The Basics of A Trade

For an ordinary person, trade is nothing but the exchange of goods or services within an agreed exchange rate. You purchased a pack of candy for $2, and the trade is done. You purchased a $45,000 4-door sedan, and the trade is done. You purchased a $4.5-million house, and the trade is done. The deal is closed once you got what you want out of your money, and the seller got what he wants out of a thing or property he sells to you.

However, for traders on different exchanges, trade is always a priority to consider. They have invested from hundreds to hundred thousands of dollars in the hope of generating larger profits later on. By trading different assets and securities with different traders coming from different exchanges, they are hoping that they will be able to come up with a huge profit and continue their trading careers until their bank accounts either swell or become dehydrated.

Furthermore, for different national governments, trade is always a blessing that everybody should be thankful for. The economy of different countries heavily depends on the performance of both international and local trades in the market. Successful trades often translate to a higher GDP or gross domestic product, which is one of the indicators of a prosperous national economy. Successful trades also translate to additional employment, helping jobless people to have work and earn for their respective families.

Trade is also a blessing for different stock traders (individuals who are engaged in trading stocks) and different corporations who are issuing stocks to the public to raise additional revenues. Once the market value of a company stock becomes higher, traders who hold that particular stock are guaranteed of a profit once the stocks are disposed to interested investors. On other hand, corporations that issues stocks to the public are also guaranteed to huge return of investment since the value of their common stocks in the market are now higher that it was previously released. In other words, both parties benefit from the actual trading of stocks in different exchanges.

However, it does not necessarily mean that you will automatically call it a “deal” when a corporation or a trader comes to you and offers you some stocks. Just like buying a home or any expensive assets, you need to study first the movement of the market and determine if it will be profitable to make a deal or not on that particular moment. Such extensive study is also known as technical analysis.

In finance and investment, technical analysis is the study about an asset’s or security’s (in this case, the security is the stock) price action (movement of the price, volume, and open interest) in the market to forecast profitable price trends and movements. It typically uses different charts of both past and present price movements in order to come up with a well-established price trend. Such price trend will help you determine if you will be able to profit when you buy or sell a particular stock at that period or not.

Trading stocks are profitable yet it includes risk that can put your investment in danger. By employing technical analysis in your stock trading activities, you will be able to eliminate that risk applied within your investment.

Technical Analysis Software: Making Your Predictions More Accurate

Technical analysis is the art of predicting a particular security in the financial market.

The word “prediction” itself will really attract you if you are a trader in the financial market. Besides, what kind of trader wouldn’t want to know the future of a particular security?

If you have the ability to predict the outcome of the financial market, you might as well make some money out of it.

It may seem impossible to predict the outcome of the financial market but a certain tool that is growing more and more popular today claims that it can actually predict the future of the financial market.

This tool is called technical analysis. Technical analysis, unlike fundamental analysis is more concerned about the actual market movement itself. It doesn’t care about the economical factors or the political factors that also affects the market’s movement.

However, there are some people who are still skeptical when it comes to the accuracy and the efficiency of technical analysis. Besides, how can you know about the future by basing it on the past market movements?

In technical analysis, it will try to find some trends or patterns that can happen again in the future. Once this pattern is found, you can easily know what will happen next.

As you may know, fundamental analysis is concerned on why the market moved. It will concern it self with the past performance of a company, the political stability of a particular government when it comes to trading currency, and will also concern itself about the money management of the particular company. In technical analysis however, it is concerned about the actual movement itself. It doesn’t care about the performance of the company or how it manages its money.

However, because of the growing popularity of technical analysis, many indicators are required in order to accurately predict the future of the financial security. It will include price change indicators, strength indicators, volatility indicators and others.

In order to keep up with the indicators, you will need a software to monitor it for you. A good technical analysis software will include charts for you to base your predictions, real time data streaming, and it should also include zoom features to see changes more accurately.

You have to know how to detect patterns by looking at the opening price, the closing price, the highest price for the day, the lowest price for the day and everything concerned when making pattern to let you know the future outcome of the market.
It is important that you should get a good software where it can compute the outcome of the market by basing on the past performances of a particular stock.

However, you should always remember that technical analysis, even if you have software, is not 100% accurate. You should only consider technical analysis as a guide for you to arrive at a good decision.

