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Posts Tagged ‘Technical Analysis’

The Trading Week Ahead For Day Traders And Swing Traders

December 10th, 2014 Comments off

As expected, the market ran to the top of the daily range last week, briefly pushing above S&P 1128 on Friday. Still it was a pretty quiet week with both the S&P and Nasdaq composite sitting contentedly on their respective 200 day ma’s until Friday’s gap up.

Evidently the market wanted to wait until after option expiration before it tipped its hand on the next move. The good news is that we’re in a great spot for a big move in one direction or the other. A break back under the 200 day ma (S&P 1116) could take us all the way down to the 1040 area, perhaps after a pause around 1089.

On the other hand, a move above Friday’s high (S&P 1131+) could trigger a move up to S&P 1172 or even the high for the year at around 1219. Given the weekly inverse head & shoulders in the S&P, I’d be inclined to look for the upside move.

While the S&P and Nasdaq both put in red bars on Friday, Kohl’s (KSS) managed to close green, even after running below Thursday’s low in the first 30 minutes on Friday. The strong close also put KSS above its prior daily pivot high with room above. Look for a long entry above Friday’s high (above $51). The stop could be placed under $50.35 from the 15 minute chart, or more conservatively under Friday’s low ($49.76). First target would be the 200 day ma ($51.85) and the second target would be the daily highs just over $53.

The housing sector has been struggling, but finding a clean pattern to short has been difficult. KB Home (KBH) has pulled back for several days, which could be a buy setup, but it moved below support Thursday and remained there Friday. This could set up a continuation short, with a stop over Friday’s high ($11.48) and an entry under Thursday’s low ($11.04). First target would be the bottom of the green breakout bar ($10.50) with potential for continuation down to $10 or $9.50. If KBH moves over $10.50 it could be traded to the long side as well.

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How To Buy Stocks: Pointers For Beginners

October 21st, 2014 Comments off

Does it not sound great that you could possibly get a stock and be labeled a stock broker or stock holder? Every single individual’s dream is to be labeled amongst people who are known to have been filthy wealthy, popular or kind. In case you are not one to get known as anything near to beautiful as a celebrity or kind just like any noble man in history, then you definitely should be at least recognized to have provided properly for your household. Working doesn’t necessarily make your kids and your grandchildren born with silver spoons in their mouth so you should either set up a business or perhaps be well-versed within the financial activities. You could choose to become a person with stocks however it all depends on just what your knowledge of how to buy stocks is.

The excellent thing about it is that you don’t have to get someone who has to study economics and you do not have to be one whose eyes could easily see the rise and fall of shares inside the huge red and black digital board of the stock market, you are able to simply opt to go online and things would be a lot less difficult for you. Now, here are a couple of the tips that you would need. Keep in mind, you don’t have to become a person who talks just like an economic book to know how to buy stocks but it really is very essential that you follow some pieces of advice to be guided accordingly as well.

The most essential thing that you would certainly need to have is education. But well, again, it does not mean that you would have to be like a walking encyclopedia or a know-it-all. What you would certainly need to have would be to make sure that you would definitely have a history of what things are available for you. Needless to say you’d not desire to become a soldier sent to a battle without the appropriate armories to help you get through the war still alive right? Now, what you would have to carry out would be to read and take some crash courses about stock management to get a better view of the thing that you would certainly get yourself into.

The second step would be all about your stock management alternatives. You would have to determine if you’ll need somebody to help you out with. You will find occasions when you would need to have the help of a broker so that you would likely be capable to deal with everything virtually just like you don’t carry out all of the work. You need to choose if you will really need to work with your internet connection or should someone also call you and take orders through phone. This is also when you start to make a decision whether you are just to sell and buy stocks or you’re also to buy and sell bonds, mutual funds or international stocks.

