Stock Market Trading Systems

Archive for December, 2009

In words that I will be able to understand, can anyone explain to me the correlation between the banks, the housing crisis, and the stock market. And how does the stock market affect the economy itself? I am just beginning to understand what the stock market is, so numbers and statistics are really not helpful.

Basically it comes down to this:

1. Banks loaned money or gave credit to so-called ‘high risk’ people who were less likely to pay their debts, hoping that they would run into difficulty and be forced to pay a higher interest rate on the loans and increase the profitability of the loan.

2. Instead of being able to pay when the interest rates increased, lots of these people were unable to continue to pay the higher interest payments, so they defaulted on their loans and were forced into bankruptcy.

3. The banks, who expected customers to keep paying the high interest, were faced with credit cards and loans that were losing money due to huge amounts of bankruptcy.

4. The banks had no money to loan to home buyers.

5. As businesses get into deeper credit trouble, they start laying people off in an attempt to cut costs. As they lose money, the stock market, which is basically a betting shop based on confidence in businesses, is filled with people selling their stock.

6. As the stock prices go down, the companies are perceived as being worth less. That means they will not be able to get loans as easily. In order to stop this, a company may lay off even more people in an effort to appear more profitable.

The result – people and businesses owe more interest than they can pay, businesses go under, the housing market collapses, banks go under, the stock market crashes, unemployment goes through the roof creating a vicious circle (i.e. even more people defaulting on credit and loans) that could have (and still could) result in a 1929-style crash.

http://img166.imageshack.us/my.php?image=stokcjx3.jpg Look at that
and look at the stocks i bought did i invest in good stocks or not will they go up in the next two months and make me some money or not

Oil is going to 100/barrel, buy USO. I also like HNSN, EXM and FXI for quick profits.

Good luck!

I need to learn the rules so I can invest wisely. Online hands on tutorial would be great! I’m hoping for a ‘dummy’ portfolio to test the learnings I’m making as I go, something that would give me gains and loses directly connected to the actual stock market.

Check out Investopedia.com. They have a lot of good investing tools & an investing simulator where you can invest $1oo,ooo in virtual money. You can buy stocks at their present value & your "portfolio" is updated every 20 minutes i believe.

If a buy a certain amount of shares in a stock and a sell when a profit is made then I make money? If a buy a certain amount of shares and the stock is negative do I owe money or can I leave the shares in the stock market? A bit confused?

Lets say you own 100 shares of XYZ stock and you paid $10 per share for a total of $1000 invested.

The next day the stock price is $11. Your next stock worth is now $1100. You made $100.

If the stock goes to $9, now your net stock worth of XYZ is $900. If you think the stock is good, you hold on to it, in expectation that the price will rise. You’re down $100 and this is reflected in the stock. Essentially, you’ve lost $100, but you do not owe that $100 to anyone.
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Because I’m 19 and just wondering whether or not if you have to be 21?

I’m pretty sure the minimum is 18 years old.

I’m 18 by the way and trade stocks under my own name through fidelity.

Forex and Stock Traders that have success. I know that You won’t tell me how to actually trade Your system or method, but i am just saying,….it would be a really good thing if You did. You don’t know how I feel trading for 4 years, everyday, trying out differnet methods. none of them work. I’m just saying it would be a really goo dthing if You told me. I am in such stress right now, and please, don’t tell me to take a break from Forex. Do You remember when You first started trading FOREX? It was really hard. And then, You found something, a secret of the Market trading. Well, I am using all differnet kinds of indicators, methods, systems, advices, and they don’t work. Please, I don’t want to quit with 4 years of wasted time in my life. Just send me an email….Dan7974@yahoo.com

Thank You.

p.s. again, I would be very happy if someone owuld help me.

