Even Dummies Can Learn Profit Trading

By Chad Reynolds

With today's technology, there are more resources than ever before to help you achieve your dream of becoming a profit trader. If you've always wanted to train to become a profit trader in the stock market, it is important to know that there's never been a better time for stock market beginners to join the ranks! Some might call it stocks for dummies, but we call it a really great training center.

That's right, all it takes to get you moving in the stock trading business is a fantastic training center that can provide you with all the resources you need to make your stock trading business a success. Whether you're new to the stock trading scene or you're a life-long veteran, there are great tools for everyone to make their lives easier and it all starts with a fantastic trading center.

There are a lot of average or not-so-capable training centers out there, so watch out and really do your research. You can start off by simply looking at the training center's Web site. If they are a reliable, well-respected company, you should be able to gather a lot of great information about the stock-trading world for free right off their site.

Wouldn't it be great if you could try the program for a month and, if you didn't learn a thing from the subscription, they would give you your money back? It is called a 100 percent satisfaction guarantee and it is something you should look for when searching for a training center.

However, you must remember that the training can only do so much. It is up to you to take the initiative and learn the self discipline to stay dedicated and motivated to your training. The training center should know this and, if they are an honest training center, they will even make note of this right on their site.

Another great feature to look for is the option of a personal trading coach. This will give you a chance to ask any immediate questions about the industry, before you venture off on your own. If you're lucky, they might even offer the first session for free. Hidden values like that are great and you should look for them while choosing a training center.

Some other things that a great training center might offer is access to the resource library, which may include eBooks, past training seminars and webinars, special reports and more. The training company might send out weekly email alerts about potentially profitable trading candidates, which is another great feature to look for.

This kind of a life change is possible and the resources are out there to help you succeed. Just remember to stay motivated, dedicated and focused. Trading stocks is a great option for those looking for a change of career or those who are looking for some extra cash as a part-time job. Good luck! - 23196

About the Author:

Find out more about stocks for dummies. Chad Reynolds is a veteran in the business and he has a plethora of insight for stock market beginners ; let him teach you about the stock market and how to hit the ground running.

Currency Trading Broker - What Makes The Best?

By Michael Knightly

Choosing the right currency trading broker is an important part of getting off on the right foot as a trader. You need to consider the fees that your broker will charge as these will affect your profits. There are so many brokers in the market and they differ in the amount they charge. It is not necessary to choose the lowest cost broker, but this is certainly a consideration. It is good to determine if the services you receive justify the costs.

Calculating the cost of trading there are a couple of terms to understand. The spread is the difference between the bid and ask price of the currency. The bid is what you receive when selling your currency, the asking price is what you have to pay in order to purchase it. If the GBP/USD is 1.5200/1.5203 this means that to buy the pound it will cost $1.5203. The difference between the bid and ask is 3 pips. A pip is 1/100th of 1% of the lot size. On a lot of 100,000 this is $30.00. Search for a broker with the smallest spread so your costs will be as low as possible.

A good way to select a good currency trading broker is to ask for a recommendation from friends and family who are also trading. If they are satisfied with their broker this is a good indication that you might be also. Beware of brokers who advertise extremely low costs for trading. These low rates usually only last for a short period of time. Make sure that you get involved with a broker that can complete your transactions quickly. You need to trust your broker with your money.

Professionalism and honesty are the characteristics you should look for in a currency trading broker. You need to find someone who will work with you to achieve success rather than someone who is trading against you. Because there ae so many firms offering services, one thing that is absolutely necessary is to use a firm that is actively regulated by a government agency. Check with the agency to see what kind of record the firm has.

Try to find a broker who is truly interested in seeing you succeed. Don't get involved with brokers who take the opposite side of your trade. They will obviously not have your best interest at heart. Choose someone who will support you in achieving success rather than working against you.

If is recommended to choose a broker you trades through the Electronic Communication Network.(ECN) This is the type of currency trading broker who simply matches up trades from the buyers against the sellers. They do not take positions themselves. Market-makers will take the opposite position to yours in order to "make a market." This creates a conflict of interest. Stay away from this style of broker.

Using a service like a website that collects information on the different brokers will help you make an informed decision, as there are almost 'top' lists for the more popular ones.

It is worth the time spent to find the right curency trading broker to work with. Working with someone you trust can help you focus your attention on making money. - 23196

About the Author:

A KEY factor for your success will be your currency trading broker if you are serious about online foreign currency trading!

Puts and Calls, Should You Be A Buyer Or Seller?

By Maclin Vestor

To buy options, or sell them?

If you are a seller of options, you have a fixed amount of income that you can collect. You will always receive this portion of the option. Now, there is another part of the option that you may or may not receive. You always receive the theta or time value. Now the rest of the option is based on what the stock does. If a $50 strike priced option expires at $49.99, you collect that entire premium. Now if you were to sell a $40 strike priced option for a $50 stock, you might receive $10.50 per share. This .50 per share is what you will always get. You will also technically get the $10 per share, but you will have your shares "called" in, and that means that you have to sell them at $40, but you keep the $10.50 so if it expired at the same price, you would only gain the $.50. Now say you instead sold a $50 strike price. Now the value might be $1.00. The theta value is now $1, which is much greater. However, in the last example, if the stock dropped from $50, to $40, you would still end up with a slight gain. In this example, if the stock fell to $40, you would incur a $9 a share loss.

