10 Steps To Professional Day Trading

Everyone trades a little differently. The trading method outlined below is MY personal approach to trading. This method has worked for me for the last 20 years, and has helped me to avoid big draw downs since the mid 1980's. My trading strategy has helped me to make a good living trading.

It takes some time to learn my method of trading because it's based on tape reading and getting a "feel" for the market. This is *not* about a fast,easy formula to "get rich quick" while you sweat out every trade. Instead, this is about developing confidence and trading consistently without fear and without big draw downs.

Here is my 10 Step Approach to Learning My Style of Trading:

1. Practice exiting trades at break-even, using a one-tick target, a two or three tick soft stop (mental stop) and a 1.5 point hard stop. Never *allow* the market hit your hard stop. Exit by moving your target toward your hard stop, not by moving your hard stop towards your target. With time, all of this must become a reflex. You won't always be able to keep your losses down to 2 ticks, but only on rare occasions should you find yourself letting the market hit your hard stop. ("Rarely" means only about once every 50-100 trades after you get the hang of it.)

Even though your entries won't be good enough in the beginning to make a profit trading these tight soft stops, your entries will gradually improve until you turn the corner and become profitable.

Learn exits and entries separately. Don't let the one influence the other.

Taking losses this way takes dedication and discipline, so stick with it. It's the key to confident trading. If you never take large losses (and rarely medium size ones), the fear of loss pretty much goes away, and your confidence grows. Especially after your entries improve enough to support a "scalping" type exit strategy.

2. Every trade *in all market conditions* begins as a scalp. Let me clarify this: if you're in a choppy market and you're looking to get small gains, like a point or so, manage your initial hard and soft stops *exactly* the same way you would in a quick trend or any other type of market. That means keeping losses as close to 2 ticks as possible, taking lots of break even trades and exiting every time the market doesn't give you *instant gratification* (within a minute or so).

No matter what the market is doing, you must demand that it moves in your favor right after you enter, otherwise you get out as close to break even as possible. This means you'll be closing a lot of trades near break-even within the first minute. This is the foundation of learning to trade for consistent gains.

3. Don't worry about the commissions on break-even trades. If you do, you'll hold on to losing positions, begging them to turn around for you. This is called *hoping.* In this business, this type of *hoping* is the kiss of death. Your money-making trades must move your way in the first minute or less. When trades don't act right in the first minute, most of them will hit your hard stops.

So don't get hung up on the fact that your broker loves you. Who cares if he/she makes a living?

Your concern is *limiting losses*. I care more about this than anything else in trading. (Well-timed entries make my tight soft stops possible, so they're almost as important as the exits.)

4. Practice your entries until your timing is so good that you can *reasonably expect* the market to go your way immediately, before it goes more than 2 ticks against you. This is not easy at first, but if you stick with it, you'll get it.

5. Practice fading the emotional extremes on your entries. (Fading means entering in the opposite direction of the market's last move.) When an extreme NYSE-Tick (often above 1000 or below -1000) occurs at the same time the market accelerates into a support or resistance area, look for a price stall or reversal and fade the move. Fade the emotion.

6. Rarely, if ever, *chase* the market on your entries. Wait for a pullback to get onboard a trend.

I favor shorts over longs... I can get out of a short position quicker than I can get out of a long position. I don't know why. I like to say that I "see gravity better than helium." In the rare strong-trending markets where I may chase an entry, it's going to be a down trend, not an uptrend. I don't trust up trends enough to chase them. Maybe it's just a personal quirk and maybe not. I honestly don't know.

But it's interesting to note that most (not all) professional traders I've met are Bears and prefer short positions over longs. You should give it some thought and find out which direction works better for you. Are your losses bigger on shorts or longs? Specialize in one direction and trade the other direction only when things are looking real good.

7. Never let a gain turn into a loss. This will mean getting out of most trades a little (or a lot) too soon. You just have to live with it. Swing for home runs (greed) will ruin your trading. There is no mechanical formula that I know of, (such as, "move your stop to break even after you get 3 ticks gain") that will work. You have to develop a feel for how the market is acting at the moment, and use your feel to reduce your target or advance your hard stop. This comes with experience.

8. Develop a feel for the big picture movements of the market, not just the intraday action. Use the end-of-day market internals to analyze the market's mood and develop a daily bias.

9. Practice does *not* make perfect. Only *perfect practice* makes perfect. I learned this in my younger years, pursuing a professional baseball career. Perfect practice will keep your losses smaller than your gains in the trading business.

There are a lot of things involved in perfect practice. When you get tired, or when the phone rings, or whatnot, *don't trade*. Always, *always* exit trades exactly the way I've outlined above on every trade in every market condition. Always *wait* for your pitch, the well-timed setup for entering. Don't practice sloppy entries just because you're bored. Only perfect practice will help you. Anything else just amounts to practicing bad habits.

10. Get a mentor. I traded for 6 years before I learned to keep my losses small. My trading turned around immediately after I met my mentor and talked to him on the phone for one week. Is there any serious profession that you can learn without a mentor? Maybe there is, but I don't know of any. It's certainly not trading.

Mike Reed is author of TradeStalker's RBI Trader's Updates. He has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. He will be offering "live" training online as well. http://www.TradeStalker.com

Copyright 2005 Mike Reed

FOREX Trading 101

Welcome to the exciting and often very profitable world of foreign exchange trading or FOREX for short. Forex trading is the trading of different foreign currencies against one another, taking advantage of their ever fluctuating values to make very nice profits.

Forex trading, or currency trading, used to be out of the reach of the everyday investor until recent technological advancements took Forex out of the hands of large banks and institutional traders, and put it right in front of anyone with a computer and internet connection. Now there are dozens of Forex trading platforms available from a wide selection of brokers. Now anyone can learn to make money trading the currency market!

Although the major focus of the investment world appears to be on stocks and bonds, the currency market is the oldest and largest financial market in the world. The FOREX is a world-wide market, therefore, it is open 24 hours a day, 7 days a week. This eliminates the closing/opening gaps you see with traditional stocks ever morning. The Forex market trades approximately $1.2 trillion every day, making it a very liquid market, you'll never have a problem filling your buy or sell orders.

Forex trading is done with pairs, that is either buying or selling one currency against another currency. You profit from Forex trading when you take a position in a currency that you appreciates against the currency it is paired against. The great majority of daily Forex trading involves four major currency pairs. Currency trading usually involves the British Pound against the US dollar, the Euro against the US dollar, the US dollar against the Japanese Yen, and the US dollar against the Swiss Franc.

These four pairs are displayed on the FOREX as: GBP/USD, EUR/USD, USD/JPY, USD/CHF.

One major benefit of trading the Forex market, is leverage. Because of the liquidity of the Forex, most brokers offer the option to trade on margin with a leverage ratio as might as 400! Providing you with the opportunity to invest with a much small amount of capital and still pull in substantial profits.

The best way to get a grip on the FOREX is to educate yourself as much as possible on FOREX basics. Check out http://investing4dummies.googlepages.com for more information on currency trading and learn how to trade like a pro!

Forex - News Trading For Profit

The foreign exchange (FOREX) market is the largest financial market in the world, moving approximately $2.0 trillion per day. That is a sum virtually unimaginable to most of us. Unless you are a mathematician, engineer or government economist, you will probably never even have a legitimate reason for writing a number with as many zeroes. Yet, you may now participate in this vast and dynamic market as a trader, even from the comfort of your personal computer at home. Depending on your trading approach, you may be informally classified as a day trader, swing trader, long-term trend trader, news trader or some combination of these. We will focus on the news trading category to highlight the potential for profiting from the FOREX.

A news trader depends on the expected price movement resulting from the release of certain economic news as a basis for trading currency. News reports have the potential to move the FOREX market in a major way. There is a lot of profit potential in the resulting volatility. A lot of the economic news on which a news trader depends is contained in various reports regularly issued by the government of various countries. The federal government of the United States is the source of many of these reports which are released, more or less, on a consistent and regular basis. Many of these reports, or commentary regarding them, can be accessed from the television, internet or via paid-subscription news services. Speed is often highly emphasized as a primary factor in the way the news is received. Some strategies depend a lot less, if at all, on the speed of receiving the news or on the direction of the market once it is received. There are certain reports that tend to affect the market more than others. One example is the non-farm payroll report.

Within the past ten years, the door has opened to allow individual investors to take advantage of the FOREX market by having their orders executed through a retail broker. Most of these brokers will provide some kind of online platform through which the retail customer will enter their trades. This can be done without the necessity of having to actually speak to the brokers representative. In addition, proprietary software packages are available that automate both news trading and day trading, easily interfacing with some brokers platforms. Most broker-provided platforms are usually open 24 hours per day, as is the FOREX itself, allowing for round-the-clock trading. The market is usually closed from Friday at 4:00 p.m. EST to Sunday at 4:00 p.m. Most of the regularly occurring news events are scheduled during the hours the market is open.