Third, you would have to decide whether or not you must hire the services of the broker or perhaps a brokerage firm. The thing is always that regardless of how suitable you feel about this, there are things that exclusively brokers could do. You might come across difficulties along the way and which is what the brokers are here for. More than to teach you how to buy stocks, they’re right here to ensure that you will be guided appropriately within the entire method.

With the broker to willingly help you, every little thing is going to become much better and less difficult. In the end, there will be no need for you to worry about the remaining actions. The opening of accounts as well as the management of the shares shall follow through smoothly right after getting in touch with these.

Learning how to buy stocks is very basic for the stock market industry. Anyone who wanted to invest on this business must make sure that he understands this. Another aspect of the business that he needs to learn is day trader.

Daytrading Advantages

October 3rd, 2014 Comments off

One always thinks that this is not going to be something that he or she would easily get into whenever someone would mention stock trading and the stock market, It would either be because that person is thinking that the place is too sophisticated a venue for business or it could be because of the fear that he or she will not stand to the test. Everyone knows that this could not work so well. There could be some drawbacks or things that you are not yet able to determine right away. But then, that does not make the stock market a repulsive venue for those people who want to grow their money. And, not all trading takes place the way you imagine them to be. There is daytrading that will save you from worries and fears. You should be wondering who you must get into this type of trading instead of the more conventional one but of course, there are many advantages as well that you are going to benefit from so that things will fall into places for you.

The very first thing that is advantageous about it is that in this type of trading, you will have a very short commitment. You may choose to participate today and the following days after it. It may not have to be that often and most of all; you are not bound to it unlike the long-term trading. Should there be days that you are not able to participate, your stocks would be as safe as the time you opted to close it. If there would be days when you have to go out of town or stay off the net for a while, you could be sure that you will still have stocks to sell and buy once you get back on the trading arena.

It is also less risky because you would have the chance to participate in the daytrading only during days when you feel like it. Now, if you feel that your stocks have no way but to sink, then you would have to leave for a while and let the storm pass. When you are ready, then you can go on with the trading again. Unlike in the long-term trading where there is no other option but to participate in the trading despite the big problems that hound the different type of stocks.

Moreover, this type of trading is going to give you more freedom to move and make decisions. There are very few strings attached as compared to the usual trading wherein you are given the chance to get the different stocks that are available. You may choose to get ones that you are not familiar with but are generating good income and see if this will be alright with you. You should not be stuck on something too long and that will provide a better venue for growth.

Lastly, daytrading is available for those who are busy. If you have no other way but to try to look for an avenue to earn, with your computer and internet connection, you could start participating in the trading. You could still do the things that you must do during the day and earn on the side because of the trading sites.

Learning daytrading is very basic for the stock market industry. Anyone who wanted to invest on this business must make sure that he understands this. Another aspect of the business that you need to learn is best short term investment.

The Stock Trader And The Risk In Trading

March 31st, 2014 Comments off

Stock trading is somehow likened to a coin that has two definitive sides. The stock trader will gain some and lose some. However, joining stock trading is not the same as tossing a coin in an open field. The result is not a random chance. Seasoned stock traders know how to land on the profitable side of the coin.

Basically, stock traders have knowledge that trading could be very stress-free in money making. However, it could also be the easiest way of losing money. We can also call stock traders as stock investors who are groups of people trading in stocks who wish to earn more profit despite the unstable situation happening in the stock market. Buying and selling of stocks can also be called as trading. It could happen or last in a few seconds or even for a week.

Whether part time or full time, investors could choose. Traders do trading either for their clients or just for their personal interest. More often, they ascertain their positions as money managers or people who are more exposed to financial field. Usually they choose to be involved in various types of stock trades or they just focus onto one type of stock trading. Day trading, momentum trading and scalping are the most commonly used trading procedures that could be as guides for stock traders.

Usually, a stock trader oftentimes gets a stock broker or a brokerage firm to do the transactions. While the internet gets more and more fame, the system of stock trading became effortless. With the help of high-tech software and various trading supplies that can be seen online, stock trading became convenient and unbelievably fast. Fundamentally, the internet opens more to the field of stock trading to everyone.

