Tuesday, September 25, 2007

Stock Pick - Strategy on stock investing

Stock Pick is the key of stock investing. With many stocks out there, we need to know which stock should we buy, and which stock we should sell. If you choose well, then youve reach glory, if you choose the wrong stock then might just say goodbye to your money. So how do you choose? If you want to go somewhere like your home, theres maybe many roads you can choose. Different roads have also different characteristic. Youll most probably choose the road which you like the characteristic. If you like the mountain scenery, you might want to go though the mountains. The same like that example, stock picking is very crucial. Its actually the key for success, and the guide for glory. Just follow and stick with your stock pick guide, and youll reach your goal. But remember that theres no guarantee that your stock pick strategy will be 100% accurate, because theres a lot of factor which influence a company performance, and many of it is tangible like brand, employee competence, and human emotional.

Many people use screener as a strategy to pick stock. There are many popular screener, like Graham screener for the value investing method. You can modify the screener to fit your character. If you are risk averse or risk taker, you can change the screener to increase the effectiveness. Other poeple uses software like Vector2000 Stock Systems which gives advanced technical analysis and market forecasting for short term stock market trends, c/w trade recommendations, timing indicators, enhanced quotes / charts and MarketMeter. These software is made by expert which can make life easier.

There are various stock pick strategy, which are:

Fundamental analysis , buying stock with good financial fundamental. Fundamental analysis is finding the fair value of a company. The calculation is done by using the time of money concept, which is money now is better than money in the future. By knowing how is the cash flow, the in and out of money, you can count for its fair price. Thats the difficult thing to do, because you need to predict how much profit will the company make.
Technical Analysis , buying stock based on previous price data. Technical analysis is done by looking at previous price, and volume data. Technical analyst look at past chart of price and different indicator to make prediction about the future prices. The human emotion is an important aspect here. Their willingness to buy stock at a certain price will determine future price. This analysis assumes that price moves at trend, and history repeats itself. It is believed that this analysis is more art than science. Because of that, there has been plenty of critics to this analysis, due to lack of evidence of it's performance. But it is still a popular method in the world, through its easiness.
Value Investing , buying stock which is undervalued. The concept is actually very simple: find companies trading below their inherent worth.
Growth Investing , buying stock with high growth.
Income Investing , buying stock which give regular deviden.
Please remind that it is very crucial for you to choose your own stock pick style, not following other people style. If its good for them, it might not good for you. So know your characteristic, and the stock pick strategy characteristic.

Yulianto http://www.stockpickguide.com

Forex Trading - How to Read Forex Quotes

If you are new to the world of trading, forex quotes can be pretty confusing. However, it takes just a little know-how, to read them.

What does a foreign exchange quote look like? Look at the following example:

EUR/USD = 1.2526

The above formula shows the foreign exchange rate between the euro and the US dollar.

Remember that in any forex quote, two currencies will always be present. This is because with forex trading, you are buying one currency as you sell another currency.

The first currency listed in a foreign exchange quote is called the "base currency." The second currency in the formula is the "quote currency." Therefore, forex quotes show us the relationship between prices for the two currencies in the quote.

The exchange rate is made up by showing how many units of the quote currency you have to pay in order to buy one unit of the base currency.

The Euro is the base currency, above, and US dollars are the quote currency. The quote shows how each currency trades relative to the other. If you want to buy one Euro unit, therefore, you will have to sell 1.2526 US dollar units.

Next is the "bid/ask" spread. The bid/ask spread is the alternative to broker commissions in the foreign exchange market. Brokers get paid for their work via the bid/ask spread.

With the bid/ask spread added to the above example, it looks like this:

EUR/USD = 1.2526/1.2528

Simplified, it looks like this:

EUR/USD = 1.2526/8

Brokers make their money when they sell currencies for slightly more than they buy them. This is legal and every broker does it. However, the spread can differ significantly between brokers.

When you trade forex, you buy at the bid price, the first price in the above example. You then sell at the ask price, which is the second price quoted. The difference between those two prices is called a "spread;" this is what the broker makes as his or her profit on the trade.

In the above example, you've bought at 1.2526 and sold at 1.2528. The 0.0002, or two pips, goes to the broker as payment for executing the trade. When you look at it this way, you can see that the bid/ask spread is relatively simple and straightforward; it is a relatively easy way to calculate trading fees and expenses.


When trading currencies I would recommend that you stick to the seven major currencies. They are as follows:

USD - US Dollar

EUR - the Euro

GBP - British Pound

JPY - Japanese Yen

CHF - Swiss Franc

AUD - Australian Dollar

CAD - Canadian Dollar

Visit Online Trading Books, Tips and Advice to find more great information about online forex trading. Besides a large selection of free informative articles you can also find powerful books about online trading in general.

