Tuesday, August 11, 2009

Stock Trading Software: What Are The Advantages?

By Michael Swanson

Stock trading software can be a helpful tool for the experienced stock trader. You will need to have some basic experience and knowledge to get the most from any software program, because you need to determine the criteria for the software.

The many benefits of using the software include the ability to be in control of your investments' risk and reward ratio. It is invaluable in helping you to manage your investment portfolio and to monitor the performance of your stocks.

Being able to manage your emotions when making buying and selling decisions is critical if you are to avoid the mistakes that invariably follow making emotional decisions. Using software helps you to control your emotions when making trading decisions, and avoid the fear and greed emotions that distort your perception.

Time is money, as they say, and using stock trading software saves you considerable time when searching through the thousands of possible investments. The software can scan faster and more thoroughly than you could manually. Because you have entered your rules into the software, the results found by the software will be in line with your trading strategies.

How does trading software actually work? It scans the available stocks in line with your pre-determined criteria, finds suitable investments and indicates buying or selling signals. The software can place the orders or you can order manually. A basic knowledge of investment concepts and technical analysis is necessary before you can truly benefit from the software, so that you can decide the criteria for your software to use.

When researching stock trading software, look for a program that fits your budget and pre-set goals. If you can try out your preferred software before you buy, that would be great. At least, go with a software program that comes with a money-back guarantee as a protection of your investment. - 23309

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What to Find in Stock Trading

By Sheryl Bocelli

When DPO shares are at stake, this is a unique stock trading style. In stock trading it is important to know the bonds, securities, commodities and other products being offered in the market. Usually, these products are classified under the category of a DPO otherwise known as direct public offering. DPO shares are purchased directly from the issuing company rather than selling it through a broker or an agent. The DPO can give the average person a chance to invest in a public offering as contrasted to IPO. This is typically low-profile offer thus this can be a bit uneasy to locate.

Always remember that the exchange has a very unpredictable market. If the price drops immediately after you buy, it may seem you missed out on a better buying opportunity. If the price jumps right before you make your move, you may fee as if you paid too much. This is how it goes in this industry. In stock trading, the most crucial part is the decision when to trade. It is of vital importance to determine the right timing to purchase a security that you would like to add up to your holdings. However, this really needs thorough study on that certain share you like to acquire.

Nobody is perfect! It is indeed hard to admit that they have made a wrong move, but they need to realize that if they continue to keep that losing commodity nothing is benefited. They should sell and trade for a better one so they can move on. The concept of stock trading is not exclusively buying for it also involves selling of investments you do not need. Some investors let their hearts rule over their heads and cling on to stocks that have fallen in value rather than selling them at a loss.

The process of stock trading is very challenging for it can either turn you hilarious or it can also cause heart attack. This is the beauty of the industry. The challenge is always present every second as long as you are in the arena. You will feel great relief when you have done a successful trade exaction and you are able to get profitable returns. Then you go home a happy person. You just imagine however the opposite side of the coin if you failed.

Always remember that there are two side of the coin and it has two different faces. The same is true with stock trading. If the market has up and down trends, it is also the same with stock trading. - 23309

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Understanding Candlestick Patterns (Part II)

By Ahmad Hassam

The Bearish Gravestone Doji: Dojis appear very rarely in the candlestick patterns. A Doji is created when the opening and closing prices of the day are the same. It is very rare for the opening and closing prices for the day to exactly equal each other. However, the Gravestone Doji is formed when the opening and closing prices of the day are equal to the low of the day, the most bearish of Doji.

Some extremely useful single stick patterns rely heavily on their location on a chart. Not all single stick patterns are straightforward. Some single stick patterns that have been discussed earlier were most basic and easy to identify.

Making yourself familiar with these candlestick patterns and how to identify and trade based on them is another way that you can add a versatile weapon to your trading arsenal. A variety of single stick patterns can provide some terrific trading opportunities if you can spot them in the right market environment.

Dojis although appear very rarely are often associated with the reversal of the trend. We have talked about Dojis. Dojis can serve as outstanding reversal indicators. It could very well indicate that the trend maybe changing to a downtrend soon if a Doji appears in an uptrend, especially if it is a Gravestone Doji. Similarly if the Doji appears in a downtrend, it may signal that the trend may soon change to an uptrend!