It is also wise that you should also consider fundamental analysis and compare them to technical analysis to confirm if it is accurate or not.

Technical analysis software can help you in many ways by predicting the financial market. However, you should never neglect your skills as a trader and allow yourself to be controlled by technical analysis software. You should only use technical analysis software to help you make decisions, not entirely following them what it tells you to do. You should also trust your instinct as a trader in order to be successful in this field.

Technical analysis on Stocks: Improving Your Stock Trading

Technical analysis on Stocks: Improving Your Stock Trading

The stock market is one of the most popular financial markets that people are trading today. Many people consider the stock market as one of the best money making markets to earn extra income or to consider as a good money making career.

Purchasing a stock means purchasing a part of the company. This will mean that you will be a part owner of a particular company. This is issued by companies in order to attract new investors and get some additional capital for the company.

If you are a stock holder, you will have some influence on how to run the company. But, you will not have any responsibility in case the company is facing a lawsuit or if it is going to declare bankruptcy. However, if in case this happens, the stock you are holding will become low in value or can become worthless.

Stock investors purchase stocks of a particular company because they expect the company to grow; hence, the market value of the stock will also grow. For example, people who have brought stocks of Microsoft in 1980s, when the company was still in its infancy and kept the stocks for a quite a period of time, have seen that there has been a large growth in the value of the particular stock. This is something many investors dream about.

However, you should realize that investing in a new company is very risky but can really be profitable in case the company grows. So, this is where stock trading comes in. If you are an individual stock holder, you will need a broker to make all the transactions for you. Brokers are people you need to buy and sell stocks for you. For this service, they will be asking for a commission. However, you should always remember that it will always be your decision and not theirs whenever you want to purchase or sell a particular stock. Stock brokers will only be taking orders from you.

This is why it is important for you to know about technical analysis of stocks. Technical analysis is the study of forecasting stock price and movements. They will be able to show you the trend of the stock you are holding or the trend of a particular stock you want to buy.

Technical analysis of stocks will provide you with the security you need in and also profit from it. It is primarily the study of charts of the past price action of stocks and will give you an assumption on where the stock will likely go.

Stock analysis will give you if a particular stock is neutral, bearish or bullish. Knowing about this information will give you an idea on what trend a particular stock have.

It is important for you to get a reliable technical analysis of stocks in order to get you accurate information about trend reversals and when to expect it. With this kind of information, you can be sure you can generate profit and minimize risk.

You have to realize the fact that you cannot control the market and whatever stock you purchase will be either at a low or at a high. This is why it is important to know about the stock forecast by having a technical analysis about a particular stock.

However, stock analysis isn’t 100% accurate. But, you should know that this kind of tool will tell you where the trend is likely to go. It will tell you the most likely outcome of the stock in advance.

Therefore, this tool should never be considered to be the basis of your decisions but it should be considered as one of the guides for deciding what move you will do next in the stock market.

Always remember that knowing about the stock market trend is a very powerful tool you should have. It will provide a glimpse in the future trend of the stock and can really minimize the risk and maximize profit.

Technical Analysis: Predicting the Future Market through Technical Analysis Chart Patterns

Getting in the financial market means you will be investing your hard earned cash in an attempt to make a profit. This is why you should treat trades seriously and not something you should play around with. You need to be sure of your investment in order to profit from it and minimize the risk of losing your money.

When investing in the financial market, you have to know that you have to lose money in order to gain money. As you probably know, businesses spendS cash to gain cash. They spend it on advertising, and they spend it on the goods they want to sell. The same goes for the financial market. You will be investing money in order to gain money. If you don’t spend money, your money will remain stagnant.

You should accept the fact that you will definitely lose some money in the financial market. But, if you do it right, you can cut losses and develop profit.

This is why there are tools that are being researched by investors in the market.

An example of one good tool to minimize risk and maximize profit is through technical analysis.

This is a tool that is supposed to predict the outcome of the market. However, many people are still skeptical with technical analysis and consider it more as an art instead of exact science. There is no scientific proof that supports technical analysis.

But, since there are a few alternatives in predicting the outcome of the market, this tool can be used for speculation.

