Point & Figure Trading (Part I)

By Ahmad Hassam

Point and figure trading in many ways is similar to the support and resistance breakout trading on bar or candlestick charts. The main difference is the look and functionality of the price charts themselves!

Point and figure charts represent price in a radically different manner from the more familiar bar and candlestick charts. Many forex charting platforms provide the option of point and figure charts.

Point and figure charts are a pure price action play because these charts generally exclude all other elements like time, volume and open/close other than price. Point and figure trading is based exclusively on price action.

Technical analysis is the study of price action. Technical analysis is used to predict or confirm an uptrend or downtrend or a consolidation in the market. Point and figure charts represent clear evidence of such important technical characteristics like trend, support/resistance and breakouts. Thus a point and figure chart focuses on the behavior of price action which is the most important factor from the technical analysis point of view.

A point and figure chart has got Xs and Os. A point and figure chart is constructed with a column of boxes alternately labeled with Xs and Os. An X column means that the price has risen in that column. Conversely, an O column means that the price has declined in that column.

So there is no concept of time in a point and figure chart. Only when price moves a significant amount regardless of time will an existing column grow or a new column is created. A new column is created going in the opposite direction when a reversal occurs on any column. So there is no time, volume, opens and close on point and figure charts.

Two variables can alter the way the point and figure charts look and act. The first variable is the box size. This is the minimum amount that the price is supposed to move before a new box in the existing column is created.

You will see many columns of Xs and Os in the point and figure chart. X is equal to fixed price increase. Each X denotes a rising trend. For example, price would need to move an additional amount equal to the preset box size before another X would be added to the top of the column if a column of Xs has 10 boxes.

You can use the charting software to do the actual drawing. However, you should understand the concept behind the point and figure chart. Suppose, you are using the point and figure chart. You set the box size on the point and figure chart to be equal to 10 pips on the point and figure charting software.

Now the price would have to move another 10 pips above each X box before another X could be added on top of that X. On the other hand, price would have to move 10 pips lower than the each box in O column to add another O box on the bottom of the column.

The second important variable is the reversal amount. This is the amount of pips the price needs to reverse before a new column is created. Read the second part of this article to know more about Point and Figure Trading. - 23159

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try This Cash Printing Forex Signal Service From Heaven! First practice on your Forex Demo Account!

Can You Really Make Money With Auto Forex Trading

By John Adams

The year 2010 is unique for forex trading investors. Are you seeking for finding more ways for cultivating your forex trading profits in 2010? If yes then you should seek for the most remunerative forex automated software. Read additionally to know why it is needed for you to get the most prestigious and precise forex robot for currency exchange trading. The main reasons which you should take into account while trading: You should consider some reasons before trading by best automatic forex trading system. There were lots of issues in the year 2009 which currency exchange market have not experienced in the past. a couple of of them are:

There had been lots of requests for bailing out by different companies locally and globally. In such situations these requests absolutely affected the market. There have been repeated negative news for lots of manufacturers and the automotive sector wasn't that much remunerative. These reasons also impacted the market absolutely. The inflation rate and recession drastically hit the market movements. The economic conditions of lots of countries from Europe, North America, South America and Asia was extremely delicate in the recession period. This also impacted the forex market which resulted in drastic ups and downs in currency pair rates.

Can Forex robots undoubtedly work in these markedly volatile market conditions? The answer is absolutely yes. The circumstance is the kind of complex algorithm and early indication system used in the newest forex robots. automatic trading systems like IvyBot are undoubtedly helping investors to ease their stress of trading into risky market conditions. But most satisfactory option is Automated forex software that can do better job then a human can ever do. Some basic guidelines to help you make a big amount of money on forex trading why trade forex? Can we make a big amount of money from forex trading?

