Sunday, January 24, 2010

How do I make money with the purchase and sale of Penny Stocks

Investing in penny stocks can be risky and you should be educated before you make your first trade. There are a lot of money to be made with cheap stocks because you have more purchasing power. You also can lose money faster because the shares or less stable.
How to: Trade Penny Stocks
First you need to educate themselves on buying and selling penny stocks. Most people know that time is everything to make money in the stock market, and this can not be more true when it comes to cheap stock. Do your homework and you can successfully make money in this arena.

You Can: Get Rich Trading
Finding all the publications you can that will provide the information you need to make smart buying and selling decisions. To be successful in making money in the stock market you need to understand market trends and the best way to do this is to be notified.
Talking to a penny stock trader active and choosing a brain so you can understand the intricacies. You should always try to walk in someones shoes to gain insight into what to expect. You do not have experience on your side so you do not need to get some idea how the shape of a place and what better than an experienced trader.
Remember that making money in penny stocks is a learning process. You need to start slow until you fully understand how markets work. Making money will eventually be second nature for your com. Opportunity to make money in good markets and bad. Knowing the trends and what to look for is the key to being successful.

Sunday, January 17, 2010

I view the forex trading system

The people who enter into the forex trading has many options for trading. This helps to examine two different options that can be used between the forex trading system. Be useful for you to check these two options before trading.

To better understand the system you need to know what forex trading system. This is a system where you can make a deal with the last data value of the currency in mind. You can also trade with the prediction of values in which you feel will go in the future. You also will set the parameters, or boundaries, to trade.

The first option is the choice of mechanical systems. With this you will create a transaction in accordance with previous data. You'll also see how the value of a currency pair changes associated with the parameters you have. As a result of this can be easy for you to get the right parameters established. When you get ready to trade your parameters will automatically work for you when opened.

An important part of a mechanical system is that it can be an automated system. This means that traders do not have to worry about manually handling the trade. With a computer program for mechanical forex trading system for trading a series of parameters can be used. When the couple toward a favorable result associated with these parameters will be handled. This helps to keep the guesswork out of trading.

Next there is the wisdom of the system. With this you will trade the currency pair in accordance with the values change. You will be able to be flexible with the parameters for trading you use. You can change it as trading session continues. In fact, you can use your desired limit when the trade as often as needed.

This system was operated manually. Unlike a mechanical system that works with discretionary one trade you make. Everything done here is your own.

You have to think about any experience you have in forex trading when determining which system is used. New traders should use mechanical options to help with a trade handled. After some time when more and more experienced traders can use discretionary choices.

This will help to look into this system with psychological values in mind. In many cases, a person may be too nervous to make a trade. This is why the mechanical system used by some people. A discretionary system can work for those who are disciplined and comfortable with what they do. Whatever system you use should be based on the discipline you have to trade.

This forex trading system is good to check. A mechanical option can work to help with a trade is handled automatically. Also can work with preset parameters. A discretionary system will work with a more customized parameters. These are two good choices to check when entering into the field of forex trading.

Do They Help You in Making Money ?

Forex trading is an investment method that involves a low risk level. Forex trading involves the exchange of one currency other country's trade and then return at the right moment to make a profit. This concept is dependent on knowing the right time to buy and sell, which is the basic principle of all investments. But with Forex trading is basically investment opportunities depends on the weakening of one currency against another based. Automated forex trading is designed to assist with Forex trading and strategies behind it.

Clearly the principle of Forex trading is to make money. You do not put money into an investment program and does not expect to get profits. A machine that you put money in and not have to give back is known as a slot machine. Forex trading software is designed to provide benefits almost easy for yourself. Type of money like a tree in your yard.

Automated Forex trading software is designed to help the process but not necessarily going to provide you with virtual money tree. These programs may provide some success, but they certainly will not make you rich over night. Automated Forex trading is more like having a good stock broker on your salary. They may be able to give you more success than you could have your own.

Every program that will provide you with an increasing number of successful investment in itself can be a good investment. The important thing is for certain research automated Forex trading system to check the type of record that claims to have. If the results sound so unrealistic they may be. However, if the claim was legitimate, they may be worth looking into further.

Another good tip is to ensure that the company that produces software is a company that has a good reputation. They must have an affiliation with the investment firm or a leading investment brokerage. Please note that the software just because the claim was associated with a broker who has a good reputation does not mean that the software is based on principles that work.

