Trading Video Tutorial: How To Combining Various Technical Analysis Techniques

In analysing market using Technical Analysis, various techniques are often combined to complement and support one another.
This video of the current S&P 500 market analysis shows an example of that.

Some of the analyses mentioned in the video are as follow:
* 200 Moving Average & 50 Moving Average Crossover
* Doji candlestick
* MACD Indicator
* Trendline
* PSAR (Parabolic Stop and Reverse)
* Double Top reversal pattern
* Fibonacci Retracement

(In case you need more information about the above analysis, you can click the links above to the articles in this blog that discuss further about those topics)

Other than learning the tips how to make use & combine various technical techniques to complement and support certain analysis, from this video you can also get some useful tips for your trading.

Analysis Tool:
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Get Know About Stop Limit Order

Stop Limit Order is an order (buy/sell) to close a position that only executes when the current market price of an option/stock hit or passes through a predetermined price (i.e. Stop Price).
Once the Stop Price is passed, the Stop Order becomes a Limit Order, and can only be executed at a specific price (i.e. Limit Price) or better.

As you may have noticed, Stop Limit Order is almost similar to Stop Order. The main difference is that in Stop Limit Order, when the Stop Price is passed, the order will be converted into a Limit Order, whereas for Stop Order, it’ll convert into a Market Order.

Depending on the position on the market you have (long or short), there are 2 types of Stop Limit Order:
a) Sell Stop Limit
This is the stop limit order when you have a long position on a security.
In this case, the Stop Price is placed below current market price of the security, and the Limit Price should be placed at least the same as or lower than the Stop Price.

b) Buy Stop Limit
This is the stop limit order when you have a short position on a security.
In this case, the Stop Price is placed above current market price of the security, and the Limit Price should be placed at least the same as or higher than the Stop Price.

Characteristic & Risk of Stop Limit Order:
Stop Limit Order will remain inactive until the Stop Price is passed. Once the Stop Price is passed, the order will be activated as a Limit Order to buy/sell at the specified Limit Price or better.
Therefore, the advantage of Stop Limit Order is that it provides control over the price at which the order will get filled (i.e. at the Limit Price or better).
However, the disadvantage is that a Stop Limit Order may never get filled if the market price is worse than the Limit Price. As a result, the position can continue falling with no more protection for the position. This makes a Stop Limit Order a very insecure stop loss method, particularly for the extremely volatile stocks that often experience a gap up or gap down in prices.
Due to this risk, using Stop Limit Order to protect a position is not advisable.

Example:
Suppose a Sell Stop Limit order were placed to protect a long position on an option with a Stop Price at $2/contract and Limit Price at $1.5. The current market price is $2.5/contract.
This order would remain inactive, unless the price reaches or drops below $2. When that happens, the order would then turn into a Limit Order.
As long as the order can be filled at $1.5 or higher, the order will be filled.
However, in case the market price gap down at $1 and then continue to fall, the order will not be filled.

The Difference between Stop Limit Order and LIT Order:
Stop Limit Order is actually quite similar to Limit-If-Touched (LIT) order.
The difference between Stop Limit Order and LIT order is basically on the placement of predetermined price that triggers its execution (i.e. “Stop Price” for Stop Limit Order and “Trigger Price” for LIT Order) and Limit Price relative to the current market price.

* For Sell order, the Stop Price & Limit Price for a Sell Stop Limit Order are placed below the current market price, whereas the Trigger Price & Limit Price for a Sell LIT Order are placed above the current market price.

* For Buy order, the Stop Price & Limit Price for a Buy Stop Limit Order are placed above the current market price, whereas the Trigger Price & Limit Price for a Buy LIT Order are placed below the current market price.

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Understand The Various Economic Indicators To Drifting Success In Forex

Understanding the various economic indicators is valueable to drifting success in forex that have daily fluctuation.

1) Current Events: Whether the economy of any particular country is showing decline or improvement can be detected from economic reports released at scheduled times by the government. When analyzing an opportunity to invest in the Forex, experienced Forex traders always focus on current events and the state of the economy as the top indicator. Unemployment figures, housing statistics and the current state of affairs all affect the prices of the Forex.

