Easy Tips To Improve Your Stock Trading Profitability

As a trader you need to understand why it is that you enter a particular position, what is your own specific reason for position entry, the answer can't be "It looks like it's going up". You can't put down money based on a gut feeling; you have to be motivated by a technical reason found in the chart that you are observing. Another factor that will influence your trading is volume. The average daily volume of a stock that you choose to trade should be at minimum 1M shares. Be very cautious when risking your equity, make sure you have spent sufficient time paper trading, otherwise you will pay a lot of money in market tuition... and that can be quite costly.

Something else that will have to be considered is your personal workstation. Keep your work area clean, and uncluttered. A messy desktop will not allow you to think clearly, and will prove to be distracting. You will need a good monitor setup (2-3 monitors minimum) so that you have ample real estate to view charts, level 2, etc. You will also require high-speed Internet connection and a good direct access broker. This is a serious profession based on mathematics and market psychology, so act professional. If you trade with a budget day trading casino mentality, you will quickly gamble away your entire account.

A Few Words About Charts

It took me a few months of experimenting to find my personal g-spot for my own personal chart setup. I'm going to offer up some tips on how you can best manage your own charting.

1. Keep it simple, and uncluttered. Have only the essential information displayed because you will spend a lot of time just waiting for a healthy setup to present itself. If you have a complex window to look at with a lot of flashing colours and numbers, you will only get eyestrain.


2. To reiterate on the first point, don't have too many technical indicators on your charts, especially indicators that conflict signals.


3. Have at least one broad market chart and one sector chart, are they making new highs today compared to yesterday? It is important to gauge the market relative to the previous trading day's range.


4. Have a time and sales window for your stock, is there a buy or sell pressure?

When reading your Level 2 window use it primarily for order routing only. You can't always base a trading decision on what information you see there, because there is a lot of bluffing and intentional manipulation that happens in Level 2. You need to focus on the big picture of the market first and foremost, is it a red or green day? Is it a volatile day or is it very choppy with deadly whipsaw like activity? After you have performed this initial diagnosis, then you can use the individual chart patterns to identify a profitable entry and exit point. A common beginner mistake is just jumping in and out whenever and where ever-an entry and exit point must be determined BEFORE you place the trade.

Read this book to learn more strategies that can significantly improve your trading profitability.

Ashbee A. Bakht is an international best-selling author who holds a degree in psychology from Brock University, Canada and he attained his postgraduate education in minerals and mining at the prestigious Norman B. Keevil Institute of Mining Engineering, at the University of British Columbia, Canada. As a professional commodities trader and arbitrage specialist, Ashbee's strength can be found in taking positions based on economic forecasts of trends and seeking out arbitrage opportunities. Ashbee specializes in trading crude oil, gold, silver, and other base metals.

Ashbee's books can be purchased at Barnes & Noble and on Amazon.

Article Source: Here

Tips on How To Read Forex Charts

Charts are very important in Forex exchange as they aid in monitoring the rate change of the currencies that you are trading. There are many types of charts that you can use in monitoring the change:

Line Chart

A line chart draws a line from one closing price to the next closing price. When you string the lines together you are able to see the movement of the currency pair over a period of time.

Bar Chart

This one is a little bit complex and it shows the opening and closing prices. It also shows the highs and lows of the trade. The bottom of the vertical bar shows the lowest traded price while the top of the bar shows the highest price paid.

Candlestick

This is the most popular chart used in Forex trading. The main function of this chart is to serve as a visual aid. There are many reasons why candlestick charts are common: they are easy to use, interpret and are excellent tools in helping you in identifying the market turning point.

If you are a beginner you are on the lucky side as the chart comes with cool names such as "shooting star" which helps you in remembering what a given pattern means.

How to Read A Forex Chart

Do you want to know how to read a Forex chart? Here are tips on how to go about it:

You should start by locating the chart that you want to analyze and then find a range. Remember that charts show both short periods (such as 12-24 hours) and long periods such as weeks and months. As a beginner, you should start with charts that show short periods.

