Basic Stock Charting Patterns - Trends, Floor, Ceilings and Other Patterns of Technical Analysis

I don't do a great deal with charting. While there are some who search through charts for price patterns, I've found that charting is useful for telling you where you are, but not that useful for telling you where you are going. Nevertheless, every investor should know the basics about charting, if for no other reason than to understand what other people are looking at and the predict their reactions. Here are some of the basic definitions that every stock investor should know:

Chart: A chart is a graph of price over a period of time. The most basic form of a chart is a line chart, which consists of a plot of the closing prices. A more useful chart is a OHLC chart, which plots the Open, High, Low, and close for each day (or week or month). This chart is more useful since it shows where a stock traded during the period, rather than just a point in time, which tells more of the story. Candlestick charts, which as colored or open boxes depending on whether the stock moved up or down during the day, are another refinement.

time frame: There are different time frames, which correspond to the length of time represented by each point on the chart. For example, a chart that plotted a point each 15 minutes, and spanned a day, would be a very short-term chart. A chart that plotted one point per day and extended a couple of months would be a short-term chart. An intermediate-term chart would have points that represented a few days or so and cover several months. Finally, a chart where each point was a week or a month, and covered a few years to a decade, would be a long-term chart. I'm typically concerned with the long-term trends, so I look at charts of several months to a few years or a decade in length.

Trend: A trend is the current movement of a stock. A stock will always be in an uptrend, downtrend, or drawing lines. We'll cover these in a later post.

pattern (Bull or Bear): Certain patterns are commonly seen that foreshadow specific price movements. One that would indicate the stock is ready to go up would be a "bull pattern"; one that indicated a decline in price a "bear pattern".

floor or support level: A price at which the stock traded at for a while before moving higher. When the stock hits that price, it tends to not move below it.

ceiling: The opposite of a floor. Here the stock price is below the ceiling, and it may be difficult for the stock to get above the ceiling.

moving average: An average in which the closing price for a specified number of days are added together and averaged. Each day a new day is added and the earliest day in the average dropped. Moving averages tend to smooth out the price of a stock and provide a clearer picture of what is happening. Also, a stock above its average may be pricey, one below it inexpensive. A 90-day moving average is a commonly used average.

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8 Commodity Stock Trading Application Rules

Some commodity Stock Trading Application rules are made to be broken, but when you`re trading, there are some rules are meant to be followed. Here some of the Stock Trading Application rules that I consider the most important principles of trading. I suggest that you make a copy of them and place them in your trading diary or tape them to your desk, so that you`ll always remember to follow them.

Commodity Stock Trading Application No. 1 ~ Cut Your Losses

Never let your losses get out of hand. It is one of the most important things that you can do to ensure you are successful. Losses can devastate you emotionally and will diminish your trading capital, violating your primary aim in trading - to preserve your capital. If you could get successful traders to credit their success to one thing, many would select this rule.

Commodity Stock Trading Application No. 2 ~ Let Your Profits Run

Hand in hand with the first rule is the second ~ let your profits run. Your trading plan will probably produce profitable trades less than half of the time. Therefore, you need to make sure that when you do achieve a profit, you get the most out of the move in the stock. Some up trends take time to develop; and you must wait until you see the high in the stock achieved and then the reverse in direction before you consider closing the position. Until you see the reverse, you won`t know if the stock is going to go any higher. Remember, your few profits must outweigh many losses.

Commodity Stock Trading Application No. 3 ~ Follow the Trend

In trading, trends are the only friends you have. Always trade with the trend! Never attempt to identify the bottom in the stock or time your entry using that approach. If you do, you can be run over as the stock continues on its way down. There is often great force and momentum at work when a stock is trending in either direction, particularly when the trend is down. Don`t try to fight it. Why buy something that is heading in the wrong direction on the hope that it will turn around and head back up past your entry level?

Commodity Stock Trading Application No. 4 ~ Don`t Overtrade

Don`t trade for the sake of trading. Never force the action. If you are not comfortable with any of your potential trades then don`t open a position. It is a mature decision to do this when conditions aren`t quite right, and you won`t be trading for the wrong reasons.

Commodity Stock Trading Application No. 5 ~ Never Act on a Tip

Who hasn`t reacted to a tip they heard from somebody about a stock that is apparently going to the moon and never coming back? Never act on a tip; tips are rarely good. The worst part of tips is that you will probably stick with the trade even when the security starts to head against you. You will be more inclined to break the commodity Stock Trading Application rules and not cut your loss because of the 'reliable` information you have heard about the stock`s future. Instead of trading on tips, have confidence in your own plan.

Commodity Stock Trading Application No. 6 ~ Always Trade Liquid stocks

It is a horrible feeling of helplessness to be stuck with a stock that you need to exit from because there aren`t enough buyers in the market. Liquidity is the ability to trade in a security without adversely affecting its market price. Always demand liquidity in your securities before you consider trading them, and you`ll never be stuck with a stock.

Commodity Stock Trading Application No. 7 ~ Keep Positions Small

When trading, you need to understand and manage risk to achieve long term success. If you want to completely avoid risk, then don`t commit any money to any financial market. If you are prepared to take some risk, then managing and controlling that risk will be crucial. One of the best ways to do this is to ensure you have, and use, a good position sizing model. This model will ensure that you don`t commit too much of your trading capital to a single position, allowing you to spread your risk across several positions.

