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Monday, April 6, 2009

Stock Trading and the Importance of Following Rules

By Jim Fredrickson

Following the rules is not something that comes naturally to everyone that finds themselves trading in the different markets of the world. As you can imagine, this is something that will affect anyone's trading. If you want to be a good trader you must be prepared to go through quite the learning curve.

To be able to function well in the stock market, you must acquire strategies that can fulfill all your desires and needs. In attaining success, you also need to consider other people or investors. In this article, you will learn more about stock trading and fundamental analysis.

Know that in the markets you are not alone. In a sense many people are working together, buying and selling from each other, but in all reality you are on your own. No one cares about your pocket book the way you do. Be independent.

Know that you will never be able to control or move the markets according to your will. You may feel as if you are in control of many parts of your day to day life, but that will hardly be the case with stock trading. The only way that you will be able to control what you are able to take from the market is by being wise in the decisions that you make as a trader.

Although you cannot control the markets every move, you can always control yourself. Be your own master. Every piece of information needs to be accounted for when making decisions on what you will do. Learn to create rules for yourself, and never vary from what you have come up with.

Stock and commodity traders alike will often venture away from their very own rules chasing after a pot of gold. Make sure to never be that person. It is natural for us to want to do that, and the freedom that you can experience as a trader, along with the occasional rush, don't help at all. Again, set rules before any trade you enter and make sure that you have a good exit strategy.

Are you familiar with any that have had success? If you have, you will certainly know that they are consistent, and level-headed. They follow their plan to a 'T', and make the kind of living that others are envious of. Once you are able to be more like them you can surely reach the same levels of limitless income.

People who resist rules all their lives will surely find it hard to follow trading rules and guidelines. They are those who often fail and lose huge money in stock trading. Take your time and know more about stock trading.

If you are new to the game make sure you learn the basics first. Their are endless annals wherever you go that will teach you various technical trading strategies and other things pertaining to the stock market. If one man can do it, so can another. Start now by learning these things, and remember to always follow your rules. - 23200

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Transform Your Debt With A 1031 Tax Exchange

By Kevin Y. Delno

We all know that the 1031 Exchange is used for transferring equity from an old property to a replacement property. What is not customarily known is that you can use some of the equity from your property through proper refinancing. You can use pre-exchange refinancing or post-exchange refinancing.

1031 rationale requires all of the proceeds from the sale to pass to the Qualified Intermediary. This prevents you from receiving any cash benefit from the sale. There may be times, however, when you would like to use some of your equity for your own entertainment or investments. If you decide to refinance your property shortly before the 1031 exchange and use that equity for your own entertainment, you may run afoul of the IRS.

We have tax case IRS versus Garcia which tells us that the refinance must be done well prior to the 1031 Exchange. Garcia tried to avoid taxes and ran afoul of the 1031 rationale and the IRS. He ran into problems because he refinanced just before the 1031 Exchange and tried to take proceeds without paying the taxes. Therefore, you can't take out equity unless you pay taxes on it.

The other way of recovering funds via refinancing is the Post 1031 Exchange Finance on the replacement property. This is a good way for you to take some of that equity out of the replacement property and buy more real estate. There is a question, however, on how long you have to wait before the refinancing after the 1031 Exchange is completed.

Some will tell you that the time required for the finance is but a nanosecond. The nanosecond refinance is waiting just long enough after the 1031 Exchange to show the IRS through the closing statement that you have reinvested all of your equity into the replacement property. In a separate transaction, a new statement is used to show that the replacement property is encumbered with new debt via a loan or mortgage. Then there is cash payment from the lender to you. What we have is essentially a pool of money that you can access after the exchange.

Whether the nanosecond exchange is legal is debatable. There are risks because there is no definitive IRS rule regarding how long you have to keep the equity in the replacement property. The conservative school of thought says to keep the money in the replacement property in order to avoid the Garcia trap. In this case, keep the equity in the replacement property until the following tax year, or until two years have passed from the 1031 exchange to the ultimate refinance. - 23200

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Leading Wallstreet Unfolding Economic Indicators

By Richard Schneebert

Well-timed news from the financial market is essential to wise investment decisions. To get this timely information, the IBD and WSJ are key. You gain an edge when ascertaining reliable metrics along with spot-on insights about market forces and economic trends.

Dominant indicators of the economy change prior to actual economic changes. These indicators are the consumer price index reports, the consumer confidence index, the gross domestic product reports, the retail sales index, the employment cost index, the national association of purchasing management index, the productivity report, the productivity report, the producer price index, employment indicators and durable goods order are the indicators which display how much output a unit of labor creates.

If there aren't any signs of the economy turning around, one of the first telltale signs is the Consumer Confidence Indicator. It is published in the Wall Street Journal and other leading financial papers.

Consumer confidence numbers are part of a particular set of statistics that are known as ''leading indicators''. They can reveal economic trends several weeks before harder objective data makes it apparent.

These consumer confidence figures are gathered from a random sample of consumer interviews. These samples are a representation of the country's population structure as a whole. The data is weighted according to various occupations, regions and income groups.

Many believe that a high consumer confidence is crucial to economic growth. These figures are released on the last Tuesday of the month at 10 am EST. This report measures how confident consumers feel about the state of the economy and their spending spark, or lack thereof.

The leading indicator of the economy is normally the stock market. Historically, the market is in front of the real economy by about half a year.

