Current stock market behavior – best opportunity to learn

Since last couple of months, the Wall Street has been behaving more weirdly. But on the other hand, it has given a very good opportunity for newbie stock traders and stock investors to learn more about how the stock market works.

The stock market has shown
• How wildly it can behave
• How the negative sentiment can affect the investor’s pocket
• How the traders can easily burn their hands if they do not put perfect stock market management strategy in place.
• How the maximum of the bull market strategies does not work in bear market
• How losing of money is more easy then making it
• How drastically the positive things can turn into negative
• How non-fundamental stock tends to fall heavily

The stock market is showing its ugly face. This is a tough market and making money in this tough market is even tougher. But one who is able to live with this and can implement proper and perfect strategy can still make money.

You have to assume that stock market will never work according to what you think and it will never allow you to make money. But it is your skill and knowledge that you need to use to pull out the money from the stock market.

The stock trader should know how the significant dip in stock market is an opportunity to enter and how any significant rise is an opportunity to exit.

The investors should need to examine the highly defensive stock and to remain invested in such a stock that has very good fundamentals and has very good growth prospectus ahead.

Hard decision, high risk taking ability, patience and cool mind are supportive tools that help to implement this in more perfect way to make money in stock market.

Online stock broker

Online stockbroker is one of the most important aspects of your online stock trading business. Trading stocks without the help of stock broker is entirely impossible but one should also understand that choosing the best stock broker is also that essentially important. There are tons of online stockbrokers who provides you the platform for executing online stock trading but not all are good enough that will help you to make consistent profit from online stock trading or stock investing.

An online stockbroker should provide you all the basic resources that are needful for a stock investor or a stock trader for doing online stock trading or stock investing in more profitable way…mean the stock broker needs to provide variety of educational material like real–time stock charts, streaming news, various high–quality tools and a user–friendly stock trading platform.

There are also some other important things that need to be evaluated while choosing a perfect online stock broker and that is listed below but not limited to following.

• Brokerage fees – Lower the brokerage fees and commissions more you will be able to benefit. Many online stock brokers provide various brokerage schemes depending on your account balance and the number of trades you make per day or per week or per month. The more the transaction happens from your side, the lower the brokerage fees becomes which helps you to gain more profit in less trade margins.
• Many of the best online stockbroker offer multiple options for your investment such as stocks, stock future and options, mutual funds, IPO’s, exchange traded funds (ETFs) and fixed income investments that helps you to branch out your investment portfolio.
• Customer service is also one of the useful attributes while choosing online stock broker. It happens many time that you are caught in an unsuitable situation where you are not able to execute your trade or you have very important query which needs to be resolve as soon as possible and then in such a case good customer service is very mush important to get your issue resolved within minimum timeframe.
• Online stock broker should provide easy to use and highly compatible web structure for you to execute your trade in more efficient and easy way. The structure of the website should be easy to understand along with all the needful resources at minimal approachable clicks.
• User’s security is also extreme importance while it happens to transferring private information over the web. An encrypted password protected secure website, fraud protection and a Securities Investor Protection Corporation (SIPC) membership are highly indispensable.

Stock Chart - Technical Analysis Tool

A stock chart is a string plotted on a graph for stock prices versus specific time frame. Once you are familiar with technical analysis, a concept used in identifying stock movements, then you could find the technical stock chart a more useful tool used in technical analysis, in-fact chart formation is most important aspect of technical analysis.

If you want to make stock investing, or to do day trading or online stock trading you definitely need to thinks about stock price chart formation technical pattern for your above help in making a vice decision. There is a big community in stock market who strongly believes in stock chart pattern in-fact maximum of them use it on day-to-day basis.

Stock price chart helps in many way giving you a perfect view of price movement on per hour, per day, per week, per month, and so on basis to make a exact decision.



The above chart represents the Dow Jones index chart for the period of six months. The vertical line i.e. y-axis represents the price scale and horizontal line i.e. x-axis represents the time scale. One can find an easy method to detect the support level for Dow Jones index just by viewing the previous supported price at which point the Dow Jones was bounce back.

There are also various methods by which the stock trader can get broader idea about the support level and resistance level of stock by gaining detail knowledge of stock chart pattern study, which I will put in front of you in more details in my coming postings. In short there are various stock charts which a stock trader needs to know and they are
Line chart
Bar chart
Candlestick chart
Point and figure chart
Price scaling

Online stock trading practice

Online stock trading practice is a must for a novice stock trader. “Practice makes the man perfect.” Stock trading is very tricky and complicated task and to execute this task successfully you need to practice yourself before trading in stock market.