To easily understand the data presented you should begin with a single data bar. Here you should locate the open and close prices that are indicated by the horizontal "pegs" on the chart bar. If the close rate is higher than the open rate, the rate is definitely trending up. If on the other hand the open rate is higher than the close rate the rate is trending down.

You should note the areas where the chart hits a low for a number of times, but it doesn't drop below a certain rate. These are important places of support where the market forces prevent the rate from plunging.

You should also locate places in the chart where there are several highs in the same range. These places indicate resistance.

You should note that both support and resistance can easily break when there is some external factor such as negative or positive news.

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Order Flow Analysis and Support and Resistance

It's not unusual to hear novice traders claim that they trade support and resistance. To be sure, it's not unusual to hear just about any trader claim that they trade support and resistance (SAR). So I suppose we can take it for granted that just about everyone is trading SAR and accept that fact at face value. There is a problem with that statement though, if everyone were trading SAR, which is among the most effective e-mini trading strategies, how come we are still faced with an absolutely outrageous failure rate among traders?

As you might expect, I am a dyed in the wool support and resistance trader and it is very effective for me. Of course I am, since we decided in the 1st paragraph that everyone traded SAR. There is however, the matter of trading methodology as it relates to support/resistance and knowing when price action is going to move through our carefully plotted lines and when price action is going to a bounce off our carefully plotted lines. I often ask people how they decide which position to take when price action approaches SAR. As you might expect this is where the conversation gets a bit muddled and I get to listen to a wide variety of far-fetched trading methods, many of which I've not heard of, while each trader swears that their particular method is the one and only way to approach SAR trading.

At this point, I want to say that if your style of trading is working well than ignore anything that I might have to say. On the other hand, a quick perusal of tradingschools.org shows 70 or so trading room reviews and there are only 2 or 3 public traders that can actually verify their trading results. Most well-known traders' skills are strictly word-of-mouth or inflated earnings claims plastered across their website. And guess what, they all trade support and resistance. Yikes!

What is the best way to trade SAR? Since e-mini trading is a zero-sum game it stands to reason that increased volume at SAR will cause a reversal at that point as traders move from long positions to short positions or short positions too long positions. On the other hand, if volume stays low there is a high probability that the price action will continue through your price level to higher or lower SAR levels.

In essence, to trade it SAR effectively you need to understand volume as something more than a panel on your trading chart that has varying levels of contract buy/sell orders. That's where order flow analysis is awfully handy. I can watch, contract by contract, both sides of the contract fill up with orders. If price action is going to break through our price level most of the orders will pile up on the buy side, if you are trading resistance. (The exact opposite is true if you are trading support) I can also watch the volume rise on an ordinary volume chart. An ordinary volume chart works quite well, but watching each individual contract and the manner in which they stack up on either the bid/ask side (as is the case with order flow analysis) is far more accurate and resonates with my trading style at more comprehensive level. Said simply, it just makes more sense to me.

This is a frustrating article to write because I feel like I could go on for 40 or more pages and not repeat myself. My hope is that I have paid your interest and you will investigate the relationship between order flow analysis, volume, and price. It's an investment that will pay great dividends.

Article Source: Here

Binary Options Trading With Support and Resistance Levels

Trading with support and resistance levels refer to price level on charts. These levels usually act as barriers and prevent the price of an underlying asset that is traded to be pushed in a certain direction.

You may be able to see them directly on the charts and this can help you place stop loss or book profits or see the movement of the market easily.

After the market hits a support or resistance level, three things are most likely to happen and these include a change in the direction of the market, stall or retrace.

When you know how to draw these levels, you may be able to make changes to your trading strategy easily. You can make use of the information to decide when to trade, when to move a stop loss or close a trade.

Learn support and resistance levels

Although most traders think it is difficult to draw support and resistance levels, you may be surprised to know that it is actually quite easy and you may be able it learn perfectly after a few practice sessions.