Trading the FOREX, though potentially lucrative, should not be undertaken without first receiving sufficient education through a solid training program. Such programs will cover not only the opportunities in trading, but will also arm the student with knowledge about potential pitfalls and ways to manage the inherent risks of the marketplace. Specific instruction is often given on whether to trade at or near the time for news releases. Within the past five years, more and more trainers and their systems have focused on various approaches for news trading. Previously, news trading was thought to be far too risky, due to the uncertainty and unpredictability of a fast-moving market at such times.

While there are still some purveyors who doubt the possibility of profitable results for trading the news, students of some programs have shown remarkable results by utilizing relatively simple strategies for high probability trades. Some are even able to achieve a twenty percent per monththats right, per monthreturn on their investment, trading the news just a few times per month. This kind of performance should make most fund managers drool. Whether this can be done on a consistent and regular basis is dependent on the training, discipline and strategies of the trader as well as on forces at work in the market.

While there are no guarantees of success in trading the news or utilizing any other approaches to the FOREX, some basic guidelines are in order to help the trader prudently navigate the undercurrents of the market. First and foremost is education. It is imperative that a potential FOREX trader get a good understanding of the various aspects of trading. Training does not have to be overly expensive, even for good programs. One training program offered by Winning Traders Association (WTA) of Downingtown, Pennsylvania costs less than $300, including lifetime support and twice-per-day training sessions. Sometimes, education may be as simple as reading and understanding a well-written book on the topic and followed up by asking questions of experienced traders, who can be found online. Brokers can also provide valuable courses and information. Since they are trying to attract your business, some brokers will offer free or discounted courses when you open up and fund a trading account with them.

Second, choose a broker with a good reputation among traders. Various online forums can be helpful in this regard. For example, does a broker put wide spreads on the currency pairs and does the broker increase the spread during or before a news release? A low spread is preferable to a higher spread, all other things being equal. The spread represents how much the broker gets paid, and, therefore, the more the broker makes, the less the trader can keep from the profits made. Try to determine if the apparent low spread is, perhaps, a trade-off for something else lacking in the brokers program. Take, for example, slippage, which is what happen when the broker cannot fill your order at the requested price, but then fills it at the next available price, sometimes too far outside of your range for profitability on the trade. The negative impact of this experience could be minimized, if the broker allowed the trader to opt out of the trade when the order cannot get filled in the requested price range. Often, there is no such opt-out or automatic order cancellation. In this scenario, having a low spread does not do the trader much good, if the broker cannot get the order filled at a reasonably profitable price level.

Third, do not yield to the temptation of greed by trying to get rich overnight. As in the stock, futures and other financial markets, it still rings true that pigs get fat and hogs get slaughtered. The innate proclivity of mankind for greed has been the downfall of many a trader. Proceed cautiously, patiently and prudently as a means of surviving one trade and being left standing to trade another day. To the extent possible, calculate your risks before entering the trade. No one can make all the pips to be made in the FOREX, so dont attempt it. Furthermore, it is well-known that one should not invest more money in a trade than one can afford to lose.

Fourth, stick with your game plan when trading. Even after learning highly successful strategies, test them in your demo account until you are very comfortable with the strategy. It is important to note that it is not always the most sophisticated strategies that make the most profitable trades. In fact, you will probably find that many of the simpler strategies are the ones which consistently rack up the winners. When you graduate to live trading with real money, continue to apply the high-probability strategies over and over again. While no trader can boast 100% winners all the time, the goal is to be consistently profitable over a period of time. In the end, you want to have more wins than losses with the average dollar amount of the wins exceeding the average dollar amount of the losses.

Finally, while news trading does not have to be an exclusive approach to trading in the FOREX market, it is certainly a powerful plan for helping to build your overall portfolio and should, therefore, be given serious consideration to add to other strategies in your arsenal for achieving financial success.

If you are ready to change your future by stepping into the exciting world of trading FOREX, go to winningtradersassociation.com for more information. Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.
Sandy Robinson, J.D.
Copyright 2007

The Two Tools of Money

This post is focused on how money works in the economy. It directly relates to the policies that are used to control money directly influence the behavior of the real estate market, including the increase or decrease in home values. Having a basic knowledge of how money is supplied to the economy can help homeowners understand how economic-related hardships become more probably at certain times, and how best to take care of their personal finances in any economic cycle.

The mechanisms of money are controlled by two parties: the federal government and the Federal Reserve System. The government controls the supply of money through a process called "fiscal policy." The Federal Reserve Bank controls the supply of money through a process called "monetary policy." We will briefly discuss each of these policies, how they are enacted, and the eventual repercussions within the economy.

Fiscal policy is controlled by the federal government through the tax policy and government spending.

Through the use of taxes, the government can indirectly increase or decrease the supply of money that consumers and businesses have access to. When the government lowers taxes, everyone has more money to spend on other items, such as new homes, personal goods, or business equipment. If taxes are raised, the government collects more money from everyone, thereby decreasing the amount of money in the economy. This causes a general increase in prices due to the higher demand for fewer dollars.

In reality, this can be related to quite easily. If you receive a large tax refund every year, then you have more money to spend on items like TVs, computers, vacations, and food. If millions of people have extra money to spend on these items, then prices will increase to meet the rising demand. A small tax refund, or having to send the government a check due to higher taxes will cause you to spend less money on bills or consumer items. Prices will fall due to fewer people being able to afford items such as iPods or home additions.

In terms of the other method of influencing the economy, the amount of money the government spends can increase or decrease the supply of money in the economy. If the government increases federal spending to programs, then more money enters the economy. Alternately, if the government decreases its spending on federal programs, then less government money enters the economy.

In practice, this means that if the government spends extra on the federal forest fighting program, for instance, then more employees are hired and more firefighting equipment is purchased, which puts extra money into the economy. And if programs are cut or scaled back, employees are laid off and contracts are canceled for equipment, thereby decreasing the amount of money in the economy.

These are general explanations of the two main ways the government can influence prices of goods in the economy: through taxes and government spending. The effects of this fiscal policy techniques are felt indirectly by the economy as a whole and do not have the same level of impact as the monetary policy practiced by the Federal Reserve Bank.

The Federal Reserve Bank is the central bank of the US and sets the interest rates at which banks can borrow money from the federal government. The Fed, as it is commonly called, can control the supply of money in the economy directly by a number of different tactics.

The first way involves the Fed purchasing or selling government securities, such as Treasury Bills. If the Fed buys large numbers of these, then they exchange money for the securities, and more money is put into the economy when investors exchange their Treasury Bills for money. When the Fed sells these securities, then they are exchanging money from investors for the promise of money in the future, and this decreases the amount of money in the economy. Investors trade their dollars for Treasury Bills, and the Fed holds onto the dollars, preventing them from going back into the economy to be used for other purposes.

The Fed also controls the amount of money that banks have to deposit with the Federal Reserve Bank. When banks have to deposit a large amount with the Fed, then this money can not be used for additional loans for consumers or businesses. This can raise interest rates, because more parties are competing for less money. If the Fed lowers the deposit requirement (known as the reserve requirement), then banks can use more of their money to extend credit to customers, and this money finds its way into the economy. Interest rates for loans and mortgages will go down, as there is more supply of money to be loaned out.

A final way that the Federal Reserve can control money is by directly raising or lowering the interest rate at which banks borrow money from the Fed. When banks have short-term problems paying extending credit or paying on demand deposits (such as checking accounts), they can borrow money from the Federal Reserve directly to meet their needs. If the Fed raises interest rates, then banks are less willing to borrow money and do not lend as much money, or lend money at higher rates. As the Fed lowers its rates, then banks can also lower their rates or extend extra credit, as their cost of borrowing decreases.

The Fed directly influences the economy by controlling the total supply of money by creating or destroying money and determining the rate at which consumers can borrow money.

Homeowners are the group most directly affected by these changes in the money supply. If home values decrease as a result of higher interest rates, or a recession in the economy, then homeowners in foreclosure may find that they owe more on their homes than the current value. They will have a hard time selling their homes to stop foreclosure, and may not be able to refinance at all.

Thankfully, the economy operates in cycles of increasing and decreasing values, with a general optimistic trend. This means that prices, even if they decrease, can generally be expected to increase to their original price in the near future and will almost always increase beyond their original price in the long term. Of course, this is only small consolation for foreclosure victims who would benefit from higher home values in the short term.

Hopefully, this post explains clearly how the supply and cost of money in the economy, with a focus on home values, is affected by changes in governmental policy and operational policy of the Federal Reserve System. It is meant to give homeowners a bit of information regarding the broader economic context of their fight to stop foreclosure. It is not meant to provide an exhaustive explanation of how our economy works, but merely to be a meaningful introduction.

Knowing that the economy operates in cycles that are affected by these two entities can help homeowners realize that a foreclosure season in the economy is just like any other season: it comes periodically, may have extreme conditions, but will eventually pass into a different phase leaving only memories.

