Relative Strength as a Trading Tool

By Chris Blanchet

Investors who want to learn stock market investing often turn to technical analysis for objective and unbiased guidance as to when they should enter or exit a particular position. As discussed in other parts of this Technical Analysis series, some events are simpler to determine than others, especially for people who are just starting to learn stock market investing techniques. The Relative Strength Index (RSI) of a security would be medium-difficult.

What Is Relative Strength (RSI) An oscillator, RSI measures a security's relative strength compared to its own price history. What this does for the investor is provide insight into overbought and oversold conditions and can also help identify support and resistance levels better than the price chart itself can.

How Relative Strength Works Unlike some of the other oscillators covered in our technical analysis series, the RSI is plotted on a scale of 0 to 100. The key levels to remember are 0 to 30 for oversold, 30 to 70 for in range, and 70 to 100 for overbought. Depending on the investor's strategy, these numbers can have different trading implications.

Calculating the RSI Mathematically speaking, the RSI requires a touch more work than other technical analysis calculations. To determine a security's RSI, you use the following: 100 - [100/(1 + A)] where A is the average up closes over the period divided by the number of down closes for the same period. If you use a period of 14 days (the norm, it seems) and had 7 up days and 7 down days, then your RSI would be 50 which is in range.

Using RSI to Trade Securities The RSI is more useful than just providing buy or sell signals to investors. First, the RSI will show areas of support and resistance more clearly than security prices would. Second, overbought and oversold conditions can help determine whether one should sell, buy or hold an existing or non-existing position. They are not typically used on their own to trigger a buy or sell as they provided bearish (0 - 30) and bearish (70 - 100) signals. Using tools such as the RSI to determine safe or unsafe points of entry and exit is really the whole purpose of technical analysis in the first place.

Trading software can alleviate a lot of the time consuming and draining calculations needs to produce a solid buy or sell signal. Although technical analysis involves many aspects and signals, such software can change an individual investor's experience from overwhelmed to simple... or at least make it simpler. - 23159

About the Author:

Chris Blanchet has over 16 years as a Financial Advisor. Read more about online trading and receive complimentary access to the Technical Analysis Series at Online Trader Today.

Forex Training: Forex Market Background

By Bart Icles

If you plan to engage in foreign exchange (forex) trading, it would be to your advantage if you arm yourself with substantial knowledge of the foreign exchange market. Forex trainings are all over the Internet and there are even some consultants offering help on educating yourself about the dynamic forces that go about the forex market. If you take a look around, you can choose from numerous forex training programs available. With the massive number of forex trainings that can help you in your learning, you can easily conclude that they cover a wide range of topics. Varied as they may be, one of the common factors that these different forex trainings have is that they all help you understand the complex milieu of the forex market.

One the most rewarding markets that has opened its doors to various traders is the forex market. It continues to attract new traders and investors because of its identifiable trading patterns, and comparatively low margin requirements.

Unlike in stock markets, one can conduct trading in the foreign exchange market without the restrictions of a central physical exchange. Instead, one can arrange for transactions through the telephone or the Internet. Having this kind of transaction structure, the forex market has come to be recognized as the largest marketplace in the planet. It averages a foreign exchange volume of more than $1.5 trillion per day. This high volume allows traders to make faster transactions with lower transaction costs. As a result, a large number of banks, financial institutions, and multinational corporations has seen forex trading as an exceptional investment opportunity.

Most forex training courses or programs also help would-be traders in understanding the significance of trading decisions, and how they affect entry into forex trading. Forex trainings also cover important topics such as controlling risks and exiting trades.

Forex trainings should also assist future forex traders in learning more about forex charts and how to interpret them. At the same time, forex trainings should also make learners understand the value of forex charts to forex trading. Forex trainings must also update learners on technical studies on forex trading, market news and analysis, and current and predicted trading signals.

Take note that no one can become a forex trading expert overnight without going through a comprehensive forex training program. Mastery of forex trading does not only come with a single forex training course, CD, or book; mastery of the market is achieved through continuous learning, additional trainings, and trading experience. - 23159

About the Author:

Succeeding with forex strategies starts with a desire to learn and a drive to become a great trader. Learning forex day trading strategy 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.

