices are rising, falling or remaining unchanged.

Beneath the surface, they suggest what is happening to business profitability and the overall health of the economy. Other not less important stock market indices include the German Dax, the UK FT-100, Japans Nikkei, Hong Kong s Hang Seng and the French Cac-40.

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Friday, June 22, 2007

Introduction To Day Trading

By: Ian Jackson

History of online day trading

The birth of day trading was made possible when the computerized, over-the-counter NASD became available in 1971. Day trading was pretty much the domain of stock brokers and remained that way until the late 1990s, when the increasing popularity of the internet, motivated the international stock markets to move online.

The consequence of this move was that day trading brokers became optional because anybody with Web access could execute their own trades, provided that they had an account with a registered online brokerage. The uptake was enormous, because by 1999, at least 25% of all trades made were done as online trading by individual investors. Day trading online grew in popularity as these investors started gaining online trading maturity. This growth found further impetus with the Dot Com Bubble as many traders could buy and sell the same share on the same day with three digit returns.

What is day trading?

The U.S. Senate Permanent Subcommittee on Investigations defines day trading as "Placing multiple buy and sell orders for securities and holding positions for a very short period of time, usually minutes or a few hours, but rarely longer than a day. Day traders seek profits in small increments from momentary fluctuations in stock prices after paying commissions."

With day trading it is common to focus on short-term trading, where a trade could last for anything between a couple of seconds to a couple of hours. In day trading online, the number of trades made may vary from between just a few to a couple of hundred per day. It is also common to finish the day with a closed overnight position. This means that everything you bought gets sold, before market close.

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Thursday, June 21, 2007

Swing Trading Weinstein's Theory of Relativity to Profits

By: Larry Swing

When Stan Weinstein was first featured in the famous book, "Market Wizards: Interviews with Top Traders", by Jack Schwager, he stood out as a trader with the highest win/loss ratio. He finally revealed his method in his only book, "Secrets For Profiting in Bull and Bear Markets," for the long-term investors. This informative book covers many aspects of trading, including rules of do's and don'ts as well as a single methodology in finding the right stocks with setups to enter and exit.

This book is mainly for investor and speculator (or trader as he termed it). Investor is a person who holds a position at least 3 months while a speculator trades 2-3 times a month. This is basically not for day traders but is at least the swing and positions traders.

His method requires a few simple indicators and tools to make the method work, including: 1. 30-week moving average indicator 2. Relative strength ranking indicator 3. Volume indicator 4. Trendline drawing tool

Here are the rules he laid in finding the right stocks:

1. Identify what stage the market is in. What stage it is the market in? In the chart below, Weinstein categorizes the stages of the market, uptrend, consolidation, and downtrend, consolidation and repeat again. Stage 1 and 3 is consolidation phases while stage 2 and 4 are trending phases.

2. Search the sector with strength. Compare the sector to the overall indexes such as Dow Jones Industrial Average or the S&P 500. See image below.

The first task is the search the best sector that is outperforming the indexes (for long while underperforming the indexes for shorts). Comparing this using the charts and compare to find where the strength lies. If the index is weak or getting weaker (by either moving sideways or downwards) while the sector is getting stronger (trending upwards). The image above shows the divergence in strength between sector and index.

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Sunday, June 17, 2007

The Internet Makes Stock Trading Easier

By: Mark Crisp

The stock market can be extremely intimidating and it's complexity scares off many people from even getting into the stock market. Do not be intimidated and let your fears prevent you from participating in the stock market and getting your share of the pie.

Today, thanks to the internet, it is so much easier to learn about the stock market, get into the stock market, and profit from the stock market. On that point is a lot of data, guides, and software available 24 hours a day, 7 days a week. You do not accept to be a financial wiz or accept special qualifications to get a stock market trader. Actually all you need to do is educate yourself. Find a actually good guide and learn all you can. On that point are great tools out on that point to take advantage of.

The stock market has been around for a long time. In the late 1700's, what is known as the New York Stock Exchange (NYSE) was created which today facilitates billions of dollars worth of trades each business day. How many years accept passed where people had no internet to read e-books and articles and use software to help them out? Fortunately, today you accept access to great tools and resources that the old time stock traders could not accept even imagined.

You can get your hands on educational e-books written by experts, lots of articles, and use special software that takes the difficulty and complexity out of trading stocks and instead attains it easy. As long as you accept an email address, you can get updated stock tips, hot stock picks, and more stock data in a stock trading newsletter. These tools would be to die for 50 years ago.

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Friday, June 15, 2007

How To Succeed In Online Financial Trading Using Freebies

By: Hywel Merrett

Did you know that many of the tools and resources that we consider essential for online trading success are actually available for free - if you know where to look?

Online trading is taking the financial markets by storm as private investors are now able to quickly, easily and cheaply trade Forex, Commodities, Stocks and many other instruments. But what s brought about this enormous increase in online trading?

Basically, the tools and information which were previously only available to the big boys like stockbrokers, banks and institutional investors - are now available to you. These days, we don't have to rely on our broker for recommendations. With only a computer and internet connection, we can now find our own trades independently and without fear of bias.

People just like you and I can now trade with a level of sophistication that was unheard of, even in the 90 s! This has effectively levelled the playing field and allowed home based traders to make highly informed investment decisions on their own.

Data feeds, software based trading systems, real-time quotes and interactive charts are all now available online at reasonable cost and yet, not so long ago, many of these resources cost thousands and thousands of Dollars. The point I m making however, is that with a little investigation it s now possible to find many of these invaluable tools absolutely free.

Andrew Fleming, author of Free Online Trading Tools has made it a personal quest to discover what s available out there just for the taking (legally, of course). He was amazed. Some sites he discovered will come of no surprise to you Yahoo Finance, Bloomberg and Reuters etc. are the obvious ones and are all very comprehensive sources. But he also uncovered a wealth of sites that are a little more off the beaten track , but also incredibly useful to online traders.

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Thursday, June 14, 2007

Clear Your Mind And Increase Your Profits

By: Stephen Cauldry

Everyday life has a way of revealing a better understanding of your most puzzling problems. Early on in my stock trading career, I struggled with producing consistent profits. So much that, I decided to get away for a while and put my mind at ease. I went to New York City. I needed a break from the mental frustration of experiencing so many losses. All of this will make more sense soon enough, so just bear with me.

New York is incredible. There are people everywhere you look. I grew up in an urban area but it was nothing quite like this. All five of your senses immediately come alive. As I walked, more like zigzagged, down the street I could here the faint sounds of music playing in the distance. I absolutely love music, especially live shows performances. I was curious so I followed my ear. The closer I got to the source of the music, the more I noticed how many other people were moving in the same direction. It was if we were all being funneled down the sidewalk. A smaller number of people were headed in the opposite direction.

The sound and clarity of the music increased with every step I took, as was the size of the crowd moving with me. Eventually, I arrived at the source of the melodic commotion. A live band was performing and hundreds had gathered to watch the show. I couldn't see a thing! I remember saying, I should have gotten here earlier. The light bulb in my head shattered into a thousand pieces! Stock trading manna had fallen from the sky. It all made perfect sense now.

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