Technical Charts – Secrets of the Pros

Technical charts are among the best tools used by professional traders to make a good profit out of their investments. These charts help the trader recognize some patterns and trends in the prices so they can make wise predictions based on technical analysis. It is not just a beginner’s way of getting a feel for the market; even professional or experienced traders refer to their charts before making a major trading decision.

What are these charts like?

A technical chart is basically a graphical representation of how a security or commodity is doing in the market for a certain period of time. A trader may refer to existing charts that are based on recent trading history of the currency of interest. Fortunately, the Internet offers some of these technical charts. If the trader keeps close watch of the market, he or she can plot the points himself or herself. Of course, the trader can make use of a special software that can generate the graphs on the computer. The trader only needs to supply the data needed and pick what type of technical chart he or she prefers.

What can technical price charts do? Continue reading “Technical Charts – Secrets of the Pros”

Three Ways to Invest in Gold and Silver

Making the decision to start investing in precious metals is a smart one, but it is only the first step. The next decision you will need to make is how to purchase your gold and silver. You have more than one option, each with its own advantages and disadvantages. In this article I’ll cover the three basic ways you can start adding gold and silver to your investment portfolio.

Mining Stocks. The first way is the simplest and the most common. This is how your investment advisor would probably advise you to invest in gold and silver, by buying the stock of companies that explore and mine precious metals. When most people think of investing they think of buying stocks, bonds and mutual funds through either their 401K or Individual Retirement Accounts (IRA’s), which makes this option seem like an easy choice. There are several gold and silver mining companies whose stocks are traded on one of the stock exchanges. There are also mutual funds that specialize in various segments of the mining industry – gold, silver, platinum and even the more exotic metals. Buying gold by investing in mining stocks is an indirect way of diversifying into the precious metal field and it has the advantage of being easy and familiar – buying one stock is just like buying any other.

As the demand for hard assets increases this can be a very profitable way to diversify your investment portfolio and take advantage of the relative strengths of the precious metals market. The chief disadvantage is that individual mining stocks often move with the general stock market which might not correspond with the price of the metal. The situation might arise where gold and silver are rising in price while the mining stocks are going down. Continue reading “Three Ways to Invest in Gold and Silver”

A Beginners Guide to the Gold Market

Throughout the human history, gold was considered to be one of the most reliable and valuable currency. It clearly established its domination over other currencies irrespective of the cultures and empires that prevailed. Gold was often referred to as an international currency and it still remains that way even today. This wide popularity has turned the gold market into a very lucrative investment sector for people across the world. They have made direct and indirect investments into this sector. This has also caused the entry of a large number of online websites and established companies into the gold market.

A general fact to note here is that the gold price is not determined by a single nation or community. Therefore, gold was able to put up a consistent performance throughout these years. Consistency is one factor that has always been a trade mark of gold currency. So, many international traders use gold as their currency. All these unique advantages that gold possess has made people to make decisions in favor of gold investment. Since, this is a highly complicated market one would require the assistance of experts.

Even though, investment in gold is relatively safe, it is not free from all potential dangers and risks. One should be well prepared and informed before setting out to invest in this market. There are various forums and discussion boards on the internet where one can obtain a lot of vital information on the trends and throbs of the gold market. People who have prior experience with other investment markets would soon discover that the gold market is entirely different from the others. Continue reading “A Beginners Guide to the Gold Market”

The Limit and Stop-Loss Orders – Making Good Use of Market Orders

Are you planning to invest your money in trade? You might be considering futures trading as one of the options for your business venture. However, before fully participating into the futures trading system, it is important to read and search through information that can be useful once you start your trade. Specifically, in the futures market, two major concepts about orders have to be understood by traders. These two concepts include limit and stop-loss orders.

How Does Limit and Stop-Loss Orders Work?

Stop-loss orders are used at a certain price and if the market price amounts to the order price, the order will be considered as a limit order. Hence, stop-loss orders are intended to limit or regulate the amount that a specific trade can lose, which is usually done by making a trade exit if the target price is reached. For instance, an investor may enter a long trade of $4,000 and would place a stop-loss order on $3,950. From this price range, the trader will make a risk in speculating the commodity in fifty points less. If the price will be less that $4,000, the trader will exit in the trade and limits the loss. Stop-loss orders are generally used in futures trading to regulate the loss and manage risks if the trader is in doubt of his price speculation. Continue reading “The Limit and Stop-Loss Orders – Making Good Use of Market Orders”

Investing in Gold For Beginners

You want to diversify where your savings are deposited? How much should you invest in gold? Should you buy this and take delivery?