Other Resources:
123OnlineCurrencyTrading.com - Forex Trading Directory

Singapore's Self-Made Millionaire Teaches The 5 Steps To Financial Wisdom

Singapore's Self-Made Millionaire Adam Khoo teaches you the 5 steps to financial wisdom... If he can do it as a broke guy who barely passed high school, you can too.

1. When hiring a person to work for you, hire one who is more knowledgeable in the position you intend to hire him/her for. Make sure your employees are SMARTER THAN YOU ARE! This way, you will have less worry if they are able to perform the job. You get to learn from them, and youll have more time to attend to other ventures. As long as you compensate them well, EVERYTHING should be fine, so don't worry about being "taken over" or anything silly like that.

2. Changes that involve bargains can spell p-r-o-f-i-t. Take for example in a supermarket where there is a sale. Peoples most likely reaction is to buy and stock up. It is normal reaction but peculiar when analyzed. In the stock market, when there is a price crash, people tend to shy away. This is contrary to what happens in the supermarket. Why?

Perhaps, we will never know. On the other hand, when prices in a supermarket go up, people shy away. Again, in the stock market, when prices go up, people start buying which shouldnt be the case.

3. Financial knowledge is knowing the difference between assets and liability.


Go ahead.

Look it up. Dictionary.com. I will wait.

Actually, an asset or a liability depends on the PERSPECTIVE. What you think is an asset, could be a liability to another person. As mentioned before, anything you own that earns is an asset; otherwise, it is a liability.

4. Oftentimes, we stick to the conventional way of doing business: This is the way it is done here. For all we know, the conventional way might not be the best way. Look at it another way, the unconventional way. It could save money, and money saved is money made. In other words, although it is a cliche of sorts...THINK OUTSIDE THE BOX!

5. High emotions (fear included) can sometimes cripple financial knowledge. Do not let your financial ability submit to your emotions. Similarly, making financial decisions without proper training on finances is disastrous.

Money comes and goes. But unlike money, financial knowledge stays. The nourishment it needs to stay keen is to keep it accurate and up-to-date.

If you feel like youre being pushed around, stay smart, exercise self-discipline, and keep updated.

The basics of financial knowledge should have been taught in school; instead you learned how to sit down, be quite, and take notes. This explains why the poor and middle class comprise the majority of the populace with its gap from the rich ever widening.

If a person winds up with a lot of cash without financial ability, this person is bound to find his/her money gone soon. TRUST ME, it's happened to me already and I'm only 24! Weve heard of athletes who earned millions during their prime and movie stars who amassed untold fortunes only to grow old broke.

Having financial knowledge is truly vital to maintain and grow your wealth.

Ben Rosario is an aspiring entrepreneur and NLP enthusiast residing in South Texas. He hopes you appreciated the contents of this article. For more info, please visit:

Secrets of Self Made Millionaires

Stock Market and Stock Trading Factors or How to get Success in Stock Trading

Want to jump in stock market, there are some factors which should be consider first before jumping in stock market. First you should know the basics of stock trading. What are stock trading and how much minimum investment it requires for stock trading? Proper research is needed while making any investment in stock market. You should learn about the company in which you are going to invest. Search about companies business in which it is involved and what types of business carried out by that company.

If you are satisfy with your research and found profit in investing in that company. It is safe to invest otherwise not. In business there is always a risk factor, so be careful about companies and market trends to maintain your profit.

One always purchases stock to earn profit. One gains when he purchase stock at low cost and sales when the market is up and the stock prices grows. Make stock market research and decide which share is profitable one, which company can grow in future and which can down. Accordingly plan your stock market investment.

If you have lots of share of a company and the company is growing consistently at a normal rate then there is no need of concern. On the other hand if a company growing fast at abnormal rate then search out the factors and investigate the reasons of its success. If you find positive results then further investment in that company will be profitable otherwise it may be loss. Stock market of India is consistently growing up and investors are earning with both hands. Make investment in stock market of India.

Lets take another example where you make huge investment in a company and the company suddenly goes down. In this case most of the investors take quick decisions that may put them in trouble. So dont make any big decision without proper awareness and investigation about the problem. First find out the correct reason behind it.

Undoubtedly stock trading is a good way to earn money, where you need not to devote much time or you need not to work. It is side business and also involves risk factor. It requires initial investment to get success. Stock trading is one of the best ways to make money but require some precautions. Find more about stock market of India or Indian stock market. Other ways to make money online without any investment check it out and make online money.

Learn Forex Trading

The internet has changed the way we invest online. Along with that, forex trading has become the new way to get significant profits while investing with certain advantages that are superior to other types of investments.

Flexible access is a unique trait to forex, you can get involved whenever you want because it operates 24 hours a day to give you total access to trades. Have you ever been pressured because the market is about to close at the end of the day? No worries here, this is not the stock exchange. Currencies continue to trade. The beauty of forex websites is that they allow you to monitor the market in real time when ever you choose. This really helps in the learning process.

