Secrets of Technical Analysis

By Michael Swanson

Technical analysis was derived from observing financial markets for the past decade. This method being the oldest was discovered and developed by Homma Munehisa during the early eighteenth century and progressed to the candlestick method whereby in modern day is a charting tool for technical analysis.

A variety of charts "graphs" are used to prices over time, although they do not show absolute predictions about the future prices. Technical analysis is similar to forecasting the weather in that the future financial price is based on the past price movements.

Your stock charts will show you resistance and support levels. Relevant information will determine the market prices, so internals are taken above the external indicator. The fluctuation of prices tends to repeat them as investors use the same patterns collectively so technical analysis would rather focus on solid trends and conditions.

Although the statement of it being unpredictable; users still say it helps them to identify trade opportunities. The use of technical analysis is more commonly used n the foreign exchange market than in fundamental analysis.

The best way to understand what technical analysis is that it is associated with commodities as well as forex; and the participants are dominantly traders. To understand this fully what this is and is not you have to compare technical analysis with fundamental analysis.

The study of charts is primary as technical analysis uses other tools and methods to define prices. What is looked for is moving averages and lines of support, channels and hidden formations like balance days and flags. Indicators are also used extensively which are just mathematical calculations of volume and price. The relationship is looked for between the two.

Technical analysis is by far the most reliable source for trading the markets. You would define this by looking at the chart patterns. A trader would use technical analysis and see in which direction the price for financial security and movement lies.

There are different methods and teaching applied to technical analysis like the Elliot wave, candlestick, and Dow Theory; and other approaches may be ignored, but a lot of the time these elements are combined from more than one source of teaching. Technical analysis is based on experience and patterns reflect at a given time as to what interpretation of the pattern should indicate. - 23196

About the Author:

If you want to learn more about technical analysis go to www.wallstreetwindow.com.

Tips To Follow When Getting A Managed Forex Account

By Bart Icles

Managed Forex Accounts involve the handling of a trader/client's investment by a duly licensed company or its designated representative/s to do Forex trading in their behalf. This can be an ideal alternative for any trader who deems it necessary to do Forex trading with defined and limited risks involved. The managing company constantly monitors market activities trends in a 24 hour basis, and then recommends to the client what to do when the need arises. Once the client is informed of the latest updates, they will then decide themselves on what possible actions to take.

Picking the right Forex company to manage your account is crucial to keeping your investments in the money making zone. Only hire a reputable and certified Forex management firm who has a good track record, and genuine references to offer. Before deciding to set yourself up with a Forex account with any company or individual, be sure to cover all the bases first by doing extensive research on them, and by contacting other Forex brokers for any valuable information that might otherwise be hidden or excluded by the firm in question.

Make sure you also understand the cost and fees involved the company charges for setting up an account with them. It pays to read the small print thoroughly before affixing your signature to the contract, otherwise you might end up on the losing side of the deal even just you're still just at the initial period.

Forex accounts offer the advantage of taking out most of the complex and crucial decisions concerning the market conditions and trends from an otherwise inexperienced trader, who would lose their precious investments if left to their own inadequate faculties. Forex management firms are in the know of most important inside information, access to real-time currency exchange rates, and crucial market indicators that can be used to help clients turn a tidy profit.

The downside to investing in a managed Forex account is their rather high investment requirements that may range anywhere from $10,000 to $20,000. Some management firms may offer staggered payment schemes or the like to fit some client's allocated budgets, but could still prove to be a disadvantage once the management firm makes bad investment decisions and loses a clients investment.

Forex trading is exciting and profitable once you know how it works and with a good managed Forex account. Invest in one now to see the desired results you've been missing before its too late - 23196

About the Author:

The best traders follow their forex charts and don't force trades. Also, we feel that the ability to use the forex trading platform with some skill greatly enhances a trader's success.

Updated Algorithm For Successful Investing At Black Horse Fund

By Robert Miller

Investors rely on two types of analysis when determining whether to buy or sell an investment. They look to fundamental analysis and technical analysis. And the most successful investors continually analyze HOW they are gathering and evaluating data

Most companies will make minor modifications to their algorithm from time to time, and Black Horse Fund is no different. However, this private forex fund just made a significant improvement to its algorithm that is already delivering clearer insight for its traders.

Black Horse Fund is a limited partnership that pools partner money to invest in specific currencies in the huge and highly liquid foreign exchange ("forex") currency market. Their investors are made up of just a small handful of investors, combining the buying power of a group and the agility that comes with keeping that group small.

Fundamental analysis uses facts pulled from reports and news stories to create an economic picture about a specific currency, currency pair, or overall market condition. Expert traders then apply their experience and insight to formulate investment strategies based on what they've learned.

Technical analysis is the other major type of analysis that investors use to help them know how to trade. Technical analysis examines current market movement " including price and trends " to inform traders and help them anticipate the direction that currencies are likely to go. This is where Black Horse Fund's algorithm comes into play.

The algorithm created by Black Horse Fund has delivered successfully so far as the partnership's traders make advanced investment decisions based on the algorithm's results. But no algorithm should remain static and Black Horse Fund's recent enhancement will make the insight generated from the technical analysis even clearer.

