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Thursday, July 23, 2009

Learn Technical Analysis Starting With The Ascending Continuation Triangle

By Chris Blanchet

Although we have already looked at a Classic Pattern in the Learn Technical Analysis Free series, another important pattern to understand early on is the Ascending Continuation Triangle. This pattern is formed by two converging trendlines -- a horizontal upper line that scrapes along two steady "highs" of a trading range and an increasing lower line that follows two higher lows of the same range.

Investors who want to learn technical analysis are wise to understand the Ascending Continuation Triangle as it is normally a short-term pattern that takes form over one to three months. This allows for quick gains if the pattern is accurate and minimal losses if it is false.

For investors who are just starting to learn technical analysis, remaining patient as the pattern takes shape is often more difficult than spotting the pattern itself. To confirm the pattern, here are a few things one should look for.

Volume

This is by far way more important than any other fact. As the price swings back and forth during its rallies, volume should diminish. When the pattern is confirmed, volume should spike (or be above the average while the pattern took shape). Alternately, if there is no spike at breakout, then it is more likely that this pattern is less reliable.

Moving Average

If the pattern's prices come close to or touch the 200-day Moving Average, the pattern is stronger and investors should consider it more reliable than if the prices were not close.

Duration

Duration also needs to considered, something many investors who have just started to learn technical analysis tend to forget. Break-out will happen when the price penetrates the upper horizontal line (e.g. the resistance line), but this occurrence should happen long before the pattern reaches the apex, or right-side tip of the triangle. Generally speaking, this break-out should occur between three-quarters to two-thirds of the way along upper line.

In terms of explaining, in fundamental terms, how the Ascending Continuation Pattern evolves, consider a large institutional investor who wants to unload a large quantity of stock at a certain price. The order is placed. Once that price is reached, buyers will draw on the large supply and consequently, for other sellers to fill their orders, the price will need to drop. This will create a resistance line. However, once that large supply of stock is exhausted, the price will continue to climb as it normally would, providing the breakout that investors who want to learn technical analysis are waiting to see. - 23200

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Types of Stop Loss Orders

By Ahmad Hassam

If a trader is to maintain a degree of profitability over time, managing risk and using systems that helps evaluate price changes is critical. You should understand how to select stop orders to limit your potential losses and how to let profits ride.

The descriptions of the types of stops and the pros and cons of each should help you make the right decisions for the different market conditions. Capturing as much profit as possible from winning trades should be your utmost goal. Managing risk should be your number one job.

You should know the various types of stop loss orders and where and when to place them. Predetermined stop loss orders help you conquer your emotions. Stops should be part of the trading system and included in your trading rules.

Stop orders can be placed close to the entry level when volatility is low. However, when the volatility is high, stop orders should be placed further from the entry level. Set a stop objective. Weigh the risk/reward ratio before entering each trade.

When entering a trade make sure you know where and why to put the stop order. Initially you will form an opinion based on your gut feelings that is substantiated by a trade signal.

However, you will undoubtedly get caught in the news driven price shock events. It makes the markets highly unpredictable in the short run. These news releases create price spikes that may make an adverse move against your position.

Stop orders are placed to protect against losses. These orders can also be placed to enter positions. Stop orders that you place online if the market trades at a certain price, then the order is triggered and become a market order to be filled in by the next best price available.

Sell stops are placed below the current market price. Buy stops are placed above the current market price. Protective stops are used to offset a position and to protect against losses and against accrued profits.

Stops can be placed on a dollar amount per position. If you want to risk only $250 per $100,000 standard lot position then your stop loss will be placed 25 pips from your entry point. You can set a daily dollar amount on the loss limit.

Traders use 2-5% of the overall account size as their stop loss. If your trading account size is $10,000, this comes out to be $200-$500. You can also use a certain percent of your overall account size as your stop loss.

Swing traders can use the automatic trailing stop. Many traders tend to turn winners into losers as they get in the let it ride mindset. The trailing stop reduces the chance to let trades ride. This makes the decision making process fully automated. - 23200

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Five Basic Tips On How A Penny Stock Listing Make You Rich

By Malcolm Torren

There are stock market sites and blogs that tell you how you can earn from just a small cap investment. Of course, anyone who wants to get rich would understandably jump at the opportunity. But getting rich is not a quick scheme and no get-rich-quick books will tell you that it happens overnight. It does not happen overnight. Even if you think you have the most reliable penny stock listing in the world, it still does not guarantee financial wealth.