The Long Legged Doji: A long legged Doji features a small stick with very long wicks on either side. The small candle on a long legged Doji is normally located very close to the center of the candlestick.

A long legged Doji is considered a reversal signal when appearing in an uptrend or a downtrend. This Doji indicates that there was a lot of uncertainty in the market after a period of directional certainty. This change of conviction often results in the change of trend.

The Spinning Top: A spinning top is formed when a candlestick has a small body. It has wicks stick out on both ends. The wicks should also be as wide as the candle section of the candlestick. The body of the candlestick should appear to the center of the range of the days price action.

The spinning top is another pattern that depends on the market context and reveals a tight battle between the bulls and the bears like Doji. Eventually one side have to give in whenever, there is a close battle between the bulls and the bears. An explosive move in one direction is possible when this happens.

Dojis appear very rarely. However, the spinning tops make frequent appearances. Like Dojis, the spinning tops are nice indicators that the trend is about to end and reverse itself.

Belt Holds: There are two types of belt holds: bullish and bearish. Bullish belt hold features an open equal to the low and a close near the high which leaves a small wick near the top of the candle.

Belt holds also depend on market context. Belt hold candlestick patterns are excellent trend reversal signals. Bearish belt holds candlestick patterns on the other hand opens on their highs and close near their lows. Bearish belt hold has a small wick near the bottom of the candle. - 23309

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Stock Market News You Need To Follow

By Michael Swanson

For years, if you wanted to know anything about the stock market, you turned to the Wall Street Journal. Today investors turn to many other sources for stock market news.

Do not be mislead, the Wall Street Journal is still in publication. It is comprehensive in its coverage of the markets. It is also a great source of information for investors. You may also find listings for the market in your local newspaper. You should know that there are more sources of news on the market today than just in print.

News on the market can be found on radio and cable television. Many of the news channels will show a ticker of the market several times daily, until they show the final for the day. In addition, you will find shows that are dedicated to money and market news.

If you need immediate news on the market at your fingertips, turn to the internet. The internet gives you information about the market that is just like being on Wall Street. Prices are updated instantaneously. In addition to the American markets, you can also follow international markets.

Perhaps you think the market does not affect you. Think again. The prices in the market will determine your cost of living. If you have money tied up in a 401K or an IRA, chances are that your money is directly tied to the stock market. The growth of those funds only happens when the market is increasing.

If you lost your job and were forced to cash in or roll over your 401k in the past year, you also felt the influence of the market, as these funds might have lost as much as fifty percent in value over the past two years. Had you been able to leave the money invested in the program, over time, it would have gained back its original value and grew.

Knowing stock market news lets you keep an eye on your investments. - 23309

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Convenience in Internet Stock Trading

By Sheryl Bocelli

The resort to Internet stock trading is for busy traders and professionals to see readily the other sectors of the exchange that they prefer. It must always be remembered that the movement of the market is extremely unpredictable and price stock is constantly changing in every second. This is one of the greatest benefits provided by modern technology to the stock exchange industry.

You cannot control the movements of the stocks but you see online how they move. The best thing traders can do is to make their most intelligent speculations using the charts and other available materials they can hold on to. These data gathering is not also difficult for almost everything a trader or investor wants to know in on the Internet.

In any form of business what is basic is to possess the capital needed and know the type of venture one is going to be involved. When he is convinced of what to trade, then he can start Internet stock trading for his choice. The businessman knows the commodities that he needs. The trader or investor must have the money for investment and knows what stocks to buy.

Through Internet stock trading the players in the market can execute their trade transactions while in the comfort of their home or office. The stock market operates that way in that manner specially with Internet stock trading. Your money is the security for the issuance of your stock certificate in accordance to your order. No money, no stocks!

They can readily find the specific market where the securities that they want just at the tips of their fingers. The key players in the market are provided with a wider scope and various sectors. This is the beauty of this business for you make money in your comfort zone through Internet stock trading. - 23309

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