Trading System – Is It Really Worth Your Money
If you want to get into trading, a trading system can help. It is often hard to know if failure or lack of success in trading is the result of poor marketing or lack of knowledge about trading systems; either way, if things start to falter you may end up thinking that the system you are considering looks like a get rich quick scheme.
It probably isn’t – this type of thinking is largely misrepresentation and misperception. But the question is, will a trading system really work; is it really worth investing in trading system software to help you with your trading?
The short answer is that it depends – one trading system may produce good results, another may not. It all depends on your goals, your personality, and which trading system you choose.
What is a trading system?
A trading system is simply a piece of software that helps assist in your trading. These systems are designed to help you accurately determine when to buy and sell, as well as what kind of profits to expect. But since it is a piece of software ultimately designed by a human, one has to wonder how accurate it can be.
A trading system bases its functionality on certain technical analysis tools, and since there are many types of analysis tools, the results can vary depending on which system you use. On the one hand, it is great to find an automated system that can assist with this analysis, yet on the other, accuracy will depend on which tools it uses.
And therein lies the problem with a trading system – whether or not this program will work as it claims depends on the programming. That is why a lot of care and research needs to be put in to determine which trading system will be best for your needs.
Purchasing a Trading System
Would you like to give a trading system a try? Do you think it will help make you more successful at it? Remember that it is possible to get good results if you choose a good system, however if you don’t choose a good one, it can cost you money.
Your best bet is to read product reviews and ask others which trading system they use, but make sure to ask people who are relatively successful at trading. Just because someone “likes” a particular trading system doesn’t mean it yields good results.
Special Considerations
In general, you’ll want to look for a trading system that uses proven, successful analysis tools such as, Bollinger Bands, Stochastic Oscillator, Moving Averages, Relative Strength Index, and others. A good trading system may include all of these.
For more information visit at http://www.besttradinginfo.com and find the best trading strategies and systems. Learn form Ryan Lee, a successful, full-time, active investor and others, how to trade profitably.
[tags]trading system, trading system software, analysis tools, technical indicators, trading[/tags]
Stocks & Oil, Sat Jun 18th, 2005
Both the stock market and oil prices rallied recently, which seems to be a paradox, because high oil prices are negative for earnings (i.e. a higher production cost and a higher consumer tax). However, the stock market was worried about another “soft patch,” of slower economic growth, and the sharp rise in oil prices suggest the U.S. economy is still expanding at above trend growth.
The two charts below are same period daily charts of SPX and OIH. The short-term technical indicators suggest SPX is near a top, e.g. VIX closing at a multi-year low, VXN closing at an all-time low, and the NYSE Oscillator’s 20 day MA at an extreme level. Also, Nasdaq closed at 2,090 Fri, and 2,100 is major resistance. SPX rallied to 1,219.5 Fri, and 1,220 may be resistance. SPX may be creating a bearish head & shoulders pattern, with the left shoulder at 1,217.9, the head at 1,229.1, and the right shoulder at 1,220 (see chart). SPX may pullback, consolidate, and become more volatile next week. Major support is about 1,200, the current 20 day MA, which SPX held over the rally, and 1,200, in general, which is psychological support and a congestion area. Major resistance is at 1,220 and 1,229 (the recent high).
OIH closed at an all-time high and created a bearish hammer Fri. Major resistance is Fri’s high at 104. Major support is at 100.30 (previous highs), and the 10 day MA, currently at 99 1/4. There’s also an open gap at just below 95 1/2, and Jul Max Pain is still 95. OIH rose about 20 points, while oil rose from $47 to about $59 a barrel. Consequently, if oil falls to the low $50s, then OIH may retrace 50% of the 20 point rise. The steep rise (also, see MACD) suggests a consolidation period soon. Both the RSI and Oscillator (ULT) are severely overbought, particularly for an index.
Perhaps, the oil market has discounted future events that would influence oil prices, e.g. stonger than expected global growth, the start of hurricane season Jun 1st, which may affect oil platforms and refineries in the Gulf, end-of-the-quarter window dressing, and the 4th of July holiday, which is the start of the summer driving season. Also, I may add, the U.S. oil strategic reserve is filled up. So, the federal government isn’t draining oil from the market. Moreover, China’s economy is “overheating,” and it’s to China’s benefit to grow at a sustainable rate, to prevent inefficiencies.
Next week is a light economic and earnings data week. So, oil prices may have a more influencial effect on stock prices. Consequently, SPX puts, for example, may hedge OIH puts. Both SPX and OIH are at high levels. Economic reports next week are: Mon: Leading Economic Indicators, Thu: Unemployment Claims and Existing Home Sales, and Fri: Durable Goods Orders and New Home Sales. Also, the U.S. weekly oil inventory data Wed should move oil prices. I believe, the positive correlation in stocks and oil will decouple next week, because the longer oil prices stay high, the more negative it will affect earnings of non-energy stocks. Arthur Eckart, PeakTrader.com
See PeakTrader.com Market Overview section in Forum Index for charts.
Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time. This methodology has resulted in excellent returns with low risk over the past three years.
[tags]article submission, articles, writers, writing, publishing, ezine, email marketing, email newsletter, email[/tags]
Elliott Wave Basics
You have probably heard of the Elliott Wave concept but without careful study it can be a difficult concept to understand or apply. However, it is a very interesting system that identifies cycles in the markets. All traders and investors should at least be aware of Elliot’s Principles. Just keep in mind that no one really can explain why it works despite having many followers who have used it successfully.
The graphic below shows the basic pattern of five waves that are ultimately bullish along with three that ultimately are bearish. Then the pattern repeats itself and heads even higher to start a new cycle, in theory. The Elliott Wave Principle was developed in the 1930’s purely through observation of price patterns. Elliot devised a complex set of rules and additional patterns to explain alternate movements, contradictions and reversals that all have their basis in this original pattern.
http://www.timingresearch.com/images/newsletters/midweek/free021506a.gif
While it is important to remember that defining exact Elliott Wave patterns is very subjective, they are easy to spot on some charts, especially when they occur on slow-moving large cap stocks or indexes. That is actually what prompted the writing of this article today. I noticed that since the opening of the markets on February 8, the indexes (especially the DOW) have made movements similar to the first five waves of Elliott’s pattern. You can see this marked in the chart below.
http://www.timingresearch.com/images/newsletters/midweek/free021506b.gif
Now several of Elliott’s rules invalidate this specific pattern example. One of them being that in the purest form of the pattern, the third wave is usually the longest but never the shortest as it appears to be here. However, the pattern might hold to Elliot’s principles. If it does then over the next few days the market will drop slightly, come back slightly and then drop back down to about the top of the first wave before surging up higher then the top point on this chart.
The principle can be applied to any time period. The following chart is for the NASDAQ100 back to April 2006. It appears to have created one full cycle, which ended in October and is just about to start its fifth wave on a second cycle.
As we said above and as you have seen on these charts, this is highly subjective analysis. We prefer to stick with our proven, mechanized strategies but there is a large following of Elliott Waves among traders and investor out there and it is a good idea to be aware of. If you would like to know more about Elliott Waves and have a more detailed explanation of all of the rules and patterns involved, there is an extensive section devoted to it in the book The Psychology of Technical Analysis by Tony Plummer.
David J. Kosmider is the President and cofounder of TimingResearch.com which provides advice and recommendations to stock and options traders worldwide. View all of his articles and services here:
http://www.timingresearch.com/
[tags]Elliott, wave, stock, investing, trading, economy, market[/tags]
E-currency Exchange Can Darwing be Applied to It
How would you feel if you doubled your invesment within your first month? Do you know this is possible with E-currency Exchange ?
To some people it may sound like it’s not something they can do. I actually hadn’t given it much though, but I must say I was pleasantly surprised when I realized I had actually doubled my investment in less than 30 days. The only reason why you wouldn’t be able to get this results for yourself would be because you don’t get the proper education for yourself.
Most people don’t realize that when a pro teaches you directly in his area of expertise, you start to learn much faster and gain understanding of things that could take you years to learn for yourself. The same can be applied when you want to get into E-currency Trading. What takes months to figure out you can learn in hours when you decide to learn directly from a pro.
This is one crucial principle most people must start applying it into their lives to become succesful: Learning from others means becoming succesful in half the time.
What happens when you learn E-currency Exchange directly from a pro?
If you think about it the impact this could have could be life changing, imagine knowing exactly how the system works and being able to double your money as a result.
The most important aspect that changes is that you now learn strategies that generate more money. Once you learn and follow this strategies your bank account statements start showing it and you’ll realize it’s something you can do. You’ll know what it feels like to be a succesful investor, Your life becomes more comfortable and You’ll be able to brag to your wife about how good of an investor you are.
While you’re getting into E-currency Investing, you might find yourself asking “How does it work?” Well, here is the answer.
This is the concept behind Electronic Currency Exchanging : Every day, a lot of money is being made through transactions of money on the internet. This is what we call “internet money”, which requires to have a physical backup of every cent traded. Since this happens daily, the same day you decide to provide the financial backup for the “internet cash”, that same day you’ll start to make money with it.
The easiest path to learn from a pro: Take a training program that will transfer all the knowledge the professional has directly into your mind. You’ll start to think, act and trade e-currencies like a pro.
What are the best ways to learn about e-currency exchange, visit my site (http://www.electronic-currency-exchange.com) for the inside scoop on you can learn more about the E-Currency Exchange Program
[tags]e-currency exchange[/tags]