Commodity Stock Trading Application No. 8 ~ Don`t Buy Something Because it Looks Cheap

If a stock is cheap, there is probably a very good reason for it. Only consider stocks that are trending up. There is no such thing as a stock that might start to trend up any day. Even if a stock looks cheap, who is to say that it will not get cheaper? It may never increase in price again.

With these commodity Stock Trading Application rules, a solid trading system, and good money management, you can become a successful trader. Remember these commodity Stock Trading Application rules and use them. Particularly when you don`t want too.

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The Best Time to Invest in Stocks

Put away your calculators and software programs if you want to get the feel for stock market timing. You'll never beat the other players if you follow the herd.

Above all else realize that all you need to do to win at the stock game is to stay one step ahead of the competition. You can do this only if you concentrate on understanding human nature and human emotions.

If you honestly believe that on a day to day basis that the stock market is rational, you haven't played the game long enough or been paying attention to the reality of the game. If you actually believe that someone can sell you a program that guarantees success in the stock market, it's time to change your thinking and refocus your train of thought.

The best time to invest in stocks is when there is "blood in the streets", and fear dominates investor behavior. The problem is that as an investor you are human as well, and are subject to the same emotions as everyone else.

What do investors do when overcome with fear? They capitulate ... they sell their stocks. This might have sounded academic before September of 2008, but if you were paying attention to the markets between September 2008 and March 2009, you saw investor fear in action.

So, how do you know when the best time to invest is?

If you are a serious stock investor, you were fearful in the above time period as well. I've been playing the game since 1973, and I felt it. Lucky for me, I had little invested in stocks in September 2008. In the months that followed I was waiting for the right time to start buying.

The best time to buy is when you are scared, but you are firmly convinced that the market (most investors) has truly overreacted to a bad situation. When folks are fleeing for the exits in panic ... selling indiscriminately ... it's time to step up to the plate and start to buy.

Don't go all or nothing. Keep some powder dry and invest in steps. You will probably never in your investing life fire one shot and hit the market bottom.

Think back to early 2009. Stocks had been falling for months on bad (horrific) news. Then, in mid-February, selling intensified and stocks started to fall like a rock. This was your invitation to start buying.

If you have always viewed the stock market from afar with nothing invested and nothing to lose, you've never felt the fear that overwhelms many investors in times of market stress.

Take it from someone who has been directly involved in three scary bear markets (1973-1974 ... 2000-2002 ... 2007-2009). Fear of losing your money is real and greatly influences investor behavior.

In times of great uncertainty think with your head and do not make investment decisions out of emotion. The best time to invest in stocks is when the heavy selling is at a climax. Shortly thereafter, all who were fearful enough to sell already have, and rational investors are starting to rush in to buy at bargain prices.

When buying and greed take control, prices go up and those who are still in the game make money. Then it becomes a matter of someday determining the best time to sell, because every market trend comes to an end. 

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com

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Penny Stocks Ready to Breakout - What to Look For

Believe it or not, penny stock trading can be boring. Not all of these types of equities spike sharply up or down as a constant. Some stocks can trade in a sideways trading range for multiple months. Not exactly what people expect from stockstackup.com" title="penny stock">penny stocks right? People expect a boom or bust type result most of the time.

The trick to finding stockstackup.com" title="penny stock">penny stocks ready to breakout (to the upside) is to use technical analysis of the chart, along with some research of message board activity of a specific stock. Let's look at a few points of each shall we?

Technical Analysis of the chart (things to look for):

• Noticeable volume increases over 1-3 trading days
  
  


• Slight closing or intraday price increases over previous highs
  
  


• Buy indicators such as the parabolic sar indicate that an uptrend is starting
  
  


• 20 and 50 moving averages cross upward to confirm an breakout is imminent
  
  


• Look for how the stock performed on other breakouts within the last several years to gauge expectations of where to sell or take profits
  
  


• Down trend lines broken to suggest that new bullish buyers are entering the stock

Message board activity:

• Big increase in number of posts
  
  


• Message board posts lay out bullish arguments
  
  


• Lack of coherent "basher" personalities, since they are detrimental to the confidence of the traders who are bullish
  
  


• Absence of personalities often associated with shady pink sheet stocks that perform poorly

Now I realize I did not go into great detail on some of these points, but you get the basic idea. If you are familiar with some of popular penny stock message boards, whether it be ihub or yahoo finance you will know what to look for. If you are not familiar with the jargon I used to describe the technical analysis of the charts, I would recommend going to http://stockcharts.com and absorbing the free information they have there, it's really not as hard to learn as you may imagine it to be.

I use these strategies and others that I find to be effective when I issue penny stock recommendations to subscribers of Microcapmilloinaires.com. It can be time consuming to monitor the market for these types of breakout setups, but it is worth it when you hit a couple big winners that can yield over 100 percent profits.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.

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The Best Way to Play the Stock Market

If you want to play the stock market start by earmarking a sum of money for that purpose and open a separate account with a major discount broker. Come up with a simple system for recording each stock transaction so you can tell at a glance what you hold, what you bought and sold, and where you stand for the year.

Now that you are organized and set up to play, there are some rules or guidelines that you should be aware of. Investors who play the stock market and win don't agree on everything, but there are some things that many of the winners do agree on.

Here's the best way to play the stock market based on the best advice I have run across over the past 35 years. Remember, in this game nothing is guaranteed, but the rewards can be huge if you are good at it.

1. Do not day trade in this account. stockstackup.com" title="day trading">day trading is a game of its own, played by those who trade very often and close out positions in order to pick up as little as a few cents a share within a few minute or hours.