One thing that you need to remember is that you should avoid drawing too many levels on the charts. You may make the entire process of reading a chart complicated when you draw too many levels.

When you learn how to draw support and resistance levels in real time charts, you may be able to plan for the day or week easily. This can help you take important investment decisions in such a way that you may be able to maximize your profits and minimize your risks.

Basic concepts of support and resistance levels

• Remember that is not necessary to draw every level that you find on the charts. Most traders tend to draw at every price level and this can take a lot of time and effort. It is advisable to draw only the significant levels on the chart instead of messing up the entire chart.


• The other thing that you need to remember is that you do not have to draw the level exactly at the high or low of the bar.


• It is also not necessary that you really go back in time to draw these levels on the chart. It is best to focus on a three-month period and draw the support and resistance levels instead of trying to go back several months.


• You may be able to determine the best time to enter and exit the market when you make use of technical analysis for trading.


• This can help you minimize the risks of trading and you may be able to make regular returns on your investments.

Trading with support and resistance levels can help identify price reversals in the binary options market before you place a trade.

Article Source: Here

Trader's Guide to Become Professional at Trading

Principles are known to be moral guidelines in doing better and being better no matter what aspect of life it maybe, principles as a mother, as a teacher, a writer, an artist or whatever your daily pursuits are. We can consider it as our personalized manual for living in harmony and abundance. And, being an elite trader is no different. As traders, we need to establish principles that enable us to competently move in the trading business considering different kinds of market vehicles like equities, Forex, options, commodities and market futures. Here are 8 principles gathered through experiences and multiple readings that you'll need to be ahead of the game:

1. Trading needs mental preparation

Being mentally prepared is tricky. Before starting the day, a good whiff of how you want your day to go is helpful. Envision yourself trailing along with the market trends, liquidating daily profits and coping with losses at ease. Data collection, pattern recognition, risk management plan and noting reward opportunities through detailed research, are the essentials.

2. Price Discounts Everything

As a theory this will help you understand the essence of technical analysis. This assumes that the market price "factors in" all fundamental information of a market's value. Not just that but elements like politics, market behavior, the weather, or other external factors can and will be affecting the market price. Only by putting this theory to principle can you be superior in the trading system with the use of the gathered information on what makes markets move and the drivers of stock price performance.

3. Trade trending markets

To stay in an advantageous point in the Forex and stock market, it is favorable to only trade trending markets. This is the simplest way to identify strategy imperfections in order to come up with a close to foolproof trading plan. Following what has been rising steadily or falling can give you total confidence that you are investing your money in a trending market with an expectation that the trend will continue. Trading trends are definitely a vital building block of a well-made trading plan.

4. History repeats itself

Another principle that is well known to every effective trader is that patterns and reactions tend to repeat itself. As John Murphy has voiced "The key to understanding the future lies in a study of the past." A historical study of the stock market, catching sight of familiar patterns can provide profitable trading signals. Though technically history on repeat isn't absolute, trading is definitely a deterministic system whereby no randomness is involved.

5. Buy fundamentally sound companies

To aggressively ride the market rally, recognizing fundamentally sound companies is of importance. Solely basing your moves on technicalities with price trends is such a dangerous foundation. Fundamental and technical analysis can work in conformity in spotting the best possible money maker.

6. Losses are part of trading

They said there is a big difference in losing and being defeated. As with everything else in life losing will always be a part of trading but you should be in control on how you manage your risk. Conquering emotional and mental residue is the only way you can reflect and learn to turn this into a factor that would lead you to earning back the loss and then some.

7. Success in Trading is the by-product of consistency

Discipline is one of the clichés of trading that some might brush off, but this just might be the only thing that can lead you to the top of your game as a trader. Working with consistency despite gains and losses through the trading process provides you the keystone of veering you away from unimportant factors that might be detrimental to your progress.

