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Sunday, April 19, 2009

Stock Market Education-Learn support and resistance

By FOREXREPORT

The supporting reason to buy that you can't resist. When you are a trader the two basic patterns to all trading is support and resistance. You may hear and read a lot about these strategies. So what do they really mean, and can I make money from this knowledge.

How can you resist it:

In theory resistance means selling is sufficient enough in volume to stop the price of the stock or currency from moving high. Meaning it has hit a ceiling.

Resistance is what is found at the peak of the upward trend. This is when the selling takes over to cause a counter trend. It may also mean that a stock starts to trade within a particular partner. Stocks and currencies can then encounter major problems trying to break through these levels. So make sure that you have tight stop losses or guaranteed stop losses if you current broker doesn't offer them change them, here is who we suggest BEST BROKERor email support@cfdfxreport.com

The supporting argument:

Support is therefore the opposing concept of what resistance is, where there is sufficient volume to stop prices of the stock or currency falling. You'll often see prices bounce from important support levels. This is why you will see a lot of traders looking for the support and resistance so they can trade the breakouts.

How can I can find out where the support and resistance is. Well something very important to consider when you are looking to evaluate where the support or resistance line is how often a share price has been rejected at that line. The more often the trend has been reversed the more powerful the level of support or resistance. It then becomes much harder for that stock to be able to break through these, if the do it can be then a great break out trade.

Markets don't tend to forget too quickly, so these levels come into play quiet a lot. This is why having a great BEST BROKER is very important.

So if you see a support or resistance line occurs straight away after a steep price movement it is likely that this level will be a reliable level of support or resistance. The stock or currency price will simply not have the force to able to break through this level following a sharp upward movement or downward spiral.

Make sure that you are always looking at the volume at the support and resistance lines as this is also very important. For example if they fail to break through these lines on strong volume the stronger these lines become. So they may not break these lines.

Make sure that you learn where the support and resistance lines are as it may just save or make you a lot of money. Sometimes you maybe better off waiting for these to be broken, and they can then be a great spot to put your stop loss.

Happy Trading. - 23200

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Investing In Rare Gold Coins

By Steve Johnes

There are various reasons why an individual would decide to begin acquiring gold coins. An explanation is they are seen as smart investments because their worth can be increased, so individuals are more inclined to acquire them. Even today you will discover that there is an exceedingly high demand for people who collect coins to acquire those that are uncommon.

Certainly which ever reason a person selects for buying gold coins they know that is one of the safest ways for them to invest any surplus money they have. Plainly due to the fact that they comprehend that over time these coins are unlikely to depreciate in worth but instead are more likely to appreciate.

When deciding to acquire coins, the first task should be to locate an honest and trusted coin dealer. If you can choose one who is a member of the Numismatic Guaranty Corporation or the Professional Coin Grading Service Regrettably if you decide to use a dealer who is not a member of these professional bodies then you are risking losing your money as they will often sell you coins which are in fact phonys.

Once you have found a trusted dealer, you can make a decision regarding the amount of gold that you want to acquire. Because the cost of gold fluctuates so frequently, it is best to know how much you can to spend.

You need to be conscious how much money you can afford to invest in gold coins, you also need to recognize which coins are the best investment. Presently gold coins fall into three assorted categories. Regular gold bullion coins are collectible and are classified as uncommon.

Gold bullion "coins" are really valued based on the amount of precious metal in them. The value of rare and collectible coins changes quite often, so when placing a value on them, several aspects need to be taken into consideration. The cost that one receives for rare coins will be settled mostly by three facets.

Comprehension of the grading and rating process for gold coins is important and helpful if you are planning on buying coins for investment. This will assist you when attempting to comprehend the coin marketplace and to know when bargains arise. - 23200

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Silver Peace Dollar Coin - A Silver Showcase For Liberty

By Christina Goldman

It will warm the heart of the numismatic community or those devotees of the study or collection of currency to know that the Silver Peace Dollar Coin issuance was inspired by their interesting and widespread hobby.The Peace Dollar was minted by the The U.S. Mint during a seven-year period, from 1921-1928. This popular silver dollar coin was also produced in another two-year period, from 1934-1935.

