Forex Trading Tips

Although i can never be seperated from my quotetracker charts and systems, in forex one is often faced with the Metatrader 4 (MT-4) charting and order entry platform, which is decent and usable, although far from "geeky" enough for me.

BUT a trick i use with the LRC is one i thought good enough to pass on ---------

can be used on any time period chart, but i find it great on the D1 charts (what we call the 3 (or longer) month/daily charts !

once you have one open, draw an lrc from the LOWEST PRIOR POINT on the chart and then draw another from the HIGHEST PRIOR POINT on the chart (if the highest prior point is just a day or two before the present candle, use a high candle from further back )----- WHERE THE TWO LRC's MEET NEAR YOUR PRESENT CANDLE IS THE POINT TO WATCH FOR A BREAKOUT OR BREAKDOWN. (its either gonna go thru and therefore up or down, depending on its direction or its gonna reverse at that point !)

NOW, look at your stochastics, cci and adx and you will be able to tell pretty well what is about to happen !

IF THE SYMBOL BREAKS THRU this resistance point, the LRC lines that have broken thru and are heading up, away from the old LRC, BECOME YOUR NEW TREND LINES, and each day you should draw another LRC from the LOWEST point on your chart to establish new "breakout points" Essentially, by using this modified TREND TRADING system, you can do away with fibs, gann and all the latest and greatest, cause all the points you need to watch are right in front of you !

once you watch a few of these, youll get pretty danged good at entering a currency reversal --- just watch them for a little so that you can estimate well !

enjoy and trade well

Article Written by MP of S Hot Penny Stocks

Rob is the owner of Hot Penny Stocks, and stock message board

Day Trading Penny Stocks

Daytrading or Swingtrading: Especially online, people will throw around the terms daytrading, swingtrading, and flipping a stock. In essence, they are all similar and overlapping styles of trading. Daytrading is when you buy an sell a stock within the same day once, twice, or many times (intra-day trading). Swingtrading is usually looking for a movement within the month of purchase. Flipping a stock is a style of trading built by targets set by looking at past performance. Flipping a stock is done by buying any given stock at its bottom support levels and selling at its resistance. All of these methods are short-term trading styles. They are influenced by what is going on right now; not what/where this company is going in the future. These indicators of market movement ATM (at the moment) include Technical Analysis, Press Releases, Stock Momentum (public sentiment) and general trends in different sectors.

Trading on Margin: Many investors are timid when opening a margin account. However, opening a margin account is the only way to avoid the "3-day" rule. When you open a margin account, you no longer have to wait 3 days for you funds to settle after a stock purchase/sale. Most online brokers require a $2,000 balance to open a margin account. If you are able to open one then you have the ability to purchase more stock than a normal cash account would actually allow. With $2000 in cash, you would have the ability to purchase $4,000 in stock. However, use caution, because if your purchase goes into the red, you loss also doubles

Shorting a Stock: Shorting a stock is another perk of opening a margin account. When you short a stock, you are actually selling something that you do not have. Usually this is done with the intention that a stock will decrease in price (for a various number of reasons). When it decreases in price enough to make you a profit, then you purchase that stock back (called covering your short position). Basically it is trading, only backwards. This ability gives you a method of making money by catching stocks in a downward (bearish) movement as opposed to looking for stocks on the rise (bullish stocks).

FYI...You cannot short OTCBB, Pinksheet, or any other stocks under $5.00.

Risk Tolerance: If you were to hire a "big-shot" broker or financial analyst than they would discuss your risk tolerance, and probably do it very extensively. I will address it shortly however, becasue I believe it is an essential question you must answer before you begin trading, however the answer is very simple.

First, figure out how much you can start to trade with. $500 will open you an account to help you learn, but will not offer much return. Others may recommend different amounts, but I believe that $1500 - $2500 is a decent amount to begin with if possible. This way, you can play approximately 3 stocks at once and erase a red play with two green ones.