The ForeclosureFish.com website provides free foreclosure help to consumers who are falling behind on their debts. With virtually hundreds of pages of information, homeowners can find the resources they need to prevent from losing their homes to foreclosure, and can begin the process of recovering financially. Visit the ForeclosureFish.com website today and learn how to avoid foreclosure: http://www.foreclosurefish.com/

How You Can Earn More From Auction

MAKE IT AT THE AUCTION All successful businesses are based on the simple principle - buy something cheap - then sell it at a mark up. Simple, in theory - but rarely simple in practice. One of the major entrepreneurs 'headaches' can be where to get goods to sell at a cheap enough price to allow a large enough profit. Fortunately, there is a way that problem can be solved - easily. Quite simply, auctions offer you the chance to buy all sorts of goods at under market value. It's then a simple matter to resell them, perhaps immediately, at in excess of market value. A clear, quick profit!

Auction buying is not just an aid to those already in business. There are many cases of people who do nothing but buy 'anything' at auction and resell for a profit. Just consider, it only needs a few items bought or sold a week with a few hundred pounds mark up on each to build a considerable income. You can be an auction entrepreneur in just part time hours. Of course, auctions are still shrouded in some mystery. That's what helps to keep the undetermined away from the profits. But, they are generally simpler to follow than they were. With a few visits you can be quite experienced at 'snapping up' bargains at auction and reselling for an immediate gain. Really, it matters not what you buy. Just consider an auction as a place where you can get things for a lot less than they are worth. That's nothing short of an instant money making opportunity! Valuable items can be bought for pence in 'job lots'.

Sometimes changes to pick up antiques.- Stock. Bankrupt trade stock, discounted lines, etc. are frequently sold off by auction. There are good opportunities here to buy up lines and then offer to traders or sell via market stalls etc. Tools/Plant. Items from the trade are frequently sold off by auction. This may include new and used items which can be bought up and then sold back to the trade. Do check items offered as, with many other auctionites, it may be up to the bidder to check whether they are working or not. - Farm Stock. Another popular auction line.But it is probably not suitable unless you have some experience in this area. - Property. A real potential winner with huge discounts available on property of all types. Do take legal advice, and advice from a survey or/ valuer though. - Art and Antiques. Offers profits to beat them all. Needs a little study of the business - but there are smaller markets you can try and succeed in. Not all auctions sell 'old masters' for millionaires only. Always remember of course that auctions do not always fall neatly into categories. Some may be a combination of several types - or completely new auction lines. Just keep your eye out for any auction - because it's almost always a chance to enjoy huge price cuts! There are directories available listing auctions and auctioneers. But, the cheapest way of finding them is to look in the Yellow Pages at your local library.

Check the index to see what different categories 'auctions' might fall into.It is wise to visit auctions before you even consider buying. Because, although they offer the same service they do work on different principles. Check, by observation, that the auction is fair. Auctions are, of course, working to get highest prices for sellers - but they should not be biased. Good auctions should display goods prior to the sale for inspection. And, they should issue a catalogue or list of what is on offer. The buyer accommodation should offer a clear view of the auctioneer during bidding. More importantly, the rules of the particular event should be displayed on site - and followed by staff at all times. Do ensure the auction you attend is fair to all buyers, and not favoring the 'regulars'. Also that the price is not artificially inflated by the auctioneer - it should be the demand that sets the price. Most auctions are honorable organizations, but there could be exceptions! Do stay behind after an auction has finished. This gives a chance to see if those who have bought are pleased with their purchases - or if any 'little disputes' arise.

A good guide to finding the best, most honest and most profitable auctions. Successful Buying at Auctions When you have gained a little experience at auction you can venture to make your first deal. And, there's no reason why it should not be very profitable. Do remember that most auctions demand cash on sale. So, take an appropriate amount with you. If this is risky ask for a bankers draft at your bank. This is really a cheque that cannot be stopped and most auctions will take them. At auction, goods are sold in lots. So, you will need to decide which interests you. It is a good idea to select 'substitutes' in case your choices are bought by someone else. To start bidding, the auctioneer will normally set a price. This could be far too high - or far too low. So, wait until a few bids have followed. You can then decide whether the price will allow you sufficient sale margin and start your own bidding. Each bid may rise in 1, 10, 100 or larger units. So you have to keep a check on the total carefully.

There is a good deal of showmanship involved in auctioneering and you'll certainly need all your wits about you. Perhaps the main aim is to ensure you only buy at good low prices. Fall out of bidding if the price is getting too high. Although experienced bidders may make strange signals to the auctioneer there is nothing wrong with making your bid quite clear. You can pick up the 'tricks' that others use in the future. When the bidding slows and the appropriate sum is reached the auctioneer will proclaim the classic 'going, going, gone'! When the hammer falls the item is sold at the final price. Most auctions will demand a cash deposit at the fall of the hammer. The only exception being if they require all bidders to register and lodge a deposit before the auction. The balance must be paid and your purchase removed within a certain time limit. Note that auctions operate on a 'sold as seen' basis and rarely give refunds. Only a few give a guarantee against faulty goods. So, bid enthusiastically, but with care taking professional guidance as appropriate. For best results you should arrange to process and resell your purchase immediately. Don't sell at auction though - the profits won't be enough. Best profits are perhaps to be found through newspaper advertisements. Then - when you've cashed your purchase in and made your profit why not reinvest the proceeds in an even bigger auction deal? Some possibilities Following you will find a list of the proven opportunities auctions offer: - Cars.

One of the biggest auction money makers; huge discounts. But, do buy carefully as you have little protection against faulty cars, although most auctions have warranties against stolen cars. Follow all vehicle regulations - a car dealing license may be needed in some areas. - Household effects. Ideal place to start in auctions, buying up household items. The great thing about auction trading is that you can actually prove the potential to yourself before actually spending anything. Just go along to a few local auctions.Auctions are mainly a quick way of selling goods for vendors. And, they are also a way of selling things where any other techniques e.g. press advertising would be difficult. Because of this the prices are invariably far less than market price. Auctions are rarely an attempt to get more for an item than it is really worth, despite appearances to the contrary. But, of course, you would always guard against being over charged. Discounts at auction vary according to the type of goods sold, type of auction, type and number of crowd - even things like the weather. In some cases auction discounts have been quantified at as much as 80%! Rarely would the saving fall below 10% - but a reasonable ready accessible saving would be 20-30%.

Quite simply, the auction potential means you might buy an item (say a car) at 1,000 one day. Then, the next day sell it for at least 1,200 to 1,300. That's a onsiderable, instant profit for hardly any work; a way of making very quick extra cash.

Auctions are held the length and breadth of the country almost every day of the week.So, there will always be a chance to make money. It's not always obvious which are the best to attend though, and this will need some market research on your part. Auction Success Auctions are a unique opportunity in a way. Because, unlike other ventures you can't guarantee a certain trade week in and week out. Remember though, this means your income is limited by virtually nothing! It does not matter how little you know about auctions - or what you buy. Simply consider them as a way of getting attractive merchandise at very low prices indeed. A source only open to the most enterprising of people. 'Buy cheap, sell dear' is a principle that means nothing less than complete success. Exploit that principle and let auctions make money for you.

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Trading Baskets Part I

Q. What is a basket?

A basket is a group of up to 50 stocks that you can trade, manage and track as one entity.

In another article, I wrote about a rather conservative method of being in the stock market. See: "A Triple Dipper: How to Make 3 Profits on 1 Stock" at http://www.traderaide.com/Selected_Articles/Tripple_Dipper.html.

This time lets talk a little about trading "baskets". The definition above maybe needs to be expanded just a bit. You can trade baskets using longer term buy and hold strategies, a shorter-term swing trading approach or as a day trader. A basket of stocks is nothing more then any group of stocks that someone has grouped together for any of a number of reasons. They may be of the same sector, or they may be made up of a number of stocks in different sectors.

An example of a few baskets could look like what is sited below. To save time and space Ill use the stock symbols only. You can look them up later if you are interested. Lets say you see stem cell research as the thing of the future and wanted to be invested in it. If you dont know which stock is going to fair the best, you may want buy a basket of stocks that is made up of ASTM GERN and STEM. This would be a basket of stem cell stocks. Now lets say you think the Internet stocks look good and, again, you are not sure which ones will do the best. In your Internet basket you may want to pick up some shares of EBAY, YHOO and AMZN. Obviously your basket can contain any number of stocks you want. Many online brokers will actually allow you to set up baskets in your account, and you can put in a sell order all at once on the entire basket or pick and chose which ones you want to sell. Im not recommending these stocks in any way, shape or form, but merely using them as examples.

Okay, thats pretty basic, but Im sure you get the picture. The examples above would more or less be the type of baskets you would probably be thinking of holding for some time and not day trading.

Most day traders have an entirely different kind of basket of stocks. A day trader may have any number of stocks in his trading basket that he or she has been become very familiar with. They have studied them and even charted them for intraday movement (I hope) for some time and have learned the trading habits of the individual stocks. They have a fairly good idea of how the stock moves on a daily basis with or without news. They have knowledge of how it reacts to earnings, analyst upgrades, analyst downgrades and other events that may be reoccurring. They have also probably learned how they trade when hit by surprise events as well. They know which market makers to watch the closest. They also know who the main market maker in the stock is, often referred to as the axe.