8. Your primary objective is capital preservation

Capital preservation is the vital action plan for protecting your financial assets in insuring the return of principal. This is the conscious attempt to avoid significant loss of value through low risk investments and perfectly honed risk managing.

Article Source:Here

Which Is the Best Binary Options Broker of Them All?

The Best Binary Options Trading Websites

When you commence trading on all these thrilling options, it will be necessary to choose a broker who will provide you with a fast and simple way to trade. The top brokerage firms specialise in different areas, which could include having one of either a big or small selection of trading options. Any broker worth talking about out there should include the following basic options:

• Analysis of price movements in the market

• A Choice of Stocks, Commodities, Forex and Indices

• Signals Tools

• Memberships that fit in with your trading requirements

Reputable online brokers are also known to offer an archive of study materials including ebooks and videos. Though it can be helpful to have a wealth of educational sources to get stuck into it is not the sign of a better broker.

Please consider that binary options are not like trading on the stock market. In the binary market traders are not buying any assets, but instead predicting asset prices. This is why this strategy is so popular.

Investigating which is the best binary options broker for you is a must so if a broker seems to be unnecessarily complicated or tells you to study charts and graphs for hours on end before you start then take a look at a different one that's simpler to get going with!

Choose The Best Broker for You

Because you can find a plethora of binary options brokers online, it can be difficult to find one to suit your budget and experience level. To aid you, browse through a few reviews of some of the standout trading setups in the industry, including some of the features that each one offers. We consider this to be vital to your comprehension of what separates the best binary options brokers from the worst so that you can be more confident before you begin to invest your own hard earned money.

Every broker offers various assets. Make sure that you work with an asset that you are both knowledgeable of and confident enough to predict the price fluctuations. Having lots of assets is a not a bad thing, but if you are going to only trade on a small number of assets it's not important if the broker has a thousand others listed on their site.

Below are a few additional useful points that you should think about when you are considering which is the best binary options broker:

• Withdrawal Speeds - even if you are racking up a huge portfolio of great investments, if you can't access your returns - what is it all in aid of?

• Stable Interface - with no spreads and no time delay. Watch out for brokers that are fixing the price feed in their favour - they do exist. so be wary.

• Customer Service - must always be readily available during trading times.

These are three of the most important factors that help outline the best binary options brokers. Only brokers that stick to all of these requirements should be taken into consideration. As well as looking into our own experiences, these are also the opinions of professional traders.

Yet when all is thought through, be reminded of the following: we have yet to come across a method of trading that has a 100% success rate, so be prepared for the fact that you will not achieve a return on every one of your trades; you should try to spread your chances so that you have more winning than losing ones.

Binary options trading is a game of probabilities, which means that you need to balance the risk and try to keep the odds in your favour.

Ensure that you have researched your asset and how you are going to play out your game plan and you will see good results. Be sure to test out your method to understand whether you have prepared enough- only then should you start trading binary options with real money.

Article Source:Here

Trader's Guide to Become Professional at Trading

Principles are known to be moral guidelines in doing better and being better no matter what aspect of life it maybe, principles as a mother, as a teacher, a writer, an artist or whatever your daily pursuits are. We can consider it as our personalized manual for living in harmony and abundance. And, being an elite trader is no different. As traders, we need to establish principles that enable us to competently move in the trading business considering different kinds of market vehicles like equities, Forex, options, commodities and market futures. Here are 8 principles gathered through experiences and multiple readings that you'll need to be ahead of the game:

1. Trading needs mental preparation

Being mentally prepared is tricky. Before starting the day, a good whiff of how you want your day to go is helpful. Envision yourself trailing along with the market trends, liquidating daily profits and coping with losses at ease. Data collection, pattern recognition, risk management plan and noting reward opportunities through detailed research, are the essentials.