Technical analysis depends on charts to predict the outcome of a specific financial instrument, like stocks or currency. Many people are beginning to use this kind of tool in order to cut their losses and maximize their potential income. With this kind of tool, you can be sure that you will have a guide in your decisions.

You should be aware that every decision you make in the financial market will affect your income and losses, if you can act quickly, you can eventually gain profit and minimize losses.

The charts used in technical analysis will display the highs and lows of the market. A technical analyst will base their decisions on the price trend. They will predict the outcome of the market by basing it on the past actions of a particular stock, or currency.

There are three kinds of charts that technical analysts examine to determine where the prices will likely go. The first kind of chart is the simplest and the easiest to read. This chart is called line charts. This chart will show you the broad overview of the price movement. Since this chart only shows the closing price at a specified time, it can be very easy to pick out patterns and trends.

However, this kind of chart doesn’t provide the details that bar and candlestick charts can provide.

The second type of chart used is called the bar chart. This kind of chart will display the price spread in a specified time interval. It is easy to tell if the price rose or fell because it will show both the opening price and the closing price on that time interval. However, in order to read bar charts accurately, you will need software that will show real time bar chart streaming and has a zoom capability.

The next type of chart is called the candlestick chart. This chart is relatively similar to bar charts in showing the high highs, the high lows, the low lows and the low highs. However, the candlestick chart is much easier to read because it is color coded. It will be a great help in your analysis.

These are the charts used by technical analysts. With this charts, you can determine the price trend of a particular stock or currency. Basing from this charts, you can predict the future market for your stocks or the currencies you are holding.

Technical Analysis: A Journey into the Occult? Is It Accurate or Just Plain Speculations?

Many people have been debating that technical analysis is just a journey into the occult where people are led to believe that this kind of tool to predict the outcome of a financial market is just plainly a fraud and very risky to follow. Some say that technical analysis is just speculation, a guess as you may want to call it.

However, there may be some facts that technical analysis may have some science mixed in it.

Understanding how technical analysis works can be easy. First of all, there are two kinds of analysis done in the financial market. The more accepted form of analysis is called fundamental analysis.

Unlike technical analysis, fundamental analysis is concerned why the market moves. A fundamental analyst will be concerned about things like political factors and economical factors. They will often watch the news about how a particular company is managing their money and how a stable a government is when it comes to dealing with Forex or currency trading.

In technical analysis however, it is just concerned about the financial market movement itself. It does not concern why the market moves and it doesn’t care about the news, economical factors, and the political factors.

Technical analysis focuses more on the lines that you may have seen moving or zigzagging in Wall Street. If you’ve seen the business news, you may have seen bars, or lines fluctuating up and down. This is where a technical analyst concentrates.

The theory behind technical analysis is that it will try to predict the future by basing from the past movements of a particular stock or currency. It may seem very hard to do but it detects patterns of price changes, buying and selling strength, the volatility and other things concerned.

There are so many indicators a technical analyst will have to consider in order to arrive at an accurate prediction of where the market will go next in the future. It may predict where it will go next year, in a few months, in days and even in hours.

This kind of technique is relatively hard to master and you will need a software in order for you to successfully predict the outcome of the market in a single trading day.

It is a fact that technical analysis is one of the biggest things in the financial market today and many people try and attempt to do it but few have been successful in fully understanding how this method works.

Technical analysis predicts the future outcome of a particular security by studying the past performances of the particular security and finding a trend or a pattern in it. Once an analyst found a pattern, he or she will be able to tell you what the next move will be.

It may seem very hard to believe and hard to trust but if you try and get some time to study it, you will see that there is a fact in technical analysis and it’s just not some guess.

However, you should also consider that technical analysis isn’t always accurate. To make sure of the findings, you may want to study both fundamental analysis together with technical analysis. By comparing this two, you will have something to guide you in your decision making.

Whatever method you choose, always remember that technical analysis or fundamental analysis will serve as a very useful guide to your money making venture in the financial market. You should also learn how to trust your “gut feeling” instinct.

Technical Analysis Indicators-The Judge of Stocks within the Market

The word “analysis” exists because it has something to do within various disciplines of our lives.

In philosophy, analysis is used as a technique by different philosophers to consolidate various facts and form a philosophical belief that is useful to our everyday lives.