A day traders basket may be any number of stocks. A good average could be somewhere between 25-50 stocks. But it may also be larger or smaller. I have known traders that traded one stock all day long and nothing else. I have known others that were able to watch 300 stocks. Personally, I think that is way too many.

When I was trading I had a basket of about 75 stocks. Some I knew were only going to be in play on news or when reporting earnings. Others were fairly reliable moves on a daily basis. And still others were extremely sensitive to any sort of news or event.

Today, if I was going to put together a basket of stocks, I would be looking at the following symbols: GOOG, TASR, TZOO, AIRT, QLGC, SYMC, PLMO, KMRT, EBAY, SINA, RIMM, RMBS, PCLN, and DCLK as well as other NASDAQ stocks. I would not over look New York Stock Exchange stocks, although many do. I would be looking at: MO, PFE, CAT, GE, GM, TYC, MRK, MOT, and others as well. Keep in mind, I am not recommending any of these stocks specifically for you to buy or trade. I am merely trying to give you an example of what a basket may look like. You have to decide yourself what stocks you would add to you your basket based on your own knowledge gained through experience and research on each stock.

I think every trader should have a basket of stocks he or she follows and trades. Day trading without your own basket raises the risk level and puts you in a position where you are always looking for something to trade. On slow days where the market is just not offering up much in the way of trading opportunities, you may have a tendency to jump on stocks, that under different circumstances, you would have passed on. Having your own basket of stocks will lower your exposure to risk. They may not move any better under slow market conditions, but at least you will have some knowledge of how they move. In Part II I will tell you about a special trading basket technique I used during the early boom days of day trading. It may still be a valid concept today.

No permission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and hot links included. We do request that we be informed of where it is posted so reciprocal links can be considered. Email floyd@sbmag.org.

Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in the late1990's both as a trader and as the moderator of one of the Internet's largest real time trading rooms. He is the owner of http://www.TraderAide.com , Strictly Business Magazine at http://www.sbmag.org http://www.FrameHouseGallery.com and http://www.EducationResourcesNetwork.com

Outlook and Strategy of Indian Stock Exchange Market 2006-2007

Indian Stock Market occupied a top slot in 2006, together with an unexpected fluctuation with sudden rise and fall, but maintained the sensex mark. In 2006, the Bombay Stock Exchange crossed the 10,000 level mark. There were speculations amongst the bulls at the Dalal Street (Mumbai) that sensex might cross 14,000 marks, but unfortunately the year 2006 ended with the average 12,500 level. Fundamentally strong, the economy was the main key but raising inflation rate and high crude oil prices applied brakes on its acceleration.

The Indian stock market raised to dizzy heights in a span of 194 days, from October 28, 2005 to May 10, 2006, with the BSE sensex rising from 7686 points to 12612 points, a gain of 4962 points. It then fell very fast to a level of 8929 points on June 14, 2006, registering a loss of 3683 points in 35 days. It has again reached a level of 12010 on September15, 2006, again of 3086 points in a span of 93 days and presently the market is trading in the region of 13250.Like April 2006, some felt that when the market rose high, that time has come for a correction and the market was totally overheated. Investors were of the view that when the market started falling and a negative sign was taking up, it could reach up to 9000 level, but the sensex has bounced back and reached 12321 points on last September 27,2006.

There are concerns over tight global liquidity and deteriorating trade balance. These may not check Indias strong economic growth. As India is getting younger and younger, its productivity is bound to rise. Investment in Indian market must be seen in a marginally different context. As much as 60 percent of the GDP is led by domestic consumption whereas other emerging countries are dependent on foreign market. For the next few months ending the financial year 2007,sectors like FMCG,pharma,retail,media and textiles looks attractive in terms of valuation.Basically,India ,a service driven growth story, has enough to offer since we are in the middle of a capital expenditure boom and rapidly expanding outsourcing.

Indias growth will be sustained and may reach greater levels if the government act on reforms front.Infrastructure, ports, roads, SEZ etc requires more attention and investment. Investment in 2007 will be the brighter period for any investor. Going by the fundamentals, most experts believe that for the next 6 to 8 months there is very limited downside risk at the current level. As per the Morgan Stanleys report, technically speaking, this quarterly period (June2007), the Sensex would reach the point 14700.Also in the near future, the Indian stock market will see foreign companies raising funds through Indian Depository Receipts (IDR).But at the same time we can see that the Indian capital Market is characterized by its high degree of volatility which has been instrumental in both creating and destroying the wealth of many investors.

Fundamental VS Technical Analysis

There are two main ways of picking stocks (or any kind of investment).

Fundamental analysis is concerned with looking at the economic fundamentals affecting the particuar stock (etc) and covers everything from the economy it operates in (interest rates, unemployment, exchange rates etc), through sector prospects (is the sector growing or declining, the competition etc) down to the particular stocks accounts, and management team.

On the surface it seems fundamental analysis provides a reasoned and rational basis for investment decisions. The problem is that the information youve based your analysis on (plus that you missed) is also available to everyone else - including the smartest pro traders and analysts, their super dooper computer models, and the inevitable snippets theyll discover that you wont. Result, by the time youve done your fundamental analysis your findings (plus the stuff you didnt take account of) is already reflected in the price.

Technical analysis is concerned with (dont laugh) trying to guess future price movements by looking at historic price charts. In theory this would seem about as useful as trying to guess price moves from studying tea leaves. Technical Analysis is dismissed as useless by academic, author, and succesful investor Burton Malkiel (A Random Walk Down Wall Street). And yet the fact that technical analysis is still widely used might just make it a proverbial self-fulfilling prophecy; ie a technical buy signal occurs, lots of people buy, the price goes up Though I suspect such a thing - if it exists - works only in the very short term.

Ultimately, the safest bet is simply to buy an index via a low-cost tracker fund, and thats where your core investments should be. Either in a managed fund, or (if you can afford it) in a broad spectrum of diversified stocks.

But if you want a bit of fun, with non-critical money, do your fundamental analysis, do your technical analysis, but leave the final choice to that little voice within - your intuition.

Johnny Finnis is editor of personalmoneymanagement101.com, a simple and unbiased introduction to finance and investment for ordinary people to make the most of their money. Have your say on our blog

Investors Taking the Path to Self Destruction, Happily Line up for the Great Financial Slaughter!

The International liquidity crisis will soon create a mess too big for anyone to easily recover from.

When our Strategic Oil Reserve System wants more oil we merely grind up some trees and rags to make paper to print lots of greenbacks, so we can trade a ton of them to the Arabs for a tanker full of oil! Surely someone gets burned in that deal - no wonder they hate us!

Both oil and gold are traded in the US dollar, so everyone needs to keep some on hand but gold and oil are essentially available "free" to us, so long as we have green ink to print with. The problem is that all Countries have now caught on to our "Ponsi like scheme" so everyone is burning their neighbor by printing fresh cash as more goods are needed!

Cash has become such a free commodity that investors are willing to accept stupidly low return rates for very risky paper assets, as if in a self destruct mode!

China is clearly in a bubble. Shanghai stocks are up 250% since 2005 - and 35% this year alone. Still, investors are so eager to get in at these prices that they take up Chinese bank IPOs at twice the PE ratios of banks in developed countries. And what do they actually get when they buy a share? No one knows what a bank chartered and regulated by communists is actually worth!

China is expected to accumulate more than half a trillion dollars in foreign exchange reserves - twice as much as last year. How does it get that money? It prints up currency of its own to buy the foreign currency from businessmen and investors - who are selling Chinese made goods (including stock certificates) to foreigners at a breakneck pace.

Investors not only take up but scramble to buy Hugo Chavez's paper Venezuelan bonds! They do so at less than 7% yieldbarely 200 basis points more than the sovereign debt of the United States of America.

Officially, the Venezuelan Bolivar is quoted at 2,150 to the dollar. On the black market it trades for 3,750 to one. And it's sinking fast - down 15% so far this year, so where is their justification?

Even long-dated dollar-denominated bonds issued by Iraq, trade at less than 10% yield.

From its recent high of 83.10 on April 9th, the US Dollar Index has fallen to 81.53, a 1.9% decline. That may not sound like much, but it works out to a 32.7% decline on an annualized basis. Given that one presently earns only about 5% per annum in interest income on their dollars, the loss in purchasing power is very obvious. You thus need to find assets that will rise at a 32% annual rate to keep up with the dollars rate of fall!

If our interest rates drop by 1/3 we would be OK but then who would finance our National Debt when Hugo pays so much more! The whole International financial mess must fall like dominos some time very soon, as all other Nations in the past financed with fiat money have failed, without exception!