This being said, even in a downturn, there can be fake out's or dead cat bounces before a market resumes a downward plunge. Or, in a raising market, there can be sudden plunge that leaves a lot of investors scratching their heads as to why the markets behave that way. Financial and psychological damage will leave opportunities to enter markets for those who study the financial news. Get a Wall Street Journal subscription and read about CPI news as it happens. - 23200

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Make Money doing Absolutely Nothing - MetaTrading Hosting with Forex Hoster

By James Smith

MetaTrader hosting reviews are 100% independent and free. They do not charge fees to foreign brokers, users or other VPS service providers. All MetaTrader hosting reviews are written based on the most recent test performance. Forex trading systems and robots work 24hours a day and if there is any interruption this will mean losses. If you are not able to log on to your computer well this will also affect the robot and trading platforms. All these problems can be solved by use of a virtual private server.

Forex hosting reviews like this one will give you an easier time when choosing which MetaTrader hosting service to use. Ez forex host is a MetaTrader hosting service used on your metatrader expert advisor. It is called a VPS because it allows a trader to monitor trades while anywhere. In this article you will learn why many forex traders prefer Ez forex host. This is one of the many forex hosts you can count on.

By using Ez forex host you can rest assured that all your server are running well. You will not have problems with internet connection, interruptions or power shortages.VPS products like this one guarantee continuous trading. This server will keep monitoring all your tradings for 24 hours and will provide 99.99% uptime. MetaTrader hosting reviews also state that with VPS metatrading, your computer does not have to be on the whole time. It allows your trading to continue with your computer off.

MetaTrader hosting reviews state that the first thing to do is registering and getting an account. Then setup an Expert Advisor found in the members area. This Expert Advisor is meant to guide you through all challenges you may face with trading on this forex hoster. This service is popular because it will allow you to trade on many platforms and not only metatrader.

MetaTrader hosting reviews of the advantages of this service are many. Since this virtual private server does not need internet connection. It is a proper hosting service for traders who are worried about computer crashes, slowdowns or malfunctions. You can put off your computer and business will still run as usual.

Other forex hoster reviews state that forex hosting is safe unlike other automated computer. When a virus attacks other computers all its processes are affected. With forex hoster trading activities will not be affected in any case of virus or spyware intrusion. Such safety is worth paying your money to achieve.

With MetaTrader Hosting, you also get full access to the in house Metatrader expert and you have support via email anytime of the day. MetaTrader hosting on its price seem fair because you will pay 35 dollars a month while other VPS servers cost more than 65 dollars a month. You also get to do your own daily backups as often as you want.

Be sure to read MetaTrader hosting reviews before purchasing the software. Recently many customers have lost money due to scams. The proper place to get this system is on the official website. - 23200

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Forex Autopilot And Fibonacci Ratios Get High Probability Success

By Richard U. Olson

Leonardo of Pisa, aka the mathematician "Fibonacci", published his Fibonacci sequence in 1202. Fibonacci came upon his now very famous sequence of numbers when he was trying to breed rabbits and figure out how many pairs of rabbits he would have at the end of one year based upon their breeding behavior. This is just the kind of no-nonsense approach that Forex traders are into.

So you see, what many people mistakenly take as a mere mathematical abstraction, just "fooling around" with numbers, is rooted in very real-world applied mathematics. To state things very basically, the Fibonacci sequence can be used to detect and describe otherwise hidden patterns in the world around us.

How can this be applied to investing? Very astute investors understand that there are hidden patterns in the stock market--based on the mass of investors' behavior. "Buy low and sell high" and "The best time to buy is when there's blood in the streets" are but two investment aphorisms that not only work, but also come from understanding hidden patterns of the investment markets.

The reason that investment market patterns are so well hidden is because "up close" they cannot be seen. Day to day, hour to hour fluctuations in the investment markets cannot be predicted with any accuracy. But certain overall trends that extend over longer periods of time definitely can be. And savvy investors, including Forex traders, have successfully been using Fibonacci's number sequence to take advantage and make big profits.

The Fibonacci sequence is a series of numbers in which each successive number is the sum of the two previous numbers. So it goes 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and into perhaps infinity. There are a number of interrelationships held within these numbers; for instance, any given number is approximately 1.618 times the preceding number, and 1.618 happens to represent the ancient Greeks' "golden ratio"--considered to be the supreme essence of balance (and balance is the ultimate key to successful investing).

Of all the Fibonacci series the two applications in wide spread use by Forex traders and investors are arcs and retracements.

Fibonacci charts are created through a technique comprising three curved lines that are drawn for the purpose of anticipating key resistance and support levels as well as areas of ranging. First, an invisible trendline is drawn between two points (typically these are the high and low for a given time period). Then, three curves are drawn so as to intersect this trendline at the key Fibonacci levels of 38.2%, 50%, and 61.8%. Transaction decisions are made at the point where the price of the asset crosses through these key levels.

In the world of investment, retracement relates to the reversal in movements of the price of a stock. An impressive reversal can counter the prevailing trend in the stock. Successful progressive investors focus strongly on the retracement patterns and possibilities. The Fibonacci method of retracement evaluates the prospects of the price of a financial asset being more superior than is average as well as supporting or resisting at key Fibonacci levels before continuing on its original course. Between the two extreme points a trendline is drawn and then its vertical distance by the ratios of 23.6, 38.2, 50, 61.8, and 100 percent, according to Fibonacci.

Traders use Fibonacci retracements to determine strategic points for placing their transactions, target prices and stop-loss points. There are other tools which use retracement techniques, chief among them Elliott Wave Theory, Gartley patterns and Tirone levels.

The reason that the Fibonacci sequence is used in investing is simple: it works! Forex traders in particular in particular seem to find it useful in making profitable trades. - 23200

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