2. Price Discounts Everything

As a theory this will help you understand the essence of technical analysis. This assumes that the market price "factors in" all fundamental information of a market's value. Not just that but elements like politics, market behavior, the weather, or other external factors can and will be affecting the market price. Only by putting this theory to principle can you be superior in the trading system with the use of the gathered information on what makes markets move and the drivers of stock price performance.

3. Trade trending markets

To stay in an advantageous point in the Forex and stock market, it is favorable to only trade trending markets. This is the simplest way to identify strategy imperfections in order to come up with a close to foolproof trading plan. Following what has been rising steadily or falling can give you total confidence that you are investing your money in a trending market with an expectation that the trend will continue. Trading trends are definitely a vital building block of a well-made trading plan.

4. History repeats itself

Another principle that is well known to every effective trader is that patterns and reactions tend to repeat itself. As John Murphy has voiced "The key to understanding the future lies in a study of the past." A historical study of the stock market, catching sight of familiar patterns can provide profitable trading signals. Though technically history on repeat isn't absolute, trading is definitely a deterministic system whereby no randomness is involved.

5. Buy fundamentally sound companies

To aggressively ride the market rally, recognizing fundamentally sound companies is of importance. Solely basing your moves on technicalities with price trends is such a dangerous foundation. Fundamental and technical analysis can work in conformity in spotting the best possible money maker.

6. Losses are part of trading

They said there is a big difference in losing and being defeated. As with everything else in life losing will always be a part of trading but you should be in control on how you manage your risk. Conquering emotional and mental residue is the only way you can reflect and learn to turn this into a factor that would lead you to earning back the loss and then some.

7. Success in Trading is the by-product of consistency

Discipline is one of the clichés of trading that some might brush off, but this just might be the only thing that can lead you to the top of your game as a trader. Working with consistency despite gains and losses through the trading process provides you the keystone of veering you away from unimportant factors that might be detrimental to your progress.

8. Your primary objective is capital preservation

Capital preservation is the vital action plan for protecting your financial assets in insuring the return of principal. This is the conscious attempt to avoid significant loss of value through low risk investments and perfectly honed risk managing.

Article Source: Here

Bollinger Bands: Using Volatility As a Technical Indicator

Day traders use Bollinger Bands® as a technical indicator to display a chart reading of volatility by how tight they are around a financial instrument. The degree of tightening or widening them surrounding the price action of a financial instrument determines the level of volatility. Chart facing, a 21-day moving average (preferred period of time) is surrounded by an upper and lower Bollinger Band®. They are meant to serve as a technical indicator of overbought (wide bands) and oversold (tight bands) market conditions.

How Are Bollinger Bands® Read?

Looking at financial instrument charting software with 'tight' Bollinger Bands® applied to the price action, a significant move to the up or down side may occur soon. However, if a financial instrument chart has 'wide' bands applied to price action, this may signal a significant move is not likely to occur in the not too distant future. Tight and wide, they can also be used as a counter technical indicator of both potential low and high volatility in that present price action is used to predict a different, future market move.

With the above said, the best conditions for the indicator's use are periods of low volatility with scant price fluctuation. The more time passed in a low volatility environment, the more they will tighten around a financial instrument's price action. When tightening more than usual, the bands may be signaling an increase in future volatility.

How Can Bollinger Bands® Be Used?

When analyzing Bollinger Bands® with the intention of day trading online, do not rush to make a decision if price action breaches the top or bottom band, as this is not always an indication of an immediate market move. That said, though most price action movement occurs within the indicator, a breach of an outer band is a rare occurrence indeed, but cannot be relied on to be a guaranteed buy/sell signal. In addition, though widely used, Bollinger Bands® are actually meant to be used in tandem with two or more other technical indicators such as Relative Strength Index (RSI) and MACD.

It is important to note, before day trading based on a signal derived from Bollinger Bands® and two other indicators, backtesting historical market trends with all of these indicators is strongly suggested. Backtesting these indicators against the historical market trend you are focusing on will provide an idea of how your strategy would have performed in historical market conditions.

Article Source: Here