Wednesday, October 22, 2008
Monday, October 20, 2008
Japanese Candlestick Charts
Candlestick charts provide the same information as a bar chart (open, high, low and close prices)
but does so in a clearer, easier to recognize style, in fact a visual depiction of price action during a single time period or series of time periods.
One candlestick itself can provide important information about the strength or weakness of the market during a given day or other time period, visually portraying where the close is relative to the open. Although one candle can be significant, depending upon its location on a chart, a candlestick pattern usually takes several candlesticks to produce chart formations that give the best signals.
Candlesticks may look identical but have an entirely different meaning after an uptrend than they do after a downtrend. Because they can be used in analysis in much the same way as bar charts, candlestick charts have quickly become a favorite of traders and analysts since being introduced to the West in 1990. Candlestick analysts have also added a little mystique to candlestick charts by giving various patterns clever names and providing more descriptive characteristics for these patterns than is the case in typical bar chart analysis.
Both types of charts, bar and candlestick, have their double tops, inside days, gaps and other formations. But candlestick analysis ascribes more meaning to the candlestick “bodies” – price action between the open and close – and to the “shadows” or “tails” – price action that takes place outside of the open-close range for a period.
Because of their popularity in recent years, you should become acquainted with the nuances and terms of candlestick charts if you aren’t already.
http://www.accesstradingmgmt.com/Forex.html
but does so in a clearer, easier to recognize style, in fact a visual depiction of price action during a single time period or series of time periods.
One candlestick itself can provide important information about the strength or weakness of the market during a given day or other time period, visually portraying where the close is relative to the open. Although one candle can be significant, depending upon its location on a chart, a candlestick pattern usually takes several candlesticks to produce chart formations that give the best signals.
Candlesticks may look identical but have an entirely different meaning after an uptrend than they do after a downtrend. Because they can be used in analysis in much the same way as bar charts, candlestick charts have quickly become a favorite of traders and analysts since being introduced to the West in 1990. Candlestick analysts have also added a little mystique to candlestick charts by giving various patterns clever names and providing more descriptive characteristics for these patterns than is the case in typical bar chart analysis.
Both types of charts, bar and candlestick, have their double tops, inside days, gaps and other formations. But candlestick analysis ascribes more meaning to the candlestick “bodies” – price action between the open and close – and to the “shadows” or “tails” – price action that takes place outside of the open-close range for a period.
Because of their popularity in recent years, you should become acquainted with the nuances and terms of candlestick charts if you aren’t already.
http://www.accesstradingmgmt.com/Forex.html
Exchange Traded Funds
Exchange Traded Funds (ETF's) are becoming more and more popular in the every day market. There are several ETF's available that trade millions of shares per day. The heavy volume translates to high liquidity, qualifying many of them as great Day Trade candidates. Some great examples of ETF's that qualify are QQQQ, DIA, SPY, QID, QLD, IWM, and many more! Of course, knowing when to trade and in which direction is the key to profitability.
We use 4 key rules to help maximize your ETF trading profits:
1) Careful Position Entry: When you initiate a trade based on a signal, the reasoning behind the
trade will be clear. We do not feel the need to have an open position at all times--every trade
will have a purpose and statistical probability of profit.
2) Strictly Limit Risk: Your day trading alerts on ETF's will be wrong sometimes. That is why
every day trade will have a well-defined stop loss that gets you out of the position as soon as
the trade is clearly moving in the wrong direction.
3) Let the winners ride: Scalpers and losing traders like to take profits quickly. We believe in
holding positions for as long as they still have a reasonable chance at even bigger profits. Once
an ETF trade has moved solidly into profitable range, we will often move our stop to our
entry price and hold the trade until it has PROVEN to us that it isn't going to breakout even
more. This will often result in a day trade that exceeds our original profit goals.
4) Scale In/Out: Initiate Trades with 1/4 of your intended position and Add-on in 1/4's as long
as the support holds. The same strategy is used as an trade exit - start selling your position as
it approaches target levels. This gives you an option to let a partial position "ride" while locking
in profits on the balance.
http://www.accesstradingmgmt.com/ETFs.html
We use 4 key rules to help maximize your ETF trading profits:
1) Careful Position Entry: When you initiate a trade based on a signal, the reasoning behind the
trade will be clear. We do not feel the need to have an open position at all times--every trade
will have a purpose and statistical probability of profit.