Putting all your money in stock market is not vice at initial stage without acquiring considerable amount of knowledge and knowledge does not come only with theory but it comes with lot of practice, and for practice you need to have a platform which will help you to understand real aspect of stock market. Online stock trading consists of complicated process and to get aware with these complicated processes you need to practice.

Wall Street Survivor has launched a product where novice as well as trained stock trader and stock investor can participate in stock market without investing a dime. Wall Street Survivor will provide $100,000 virtual money (not real money) to novice as well as trained stock trader who want to participate in stock market. With the help of this platform novice as well as trained stock trader can learn and can practice more as much as they want to become skilled and knowledgeable with live stock market and can also compete with other stock trader for daily, weekly and monthly prizes worth of nearly $25,000.

Online stock trading tips

Here are some of the online stock trading tips that online stock trader can use in their stock trading strategy. There are certain parameters that need to be taken into account by the stock trader while doing stock trading. These parameters help significantly for stock trader to make a successful stock trade.

Momentum – Stock momentum illustrates you the velocity at which stock prices move happens over a certain period of time. High momentum stocks are highly preferable for trading stock on short term basis.

Volume – Volume is another parameter where one can easily make out to select stock for trading. Significant increase in volume against average volume in stock over the last 7 days can give you clear picture that there is more number of stock traders as well as stock investor’s interest in this stock and with the knowing of direction one can easily buy or can short that stock.

Direction – Direction is one of the most important things for trading stock. Stock volume, trend and direction moves hand in hand. Increase in volume and change in direction tells you to buy or to sell the stock.

Trends – Trend illustrates the pushiness of prices to move in a particular direction over a certain period of time.

Stock strength – Stock strength tells you the intensity of interest in a stock. High volumes specify more participants and therefore more strength.

Volatility – Volatility describes the degree of day-to-day stock price fluctuations. More volatility arise nervousness to stock investors but there is some community in stock trader who likes to do stock trading in highly volatile stock. Volatility increases the risk but also gives high returns.

Support and Resistance – Support and Resistance represent the occurrence of stock prices repeatedly rising and falling between certain prices levels. When stock prices breakout support or resistance levels, they tend to create new support and resistance levels.

Stock chart patterns – Chart patterns provides you hits of identifiable shapes on a stock chart. Certain stock chart patterns preempt changes in stock direction and price.

Cycles – Many a time some stock sectors show a propensity to move in cycle patterns. For example after a good participation in technology sector, the stock investor turns their attention towards any other stock sector say energy sector and after the momentum in finished in energy section their tends to move their attention in steel sectors and so on and this gives an opportunity for stock investors as well as stock investor to monitor closely the sectors which are presently performing well and tries to do stock trading or stock investing in such sectors as these sectors are in momentum chances of making money is good enough that sectors which are not showing any strength or momentum.

The above following online stock trading tips can be highly useful for online stock traders as well as stock investor to make vice decision to conduct any stock trading or stock investing.

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Late stock trade burst the Wall Street

November 27, 2007

Fresh credit concerns, banking made the Wall Street to sell off sharply on Monday’s stock trading session. The Dow Jones industrial average fell nearly 240 points giving a rise to new lows. The Dow's fell its mid-October closing high is now 10.03%. The collapse to Wall Street comes as stock investors were nervy by more incoming statements that pointed to enduring problems in the credit, home loan debt going bad under the weight of a vacillating housing market; however Fed said it would inject $8 billion into the banking system on Wednesday to handle the credit market situation.

The present fact looking at the Wall Street clearly demonstrates stock investors are becoming too sentimental and caution and trying to pull out their cash at every rise. I will be waiting for Dow Jones to hold 12,500 marks but this possibility is also very less for me. At this point I would like to stay on a sideline and will wait for few days how the market pans out from stock investor as well as from stock trader points of view, however I would be monitoring my favorite internet as well as energy related stocks and if I find any good opportunity I would like to do stock trading but will avoid to do any kind of stock investing.

Free stock trading game

As it is known that stock trading is highly risky and difficult task and to cope with this situation every novice needs to have deep knowledge and strong experience. Experience is a thing which comes with practice and this practice can make a novice highly skilled and knowledgeable stock trader but to gain this practice and experience many a time many novice stock trader looses considerable amount of their hard earned money in stock trading and also maximum of them is forced to say good bye to this field.

