Stock Market / Investing
How You Can Make Yourself a Better Trader
Define Yourself: What Kind of Trader Are You?
The idea of being a successful trader is exciting. The reality of becoming one is another thing. You need to understand more than the markets — you need to understand yourself.
EWI’s Senior Analyst Jeffrey Kennedy knows what it takes. He has analyzed and traded the markets for over 15 years. Jeffrey has learned what it takes to be successful, and he has the discipline to apply that knowledge. Enjoy this excerpt from his free Club EWI eBook Best of Traders Classroom, in which he answers: What kind of trader am I? Read the rest of this entry »
Forex Trading Course Online
by Alex Cadens
Taking a Forex trading course online is an essential step in ensuring your trading operation will continue to grow and make you a bit wealthier everyday. As you might already know, forex trading is one of the most profitable investment options available to anyone looking for a decent return. Nowadays there are a few automated forex trading software packages which allow you to carry out your forex trading operation with almost no action on your part, in fact, I personally use two of these systems in my forex trading operation with very satisfactory results.
However, although these automated forex trading software packages are usually over 90% accurate, there will come a day when they place a losing trade -or a trade that looks like one- and this is where fear and panic will come to play a catastrophic role if you have no idea about what is going on before your eyes. Why? Well, because if you do not know how to read the market you will probably rush into close the trade for a loss, instead of waiting patiently for a correction. Taking a forex trading course online will give you the tools you need to make informed decisions when the situation calls for it.
The forex market is very unique, and unlike the stock market, it always has profitable opportunities no matter what the crisis in the world because the currencies are pairs so one is always improving compared to the other, always opening windows for profitable trades.
If you carry out your forex trading operation with automated forex trading software packages, taking a trading course online will certainly increase your profits, and if you trade or intend to trade manually, a forex trading course is simply a must.
Taking a forex trading course online is an essential step in ensuring your trading operation will continue to grow and make you a bit wealthier everyday.
About the Author
In my website there is a comprehensive evaluation of two forex softwares and one trading course which I personally consider the best around: http://www.specialonlinebusinessreviewauthority.com
On the Docket: The Case Against Diversification
Talk with an investment advisor, and what’s the first piece of advice you will hear? Diversify your portfolio. The case for diversification is repeated so often that it’s come to be thought of as an indisputable rule. Hardly anyone makes the case against diversifying your portfolio. But because we believe that too much liquidity has made all markets act similar to one another, we make that case. Heresy? Not at all. Just because investment banks and stock brokerages say you should diversify doesn’t make it true. After all, their analysts nearly always say that the markets look bullish and that people should buy more now. For a breath of fresh air on this subject, read what Bob Prechter thinks about diversification.
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Excerpt taken from Prechter’s Perspective, originally published 2002, re-published 2004
Question: In recent years, mainstream experts have made the ideas of “buy and hold” and diversification almost synonymous with investing. What about diversification? Now it is nearly universally held that risk is reduced through acquisition of a broad-based portfolio of any imaginable investment category. Where do you stand on this idea? Read the rest of this entry »
“Market Manipulation” Is Not Why Most Traders Lose
How often have you heard analysts refer to a down day on Wall Street as “traders taking profits”? Sounds great, but the sobering fact is that most traders — in futures, commodities, or forex — lose money. Yet some traders do win; some even set records. In 1984, Elliott Wave International’s president Robert Prechter won the U.S. Trading Championship, setting a new all-time profit record of 444.4% in a monitored real-money options account. Here is a link to the free report where he lays out his requirements for successful trading. Read more.
Efficient Market Hypothesis: R.I.P.
Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical “Parthenon” of economics, this notion has consistently endured the test of time —– until now. Academics and advisors across the globe are currently exposing crack after crack in the “Efficient” model so deep as to bring the entire theory crashing to the ground.
“The EMH is not only dead,” writes a July 29, 2010 news source. “It’s really, most sincerely dead.” (Minyanville)
As to what caused the theory’s collapse — one recent business journal offers this insight: Read the rest of this entry »
DJIA’s 200-Day Moving Average: Will the Dow stay above or below this demarcation line?
Moving averages are one of the most widely followed indicator in technical analysis. Simply put, when the price of an index or stock stays above a particular price moving average line on a chart, that price level serves as support — a level where buyers reside. If the price falls below a moving average line and “can’t” break through from the underside, this price level is a line of resistance — a price level where sellers hover. That’s an easy explanation of moving averages for you.
A commonly watched line is the 200-day moving average. Read the rest of this entry »