2. Limit your holdings to about a dozen different stocks. If you own too many different issues you are likely to just duplicate the results of the market in general. This is not your objective when you play the stock market ... you should be trying to beat the socks off the market averages.

3. Watch your holdings closely. Once again, this is difficult if you own more than a dozen different stocks.

4. Hold your winners, and cut your losses by taking a small loss on the losers. Few REAL professionals disagree with this basic principle. If only one-half of your stock picks turn out to be winners, your gains will outweigh your small losses.

5. Don't try to catch a falling knife. In other words, do not buy a stock when its price is in a free-fall. Momentum is a fact of life in the stock market. As in physics, an object in motion tends to stay in motion until acted upon by an outside force. Wait until market forces halt the downward slide in stock price before you buy.

6. Sell a stock as soon as it fails to keep up with the market averages. If the market in general is moving up with conviction and one of your stocks is not, get rid of it.

7. Give ETFs serious consideration. This is the best and easiest way to play a sector or segment of the stock market. Why sweat over which financial, foreign or basic materials stock etc. to jump on at an instant's notice? Buy the group, and sort out the winners and losers later if time is a factor.

Above all else, keep a firm grasp on reality. You are playing this game in order to win big. I don't care what else you have accomplished in life, you will find this adventure more challenging than you anticipated.

FEW folks beat the market. Few professionals do either.

That's why I recommended up front that you earmark a sum of money in a separate account to pursue this game. Do not bet the farm on your dreams of beating the market, because it's a tough nut to crack. Consider the money in this account as "play the stock market" money. In other words, earmark an amount of money you could live without when you open this account.

Managing your serious money ... your retirement nest egg ... is a totally different game and different rules apply. Personally, I play both ways and have for years; but I make every effort to keep the two in perspective.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com

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The Disadvantages of Technical Analysis For Stock Trading

Many traders use technical analysis for trading stocks. Technical analysis is very attractive because it is based on math and statistics, thus giving the illusion of accuracy and predictability. However, technical analysis has several flaws and traders should be aware of its limitations.

These disadvantages include:

1. At their heart, all technical indicators - no matter how complex - are based on price, which always reflects what has already happened in the market. Thus, technical analysis is reactive - not truly predictive of what will happen.

2. Today's markets are much more chaotic and choppy compared to previous decades. This is because of hedge funds and computerized ultra-stockstackup.com" title="short term trading">short term trading activity. The result is more false signals and ill-formed patterns from technical analysis techniques.

3. The bulk of technical traders still rely on a handful of indicators first created in the 1970's. This results in their overuse and, thus, the markets adjust and render them less effective.

4. The majority of technical traders attempt to do trend-following. While trend following techniques can make big money over time, they have a low accuracy rate and a high draw down (most trades are losses and its not uncommon to be down 50-60% at some point). Most traders can not handle this psychologically. They end up overriding stockstackup.com" title="Trading Signals">Trading Signals and/or switching between systems.

5. Classical trading chart patterns can be found in graphs of non-market related activities, including temperature charts. Also, chart patterns can appear and disappear depending on the scaling of the chart. This strongly suggests that chart patterns are a trick of the human eye and have no predictive value.

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Technical Analysis in Stock Market Trading

The methods used to analyze securities (stocks) and make investment decisions are vast, but tend to fall into one of two categories known as fundamental analysis and technical analysis. Fundamental analysis involves researching and evaluating the characteristics of the company including the evaluation of company financial statements in order to approximate the value of a company. Technical analysis, on the other hand, pays no attention to the value of a stock and cares more about price movements based on general market psychology and historical trends.

There are numerous charting indicators available and over time I will attempt to discuss and educate our readers on these types of indicators and how to read them for important data. However, for the scope of today's article, I simply wanted to introduce our readers to the basics of technical analysis and how it can be helpful when completing due diligence on investment or trading opportunities. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.

Technical analysis can be defined as a method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, trends, patterns, and formations in charts. These formations within the charts are, as believed by technical analysts, said to be in large part dictated by the psychological makeup of the market.

Through the use of charting, analysts attempt to explain the supply and demand of a security and help in determining the emotions of those in the market. Technical analysis is based on the basic theory that the price of a stock reflects everything that could or has affected a stock. Therefore, fundamental factors as well as economic factors like the overall psychology of the market are all priced into the stock, which leaves only the analysis of supply and demand in predicting the price movement of the forecasted stock.

Analysts believe that future prices are dictated by previously established trends, attributing the repetitive nature of these trends to the basic makeup of the markets psychology. They believe that market participants tend to react in common ways to events within the market, therefore through the use of technical charting, patterns can be used to analyze price movements and understand these trends.

Jennifer Mycock & Branden Moskwa of Tradeopolis.com

Tradeopolis.com, your stock market trading and stock investing resource, with access to articles on Stock market trading and stock investing. Penny stocks to mutual fund investing, tips and secrets and all the latest hot press releases.

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Stock Day Trading Program - Does it Really Work?

Many people already know that it is a great time to invest in the stock market. In fact, it is one of the best times to invest, because you can often find prices very low on stocks that will end up making you a lot of money. The markets are a good idea for anyone who wants to have a long-term investment, but if you want to really be able to stockstackup.com" title="make money">make money, you need to understand how the stock markets work, and which stocks will be the best to invest in.

Therefore, it is prudent to say that the stock market is a good idea - but only if you know what you are doing. Does this mean that if you aren't familiar with the stock market, and don't have time to do your research in order to play it well, you should leave it alone? Not entirely, because one of the best ways for anyone to become involved in the stock market is to use a stock trading program.