There are companies that will try to persuade you to buy their products unfairly by making false claims and associations. Always research software and also you can. If you can not find reference to consumers for products that support and provide evidence for this success may be a good idea to avoid these products.

One thing to remember when considering using the automated Forex trading system is the fact that the software is programmed to operate at pre set conditions described. Real world is not limited to these programmed conditions. Even the real world is unpredictable and any software programs that will be adept at reading the market conditions necessary to take many factors into consideration.

This is also a good idea to remember that if a software program can provide huge amounts of money that is unlikely to be available on the open market. This will be a closely guarded secret. This does not mean that there are no programs that may have a success rate better than average in seasoned investors. If you are sure to be careful and use common sense when considering an automated Forex trading programs then you should be able to avoid a program designed to make only the rich software company.

7 The main reason for starting a Trading Forex

More and more perceptive investors and businessmen who avoid traditional financial markets, such as stocks, bonds and commodities and building their wealth in the forex market for foreign exchange.
Factors why they turn to all the world's electronic forex trading is a lot of advantages over any form of investment. While you experienced stock or commodity trader, you'll discover how to foreign exchange is strong. You can make $ 200 to $ 3000 in less than 30 minutes each working day. Forex trading is far more risky than trading currencies on the futures market, much more valuable, and much easier, than trading stocks.

Why should you trade the forex market? Here are the circumstances:

1. The forex market is open 24 hours

You can enter a position, or exit always that you need, always that you are 6 days a week. You do not need to wait for the opening bell like if you were trading stocks. It is excellent for you as you pick the best time so you can trade.

2. The daily trading volume of the forex is around $1.5 trillion dollars

It is 30 times bigger than the combined volume of all U.S. equity markets. This signifies that 1,498,574 capable traders could each take 1 million dollars out of the forex market daily and the forex would still have more cash left than the New York Stock would have daily!

3. You profit in either emerging market or falling market

You have equal potential to profit in both a rising and falling market, because it is up to you to pay for a currency, or to sell it, after you determined the market trend tendency.

4. You can trade from anywhere

If you like to travel, this is a dream business, you just take your lap top with you and that is it, you can make cash from anywhere in the world, all the things that you require is to make sure that you can access an internet connection.

5. The leverage is considerable

In fact, you do not require a lot of cash to trade forex, it is recommend to get start with $2000, but you can begin with $300, then if you have a proved tactic, your investment will grow consequently, as you can trade up to 200 times your investment. You can trade 100,000 unit currency lots with as little as 1% margin, or $1,000. There is no comparison with the stock market where you need lots of money to initiate, if what you want is to see real profits. Besides that, you require to post 50% margin.

6. Price movements are notably predictable

Price movement or notably volatile in the forex, The foreign currencies market is moving in trends and you can recognize these trends, as they repeat in cycle with the technical exploration.

7. No commission fees

Unlike the stock market, brokers do not take commission on transaction.

To trade forex, you do not require to have a lot of cash to start, you can trade at any time, from anywhere, with a Internet connection, you will not have an order pending due to lack of liquidity, you will not have to work throughout the day. The forex market has many advantages through the other traditional investments, and evidently, it will give you more liberty, and more cash.

Thursday, January 14, 2010

3 Tips to Successful Small FOREX Investing

3 Tips to Successful Small FOREX Investing - Profit 500% in 30 Days With Less Initial Investment It might be said in the financial world that small cap investing