Second, never invest (especially in pennies) what you cant afford to lose. When you begin, it is a learning experience. Don't think of getting rich quick. The more you know, the safer your money will be. Protecting you initial capital comes first. It is better to not take a loss than to not take a gain. Pennies are not your kid's college fund. Trusts and Mutual Funds handle that type of low risk, slow growth.

Finally, when it comes to risk (sorry for the cliche) Knowledge is Power. The more you know, the safer your money is. Play safe, play smart. Make the smart trade.

$$$ Practice, Predict, Profit $$$

Opening an Account: The next step is opening an account. By addressing all of the above issues, it will make your decision about a broker much easier. Knowing how often you plan to trade, what your average trade size will be, and various other aspects of your trading style/interests will determine the broker which best suits you. The next post will layout the key points/attributes, pros/cons, and customer service experiences with the most popular, affordable, and reliable online brokers.

Article Written by Rob of S HREF="http://www.stockhideout.com" REL="follow">Hot Penny Stocks

Rob is the owner of HREF="http://www.stockhideout.com" REL="follow">Penny Stocks, and stock message board

Rules of Penny Stock Trading

For all you penny stock traders out there or anyone interested in learning some basics rules to trading. I have put together some rules that I follow when penny stock trading.

1. Never, ever, ever add to a losing position: To do so will eventually and absolutely lead to ruin. Remember Long Term Capital Management and its legion of Nobel laureates who broke this rule repeatedly and went into forced liquidation. Learn this lesson... well and early!

2. Capital comes in two varieties: Mental capital, and that which is in your account: Of the two, mental capital is the more important. Holding losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital.

3. The objective is not to buy low and sell high, but to buy high and to sell higher: We can never know what price is "low." Nor can we know what price is "high." Always remember that Nortel fell from $85/share to $2 and seemed "cheap" all times along the way.

4. "Markets can remain illogical longer than you or I can remain solvent," is a brilliant statement from our good friend, Dr. A. Gary Shilling. Illogic often reigns and markets are inefficient despite what the academics try to tell us.

5. Sell that which shows the greatest weakness, and buy that which shows the greatest strength: Metaphorically, when bearish, throw rocks into the wettest paper sack, for they break most readily. In bull markets, ride the strongest winds.

6. Think like a fundamentalist; trade like a technician: It is imperative that we understand the fundamentals driving a trade, and that we understand the market's technicals also. When we do, then, and only then, should we trade.

7. Understanding psychology is usually more important than understanding economics: Markets are driven by human beings making human errors... and also making super-human insights.

8. Be patient with winning trades; be enormously impatient with losing trades: Remember, it is quite possible to make large sums trading/investing if we are "right" only 30% of the time, as long as our losses are small and our profits are large.

9. The Hard Trade is the Right Trade: If it is easy to sell, don't; and if it is easy to buy, don't. Do the trade that is hard to do and that which the crowd finds objectionable. Peter Steidelmeyer taught us this 25 years ago and it holds truer now than then.

10. There is never one cockroach: Bad news begets bad news, which begets even worse news

Rob is the owner of Penny Stock Picks, and stock message board

Good Penny Stock Traders

Good traders tend to be open minded. A goal of a good trader is not to make a huge profit ( as that is the goal of amateurs) but to trade well and consistently. Good traders honor their rules and laws of trading, once they do this the money begins to accumulate and a profit will begin. Trying to reach their personal best is better than making money because it stays with them for a long term, while not being consistent vanishes the next day. Traders need to be so focused on trading with rules and laws that winning does not boast your confidence (although it is ok to boast a little) and losing does not make you any less of a better trader. You need to be so focused on trading right that money no longer influences your emotions.

The trouble with the market is that there are many opportunities for trader-suicide. Many traders often involve themselves on a descending streak. A person who drives recklessly usually does not wake up one day and drive according to the laws and destructive traders who do not follow rules usually do not change their views, which in the long-term destroys their account. Traders who have a personal grief about themselves usually try to fulfill their grief into happiness by taking it out on the markets. Usually traders like this do not know the outcome of their investment and end up with a negative in their account.