You might have heard all about a stock trading program

And you might be wondering if it actually works or not. It often seems too good to be true - a program that can help you play the stock market correctly, and can provide you with an excellent way to choose stocks that will make you the most money and that will allow you to be happy with the investments that you've chosen. However, the bottom line is that a stock trading program does work - it is only important to figure out how it can work the best for you.

First of all, when it comes to a stock trading program, one of the most important things to remember is that it is going to work in different ways depending on the program and depending on the person who is using it. Each person should be able to get something different from the stock trading program, and that will allow them to figure out how to be happy with the stock trading choices that they have made in many ways.

The first thing that a stock trading program will do for you, and the first way that it will work for you as well, is that it is going to give you a chance to learn more about the stock market than you ever thought possible

When you are able to use a stock trading program, you are going to be able to get information about the various stocks, and you'll have a chance to also get information about the stock market in general, which is going to be a good way to focus on some of the tasks that you'll be working on later on. Learning about the stock market is often the best way for you to become more accustomed to it and to figure out how you can use it to make yourself more successful in the long run.

Secondly, a stock trading program is going to give you a good idea of which stocks are the right ones to invest in

It does this in several different ways, depending on the actual program and on what you want it to do. It might work on a preset list of conditions, and will use that list to pull the right stocks for you to look at. It also might be customizable, and you can get an idea of the right types of stocks by looking at the customization and what that means.

Either way, you are going to find that with the right stock trading program, you can be very happy with the results that you have found, and you can end up knowing exactly what you are going to be doing with those stocks.

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Wall Street, Banks and Financial Terrorism

"Greed, stupidity, hubris and outright corruption." A quote from Phil Angelides, former California treasurer and current chairman of the Financial Crisis Inquiry Commission, a bipartisan panel formed by Congress to investigate our financial meltdown. Angelides told Frank Rich, one of the best political writers on the Planet, that he will not stand for these proceedings to evolve into toothless meaninglessness. Hopefully, he can pull it off, because if the Country does not enact meaningful, powerful financial reform now, the greedy heathens of Wall Street will take us for all we're worth, and much, much more, and another looming meltdown is guaranteed to take us down, maybe for good.

Again, according to Frank Rich of the New York Times, "Angelides gets it." He'll be following in the footsteps of Ferdinand Pecora, the legendary prosecuter who investigated the 1929 stockstackup.com" title="stock market">stock market crash at the time FDR took office. He kept America's interest in an era without television by he keen investigative prowess which led to indictments, jail time, and famous New Deal reforms, the creation of the Securities and Exchange Commission and the Glass-Steagall Act which was created to restrict banks from becoming too big to fail.

Pecora focused on the CEO of National City Bank, which would later go on to become Citigroup. NCB repackaged bad Latin American debt and sold it to greedy, unsuspecting investors starving for big profits. Once the Market crashed, bank execs took the money and ran, while their employees took the brunt of the collapse with salary deductions to keep the bank afloat. Sound familiar?

Replace lousy Latin American debt for mortgage debt, and you have today's Citigroup staring you right in the face. Frank Rich states: "Among those Citi executives was Robert Rubin, who, as the Clinton Treasury secretary, helped repeal the last vestiges of Glass-Steagall after years of Wall Street assault. Somewhere Pecora is turning in his grave."

How could OUR money have been used to bail out Wall Street's banking gambling addicts while everyday Americans recieved nothing out of it. Have WE ever been bailed out? Did any of the massive billions leading to trillions of dollars in debt flow into your or my pocket? I won't even answer.

The financial economic elite including Henry Paulson, Timothy Geithner, Ben Bernanke and Larry Summers need to be held accountable. Accountability is a four-letter word in Washington. The prevailing attitude is that accountability is nothing but an archaic relic from generations past.

If these goons waltz away yet again by blaming anybody else but themselves, Wall Street will be left basically intact, living to swindle as it pleases. Frank Rich: "That's the ticking-bomb scenario that truly imperils us all." I call it financial terrorism perpetrated on The American People. It can not, and must not be allowed to continue.

Grant Brad Gerver is an entrepreneur and creative consultant for Filibi, an online classified and coupon advertising site and free home business paying 70% commissions to its members. He's also a YouTube blues singer-songwriter and guitar player (gbgerver) who performs with The Buzzard Brothers. Additionally, Grant writes political humor, thousands of bumper stickers, and humorous movie reviews. He has also worked with various companies as a product-naming specialist. He's a retired elementary school teacher and published children's author who works in the health care field.

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Live Stock Technical Analysis - Guide to Success

For a layman, stockstackup.com" title="share trading">share trading can just be selling or buying of shares like nay other product, but for a trader or precisely an investor, trade becomes a priority consideration. They invest huge amounts of money into the stockstackup.com" title="share market">share market attempting to reap up great profits in the longer run. Till their accounts wither, they live in a hope to see augmenting profits and nothing else. Coming out of the general concept, stockstackup.com" title="share trading">share trading also impacts a country's economy largely. A nation relies on how the international or local operations in the market perform.

A trade is thus, declared to be profitable and successful if it translates into a gain of the GDP and that indicates the thriving economy of a country. However, behind this smiling profitable story trading lays extensive study and stock technical analysis. For instance, in the Indian stockstackup.com" title="share market">share market, Nifty and BSE sensex are the index or indicators giving a clear idea of the market situation and also whether it is the right time to invest or not. 