133 The Best Trading Tips

1. Learn the basics of forex trading. It's amazing how many people simply don't know what they're doing. In order to compete at the highest level in the trading business and be one of the few truly successful participants you must be well-educated about what you are doing. This does not mean having a degree from a well-respected university – the market doesn’t care where you were educated.
2. Forex trading is a zero sum game. For every long there is also a short. If 80% of the traders are on the long side ,then the remaining 20% are on the short side. This means further that the shorts must be well capitalized and are considered to be strong hands. The 80%, who are holding much smaller positions per trader, are considered to be weaker hands who will be forced to liquidate those longs on any sudden turn in prices.
3. Nobody is bigger than the market.
4. The challenge is not to be the market, but to read the market. Riding the wave is much more rewarding than being hit by it.
5. Trade with the trends, rather than trying to pick tops and bottoms.
6. Trying to pick tops and bottoms is another common fx trading mistake. If you're
going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market. Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.
7. There are at least three types of markets: up trending, range bound, and down. Have different trading strategies for each.
8. Standing aside is a position.
9. In uptrends, buy the dips ;in downtrends, sell bounces. 10. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.
11. Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend. 12. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.
13. Let profits run, cut losses short.
14. Let your profits run, but don't let greed get in the way. Once you've already made a nice profit on a trade, consider taking either some or all of the money off the table and move on to the next trade. It's natural to hope that one trade will end up as your "winning lottery ticket" and make you rich, but that is simply not realistic. Don't hold the position too long and end up giving all your well-deserved profits back to the market.
15. Use protective stops to limit losses.
16. Use appropriate stop-loss orders at all times to cut your losses and never, ever sit back and let your losses run. Almost every trader at some point makes the mistake of letting his or her losses run in hopes that the market will eventually turn around in his or her favor but, more often than not, it simply leads to an even greater loss. You win ome, you lose some. Simply learn to cut your losses, take your occasional lumps and move on to the next trade. And if you made a mistake, learn from it and don't do it again. To avoid letting your losses run, get into the habit of determining an acceptable profit target as well as an acceptable risk tolerance level for each and every forex trade before entering the market. Then simply place a stop-loss order at the appropriate price - but not so tight (close to the market) that the stop could quickly take you out of the position before the market has a chance to move in your favor. Using a stop is always the smart move.
17. Avoid placing protective stops at obvious round numbers. Protective stops on long positions should be placed below round numbers (10, 20, 25, 50,75, 100) and on short positions ,above such numbers.
18. Placing stop loss is an art. The trader must combine technical factors on the price chart with money management considerations.
19. Analyze your losses. Learn from your losses. They're expensive lessons; you paid for them. Most traders don't learn from their mistakes because they don't like to think about them.
20. Stay out of trouble, your first loss is your smallest loss.
21. Survive! In forex trading, the ones who stay around long enough to be there when
those "big moves" come along are often successful. 22. If you are a new trader, be a small trader (mini account) for at least a year, then analyze your good trades and your bad ones. You can really learn more from your bad ones.
23. Don't trade unless you're well that market action, not financial condition, dictates your entry and exit from the market. If you don't start with enough money, you may not be able to hang in there if the market temporarily turns against
24. Be more objective and less emotional.
25. Use money management principles.
26. Money management increases the odds that the trader will survive to reach the long run.
27. Diversify, but don’t overdo it.
28. Employ at least a 3 to 1 reward-to-risk ratio.
29. Calculate the risk/reward ratio before putting a trade on, then guard against holding it too long.
30. Don’t trade impulsively ; have a plan
31. Have specific goals and objectives.
32. Five steps to build a trading system:
a) Start with a concept b)Turn it into a set of objective rules.
c) Visually check it out on the charts d) Formally test it with a demo
e) Evaluate the results.
33. Plan your work and work your plan.
34. Trade with a plan - not with hope, greed, or fear. Plan where you will get in the market, how much you will risk on the trade, and where you will take your profits. 35. Follow your plan. Once a position is established and stops are selected, do not get out unless the stop is reached or the fundamental reason for taking the position changes.
36. Any successful trading system must take into account three important factors: price forecasting , timing , and money management. Price forecasting indicates which way a market is expected to trend. Timing determines specific entry and exit points. Money management determines how much to commit to the trade.
37. Don't cherry-pick your system's set-ups. Trade every signal.
38.Trading systems that work in an up market may not work in a down market.
39. Establish your trading plans before the market opening to eliminate emotional reactions. Decide on entry points, exit points, and objectives. Subject your decisions to only minor changes during the session. Profits are for those who act, not react.Don't change during the session unless you have a very good reason.
40. Double-check everything.
41. Always think in terms of probabilities. Trading is all about thinking in probabilities NOT certainties. You can make all the “right” decisions and the trade still goes against you. This does not make it a “wrong” trade, just one of the many trades you will take which, through probability, are on the “loosing” side of your trading plan. Don’t expect not to have negative trades - they are a necessary part of the plan and cannot be avoided.
42. The place to start your market analysis is always by determining the general trend of the market.
43. Trade only with a strategy that you've proven to yourself.
44. When pyramiding (adding positions), follow these guidelines.
a. Each successive layer should be smaller than before.
b. Add only to winning positions.
c. Never add to a losing position. One of the few trade management rules
that we can state we never break is ‘Never add to a losing trade’. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If indeed it is a winner disguised as a loser, why not wait until it shows it’s true colors (and becomes a
d. winner)before you add to it. If you do this you will notice that nearly always the trade ends up hitting your stop loss and does not look back. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very fortunate. Sometimes the trade hits your stop loss and then turns around and becomes a winner and you can count yourself unlucky. Whatever the result, it is never worth adding to a loser, hoping that it will become a winner. The odds of success are just too low to risk more capital in addition to the initial risk.
e. Adjust protective stops to the breakeven point.
45. Risk Control
A)Never risk more than 3-4 percent of your capital on any trade B)Predetermine your exit point before you get into a trade c)If you lose a certain predetermined amount of your starting capital, stop trading, analyze what went wrong, and wait until you feel confident before you begin trading
46. Don’t trade scared money.
No one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and leads quickly to disaster. Trading is about taking a reasonable risk in order to achieve a good reward. The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.
47. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful forex trading .
48. Never meet a margin call; don’t throw good money after bad.
49. Close out losing positions before the winning ones,

