Traders often ask what the Forex market hours are. This is much different from the normal American stock market hours, technically this market is open 24 hours a day. The Forex market allows you to trade any time of day or night. That doesn’t mean you should trade at any hour, you should find the best time to trade within the market. It does mean if you need to sell a Forex position in the middle of the night, then you can. Click here for the full forex market hours
Lets assume everyone knows how to buy a stock. Get a broker, pick a stock, and pay for it. How many traders know what they are buying though? Here are 4 important things to look for in a company when you wish to invest in their company by purchasing a stock. Read more
Trading in a stock chat room can be beneficial but it also has many draw backs. When trading stocks in a chat room you have more eyes on the stock market. In theory this means with more than one set of eyes you should be able to find more profitable trades. For this to actually happen it requires that you find a chat room with strong traders who can find trades that will be profitable and they need to be able to do this on a consistent basis. You will need traders who are at least as good as you and maybe trade a different sector. Read More Stock Chat Room
What is Arbitrage Trading?
Arbitrage trading is one of many day trading strategies. It is the act of buying or selling a security within the trading day that takes advantage of value differences withing the market the security is being traded in. Every day the stock market is open arbitrage trades are being made all throughout the day.
An arbitrage trader will purchase a security and sell the same security (or one closely related) at the same time. They attempt to profit off of the value differences in the different markets. They may use the difference between CME futures and the NYSE for their trade. Often when news or events occur it can move the index higher or lower. Both markets will not move at the same time or for as strong a move. They will be unequal in price for a given amount of time. This is where arbitrage traders attempt to make their profit. More Arbitrage Trading
Since Steve Nison came up with his first book “Japanese Candlestick Charting Techniques” in 1991, forex traders stock traders, commodity futures traders all over the world have been awed and mystified by this centuries old charting tool! The ensuing interest for, and the widespread popularity of this trading tool was simply magical. Every Tom, Dick, and Harry dealing with any form of trading was scrambling for whatever available Candlestick tutorials, books, and lessons there are! Practically everyone in the investment industry was mesmerized by the simplicity and the seemingly promising trading results Candlestick will bring to its users More on Charting Penny Stocks
Many people that are interested in trading the stock market hope to replace some, if not all of their income. If your intention is to swing trade as your primary source of income, it’s most likely going to take a good amount of time before you can do it consistently. Do not go into swing trading thinking that a few weeks of practice is going to be enough to get you there. Be prepared to spend months or years learning and getting experience by trading before you can even think about quitting your job to trade full time.
Full time swing traders spend many hours a day, during trading hours and after to research their upcoming trades. People that do it full time also handle pressure very well, so if you don’t, then you may want to reconsider your intentions. Many people come to find out that they cannot handle the stress involved with trading as a full time job. When swing trading becomes your sole source of income, it can cause enormous pressure to consistently bring in money. You may also let your emotions get the best of you after a string of losses and gamble your money on trades that are not well thought out. This cuts short a lot of new traders futures. When you have a string of losses, the best thing to do is stop and evaluate what went wrong, not immediately trade more to try and right the situation.
To be good at swing trading, you do not have to be a genius or have a crazy high IQ; you just have to have self control. You have to have practice constraint, discipline and self calm. You must remain unemotional during all times, especially during loss. When a trade doesn’t go your way, do not try to make the situation right, just look for your next trading opportunity and move on. This is what separates the successful and the unsuccessful traders.
Once you get started swing trading on a full time basis, if you have good profit over a few months, don’t take that as a sign that you can quit your day job. There are ups and downs and you need to make sure you are trading with enough that you can support yourself. If you have monthly expenses of $6000, you cannot expect to make that much trading with $30,000. That would be a nearly 15% gain each month, which is not going to be consistently hit. Some of the best traders in the world only averaged 20%-25% a year over 25 years.
Most swing traders are in the market to add supplemental income or to improve the worth of their investments. This is far less stressful as you are not relying on the profits to live and pay expenses. If you make a mistake or have a string of losses, it won’t put you in a really bad position and you can just move on and learn from the mistakes. Part time swing traders usually do their analysis after they are off work and after market hours. They do their research and plan their trades for the next day.
It takes a lot of time and experience before you can be at a place where swing trading can replace a significant amount of your income, or all of it. You have to have a lot of capital and be able to control your emotions when it comes to trading. If this is your goal, get started slowly learning the stock market and practicing trades and one day you will be ready to take the plunge.
One of the most common investment scams that has been proliferated throughout
communities around the United States during the last few years is the guaranteed
return. In this article, we will address the specifics of this scam and point out
how to avoid it. This single scam may cause more investor losses each year than
every other investment scam added together.
Bob is an incredible trader. In fact, he is so good that he is willing to give
you 2% per month on your investment. You give him $10k, $50k, $100k, and he will
guarantee a steady check each month of 2% of your principal investment. This is the
basic operation. Now the trader who is running the scam usually does one of three
things.
- He never trades the money in a penny stock, stock fund, forex account, or what
ever the investment portfolio is designed to invest in. Instead he uses it to
finance a lavish and luxurious lifestyle of boats, cars, houses, vacations,
etc.
- He deposits the money into an account and trades it, but he also withdraws
money whenever he wants in order to finance that luxurious lifestyle.
- He deposits all the money in a trading account and trades it. He never does
take any out to finance a luxurious lifestyle, but he continually loses money as a
trader. Instead of being forthright about his losses, he keeps losing and losing
until there is no money left in the account.
One of these three scenarios plays out in this scam. The most common is number
1, although number 2 and 3 do happen. The trader perpetuates the scam by continuing
recruiting new investors, but this is where the scam gets very difficult to uncover.
Usually the trader does not do any formal advertisement or marketing. These types
of scams generally perpetuate through word of mouth and circles of trust. For
example, they will often occur in church, civic, and social circles, and because
they perpetuate by word of mouth, new investors rarely question the legitimacy of
the investment operation.
The math works as follows. If a trader has $1 million under ?management,? and he
is promising a guaranteed return of 2% each month, then he only has to pay out
$20,000 each month. That means that in a year he only has to pay out $240,000.
That leaves him with a lot of extra money to spend on whatever he wants. And then,
the more investors he brings in, the longer he can perpetuate the scam. Eventually
everything falls apart when enough investors call up for their principal at the same
time. Then, the trader will not have enough money to pay back investors, and the
entire fraudulent operation falls apart, and investors realize they have been bilked
out of their money.
The scams often tend to fall apart during times of recession and economic
uncertainty because many investors will call for their capital in order to increase
their liquid holdings. When these investment scams are exposed, investors rarely
get any capital back, and if they do, it is generally pennies on the dollar.
Never invest with anyone that guarantees a return no matter how great it sounds.
It is impossible to guarantee a return in financial markets.
Never invest with a ?trader? that is not fully registered with Regulatroy
official, such as the SEC
of NFA.
These two steps alone will dramatically decrease your chances of falling victim
to the Guaranteed Return Scam. If you believe you may be in a scam at the moment,
the safest thing to do is contact your local FBI office and an attorney and ask them
for advice.
Currency Trading
Market Forex offers investors a complete and direct access to the
worldwide forex currency trading markets, No need to download software, forms,
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