Tuesday, April 15, 2014

European Central Bank

European Central Bank officials have become vocal about the strength of the exchange rate and how it weighs on euro-zone inflation. Continued low inflation in the euro zone could pose a threat to the ECB's inflation expectations in the medium term and could force the central bank to implement nonstandard measures such as asset purchases.
"While the comments from policy makers have become decidedly more pointed recently, the lack of action by the ECB thus far should ultimately limit the euro's losses. The single currency is unlikely to fall sharply until the threat of policy response from the ECB becomes more imminent," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc.,

Saturday, April 12, 2014

Moving Average Convergence-Divergence

 MACD (Moving Average Convergence-Divergence) is a highly effective and practical trend-following indicator which is widely available on most technical analysis software programs. Traders and investors with this indicator at their disposal would be well advised to learn as much as they can about it and how to use it to improve their trade timing and selection. This comprehensive guide to MACD is a one-of-a-kind one-stop reference that will prove a valuable addition your trading library. It includes a bullet point summary overview of MACD, a detailed bibliography detailing all known references and articles relating to MACD, with annotation showing unique points covered in each source.
Divergence MACD

Friday, April 11, 2014

Wave 59 Trading Software


Use neural nets, price forecasting, and an amazing array of proprietary indicators in your own trading. Once accessible only to select CTAs and floor traders, these tools are now available to private traders for their own use. Try it for a day, and we guarantee you'll never want to go back to your old charting software! Use neural nets, price forecasting, and an amazing array of proprietary indicators in your own trading. Once accessible only to select CTAs and floor traders, these tools are now available to private traders for their own use. Try it fora day, and we guarantee you'll never want to go back to your old charting software!

Low risk Trading

 Low Risk: Entering at or close to the turn in price means you are entering a position in the market very close to your protective stop. This allows for maximum position size while not risking more than you are willing to lose. The further you enter the market away from the turn in price, the more you will have to reduce position size to keep risk in line.  High Reward (profit margin): Similar to number one above, the closer your entry is to the turn in price, the greater your profit margin. The further you enter into the market from the turn in price, the more you are reducing your profit.   High Probability trading Traders need the best time to enter a trade means knowing where the real buyers and sellers are in a market. When you are buying where the major buy orders are in a market, that means you are buying from someone who is selling where the major buy orders are in the market and that is a very novice mistake. When you trade with a new trader, the odds are stacked in your favor.
 
Low risk Trading

low float stocks

 Trading the low float stock can make you money in the NASDAQ. Many low float stocks can be traded but traders need to do some research. Stocks which have a float of under 10 million shares are considered to be low float. Many times the float is much smaller. Traders need to know facts like the number of outstanding shares, short interest, and what the company industry is.
  Low Float stocks are attractive investment to make money when trading because these stocks can move quickly higher without any substantial institutional support. Most Low Float stocks are extremely volatile so you need take this into account before chasing any of the stocks on this list as they can quickly move higher only to fall faster. Traders should not chase these stock once they have started to move.
Low float stock list

Tuesday, April 8, 2014

Option trading basics

 The beauty of paper trading is that you get to test your ideas without risking real dollars. Learn from your mistakes at no cost. At the same time, follow these paper trades as if your real hardearned dollars were at risk  which should teach you how to monitor open positions . There’s an emotional and psychological element to trading that causes human beings to react differently when we feel something important  money  is on the line, versus how we trade when we feel no such pressures. Please take the simulation seriously, as it is a core element in the flow of this program.You will very quickly understand that call options can give you the right to buy a stock at a specified price for a specified period of time, and that put options gave you the right to sell rather than to buy a stock.
You will also learn that if you were very bullish on a particular stock, you wanted to buy a call option, because if  you were correct and the stock rose significantly in price, your call option would allow you to buy that stock well below the market price. You could thus buy low  by exercising the terms of your call option and buying the stock at the specified price  and then sell high by selling the stock that had rallied . And relative to your small initial investment, your profits could be huge. Of course, all of this favorable stock movement needed to occur before the option expired, and if the necessary rally in the stock did not occur by the expiration date you would lose the entire sum you paid for the option.

Monday, April 7, 2014

Roth IRA

Many changes in the year to come will benefit all wage earners regardless of income. If you are now in a regular IRA you
might want to consider changing to the Roth. You will need to do your research first and make sure it is right for you. You can make deposits that are not tax deductible. Your money can be withdrawn after 5 years without paying any taxes. You can also leave your money in the plan for as long as you want.You need to look at the tax you would have to pay if you move from a regular IRA to a Roth account. In 2010 you can spread the tax over two years.
  You need to determine the tax bracket you are in when you decide to retire. You should look at the difference in keeping your money in a regular IRA or moving it to the new account. It would be best if you can leave the money in a Roth for 10 years or more.
You would need to look at what the tax amount would be today compared to ten years from now.You
will need to pay a conversion tax if you decide to move your money but you will save a great deal in the long run. You need to look at how does this fit into my overall retirement plan.
  What you need to ask yourself is how many years will it be until I decide to start taking the money out. The more years you leave the money in the account the more it will build up. You can also leave the money in the Roth for your children or someone else. There are no mandatory payment requirements.