There is help given by these websites in the form of tools and tips to help you overcome the trading learning curve. Take advantage of the fact that the sites will allow you to "practice" trade without using real money.

Through free guidance, demos, and market news provided by these Forex trading firms, beginners in the industry are already trained to be the expert in the business. How much does it cost to get started trading forex? It only takes about $300 to open an account with a broker and to start investing.

Thanks to the online forex trading websites, learning the Forex trading market does not necessarily mean you must become a market analyst or economy expert to be successful in the field. In most cases, you can access the most extensive market, Forex trading, through an intermediary or Forex trading brokers.

Forex brokers are very similar to stock brokers, in that they can give you advice on trading strategies and how to deal with the ups and downs of the market. The advice extends to everything needed to become successful trading forex which includes technical analysis and fundamental analysis data. It is only natural that large financial institutions try to monopolize the market because it provides such a solid return on investment.

Even if you are the very smallest individual forex investor, you still have the ability to make great returns because of the availability of internet trading. As I stated earlier, the online forex companies have been making powerful free tools available to educate and improve the knowledge of new investors.

When you choose your broker, the determining factor should be your level of experience in the forex market. Many brokerage sites will provide trading simulators and expert advice as well as research and analysis designed for first time traders. Furthermore, these websites typically provide experienced online Forex traders who offer in-depth advice to forex traders of all levels. These tools are open to beginners with no experience to try.

Don't be afraid to step out of the domestic market of the regular stock exchange. Learn forex trading and take advantage of one of the fastest growing global investment opportunities. There are plenty of places for you to learn and to practice before you decide to put and real money up and take a risk. You can learn forex trading and succeed by choosing to take advantage of all of the tools that are available to you.

Sydney Johnson gives you more free information at Automatic Forex Signal Trading. Search other helpful articles at- Automatic Forex Signal Trading Articles. Click here http://www.forexminitrading.com

When Should I Take A Profit - 3 Selling Strategies

It doesn't happen often, but when it does, its tough to contain your excitement. The stock you bought at $0.95 is now worth over $2.30, and you begin to imagine what you can buy with your new found wealth. A car? Down payment on a house? We've heard the trading mantra to let your winners run. So when you are up over 150%, what do you do then? Does the same advice hold true?

The biggest challenge that any trader will be faced with is when to sell. That becomes even more difficult when emotion gets involved. It tough enough fighting the emotion to hold onto a losing stock. It's even worse when facing the decision to sell. You're worried about selling too early, missing out on even more gains, and you're worried that if you dont lock in your profits now, you're going to lose them. Its natural, but, you have to fight it.

So what do you do?

The first thing to remember that while greed is good, too much of a good thing isnt. Pigs get slaughtered. While it may be an over used cliche, its funny how true it is.

You have 3 strategies to choose from:

1. Sell 100% of your position

Nothing wrong with taking your money off the table. Taking your profits is what its all about. The key here is not to look back. Enjoy your profits, turn off your computer, walk away from your computer, and think about how you're going to reward your good fortune.

2. Sell 50% of your position

This is the best way to hedge your bets if you think there is still more upside, while minimizing risk. Now you are risking the same amount of capital that you started with. If it moves lower, then you know what to do with the other half.

If the stock does retrace, and appears ready to make another move, you can re-enter the position while lowering your risk at the same time. If the stock moves from a high of $2.30 and moves back to create support at $2.00, you know where the downside risk is.

3. Don't sell, but wait.

If you are an experienced technical analyst, then just wait for your sell signals. You may not be able to time the top, but you'll know when the sellers are about to leave for the exits.

There is a 4th strategy that you can take, however, it involves a mindset more than anything. If you're like me, its easier to sell if my stop loss point is hit than it is in trying to figure out if there is more upside. What I do, is I take the current price, and use that as my entry price. So if I bought the stock right now, where would I set my stop loss point? If its hit, I sell. If it moves higher, I use the same exercise.

Its important to remember that these strategies work well for the short-term trader. If you're in it for the long haul, you'll have a different set of rules to follow.

If you start thinking about the amount of money you have made, or might be losing by selling slightly lower, do yourself a favor and just sell. Your emotions have the best of you. On the other hand, if play it like you just entered, your focus in on the share price, not the amount of profit you have.

Looking for tips on investment club accounting software, stock market investing or corporation bonds rate? Visit InvestorandTrader.com today

Forex Trading - Spotting the Big Trends For Big Profits Part 2

In part 1 we looked at how human psychology pushes prices away from fair value.

When there are extreme moves away from fair value you can make a contrary trade to the majority and pile up big profits with low risk.

So what tools do you need? Lets take a look.

As a general rule these tools will work in any market not just forex markets.

What sets ups do you look for?

