Markets And Holidays

By Ahmad Hassam

The party starts in December and continues in the early part of January with some hangover effect. October is the month in which the most famous crashes historically took place. So what is the January Effect?

New Year is the end of a year and the beginning of a new year. This is what makes the January Effect so special. There is usually a rally in the stocks in the first few days of January. There are various reasons behind the rally. Most of the people are trying to pay their taxes at that time of the year. The companies are trying to show a good performance at the end of the year by cleaning their balance sheets. The January Effect can be quite a rally but much depends on the strength of the economy, how good December was and is there any catalyst to move the markets. There is usually a significant rally in the early part of January that actually sets the tone for the rest of the month and sometimes for the rest of the year. New Year is party time. People are in exuberant mood. Everyone wants to forget the past year and start the coming year with high hopes and good expectations. This is what is so special about the January Effect. So what is this January Effect? January Effect actually starts in the mid December and tends to favor small stocks. The most profitable period as measured statistically has been found to start from December 31st and end around February 28th with an average rate of return of 6.6% on smaller stocks.

Now January Effect may happen or may not happen but the turn of the month that is the last day of the month and first five days of the next month form a very good seasonal pattern. Now, you must know this fact that the January Effect is not guaranteed every year. The best example is the year 2007 when the market became bearish and didnt start to look to bottom out until March 2008.

Turn of the month is a very good seasonal pattern that actually holds up more often than not. So if you buy stocks at the last day of the month and hold them for the first five days for the next month, chances are you are going to make some profit. This can be a good swing trading strategy. At the end of the fifth day you move your money back into the money market funds.

Why the end of each month is good for trading? This system works because the pension funds tend to put new money to work during the holidays and the overall tendency of the market to rise improves. You can do the same on the holidays. Move your money in on the day before the holiday and sell it on the day after the holiday.

Holidays are good for your mood. Everyone is happy to escape the drudgery of their daily routines. People want no worries in the holidays. People start to feel happy when the holidays approach and buy stocks before they run off to celebrate Christmas, the fourth of July, the Labor Day and so on. After the party the reality sets in the stocks are usually sold off. The holidays and those times when people traditionally take vacations often lead to higher prices. Fewer traders lead to lower trading volume which in turn tends to exaggerate price moves.

Thats because these days fall within the most bullish time period of the year, winter! The three days before the New Year Eve and the first three days trading days after the New Year are your best holiday bet for making money. - 23305

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try This 1500 Pips A Day Forex Signal Service! Know These Candlestick Patterns!

These Usually Come Free with Online Stock Brokers

By Rex Casadus

Most people know how to buy or sell a stock, but many are too lazy to bother looking into the different features that each brokerage firm offers. Here are a few ways that an online broker tries to help its customers.

It may be named retirement services or investing tools, but it's nice to see a broker that gives you the tools to help you diversify, manage your risk and see your account in a whole different way.

You may not see stock broker and credit cards mixing but the best cash back credit cards are actually offered by stock brokers. Of course, they are offering it to get your business but I will take any advantages I can get.

You might be able to do bill pay with your balance. The great thing about it is that even margin accounts are eligible, so you can always temporary borrow money at a relatively low rate to pay your bills.

The higher end brokers are adding security by offering a security token. The physical token updates its pin to make sure that you actually own the token when you are logging in.

ATM cards from brokers are great because they don't charge you any fees for withdrawal no matter where you take money out. In fact, they will give you money to compensate for the fact that other ATMs will charge you.

Some online stock brokers come with physical branches, and may have employees there that can offer investment advices. They also provide face to face technical support should you have any questions with the account.

Dividend reinvestment plans are very common but actually not every broker has this option available for free. Those that don't usually charge you to buy the stocks, which almost eliminates any advantages it has.

If there is a way to integrate your savings account into the brokerage firm, then it's a good idea due to the high yield that you could be earning with your money. It's like a manual sweep account but only that you are earning high interests. - 23305

About the Author:

I love my account at Scottrade. It's simple and there are no hidden fees so the broker is highly recommended.

Learning Forex Like It's Easy

By Scott McDonald

Starting out learning forex it was soon realized that this learning can be a long process. Spending endless hours and months of work trying to perfect method after method It was taking longer than I wanted. I needed something that would push me ahead and give me an edge over the average trader. I soon figured out what the big traders used to get ahead of everyone faster than ever. This one method has made me a tactical trading machine.

If you are learning forex from the start, be sure you don't easily give up. This industry is a bit difficult for a reason. If you are persistent you will achieve, if it was easy everyone would be doing it. Think of success as long term, this is more realistic. Once you have a routine of time that you put into trading, it will only be a matter of time before you succeed. This one method that I added to my trading tactics has delivered extraordinary results and has doubled my trading account on a monthly basis!

Most learning forex give up before they get anywhere. The key is to be persistent in your track to success. Success does not happen over night, but over time. Some people have a mindset that people with money just had it handed to them, most of the time this is not the case and they worked hard to get where they are. Keeping a mindset in the long term success and incorporating this one method has been working since the day it was in affect.

Learning forex from the start can be hard at first, especially with no prior knowledge. Getting your self familiar with forex lingo and terms is a good place to start, but one is going to need something to push them further than the rest. Having an edge over other traders is what this industry is all about. If you have a few tactics that work for you and put you ahead of the rest, you are laughing. Once I incorporated this one tactic into my trading, it was a matter of time before I was the leader of my trading group of friends.

