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Tuesday, February 26, 2008

Computer Software Identifies Stocks About to Rise by Marlie Parsons

In days gone by, investing money in the stock market and reaping a reward was a skill that some experts spent a lifetime honing. More recently, with the growth in the popularity of smaller investments such as penny stocks, small cap and even microcap stocks, day trading has become a potentially profitable hobby for almost anyone from high school students to grandmothers. As computer technology moves toward the potential of artificial intelligence, and as programmers turn their attention toward equity investments, it is becoming less necessary actually to know much of anything about the stock market in order to purchase stocks, sell them, and realize a return on one's investment.

One very dramatic case in point of the success in programming computers to analyze and select stocks that will, hopefully, increase in value is the so-called stock picking robot created by two computer programmers from Seattle, Washington. The young men were first contracted by one of the world's largest global investment banks to develop a computer model for trading stocks. This software is now responsible each year for more than four billion dollars in profits from stock market trades.

Using their computer skills, these gentlemen next focus their attention on the opposite pole of Wall Street. Instead of managing multi-billion dollar portfolios, they turned their attention towards managing as small a portfolio as a few hundred dollars, and running on a basic personal home computer. It was a wise decision, because there is a potential of much higher financial returns when one is trading pennystocks, highly volatile investments that can see a rise in value of as much as 400% in only a few minutes.

Looking at stocks being traded over the counter (OTC) and on Pink sheet stock exchanges, the program sought out companies whose trading patterns indicated that their value was about to rise up significantly. This tactic proved so successful that it now has a track record that is impressive even to hardened skeptics. It averages an increase of 105.28%, and this rise most often happens within three hours of the opening of the market.

The programmers' company now publishes a weekly newsletter that passes picks of hot stock tips from the computer to its subscribers. Of course, anyone who trades penny stocks on an ongoing basis knows that there is no such thing as a sure thing, and the newsletter publishers openly admit that their computer's choices will sometimes lead to losses instead of gains. Nevertheless, an average success rate of higher than 100% is a track record that cannot be sneezed at.

For a limited time, the penny stock newsletter publishers are offering a deal which looks too good to pass up. They say subscribers to their "Doubling Stocks" newsletter may take eight weeks to try it out for free. During that time period, the subscription may be canceled for a full refund, if the subscriber is not satisfied with the quality of the penny stock information it delivers.

About the Author

To see whether the eight-week risk-free Penny Stock Newsletter subscription offer is still available, interested parties may get full details at the Doubling Stocks website.

Wednesday, February 20, 2008

How To Make Money In Stocks by Mark Crisp

Interested in trading and investing in stocks? Well, the first step is to understand some stock trading basics. In this article we'll take a look at what stock market investing and trading involve, and how investors and traders make money from stocks.

A "stock" - more commonly known as a share in some parts of the world - means a portion of ownership or equity in a company. As such, a stockholder is essentially an owner of that company with specific rights and obligations. Companies list on the stock market - or more precisely, a specific stock exchange - to sell their equity to the public, and thereby raise capital they can use to grow their business. Once a company has listed on a particular stock exchange its shares can be traded on an ongoing basis by investors and traders alike.

The stock market represents the general supply and demand for companies' stock. Companies "list" - or make their stock available for people to buy and sell - on various stock exchanges located around the world. Historically, stock exchanges were physical locations where representatives of people wanting to buy or sell stock dealt with each other to facilitate the various stock transactions. These days trading is facilitated by computer systems.

Unless you have the requisite license, you can't directly buy and sell stocks yourself. You need to pay a broker to do so on your behalf. Historically, you might have called an individual broker to transact a trade for you; these days it's often just a matter of visiting an Internet based brokerage and filling in an order form.

To make money in stocks, you essentially need to buy a stock at one price, and sell it at a higher price. The increase in price is theoretically due to the increase in the value of the company, based on its financial performance.

"Fundamental" investors are those who do in fact take the view that, over time, stock prices reflect the value of a company. How do these investors assess value? Well, they study a range of fundamental information that will supposedly give them a glimpse into the future prospects of the company. This ranges from the company's own financial health, to the health of the industry in which it operates, to the strength of the economy at large. After performing such fundamental analysis, such an investor decides how to trade stocks they're interested in.