For beginners, stock trading is not easy. Partaking in stock trading implies a risk that stock traders should be part of the reality. It is a sport for risk takers and for people who could stand his guns without losing sums. Taking risk is part of stock trading. It is essential that stock traders could make a calculated risk.

The legalities and formalities incorporated with stock trading is also a great deal of hassle for neophyte stock traders. Furthermore, calculation of the taxes, brokerage commissions and other required fees are involved. More importantly, the stock traders should be able to appropriate profits from stock transactions.

A stock trader must not forget the basics while putting on their investment. He should do the necessary research and market survey before deciding to invest into a particular share. He should always do trading with confidence and should have an alert mind without being influenced by the two big emotional factors such as fear and greed.

It is an advantage for stock traders not to overtrade as well as not be clogged in the interlinking margin trading. As a safety net for stock traders, stop losses and booking profits should be followed.

In the end, stock traders could always come up with the side in which they could earn more money through constant participation at the right time.

Learning Stock trader is very basic for the stock market industry. Anyone who wanted to invest on this business must make sure that he understands this. Another aspect of the business that he needs to learn is day trading stocks.

Tips To Follow And Mistakes To Avoid On How To Buy Stocks

February 28th, 2014 Comments off

With everything done online, it is no surprise that even stock trading can be done at the comfort of your home. You no longer have to have a crack research team to help you pick stocks since there is a repository of information on the internet already. You just have to use this information properly to become richer.

Online trading even resolves the essential challenges of manual stock trading which is certainly communication. Missed opportunities caused by very busy cell phone lines, or missed communication from you or perhaps for the stockbroker no longer should take place. With everything automated, these kinds of problems are only part of the past.

But for any beginners, the first question would be how to buy stocks online? To help you with this dilemma, here are some helpful tips you can follow on how to buy stocks online:

* Get yourself informed – Like any venture, you should know what you are getting into. There are various resources online that can help you prepare a strategy that will help you earn in online trading.

* Check out different brokerage companies – There are many brokerage firms that allows you to buy stocks in the market, but there are a lot of other things you might want to consider before creating an account with one. Some of the factors you might want to consider include:

* Do you want to consult with someone for any brokerage company personally, through the phone, or maybe online?

* Aside from buying stocks, do you want to sell as well?

* How much is their transaction fee?

* Generate an account – After you have selected the brokerage company, you need to generate an account with them before you purchase stocks. You will probably get asked to have an initial down payment to invest in your account.

* Complete all forms sent by brokerage companies – All brokerage companies are required to report your transactions to the Internal Revenue Service or IRS so make sure that the forms are filled up correctly.

* Begin buying and selling – As soon as you have completed everything above, you can begin buying and selling stocks.

Those are some suggestions that show how to buy stocks on the internet, so now here are a few errors you have to prevent:

* Following the bandwagon blindly – Even if a stock is being called a hot stock by the media, you should not just risk buying the stock immediately. Since it is endorsed, you will have a lot of competitors and being a novice, you wouldn’t know when the right time to buy and sell stocks. Pick your stocks based on the information that you have.

* Focusing on one business – For you to minimize the risk of losing too much money, it’s better if you diversify your selection and prevent working on just one single trade. Tend not to focus more than 2-5% of your portfolio on a single deal.

* Waiting a long time for the stock to pick up- As soon as your stocks decrease, you need to seriously think of offloading all of them instead of watching for it again to pick up, since that might not really take place.

These are just a few suggestions that will help you on how to buy stocks on the internet efficiently. Seek advice from online trading specialists to learn more.

Learning how to buy stocks is very basic for the stock market industry. Anyone who wanted to invest on this business must make sure that he understands this. Day trading stocks are another aspects of the business that he needs to learn.