Its inspiration originally came from a November 1918 article in The Numismatist, the official publication of the American Numismatic Association (ANA), which suggested the minting of a coin to mark the end of World War I and the triumph of democratic ideals.

This suggestion was further expounded at the ANA convention in Chicago in August 1920. It called for either a half-dollar or a dollar commemorative coin to provide ample space for a design showcasing liberty, prosperity, honor and democracy. US Treasury authorities, however, went a step further and issued the silver as a coin for general-public circulation.

The Silver Peace Dollar coin succeeded the Morgan dollar which was minted last in 1904. The Pittmann Act sponsored by Nevada Senator Key Pittmann enabled the minting of the Silver Peace Dollar, as this federal law authorized US sale of standard silver bullions the proceeds of which will used for minting new silver dollars.

The Peace Dollars designer was Anthony de Francisci who prominently rendered the word "PEACE" at the bottom of coins reverse side. The silver content of this coin is 0.77344, and it is the last silver dollar that was minted for US circulation.

There was brief minting of the Silver Peace Dollar coin in 1965 with the coins bearing the year 1964. For one reason or another, however, these coins were neither circulated to the public nor any of their examples released. The whole 1965 mintage was melted, perhaps along with the hopes of some avid numismatist and Peace coin collectors. - 23200

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Managing Risks in Investments

By Mara Hernandez-Capili

It is true that investments carry different risks. Risks are completely unavoidable and could get the best out of any investor (especially the beginners) if not managed and handled properly. Risks should not be feared rather it should be faced with a knowing attitude and courage. Risks should not stop anyone from investing and ultimately- for achieving financial freedom.

Trading Stocks involves risks on different facors. There is no guarantee if you will have a capital gain since the market is always fluctuating. The larger the amount you traded, the higher the risks of losing that investment. That is the reason why most people do not trade huge stocks when theyre just beginning and opt for smaller/ cheaper ones.

There are known ways on how to manage risks in investments, and those we will enumerate now. First is to find an investment portfolio with a value you are comfortable with. The reason behind is so that if ever this investment failed, you will never be left in despair. Also, do not put all your eggs in one basket, as you have the chances of losing all of it. It is unwise either to invest small amounts on many investment vehicles, because small amounts are equal to little gains. Try to focus your investments to a minimum, putting an ample amount of value in it. In this way, you can enjoy valuable capital gains once it became agreeable.

Starting to invest in your early years is also a way to manage risks. This way, you can have a lot of time to recover from your losses if ever there are any. Never wait until you are very old to invest and putting all of your lifes savings at that as well, you may predict what may happen. There are special cases though of people who started investing (or putting up a business) who succeeded like Col. Sanders, founder of Kentucky Fried Chicken.

The abovementioned just some of the ways on how to manage risks. Remember that a risk is worth taking if you have a dream that goes with it. - 23200

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Understanding Forex Scalping

By James Stiller

If you know much about currency trading, you've probably heard about Forex scalping. Unlike long term investors, Forex scalpers try to profit by rapid deals. They have a different set of skills and attitudes than most standard investors, but above all they must have well-developed self discipline.

Above all, Forex scallpers must not make a deal simply for the sake of making a deal -- a standard pitfall for less disciplined traders. Successful scalpers must wait to be sure a trading situation is ripe for profit. Before any trader becomes involved with the scalping side of Forex trading, they must understand one thing.

The market is usually in a consolidation mode about 60-80% of the time. This is when no changes take place. Hours could go by, before a move is made. A forex scalper, who is well versed will know that this is the right time for business to take place.

Successful Forex traders must be able to spot developing trends in currency markets. Beyond that basic skill, scalpers must recognize key support and resistance levels which ultimately determine currency highs and lows.

Scalpers often use the popular Moving Average Convergence Divergence (MACD) forex to track trading indicators, though they may use customized parameters rather than the standard ones.

By paying attention to the movement of the market and the trading indicators, forex scalpers will know when to have a long entry order and when to have a short entry order. It's also important to look for a wide pip range that is about 20-40 pips, and of course buy low and sell high.

Forex scalping isn't for everyone, though all currency traders must have some of the scalpers' philosophy in tool bag to optimize their trading day.

Traders who are familiar with these strategies so will be able to maximize their profits. - 23200

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