In addition, analysis is also used in various disciplines of computer science, such as the formulation of algorithms, evaluation of the behavior of different computer programs as well as the design and execution of a computer software.

Even in crime investigation, analysis is an important element. It is used in solving crimes by gathering all the facts and analyzes all possibilities why the crime happened through gathered facts and possibilities. Furthermore, cryptography which is used to protect all important and sensitive government and/or private documents and data make use of analysis to obtain the meaning of an encrypted message.

And mind you, analysis is an inevitable and much needed component for every stock market player. In fact, there are two different kinds of analysis in the stock market— the fundamental and technical analysis.

Among the two kinds, the technical analysis brings more importance to stock market players. In fundamental analysis, you will evaluate a security (which in this case, is a company’s stock) by attempting to determine its intrinsic value by evaluating various related financial factors within the dimension of the company. In other words, it speaks of analyzing the characteristics of the company itself in order to determine the stock’s value.

On the other hand, technical analysis takes a very different approach. It does not take into account the characteristics of the company to determine the value of the stuck. Instead, technical analysis experts looks on the price movements (both past and present) in the market to determine the value of the stock and identify if it is profitable to distribute it in the market within the given frame of time.

The evaluation of price movement in technical analysis does not limit alone to the actual market value of the stock. It also includes the movement of the stock’s volume in the market and its open interest.

In order to facilitate the conduct of a successful technical analysis of a company’s stock, there are various indicators that are used for such purpose. Some of these are as follows:

->Moving Average- the stock’s time and price series can be evaluated as a representation of a longer-term trend thus leads to smoothing out short-term fluctuations or “noise”. In other words, the moving average indicator is used to obtain a clean and profitable trend by filtering out short-term fluctuations which is a primary element that affects the performance of stocks in the market.
->Bollinger Bands- it is a technical analysis indicator formulated by John Bollinger during the 1980’s. It involves the concept of trading bands and is used to determine the relative higher or lower price of a stock. It employs the use of 3 lines (the lower band, the upper band, and the centerline) to define the range of stock prices.
->Relative Strength Index (RSI) – it is a technical analysis oscillator that shows stock price strength through the comparison of downward and upward close-to-close movements.
->Accumulation and Distribution Index- it is an increasing total volume which involves the addition or subtraction of stock volume in proportion with the day wherein the close is identified between the day’s low and high.

There are other indicators that are used in technical analysis of stocks. Stock traders must learn how to use these indicators to determine the performance of stocks in the market and identify if they will gain profit or lose investment at the end of the trading day.

The Fundamentals of Technical Analysis

How would you like it if you have the power to predict the future? Or, at least the future of the outcome of the financial market?

With this skill, you can be sure that you will always make the right decisions when it comes to trading stocks, futures, options, and currencies. With this ability, you will be able to acquire big profits with certainty because you know the future of the trends, prices and as well as avoiding the risks of losing money.

Investors in the financial market would really pay a lot of money to get information about the future of a certain security.

This is why they are now discovering new ways of determining the possible price ranges and the trends of a particular security they want to buy or sell.

If they do have this ability, they would now be very rich and would be impossible for them to lose money.

However, the sad fact is, people don’t have the ability to predict the future. This is why many people speculate. In the financial market, one way to speculate is by using technical analysis. This tool claims to accurately predict the outcome of the market by basing it on the technical analysis charts, trends, price change, and volatility.

With this tool, you can have a guide on what decision you would want to make when it comes to the financial market and making a profit.

Technical analysis is based on 3 main fundamentals. In order to accurately predict the market outcome, you have to master these three fundamentals of technical analysis.

The first thing you should consider in technical analysis and how it works is the market discount. A technical analyst is not concerned about the reasons behind a price movement, like political factors, supply and demand, and market sentiment. He or she is only concerned with the price movement itself. He or she won’t care if he buys or sells stocks from a small company or a large company.

The second thing you have to consider is the price moves in trends. The price can move in three directions: up, down and sideways. If one of the directions is constant, it will usually create a trend. You have to know that the market trend is simply the direction of a particular market. And, this is what you should be concerned about when analyzing technically. Once again, as a technical analyst, you don’t have to ask questions about why it is going in that direction. You will only determine the market direction or the trend.