"Traders" tend to have much shorter time horizons. They buy and sell within weeks, days and - in the case of day traders - hours or minutes. In such time periods the prices of stocks are much more volatile and tend not to reflect corporate value so much as market psychology.

Traders seek to use the short term volatility of the stock market to their advantage. They use "technical analysis" - analyzing trends and patterns in stock prices - in order to spot opportunities to profit on upward, downward and even sideways price movements.

You will generally find that fundamentalists and technicians are both ardent believers in their particular perspective on the stock market. Both will say that that their philosophy makes for the best trading systems.

While books with titles such as "stock trading for dummies" seek to de-mystify the trading systems used by traders, there are equally a range of rather complex trading systems. Many full-time, professional traders won't reveal their trading systems, while others readily sell their systems in home-study courses and the like. Your best bet is probably to test some different systems and then choose the one that works the best.

I hope this overview has given you an idea of how to trade stocks. There is certainly more to grasp, but at least you now have a foundation in how the stock market works.

About the Author

Mark Crisp Free 7 Part momentum Stock Trading Course at: http://www.stressfreetrading.com

Free Websites to Help Analyze Stocks by July Wirawan

The internet is a very useful source of information to analyze stocks. Many websites make available a great deal of data about companies for free. The information is in fact too much and confusing enough to choose which source is a good one. For beginners, you can start with the following websites.

These are all free sites and should give you pretty much all the skeleton information to help you do better analysis on your stocks.

1. finance.google.com. What I like about google finance is:

* Snapshot of a company's historical stock price (on first page). You just drag the bar at the bottom of the chart to the left to see the historical chart. It's very easy and fast. You can also see right on the chart some corporate events, such as dividend payment or stock split.

* Discussion forum (on first page). This is not meant to confuse you as what they say may contradict each other, but rather to give you a feel of what people think about a particular company.

2. moneycentral.msn.com. What I like about this site is:

* Rating. You just need to type in the ticker symbol, and a rating will pop up. The rating is a scale between 0 - 10 with 10 being the best. The rating shows the likelihood of a stock to outperform or underperform the market in the next six months.

* Institutional ownership. The higher the number, the better as it shows the degree of interest by big institutional investors on a particular stock.

* Research wizard. It shows you the highlights of a company's fundamental, historical price performance versus its industry, valuation and stock price target in the next 12 months, and comparison with any other company in terms of financial health, price performance, etc.

* Earnings estimates and more importantly earnings trend. The trend shows you how the analysts' earnings estimates have changed in the last 90 days and thus tell you whether a company is getting in or out of favor.

* Financials. Here you can find the last five years and last five quarters of balance sheet, income statement, and cash flow numbers.

3. form4oracle.com. This website is very informative if you look for the history of insider trading on a particular company. All kinds of insider activities such as purchases, sales, option exercises, grants are presented chronologically.

4. briefing.com. A lot of information on this website is available to its subscribers for some fees. But some other information is provided for free. The free information mostly focuses on companies' past earnings announcements, and analysts' recommendations, which I still find very useful and quite complete compared to the other websites. For big and highly liquid companies, this information could go as far back as ten years.

5. stockcharts.com. Here you can retrieve a chart in various different forms (such as line, bar, candlestick), and various different time frames (such as year-to-date, one-month, one-year, three-years, or any time frame you specify). You can also add on some technical indicators such as moving average, MACD, RSI, ADX, and many other indicators.

About the Author

The author was an equity analyst, an investment banker, and a private banker for 15 years before becoming a full time trader, which she enjoys doing very much now. She has such a strong passion in stock trading and would like to share her experience and knowledge with others. Please check out her other articles at http://stock-trading-for-beginners.com.

Saturday, February 9, 2008

HOW TO FIND A STOCK BROKER - EXPOSED (Part 1) by John Nelson

INTRODUCTION

One of the biggest mistakes an investor/trader will make is letting the stock broker choose him instead of the investor choosing the right agent. Being selective when choosing an agent can prove fruitful, ensuring you receive exactly the service and advice you deserve. There are many to choose from. Asking questions and screening can lead to a successful relationship for the investor and smooth out the rough roads on his investing journey.