50. Except for very short term trading, make decisions away from the market, preferably when the markets are closed.
51. Work from the long term to the short term.
52. Use intraday charts to fine-tune entry and exit.
53. Master interday trading before trying intraday trading.
54. Don't trade the time frame. Trade the pattern. Reversal patterns, hesitation patterns and breakout patterns appear often. Learn to look for the pattern in any time frame. 55. Try to ignore conventional wisdom; don’t take anything said in the financial
media too seriously.
56. Always do your homework and stay current on global events. You never know what's going to set off a particular currency on any given day.
57. Learn to be comfortable being in the minority. If you are right on the market, most people will disagree with you. (90% losers,10% winners).
58. Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.
59. Beware of all tips and inside information. Wait for the market's action to tell you if the information you've obtained is accurate, then take a position with the developing trend.
60. Buy the rumor, sell the news.
61. K.I.S.S – Keep It Simple Stupid, more complicated isn’t always better.
62. Timing is especially crucial in forex trading. 63. Timing is everything in forex trading. Determining the correct direction of the market only solves a portion of the trading problem. If the timing of the entry point is off by a day ,or sometimes even minutes ,it can mean the difference between a winner or a loser.
64. A “buy and hold” strategy doesn’t apply in forex trading
65. When you open an account with a broker, don't just decide on the amount of money, decide on the length of time you should trade. This approach helps you conserve your equity, and helps avoid the Las Vegas approach of "Well, I'll trade till my stake runs out." Experience shows that many who have been at it over a long period of time end up making money.
66. Carry a notebook with you, and jot down interesting market information. Write down the market openings, price ranges, your fills, stop orders, and your own personal observations. Re-read your notes from time to time; use them to help analyze your performance.
67. Don't count profits in your first 20 trades. Keep track of the percentage of wins. Once you know you can pick direction, profits can be increased with multi-plot trading and variations in using your stops. In other words, now is the time to get serious about money management.
68."Rome was not built in a day," and no real movement of importance takes place in ne day.
69. Do not overtrade.
70. Have two accounts. One real account and the other a demo account. Learning doesn't stop when trading real dollars begins. Keep the demo account and use it to test alternative trades, alternative stops, etc.
71. Patience is important not only in waiting for the right trades,but also in staying with trades that are working.
72. You are superstitious; don't trade if something bothers you.
73. Technical analysis is the study of market action through the use of charts,for the
purpose of forecasting future price trends.
74. The charts reflect the bullish or bearish psychology of the marketplace.
75. The whole purpose of charting the price action of a market is to identify trends in early stages of their development for the purpose of trading in the direction of those
76. The fundamentalist studies the cause of market movement, while the technician studies the effect.
77. Rising commodity prices generally hint at a stronger economy and rising inflationary pressure. Falling commodity prices usually warn that the economy is slowing along with inflation.
78. The longer the period of time that priced trade in a support or resistance area,the more significant that area becomes.
79. There are three decisions confronting the trader –whether- to go long, go short or do nothing. When a market is rising ,the best strategy is preferable. When the market is falling, the second approach would be correct. However ,when the market is moving sideways ,the third choise –to stay out of the market- is usually the wisest.
80. Channel lines have measuring implications. Once a breakout occurs from an existing price channel ,prices usually travel a distance equal to the width of the channel .Therefore, the trader has to simply measure the width of the channel and then project that amount from the point at which either trendline is broken.