A successful traders studies the market realistically. He/she knows his abilities to trade and his limits of taking a loss. He/she studies the market and knows how to react to sudden changes. He/she does not cut corners, studies his observations, and makes realistic goals. A trader who is smart cannot afford out of reach numbers. After an amateur loses many times and gets a few margin errors, he starts to look at the market fearfully. Instead of being cocky he resorts to ideas which fall out of place in the market leading him to miss buy point and sell points. These traders act immaturely such as a child is afraid to look in the closet because there could be a ghost. The fantasies we create usually influence our behavior, even if we are not aware of this. Many amateurs create their own fantasies of an easy way to get rich, because of this they fail in trading. A successful trader must get rid of his fantasies and focus on reality.

Article was written by Pennyman of Penny Stock Picks

member of Hot Penny Stocks

The Timing Myth

Dear Fellow-Investor.

Many investors continuously attempt to play a trick on the markets by trying to buy or sell securities just at the right time. But most of the time they achive the contrary.

Now why is this?

The temptation is huge because nowadays it's just at the click of a button and you can buy or sell securities within seconds via the Internet.

Especially a lot of beginners tend to think: why not take advantage of the up and down swings of the markets? Sell now while the markets are up and wait for a consolidation to get in low again!

Now you can do this if you're a short-term trader. But it's not advisable being a long-term investor!

For some beginners, the hunt for the right entry and exit points has already become a time-consuming hobby. They watch the markets meticulously at their computers day in and day out and are ready to click away at their mouse in order to get in or to get out quickly at the right time.

Easier said then done!

It's understandable that investors try to avoid bad market times – all the more after experiencing the tumble at the turn of the century. According to a survey by the mutual fund company Fidelity, in the long run profits of a portfolio increased substancially for whom it was possible to avoid the bad market days.

If in the last 15 years you were fully invested in Dow Jones stocks or even in the 30 DAX companies – which is the German counterpart of the Dow Jones – the profits in your portfolio would have been up on average by 11.6% per year with the Dow and 9.7% with the Dax. But if you were able to avoid the 20 worst trading days during the same period, your profits would have soared at around 19.2% per annum.

Now that's a difference of 7.5% on the Dow and 9.5% on the Dax and it all sounds pretty well and good. The problem is though, nobody can predict for sure and unerringly when the stock market is going to be at it's peak to get out quickly and when it's going to be down the valley to get back in low.

So when is the right time to get in and out? When a security makes 10% in one day or when it loses 10%? When it makes 3% in 5 consecutive days or when it loses 3% in 5 days? Or does a

sideways trend or a channel formation signal that it's time to get in or out? You can never tell with absolute certainty because at the end of the day it's all pure speculation!

The second problem is, answering the question when to get back in after you got out high or just before a consolidation. You see, a lot of investors hesitate for too long before getting back in again missing the new uptrend. Mostly the greatest gains take place after a stock has dropped sharply.

In the long run it's hopeless and futile trying to outsmart the markets by means of clever and canny timing because if you try to avoid bad times, you'll probably also miss the good times because after a consolidation, most investors are hesitant to get back in again being afraid that the markets could go down again or that the initial upswing could be a bull trap, which means that once a turn around to the up-side is signaled, the market quickly turns in the opposite down-side again.

By just missing the 20 best days of the year according to Fidelities survey, your total profits in your portfolio over the same 15 year period would have only been 5.5% per annum on the Dow and 1.3% on the Dax. So you would've lost out on an extra 6.!% per year on the Dow and 8.4% on the Dax. And that's big money! So as you can see, the effects of missing the good times are immense!

Staying fully invested, you will gain way more than you would by selling your stocks in between hoping to catch the right timing to get back in again.