When you trade forex you know as good as when all the market moving news announcements and economic data releases are scheduled, . Irrespective of whether you are a beginner or an old hand in the forex trade, forex software system trading can help you maximize your profits. The robot was doing okay and numerous people used to trade forex using forex auto pilot until in the future this software impressed a group of forex

Traders can learn to trade forex quicker than others, this is because a couple of people have more dedication and focus than others, or it is a case. If you are one of those merchants who wish to think outside the box and trade forex without indicators, then i wish to applaud you. if what you wish is to trade forex without leaving your home and win you can but before you start off you require to know a couple of key facts which are Here to evade. Forex correlation code is a forex trading kit which is based on a course and a singular software which permits you to trade forex in a. if what you wish is to trade forex effectively you have two doable ways of attaining this: discover how to do it yourself or have someone do it

The absolute thing is majority of the activities are normally automated in these forms of trading systems. They also include system trackers to track down the newest market circumstances and provide early estimations of market changes. This helps a lot in taking remunerative investment choices. - 23159

About the Author:

So I strongly suggest choosing the most reliable and legitimate forex trading software , which can provide you short term as well as long term trading profits. To find such profitable systems, just click the following link to discover the most accurate Forex trading systems, present in the market right now. http://www.sneakymoneysystem.com

Learn Why You Should Invest In Stocks

By Gary Hamilton

As luck would have it for these people, investing isn't too complex to get into, and as galore confident investors may tell you, it's just a subject of getting started. Once you have tried a few investments that are good for beginners, investment knowledge begins coming quickly. There are more than one investment opportunities that are idealistic for firstborn time investors, and introductory timers might be amazed to learn that they're already laying out money and don't even recognise it.

We all acknowledge or have heard of someone who had built up a really good retirement fund, they'd sunk all of their money for years into their investments in the stock market and relied on having plenty of cash when they got older. With the radical swings in the market over the past few years, it's not surprising to hear that so many of these persons have lost everything. One of the largest reasons is that they made one of the greatest laying out capital faults that there is, they put all of their eggs in one basket.

The real artwork of laying out capital is knowing when to trade an investment. Any individual with some money may buy any investment, like a publicly swapped fund or a stock, nevertheless, successful investors acknowledge that a good profit from such an investment may only be made when the investment is sold. As a subject a fact the firstborn job of an capitalist is to defend his capital or important invested, while the second one is to make galore net income. So how does one go when it comes to doing a good job laying out capital successfully? The answer is by adhering to a rigorous trade discipline.

So what's this system? When you begun on a stock you give another individual the correct to buy the stock at a sure price on or before a given date.

It's tempting to jump in a couple of just because they take place to be a large dividend to their shareholders. It's whether or not the organization is not sound and growing there's really not much of a point to doing this. - 23159

About the Author:

If you enjoyed this article, check out my other articles on go karting racing and rose hips.

The Currency Exchange Market

By Rueben Gomez

The trading of currencies on the currency exchange is what is well-known as forex trading. To those that have never traded currencies, forex trading may seem daunting. Luckily, forex trading is a easy procedure with mechanics that are easily understood.

The currency exchange market is established as the biggest traded market on the planet. Everyday, 2 trillion dollars in trades are made in this market.

Smaller networks of currency markets join to make up the forex market. It is built to deal with all currencies globally. Trading takes place through lots of kinds of platforms depending on the forex broker.

A true 24 hour market, trades can be made at any time fitting to your needs. On the weekends however, the forex market closes.

The worth of a country's currency depends on economic as well as political factors. Stable currencies are traded often such as the Euro, the US dollar and the Japanese Yen.

The idea, like a good number markets, is to sell high and buy low. Most traders have their own strategies employed when looking for trades. Some get pleasure from taking risky short term trades while others opt for conservative long term trades.

There is a lot of money to made in the forex market. Traders are also given huge leverages by their forex brokers. The higher the leverage, the more you can borrow on any one trade.