Fund Managers can become farmers-Jim Rogers

By Jim Faber

Jim Rogers was recently interviewed by The Economic Times. Among the topics covered include the recent rally in stocks, the widening deficit and his recent comments on Sri Lanka. In this interview, Jim Rogers touches on a couple of commodities that he believes will do well in this economy. As investors push oil and gold, Jim Rogers is looking at other commodities such as Silver, Cotton and Natural Gas.

If US unemployment touches the 10%-mark, it would further impact retail sales. How bad could this be for Asia?

I was trying to make a point that if anyone wants to invest in this particular part of the world, the best place would be Sri Lanka. Because it looks like the 30-year war is coming to an end.

Throughout history, if you go to a place after the war ends you usually find everything as very cheap, everyone is demoralised, people are just depressed and there are enormous opportunities if you have energy.

Central banks all over the world have printed huge amounts of money, and the real economy is not strong enough for all this money to be absorbed so, its going into stocks and real assets such as commodities. Its a mistake what they are doing. Its giving short-term pleasure, but theres long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road.

If US unemployment touches the 10%-mark, it would further impact retail sales. How bad could this be for Asia?

In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then both banks failed in the end.

Its going to snap. Later this year, next year, we are going to have currency problems, maybe even a currency crisis. I dont know with which currency " maybe with the pound sterling, maybe with the US dollar, who knows. It maybe with something none of us have at the moment. When you have a currency crisis, stocks will be affected, many things will be affected. It is not sound, whats happening out there in the world.

In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then both banks failed in the end.

The American bond market is already beginning to go down dramatically as people realise that the American government has to sell huge amount of bonds, and secondly, there is going to be inflation, serious inflation, as it was always in the past when you had governments printing huge amounts of money.

If the pain comes in 2010, 2011 or 2012, there will be nobody he can blame. Especially, if things go bad later, the opposition will say, wait a minute, 2009 looked good. The next guy is going to say you did it But you are right. Its very difficult for an elected government. You have a newly-elected government in India. Whenever you have a new government they can take some of the pain.

Its going to snap. Later this year, next year, we are going to have currency problems, maybe even a currency crisis. I dont know with which currency " maybe with the pound sterling, maybe with the US dollar, who knows. It maybe with something none of us have at the moment. When you have a currency crisis, stocks will be affected, many things will be affected. It is not sound, whats happening out there in the world.

In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then both banks failed in the end.

They are doing many of the same mistakes now. Whats different this time is that we are printing huge amounts of money which they did not print at that time. So, we are going to have inflation this time.

What do you do? No politically-elected government can afford so much pain, unemployment and hardships

America could have. America just had an election. The guy was elected in November and he could have come in the beginning of a four-year term and said the guys before me were hopeless idiots. They ruined things. We have to solve this problem. We have to take some pains now. But dont worry, we will get through this pain, and in two to three years or four years, things would be fine. And he could have been re-elected.

If the pain comes in 2010, 2011 or 2012, there will be nobody he can blame. Especially, if things go bad later, the opposition will say, wait a minute, 2009 looked good. The next guy is going to say you did it But you are right. Its very difficult for an elected government. You have a newly-elected government in India. Whenever you have a new government they can take some of the pain.

And rarely do they produce. Its not the first time that the Congress party has been in the power. If they mean it, Indias going to be one of the greatest development stories in the next 20 years. But I dont know if they mean it. - 23159

About the Author:

All Things Jim Rogers is a Jim Rogers Blog dedicated to tracking the latest Jim Rogers videos and interviews for the general public to enjoy.

Automate Your Forex Trading Now with the FAP Turbo System

By Alex Miller

It would be nice if we could simply run a computer program and allow it to make us money on a day-to-day basis. The reality of this is a little bit difficult to believe but the fact of the matter is that there are some Forex programs which are able to help you do this. Not all of them are going to give you positive results but there are a few that are worth looking into. Using them on a regular basis may actually help you to make money consistently.

There are literally dozens of these programs that are available on the Internet and that many of them are not worth their weight at all and are better left alone. There is one, however, that truly stands out as different from among the rest and this is FAP Turbo. Not only did it pass our own independent testing but there were a number of other reasons why we trust this program so highly.