This technical analysis completely thrives on finance and investments and is an elaborated study of the share market, study of an asset, price action to predict profitable movements in the market. These often guide an investor to make great profits. With the internet spreading its wings on all aspects of business, share market too does not lie unaffected. Share brokers have their helplines open online where online share trading is carried on. A number of trading websites like Nirmal Bang shelters trading experts and also provides ample information on Indian mutual funds and the functioning of stock markets BSE and NSE.

What is used as a tutorial is a well blended experience guides where the pasta and present market fluctuations are studied upon and accordingly the new strategies are devised. This can help one arrive at a price well-established trend too and can make decisions based on one's own intuitive mind. A true stock technical analysis is one which teaches you to look into the market and decide accordingly which would be the most cost effective way to trade the shares.

Nirmal Kumar Soni is freelance market analyst and is writing reviews articles on stock share market, stock technical analysis, share market and information on stock market.

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Stock Trading - Make Wall Street Pay You Money

Let me introduce you to the idea of Wall Street paying you money. To get the stock market to pay you money you need to get to know the world of stockstackup.com" title="options trading">options trading. In the world of stockstackup.com" title="options trading">options trading, if you trade more than one option at the same time (buying one and selling the other) that is called a spread. If the spread costs you money, it's a debit spread.

However, if it puts money in your account, it's a credit spread. A credit spread is usually theta positive. That means that it makes money from the passage of time.

The passing of time is a sure thing. (Note: that does not make your trade a sure thing, but it does stack the odds in your favor).

ere's the basics of a credit spread. You sell an option that is more expensive, and you buy a cheaper one.

Here is an example.

If ABC stock is trading at 100, and you sell a call option with a strike of 105, and buy a call with a strike of 110, then you are in an out-of-the-money credit spread. (This is called a bear call spread).

A bear call spread or a bull put spread (the opposite thing) are the simplest credit spreads. There are more complicated ones too. You can do an iron condor, or an inverted butterfly. Speaking of that, you hear a lot about the butterfly spread, but not much about the inverted butterfly. If you want to do something interesting, study about the butterfly spread. Then realize what would happen if you flipped that around.

I think you'll like what you discover.

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Becoming Wealthy with Stock Market Investing

The question of whether or not you can get rich investing in the stock market is a common one. While such an endeavor can make you rich, there is no sure fire way of making sure that this happens. In other words, the answer to the question "Can you get rich with stock market investing" is both yes and no. In fact, you will need a lot of skill and some luck if you are hoping to get rich this way.

The market fluctuates on a daily basis. You need strong investing skills in order to stockstackup.com" title="daytrading">daytrading.stockstackup.com" title="stockstackup.com" title="make money">make money stockstackup.com" title="day trading">day trading">make money day trading. In other words, you cannot simply buy some stock and hope that it will make you rich. Instead, you need to learn which are best, how to read trends, and when to buy and sell. All of these skills will come with experience. It is important for you to invest with patience when you are new to the market so that you can gain experience and maximize your future profits.

Luck also plays a huge role in profiting from this method. For instance, purchasing stock at a low price and then having it explode shortly thereafter will surely pay you a lot of money. But there is only very few stocks that can do that and those are hard to find for someone new in the game and no access to inside information. Simply put, there are some people who always seem to buy the stocks that grow and grow but it will take time and effort before you can become one of them.

There is no denying that you can get rich by investing in the stock market. However, just as the rewards are high so are the risks. Starting slowly and increasing your investments over time as you learn more can minimize the risks and increase your chances of a large payoff. The bottom line is that not everybody will make millions day trading. But at the same time, maybe you will be the next one to hit it big!

Learn more about stock market investing and money management at mandvice.com. Our experts want to help you succeed in your financial endeavors.

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Currency Trading Forex Spot Rate - Spot On?

The most important initial difference stockstackup.com" title="currency">currency trading training Rollover. In the spot stockstackup.com" title="forex">forex market, not in stockstackup.com" title="currency">currency futures. This will help you to understand the stockstackup.com" title="forex">forex brokerage forex trading process and how currencies are affected by different things that forex software are happening on a global trading the forex market candlestick scale.

One can learn to trade by creating an online forex account and begin by using a learning account without real funds. Online Forex trading has the potential of being extremely lucrative. This is due to the fact that many investors will withdraw money from a country's banking stock market when there is a nose-piercing rise easy ways make money in the prime interest rate a forex trader may take a position based on that finance information.

Interest rates hikes, however, forex quotes pager are usually not good news for stock markets. It is possible to gain a higher return. This market of exchange has more daily forex currency trading broker volume both buyers and sellers than any other market the trading on forex, along with an exclusively high potential measuring growth stocks profitability, is essentially risk forex bearing one.

In any spot rollover transaction the difference between the interest rates of the base and the interest rate for such a swap is predetermined, and, in fact, these swaps are actually financial instruments that can also be traded on currency trading beginner the currency market. Overnight positions are positions that are still on at the end of normal trading hours, which are automatically free owner finance legal documents rolled at competitive rates based on the currencies interest rate differentials to the next settlement date giving an extension of two additional business day.

Intra day Currency Trading Forex Spot Rates [http://fxtradershub.com/Currency-Trading-Forex-Spot-Rate.html] are all positions opened anytime during the 24 hour period after the close normal trading hours. forex signals nonetheless, more often it is the expectation of an event that drives the market rather than the event itself. The event can range mortgage refinance from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war.

