Leave The Stock Chart Behind - Top Secret Trading Algorithm Revealed

By Lance Jepsen

I don't just use stock charts for my analysis. I'm going to spill those proverbial beans and show you how I find the incredible stocks for a very popular stock blog.

This is not about using technical analysis to read a stock chart. It is something much more effective.

I'm part of an exclusive stock club that gave me this algorithm. Make no mistake, this algorithm is very powerful and can produce annual returns in excess of 1,000%!

This revolutionary algorithm makes your computer think better than a human brain. Older software used statistics and set models for processing, but this algorithm is literally like having 100 stock analysts and day traders sitting inside your computer working for you!

I have used this to make a lot of money and now I'm going to tell you exactly what the algorithm is.

So you are probably wondering why I'm giving this away free. Well, I'm hoping you will make a lot of money from this formula and become a subscriber to my blog. That's fair.

One component of this formula is to establish the direction of the trend. You need the 10 day MA, the 20 day MA, and the 50 day MA. The formula for this section is: IF 10 day MA greater than 20 day MA greater than 50 day MA THEN NEXT STEP. This is just a computer way of saying that the 10 day MA needs to be above the 20 day MA which needs to be above the 50 day MA. If it is, move on to the next step, if not, throw away that stock and start over.

The next component in this formula is to determine if on the previous day, in the last hour of trading, the stock closed above the 5 hour MA. If it has, move on to the next component in this killer formula. If not, reject the stock and start all over again until you find a stock that does.

In this step we must look at the stock's 3 day high. If it is at a 3 day high, you can keep reading the next step below. If not, you need to ditch the stock and start over again with another stock.

The next component in this formula is if the last price of the stock is above the 20 day MA. If it is, move on, if not, reject and start over.

The next component in this formula is if the stock has hit a 3 week high in the last week (the previous full week of trading). If not, reject the stock and start over.

The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading). - 23305

About the Author:

Before you waste the time doing this by hand, there is an automatic stock chart screener that will scan over 25,000 stocks in 5 seconds. For more information go to Lance Jepsen's blog at stock chart

Trading The Forex

By Jo Nash

FOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.

What makes the FOREX market different from the stock market? A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.

What really makes up the FOREX markets? The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.

You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!

The FOREX trading market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number. - 23305

About the Author:

Learn how you can guarantee your profits from forex trading with Forex Trading Software or by using Accurate Forex Signals

Trading The Forex

By Jo Nash

FOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.

What makes the FOREX market different from the stock market? A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.

What really makes up the FOREX markets? The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.

You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!

The FOREX trading market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number. - 23305

About the Author:

Learn how you can guarantee your profits from forex trading with Forex Trading Software or by using Accurate Forex Signals

Dollar Guru (Part II)

By Ahmad Hassam

Knowing currency correlations between the major pairs can help you a lot in your trading. Suppose you have the data about the currency correlations of the major currency pairs. The correlation between GBP/USD and EUR/USD is 0.68. This correlation coefficient is positive and it means both the pairs move in the same direction 68% of the time.

USD/CHF and EUR/USD have a correlation coefficient of -0.975 and is pretty close to (-1). It means both USD/CHF and EUR/USD pairs move in the opposite direction almost 97.5% of the time. It means if USD/CHF moves up, the pair EUR/USD will move down!

You have this information. It tells you how much these pairs move in the same or opposite directions. Suppose you trade both the pairs USD/CHF and EUR/USD by going long at the same time. What you will be doing is in fact canceling both the positions.

If you win on USD/CHF pair, you will lose on EUR/USD pair. Due to the negative correlation between the two pairs, the two trades would effectively cancel each other. A savvy investor would go long on USD/CHF. At the same time he/she will go short on EUR/USD. So he/she will be shorting USD in both the trades and diversifying the USD bearish investment.

You can make trade entry and exit decisions based on currency correlations. Suppose GBP/USD starts showing volatility and approaches a resistance level. You anticipate going long on a breakout.

However, you notice on the charts that the other three major currency pairs are not showing volatility and moving as much as the GBP/USD. EUR/USD is not showing volatility and moving up on the chart. USD/CHF is not showing much volatility and moving down on the chart. USD/JPY is also not showing much volatility and not moving down on the chart. This means that the volatility in GBP/USD is solely GBP driven. The move is maybe related to some news in the British economy about Bank of England raising or lowering interest rates or some big companies merging.

Now you know that the move in GBP/USD pair is Pound driven and not US Dollar driven. You can take advantage of this information by ignoring the GBP driven move and waiting for a later opportunity that involves simultaneous correlated moves of all the major pairs.

Lets take another example. Suppose you have taken a short position on EUR/USD pair. You want to be sure whether the pair will proceed down towards your profit target. You also want to know can it go against you and cause you to exit the trade with a small loss.

Your EUR/USD is heading towards M1 level after having broken the S1 support pivot level. You should take a look at the pair EUR/GBP. You find that it has paused at its S1 support pivot level. It is showing signs of reversing to the upside.

In this type of a situation, knowledge of currency correlations can tell you if EUR/GBP breaks through the S1 level, you are poised for a profitable trade. However, if it reverses and heads back to the upside, you should watch the indicators and exit before taking a big loss. As you mature in forex trading, you might consider trading a basket of all the major currencies. - 23305

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know These Forex Broker Games. Learn Forex Trading!

A Short Forex Training on Risk Management

By Bart Icles

Any form of trading poses different kinds of risks. In the foreign exchange market, this stands quite true. There have already been lots of investors who have lost large sums of money in the hopes of generating profits in the forex market. Online brokers always try to sound optimistic but a smart trader understands that realistically, there is no easy way to make money in the currency market. A forex training on risk management can help you a lot in ensuring that you will not lose all your assets in just one trading go.

It helps to invest in your forex education before you start trading in the currency market and to continue doing so while you are already actively trading. A simple forex training or tutorial can already do so much in keeping you well informed on the different factors that can affect your trading position. A deficiency in market knowledge often marks the downfall of many investors and is one of the primary reasons why they lose large sums of their money. This also spells failure for new forex traders who do not take time to learn more about the different market forces that drive the currency rates.

Another important factor in managing risks in trading is having a forex broker. While you might learn from many forex tutorials that it is relatively easy to enter the forex market - all you need is a computer and an internet connection - it actually takes more than these two elements for you to start trading.

The tricky part comes in when you start looking for a forex dealer or forex broker to whom you will open an account with. It is important that you choose your forex broker well because forex brokers spell much of your trading success. This is also important in keeping you from taking unnecessary risks. To be safe, you must do some research about your forex broker and only deal with one who is regulated.

So what do these forex brokers or dealers really do? More than just helping you manage your account, they also do much in maintaining your risk profile. When participating in the forex trading market, investors must have risk profiles that are solid as rock. See to it that your forex broker has pre arranged agreements with you about your risk profile or the amount of invested capital you are willing to risk. - 23305

About the Author:

Forex and tricks are powerful when coupled with a desire to learn and a drive to become a great trader. Learning for forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.