Fred Peschel is a graduate Mechanical Engineer with 40 years experience in custom electronic design and manufacture in the high voltage test equipment area. Upon retirement he started studying self healing and in the last 10 years has become a world class expert on colloidal silver manufacture and applications. His ColloidalSilverResearch.com is the only manufacturer of commercial ionic colloidal silver generators, with extensive installations world wide. He is an avid student of finance and medicine.

Dr. iPhonestein

It's alive! It's alive! You can almost hear CEO Steve Jobs screaming from the back of a dimly lit laboratory at Apple HQ. While his masterpiece has been created and is in its infantile stages, he, much like Dr. Frankenstein, may have created a monster.

Let me rephrase that, his PR and advertising people may have created a monster. By becoming the most highly anticipated gadget this side of the Milky Way, any minor flaw or hiccup experienced by first gen iPhone users is sure to cause more than a little indigestion with the folks whove shelled out part of their pension to purchase the handheld and switch service providers.

Most doubters of the iPhone are immediately recanted by some Apple fan who points to the iPod as an indicator of the iPhones assured success faster than you can say Newton, the common iPhone doubters comeback. However, both of these arguments take a backseat to another quick phrase: first generation. Although the iPod may be more popular than Luke Perry in the early 90s, we mustnt forget that it was, at best, a cast member on the Surreal Life before it was introduced to Windows and had its kinks worked out in subsequent generations.

Where the kinks in the first gen iPod and the potential kinks in the first gen iPhone differ is the fact that there were essentially no expectations for the original iPod. As far as we knew, it was another attempt to make a decent mp3 player by a computer company who had lost its luster over the years, and little more. The iPhone, on the other hand, has become somewhat of a cultural phenomenon. As you read this very article, there is no doubt a group of techies gathering food and supplies to stock their tent for the next three and a half days outside in the heat in front of an Apple store.

You can imagine the joy they will feel when they get their cellophane wrapped cardboard box filled with the relic they have been lusting over for the past six months. Unfortunately for Apple, you can also see the disappointment on their faces when any minor element of the device fails to meet expectations or has a glitch; and for someone who has been psyching themselves up for such a moment for several months, there is at least one element that is bound to disappoint.

It is quite possible, some might say probable, that Apple will come out with a very good phone. But very good, quite frankly, isnt good enough. Apple has put its baby up on a pedestal that cannot afford just good reviews. In the words of Wayne Campbell (of Waynes World and SNL fame) what the iPhone must do is Something extraordinary. Something big. Something mega. Something copious. Something capacious. Something cajunga! for it to meet the expectations of millions of Americans who have already expressed interest in adding it to their mobile repertoire.

With reviewers salivating at the chance to take their jeers and cheers at the second-coming of mobile devices, we will most likely find out by Friday evening whether the iPhone is a hit, or whether it will be replacing Screech as the bad boy in the next season of Celebrity Fit Club.

Jordan Corning is a mobile enterprise solutions enthusiast. An analyst with Minneapolis based consulting firm ITR Group, Jordan enjoys exploring new ways in which mobile technology can offer significant contributions to the business, educational, and consumer worlds. For more info, visit the ITR Group website @ http://www.itrgroupinc.com or visit his blog @ http://www.iphailure.com

Forex Trading - The Perfect Market

The forex market is considered to be one of the most highly profitable markets for one great reason you are able to create superior technical analysis, which will therefore always increase your chances of making successful trades.

The Currency Cycle

One of the reason, we are able to make superior analysis in the forex market is due to the fact we are trading in a circular market. One of the trends associated with the currency market is that it generally correlates with economic cycles. These cycles usually repeat themselves often, which allows the average investor to extrapolate data more accurately.

Once a trend is determined in a particular currency, we can then make predictions on whether or not the price is going to go up or down in the overall scheme of things. There is nothing more important in forex trading than discovering a trend that seems to repeat itself on a regular basis. This allows for any trader to make the investments with a high chance of obtaining successful trade after successful trade.

How Does Forex Compare To Other Trading Options

When considering the ability of the forex market to reveal certain repetitive trends, there is no question as to whether this market is the most profitable. When trading in the stock market for example, an investor is required to make predictions as when the price of a certain company will change. Predictions can be hard to make in such a random market, as it relies on the ability of a company to rise and fall. This usually makes it very difficult to acquire trends that repeat themselves time and again.

Top Technical Analysis

When it comes to fundamental analysis in the trading sector the accuracy of analysis is directly determined by a market level of normality. Basically all this means is the amount of skews that exist along the price line, the lesser the easier it is to make analysis.

The forex market is by far the most normal of all markets to trade in. Future markets are a good example of a skewed market, which can be seen by less than normal distribution and where accurate analysis is almost impossible to determine.

The one thing that is common amongst all methods of trading is that technical analysis is the MOST important thing to consider. The better you become at extracting relevant data, followed by determining future results, the more successful you are going to become as a trading investor.

If you want to learn more about forex trading or anything else about the forex market then Forex-Trading-Platform.org is the place to go for all the best FREE information!

Forex Trading - Tips For Dealing With Leverage For Big Gains

Forex trading is lucrative because you can use leverage and most brokers will allow you to leverage your deposit by 200:1, while it can make you big money it can also see you wiped out quickly.

So how do you use leverage to seek big gains, while at the same time avoiding big losses?

Lets take a look.

Risk per Trade

Most traders simply think their risk per trade is their expected return their stop protection but this is rubbish. This is simply a mental guess and what may look on paper like a good risk to reward trade is not.

The fact is traders make calculations that lull them into a false sense of security.

When trading FX start by looking at the volatility of the market and how to deal with it.

Placing Stops

For example there is absolutely no point in placing a stop close when it's within normal volatility for the currency.

Who does this?

Day traders are prime culprits.

They think that if they place a stop just outside the daily range it gives them a good chance of winning, in fact the reverse is true as volatility can and does take prices anywhere in a day, the risk of them losing is guaranteed over the longer term.

If you are trading you need to have a stop behind a key resistance or support level and if possible on stop close only basis. Daily volatility often carries trades through support and resistance takes out stops and then closes below the level.

Trailing stops

Never be tempted to move them up to quickly to lock in profits.

You need to understand the volatility of the market and keep stops back - way outside of short term normal market pullbacks. Accept that if you are trend following, that you will have to give a big, chunk of your gains back the market when the trend ends.

This wont matter if your trend following you cant predict the end of a trend and if you got 70% of every major trend you would make a lot of money.

Cut Your Trading Down

You dont get rewarded for how often you trade you get rewarded for making money.

The really good trades only come around a few times a year in each currency, so be very selective and when you see these trends - risk as much as you can.

I know traders who make 100% or more on an annulized basis and they trade around six to ten times a year! They do so well becuase they are only interested in the big high odds trades and these only occur ocassionally.

The fact is most traders, trade low odds opportunties to often and lose - dont fall into this trap.

Leverage can make you a Lot of money but it needs to be handled wisely.

Accept that you have to take calculated risks, trade only when the time is right, follow the trend until it reverses and dont try and predict when it might end - let the market tell you that.

If you do the above you can use leverage to your advantage.

GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER

On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html

It's A Bullish Signal When A Company Buys Back It's Own Shares!

Dear Fellow-Investor.

Shareholders and investors of two blue-chip companies were treated to good news on Monday July 9, 2007, that carries potentially bullish long-term consequences.

First, Johnson & Johnson announced the repurchase of up to $10 billion of its common stock. Then ConocoPhillips announced the repurchase of a $15 billion share buyback programme, representing an increase of $13 billion above the $2 billion that remained in a previous buyback program.

But why is a buyback programme a positive sign for investors? Why would a repurchase carry such bullish potential? One explanation is in terms of simple supply and demand: Repurchases reduce the supply of a company's outstanding stock, which should increase the price of those shares that remain.

Another explanation is that companies that repurchase their shares are so confident about their future prospects that they are willing to commit corporate resources to buying them. This is worth paying attention to, since a company's executives and Board of Directors have access to insider information that the rest of us do not.

Like such, repurchase programs are analogous to corporate insiders purchasing their companies' shares for their own accounts. Both signal confidence in the company's future prospects which again is a bullish signal.

In a nutshell:
When a company reduces the amount of shares outstanding by declaring a stock buy back program, each of the shares becomes more valuable and represents a greater percentage of equity in the company.

So when putting together your portfolio, you could seek out strong and solid companies that engage in these sorts of pro-shareholder practices and hold on to them as long as the fundamentals remain sound.

One of the best examples is the Washington Post, which at one time was only $5 to $10 a share. It has traded as high as $650 already. That what I call long-term value!

But be aware! Even though buy backs can be huge sources of long-term profit for investors, they are actually harmful if a company pays more for its stock than it is worth. In an overpriced market, it would be foolish for management to purchase equity at all, even in itself.

Instead, the company should put the money into assets that can be easily converted back into cash. This way, when the market swung the other way and is trading below its true value, shares of the company can be bought back up at a discount, ensuring current shareholders receive maximum benefit. Remember, even the best investment in the world isn't a good investment if you pay too much for it.

