Winning In The Stock Market

By Sean Phelps

Professional traders kill amateur traders in the stock market with double top and bottom patterns. Do not be another victim. In fact, after reading this article you will be able to get the revenge you deserve.

All stock market rallies reach a point where bulls say, ok, I've made enough, I'm going to sell and take profits. When this happens, charts will top out when not enough new bulls are coming in to offset their profit taking.

Bulls who just bought in are mad as they came in too late. They are trapped. Their position continues to pile on losses. Should they hold on or sell for a loss? Only when enough bulls decide the stock has overreacted on the downside will they come in and buy. The rally will resume to the upside as more bulls rush in to buy on weakness. As prices approach the level of their old top, you can expect sell orders to hit the market.

There are always bruised and beaten warriors who got trapped in the previous sell off and take a blood oath to get out if the market ever gives them another chance.

A mirror image of this situation occurs in the stock market at market bottoms. The market falls to a new low at which enough bears start taking profits by covering shorts and the market rallies. Once that rally stalls out and prices start sinking again, all eyes are on the previous low-will it hold? If bears are stronger than bulls, prices will break below the first low, and the downtrend will continue. If bears are weaker than bulls, the decline will stop near the old low, creating a double bottom. Technical indicators help decipher which of the two is more likely to happen.

Whenever you see a stock climb to its previous high, the first question in your mind should be will the stock climb to a new high or form a double top and head back down. Technical indicators like the RSI, MACD, and volume are very helpful in answering this question.

When a stock rises to its previous peak, a double top is most likely to form when the volume, MACD, RSI, and stochastics are falling.

Whenever a stock falls to its previous low, it is likely a double bottom will form if the volume and MACD start climbing. - 23217

About the Author:

Written by Sean Phelps. I hope this article helps you make a lot of money. For more FREE money making tips go to the most popular stock trading blog on the web by going to stock market

Selecting A Forex Trading System

By Bart Icles

The foreign exchange market grows more and more attractive as each trading passes. Investors are not only attracted by the sizeable profits that it can offer, they also want to know if they can really cope with the changing trends of the market. To achieve a more manageable trading experience, investors - both beginners and seasoned traders alike - use forex trading systems. It can be tricky to select a forex trading system that would best suit your needs so it is important to take note of some basics.

In the forex world, investors cannot simply tell what lies ahead of them and those who do not do something about this end up losing money and they eventually give up on forex trading. However, a wise investor would not totally give up on trading if he or she loses money. Instead, a wise investor would just take a step back and review the situation at hand and then go back to trading again. In a situation such as this, it helps to have a forex trading system that can help you get off on the right foot. Doing so, you will be able to save some money for yourself and hopefully become the next most profitable forex trader.

Different kinds of forex trading systems are available and they are based on the different kinds of traders that exist in the forex world. There are three types of forex traders in the currency market. The short term trader, also known as the scalper, likes to open and close a trade in just a matter of minutes. This type of trader takes advantage of the smaller movements in forex rates and large amounts of leverage. The long term trader looks forward to holding positions for months and months on end, and sometimes even years by making decisions based on long-term factors. In between these two are the medium term traders who hold positions for a couple of days by taking advantage of technical situations that appear to be more opportunistic.

To determine which forex trading system would best work for you, it helps to know what kind of trader you would want to become. Short term traders can lose large amounts of capital in just a matter of minutes but they are also able to realize profits faster. Medium term traders can safely hold their positions but they can easily miss out on big opportunities. Long term investors reap in the largest amounts of profit but they also require large investments to cover losses brought about by unpredictable movements.

In choosing a forex trading system, choose one that can be adjusted to your trading personality and your needs. Do not choose a system based on the needs of other traders because this simply will not help. Choose one that will allow you to be more creative on your side of the market, one that can help you achieve your goals in your forex career. - 23217

About the Author:

A free forex education starts with a desire to learn and a drive to become a great trader. The best forex education takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Tips for Trading Symmetrical Triangles Short with CFDs

By Jeff Cartridge

The symmetrical triangle can be traded on the short side entering the trade as the stock breaks out of the pattern to the downside. The pattern forms when the two boundary lines that contain the price movement converge to a point. The bottom line slopes up toward the top line which slopes down. Both lines have nearly the same slope as each other which is why the pattern is called symmetrical.

Symmetrical Triangles Can Be Traded Short

Symmetrical triangles are definitely not one of the most predictable patterns that are available to trade short. With just 45% of the patterns breaking down symmetrical triangles also don't deliver good returns when they do. The average drop is 0.33% in 9 days with less than half of the breakouts (44%) being profitable. These results are not great, but selecting the right conditions can make trading symmetrical triangles better.

Improve Your Trades

As you would expect a break to the downside works better in a falling sector and market environment. By using filters that require the market, stock and the sector to be in a consolidation or a down trend you can improve the results.

A breakout from a symmetrical triangle is best if it occurs later in the pattern, but not near the start. The best trades occur when a down side break occurs after the stock bounces off the lower boundary and drops back before hitting the upper boundary.

If volume supports a symmetrical triangle breakout then the profitability of the trades improves. For volume to support the breakout, volume when the stock is going down should be greater than volume when the stock is going up. A close lower than the previous day, before the breakout, results in better trades.

Symmetrical Triangles Can Be Profitable

You can improve your trading results by using a series of simple filters that have been outlined here. This select group of symmetrical triangles delivers an average profit of 1.58% in 9 days and is profitable on 47% of the trades. Overall this makes symmetrical triangles attractive to trade on the short side.