Understanding the broker and his many functions is just one step in understanding the big picture of investing. Understanding one's own goals and purposes is more important, at least from the trader's viewpoint. What do you want to achieve financially? What areas do you want your investments? Are you comfortable with aggressive investing? Conservative investing? Do you really need a broker? As many traders as you have these days, you also have the same amount of different trading strategies. Will the trader need a different middleman if his/her strategies change?

Mastering a subject comes with the gradient accumulation of knowledge and experience on that subject. To assist those seeking a stock representative I've written a brief summary of guidelines and helpful hints. There are many questions, inquiries and investigative searches one can use to expose an agent's intentions and purposes. These will help you weed out the undesirable individuals not having their client's best interests at heart. These are not strict rules or policies but guidelines to help the trader arrive at his destination, which is making money through wise investments.

Having the right representative on your side is a huge asset. Each individual will have to examine his or her own personal situation to determine if these apply to their own plan on investing. My main focus here is Stock Brokers but these questions and investigations can be applied to many agents; Business, Commodity, Forex, Insurance, Mortgage, Real Estate, etc.

WHAT IS A BROKER?

Basically he is someone who is licensed to buy and sell securities (financial instruments including stocks, bonds, notes, mortgages, etc.) and derivatives (financial instrument whose value is based on another security) on the stock market for traders and investors, which could be either individuals or corporations.

Being a "Stock Broker" does not mean he is an all-knowing deity come to alleviate your financial woes. He has become such because he has a desire for investing and the markets and has invested the time in himself after a short study to obtain a "Series 7" license. This by no means makes him an expert in investing. This comes with time, experience and the passion to learn and do more.

They are not at all hard to find. Good ones are more difficult to find and they will have at least the following characteristics;

Understands the stock market game. Executes orders with high efficiency. Knowledgeable in most trading strategies. Good communication skills with his clients. Charges reasonable commissions. Offers other assistance as needed. Holds his client's trust as his biggest asset.

These assets are well worth having on your side when confronted with battling the stock markets.

Part of their job is to discuss and advise the client on investments and strategies. They should be able to explain in detail any aspect of investments and trades. He also needs to accumulate as much data about the client's financial status and goals in order to assist the client in attaining these ambitions. Based on this data the agent then determines the best financial route to follow and advises the client to do so. When the client has the trades executed they are charged a commission (fee charged for carrying out a transaction). Commissions will vary depending upon the level of service provided. The higher the involvement of the agent, the higher the commission costs is the usual case, which is justifiable for good service.

Paying a higher commission is worth it if he is putting together trades that consistently turn into profits. On the other hand, paying a lower commission which produces mediocre or no profits makes no sense and leads to frustration for the investor and broker alike.

Of course saving on commissions is increasing your profit ratio, but don't sacrifice your investment profits by employing a middleman who does not have your best interests at hand. Your main interest as a trader is to get all your trades executed efficiently and at the best commission cost possible for that service.

No matter what kind you employ, full service, discount or online, they must be efficient and quick to complete your trade in order for you to make a profit. A client's portfolio performance has nothing to do with commissions, but the amount of trades executed does. How is he being paid? Is he pushing certain financial products on you to receive more commissions? A good broker always safeguards his client's interests. Always.

There are three basic groups or types of agents; full service, discount and online. These groups each have different levels of service, advice, commission costs and each are unique depending upon the needs of the investor. Which service could best benefit you? Do you really need a broker? Is research and market advice really worth the extra commission cost?

About the Author

John Nelson is a successful management administrator working within the customer service and finance industry for over 20 years. His interests also include photography and writing. John has written articles in regards to helping individuals overcome financial obstacles and finding workable solutions to those problems. Helping individuals locate solutions is a very rewarding venture. For more info: http://stockinvestingreview.blogspot.com/

Tuesday, February 5, 2008

Trading Opening Range Breakouts by Leroy Rushing

One of the most common and popular intraday trading concepts is the Opening Range Breakout (ORB) trade. Since its conception, ORB has evolved into a number of different varieties which are often reviewed in the Trading EveryDay Live Trading Room with entries, set ups, and stops.

Ever since the market decline of 2000-2003, the trading environment has become one of low volatility resulting in the propensity for short-term price movements to reverse. In turn, this environment has created chaos with Opening Range Breakout trading. Let's take a look at what this means.

