Technical Analysis For Stock Traders
October 27, 2009 by theforex
Filed under Forex Trading
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Technical analysis of the stock market, or any other market such as Forex, futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.
You only have to think back to major stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.
Just by reading the balance sheet and other quarterly reports they release gives you a very limited insight into the real health of the company. Whereas the technical analysis charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.
So what are the secrets to technical analysis?, I’m about to tell you, here are my golden rules:
* Only use 3-5 simple technical analysis indicators
* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective
* After selecting your indicators and parameter settings don’t mess with them.
The real secret to technical analysis is to become VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.
The fact is that in any market, for each bar period, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying much the same information and so are redundant.
For the record my set of indicators are:
* 4 Simple Moving Averages
* Bollinger Bands
* MACD
* Stochastics
But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:
A767342187
Learn Forex Trading: Top Dog Trading Review
October 25, 2009 by theforex
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FREE 5 Day Video Trading Course
When I started trading Forex markets, I knew that fundamental analysis was not for me, but reading charts and their patterns was something I was much more comfortable with. Google ‘Technical Analysis’ on the web and you will be inundated with options, but after much reading I discovered Top Dog Trading.
What helped my decision to take this course to learn Forex trading?…. A number of things besides the overwhelming need to improve my trading and to halt my run of losing trades; was that I had a good feel for what Dr Barry Burns was imparting on his website and much or the instruction is reinforced on plenty of videos which makes it much easier to follow his chart interpretations. The other essential criteria for me is the experience of the teacher and creator of the teaching materials. Barry’s CV is superb, a business man who treats trading as a business, he is also a highly regarded speaker and writer.
So I signed up for his free 5 video course to see if I could learn from his teaching style.
Before this, I had completed several other courses on technical analysis relating to Forex trading but cannot say that I really gained the understanding of trading that would help me trade successfully, all this changed once I came across Dr Barry Burns, now I am comfortable with the trading strategies I have learnt.
Having completed Barry’s courses I have not only fully comprehended how to trade his methods but also developed a far deeper knowledge of the Forex market & the charts and probably more importantly the money management and personal attitudes that are so intrinsic to becoming a professional Forex trader.
In his courses Barry explains the analysis rules simply and clearly, then gives upto date chart examples with all their confounding moves showing how to apply the rules for positive trades. This is all explained via a vast selection of videos.
Provided you follow the principals Barry explores, you will end up with a good ratio of winning trades with tight control on the losses, so when one does a trade that goes against you (which even the best traders do) the hurt is not too severe.
Barry’s courses are the best Forex trading courses that I have found and I would highly recommend that you give his FREE course a try. This tutorial has 5 videos that ease you into some of the most powerful trading material I’ve ever seen.
I have completed the course, loved it, and gained a vast amount from it and have moved to Barry’s more advanced courses. My wish to learn Forex trading will never again produce the losses of the past.
Explore the Free 5 Day Video Trading Course for yourself:
Forex Trading Strategies
October 18, 2009 by theforex
Filed under Forex Trading
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Free 5 Day Video Trading Course
The current economic environment is leaving many people feeling uncertain about Share Trading, one only has to observe the charts and listen to reports of companies in trouble, to realise just how unpredictable the Share market is. Yes there is still profits in it, and with many stocks available at relative bargain prices, there are opportunities to make some serious long term dollars.
Because of this, many investors are now switching their gaze to the Forex markets as an alternative income generator. There are a variety ways to trade Forex, Day Trading or swing trading, the list goes on, but there is one thing they all offer the unwary, a high level of risk if you don’t know what you are doing.
There are two core analysis techniques; Fundamental Analysis, basing trading decisions on news events and Technical Analysis, which involves interpreting the charts using a variety of indicators. This is how I like to trade as I am not reliant on news feeds. It doesn’t matter which you choose, to minimize potential losses, you are going to have to learn Forex trading before you start committing any hard earned cash.
Some very good basic information is offered by Babypips.com, at no cost, but they do not delve into how to create Forex trading strategies.
What is a Forex trading strategy? Simply put, it is a system for setting money management rules, analysing the progression of a chart, establishing a possible trade entry point (Setup), confirming the entry point, opening a trade, establishing an exist strategy to both minimise losses and to take profits.
A trading strategy is of the utmost importance when Forex trading, without it there is no way of working out why you entered a loosing trade and how to correct it, or why the trade worked and how you could improve it.
As you commence trading, a trading strategy provides the system for trading on a Demo account. These are offered to you by most brokers and allow you to get your feet wet, without risking real money. You set an account balance and trade it real time honing your trading strategy and watch your account either grow or vanish. You’ll soon see if the strategy you are testing stacks up!
To learn how to develop a a specific trading strategy for profiting from market rebounds, there is a free video course which will teach you a trade called the “Rubber Band Trade” so give it a try to get you started.
It’s a great little series put together by a Professional Trader and covers the technical analysis for all stages of this specific trade. Once you have watched this strategy on a Demo account and made it grab pips on a regular basis, you can make it work on a real account and start pulling some profitable trades whilst you develop and test other trading strategies that will make your Forex trading a success.
I regularly use this trading strategy and still trade it when the charts set up correctly. A quick 20-30 pips? Why would you miss the chance?
To start grabbing rebound pip profits get the Free 5 Day Video Trading Course.