4 years is a long time. Do you have any mentor ? Maybe you should ask around ? There are bascially 3 things in Forex you must remember. 1. Money Management. 2 Trade management 3 Trading Psychology. All 3 must work. 80% of the time traders especially novice spent 80% of their time twitching their system. Which is important. But you can get it right but nver see you Acct Equity grow. Becasue to see it grow. You need the other 2 legs, Trading psychology. And Money Management. If you have never heard of this before its time to take a "break" i know you hate to hear that word. But to jump higher you need to flex your knees and go down abit. So take a break, restrategise, do some reading, do a course, get a mentor. To break a habit takes 30 days. Its a battle out there. And its a mental battle. So behave as if you are in a battle. You are the general of your Forex Army, namely your equity. There are some resources here might help you so do take a look. And drop me a line if you need some more pointers. If i were you, start with Dr Alexander Elder’s Trading for a living and Come into my Living Room. And also get the work book. But please, take a break and restrategise. Dont "revenge" trade. There is a fine line between "gambling" and "Trading". Also another fine line between "Addiction" and "Working". Whatever it is i have been there. No insult intended.
http://www.geocities.com/lcming/Forexbooks
http://www.geocities.com/lcming/ForexForex
http://www.geocities.com/lcming/Forexsignals

I funded my Roth to the max. My job does not offer 401ks. What can I do next?

I don’t want to go into the Stock Market. Risk is my worst enemy. Where can I go for advice besides "Investing for Dummies" ?

I go to investment websites and all I read is Blah Blah Blah.

(I’m 25 years old, and a single mother, if it helps)

Investing is easy when you invest in America and you can do that with a S&P 500 or total market index fund. Just dollar cost average into the account. You should also consider a simple portfolio of 50% bonds and 50% stock. Both are available through indexes.

Indexing is simple, mimics that market, is low cost, is low taxed, and will solidify your financial future. You need the mindset that these are investments for the future. Don’t worry about the daily changes of 1 or 2 percent that television freaks out about. How often do you freak out when ketchup goes on sale for 2% off?

Read "The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)" by John C. Bogle

ok so i m a 11th grader and i would really like to understand about the stock market…stuffs like nifty and the arrow upwards and the arrow downwards and the bull and all that. i have to admit that i know absolutely nothing so i would like to know everything from the start. like a total freshmen. so can any1(if has the time and heart enough to) explain me everything or just give me some link to some site which can explain em everything i need to know!!!

this question made me laugh. first off visit your library and grab a few books.. anything wall street related. Equities are stocks. Futures. options. Currencies/ FOREX. take an economics class. watch the movie Wall St. Watch the movie Trading places. (futures markets)

mainly – start reading. get an internship. magazines – economist, forbes, trader monthly (discontinued). i work with commodities, so a bit different than the "stock market" but a market none the less.

have fun

?

I assume that you mean a game for school. With all of the volatility in the current market and the bearish signals we’re getting, I would go with an ultrashort index fund like SDS. That fund shorts the S&P 500.

http://finance.yahoo.com/q?s=SDS

I want to know which of the following advisory services is the best:
* Anacott Investments Limited
* Big Trends*
* Disciplined QQQ Trading
* Glinser.com
* Grandslam Options
* Income Spread Trader
* Income Trend
* Index Trading Systems
* International Stock Report
* Investfit
* Investors Observer*
* Kash Kings Systems
* NOS Uncovered Options
* The Optionist
* Option Partners
* The Option Principal
* OptionSmart*
* Option Alarm
* The Options Report
* OTS Options Signals
* Schaeffer’s Research*
* SRS Market Research Services
* Stock Market Cash Machine
* Wicked Profits
* WiseOptions
Swaminathan P, can you please provide some links to the "scam" sites you are talking about? Thanks.
Note: the reason I use this list is because this is who I have setup for auto-trading with my broker OptionsXpress.

As far as my goals, they are capital growth with high risk tolerance. This would be a small percentage of my trading captial. However with most of these services you use iron condors and spreads, in which case $5000 per trade seems like the magic number to be worth the trading fees.

Without comment on the quality of any on your list. It would depend on your level of trading, and what your goals are… That being said most if not all of the information in ANY market should always be taken with a grain of salt….

I will end with one bit of advice I gave some students at a speech I gave several years ago on the topic…

Trading is not easy, I spend 50+ hours a week if not more. Trust me if there was a way to do this for 30 min a day I would not sell it to you on an infomercial, I would be phoning my orders in from my house in the mountains.