Trading and investing Syndication Mon, 25 Jun 2012 23:56:54 -0500 webmaster@moneymakergroup.com (MoneyMakerGroup) IP.Blog 60
I have read it a few times that it is best (in the stock market) to buy in November and sell in May. And then you stop trading till another season starts. Why is that? In summer, there usually is very little action. Another reason is that most traders want to take their profits and they do it by selling their positions that they had opened in November. That’s why you will notice one tendency and that is that securities are usually very cheap during summer compared to other times of the year. That’s why it is very good to buy at least some percentage of the securities that you have intentions of buying (at cheaper prices) and then wait for big moves that usually start in November, or sometimes a little earlier (in October).

Another principle is – never invest money that you have borrowed, or we might rephrase it by saying that you should not borrow to invest. Most of the investments that start from borrowed money end up being complete losses and investors lose more than they can afford. This rule intersects with another one, which is – never lose more than you can afford. So, learn to control your greed and other similar emotions and refrain from borrowing money for investment.

The last principle that I want to mention is: if you are not willing to buy securities at a current price, maybe it is better to sell. That is another way of defining the best timing to sell. It is time when securities become too expensive and you do not want to buy at those prices. It means it could be very good level to sell for profit and go away.

If the topic interests you I recommend reading some useful material on the subject:

Top 15 Forex trading strategies for profit
25 rules for investing
How to invest for dummies]]> Wed, 20 Jun 2012 08:40:43 -0500
The first one is strict discipline. You cannot expect to win at the game if you are not able to discipline yourself. Spontaneous decisions might be good in art, sports, but not trading markets. If you are a very spontaneous person you will soon see it for yourself. Self control and cold type logical thinking are the key character features that you will need badly in trading the markets, especially Foreign Exchange Market. So, get ready to tame your emotions if you are really ready to step into the market.

Another obligatory thing in this business is having a well tested and reliable trading strategy. You need to understand direction of financial markets and follow them. Your trading strategy will help you to do that. You might define a lot of various trading systems, but you will need to know which to use best under specific market conditions. You will not be able to design a perfect trading system, but you should try to get to this target as close as you can by including various filters to your trading method. I may write on the topic in my future posts more.

The last thing which you have to master is understanding of timing in the markets. There are times when you should definitely trade and there are times when you should refrain from trading. You cannot be profitable all the time. And you cannot use one and the same trading system for all times. You cannot use range trading strategy in trends as well as trend trading system is not good in ranges. It will take time for you to figure out what works where, but if you are not lazy and do your trading homework diligently you will become a master of this trade.

Hope you enjoyed the article. For more information please read: day trading strategies and rules for dummies, forex news and swing.
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Looking at most recent price action you can see very good opportunities which you could have used to trade eur/chf from the bullish side. From 23rd to 29th of June it has formed a nice inverted head and shoulders pattern. It became clear that the downtrend in the security was over and the pair is about to go up. When it cleared up 1.1970 level, it was a good sign that the trend changed from bearish to bullish and we can start buying. Adding to a position becomes simple when you just wait for a counter trend move and when it is over you jump back onto bullish trend.

The pair which is among the most volatile pairs and biggest movers in forex market is eur/cad. It is very good for trading various fundamental economic news releases. The pair can go more than hundred pips a day and probably would only be a slower mover than gbp/jpy, gbp/cad and gbp/aud. However, when news from Canada comes, the pair moves a lot and you can take advantage of that by trading this piece of news.

On the 29th of June, there was a possibility to trade the type of macroeconomic event that I have just mentioned. A few days before that eur/cad had trouble breaking through 1.4070 level. However, when news came, the support was broken and the pair started a new short term downtrend. What do we do now with the pair? We look for possibilities to trade it from the short side. When it rallies upwards, we sell it. In this way we would be trading in the direction of the trend and that is the way to trade any security in any financial market.

I see that I will not be able to cover other orderly and volatile pairs in currency markets in this post, but I will try to do it later, maybe in my next article. If you want to learn more about Forex trading I invite you to visit my blog Market trends and read articles on Forex factory and moving average application.
]]> Fri, 23 Sep 2011 01:38:42 -0500 make money online guru with your money. Therefore, you have to be very picky when selecting whom you are going to listen to. You have to remember that big money comes only when you understand principles of how search engines work and how to take advantage of that.

I am not going to talk on that in the article. I just want to show you some advantages of online business. First, and it is probably the best thing if you are not going to succeed, is the fact that you can start your online business without a single penny in your pocket and you will not have to do any investments. How is that possible? Well, you can simply take a blogger blog put Google Adsense on it and start writing blog posts. If you are able to push the blog to the first page of Google you will do it without any financial investment on your part.

Secondly, you do not have to be a professional writer to do that. Choose a niche that interests you and that you are quite knowledgeable about and start writing on that. Nobody will ask you a diploma in order to allow you to do this kind of stuff. No, you will be your own boss and set your own targets as well as topics you want to cover in your posts.

I believe these two things are the best advantages if you want to go into this kind of business.

See also: How to make quick money, tips to save money.
]]> Tue, 13 Sep 2011 09:33:30 -0500 trend analysis in various financial markets. Some do it using various trading indicators, others simply watch price action around important technical levels, yet others do serious fundamental analysis to identify upcoming trends and prepare accordingly. When I noticed that this is the easiest yet most profitable trading strategy I started studying currency markets to identify how trend trading works. It took a lot of time to find out and I still cannot say with confidence that I know how to do it perfectly, but I definitely know the principles that could help you to trade more profitably large market moves.

One of the things that you should master is the understanding of nature of markets. You should know that markets spend most of their time in ranges and trends are very rare. You can learn to trade ranges too, but this is a more complicated strategy and I will cover it in my later posts. What you need to know is to be able to identify time in the market when a range is about to be finished and a breakout to occur.

You do not have to do much. You simply have to identify limits of the range the market is in and place breakout orders beyond those limits. By limits I mean support and resistance levels. You would place buy orders beyond resistance and sell orders below support. If you are trading several securities you need to see which security breaks first and follow the leader for it will give you the biggest profits. When a security or a group of securities will break out from the range you have identify you should get ready for a big move.

Why? Because investors place large orders outside those limits and trade market breakouts with an expectation of big moves and big money. Some of them build a line of positions to maximize their profits. This is how you can trade a trend. I will talk about specifics and details of the strategy more in my future posts. Today I just wanted to give you an intro about tendency trading. Hope it was useful. Be sure not to risk more than you can afford and do some demo trading before you start trading with real money.

See also:

macd indicator

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.
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