The third thing you should consider about technical analysis is that history tends to repeat itself. Prices that go up will eventually come down and vice versa. It is only a matter of predicting when it will rise or fall. A technical analyst will predict when this will likely happen by examining charts and price movements of a particular security.

However, technical analysis isn’t all that 100% accurate and is still being debated as to the legitimacy of this theory. It is even considered as an art instead of exact science.

So, because it isn’t all that accurate, you will need some things to support your prediction. You need additional technical indicators in order to confirm your predictions.

Here are some examples of technical indicators that you can also use in analyzing the financial market:

->Support Resistance Indicators
->Volatility Indicators
->Cycle Indicators
->Strength Indicators
->Momentum Indicators

Mastering to use these tools will enable you to know where the market is going. If you use it accordingly, you can be sure that you will profit from the financial market and avoid losses.

Technical Analysis in Europe Goes Interactive

One more mistake and it is the end of everything for you.

It is one of the unwritten protocols in trading securities, whether it is a commodity or a stock. Committing mistakes on the earlier part of your trading career is acceptable since you are just learning the ins and outs of trading in the market. There are trades that you must not deal with, yet you have closed it instead, thus resulting to several losses at the end of the trading period. Learning from your mistakes will help you deal with your succeeding trades the right way.

However, committing the same mistakes all over again is as good as saying that you do not understand what you are doing. Remember that you are dealing with investments here-not just hundreds but even thousands of dollars involve within a single trade. Thus, there is a need for you to avoid the mistakes that you have previously committed in your earlier trades to avoid incurring successive losses that may lead to bankruptcy.

That is why most investors and traders are very particular with the movements of different securities around the market. One of the tools that they use to establish possible movement trends is technical analysis, which illustrates such trends in a graphical way that can be easily understood. Technical analysis involves evaluation not only on the trends but also on the peaks, bottoms, and other factors that may affect the movement of a particular security.

Once you have determined the pattern, you will be able to make decisions-if you will buy or sell that particular security or not. In other words, technical analysis will help you avoid mistakes that may bring you to bankruptcy in later time.

There are various resources wherein you can avail of the technical analysis technology, whether paid or free of charge. However, in Europe, technical analysis is brought to a common website wherein you will see various graphs that shows the varying trends of different securities traded in the market for that particular day.

Take note: FOR THAT PARTICULAR DAY. That is how detailed technical analysis in Europe is.

It does not only involve stocks, but foreign currency and commodities trade as well. It allows you to select and compare stocks from different international exchanges with the inclusion of unique sector selection and other financial data presentation.

It also features technical analysis on different security markets across Europe, primarily in its major cities such as Amsterdam, Brussels, Frankfurt, Helsinki, London, Milan, Oslo, Paris, Stockholm, and Zurich. Indices of various traded securities within Europe as well as graphs are included to illustrate what is happening on the market on a particular trading day.

Aside from the online technical analysis, there are also press releases provided to inform the trading public of the whereabouts around the market, such as the top grosser and loser on various trades. Such press releases facilitate consistent information dissemination on the trading public.

Online technical analysis in Europe is just a way to show that investors and traders are important in the development of local economy. So to speak, it is now the welfare of the trading public as a whole.

So if you will go on trade within different exchanges in Europe, don’t forget to go for a technical analysis first to ensure a profitable trading period at the end of the day.

Technical Analysis Documents: A Helpful Guide in Your Trades

Technical analysis is a very useful tool in determining the future market trend. It will contain information about trading volumes, price changes and others to identify where the particular security is going.

It will forecast the prices of security by basing it on the patterns in price changes, buying and selling trends, and more.

Technical analysis is an important tool in the financial market. It will help you, as a trader, decide whether to buy or sell a particular security. Since this tool will provide you information and a possible outcome of a particular security, it will definitely help you in your order execution whether to buy or sell.

Since the financial market is a very unstable and volatile market, this tool serves as a guide for thousands or even millions of brokers and traders.

However, you should always keep in mind that technical analysis isn’t 100% accurate. It is even considered as an art instead of exact science. It is entirely speculative and can give no proof of its accuracy. This is why you should always remember that technical analysis documents are there to only guide you with your decisions not to follow it.