Yours in Successful Trading

Ricky Schmidt

http://www.stockbreakthroughs.com

Why You Need A Penny Stock List

Why do you need to compile a penny stocks list, and how should you go about doing it? The answers to those two questions will give you the understanding you need to level the penny stocks trading field enough to give you a chance at success. A penny stocks list which is the result of your careful due diligence will help you focus on the stocks most likely to appreciate short term, and thats what youre after.

Your penny stocks list will allow you to track the stocks you are watching with ease. Trying to monitor the thousands and thousands of penny stocks each day is simply impossible, and by the time you had looked at even one percent of them the trading day would be over.

Keeping Track Of Your Holdings
Having a penny stocks list will also allow you to have at your fingertips the positions you hold in your penny stock portfolio. Youll know how many shares you have in each company, so that you can track your gains and losses with your brokers online quotes. Youll be able to sell as soon as you are in profit, locking it in. The best time to take profits in the penny stock market is as soon as you have them, and not a minute later.

You can devote a part of you penny stocks list to the stocks which you are considering for later purchase. You can pick up on any significant movements in their prices, and if you see a positive one, try to determine if it likely to continue. If so, you can buy the stock and move it to your monitored list, to sell as soon as you are in profit. Having a penny stock list is the best way to time your entry and exists into different stocks.

You can make you own penny stocks list by researching which financial sectors are doing well, and then looking for penny stock companies in those sectors which may be good companies but are simply lagging behind the bigger players in their industries. Very often the small companies in an industry are the last to benefit economically from a trend, but when they begin to catch up, their stock prices can soar in a very short time.

Separating The Good From The Bad
Youll learn fairly soon that most of those who do well in trading penny stocks rely on their penny stock lists to help them profit. They use the lists to determine which companies have a genuine product or service for which they are trying to build a market, and which ones are simply stock-printing machines touted by unscrupulous stock promoters. A penny stock list will help you separate the best of the penny stock world from the worst.

You can also find more info on Penny Stocks and Top Penny Stocks. Pick-pennystocks.com is a comprehensive resource to get information about Penny Stocks.

Will Spot Uranium Prices Reach $100/pound?

Energy guru Bill Powers focuses on investment opportunities in the Canadian energy sector, mainly independent oil & gas companies and now uranium companies. We talked with him and he thinks uranium could reach $100/pound this decade.

Interviewer: A lot of newsletters cover oil and gas, but you picked uranium, which hardly anyone was covering until recently?

Bill Powers:

I feel the uranium market right now is the worlds most unbalanced commodity market. In a sense, the world, through the nuclear power industry, consumes approximately 172 million pounds of uranium per year, and the world only produces about 92 million pounds of uranium per year. The supply deficit is made up through above-ground inventories, which are being worked down pretty quickly. Those numbers were supplied by Uranium Information Center. A lot of my information comes from the U.S. Department of Energy (DOE) or the Nuclear Regulatory Commission. For example, I discovered from them that the U.S. produced, through the 1980s, about 43.7 million pounds of uranium. And by 2002, the U.S. only produced about 2.34 million pounds of uranium.

Interviewer: Where is uranium being produced in the United States?

Bill Powers: Wyoming. There is also a uranium facility in Nebraska. I think there are two in-situ leach plants in Wyoming and another one in Nebraska. There are a couple of phosphate farmers in Florida who produce uranium. I believe there is a facility in Texas that also produces uranium. For the most part, the uranium industry in New Mexico has just about been wiped out. The very low prices that weve seen, for about twenty years, have pretty much wiped out the entire U.S. uranium industry. To go from over 43 million pounds to less than 2.5 million pounds, it has really only allowed the most productive, highest margin and most efficient mines in the country to continue operating in that environment.

Interviewer: So that makes the U.S. a net importer of uranium?

Bill Powers: Absolutely. According to the DOE, US imports have gone from 3.6 million pounds per year in 1980 to 52.7 million pounds per year in 2002. A lot of it comes from Canada, but a significant amount is coming from the Russians, through a program called HEU (highly enriched uranium): the megatons to megawatts program. Its where the United States Enrichment Corporation, as well as its partner in Russia, took highly enriched uranium and broke it down into lower grade uranium that could be marketed to nuclear power companies throughout North America and around the world. This has been one of the reasons weve had lower prices. All of this uranium has cluttered the market the past few years. And the US Enrichment Corporation has a lot to do with why weve seen low uranium prices here in the States. I had a conversation with them about the fact that since 1998, when they became a public company (after being a company that was owned by the U.S. government), their long-term inventories of uranium had declined. When they became a private corporation, the U.S. government gave them 7,000 tons of enriched uranium and 50 tons of highly enriched uranium. They have been selling about 6 million pounds of uranium into the marketplace every year since 1998. According to my conversation with them, they have about three to four more years of selling. Its because the US Enrichment Corporation wants to get out of the uranium storage business, and they want to be in the processing business.

Interviewer: How long will it be, do you think, before USEC is going to stop being a factor on the selling price pressure of uranium?

Bill Powers: I would probably say in about three years. For the uranium they are now selling, the cost of the uranium to them was zero. This has really made that company look very profitable. They are selling about $100 million worth of uranium every year, and they intend to do this at no matter what price. This is an extremely bullish scenario right now because uranium prices have touched twenty-year highs, despite the fact that USEC is dumping more than three percent of the worlds uranium consumption onto the market place. When this dries up, we should see markedly higher uranium prices.

Interviewer: How high is high when you say that?

Bill Powers: I would say up to $100 per pound. Before the end of this decade, uranium will probably be $100/pound. The Russians are going to be holding back some of their output from the megatons to megawatts project. Their (the Russian) uranium is going to be needed for internal consumption. Russia has a growing nuclear power industry. They need to have uranium supplies available. Theyre not going to be selling as much as they had in previous years. It appears it is going to be very important to factor in reduced Russian supplies as well as when USEC gets out of the business.

Interviewer: How can a sophisticated investor benefit from uraniums rising price?

Bill Powers: The most leveraged investments are the Canadian juniors. I believe Cameco (NYSE: CCJ) has other businesses out of uranium exploration and production, and it is a very safe way to play uranium. But I think there are far better opportunities out there. One of my favorite companies is Strathmore Minerals (TSX-V: STM; Other OTC: STHJF). I really like their business model of acquiring a great deal of very prospective uranium properties at bargain basement prices. Theyre able to do this because, right now, uranium has gone through a twenty-year depression. The prices for some of these pretty far advanced projects are very cheap. I think they are well leveraged for that. Another safe way to play uranium is Denison Mines (TSX: DEN). They produce about 1.3 million pounds per year. They have properties are in McLean Lake, Saskatchewan, which is part of the Athabasca Basin. What I like about them is they are able to use their cash flow from their existing production to further expand some of their properties. With UEX Corporation (TSX: UEX), Cameco was the shareholder. UEX was founded several years ago with Pioneer Minerals. Both of the companies put in properties. Its look like they are rapidly advancing some of their properties in Athabasca. I believe they have about eleven properties they have an interest in.

Interviewer: What about other energy factors, such as crude oil, and what do you see happening there?

Bill Powers: I would say crude oil is heading much higher. We have reached the worldwide production peak of crude oil, or we are very close to it. This is not very well recognized. As demand continues to rise, and world production starts a downward slope, were heading for much higher crude oil prices. I see much higher prices later this decade, if nothing goes wrong. What I mean by that is the natural market equilibrium price of crude oil should be $50 within the next eighteen months. And probably over $100 by the end of this decade if nothing goes dramatically wrong. That would come from the natural decline of existing reservoirs, limited new discoveries, and increasing demand. However, if a country, such as Saudi Arabia, were to have a regime change..

Interviewer: Are you looking for a regime change in Saudi Arabia?

Bill Powers: Yes, there is a body of evidence that supports this. Terrorist incidents are becoming more violent and closer together in Saudi Arabia. Right now, were seeing those attacks targeted to the oil workers. I believe it will not be too long before those attacks are focused more on the royal family. I believe that will be the next stage in Saudi Arabia. Theres a very good chance, which history supports, is when there are sudden regime changes in oil-exporting countries, oil exports from those countries drop significantly. Regardless of what were to happen, as far as the political situation, a lot of their fields, especially Ghawar, which is the biggest oilfield in the world it produces between 4 and 4.5 million barrels per day there is evidence that this field could decline relatively soon. Saudi-Aramco has been injecting substantial amounts of water into injection wells to push the keep production flat What this has done is it keeps production flat, but its sort of an illusionary fountain of youth. If you keep injecting water, the amount of water you produce, along with the oil, continues to rise. As the water cut continues to increase, the amount of oil produced can fall dramatically. If that were to happen, if Ghawar were to go into a permanent and irreversible decline well, it could happen relatively quickly.

There are other fields in the Middle East, such as Yibal in Oman, where they had a lot of water flooding and horizontal well drilling. Yibal has gone from 250,000 barrels per day in the late 1990s to about 80,000 barrels per day now. If we were to get that type of decline in Ghawar, the world is going to be seeing higher prices just on that. Right now, there is not any excess oil production supply anywhere in the world. A relatively small reduction in availability of supply will lead to an exponentially higher oil price.