Generally you want a set up that is the news where there is no end in sight to a spike move.

This generally indicates that greed and fear have taken hold and the market being looked at is emotionally driven and away from fair value.

This happens all the time:

The recent spike in crude oil, the 87 stock market crash and many others including in the forex market.

First place to start

Is the chart look for huge price spikes in short time spaces accompanied by experts and the news telling you there is no end in sight.

Now delve a bit deeper to see the true picture.

Useful technical tools are:

RSI, Sochastics and Bollinger bands

Then add in these sentiment tools to the mix.

% Bullish

This indictor is a poll of people, experts, brokers etc that have a view or interest in the market.

When this poll indicates above 70% are bullish the market is in overbought territory and when below 30% is in oversold territory.

In the currency markets we like to look for even more extreme readings of below 20% and above 80%

Commitment of Traders Net - Traders Position Report

This is a tool used for years by futures traders and shows the breakdown of open interest among three main participants.

We will explain what it means in a minute buy here is its definition of the groups.

Hedgers The smart money commercial traders

Large speculators These are normally large funds with reportable positions

Small speculators everyone else.

The commercials are long term traders and are close to the fundamentals and move very slowly they are hedging not speculating and not influenced by greed or far and are the smart money.

Speculators on the other hand, both funds and small speculators, are driven by greed and fear

If you see a set up where commercials start to move the opposite way to speculators at a market top or bottom and hold an opposite extreme, then prices have moved to far from fair value.

With the commercials taking and building the opposite position to speculators in a rampant bull or bear market you know prices are probably due to re bound.

You must only use extremes with this tool and this normally means 8 months to 2 years.

Breaking it down

Study chart first, look for experts telling you there is no end in sight to the move, then look at % bullish and then net trader report.

Finally, use the technical indicators to confirm the move.

These moves do not happen often.

Maybe a few times a year.

But when they do

You can zero in on a contrary trade that not only offers huge profit potential but offer low risk.


On all aspects of becoming a profitable trader including features, downloads and your essential FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

Discover the Biggest Trading & Investing Mistake

Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets option trading, forex trading or currency trading, stock trading, future or commodity trading etc in such a short amount of time?

Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important. On the contrary, if trading is not treated as other business opportunities, the new sales and trading job will cripple the trader. You must develop a purposeful or industrious undertaking to learn how it works. Would you conduct business as a brain surgeon with out a college or university degree? I do not think so; similarly, the same course of action holds true for trading success.

The secret of my success required an earnest and conscientious effort on my part. This action accomplished something to the point of pure boldness; in other words, no matter how boring or non-important you think learning how to trade may be, it must be done to insure a success story.

Every successful company needs a business plan. Yet, when most people take a gamble on the securities industry, they fail to put a trading plan into place. In other words, they end up going on an emotional roller coaster, governed by how the market performs.

Without a trading plan, the majority of traders approach the financial market in an inconsistent manner - i.e. they follow their whims. The typical pattern may include the following:

Day 1 - experiment with option trading
Day 2 - randomly select any online trading brokerage firm.
Day 3 try out future trading
Day 4 read about oriental trading then decides to go into that direction
Day 5 change mind completely and try currency trading or forex trading
Day 6 try day trading then in midstream chooses to hold trade for the long term
Day 7 venture off into stock trading
Day 8 dabble in commodity trading
Day 9 give up because you think it is a hopeless cause.

This example is meant to look confusing. Similarly in the illustration above, this trader may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely set of new rules.

Unfortunately, with no consistent approach, your trading decisions, governed by emotions, are doomed to failure here is why.

When faced with losing money in the market, what do traders do? Usually, they end up rationalizing to hold on to a losing stock. The driving force behind this is that they do not want to be wrong. They let their ego get in the way of making profits.

LOOK! Let us set the record straight. THIS IS A FIRM FACT - not every trade will be a winner. You will not make the maximum profit out of every trade. There is no Holy Grail trading system! You just need a trading plan, which matches your personality.

When I say trading plan, I am not talking about fundamental analysis or technical analysis specifically, I am talking about setting up a simply a set of guidelines to follow regardless of what stock selection method you use.

In fact, through a study of successful traders, I found there are many different trading methods for entering a security. I have seen people use technical analysis; fundamental analysis even astrology to determine when to enter a trade. Despite these varied entry methods, one component remains the same among successful traders they all have a trading plan that suits them.

In fact, successful traders have a written plan and my friend this is the essential component to their success. I guarantee that investors who stick like glue to a trading plan are the ones who make NOT LOSE MILLIONS of dollars in their activities of online investing.

David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.

His most recent course Ultimate Trading Systems is a step-
by-step trading roadmap to designing profitable trading
systems. Learn how *you* can become one of his students.
Click Here ==> http://www.ultimate-trading-systems.com

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==> http://www.ultimate-trading-systems.com/stocks.html