Note: Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23217

About the Author:

Jeff Cartridge is a private trader and created the website LearnCFDs.com Discover Patterns of Success

Do You Have The Forex Traders Mindset? (Part I)

By Ahmad Hassam

Human beings are emotional creatures. It is often said that we are our own worst enemy. In forex trading, this is the ultimate truth. Most of our trading decisions are guided more by emotional than logical thinking. Our mind is capable of playing emotional tricks on us.

Emotions can work against us. Emotions can work for us. Your battles are won or lost in your mind first. Victories are won and lost in ones mind. We can get seduced into unfavorable situations by our emotions. A traders mindset is the most important ingredient of success. If you have the mental strength to control your emotions, you can become a consistently profitable trader.

Forex trading is not for everyone. Do you have a strong desire to succeed in forex trading? You will end up like the majority who end up losing their money if you just want to try your luck or dabble in trading. Do you have the passion for trading forex?

In order to become a successful forex trader, you must be highly self motivated. You must have a concrete plan of action and not be afraid of failure. Are you ready to devote a lot of time and effort into picking up trading skills and knowledge?

In order to become a successful forex trader, you need knowledge and skills in that field. A huge amount of time, effort and money is required for a trader to attain consistent success in forex trading.

Losses are the inevitable part of lack of experience and knowledge. But even if you develop the experience and knowledge to successfully trade the currency market, you cannot avoid losses. There is an inherent risk in trading currencies. No one can overcome that risk. Are you willing to accept losses as part of trading? You are going to make mistakes while trading. Do you understand that you can suffer losses in trading? Are you willing to learn from your mistakes? Do you have a traders log that you use to reflect on each lost trade and learn from it?

Most of the new traders read some market analysis from an analyst and enter into the trade on his/her recommendation. If the trade turns out to be a loser, most of us tend to blame on the market analysis. It is easy to blame others.

Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying. Is it fair to blame someone when you could have done further market analysis on your own? When you could have planned your trade in a better way, it is foolish to blame others for your mistakes.

Fear and greed are the two most dominant emotions that affect not only the individual traders but also the currency markets. In fact, these two emotions are the main drivers of the forex markets.

Fear and greed are behind the steering wheel of the currency market. Fear makes many traders like you over pessimistic about a currency pair. They start the selling frenzy. Similarly, greed is going to make many traders like you over optimistic in thinking that a currency is going to appreciate. Greed starts a buying frenzy. It develops a bubble based on the irrational exuberance. It is inevitable that this bubble is going to burst. When greed takes over, the market becomes bullish. When fear takes over, the market turns bearish. - 23217

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know Swing Trading. Learn Forex Trading!

http://ezinearticles.com/?Chinas-Electronics---Why-You-Should-Buy-Them&id=2487008

By Gawel Newell

China has integrated electronics into its economy in a way that few other industrialized nations have. By that we mean that electronic goods are abundant, and they use electronic means to sell everything--including their electronic goods. Let's take a look at this near-flawless integration of wholesale electronics from China.

China's Product Exportation and Its Fate: Global outsourcing wipes away the usual obstacles in front of buyers that want to receive products from China's export goods world-wide. These global outsources can be found online easily where buyers are able to reach providers all over the world with a couple of mouse clicks.

Buying globally is possible through finding suitable providers and manufacturers in online site directories. If making a section search throughout these directories, there will be varieties of providers from China and in other countries with your suitable requirements.

Online site directories for China's product exportation: The World Wide Web has lots of spots on the globe where people can see chronicles of several manufacturers and providers of China's export goods. And as well, sites like business help center give tons of import-export support in showing services supplied to vendors or purchasers of little and midway-sized businesses to fulfill their worldly outsourcing demands.

And it's not just computers. Within the Chinese export industry, by doing a similar Google or Yahoo search, you should be able to find quality products in the areas of auto parts, household fixtures, computer supplies, building materials, clothing, communications products, telephones, glassware decorative items, and much more. And by shopping globally, you can often find a more competitive market (i. E., lower prices).

For strategies and shipping data, make a category hunt in a directory to find online data banks of requirements and requirement lists. The World Customs Organization also has put in its national customs online sites consisting of helpful data. China's export goods embody automobile parts and extra fixtures, computer supplies, apparel and material, telecom products, computerized supplies, etc. Also, worldwide buying of China's export products are available all over just by doing online purchasing.

Glass Exports from China: Speaking of glass items (as we did in our last paragraph), you can find an abundance of these through Chinese exports. The nation's export industry is not at all confined to merely electronics. China is considered as one of the biggest exporter of glass products, responsible for over 12 percent of the shipping of all glass goods. Chinese exports are rising in dozens of areas, not just electronics or even glass. However, these are two of the major ones for the country. China competes handsomely with Japan, Germany, the United States and the UAE in the arena of glass exports. They can compete aggressively because their prices are low and their monetary policies are a bit different from those in the West.

This is in addition to them continuing the decades-old practice of buying apparel and plastic goods from the Eastern markets. And as the Internet continues to become a necessary part of every person's life, you can expect that more and more products will be going from Chinese markets right into individual Americans' hands thanks to affordable shipments, and fast delivery times. - 23217

About the Author:

As it comes to cheap electronics China is first destination that pop up in ones head. According to Gawel Newell China electronics is has almost become synonymous with cheap quality electronics.