The most dramatic price movements however, occur when unexpected events happen. Currency prices are affected by a variety of economic information, including news, government-issued indicators and reports, and even rumors.

The author runs a Forex Traders website where traders can gather tips and resources about forex trading at http://www.fxtradershub.com

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Why Stock Prices Fluctuate Daily - 3 Main Reasons Affecting Share Prices

Not sure what keeps the share prices changing on daily basis? These are the reasons why.

Demand and Supply

In stock market, the stock price will fall if number of sellers is greater than the number of buyers. On the other hand, if there are more investors want to buy the stock than the number of sellers who are willing to sell their holdings, the price will increase. This is just a typical example of demand and supply curve. The next question would be what will drive the demand and supply?

Market Psychological Effect

Demand and supply of the available shares to be traded is principally due to market sentiment. Whenever investors and traders feel the stock is not able to meet their expectation, they will sell their equities as soon as possible. Whereas, if they are optimistic of the future growth, they will be buying more shares of that stocks. But, what cause the market to change?

Unfortunately, there is no single answer to that question.

However, the most obvious factors include inflation, interest rates, energy prices, quarterly earnings reports, news on corporate events, war and terrorism, crime and fraudulent as well as political instability. Remember, when it comes to market sentiment, media plays the major roles. To make the news popular and gain most viewers, good things can be interpreted as bad actions sometimes. So, filter the information very carefully and do not let media influence your investment decision.

Individual Investor Needs

This is the most difficult one to detect but is the main reason why stock prices fluctuate daily. Look, every now and then, investors who buy the stock have pre-determined price to sell even before they purchase the shares. As a result, even if everything remains the same, the share prices may fluctuate due to their activities. Moreover, seasoned investors have trading tools to detect when they should buy or sell for maximum profits but minimum risks. You can also take advantage of the daily price fluctuation if you understand how technical analysis works.

Zainul Anuar is the founder and CEO of Stock-Investment-Made-Easy.com, a step-by-step guide to stock investing for beginners website. Find out more information on what moves the stock market at http://www.Stock-Investment-Made-Easy.com/

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Getting Started in The Stock Market - How Much Should You Invest & With Who?

Thinking about investing in the stock market? Not sure where to start? Here is a step by step guide to getting started in the stock market.

Step One: Evaluate Your Financial Situation

Before getting started in the stock market, it is important to determine whether or not you can really afford to invest in stocks. Start by looking at both your savings and your debts. If you have credit card debt or an auto loan, it would make no sense to invest in the stock market. The average annual stock market return is seven percent. If the interest rate you pay on a credit card or auto loan is any higher than that, you will be much better off paying down your debt versus investing in stocks.

Step Two: Decide What to Invest In

The next step involves deciding which stocks to invest in. You have two main options: straight out stocks or mutual funds. Stocks are shares of ownership in a company. A mutual fund is pooled money from a large group of investors that is invested in stocks, bonds, and other securities. Mutual funds are often the best choice for beginning investors because they are managed by someone else and are easy to invest in. Whatever investment option you choose, be sure to research your picks before you buy.

Step Three: Decide How Much to Invest

When you have chosen your investment vehicle, the final step is deciding how much to invest. A good rule of thumb is to not invest any more than you can reasonably afford to lose. No stock pick is guaranteed, which means it is just as easy to lose money as it is to make money. It is also important to think about diversification. Spreading around the money you can afford to invest is the safest way to get started in the stock market.

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Wall Street Snake Oil

If you are the average American investor it means you have no idea what or when you should be buying and selling. stocks? Bonds? Mutual Funds? Limited partnerships? ETFs (Exchange Trader Funds)? Money Markets?

Any broker is ready and willing to prescribe his brand of snake oil. Notice I left out 'able'. The brokerage houses require their "experts" to stick with the party line and to recommend only what the house wants sold. It might be a new issue or some excess inventory they want to move.

Brokerage houses to this day do not want their brokers to think for themselves or to come up with any creative method to help the customer make or preserve his money. No, that is not what they say, but it is what they do.

History has proven that a knowledge of technical analysis is far superior to fundamental analysis. The fundamentalist studies corporate sales, P/E ratios, gross margins, cash flows, earnings, growth, management's background and economic data. When most of these factors look their best is when the market is at the top and gives fundamental buy signals. When they look the worst is at the bottom and that is when these companies are the best buy - sometimes.

The best signals are given by technical analysis. With today's computers it is relatively easy to follow hundreds of stocks or funds by setting up specialized programs to alert the investor when certain technical indicators are aligning to give investment signals. These parameters are not subjective, but mathematical. One large portion of technical analysis is based upon charting which is very subjective and requires a great deal of applied apprenticeship.

The greatest amount of customer snake oil is made from fundamentals as corporate "facts" are most easily distorted from huge sources of information. It is somewhat more difficult to hide empirical facts especially when placed on charts.

Snake oil comes in many forms, but mostly in beautiful color brochures about their projected performance. Pictures of their offices and equipment. On CNBC-TV there will be interviews with the company CEO who will paint a glowing picture of anticipated performance and profits. Fingers are twitching as the investor wants to write a check to buy some of these magnificent shares. Never listen to the company CEO. Do you expect him to tell you any bad news?

It takes a while to develop a story and have it seep into the pores of broker/salesmen. They are the targets of many snake oil presentations as these are the people who then sell it to you. There is one way to check out the story's facts. Put up a chart on your computer screen that is from one to three years and if it has a price appreciation that is slowly ascending at about a 30 degree angle this one might be a good buy. If it is declining look no further. Pass or sell out if you own any.

