Category: Volume Trading Stocks


Pros and Cons of Candlestick Charts

Filed Under: Volume Trading Stocks by Don Weststein — Comments Off
July 24, 2010

Investors may understand the simple philosophy behind market timing. However, with not much practice, it is very difficult to find the right time to make a move. How do you know that the price have gone low enough to snuff it up? How do you know when it has risen high enough and when it is most favourable to sell? Different investors use different methods to rake in the most profit; and using the candlestick chart is probably the oldest and most effective way amongst them. However, one should be warned to use candlestick charts with caution. They can give you particular information but these are, without a doubt, limited.

The candlestick chart can help you track stock prices and help you with your future decisions. It is a variation of a bar chart, which is very beneficial in monitoring increase and decline. Thin lines are attached to the body of the candlestick, which then shows the trend of prices over a period of time. One can learn about a day’s activity by playing close attention to the changes in the chart (e.g. color, length, size, etc.) In a candlestick chart, a black or red candle indicates that the stock closed on a price lower than the one that it opened on. White or green candlesticks, on the other hand, indicate that the stock closed higher than its opening price.

Compared to other types of chart, a candlestick chart will tell of net gains and net loses most easily.

The benefits of a candlestick chart goes beyond this, but it has certain weaknesses as well. You need to choose the proper tools that fit your particular needs. The body of the candlesticks only tell you the differences between the opening and the closing prices. You have to use another chart to monitor price changes throughout the day. Candlestick shadows can only tell the range of prices and not the exact ones.

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The Benefits of Rating Systems in Selecting the Finest Stock Brokers

Filed Under: Volume Trading Stocks by Don Weststein — Comments Off
July 24, 2010

People who are investing on their own surely have troubles in selecting a stock broker who is perfect for the job. Selecting the perfect broker may either make or break your business. Numerous companies provide people like you, many brokerage services, but their skills more likely vary when compared to one another. So, in order for you to safeguard your money without the trouble of wondering about the credibility of your broker, it is quite mandatory in this industry to double check the validity of the one you are considering in handling your affairs.

One of the most useful ways in obtaining information about these individuals is through the use of the rating system. Different brokers and brokerage firms have their own assessment in establishing such rating system. Despite minor inconsistencies of these ratings, it successfully assist individuals into deciding on choosing someone fit to cater your needs.

Rating systems are divided into categories that provide the reasons, the name of the firm and the best and worst company that should be chosen for the job. There is also a company that specializes into regulation of securities called the Financial Industry Regulatory Authority, Inc. or FINRA located in the USA. FINRA has a sustainable existence within the financial community and supports the regulation of interactions between financial entities and the general public. They also provide users with their own ratings as to the credibility of brokers available online. Through FINRA, you can confirm whether you are hesitant in accepting a service firm or if you just want to obtain useful information about the legitimacy of the person you want to hire.

Available ratings should be viewed based on what you and your broker’s investment strategy goal. The ratings help these employers in identifying which stock brokers are effective and efficient. It saves them the trouble of choosing bad performers than good ones. Just be sure that your rating system caters your personal preference to avoid broker mishaps.

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Traders Need Discipline

Filed Under: Volume Trading Stocks by Don Weststein — Comments Off
June 2, 2010

If you have trade trading and you notice that you aren’t really getting the results you wanted, you should probably think about if you are trading with enough discipline. Discipline is actually one of the most important abilities when it comes to trading.

There are already a lot of web sites writing about what you need to succeed as a trader, for example the Forex Trading Secrets. There you can read about some of the most important things to consider if you want to become a profitable trader.

Lack of discipline when trading will lead to losses, sometimes considerable losses. To be successful at trading you have to have a trading plan, and you have to stick to it. This is where the discipline comes in. If you have a plan, but don’t stick to it, it’s worthless. This is probably the most common error when trading.