There are a number of different criteria that we look for whenever we are testing one of these programs. I have to admit, automated Forex trading is one of my favorite things to test, simply because it yields some interesting results, either to the good works of the bad. As in the case of FAP Turbo, however, I have to admit that it was all good. Our test account ended up in the positive and that is why it ranks so well.

The first thing that we typically look at is the website and sales letter for the program itself. The FAP Turbo website makes a number of different claims that we found very interesting. At the very core of these claims, however, was one that stated that all you needed to do was to set the program up on your computer one time and start it running. From that point forward, it will be able to make you money on autopilot.

The testimonials are also something that is interesting to look at on many of these webpages. All of the testimonials on the FAP Turbo webpage were positive, something that we were expecting. Some of the people, however, that left testimonials were raw beginners that were using FAP Turbo to make money.

It is all well and good to hear what a company has to say about itself but it is entirely another thing to hear what other people have to say about them. Our own independent testing showed positive returns whenever we used it on our test platform. We also follow a number of other testers who do similar to what we are doing and all of them had positive results with FAP Turbo as well. In fact, we did not find it one independent testing facility that did not make money with this program.

We also look at a number of different locations to see what the actual users are saying about our products. In the case of this product, the reviews were rather positive and many of these individuals were saying that it was able to make them money consistently. The best part about it is that they did not have a vested interest in the company so you can truly trust what they had to say. We would not necessarily suggest that you totally turn all of your money over to FAP Turbo, but we would suggest that you have it as a tool. - 23159

About the Author:

To view our full FAPTurbo Review, click on our website now

Power of the Forex Market To Make Money

By Frank M. Rivera

Trading on the forex market only became legal for individual investors in the 1990s, when that sort of trade was deregulated. Now, daily forex trades run to three trillion dollars or more, and it's something that lots of investors can get involved in. It's a popular investment conduit, and we're going to examine why.

Forex is popular because it's accessible, and, on the surface, easy to understand. Your trade is aggregated to your broker, and entered straight into the market, meaning that it's possible to be a very agile trader, playing on the market's daily volatility. There are trading programs that you can download that can handle the routine actions of buy and sell orders, and even alert you of possible trends.

Forex markets happen the world over, not in some fixed location; you're trading online (like the major brokerage houses do). An order gets put in and gets consolidated at the broker's desk with all of their other clients. From there, it goes on to the market, and that means you can run from the start of business on Monday in London to the close of business on Friday in Hong Kong, 24 hours a day, for almost six days a week including the time zone adjustments.

In addition to that, you get to control large sums of money without having to actually have that much money in your account. Some brokers allow you to use 500:1 leverage on your trades. This means that for every dollar of your money you're trading, you are actually trading 500 actual dollars in the markets. Using other people's money is how people can create massive wealth for themselves.

Forex trading can be lucrative, if you're willing to be wired in to be a constantly shifting day trader. You're playing the swings in volatility, and with leverage, even shifts of a thousandth of a unit of currency can create (or lose) large sums of money quickly. With forex trading, it's very unlikely that your investment will become utterly worthless - it's still currency at the end of the day.

Like any investment, there is an element of risk. Especially when playing with large amounts of leveraged capital, you run the risk of big losses. Be careful, start out slow, and used strict money management techniques while you figure out if this is a job you like.

Forex has a lot of strategies beyond day trading. One of the saner ones, for people who don't want to be glued to the Internet for 100 hours a week, is position trading. There are longer term trends in forex trading and this is a lot less stressful (and time intensive) than trying to run the volatile day by day swings.

Forex is a good way to get a high paying job you can do from home. Make no bones about it - it IS a job. One that you have to pay attention to to do well. It is NOT a system where a computer program will make you money while you sleep; if there were any kind of automated way to beat the market, with trillions of dollars at stake, there is no way that the big trading houses wouldn't be using it; anyone who did have such a secret would be using it to make hundreds of millions of dollars per year, not selling it on the internet for $99. - 23159

About the Author:

Wanna make cash with currency trading software? . Check out this automated forex strategy here and even a little money can turn into a lot!