COPYRIGHT 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to StockInterview.com and other publications. StockInterviews Investing in the Great Uranium Bull Market has become the most popular book ever published for uranium mining stock investors. Visit http://www.stockinterview.com

A Managed Forex Account Can be Advantageous

Forex (foreign exchange) is a highly specialized form of day trading that deals in the worlds many currencies. To begin trading, a player needs to open an account, choose a trading platform and a reputable broker. Forex brokers offer clients several ways to invest, including a managed forex account.

A managed forex account allows the client to authorize the broke to execute trades on the forex marker. Having a knowledgeable broker handling the transactions can be advantageous. Forex is speculative, with potential for huge profits and, of course, incredible losses. In addition, forex has no central exchange, but is traded over the counter (OTC) via the interbank. Trading centers in New York, London, Sydney and Tokyo make it a global, 24-hour market as well.

Many forex investors are not able to watch the market 24 hours a day. Others simply do not have the desire or the background to keep watch. In the forex market, though, that 24-hour watchdog capability is essential for success. Obtaining and instantly acting upon new information is also essential, which is difficult not only for newcomers to the market, but also for most busy investors. A managed forex account is perfect for such investors, those with risk capital who do not necessarily want, or know how to trade on their own.

In addition to handling the transactions, a managed forex account provides several other benefits. Compared to more traditional account like equities and real estate, a managed forex account requires a lower minimum investment. In addition, the clients money is always available. No lock-up period exists, so the investor can withdraw the balance at any time. Better timing is a great benefit of a managed account. Forex trading is all about time: when to buy, when to sell, when to bet the pot and when to fold. The professionals have access to the latest information on multiple markets, so have greater resources to affect a trade.

A managed forex account can also be advantageous for the traditional investor who seeks diversification of his portfolio. Traditional investments, such as real estate, equities and fixed income tend to be cyclical in nature. Trading on the forex market gives the classical trader an opportunity to make money regardless of the status of the stock market. Unlike equity and fixed income managers, a managed forex account trader can use both long and short positions equally. In forex trading, no difference exists in the profit potential between the two positions. Forex, therefore, is not biased long, but capable of profiting under any market condition. In addition, a professional forex account manager can process information on the fly and take advantage of opportunities as they arise.

Regardless of the level of involvement, an investor wants when choosing a managed forex account, he/she must do some research on the industry to be successful. Brokers can vary in services offered, but they must be registered with the Futures Commission Merchant (FCM), and be backed by a reliable lending institution. Bottom line: The managed forex account must be held accountable.

Are you interested in learning about the Forex Trading System? Our site provides plenty of useful information regarding Forex Trading. by T.D. Houser

2006 NFL Mock Draft

1. Houston Texans - RB Reggie Bush USC Reggie Bush is the best player in this draft. Reggie is probably the most exciting and explosive player I have ever seen. Domanick Davis is a good running back, but he isn't so good that they won't draft Bush. A trade down is a possibility, but I don't see that happening. No matter what, Bush will be the 1st pick.

2. New Orleans Saints - DE Mario Williams NC St. I disagree with this selection, but I believe it will happen. The Saints already have two good defensive ends, but they are so intrigued by Williams that they take them anyway. OT Ferguson is another possibility, although they spent last year's first round pick on OT Jamaal Brown.

3. Tennessee Titans - QB Matt Leinart USC Matt Leinart is the best quarterback in this draft. He played under Titans's offensive coordinator Norm Chow at USC. Steve McNair is in the twilight of his career and evidently the Titans aren't sold on backup Billy Volek. Jay Cutler or Vince Young are possibilities here. I definitely see the Titans taking a quarterback at this spot.

4. New York Jets - QB Vince Young Texas Vince is a perfect fit for New York. They have Patrick Ramsey and Chad Pennington, so there is little pressure for Young to start right away. He can sit for a year or two and then take over the reigns. Ferguson and a trade up for Leinart are a possibilities as well.

5. Green Bay Packers - OLB AJ Hawk Ohio State AJ is the surest thing in this draft. I don't see anyway he can be anything but a great player in the NFL. Mario Williams is also a possibility if available. Linebacker has been a huge need for GB for years now. They can finally sure that unit up with the safest possible pick.

6. San Francisco 49ers - TE Vernon Davis Maryland Davis is probably the best tight end prospect ever, and worthy of this high selection. He is 6'4 263, and runs a 4.38 40. He had nearly 900 yards receiving last year, so don't think he is all measurables. He could instantly boost a receiving corp that is one of the leagues worst.

7. Oakland Raiders - QB Jay Cutler Vanderbilt Cutler is a great quarterback prospect who has almost unlimited potential. Some believe he is actually the best QB in this draft. If Oakland is lucky enough to have him fall into their lap, they won't hesitate to take him. Their QB situation looks medicore with Aaron Brooks as the starter. Andrew Walter was taken in the 3rd round last year, but that won't keep them from taking Cutler.

8. Buffalo Bills - LT D'Brickshaw Ferguson Virginia The Bills primary need is offensive tackle. They luck out and get a heck of a player that could easily be the 2nd overall pick. Ferguson falls this far only because OT is a very deep position, so teams like New Orleans don't feel forced to fill their need in the first round.

9. Detroit Lions - FS/CB Michael Huff Texas Huff is a tremendous athlete who could excelled at free safety in college. What makes him so intriguing is that he has every tool needed to play corner as well. This versatility makes him a valuable commodity on draft day. RT Winston Justice is also a possibility because the their offensive line leaves a lot to be desired.

10. Arizona Cardinals - OT Winston Justice The Cardinals offensive line was horrible last year. Justice can come in and immediately improve this unit in the running and passing games. Justice's stock is on the rise and he would be a great selection if he is still available. If any of the three QBs fall this far, then they would surely be taken here instead.

11. St. Louis Rams - CB Tye Hill The Rams need an upgrade at CB. Tye Hill is the best of this year's class. He blends world class speed with toughness second to none that more than makes up for his small stature. This may seem high, but corners usually go really high. Pac-Man Jones went top 10 last year and he wasn't any better of a prospect than Hill. Other options include Michael Huff if he fell, Jimmy Williams, and DT Brod Bunkley.

12. Cleveland Browns - NT Haloti Ngata Oregon The Browns benefit from Ferguson's slide and Justice's rising stock. Because of these, Ngata slips by Buffalo and is still available at #12. Ngata is a prototypical 3-4 NT who can anchor Crennel's defense for many years. They have a big need a DE, so he might play there for a year or two until Ted Washington retires.

13. Baltimore Ravens - DT Broderick Bunkley Florida St. With the loss of Kemoeatu to the Panthers, the Ravens could use another DT. Bunkley is the total package at tackle. He has good size, outstanding strength, and great athletic ability. Don't be surprised if they take Winston Justice if he is still on the board. Trading up for a QB if any of the Big 3 start falling is a possibility as well.

14. Philadelphia Eagles - WR Santonio Holmes Ohio St. The Eagles' biggest need is wideout after the departure of Terrell Owens. Holmes would provide a solid young tandem with Reggie Brown. I think they should take LenDale White at this spot, but Andy Reid doesn't seem to care if he has a good running back although that feeling might change if he doesn't have the receivers to support his pass happy offense.

15. Denver Broncos - RB LenDale White USC With the loss of Mike Anderson, the Broncos need to add a RB sometime on draft day. While not necessarily their biggest need, picking White makes sense because he is the best player on the board. He could be the thunder to Tatum Bell's lightning. Other options are Bunkley, Holmes, and WR Chad Jackson.

16. Miami Dolphins - OLB/DE Manny Lawson NC St. It is rumored that the Dolphins are going to switch the 3-4 defense. That means they need a rush linebacker to pair with Jason Taylor. Lawson is a tremendous athlete an pass rusher. There is a possibility that they sign Lavar Arrington. If that happens, look for them to take Chad Jackson, a offensive tackle, or just the best available player

This is just the first half of Round 1. Check out the rest at my site.

writer and creator of http://www.cowboys-fan.com

Ways To Invest Money-How To Make A Fortune No Matter Which Investment You Choose

Many people today want to know the best ways to invest money today to help them get rich overnight. Unfortunately, rarely is there such a thing. You can certainly can make a lot of money with your investments, but they will often take some time.

Unfortunately, most investors arent willing to wait to make their money. They want it all now. Thats why we see so many investors losing a fortune on the stock market today.

When they invest, they arent doing so for the long term. They just want a quick buck and then get out.

In contrast, the worlds top investors view all their investments (whether it be in real estate the stock market) as a long term cash flow stream. Instead of looking for ways to invest money where they can get in and make a $100,000 overnight, they are only interested if it will provide long term residual income.

The vast majority of investors dont think this way. For instance, in the market, a typical investor might look at a stock and see that its been going up for the past week.

They wont check out the companies financial records or what kind of future potential it has. All they will look at is the stock price. If this is going up, they invest.