Make sure that you have a solid and working trading plan. Consider what to do if you are wrong when trading. If you are starting to lose money. When should you leave your position? This is very important since only in this way, you are able to cut your losses early and go on to more profitable positions. If you don’t decide when to cut your losses before taking a position, the chances are that you will hold on to this position way to long.

When following your plan, remember that you have already thought about all problems that will and can arise. Therefore you have to really follow the plan. Don’t think that you know better than the plan. Sell when you have planned to sell. If you don’t you are really not doing disciplined trading and you will probably lose more money than you win.

If you want more information about trading, and especially about the forex trading secrets visit this site.

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Develop A Winning Trading System

Filed Under: Stocks, Volume Trading Stocks by Don Weststein — Comments Off
March 25, 2010

There are many different vehicles one can use to strive to make money with their investments.  The big question is on which ones to choose and to what point should you use them in your trading system.  You can invest strictly in stocks or you can branch out to options, commodities, other derivatives, real estate and many more types of investments.  You can not really put your resources in all of the options available so you need to evaluate which ones seem to work for you with the amount of knowledge and experience you have.  If you have never dealt in real estate, then maybe that is too risky for you.

It is possible to do some research and gain more knowledge and experience in a particular area that you become interested in.  You may even become an expert in that area if you put enough research and thought into it.  For example in the world of options, you hear about calls and puts.  You may stop there and think that is the extent of that world.  However, as you research you find that you have only begun with the tip of the iceberg.  You find that there are multiple strategies and combinations that you can put together to build a strong portfolio.  You find that there is in fact much you did not know and that depending on your trading system, you may be able to make money with option trading in any situation.

This would be true for any of the above mentioned investment vehicles.  As you dig into the field and learn more and more you will find that a whole new world opens up to you.  There are online games where the board is covered, but as you click on different positions, different parts of the game open up.  I think you will find this to be the case with these different investing strategies.  You only need to do some research and press on the different areas to open up whole new worlds.

So go to it, choose the fields you are interested in.  Do some research and try your ideas.  You will find yourself becoming more and more interested in it.  If you find it is not for you that is okay.  You can go on to another field.  You will eventually find those investment fields that are your gold mine.

One way to test your knowledge is on a paper online trading site.  You can test your knowledge with money that is not real.  In this manner, you are able to learn without the painful experience of losing your nest egg.  One online trading site is Wall Street Survivor which can be accessed via our site at www.mystocktradingtips.com.  I would encourage you to check it out.  Have fun.

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Goldman Sachs and High Frequency Trading

Filed Under: Volume Trading Stocks by Don Weststein — Comments Off
March 17, 2010

When it comes to high frequency algorithmic trading, one of the biggest players in the game is Goldman Sachs. In 1999, the firm acquired a small proprietary trading shop called Hull Trading, paying half a billion dollars for the privilege. Hull Trading had developed some pretty clever trading algorithms that Goldmans took over, modified, tweaked, tuned and enhanced to the point that they are now generating many millions of dollars in profits for the firm.

Goldmans place a lot of value on the computer programming code behind these systems and take very strong measures to protect it. Every employee has to sign a strict confidentiality agreement and each one of those employees can be sure that if they break confidentiality, Goldmans will come after them with the full force of the legal system.

So when a 40-year old computer programmer called Sergey Aleynikov left the firm last year and allegedly walked out of the door with the code for some of Goldman’s most lucrative proprietary trading algorithms, hoping to make use of them at his new employers Teza Technologies, it is not surprising that Goldmans were having none of it and made sure the hapless chap was duly arrested and prosecuted.

Aleynikov is accused of transferring the code for those algorithms to a server in Germany across the Internet. He didn’t help himself by leaving a trail of where he’d been, despite his attempts to cover his tracks by deleting files.

According to reports from the High Frequency Trading Review and other commentators, this wasn’t the first time that the Russian boffin had attempted to copy code. The case against him cites a number of occasions when he copied computer files from his employer and e-mailed them to a private e-mail address.

If found guilty, the ex-programmer could face up to 25 years behind bars.

The case against Mr Aleynikov continues….

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