There are numerous companies and websites that offer technical analysis. They will provide you a document of a technical analysis of a particular security you chose in your registration.

The documents will contain all the data necessary for you to arrive at a final decision in the buying or selling of a particular security.

It is important that you should combine different kinds of analysis of the financial market in order to arrive at a final decision. Do not just base all your decisions in technical analysis as this can be very risky. This is because technical analysis only speculates basing on the market trends and not on the specific data about a particular company, such as cash flow, dividends, projection of future dividends and others. This analysis is called fundamental analysis.

Many traders try to predict the outcome of a particular security by combining both technical analysis and fundamental analysis. By doing this, they are able to arrive at a more accurate prediction or speculation on where the price of a particular security will go.

Comparing both of these documents will really help in your decisions as a trader.

However, the technical analysis method is still being debated today. Some say that it is an accurate way in predicting the market while some say that it is purely speculative and there is no proof that this method works.

Whatever your decision is on technical analysis, you can be sure that you can use this kind of tool to arrive at a decision in your trading strategy. It will somewhat help you in terms of knowing about the market trend and give you some idea on what to do and what is the best move on a particular situation.

Always remember that with a technical analysis, you will not longer spend lots of time reading the charts, you can hire someone to do it for you and will provide you with the document you need with charts and the market forecast.

You should always keep in mind that with enough information, you can really improve your trading strategy with technical analysis.

Technical Analysis Charting: A Single Point can be a Profit or Loss

If you have the chance to read the business section of a newspaper, probably you have noticed a line graph that represents the movement of different currency or stock prices for that particular day. If you will try to visit the same business section in the same newspaper, you will notice that the line graph is not the same graph that you have seen yesterday, indicating that there are movements within the market for that day.

Graphs, or called charts (in economic analysis) is a type of graphical representation of tabular numeric data or given functions. It is used to show large data quantities and its relationship between each other and its respective parts in a manner that will be easily understood by readers. In other words, the raw data that usually come into the form of large figures or tabular numeric numbers can be easily expressed in the form of charts.

Although it is used in a wide variety of applications (governance, health services, electricity generation and distribution, and others), charting is commonly used on the economic market, especially in conducting technical analysis. Technical analysis is used to determine the performance of a security within the market (be it a commodity, stock, or any foreign currency) by evaluating its price movement (both past and present) in the market. It also involves the analysis of a security’s volume and open interest in a particular trading day.

Technical analysis primarily involves the study of charts or past price actions (or the movement of a security’s price and volume on a particular trading day). Typically, charts that are used in technical analysis represent the performance of a security on a series of prices over a set of time frame. For instance, a particular chart may show the commodity’s price movement in over a half-year period, wherein each point in the graph corresponds to the closing price for the day the commodity is traded.

There are several things that you should be aware of when looking on charts that are used in technical analysis. These include the information entered to the charts such as the following:

->Time scale- it refers to the time frame that is commonly found on the bottom of the chart, which may differ from seconds to decades. The most commonly used time frames are daily, weekly, quarterly, and annually. Keep in mind that the longer the time frame (annually or by decade), the less the chart shows details. Every data point that you can see in the chart represents the closing price of the security or its low or high price, depending on the chart that you are looking into.

->Price scale- it is typically found on the right hand-side of the chart. It illustrates the security’s present price and compares it to the recorded data points. It can be either constructed in a linear (arithmetic) or logarithmic way.

There are three main types of charts used in technical analysis which is used by traders or investors depending on the information that they look for and their individual skill levels. These are as follows:

->Line chart- it represents the closing price of a particular security over a time frame. A line is formed by connecting data points (which represents the closing prices over a time frame).

->Bar chart- it illustrates the detailed information of line charts by adding several key data pieces to the data point. Such chart is composed of series of vertical lines that represents the low and high for each trading period, together with the closing price. The open and close are shown through the vertical lines with the horizontal dash.

->Candlestick chart- it resembles just like a bar chart, only that it is constructed in a visual manner. It has a thin vertical line that illustrates the trading range within the period. It makes use of different colors to explain the scenarios happened during that trading period.

Charting used in technical analysis is important-it can never be disregarded for every point, line, or bar represented in this chart means either profit or loss for traders and investors.