The worlds top investors do not do this. They will generally only invest in a company if it has exhibited a long profitable history and its future outlook looks promising. Only then will they put down their money.

This same mentality applies with real estate. Most people think that real estate investors make their money buy buying for a certain price and turning around and immediately selling it for $100,000 more.

While some do partake in this activity, the vast majority will only invest if the long term profits look good. They will usually invest in order to rent it to a tenant and obtain a long term passive income stream.

Therefore, no matter what field you are looking to start investing in, whether it be real estate or the stock market, always remember this: dont get lured in by fast profits. Yes, such events do occur, but more often than not it is simply catching lighting in a bottle. Very often, the investors who you hear about who make a killing overnight just about always lose it all in another investment shortly after.

The real wealthy investors are always looking for long term income in their investments. If it isnt there, they will simply wait and go on to the next. The best ways to invest money is always looking for long term profits, not a quick buck.

To learn to invest money and for other investing advice, try checking out http://www.online-investing-tips.com. This is a popular investment site that gives money investment advice to help you achieve financial freedom.

Not Profiting From Forex Yet? Probably It's Because Of This

Many new traders think that profiting from the Forex involves finding a 'secret formula' or trading strategy. So they embark on an exhaustive search for what amounts to the 'holy grail' only to find themselves still searching 2 or 3 years later still waiting for consistent profits.

If that is the case, it is unlikely to be the strategy that's the problem. Profiting from Forex can be done through any number of tried and test strategies. Just purchase a training package from many of the reputable online traders or brokers and you will find them.

The main problem that stops traders from profiting from Forex is in the mind! Successful Forex trading involves a whole range of mind control skills and mental disciplines that take some time to develop.

So if you are still struggling after one or two years of trading the Forex, start to focus your time and energies not so much on searching for a new strategy or trading methodology, but rather on yourself and how you approach and manage trades.

Monitoring Emotional State

How can this be done?

By monitoring our personal responses and emotional state during the course of a trading day.

Once we have a strategy we have confidence in, it is merely a case of waiting until the setup appears where we can employ that strategy.

Here is the problem. The Forex market goes through long periods of consolidation and low liquidity. The anxious trader will desperately look for trading opportunities and deviate from the strategy they have selected.

So things may not be quite right, but it looks reasonably favorable so in they go only to be dismayed when the trade turns against them.

It takes much mental discipline to restrain oneself from going into trades that do not match the criteria the strategy demands.

Once in the trade, mental discipline is again required so the trade is managed properly.

Have you ever found yourself doing this?

You enter the trade after examining risk and profit potential. Your stop is strategically placed 25 pips from your entry point. Price starts to go against you. It gets dangerously close to your stop and you think to yourself, "the trade needs a little more room for maneuver so I'll push back the stop by another 5 pips." Price continues to pull back getting close to your new stop.

The novice trader now thinks, "Just another 5 pips to make sure I'm not needlessly going to get stopped out of this trade" and moves the stop back to 35 pips.

Almost predictably in this scenario, price continues stopping out the trade at 35 pips. The trader has now suffered a loss of 35 pips instead of 25 pips which was originally factored in.

Continuing to trade in this manner makes profiting from Forex pretty remote! It takes mental discipline to stick to the plan!

Winning And Losing Responses

Then come the emotions associated with winning or losing.

The newer Forex trader will feel emotions of elation on getting a winning trade. In fact, the whole day can appear bright and cheerful with just one winning trade.

On the other hand, a losing trade can put the same trader into the depths of depression or despair. The day seems grim and hopeless leading to flawed judgment on the next trade which also goes wrong and compounds the attack on the trader's level of confidence.

It takes mental discipline to keep the emotions in check trying to avoid feeling either elation or despair on the basis of a winning or losing trade.

The disciplined trader approaches order entry almost mechanically realizing there will be winners and losers and that the strategy, if adhered to, will in the end win out!

So how can we develop this tough mental condition and strong mindset if ever we are to see the day when we are actually profiting from Forex?

Just as the trader will keep monitoring the charts, watching price action and candle formations during the course of a trading session, the same monitoring activity needs to be applied to the mental and emotional condition.

Self-Monitoring Sessions

This can be achieved by constantly asking questions of oneself. For example:

• What am I feeling right now?
• Am I in a relaxed state or am I anxious, agitated, or frustrated?
• Am I desperately looking for trading opportunities when no high probability trades are setting up right now?
• How did I react after my last trade whether it was successful or not?
• What can I learn from that and how can I better handle my emotions next time?
• Am I enjoying the experience or am I nervous of the markets?

Many sports participants and Olympic medalists spend huge amounts of time and resources on getting the right mindset. Coaches work with them to develop mental discipline and mind conditioning so they perform well under pressure and become aware of their own emotional state and feelings.

Often, it is not so much the level of skill or physical strength that makes the difference between the winner and the rest, it is competitor who has mental toughness who has the edge!

Focus On Mindset

So if you have been trading the Forex for one or two years already with mixed results, why not focus on your mindset.

Select a strategy that has a tried and tested track record by other traders and professionals who are already profiting from Forex, and then spend most of your time and energy developing the mind skills necessary to get into the small percentage of traders who actually make money on the Forex!

To learn how to preserve your mental and emotional resources in addition to your account equity click here:

http://www.vitalstop.com/Forex/Advisor/forex-day-trading-mental-equity.htm

Do you know the important lesson Mohammed Ali teaches us about Forex trading? Read it here:

http://www.vitalstop.com/Forex/Advisor/forex-online-trading-mohammed-ali.htm

For a free pivot point calculator, Fibonacci calculator and the best free economic calendars click here:

http://www.vitalstop.com/Forex/tools.html

Forex Trading - 5 Deadly Reasons Forex Traders Lose Money

In Forex trading, there are five common reasons traders lose money when developing and implementing their Forex trading strategy.

If you can avoid making these errors, you can enter the elite 5% of online Forex traders that make big consistent profits from the markets.

Heres the five common mistakes that you need to avoid when youre trading in the Forex markets.

1. They Work Hard but dont Work Smart

Many new online currency traders work hard - but they dont acquire the right Forex education.

FOREX trading attracts some of the cleverest people in the world - these traders are smart, and think that they can win simply because theyre clever.

Being too smart however, can be a bad trait to have in Forex trading.

A clever trader tends to see the market the way they want to see it - and they dont see the reality of how the market really is.

Do you want to make money or feel clever? The market wont accommodate both - so decide before you start trading.

If you want to make money, leave your ego behind, and simply focus on the main objective of Forex trading making money.

If you only focus on making money, youll out perform a clever trader with an ego, whos obsessed with beating the market.

2. They dont keep it Simple

As you can gather from point 1, being clever doesnt mean youll achieve success in online Forex trading. Not only should you leave your ego behind, you should also concentrate on trading using a simple system. Many Forex traders think the more complicated their system is, the more successful the system is likely to be however, this logic is incorrect.

Simple systems tend to be more robust than complicated systems, in the face of ever changing market conditions.

When developing your own Forex method, keep it simple - and youll have a better chance of making consistent Forex profits.

3. They dont accept Responsibility

When youre trading currencies, its tempting to follow a guru whose made money - or claims to have made money.

The Internet is full of Forex education you can buy for $100 or so - and they all claim itll make you rich - but this is not the reality of currency trading.

The only way to succeed is to rely on yourself no one else can give you success. If you cant take responsibility for your actions - dont trade in the currency markets.

4. Theyre too subjective

In Forex trading, most traders like to use technical analysis, and study Forex charts.

Studying charts can make you a lot of money - however you must be aware of the trap that many traders fall into - being too subjective.

Avoid methods that need a lot of subjective analysis, such as Elliot Wave and cycles instead use indicators that define trends.

Good indicators to use in conjunction with trend lines are:

Moving averages, and momentum oscillators - such as RSI, stochastics and Bollinger bands.

This will keep you disciplined, focused, and allow you to trade without your opinions and emotions getting in the way.

5. They lack Patience

Many traders get impatient when Forex trading, and want to achieve success too quickly.

They start trading using one method, get frustrated with it when it doesnt make money - and then switch to a different method. They then end up like a dog continually chasing its tail.

Bad periods are normally followed by good trading periods - and profits, (if youre using a soundly based Forex trading system) so you need to stick to your plan.

Stop changing systems and have the patience to follow your Forex signals with discipline.

The X Factor Your Trading Edge

Anyone thinking of getting involved in Forex trading should ask themselves this simple question: What advantage over the majority of unprofitable Forex traders do I have, that will make me big consistent profits?

This is your trading edge if you cant think what it is - you dont have one!

A trading edge is something that all successful traders have.

Now youve read this article, youll realize that getting an edge in Forex trading is not as complicated, or as hard as many traders think.

You simply need to work smart not hard, focus your Forex education in the right areas and youll give yourself the chance to achieve consistent profitability.

The good news is that anyone prepared to learn Forex trading the right way, can become consistent and profitable.

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