81. The larger the Pattern ,the Great the potential. When we use the term “larger” ,we are referring to the the height and the width of the price pattern. The height measures the volatility of the pattern. The width is the amount of time required to build and complete the pattern. The greater the size of the pattern-that is ,the wider the price swings within the pattern (the volatility ) and the longer it takes to build –the more important the pattern becomes and the greater the potential for the ensuing price move.
82. The breaking of important trendlines . The first sign of an impending trend reversal is often the breaking of an important trendline. Remember however ,that the violation of a major trendline does not necessarily signal a trend reversal.The breaking of a major up trendline might signal the beginning of a sideways price pattern ,which later would be intedified as either the reversal or consolidation type.Sometimes the breaking of the major trendline coincides with the completion of the price pattern.
83. The minimum requirement for a triangle is four reversal points. Remember that it
always takes two points to draw a trendline.
84. The moving average is a follower , not a leader. It never anticipates;it only reacts. The moving average follows a market and tells us that a trend has begun, but only after the fact.
85. Shorter term averages are more sensitive to the price action ,whereas longer range averages are less sensitive.In certain types of markets ,it is more advantageous to use a shorter average and ,at other times , a longer and less sensitive average proves more useful.
86. When the closing price moves above the moving average , a buy signal is generated. A sell signal is given when prices move below the moving average.
87. A buying signal on a two-moving average combination occurs when the shorter term of two consecutive averages intersects the longer one upward. A selling signal occurs when the reverse happens, and the longer of two consecutive averages intersects the shorter one downward.
89. Shorter average generates more false signals ,it has the advantage of giving trend signals earlier in the move .The trick is to find the average that is sensitive enough to generate early signals, but insensitive enough to avoid most of the random “noise”.
90. Cutting losses is painful for every trader.The ability to cut one’s losses in time is the sign of a seasoned trader.

91.A channel breakout suggests a target for the currency price equal to the width of
the channel.
92. Long term charts provide important information regarding long-terms or cycles. The trader can get a correct perspective regarding the real direction of the market in the long run, the strength or direction of the current trend occurring within that trend, or the possibility of a breakout from the long-term trend.
93. Common Points All Of Reversal Patterms
A)The first signal of an impending trend reversal is often the breaking of an important
B)The larger the pattern,the greater the subsequent move
C)Topping patterns are usually shorter in duration and more volatile than bottoms.
D)Bottoms usually have smaller price ranges and take longer to build
94. The head-and-shoulders formation is confirmed only when the completion of the three rallies and their reversals is followed by a breach of the neckline. The failure of the price to break through the neckline on closing prices basis puts on hold or negates the validity of the formation.
95. The double-top formation is confirmed only when the full completion of the two rallies and their respective reversals is followed by a breach of the neckline (the closing price is outside the neckline ).The failure of the price to break through the neckline puts on hold or negates the validity of the formation.
96. The flag formation is a reliable chart pattern that provides two vital signals: direction and price objective. This formation consists of a brief consolidation period within a solid and steep upward trend or downward trend. The consolidation itself tends to be sloped in the opposite direction from the slope of the original trend, or simply flat.
97. A Breakaway gap provides the direction of the market.
98. The runaway or measurement gap provides the direction of the market. This gap confirms the health and velocity of the trend.
99. The runaway or measurement gap is the only type of gap that provides a price objective. The price objective is the previous length of the trend, measured from the runaway gap, in the same direction as the original trend.
100. The exhaustion gap provides the direction of the market.