Luck doesn't have anything to do with getting rich. It's all hard work. There are even people who life a low profile lifestyle but have fat bank accounts. Then there those who claim that they got rich because they have a dependable penny stock listing and they want you to try it.

Be cautious of this hype. Today there are so many opportunists who would do anything to get a piece of your savings. The penny stock market is one of the attractive avenues for them. If you want to get rich from your penny shares, follow these tips:

- Do not overspend. Always keep in mind that the general rule of thumb is always to buy shares at low price. When the value appreciates and when the time is right, sell it. But do not use up too much of your savings. Just allocate portion of it. A safe margin would ten percent. And spend only for the list that you personally picked and not from those who suggested it to you.

- Learn the terms, the language, the slang, and the major concepts. Any penny stock listing is useless if you don't know how to translate them. And to do that, you have to understand the back and front ends. Along that path you will be encountering so many stock market terms that may be alien to you. Terms like the PE ratio, ticker signs, liquidity, etc. Understand them and learn them by heart.

- Commit your investment money reasonably. Your stock list is supposed to showcase the hot stocks to bid. However, the list can change overnight. What is hot today may not be hot tomorrow and that happens all the time. Always double check on which penny stock you think is most likely to expect profit for you.

- Learn about the trade continually. Your penny stock listing cannot exist alone. It needs partners. Because in this business, the survivors are not the rich, the smart, and the strong. The successful investors are those who keep track of constant changes. These are the stock market trends.

If you read between the lines, these tips only mean one thing. That what makes you rich is not because you have a penny stock listing that guarantees success. What success means is dependent on how much work you are willing to put in your business. The ingredients to success are knowledge, rational analysis, and a roster of facts. If you want to be rich is really all up to you. - 23200

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Forex Trading - The Ultimate Course

By James Taylor

When new to FOREX trading? Do not worry, the first steps in Forex trading is easy and you can always test your skills first in a demo account before you "live" with real money. In order to FOREX trading, we have to know what FOREX is. For the inexperienced, FOREX trading of buying and selling of various currencies in the world.

FOREX is a treatment, if you buy one currency and selling another at the same time. It 'always traded in pairs, EUR / USD, CHF / USD, USD / JPY ... is "short" in one currency for the purchase, each time with another, and the benefit is when you buy low and sell high.

Be on the FOREX market

FOREX market is the largest trading partner in the world. There is an average turnover of $ 1.9 trillion per day and the number is almost 30 times greater than the volume of shares trading in the United States. FOREX trading is very unique, because the transactions are between two partners over electronic network or telephone connections.

There is no central place, such as stocks or futures markets to trade and the clock. Each day begins trading currencies, if the financial centers in Sydney start the day, and travel all over the world to Tokyo, London and New York. Retailers in the month of May, at any time on the market, regardless of local time.

Although the forex trading with such a large volume of trading today, it is not for the public until 1998. In the past, the FOREX market is not offered to small speculators or individual traders on the large minimum business sizes and extremely strict financial requirements.

At that time, only banks and large multi-national cooperation and currency dealers were able to take advantage of the currency exchange market, extraordinary liquidity and strong trend in the nature of the world, the most major exchange rates.

Only until the late 90s, FOREX brokers should break big giant inter-bank units into smaller units and offer these units to individual traders like you and me. Today, with the rapid growth of Internet and communication technologies, currency trading has become one of the hottest make-money-at-home for companies that wish to avoid the traditional 9-5 job.

In fact, forex trading, Forex trading is mainly in the large international banks. According to the Wall Street Journal Europe, 73% of the volume is the great ten. Deutsche Bank, at the top of the table, was 17% of all currency, followed by UBS in the second and third Citi Group, 12.5% and 7.5% of the market.

Other major financial cooperation in the list is HSBC, Barclays, Merrill Lynch, JP Morgan Chase, Coldman Sachs, ABN Amro and Morgan Stanley. By market segment, about half of the transactions between the operators strictly (eg, banking, foreign exchange dealers or large), others are primarily between merchants and financial institutions.