But to cope with this situation every novice need to gain practice, experience and knowledge via some developed technology by which they can trade the stock and at the same not losing a penny to become a skilled stock trader and for this Wall Street Survivor™ has launched an online Fantasy Stock Market Trading Game product.

After registering with Wall Street Survivor you will be given a virtual cash money (not real money) of $100,000 to trade the stock. You can manage your own fantasy stock portfolio and execute trades in real time, while competing with other registered stock trader community.

This product is highly valuable for novice as well as who has basic knowledge of stock trading. By participating in this Fantasy stock market trading game one can easily gain knowledge, experience and also top scorer is awarded with cash prices of $25000.

Benefit of participating this online Fantasy stock market trading game
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• You can practice and can learn how to trade stock.
• You will understand every aspect of stock trading and over a period of time you will get considerable amount of experience and knowledge.
• You can socialize with other stock traders and can pick up quick stock tips and strategies.
• You can experiment with different stock trading strategies
• Citizen from any country will be able to participate in this fantasy stock market trading game.

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Support – An excellent buying opportunity tool

Many of the technical analysis gurus recommend buying stock at support level and they believe that this as a very effective stock trading strategy or this can also be treated as excellent tip.

Support level is believed to be a stock trader tool. Stock trader who mostly believes in technical analysis looks at the stock chart pattern and discovers the support level of the stock and decides this support level as buying opportunity. It is having said that support level is a best point where one needs to take a buying decision as downward risk is less, while upside is quite significant.

Buying and selling is a part of stock trading as well as stock investing and finding out exact buying point of stock is definitely a very difficult and complex task; however with the help of stock chart the task is quite easy, as the stock chart gives clear picture where the support level of the stock lies.

Typically support level arises from resistance level. If XYZ stock break out its resistance level with significant volume, then that resistance level act as a support level for that stock in future. For examples

XYZ stock is in trading zone of $52 to $55 for quite sometime and suddenly the stock breaks $55 with significant volume and makes it’s upward tread say to $60 and if from $60 the stock gets corrected or move downward then that stock probably finds its support level at $55 and if that stock bounce back from $55 then $55 becomes its support level and $60 as its resistance level.

Stock trading

Stock trading is said to be one of the highly respected and highly skilled business opportunity. With the recent development in the technology of internet maximum of the peoples or stock trader prefers to do online stock trading. Unlike any other business online stock trading should be deserve to have high skill requirement to execute it.

Online trading stock is basically a deal done in stock market by buying and selling or selling and buying of stocks. I am not highly delighted to say that this is very easy and quickly understandable job as it requires definitely a very hard work, deep understanding, thorough knowledge and a very cool mentality to accept losses also.

Trading stock is basically done with the help of some of fundamental as well as lot of technical analysis. If you want to be the master in this business opportunity you should be ready to study all aspect of technical analysis and much of fundamental analysis, without which it is quite less possible for you to be a successful stock trader in online stock trading.

Stock Trading is quite different from stock investing as stock investing is basically done on a long term basis and having basic knowledge of stock or stock market can also be workable in stock investing but it is not the same case with stock trading. Stocktrading need very deep study, excellent knowledge and a creative idea to develop strategies which will work and which will facilitate you consistently with high profit margin.

Now you might be thinking of how one can gather enough knowledge and expertise in this wide based great money making business of online stock trading! As I have mentioned above it is definitely not an easy job but instead it requires high skill and this can only be developed by following the list as mentioned below but not limited to following. It is having said that developing skills in trading stock has no end, a highly developed and skilled stock trader also keep updating his strategy and finds out new and new method to make consistent profit from this business.

• Gaining proficiency through reading high quality stocktrading books written by highly professional and stock market gurus.
• Become proficient in technical analysis and should be able to read and understand charts, graphs, etc.
• Should be able to identify the support level and resistant level of stock.
• Should be able to implement strict stop loss strategy.
• Should be able to pick up high momentum stock at right price.
• Should be able to pinpoint the exact entry point and exact exist point.
• Updating daily with stock market news.
• Keep daily track of your favorite stock portfolio by personally monitoring the stock movements during market hours.
• Start stock trading at initial stage only on paperwork and not with real money
• Refer views and statement made by highly professional stock market gurus that are telecasted through CNBC news channel and other financial related TV channels.
• Try to give maximum of your initial time in studying strategies related to trading stock by referring different book written by stock market gurus.