Always be cautious. What you might be getting is a big expensive bottle of snake oil.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

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Learning All About the Stock Market With a Free Online Stock Market Game

Learning how to help your money work for you in with stocks can be very confusing. Many people would like to leverage their extra money but they are scared to take the first leap. If you want to learn about trading without all the risk, then you should try a free stockstackup.com" title="stock market">stock market game. These games offer you up to $100,000 dollars to trade with in a fake market. The benefit to this type of game is that it is just like the real thing only the money is not real. Playing these games is the perfect way to learn how to invest without any risk to you.

There are many terms used that the average person would not understand. For instance, buying long or buying short. When you play a free stockstackup.com" title="stock market">stock market game, you can learn these terms and see them in action. The Wall Street Survivor is a game that is absolutely free to sign up for and you can learn everything there is to know about the market and how it works. There are many different sections where you can trade, do research and even talk to members all for free.

Another benefit to a free stockstackup.com" title="stock market">stock market game, is that you can win cash and prizes. If you do well, you earn points and these points can be used for prizes. They also have incentives for people when they accomplish a task or beat other players. Doing well in this pretend world of trading could give you the courage to try trading your own money. Once you have the understanding of how the stock market works, you then can take that leap and make some real money in the real world.

It is very common for people to be hesitant when they are putting money on the line. You never know how an investment will pan out and if it will be worth the risk. Playing a free game is the best way to learn about the stock market and have some fun. Some may say that it is not the same because you are not risking real money but learning about the stock market through buying and trading fake money is a good way to start. Try one of these free stock market games and you will be surprised how much fun you will have and maybe even win some cash or prizes in the process.

Find out more about this Online Stock Market Game in my Wall Street Survivor Review.

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Market Plunges

The frequent fall (or downward trend) in the price of stocks is referred to as a Stock Market plunge. The general public sentiment is that in order to avoid Stock Market fluctuations and risks, it is better not to step into the market, while the stockstackup.com" title="day trader">day traders' policy is that the best way to deal with the risks involved in the Stock Market is to get in and get out of it quickly. We have plenty of advice on the Stock Market.

The change in the stock price is unpredictable. Sometimes it touches the sky, while at times an investor feels as if his investment is dumped in a pit. Despite long detailed tips given by television commentators, financial writers, analysts, and market strategists, investors find it very difficult to benefit from them as the tips often prove to be misleading. Many investors become a victim of serious depression due to the risks and losses they have to encounter.

There are a number of ways to survive in a down market. While it is tough enough to save oneself from some general losses, an investor can be secured against the losses that will make him completely disappear from the Stock Market forever. Some of the key tools to protect the capital invested in the Stock Market are given hereunder:

o Be alert on the existing and potential market scenario and make changes in your stockstackup.com" title="investments">investments according to it. Be cautious before it is too late. Do not wait for the extreme to happen in the fluctuating market.
o Sell your stocks instantly if you are on the margin position. When your position is on the margin, it may become even worse. So, it is suggested to save your cash for a better opportunity after the market has stabilized.
o If it is essential for you to stay in the market, just rotate your portfolio. That is, buy safer and defensive stocks. The benefit is that those stocks have regular and stable income streams and are not much affected by the market scenario.
o Don't run for growth stock. Such stocks are extreme in nature, that is, either too profitable or too adverse, thus, increasing the risk factor.
o You will always be tempted to buy more stock under the down market condition as they are available at cheap rate. But it is advisable to invest in the market at a higher price to avoid any downside risk. Some stocks take many years to become stable again.

It is better to seek advice than to assume the conditions individually. It will help you a lot in researching and understanding the market criteria and deciding over the required steps to be taken in order to avoid risks.

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Life Insurance - A Must Have Necessity

Life insurance is the means to ensure that your dependents continue to have financial security even after your retirement, death or in case you can no longer provide for them due to accident/ disability. By entering into a fixed tenure contract with a life insurance company and paying the premium, you safe guard the financial interests of your family. If you die during the tenure of the policy, your beneficiaries receive tax free cash payout of a pre decided amount. Traditionally life insurance policy only eliminated the uncertainty arising due to loss of a bread winner for the family. But with the changing life style and need to provide a comprehensive cover, the financial investment planning has evolved over time. A good insurance policy can provide any or all of the following:

• Pure life cover
• Saving planning
• Child education plan
• Financial investment planning and
• Retirement planning

Rather than taking out a life insurance plan after reaching their fifties, people today are taking help of their insurance policy for financial investment planning of their entire family including their unborn children. A variety of insurance products are available in the market to cater to each and every financial requirement of the insurer. Well recognized and established players like ING Life offer a basket of mixed life insurance plans to suit the needs of every policy taker. Some essential benefits of buying life insurance India policy early in working life are:

1) Meet the fixed cost - Almost every average family has some or other long term fixed obligation like home loan, education loan or medical loan. You would not like to leave your family burdened down with a hefty loan obligation in case anything happens to you. Your insurance cover will help them better to deal with any fixed costs.

2) Take advantage of smaller premium payments early in life - A young and healthy person will have to pay smaller premium compared to an older and ailing one. Thus taking out a long term insurance policy for say 30 years will help you save considerably. Besides, the advantage is that if you do develop some health problems later in life, your insurance cover will help you deal with the financial ramifications of it.