Why FOREX is popular?

There are several reasons why FOREX is the most popular investment between the world of speculators.

In FOREX trading, you can always for your own advantage. The FOREX market has an amazing transformation since the advent of the Internet. Technology now has the opportunity for smaller investors to play on the same level as major companies and banks.

Who with a computer and a will to succeed can trade currencies in the privacy of your home or office. Forex online is the way investors should conduct their activities. With access to your portfolio 24-hours a day, it is quite easy to start. You can choose whether to recruit a professional for your company, or you can choose to do so themselves.

Forex trading also provides a relatively high leverage to traders. FOREX dealers, the company with a maximum of 200 to 1 leverage rates. With this advantage, the return on investment is increased dramatically and traders can always start with little capital with as little as $ 1,000.

Getting Started in Forex Trading

You do not need much to work with Forex trading. A computer with Internet access, a fund account with a FOREX broker change, and a trading system should be sufficient to start the ball rolling.

To reduce the risk of losing money, some basic knowledge of scales is also recommended before you start trading FOREX. Forex charts assist the investor by providing a visual representation of fluctuations in exchange rates. Many variables affect the rate, as interest rates, bank policies, geopolitics, and even the time of day can affect the exchange rate.

As pointed out by experts FOREX trader Peter Bain, graphics is an important tool in forex trading. In his newsletter, he reveals that the daily charts, hourly charts, 15-minute cards are used, while trading Forex. As stated in its newsletter - "Daily chart will help you understand the general trend from a commercial point of view, and the hourly rate (one hour) chart will give you an idea of the intraday trend. The 15 minute for the graph is the entry and exit - with the help of the table for five minutes, if the price moves quickly, and you are closer to the action. "

As a technical method, FOREX charts based on the principle that "history repeats itself." FOREX traders who study charts predict the market by an assessment of past, future market development. The time frame for the charts may be for different traders, some analyze the past, a week, some prefer six months analysis, and there are also traders who analyze the market for the last five to ten years before, in a FOREX trading .

A huge variety of FOREX charts are available on the market. Some charting methods are very simple, with a few FOREX indicators to show the direction of trade, other graphics can be up to forty indicators and those are mainly for advance traders, the more skillfully. MACD Divergence, RSI, RSI range, and the price are some of the known indicators in the charts.

Choose the right FX dealer is a way to avoid unnecessary risks. Forex dealers are not all regulated the same way. Although foreign exchange dealers must be regulated by law, companies and individuals can solicit retail dealers in foreign exchange and manage those accounts, without regulation. As a reseller, you must take the responsibility to determine if your foreign exchange dealers are regulated. If not, you May be exposed to additional risk.

Also beware of dealers with plants, which seems too good to be true. Price warns dealers that you have, and still in the investment. If you are the United States, you can always CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for more information.

Conclusions

They are without doubt in this article because you are new to FOREX and were looking for some readings on the internet. To be honest, FOREX can be very profitable, but the risk lies beneath is equally great. Do not trade with the right strategy and investment plan.

Read books, courses, video seminars, read newspapers, or even practice first with a distributor of the demo account for you. Trade smart, and the maximum from FOREX - good luck! - 23200

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Chicago Multi Family Real Estate

By Craign Pietramale

Investors interested in earning above average rates of return on their money are turning increasingly to undervalued chicago multi family real estate for an answer to their investing challenges.

Once high flying stock market returns and super secure CD investments have lost their appeal to many investors. The stock market has become too uncertain and the CD rates barely keep up with inflation.

Chicago multi family real estate can be a good answer to the challenge of finding a safe and secure investment with large upside potential and lower than average risk.

Real estate investments that would be considered Chicago multi family real estate comprise:

1. Apartment complexes

2. Other multi-family structures like duplexes and triplexes.

3. Condominium projects

Due diligence is key when it comes to investing in Chicago multi family real estate, so before you jump in, be sure to check with a real estate investor experienced in buying and managing multi family properties. Brokers are also good resources to consult with.

After you complete your due diligence, run your numbers and inspect the property, it's time to negotiate price and terms.

In Chicago, one great resource is Chicago Multi Family Real Estate. The site has extensive resources and information for anyone interested in getting involved with Chicago multi family real estate deals. - 23200

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