Stock Market Insider: Do Not Play With Institutional Traders

By Steve Wyzeck

Unleashed on the individual trader for the first time...if you keep getting sniped by false breakouts in the stock market and are losing money, this article could change your stock trading forever...

I am going to tell you a stock trading secret that is so powerful, it will save you thousands of dollars. I should know, that is how much it saved me.

Institutional traders use dirty tactics in the stock market that are so bad, they should be illegal.

After reading this article, these dirty tricks might make you angry.

You may even want to forget you ever read this...

Read this entire article...

And you will be happy you did.

Because you will learn an entirely new way of looking at the stock market and in particular false breakouts...

We need to look at what support and resistance lines are and they what false breakouts are.

Learning the how and why resistance lines and support lines form will help protect you against false breakouts.

When investors buy or sell, they form an emotional attachment to the trade. It is emotions that keep a market going higher or sent it into a downtrend.

When a stock takes a plunge, some of the crowd trading the stock will sell for a loss, some of the crowd will sell for a gain, and some of the crowd will hold on to their position.

What you see on a chart is the emotional commitment, or lack thereof, coming from the crowd that is trading that stock.

Emotions Are Why Support And Resistance Lines Form

If a trader is holding on to a stock and hoping that it is going to come back, and it finally does, she is probably going to sell that stock. Staying in that loser of a stock is just too painful as she laments her entry. This selling to relieve the pain will momentarily stop a rally. These painful memories are precisely why support lines and resistance lines form at certain price levels.

I am going to give you an example so you can better comprehend what I am talking about here. Say a $40 stock sells off and falls to $35. It then stays at $35 for several weeks. Traders get confident that $35 is "the bottom" the longer this level holds. A trader finally buys the stock at $35. Right after buying, the stock drops to $32. Seasoned traders would have set their stop loss right under the $35 level and so would have exited around $34. Amateur traders will stay in their position refusing to take a loss. They will hold this losing position until the stock finally comes back to $35 where they entered. They eagerly jump at the chance to "get out even". This "get out even" selling will temporarily stall a rally and cause a resistance level to form.

Support and Resistance Lines Are Caused By Regret

Traders whose stock screener has alerted them to a stock that has spiked up will feel regret because they missed the move. If the stock retraces, they will quickly buy the stock for a chance at a second move up. This regret then excitement causes buying which forms a support level.

Take your stock chart and draw resistance and support lines at recent tops and bottoms. You should anticipate the trend to slow down at these levels. Use these support lines and resistance lines to either buy (at support) or to take profits (at resistance).

False Breakouts Are Caused By Institutional Traders

A false breakout or false upside breakout is when the price breaks through resistance which causes buyers to come in, and then suddenly reverses and falls back down below the resistance breakout level.

A false downside breakout happens when a stock falls below support, attracting more bears just before a rally.

All stocks are fair game but especially any stock that has a high percentage of institutional ownership.

False breakouts provide institutional traders with most of their best trading opportunities which is why institutional traders most often are the ones who cause these patterns to form in charts.

Institutional traders have access to all limit orders. They know how many more buy orders are above a resistance level.

What institutional traders will do next is what is known in secret, behind closed door circles, as "running the stops". A false breakout occurs when the institutions organize a hunting expedition to run stops.

For example, when a stock is slightly below its resistance at $30, the buy limit orders come flowing in near $28.50. The institutions calculate the liquidity ratio which measures how much the stock will go up if all buy limit orders are executed at $28.50. They calculate that the stock will run to $31 if all the buy limit orders at $28.50 are executed. They short the stock at $30 to push it down to $28.50. At $28.50 they cover their short position and go long as the wave of buy orders are automatically executed pushing the stock up to $31. If greedy traders start piling in, the institutional trader will stay long the trade. As soon as the buy orders start drying up, they sell short and the price falls back below $30. That's when your chart shows a false upside breakout.

If you are knocked out of a trade because of a false breakout, do not be afraid to get back into the stock. Amateurs usually make a single run at a stock and stay out if they are stopped out. Professional traders will make several runs at a stock before nailing down the trade they want. - 23305

About the Author:

Written by Steve Wyzeck. To people who want to profitably trade but can not get started go to stock market

Small Business Startup Funding

By Jebb Bruce

You dream of having a small business but just dumb founded on how to get your startup funding. Well know that you are not alone in this, it is usually the startup funding that will break or make a business dream come true. There are some ideas on how to get a startup funding and I can share them with you.

Some businessmen are so engross with their dream of having a business that they do not pay close attention to academic aspect of their dreams. No matter how small or big your business is you will need a certain amount of startup funding to help you make it successful. So do come down from your dream cloud to the reality to having a successful business.

One truth about looking for a startup funding is that no institution will 100% provide for the capital investment. You will have to provide about 20-30% of the capital yourself. Knowing this will prepare you to have at least this much ready.