High unpredictability is a trademark of the foreign exchange market. Due to its unpredictability, huge profits as well as losses are achievable over a short time span. Forex traders do not pay a commission, they pay the spread every time they open a trade. The spread is based on the currency pair being traded. The general rule is the higher the volatility of the currency pair, the higher the spread.

While a lot of money can be made in the forex market, there are also risks involved, usually high risk. There are a lot of trading strategies and money management techniques one can utilize to reduce these risks. Opening a free demo account is the best way to get a feel for currency trading online. - 23159

About the Author:

Global Forex and Investments are two of the primary areas that the writer is dedicated in. Rueben Gomez is a Stock and Currency Trader with years of understanding in this fields. When he is not trading, he operates an online forex portal.

How To Choose the Best Fixed Annuity

By John C. Ryan

Fixed annuities work like a CD, but with additional benefits. If you use a fixed annuity as method of savings, you get some additional features you won't get with any CD. Some of the features of the fixed annuity are attractive but you need to understand the drawbacks too before you make a financial decision.

There are two different ways to used fixed annuities. The first is an immediate annuity. In this case, you take smaller equal payments over a set period. The time may be your lifetime, the lifetime of your spouse and yourself, a specific number of years or you can request a specific payment amount and let the company tell you how many payments it lasts. A deferred annuity does just as the name implies, defers the payment to a later date.

Annuities are for retirement money and receive tax-deferred growth. As with any retirement vehicle from an IRA to a pension plan, if you take the money out of a fixed annuity before age 59 in most cases, you pay a penalty. In this case, it's 10 percent of the growth. There are exceptions to this rule. Lifetime payments or payments that last to the age of 59 or for at least 5 years if you're between the ages of 54 to 59 . You or your family also doesn't have to pay IRS penalties if the owner/annuitant dies or becomes disabled.

Annuities also have penalties imposed by the companies. These are surrender charges. A surrender charge is a percentage that normally decreases the longer you hold the annuity. They often start between ten and four percent with the percentage decreasing over a five to ten year period. However, some contracts may have as high as a fifteen percent surrender charge that never goes away unless you annuitize the payment.

Today many companies offer exemptions from the surrender charge if you only want interest, just like a bank CD, but also allow you to invade the principal for amounts up to ten percent each year. This makes it superior to a CD. If you find yourself in an emergency, you'll have access to funds without any penalty. It allows you to keep less money in a passbook savings for emergency use.

Annuity taxation occurs in two ways. If you remove the money from a fixed annuity in a lump sum as a withdrawal, the government taxes it with LIFO rules. This means, last in, first out. Since the last in is always interest, you pay taxes on the interest you withdraw. Unlike a CD, where even if you reinvest the money, you still pay taxes, you only have taxation of annuity interest once you remove it.

Immediate annuities have different tax rules. If you use the fixed annuity as a deferred annuity and then annuitize it later, it follows these rules also. Part of the payment each year is principal and part of it is interest, according to the IRS regulations.

The exclusion ratio, the amount you exclude from taxation on payments from fixed annuities, comes from multiplying the expected payment by your life expectancy and dividing the original premium by that number. A 62-year-old person's life expectancy is 22.5 years. If they receive an annual amount from a fixed annuity of $9000 and live the 22.5 years, they'll make $202,500 in payments. Simply divide the $100,000 invested by $202,500 to get an exclusion ratio of 49.4 percent. Therefore, you only pay tax on 50.6 percent of the payment.

There are great reasons to select fixed annuities over bank CDs, but most financial planners suggest you use both types of investments and diversify your funds. This is the safest method of investing in the event of unforeseen disasters. Most people find that the annuity is a great method of establishing an income they'll never outlive or a way to achieve tax-deferred growth to pass on to their children. - 23159

About the Author:

John C. Ryan authors about annuity insurance, and advises how to find the best annuity given your particular situation. Interested in learning more about how to choose the proper fixed annuity given your particular situation. Come see us, to learn more about fixed annuities .