2) GDP: Another economic factor widely used when analyzing the Forex is the GDP or the Gross Domestic Product. This is the broadest measure of the economy of a country. The GDP is composed of the total value of all goods and services produced within any given country, usually measured in the one-year time frame.

3) Retail Sales Reports:This is not the sum of all retail sales, but is basically random samples from various retail stores throughout the country. It is considered the most reliable economic indicator because you can detect consumer spending patterns throughout the year from the retail sales reports.

4) The Industrial Production Report: This is another reliable economic indicator which shows changes in production outputs in industries such as factories, mines, and utilities. The report compares what is actually produced with the production capacity over a period of time. When a country is producing at its maximum capacity, this will definitely affect the Forex and is considered ideally positive for Forex traders.

5) CPI: The last but very vital economic factor is the Consumer Price Index or the CPI. This reflects the changes in consumer goods prices in 200 categories.

As you can see, the Forex is affected by many factors. Some are positive while others are negative. To make money trading Forex, you should understand them thoroughly and take these indicators into account for accurate Forex predictions.

Keep on learning and keep on making money trading Forex.

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5 Quick Tips To Make Trading as Your Daily Income

The real meaning of day trading comprises mainly of buying and selling of financial equipment on one day duration of trade. Unlike the long-term type of investment, day trading offers almost limitless opportunities for investors and promises immediate results, that is, of either profit or loss. In addition, this is again that kind of business wherein fortunes are made or dreams are shattered on a daily basis. So with that, it is very important for investors like you to have what it takes to succeed in this kind of trading, and enjoy great benefits it offers.

Given the moniker as "adrenaline junkies", and better suited for it for good measure, investors in day trading have found the necessity of mastering two or more of the strategies when it comes to dealing the business in the stock market. As implied above, day trading has its good share of advantages and downsides. And the amount of success, or bereft of it, will be determined also by the amount of effort you exert in preparing yourself by learning the proper techniques and applying the right strategies during a day trade, which can help you in making calculated steps in all your investments in the stock market. Yet again, it should be said that there have been many people who have made a good living in day trading, and even earning millions of dollars out of this kind of trade.

That said, this article provides you now the 5 invaluable quick tips on how to day trade for a living, which can certainly serve you as an excellent guide in getting the best return in your investments. The following are:

1. Trend Trading
It incorporates the idea of supporting the stock, commodities, or options that are on the rise by buying them, or selling those that are on the decline in the market. Day traders would make the trade by following the trend of the day, and would eventually exit the trading platform when the trend changes course. This technique is said to have developed out of common sense among investors and work effective to some investors.

2. Contrarian Trading
As the term suggests, this second tip is the exact opposite of Trend Trading. The investors use this strategy by buying financial equipment that are on the decline, and selling those that are on the rise. This technique is all about good timing, anticipating the reverse of trend in the stock market.

3. Channel or Range Trading
Traders use this strategy by buying stock that are at their low prices and short selling stock at their high prices. This move will allow some balance in the stock market by supporting financial equipment that is falling.

4. Scalping
Scalping has been referred to before as spread trading. This strategy involves taking advantage of some price gaps that have resulted from bid-ask situation, exploiting profit opportunities while minimizing the risk of loss. The main idea of scalping is to take advantage of some imbalance in the market and make good investments out of it.

5. Trading Rumors or News Playing
This is the most common strategy used by many investors. Day traders have been using this technique as basis of their investment decisions in day trading. It suggests the idea of playing with available leads that are currently happening in the stock market, and making decisions based on some good trading rumors or on bad trading rumors.

Finally, like any business endeavors, the present risks in day trading can be aplenty. But how one deals with the risks can make the big difference of either great rewards or enormous losses. Furthermore, you need to have a good plan on when to make your entry trade or exit trade, and a good strategy or strategies before entering any trade. Those aforementioned quick tips and techniques have been developed to help you make the most out of day trading. Moreover, the other key to ensure your success in this field is the due-diligence that is required from all of us in the business.

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