After learning forex basics it was time to go into more advanced forex principles. Seeking out more of an advanced method is what a successful person needs. Learning the scalping method became a favorite and I decided to stick to it. Shortly after I added this one dominating method to it that the big traders use and did it ever turn results! - 23305

About the Author:

If your trades aren't raking the money you need, you need to check out how the "Big Wigs" make Learning Forex look easy. If you have read up to this point and you want to make real profits for your self, stop letting the "Big Wigs" feed you BS, take action and find out their untold secrets to Learning Forex today!

Don't Trade Without A Stop Loss

By Ahmad Hassam

The market is always ebbing and flowing. Its like the waves in an ocean. The market goes in one direction. It has a correction. Then it continues back in its trend direction. It has another correction and so on. Even in sideways or choppy market, there are ups and down in the price action.

You should learn how to ride these waves. You need to understand how the price action in a market takes place. Price action in the market is like the continuous ebb and flow of the tides. You must learn to ebb and flow with the tides in the market. Setting stops on the key levels of price support are crucial. These key support levels represent significant market realities occurring with enough trade volume to warrant a stop loss level.

How do you reduce the possibility of getting stopped out of a perfectly good trend by the normal ebb and flow of the market? The market will continuously fluctuate. The answer lies in the current price, volume and volatility of the market.

What should be the role of the stops in your trading? The stops need to protect you from risk but they also need to allow the market freedom to fluctuate. Meaning stops should reduce your risk but not your profits. You will need to ensure that your trading system and approach take these factors into consideration so as to allow your stops to ebb and flow with the markets.

To choose a random exit that does not include the crucial information the market is giving you at any time is ignoring what the market is telling you. If you know how to listen to the market, the market will tell you where to set your stop loss.

First learn to understand the market dynamics. Then you need to learn how to identify the correct stop loss based on the market dynamics. Then learn to adjust your trade size to manage your dollar loss. Never ever use an arbitrary dollar amount like, I will get out of the trade when it goes against me $200.

How many risks there can be when you enter a market? A stop loss protects you from different types of risks. The value of having the stop loss in place prior to entering the market is that you can unemotionally determine the best exits possible for the different types of risk like the trade risk, the market risk, the liquidity risk, the margin risk, overnight risk and the volatility risk.

The position of your initial stop should be based on the rule of 2% risk on your trading account. For some advanced traders it is sometimes beneficial to risk more than 2% of their trading account on a single trade. However, the amount these traders risk must be carefully calculated depending on their proven historical performance statistics.

Placing stop loss correctly is an important part of the money and risk management program. One of the greatest challenges for any trader is to finally come to the point where he/she firmly believes that a sound money and risk management program is vital. Remember the saying that there should be some method to your madness. Learn the yin and yang of trading. - 23305

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try This 1500 Pips A Day Forex Signal Service from heaven! Learn These Candlestick Patterns!

Fap Turbo - The Best Forex Website There Is

By Tom Poorker

Learning about Forex trading is easy on the Internet. A Google search will turn up lots of sites with great information. A lot of the sites guarantee that their system will make money for you. It can be profitable to trade on the Forex market if you have the right tools.

It will be amazing how much you will learn in just a span of minutes. A lot of forex gurus are coming up with their websites because they want to share some of their experiences in trading and sell products along the way.

One website I stumbled across in my research caught my interest and showed me how to save a lot of work in Forex. The website is Fapturbo.com. The site sells a Forex robot which trades on Forex for you.

It may be your first time hearing about this but you can actually become a millionaire by doing nothing in the field of forex trading. Of course, you would just have to buy an effective forex robot. Then, your trading will run on autopilot and money will just be deposited straight to your account.

Don't believe me. That's OK, I might not believe me either. You should give this site a visit though. The Forex robot is a great tool that saves time and brain power on Forex trading.

I haven't been using the robot long but I'm already turning a profit on my Forex trades. Computer software isn't my field of expertise, but the explanations offered on the site made it much clearer for me. I also knew I had nothing to lose, because the site offers a money back guarantee.

Not all Forex sites are clear and easy to understand. I don't know about you, but as soon as I start to get confused, I navigate away to another site. I didn't have that problem with Fapturbo. All the information was presented clearly in a way anyone could understand. Their guarantee that you will be able to turn a profit is in big bold letters.

In fact, you would not even have to worry about losing anything because it is clearly stated in the website that they provide a money back guarantee that is good for two months. That policy can be seen in the website in bold letters so if they fail to bring back your money if the product fails to work, then that will be committing serious fraud.

If you will search about Fap Turbo, you would not find a single case of fraud filed against the developers practically because nothing was ever filed against them. The website is a hundred percent legit and honest at that. While most forex websites would claim that their product guarantees profit 100% of the time, Fap Turbo humbly claims that it could give anyone profit only 95.9% of the time.

I have a couple of break even trades and once I even lost a few dollars, but in the main, the robot has been making me a profit. Nothing works 100% of the time.

If you want to trade in the Forex market, I recommend that you check out Fapturbo.com. You really have nothing to lose. - 23305

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Find out what real users have to say about forex robots and fab turbo reviews.