With success comes popularity and Black Horse Fund's limited partnership has filled up quickly. They have locked the number of partners and are only accepting a couple more partners before the Fund will be completely full and all new applications will be automatically rejected. - 23196

About the Author:

For more information about Black Horse Fund, their algorithm or membership availability please contact them directly

Forex Trading

By Pete Sandras

One of the biggest markets for trading entities is the Forex market. Recently much information has surfaced in books and on the internet about this exciting new venture for individuals interested in making a little money on the side, or making a career out of it.

While all this information is essential to your understanding of the market and how you can personally achieve wealth through it, you should keep certain strategies and tips in mind that overall summarize any information you will learn about this new business opportunity. You should invest a lot of time and energy studying in addition to reading articles like this one.

I would argue that the only proper way to do forex trading would be to first wait for the economy to stabilize, as the global economy right now is in turmoil and countries can suddenly increase or decrease their wealth which completely changes the Forex market at the time. Also be careful to keep your life in order. Any form of trading is a risky venture. It ALWAYS involves a risk of losing money, so keep that in mind when you invest, that you should never put your job or house on the line for something like this.

1. The first step to starting a successful career is to build a base of knowledge from which you can find your niche in the market and exploit it to your advantage. If you don't know the basic strategies you will waste thousands of dollars and hours of your time on things that could have been avoided. You can choose automated Forex robots, or choose to go by yourself by learning from books or internet programs. Remember however that even if you use a automated software program you still need to learn the basics in order to tailor your robot to do exactly what you want it to do. An automated program is only as good as the one using it.

2. Manage your life before you manage your forex trading. Don't be rash and believe in all of those get rich quick schemes, they are only playing off of your inability to make calm, calculated decisions when you're infatuated with the idea of making money quickly. You need to have a plan laid out before you spend any money, you need a stable income to pay your rent, and DO NOT expect to suddenly make as much money as they advertise, give it at least 6 months before you can turn a profit.

3. Never rush into a new idea or business venture headfirst without first thinking. Walk before you run, play on weekends with a few percentage points of your income before you quit your job and go all out risking everything you have.

4. The market will be around for your entire lifetime, you can wait a few months before you think you know enough to trade heavily and get into higher risk trading opportunities. Remember with any new venture in life, take your time and learn from your predecessors before you run head first into things. You don't climb mount Everest your first time hiking right? So why do you think you can trade like a pro your first few times? - 23196

About the Author:

To read more about forex trading, check out Forex Megadroid. Also, check out more forex information at Megadroid.

Know Major Stock Indexes (Part II)

By Ahmad Hassam

Modified capitalization weighting involves adjustments to the capitalizations of the various component issues of the Nasdaq-100 index. The NDX contract at the CBOE is based on Nasdaq-100 as is the MNX. The Nasdaq-100 is a modified capitalization weighted index.

Frank Russell Company is one of the leading global investment consultants. It is also involved in performance measurement, analysis and investment management. Russell 2000 is the well known benchmark for small capitalization sector. Several Russell Indexes have become benchmarks for specific areas of investment management.

Russell 3000 Index as the name implies includes 3000 issues. These 3000 companies represent 98% of the investable US equities. The index is adjusted for certain factors such as cross holdings and the number of pairs in hands.

Russell 3000 is further split into subsets like Russell 1000 Index. It covers the top 1000 about 92% of the value of the entire 3,000 stock index. The Russell 2000 Index is the smallest 2000 companies in the Russell 3000 Index.

Dow Jones is the publisher of the Wall Street journal. The Wall Street Journal is probably one of the most perfect business franchises from the business point of view. The net worth of most of its readers is in seven figures. Wall Street Journal is a franchise that is very hard to duplicate.

Over the year, DJIA became an important business barometer. It grew to encompass 30 large industrial companies. Dow Jones Industrial Average (DJIA) comprising 12 smokestack companies made its debut in the year 1896.

The DJIA is still one of the worlds best known stock measures. The average is maintained by the editors of the Wall Street Journal. It consists of 30 largest and most liquid blue chip stocks in the US.

The DJIA unlike the S&P 500, Nasdaq-100 or Russell 3000 Indexes is a price weighted average. Recently Microsoft and Intel were added to the DJIA. The highest price issues hold the most influence over the average.

A 1% move in a $100 IBM stock would have a greater impact than a 1% move in a $40 Wal-Mart stock. ETFs exit on many Dow Indexes like the DJIA, the Dow Jones Total Market Index, the Dow Jones Global Titan Index and various sector indexes.

Wilshire flagship index is the Wilshire 5000 Total Market Index. Wilshire serves over 400 organizations in over 20 countries representing over $2 trillion in assets.

It represents the broadest index for the US equity markets. Over the years, it has increased to 6500 issues representing the increase in the number of companies in the US.

The Morgan Stanley Capital International (MSCI) database contains nearly 25,000 securities. This database covers equities in 50 countries and one of the advantages of MCSI and its foreign indexes is consistency. MSCI calculates nearly 3,000 indexes daily and services a client base of over 1,200 worldwide. - 23196

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and forex. Do Penny Stock Trading. Learn Forex Trading!