2) Strictly Limit Risk: Your day trading alerts on ETF's will be wrong sometimes. That is why
every day trade will have a well-defined stop loss that gets you out of the position as soon as
the trade is clearly moving in the wrong direction.
3) Let the winners ride: Scalpers and losing traders like to take profits quickly. We believe in
holding positions for as long as they still have a reasonable chance at even bigger profits. Once
an ETF trade has moved solidly into profitable range, we will often move our stop to our
entry price and hold the trade until it has PROVEN to us that it isn't going to breakout even
more. This will often result in a day trade that exceeds our original profit goals.
4) Scale In/Out: Initiate Trades with 1/4 of your intended position and Add-on in 1/4's as long
as the support holds. The same strategy is used as an trade exit - start selling your position as
it approaches target levels. This gives you an option to let a partial position "ride" while locking
in profits on the balance.
http://www.accesstradingmgmt.com/ETFs.html
Tuesday, October 14, 2008
Stock Market Morning Rally Fades
Stocks on Wall Street descended from their impressive early gains Tuesday to trade in and out of the red after the Treasury Department outlined a plan to invest some $250 billion in U.S. banks, with about $125 billion reportedly earmarked for the nine largest.
The Dow Jones Industrial Average, up more than 400 points earlier, was by Mid-day up just 34 points at 9421, and the S&P 500 was up 4 points to 1007. The Nasdaq was giving back 29 points to 1815.
On Monday, stocks snapped back from their eight-session October losing streak with massive gains. The Dow registered its largest-ever one-day point gain, rising 936 points, or 11%. The S&P 500 and the Nasdaq each jumped nearly 12%. The large gains came as central banks around the world collaborated on plans to inject capital into the global financial system.
Ahead of the new session, Treasury Secretary Henry Paulson said his agency would dedicate $250 billion of the $700 billion bailout package to buying equity positions in U.S. banks.
The government would buy preferred shares in Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan Chase (JPM), Bank of America (BAC), Merrill Lynch (MER) , Citigroup (C), Wells Fargo (WFC), Bank of New York Mellon (BK) and State Street (SST), The Wall Street Journal reported. by Mike Taylor @ the street.com
Saturday, October 11, 2008
"Run on the Banks" ?
Every day new headlines, It'll get worse before it gets better, seems to be the consensus. Historic proportions. Comparisons to the Great Depression.
What is a "Run on the Banks"? How would YOU know if it started or is going on?
If you pull extra cash out of your bank accounts ... is that a "Run on the Bank"?
If you pull ALL your money out ...is that a run on a bank?
Does the amount withdrawn matter? eg. 50% of your money but more than 25,000
or 100% but it's less than 10,000.
What if you wait until your neighbor withdraws first and then you withdraw some yourself is that a Run on the Banks?
The wealthy diversify and protect themselves many different ways. They use different banks - domestic (FDIC insured) and international (currency risk hedge). They use different asset classes.... Gold, Silver, Art, Diamonds etc. Many have multiple revenue streams or relatively liquid assets and can weather out a storm lasting
3-5 YEARS. Can you?
http://www.accesstradingmgmt.com/eBooks-Mags.html
What is a "Run on the Banks"? How would YOU know if it started or is going on?
If you pull extra cash out of your bank accounts ... is that a "Run on the Bank"?
If you pull ALL your money out ...is that a run on a bank?
Does the amount withdrawn matter? eg. 50% of your money but more than 25,000
or 100% but it's less than 10,000.
What if you wait until your neighbor withdraws first and then you withdraw some yourself is that a Run on the Banks?
The wealthy diversify and protect themselves many different ways. They use different banks - domestic (FDIC insured) and international (currency risk hedge). They use different asset classes.... Gold, Silver, Art, Diamonds etc. Many have multiple revenue streams or relatively liquid assets and can weather out a storm lasting
3-5 YEARS. Can you?
http://www.accesstradingmgmt.com/eBooks-Mags.html
Friday, October 10, 2008
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