3) Security for dependents - Death is unavoidable, but the pain and anguish of loss can be considerably reduced if the surviving family has a financial planning to fall back on. Besides, your death should not be a reason for your family to curb your child's education dreams or to do without medical support as they can't afford the expenses. The peace of mind you get from knowing that your loved ones will always continue to live in peace is the biggest reward of investing in life insurance.

4) Affordable Life Insurance - For those who cannot afford to take different types of insurance for different needs like health insurance, home insurance etc., taking an affordable life insurance is a better option. Your insurance policy will help you meet with any medical expenses arising due to terminal illness. You can also take out an insurance policy that will make periodic payouts according to your future requirements like for daughter's marriage or child's further studies.

5) Meet immediate financial needs - Since life insurance benefits can be accessed immediately, they can help pay funeral costs and estate settlement costs.

6) Stay independent all your life - The wish to live a dignified life and not have to beg and borrow in the older years can be fulfilled with a life insurance pension plan policy. Investment type insurance policy builds up in value over time and you can reclaim a good amount to life a comfortable aged life.

Whichever life insurance policy you opt for, make sure to understand all the terms and conditions of the policy clearly. Also calculate your minimum insurance needs to ensure that your policy amount is not insufficient when the actual need arises. Finally, invest a practical amount, don't take out an unreasonable premium policy that may be turn out to be a big drain on your monthly earnings.

Insurance policies are the largest largest financial investment planning services offered to the people. There are several advisors spread across the country to help the people in selecting insurance policy products like ULIP, child education plan, pension plan, etc...

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The Stock Market Explained

So, understanding the stock market...OK...what the heck is the stock market anyways?

The basic function of the stock market is to provide capital resources for corporations that seek capital to expand their operations and finance their growth.

If you make your money available to theses companies, you help them expand and prosper.

Companies that issue stock shares to the public are considered "publicly held" or "publicly traded" companies. Stock shares represents ownership of a corporation. As a shareholder, an investor owns a portion of the company's assets and profits.

With ownership comes risk and a shareholder assume the primary risk if a business does poorly. However, they also stand to make the greatest return if it succeeds. If he is smart, the shareholder would be wise to be understanding the stock market too.

When an entrepreneur starts a company, he often looks to family and friends for start-up capital. As the company grows, it will need more money, or in other words capital. Those who survive those tough early years, when most businesses fail, will look for a bank loan.

Loans carry high cash costs, in the form of interest payments. Eventually, if the company grows enough, its owners may choose to issue stock shares in the public markets. Understanding the stock market is very important to know for these entrepreneurs.

When you hear that a company is "going public", it means that the company is issuing shares of ownership for sale in the public marketplace. This process takes place during the initial public offering, or IPO.

The IPO is a first-time offering of stock for sale to the general public. The IPO process involves a number of people in addition to the company owners, and can be a rather complex undertaking. The company itself must be clear in understanding the stock market.

To go public and issue an IPO, the company must use and find an Investment Banking firm that is willing to underwrite the public offering. The Investment Banking firm, or underwriter, will do their best to sell the shares. They may reserve the right to sell the offering on an all or none basis, which means that if they cannot find buyers for all the shares to be issued, they may call off the entire offering.

The underwriter's profit in this case is made by a commission charged for selling the stock. If the underwriter agrees to a firm commitment to sell the entire offering, usually the first move is to buy all the shares that are going to be publicly offered at an agreed-upon price.

The underwriter then attempts to sell those shares to the public for a higher price, thus profiting from the transaction.

Stock Classifications

Stock Types There are two classifications of stock: Common and Preferred.

Common stock is usually what is issued to the general public. The term common Stock doesn't carry any negative connotations, but rather indicates that it is the "standard" stock the company has offered. Common shareholders have voting rights.

And as the word suggests, "preferred" stock has certain advantages over common stock. First, preferred shareholders are paid dividends before common shareholders. And if a company isn't doing well, the Common stock dividend is eliminated first.

Second, is if a company goes out of business, the owners of preferred shares have prior claim to any assets that remain when the company is dissolved and after bond holders and other creditors have been paid. Owners of common stock are the last in line to pick up the pieces of the fallen corporation.

There are disadvantages to owning preferred shares. Preferred shares have no voting rights. Also, the price of preferred shares tends to rise more slowly that the price of common shares.

As owners, common shareholders elect a corporation's Board Of Directors. The board of directors is a group of individuals, which are responsible for managing the affairs and growth of the corporation. The power of the board usually extends beyond that of the founder of the company.

The power resides in this board because the board is in the position of representing the shareholders as a group. This board must be educated in understanding the stock market.

Normally, owning one share of common stock gives you the power of one vote. If you have control a large number of shares, you will have more influence on the outcome of elections.

At worst, common shareholders can lose their entire investment if their company fails. In such a case, a company may be sold or liquidated and its remaining assets distributed among creditors, such as banks and bondholders. Shareholders would receive proceeds only after theses more senior claims are satisfied.

In order to stockstackup.com" title="make money">make money, the individual shareholder must sell his shares back to onto the market, through a Stock Exchange and their Stock Brokers.

StockMarket-Coach.com cares a great deal about you. Our aim is to provide the best stock advice with a friendly and positive attitude to keep you on the road to trading success.

StockMarket-Coach's mission is to provide a program of sound investing advice, education, and support that helps create successful lifetime stock investors. By doing the appropriate investment research and therefore becoming a confident, knowledgeable stock investor, you as a stock trader is empowered to build better financial futures for yourself and your family.

Peace and Abundance!

http://www.stockmarket-coach.com/index.html

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