Now lets say you buy a stock with $50 a share, and sell an option at $60 a share. Now this option might cost you $0.50. Again the time value is 0.50. The difference is, now you have room for your stock to go up and less of your upside is capped. However, Now if your stock goes to $40, that's a $9.59 loss. These aren't real numbers based on a real stock and real options, but they illustrate the point. The point is that whether you buy or sell a stock option depends on your outlook, and what strike price you are looking at.

Buying and selling options have advantages.

As the buyer of a call option, you are saying, I believe this stock will go up. You would buy an at the money option because you want the full leverage per 100 shares and you want to get as close to a gain as 100 shares as you can. You would buy a deep in the money option because you want to pay less for theta, allow you to lose a smaller amount percentage wise, keep actual money tied up so you aren't tempted to put more leverage on or if you do you have better money management. You need less of a move to make money with a deep in the money option, and it's practically buying the stock for a discount if you buy deep enough in the money.

As the buyer of an out of the money option, you first must have enough money on the side, but you believe that if you can get a stock to move big, that you should bet big, you allow yourself to buy more shares and diversify while still keeping a lot of capital on the side (which you will have to do). If you can manage your larger swings, these have limited time value, and very high upside. Now a covered call is when you own the actual stock so things will be different.

A covered call you would sell a deep in the money call if you want to collect the theta, but want to insure against greater losses and are willing to accept less for this protection. You would sell an at the money option because you want to collect the maximum theta, don't believe the stock will decline much in value, but you don't believe the upside will be that great. You would sell out of the money options if you bet on the stock being slightly bullish. This is just a start which tells you what to consider when determining what strike price to buy an option at, it does not tell you what to consider when determining whether you want a long term, or short term option, but thats another story. - 23196

About the Author:

Maclin Vestor teaches about varioustrading systems and has a course coming soon on finding futures trading systems that may work for you.

Learn To Trade The FX Market

By Marc Carson

Here's a secret that may possibly amaze you: There is not to much to study to learn forex trading. Better: Studying to trade FX like a pro can be done in your spare schedule...

Before Studying to trade FX, you must spend some time to familiarize yourself with what the forex market is. The forex market is 36 of the worlds currencies being traded against each other. In the region of 3 trillion US dollars is traded each day. Moreover this enormous international market is also the most accessible, because it's open 24/7.

One of the most appealing feature of the forex market is that it's not restricted like some markets. In fact it is one of the easiest markets on the planet where you can trade anytime, anywhere. It's very possible to attain serious financial profits.

One of the advantages of FX trading is that you don't need a huge amount of capital in order to trade Foreign Exchange. A small amount of capital can be a sufficient amount if you use leverage, a performance that can expand your trade power and your return on investment (ROI).

Basically "leverage" means you have the capability to control a hefty amount of capital using a small amount of real capital and borrowing the rest from your FX broker. The FX trading leverage can be very extreme, up to 400:1. This is a proven technique successfully implemented in their strategies by many traders.

One of the most compelling techniques for successful FX trading is to have your orders in place. And what are the most important orders? It's simple: The stop loss order and the limit order. This very necessary technique will protect you from large losses and will allow you to endure bad trading trends and become successful.

The best way to make sure you are learning to trade FX like a Professional is to undoubtedly understand the nuts and bolts of buying and selling the currency pairs. Again, this is a uncomplicated yet often overlooked strategy: You cannot buy just for the sake of trading - you have to trade only with the expectation that the currency you would like to trade is going to go up in terms of profit to you. - 23196

About the Author:

Learn more about forex free trading. Stop by Marc Carson's site where you can find out all about forex free trading and what it can do for you.

Being Born Rich

By James Pynn

My friend, Jim, loves to manage other people's money. That is, he loves to manage rich people's money. Most of his client would be considered part of the nouveau riche -- they have worked hard to become rich. But, from what Jim tells me, more upper-crust families in America have inherited fortunes rather than actually creating new ones. He would know -- in order to become one of his clients you have to have a net value of at least $1 million. It does boggled the mind to think there is more so-called "old money" in the market than there is "new" money.

This begs the question: if old money drives the economy, how does new money ever enter the picture? Where does the average working Joe fit into the picture? What about the middle class? When does the middle class get to ante up to the investment table? During the 1990s we saw more day traders buying and selling in frenzy to make it into the top 10 percent. Of course, only 1 percent of those people ever made the grade.

So is it the privilege of the rich to only get richer? How can an eager entrepreneur break into the top ten percent of the world's wealthiest people? Enter the corporation. Why is the Western World replete with so many corporations? Because it takes a whole board room of upper-middle-class business men to front the start up money. Venture capitalism is a powerful counter-balance to inheritance.

J.P Morgan didn't fall from a money tree. Steve Jobs didn't just open a window and let money fly in. "It takes money to make money" is a truism for a reason, but not for reasons most people with inheritances think. It takes venture capital to start a business -- it takes seed money to get an idea off the ground. Where this money comes from is not as important as what is funds and who benefits from its investment.

Here is a fun fact: the richest people on the planet become even richer during economic downturns and depressions. How is this? Recessions and depressions have a tendency to destroy competition, therefore consolidating the wealth of the super rich. Competition is not in the best interests of the super-rich. Consequently, it is the corporate structure -- justifiably attacked for its lack of transparency -- that allows new wealth to be created and more people to participate in that wealth. Most corporations are started by venture capitalists and entrepreneurs -- and that entrepreneurial spirit is what has made the middle class and nouveau riche possible. - 23196

About the Author:

Joining the Ten Percent Club make take a good amount of shrewd, savvy day trading. Don't trade stocks online without a great team of people behind you.