Here I offer 5 tips for the new Investor in this precious metal.

1. How much should I invest?

This is a personal decision, but most commentators would recommend anything from 5 – 25% of your wealth should be in gold. It depends on how ‘bullish’ you are. This metal is an insurance for the bad times and it will never go to zero in value. Many other investments have that possibility.

2. How much bullion should be in my possession and how much in a vault?

It is sensible to have some physical bullion in your possession. The ratio is yours to decide. Small bars and coins are the best option. You can buy small tradable pieces (or coins). Always buy pure 9999 coins.

For bullion storage try some of the better known gold and silver bullion companies. Make sure the company matches your investment with the actual physical gold.

3. Where do I store my physical bullion?

Most people buy a safe and install it in a secure place in their home. Others put it into Bank Deposit boxes. Or you can split between the two. With some companies you can opt to store your pieces in a secure vault in Switzerland. Continue reading “Investing in Gold For Beginners”

Easy Gold Bullion Investing

Right now you’re probably thinking that gold bullion investing is something best left to the pros. Yes, the majority of traders making noise are professional investors. But there are some easy ways to get into the bullion market, and gold could be a good investment for you. Of all things to invest in, gold is probably one of the most liquid investments. And much unlike many of the other commodities, it is literally traded 24 hours a day everywhere in the world. This means you can buy and sell gold in about any country.

Mom always said to not put all your eggs in one basket, and this is why gold should form the foundation in your overall investment portfolio. If you have only paper in your portfolio, know that gold tends to move in the opposite direction of paper investments. It really stands out as a diversifier. With your stocks, bonds and cash, gold can help offset fluctuations in the market. There are a lot of financial advisers that recommend having 5 to 10 percent of gold in their portfolio.

A real good way to get into the gold bullion market is by investing in the American Eagle. This coin is the only bullion coin whose weight, content, and purity are backed by the United States government. Think of the confidence you can have buying them. American Eagle gold coins require no assaying and they can be converted to cash at any moment. Simple to keep track of, American Eagles are tied to the spot gold price, plus a small premium to cover mintage and distribution. Continue reading “Easy Gold Bullion Investing”

FOREX Day Trading – Do it and Lose Your Money Quickly!

Day trading is a mugs game – in FOREX currency markets, traders who make day trades instead of following the long-term trends, are making a serious mistake – risk/reward is terrible by comparison.

The Internet is full of brokers and vendors encouraging traders to day trade – and offering “sure fire” day trading systems – which is no surprise, as they mostly have a vested interest – they are making more commission!

Don’t get sucked in by the hype surrounding currency day trading.

You make the big money from the big trends – it’s the big trends that yield the big profits.

There are several day trading FOREX myths, and here are the most common ones: Continue reading “FOREX Day Trading – Do it and Lose Your Money Quickly!”

Day Trading Success- The Key Is Survival

Most new traders tend to focus just about all their time and energy on finding nearly perfect “setups”, but trade setups, even very good ones, are *not* the key to successful trading. It’s the *way* you trade your setups that keeps your losses smaller than your gains. And this is the single most essential key to trading success. To me, the process of limiting losses is more than just money management…it is survival.

I can’t give you a list of mechanical survival rules that will take the place of experience and make you a successful trader overnight, but if you stick to the following principles in your trading, you’ll be on track. You’ll be doing just about the opposite of the crowd, and you’ll eventually learn to limit your losses. Limiting your losses is the only way I know to make money in this business.

The following guidelines will sound radical, but they have guided me in making my living from trading for many years. Continue reading “Day Trading Success- The Key Is Survival”

5 Day Trading Tips for Success

1. How to Treat Gap Openings

A gap up or gap down open is an emotional move, and it often will reverse course and turn in to “trap open”. Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost.

A gap into a good support /resistance zone is almost always a good “fade” – with stops no more than 1 point on other side of the support /resistance zone.

(A “fade” is simply entering a position opposite of the direction of the gap. If the market gapped down, a “fade” would be entering
a long position (buying) in to the selloff.) Continue reading “5 Day Trading Tips for Success”

The Difference Between Investing and Trading

Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk one is prepared to take, and the commitment one can make to monitor the investments dictate the strategy of whether to invest or trade.

Investing

Investing is holding an asset for a longer term, expecting it to increase in value. The most common example is investing in equity mutual funds through a retirement plan. Many of these funds are held for years and are expected to show a substantial
appreciation over the long term.

You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is referred to as the “buy and hold” strategy. Continue reading “The Difference Between Investing and Trading”