Stock Market- Using 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. - 23159

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BEST BROKER if you are looking for when see CFD FX Report, also grab the latest forex reports.

Forex Singapore- Trade Size Importance

By Forextraderreport

One of the major mistakes that most traders will make will be the amount of capital that they place per trade. So how trade to ensure you become successful? Size is the Key The well-known commodities trader Ed Seykota, who turned $5,000 into $15 million over a period of 12 years, was teaching a form in technical trading to a college class many years ago when he decided to conduct an try out to illustrate to his students the value of money management, or position-sizing - that is, finding how often money you will risk on any individual given trade - to the universal success of any trader's trading plan.

He said his class they were going to contend in a trading competition with each other. Each pupil would start with a theoretical equity stake of $100,000. The winner, of form, would be the student with the most money at the end of the competition. However, there was a catch: Each student would buy and sell the same stocks at the same right time, thinking those stocks would rise or fall exactly the same amount. In fact, Seykota pulled each "stock" out of a hat at the front of the room, and simply stated the students whether it had gone up or down and by how often.

How do you conduct a trading contest when everyone buys and sells the right same stocks at the correct same time? It is all about position-sizing - how often money you are willing to bet on each trade. After Seykota chose each stock, but before he declared whether it had gone up or down, each pupil was required to write down the amount of money he or she was willing to risk on that trade. They could risk as little or as often as they wanted.

The results of the competition provided quite an education for Seykota's students - and should be remembered by anyone who puts their hard-earned money at risk in the market. By the end of the competition some of the students had lost their entire hypothetical stake and were totally "broke". Others had come out about even, making a little money or losing a little money. But a few of the best students - the best traders - had turned that supposed $100,000 into over $1 million!

Think about it: Two traders start with the same amount of money and buy and sell the right same stocks at the right same time. One goes broke. The other makes 1,000%! Therein lies the secret to survival, and ultimately success, as a dealer. All the great traders will tell you that position-sizing is the individual most important factor in their success.

So how often should you risk on any individual trade - in other words, how much should you be willing to lose? It is best to risk a firm percentage of your account value on every trade, and not vary that percent from trade to trade. What that percentage should be depends on several critical factors. The most critical are your win-loss ratio, the size of your average win and the size of your average loss. Given these three numbers, your position sizing will determine whether you live or die as a trader.

The point of position-sizing is to be sure that you don't break the bank during a losing streak. Even a random coin toss can produce 10 tails consecutively, so make no mistake that even the best traders suffer through losing streaks of equal length. If you risk, say 10% of your account on every trade, and your average loss is 7%, a losing streak of 10 in a row could be destructive. On the other hand, if you are a day trader and your average loss is .5%, you can risk more money on each trade without worrying about a losing streak taking you out of the game.

Seykota says he never risks more than 5% of his account on any single trade. some other highly successful traders think risking anything more than 3% of your account on a single trade makes you a "cowboy". A good beginning point for beginning traders is probably 1% of your account. The added advantage of lower risk for beginners is that it helps minimize the emotions that often interfere with good trading.

For a detailed discussion of position-sizing, we highly recommend Van Tharp's book "Trade Your Way to Financial Freedom". An internationally renowned trading coach, Tharp was profiled along with Seykota in "Market Wizards", Jack Schwager's classic collection of visibilities of some of the most brilliant traders and trading minds of all time.

CFD FX REPORT is a real time tool for clients with an interest in the trading of stocks, indices and commodities globally.CFDs (Contracts For Differences) are one of the worlds' hottest growing trading instruments that allows clients to profit from a rising and falling market. The CFD FX Report is a company comprising of expert traders that analyse the market daily and are able to make recommendations for the following day trades based on this analysis. The CFD FX REPORT is released everyday at 6.30 p.m. (Singapore time) for review by the clients for the immediate trading day. We provide sms and email service for our trade ideas as well as full member support. The trading tool that traders wants. Free 1 week trial - 23159

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CFD FX Report is a real time tool for clients with an interest in the trading of stocks, indices and commodities globally

The Secret Forex Strategies you must know

By fxreport

If you are a forex trader you should be prepared for winning trades and losing trades. To be a great forex trader you need to be prepared for this, as if you are not prepared to take some risks you can never become an effective and profitable forex trader.

The hardest thing for most forex traders to take is a loss, so if you can't take a loss you will never make a forex trader.

Being a trader in the Forex market has its ups and downs. There are times when you earn lots of profits but there are also times when you lose a great deal too. Foreign Exchange is a complicated, profitable, and risky endeavor. If you're not ready to take some risks, you can't be an effective and efficient trader.