101. Near the beginning of important moves, oscillator analysis isn’t that helpful and can be misleading. Toward the end of market moves ,however ,oscillators become extremely valuable.
102. When the oscillator reaches an extreme value in either the upper or lower end of he band, this suggest that the current price move have gone too far too fast and is due for a correction of some type.
103. The oscillator is most useful when its value reaches an extreme reading near the upper or lower end of its boundaries. The market is said to be overbought when it is near the upper extreme and oversold when it is near the lower extreme. This warns that the price trend is overextended and vulnerable.
104. A divergence between the oscillator and the price action when the oscillator is in an extreme position is usually an important warning.
105.-Oscillator-The crossing of the zero line can give important trading signals in the direction of the price trend.
106.Because of the way it is constructed, the momentum line is always a step ahead of the price movement. It leads the advance or decline in prices , then levels off while the current price trend is still in effect. It then begins to move in the opposite direction as prices begin to level off.
107. RSI is plotted on a vertical scale of 0 to 100. Movements above 70 are considered overbought, while an oversold condition would be a move under 30 .Because of shifting that takes place in bull and bear markets, the 80 level usually becomes the overbought level in bull markets and the 20 level the oversold level in bear markets.
108. The first move of RSI into the overbought or oversold region is usually just a warning. The signal to pay close attention to is the second move by the oscillator into the danger zone. If the second move fails to confirm the price move into new highs or new lows, a possible divergence exists. At that point ,some defensive action can be taken to protect existing positions. If the oscillator moves in the opposite direction, breaking a previous high or low, then a divergence or failure swing is confirmed.
109. Stochastics simply measures , on a percentage basis of 0 to 100, where the closing price is in relation to the total price range for a selected time period. A very high reading (over 80) would put the closing price near the top of the range ,while a
low reading (under 20) near the bottom of the range.
110. One way to combine daily and weekly stochastics is to use weekly signals to determine market direction and daily signals for timing(it depends from the type of the trader). It’s also a good idea to combine stochastics with RSI.
111. Most oscillator buy signals work best in uptrends and oscillator sell signals are most profitables in downtrends. The place to start your market analysis is always by determining the general trend of the market. Oscillators can then be used to help time market entry.
112. Give less attention to the oscillators in the early stages of an important move, but pay close attention to its signals as the move reaches maturity.
113.The best way to combine technical indicators is use weekly signals to determine market direction and the daily signals to fine-tune entry and exit points. A daily signal is followed only when it agrees with the weekly signal. (daily-weekly, 4 hour-daily,4 hour-1 hour).
114. The failure of prices to react to bullish news in an overbought area is a clear arning that a turn may be near. The failure of prices in an oversold area to react to bearish news can be taken as a warning that all the bad news has been fully discounted in the current low price. Any bullish news will push prices higher.
115. -Elliot Wave Theory- A complete bull market cycle is made up of eight waves, five up waves followed by three down waves.
116 -Elliot Wave Theory- A trend divides into five waves in the direction of the longer trend.
117-Elliot Wave Theory- Corrections always take place in three waves.
118-Elliot Wave Theory- Waves can be expanded into longer waves and subdivided into shorter waves.
119-Elliot Wave Theory- Sometimes one of the impulse waves extends. The other two should then be equal in time and magnitude.
120-Elliot Wave Theory- The Finobacci sequence is the mathematical basis of the Elliot Wave Theory.
121-Elliot Wave Theory- The number of waves follows the Finobacci sequence.
122-Elliot Wave Theory- Finobacci ratios and retracements are used to determine price objectives. The most common retracements are 62%, 50% and 38%.
123 -Elliot Wave Theory- Bear markets should not fall below the bottom of the previous fourth wave.
124 -Elliot Wave Theory- Wave 4 should not overlap wave 1.
125 .Support and resistance are the most effective chart tools to use for entry and exit points. For purposes of placing stop loss, support and resistance levels are most
126. One of the commodities most effected by the dollar is the gold market. The prices of gold and the U.S. dollar usually trend in opposite directions.
127. The Yen is sensitive to changes in the price or structure of the raw material
128. The commodity-producing countries (Canada, Australia, N. Zealand ) are more
dependent on Japan than the other way around.
129. The Yen is sensitive to the fortunes of the Nikkei index, the Japanese stock market and the real estate market.
130. The majority of the pound transactions take place in London with a volume decreasing significantly in the U.S. market, and slowing down to a trickle in Asia. Therefore, in the New York market, many banks have to stop quoting the pound at noon.
131. Swiss Franc has a very close economic relationship with Germany, and thus to the euro zone.
132. The major markets are London, with 32 percent of the market,New York with 18 percent and Tokyo with 8 percent. Singapore follows with 7 percent, Germany has 5 percent and Switzerland, France and Hong Kong have 4 percent each.
133. Don't use the markets to feed your need for excitement.

Sunday, January 10, 2010

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