Say that a trader looking at the opening prices from the stock market open interprets a decline at mid-morning as an OBR. If the trader is astute and experienced, three (3) things would come to mind before taking the trade.

1. The trader should look at the entire pre-opening market as the opening range because it is an indication of how U.S. stocks have responded to pre-opening economic reports and Asia and European market developments. The only way you can tell if the new buying and selling information is impacting traders' value assessments is if you break out of that range. 2. A true breakout move should impact all the major market averages and sectors (including, but not limited to, Dow Jones, Standard & Poor's, Russell 2000, etc.) the same way. 3. A valid breakout should also provide us with increased participation as there are lower or higher prices. When this happens, you can be fairly certain that that the "big boys" are "playing" in the move, which allows you to follow in their footsteps.

So did the trader take the trade? Not if the downside move turns out to be a failed test of the overnight lows. The moral of the story is to do what you have to do to figure out how to separate valid ORB trades from false breakouts. That means to continue educating yourself because just as you evolve as a trader, the trading world is evolving as well.

About the Author

About the Author:Leroy Rushing is an active, professional day trader; trading coach; and eBook author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide.

How Stock Investor Make More Money From Bear Markets? by Finley Zhang

As everybody already knows the stock market cannot always be soaring. There are times when the situation can look pretty bad. Well, there’s no need to panic or feel down just because of a bearish market. You should realize that you could actually capitalize on the situation. A bear market may, in fact, just be the kind of blessing you need. It is true that a bear market can be terrible for retirees who live off their investments. It is the reason why retirees are advised to keep enough of cash and bonds to ride through market downturns without being affected too much.

However not all of require our investments for the purpose of bill paying. You may be one of many people who are in the process of accumulating money while earning elsewhere in order to retire happy. You may also have some other objective like sending your kids to college or anything that will require such wealth accumulation. A bear market can work to the advantage of a person like this.

This is how it works …#34; when the market plummets, your money has the ability to buy more shares of stock. The same money invested in a healthier market would buy you fewer shares. This helps you build more equity than would be possible in other times. It is true that trading in bullish conditions is far easier and far more comfortable. It is also true that profits can also be more easily made. But there are ways in which you can trade successfully in a bearish market as well.

First of all you must not panic when the market plummets. Rather than looking for people to blame you need to spend time actively planning for the future and strategizing. This will help you avoid bearing huge losses. If you do bear losses because of a drop in prices you should get ready with the kind of action to bail yourself out and take advantage of the current situation. You can’t trade the way you are used to trading in more bullish conditions. For instance you can’t just buy some stock because of an initial outbreak and come back later in search of profits. Trends are important in bull markets. However due to market freezing in bearish conditions you’ll find that trends are much shorter and less stable. The market is likely to go in a sideway direction. Prices will fluctuate between ranges. Therefore you will see that range trading is the better option during a bearish market than trend trading. Your adaptation period needs to be really short and you must catch on quickly.

The margin for errors during a bear market is really small. You need to work with smaller profits at this time but you can trade in a higher volume and at a higher rate as your money can allow you to buy more equity. You can also bump up profit margins by using low cost online trading platforms or negotiating lower brokerages due to conditions. All this should help you do well.

About the Author

Finley Zhang is a stock investing expert and owner of Tips For Investment.Tips For Investment helps those who are new stock investor to achieve long term and stable income by using Finley's investing tips, methods and strategies. You can instantly Download the formula by visiting http://www.TipsForInvestment.com

'Marl' The Stock Trading Robot. by bigdogsurg

WARNING: Do Not Read This Unless You Are Already Rich!" ... Or Curious About The First Commercially Available Stock Trading "Robot" Which Earns $346.77 Per Week (Managing $1000 Capital). What I am about to share with you, is a very unusual story. Unusual... because it is about 2 "geeks", named Michael and Carl. Who developed the first commercially available stock picking "robot". Michael (the programmer) named the robot "Marl". Marl came about after Michael developed the famous "Global Alpha" computer stock trading model, while contracted to Goldman Sachs. A piece of software which most years is responsible for... $4,000,000,000+ Annual Trading Profit

http://bigdogsurg.affstocks.hop.clickbank.net/?tid=STOC0002

About the Author

WOW!!!! Tested and it's great!