Are you aware that the Forex market is the largest market to conduct trade all over the globe? It turns over $2.5 trillion dollars everyday and is larger than the world stock markets and bond markets put together.

The forex market was primarily created to meet the demand and supply of different kinds of currencies by individuals, companies, and government. It was also created to assist exporters and importers to buy and sell goods across the world. Most of the traders are investors, businesspersons, speculators, businesses, and those in the industry of banking. However since the introduction of the internet people from all walks of life are now trading the Forex Market.

Most Forex Traders accept the risk of any adverse movements in the exchange rate and in the case of a favorable currency movement the speculator can earn lots of profits. Those that make the most profit are those that are the best educated.

In order to become a successful forex trader you must have your own trading system. This is a must for all traders and beginners in the industry are encouraged to develop their own system. For starters, you can start with a small investment or you can start with a demo trading account. Once you build up enough knowledge and confidence from your practice account you can then start trading with your capital. With the system in place, you can easily decide when to enter the market and when to exit. Remember just your losses quickly and let your profits runs. Always use the old saying that Trend is your Friend. The cost for every transaction is very minimal and so you can trade for as many times as you like in a day; besides, the Forex market is open round the clock.

Never enter the Forex marketwith limited knowledge. You must be aware that around 90% of all Forex traders suffer great loses. Only 5% are able to gain profitable results while the remaining 5% are only break-even. So the most important thing that you can do is educate yourself as knowledge is power. A great place to find excellent free education lessons is the CFD FX REPORT and they can also help you find the Best Forex Broker in the market.

You will need to have adequate knowledge about the Forex market before you every start trading, if you start without the right knowledge you will more than likely end up in the 90%, losing money - 23159

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The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.

Surviving the Trading Race

By Rick Amorey

It's a new and possibly intimidating year, this 2009. The economy is down for the count, insurance companies are screwing people over, and the light at the end of the tunnel is a tiny pinprick in the distance. While the new president in office promises to make great things happen, he's still new at the position, and mistakes will surely come his way. In other words, we may be here for a while. But recovery is going to come.

What does this financial recession mean for the average US citizen? The most glaring repercussion of the financial crisis is the fast drop of available employment. Of course, unemployment is expensive. If we are used to a particular spending habit, old habits are hard to break, and we may find ourselves out of money before getting a new job.

It goes without saying that a little frugality is a good idea. It's advisable to try and cut back on things that aren't necessary, but try to keep a few expenses on hand to keep you happy and sane. You most likely have cash saved up, set an amount aside for mortgages and other necessities, and use the rest for minor investments.

What possible investments can there be had in this time? You don't have to be an expert broker to know that most stocks are in shambles. But, while prices are low and may continue to go down even further, you will notice that it is now more stable than when this initial crisis began. And when, not if, the recovery pulls through, the cheap stocks of today will steadily rise back.

Of course, the unfamiliarity of the stock environment means that it is very hard to predict. Bottom line, what's vital is you plan what you're going to do thoroughly, and stick with it. It's a race in which everyone stumbles, but if you stop and grumble at your bruises, you'll get left behind. - 23159

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Becoming the Ultimate Day Trader

By DayForex

The share market today is as volatile as we have seen it, as stock prices continue to fluctuate the only way to preserve your money is to sit on the sidelines and the chaos goes on in the financials and other sectors. With the wild swings in the market as it continues at times to make no sense. We have seen days of down 500 points, followed by days of up 450 points, actual trading sessions moving as much as 1000 points. How do we make sense of these crazy markets and more importantly how do we make money.

Do not worry there is a systems out there that will teach you manage your trades. With this type of knowledge you can go from a learner trader to an Expert Trader in no time.

Becoming a successful stock market trader requires learning and having a certain level of knowledge, confidence and the ability to control your fear and greed. Stock Market or Forex Trading is best explained as supply and demand, if a lot of people want the stock it goes up, if they don't want it then it falls. There are endless amounts of research available today from online reports, newspapers, education lessons the list is quiet long so how do you decide when and where to start. The first step you need to take is to decide that you want to become a trader. Then you need to right out your goals and your reasons why.

What you now need to do is to learn and understand that in theory things can seem simple however once you are trading in these at times crazy trading markets things can seem confusing. This is why it all comes back to having the right level of education and knowledge and where possible a great mentor or Broker. Using these steps almost anyone can become a trading success.

To learn more on the stock market or forex market feel free to visit the CFD FX REPORTas they have some excellent education lessons available, and they can also help you find the best online brokers in the market. - 23159

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The CFD FX REPORT