Stock Trading Practice

Stock Trading Strategy

Skills require for mastering stock trading

Stock Trading Tips

Stock Trading Software

Stock Trading Do's and Don't Do

Stock trader

The person who performs stock trading is basically known as stock trader or stock market trader. The stock market trader is one of the vital and most essential elements in stock market. Stock traders are the peoples whose intention is mostly to perform stock trading and very less or some of stock investing. Stock trading is normally buying and selling of stock done for short period of time may be for days or for few weeks while stock investing is generally done for long period of time means after buying the stock it is hold for few months to many years and then it is sold or kept in hold as long as that stock is performing exceptionally well.

Stock market traders are basically high risk taker individual who actively participate in stock market on almost daily basis. The maximum of the stock market trader treats the stock market as their regular business work and considers this as their only mainstream income source.

The stock market trader buys the stock and usually holds them for very short period of time may be for a day, or a week or mostly for couple of months, beyond that then they could be recognized as stock investor. There is a category in stock market trader mainly called as “day trader” who usually executes the stock trading in only one day. They have the authority to short the stock means they can sell the stock which they are not holding and can cover their position by buying those stock again in the same day…..means taking the profit or loss to their home in the same day itself.

Previously in the old days the stock market trader were very less in number and the process to execute the stock trading was a very complicated process but with the discovery of superb electronic technology and internet the number of stock trader have increased significantly. With the recent development of technology now peoples from all categories are taking use of internet and are becoming regular online stock traders. Online stock trader are now able to execute the stock trading through their home with the help of internet and with the help of same technology they are able to get any information related to stock market or of any stock at their fingertip facilitating them to execute the stocktrading process in efficient way.

Stock investor information

There are separate categories to define in stock trading - stocks investor and stock trader.

1. The first being long term stock investor. They normally buy and hold a stock position for couple of years to almost endless period. They may do some research on a stock before buying, maybe checking out some of the fundamentals such as the PE. ratio (price to earnings), valuations, dividend paid, market capital, or market analysts recommendation but to be a successful stock investor in stock market one much have a good fundamental and technical knowledge by which he can determine at which level which stock to buy and at which level to sell by making good profit.

The fundamental analysis knowledge means that the stock investor should have to know about the valuation of any particular stock, PE ratio, market capitalization, product, % of market that particular company hold etc. Fundamentalists study the cause, while technicians study the effect. "Price" is the final result of all forces that can affect a stock. Price even discounts the future, unknown news, while fundamentals reflect the past. It is because of this reality, we often see tops being made on good news and bottoms being made on bad news.

2. The second category consists of "stock traders." They hold a stock position for a few days or weeks or a month at the most. This group tends to treat the market as a business. They are not interested in fundamentals like the stock investor category. They are more interested in a stocks price movement, which they can determine by technique chart. When the people of this category make a stock purchase they know exactly where the exit points are. Their profit and loss points are predetermined. This group is guided by a set of predetermined rules, when a rule is met a reaction takes place either buying or selling.

Technical Analysis is basically the study of Price Chart, undertaken to get an idea about future price action of any traded stock. A Price Chart plots the quotes of a stock traded on a stock market. All past\present\future news relating to a stock, together with stock investors' opinion about it, determines the price of the stock on the trading floor. The "Value" discounts everything; therefore study of anything else is unnecessary. Technical Analysis comprise of a variety of techniques to study such price action over a period, by which stock trader can make a good decision at which price the shock has to buy and at which price it has to be sold. If stock trader is perfect in these things then that stock trader can make decent money in stock market.

How Technical Analysis helps stock investors and stock traders?
With the help of Technical Analysis, the stock investors and stock traders can enter the stock (long or short) when it starts trending, instead of locking their money during the periods of consolidation. Traders may look for such trending moves in daily (or shorter) charts, while the investors may look for such trending moves in weekly/monthly charts. Volatile market trading strategies are appropriate when the trader believes the market will move but does not have an opinion on the direction of movement of the market. As long as there is significant movement upwards or downwards, these strategies offer profit opportunities. A trader need not be bullish or bearish. He must simply be of the opinion that the market is volatile.

3. The third category consists of day traders. This category has all the characteristics of the 2nd group except they leave nothing to chance. All positions are closed before the end of the day, buying and selling without hesitation, according to their guidelines, strictly 100% business.