Now I've got to point out one little thing here. If you're a short-term trader, timing does play a big role because a trader wants to get a chunk out of a trend that he's trading. So as soon he sees a signal for the trent to go opposite, he bails out. That's perfectly OK and it's also the right strategy to use if you trade options or other derivatives.

But if you're a long-term investor with a well diversified portfolio, there's absolutely no need whatsoever to continuously jump in and out of the market because that has nothing to do with long-term investing.

Conclusion

Investors that attach great importance to timing and believe they can outsmart the markets have to make an immense effort to achive good results that, at the end of the day, will not necessarily lead to the success hoped for.

Wishing you all the best financial success!

Ricky Schmidt

Ricky Schmidt's website was created out of frustration in trying to decode books, magazines and newsletters on the subject, which are supposed to be for beginners but are not because they're too difficult to understand. Too many "Big Words" and too much intelligent sounding grammar is used which is not very useful.

Penny Stock Psychology

To me psychology is the key to trading. Many trades on hunches about economic or political trends, while others use "insider information" or simply hope. Do you remember how you felt the last time you placed an order? Were you anxious to jump in or afraid of losing it all? When you closed a trade did you feel humiliated or embarrassed and started to second guess yourself? These feeling evolve among thousands of traders which merge ultimately into a huge psychological wave that moves the markets trend.

The majority of traders spend most of their free time looking for good trades. Once they enter a trade they desired to be in, they start to squirm and lose all self control over themselves. They ride an emotional train and miss the element of winning - which is the management of their emotions. Their inability to manage their emotions leads to a downfall in their stock trades.

All losing amateurs ignore the importance of psychology. If you are not up to date with the market, or you ignore mass psychology of crowds, then you have no chance of succeeding in the market. The importance of psychology is that it focuses on reality, which is you have to live with your eyes open. To be a good trader, you have to invest with your eyes open and make neutral decisions. You need to recognize real trends and not waste time on regrets or hopes that the stock will turn around from a downfall.

Trading is similar to sky diving, rock climbing, and street racing because they all share a common risk involved. These sports involve a considerable amount of risk/pleasure. Many participants in these sports ignore the risks and take thoughtless chances. A person who wants to enjoy the risk and excitement of sports must follow the rules. When he/she reduces the risk of a sport, they get a sense of accomplishment knowing they have control over that particular sport. This same criteria involves trading. You can succeed in trading only if you handle it as a intellectual pursuit to overcome the risks. To help ensure enjoyment/success, a good trader must watch his capital funds as close as a sky diver knows the exact time to release his parachute.

Penny Stocks and Stock Message Message Board

member of Hot Penny Stocks and Penny Stock Investing

Penny Stock Message Boards and Stock Chat Rooms

The general populations usually like to think that the stock market is generally a place for investment purposes and a place to put safe retirement money. However, even the larger more secure stocks and sectors are being infiltrated by the internet message board momentum. Institutions and Financial firms still hold large stakes in the big stocks, but more and more traders are independent now and bigger money is starting to be controlled in the hands of retail traders. Online Discount Brokerages are becoming more and more common along with the increasing demand for Self Direct IRAs (and RRSPs for our Canadian friends). All you have to do to check this is track the increasing profits of Online Brokerages and Trading Services.

Individual Traders and Investors are becoming the dominant force in the market. And because of this, their online communities (message boards and chat rooms) have become control the market. Public Sentiment on any given stock can control its movement and drastically affect its price. When something happens to a company, be it positive or negative, it can move that same company's stock along with related stocks in the sector up or down. Buzz about the boards and in the chat rooms take control of the stock by increasing optimism or inducing panic selling. Be careful and be aware of the public sentiment of any and all stocks which you are invested in. Even though your company and the chart may be headed in direction, a board or chat room's opinion can affect it greatly. Small Caps no longer belong to the Institution. Traders control the Stocks Now!

Article was written by Rob Rens of Penny Stocks and Stock Message Board

Rob Rens of Hot Penny Stocks and Penny Stock Investing