You have some of the startup funding the next step is getting the rest of the startup funding. Before marching to any institutions and asking for a loan. Be sure to have a well thought out plan. Invest enough time to gather a realistic and detailed plan of what you need and how to get it.

Any type of lending institutions will look into your plan. In fact this is what they will look into first and will also base their decision from this. It will not be the amount that you want to loan for your startup funding but your realistic and detailed documentation of what you need and how you plan to pay off your loan.

The next steps after you have a realistic, detailer and written business plan is to look for lending institutions to grant you a startup funding. There are different institutions available that will fit your business needs. You can search online, at your local library or by talking to some businessmen.

During your search of looking for a lending institution that will grant you a startup funding, you will find that you have a wide range to choose from. It will range from your local bank, credit card companies, government funding, private companies, venture capitalists and private individuals. So be sure that the institution that you pick will best fit your business needs.

It may seem a bit stressful to acquire a startup funding but you should not worry too much about this. You are prepared to meet their questions with your detailed and realistic business plan. - 23305

About the Author:

What you just learned about startup funding is just the beginning. To get the full story and all the details, check us out at startup funding

Practicing In The Forex Trading Market

By Jo Nash

So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.

To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.

You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.

The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets. - 23305

About the Author:

Learn How to make your forex trading easier and more profitable with Forex Automatic Trading Software, or by learning allthe strategies and tricks of forex trading from Forex Trading Courses

How To Make Money Online Trading Forex

By Adam Woods

One of the fastest ways to make money online and by far the most exciting are trading Forex or foreign exchange. Trading on the forex is not as complicated as one might think and many people around the world are taking this onboard as a full time income source from home.

Trading foreign currency has been done by banks and big financial corporations for many years. Since the internet began it has developed in such a way that it is now possible for individuals to trade forex at home over the internet at increments of as low as 0.50 a point.

You can always find people selling automated forex systems on the internet. These systems are often so complex that the people that created them dont know how to use them and 90% of the time they simply do not work. It is best to seek a program that teaches you on a one on one basis and has a proven track record for success.

The trading of the foreign exchange is done in currency pairs, one currency against the other and on the movement of the last two decimal places of that pair. In the case of the EUR/USD the Euro dollar against the US dollar this currency would be traded on the last two decimal places representing a tenth of a cent. So if the currency pair was to fluctuate .0050 that would represent " a pence. If you were trading at 1 a point this move would be a 50 move. It is not uncommon for currency pairs to move 200-300 points in a day.

With the right guidance it is possible for anybody to trade on the forex market from home. It is also one of the most exciting markets to trade with its high volatility. With trillions of dollars being traded everyday there is potential for individuals to take hundreds even thousands out every day. - 23305

About the Author:

Adam Woods has tradedForex for two years and first discovered the foreign exchange market when looking for ways to make money online. Adam was taught to trade by Colin Atkins and has since seen some massive profits. Colin is now tutoring small groups of ordinary people the same secrets that make him around 5K a week on a regular basis. Get in touch with Colin now for a better life and financial freedom.

Temporary Investor Visas

By Sam McDougall Turner

Relocating to the USA can be a very stressful and difficult business. There are however, a few ways to better your chances of successfully being granted a visa. One of the best ways of doing this, is to select an investor visa, of which there are two main kinds, permanent and temporary.

The temporary investor visa is called the E-2.

The E-2 visa is so popular because it can be renewed or extended as many times as you like so long as the conditions of your visa being granted in the first place are still being met, such as the investment that qualifies you for an investor visa. For this reason, the E-2 visa has become known as the temporary green card.

This visa is for foreign people who have made investments in a US business or businesses to move to the US in order to oversee and direct the businesses that they have invested in.

You may fit the criteria for this visa if you are the investor in a foreign business, or are a vital employee such as a manager or executive, and if you and the large shareholders in the business are nationals of countries that have a long standing Treaty of Trade, Friendship and Commerce with the United States of America.

If you are an executive or a member of corporate personnel, then you must be a national of the same country as the corporation to qualify. An investment in the USA must have either already been made or that the investment is in progress. So if you posses substantial financial assets, then you could be entitled to the E-2 visa.

In short, the E-2 visa is most suited to those who are looking to invest a considerable sum of money in order to purchase all or part of an existing company, or to set up a new company. As the investor is expected to take an active role in the direction and management of the business, the E-2 visa is not suitable for silent investors.

Because of the unique complexities of investing in a U.S. business, it is highly advisable to seek competent legal advice on the types of investment that may qualify for an E2. After receiving such advice, the next step is likely to be to contact a reputable business broker that has an awareness of the requisite criteria for making a qualifying E-2 investment. - 23305

About the Author:

Once you have chosen your preferred business, our law firm will be able to assist you in the legal process and complex and lengthy paperwork involved in applying for an E-2 investor visa. Go to www.visas4america.com for more information on investor visa.