Stock Trading Software Can Give You an Edge

By Michael Swanson

While stock trading software has many benefits and advantages, you really need to have had some experience in stock trading and gained some basic knowledge to fully benefit from using it.

There are numerous advantages in using stock trading software. It helps you manage your stock portfolio, monitor your stocks and be in control of the risk reward ratios of your investments.

Being able to manage your emotions when making buying and selling decisions is critical if you are to avoid the mistakes that invariably follow making emotional decisions. Using software helps you to control your emotions when making trading decisions, and avoid the fear and greed emotions that distort your perception.

Stock trading software offers the investor great savings in time. The software can search through greater numbers of potential stocks in a shorter time frame than you could do manually. The software scans opportunities according to the rules and strategies you have entered, so you can be certain that its results will meet your criteria.

The software works very simply: using your own rules and criteria, it searches through investment opportunities to find stocks which are suitable. It then gives you buying or selling information to act on. You may place orders online using the software or do this manually. The reason you need some previous experience is because you need to enter criteria for the software to find stocks that are both profitable and adhere to your trading goals. Some understanding of technical analysis and basic concepts is therefore required.

When researching stock trading software, look for a program that fits your budget and pre-set goals. If you can try out your preferred software before you buy, that would be great. At least, go with a software program that comes with a money-back guarantee as a protection of your investment. - 23223

About the Author:

When it comes to stock trading software I personally use TC2000 to sort for stocks.

Macro Trading the Carry Trade

By Ben Summers

Macro traders trade virtually everything. They trade stocks, bonds, commodities, and currencies looking for uncorrelated trade ideas with great risk to reward characteristics. Sometimes they will even venture into markets like real estate and even art.

They trade not only different asset classes but multiple strategies within each asset class. For instance in stocks they will trade outright long and short positions, merger arbitrage deals, asset class arbitrage where you trade the equity against debt, and even pairs trading. They do much of the same in commodities and currencies as well. Essentially they are looking for sources of return wherever they can find it.

One of the best places for macro traders to really differentiate themselves from other categories is in the currency carry trade. While most people understand what a directional bet is, one in which you buy or short something and if it goes up or down you make money, many do not understand carry.

The carry trade consists of going long a high yielding currency and going short a low yielding currency to fund the trade. You make money in two ways. One is if the initial trade is profitable if the higher yielding currency goes up relative to the low yielder. The other way to earn money is to make money off the carry, or the interest rate differential.

To really juice the returns available from the carry trade you can and probably should use some degree of leverage. Some traders are modest and only use two to four times leverage while others are aggressive and use up to fifty times leverage. While high leverage is great when you are right they can be disaster when you are wrong as the losses are magnified on the way down just like they are on the way up. Of course is it that easy?

No, it is not. Yes, you can get the carry but if there is excess or even normal volatility depending upon the leverage being used you will blow up in traders terms. If this is the case, and it is, then what should a trade be focusing on when they are trying to execute the carry trade? Well the obvious answer is volatility.

You can use several different methods to estimate volatility. You can use the standard volatility index for the SP500. While it is designed and used primarily for equities it is a good estimate of volatility for most asset classes. Now days you can just use a currency volatility index like those from JP Morgan or many of the other investment banks.

If you are trading the carry trade then you should be using a volatility filter to greatly improve your results. If you are not trading the carry trade then you are also missing out on some great uncorrelated and relatively easy returns. And finally if you are not macro trading then you are missing out. You should be taking advantage of all the opportunities in the world and not just in stocks. - 23223

About the Author:

If you need actionable trading ideas then check out The Macro Trader It is a weekly global macro trading advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

Updates from a Forex Blog

By Bart Icles

As a forex trader, you might well be aware of the importance of being updated with the latest goings-on in the currency market. Indeed, changes happen every minute in the foreign exchange market that it helps to have up-to-date information on the market trends and conditions. Other than news articles on currency issues and updates, you can also learn more about these important details from forex blogs. If you look up a forex blog, you will notice that it contains valuable information for beginners. More often than not, forex blogs will also contain information that both beginners and seasoned traders will find helpful.

One such detail that you can learn more about in a forex blog is the vulnerability of currencies. It is not enough that you are familiar with the different currencies and their valuation. You should also learn more about the different factors that affect their strength in the market.

For example, there has been a noted decline in the power of the US dollar these past few weeks. If you try to check forex blogs, most of them will cover the different reasons why the US currency has weakened. There are those who say that the decline in the dollar rate is brought about by the rising oil prices that has somehow revealed vulnerabilities in the US economy. Pressures from the Federal Reserve also affect the strength fof the US dollar, as well as the growing consensus on whether or not central banks should start or continue to cut interest rates.

Forex blogs do not only feature news and updates on the US currency, it is also normal to see a forex blog highlighting stories on other currencies, such as the British pound and euro, as well as Australian, Canadian, and New Zealand dollars. Many foreign exchange traders are interested in these currencies because they tend to be strong and stable as compared to the US dollar. The British pound and euro are also valued more than the US dollar, although the US currency still remains as a universal trading denomination.

When you are after the latest news and updates regarding the variable forex market trends and conditions, you can either set your eyes on finance news broadcasts or you can look up a reliable forex blog on the internet. Keep in mind that when you are surfing the web for a forex blog, see to it that it is maintained by a reputable forex trader or someone who has advanced knowledge on the market. - 23223

About the Author:

Forex systems is powerful when coupled with a desire to learn and a drive to become a great trader. Learning forex online system trading takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Following Trends As A Market Strategy

By George Barr

Trend following is a stock exchange plan that takes benefit of both the swings and roundabouts of the market. It's a method that employs risk management to minimize possible losses. Traders who employ trend following enter the market after a trend has been established, they don't attempt to forecast trends. They work out how much to speculate in a specific issue based on the dimensions of the trading account and the stability of the issue.

Traders who use trend following use software that is programmed to exit when a surprising declining trend in their issue occurs. Then the traders wait to determine if the trend gets back on track before re-entering. It's truly about staying with an established trend and getting out if the trend changes direction.

Price is the 1st rule of trend following. Other indicators aren't important, although they're not completely disregarded. The second factor is the choice of how much to trade. The timing is less vital than the amount of the trade. Then there is the exit strategy. When to get out if the trade is unprofitable or if the trade is rewarding. Finally, you may set a stop loss for the maximum acceptable loss.

Trend disciples use software to back test a trade that's under consideration. They can then judge the strategy based totally on the test. The software evaluates various aspects of the trade under consideration. The trader can study the results and fine tune his approach.

One issue with trend following is the impact that unforeseen events can have on the market. Political upheavals, natural disasters and other events can effect the market in both negative and positive methods. When Hurricane Katrina cause massive damage to grease rigs and pipelines in New Orleans, the price of oil and petrol zoomed in the expectation of deficits. Even though no severe deficits happened, investors and trend followers, in both the exchange and the commodities market, kept the cost of oil elevated for months after the event.

The exchange is a gamble, though if you understand how to play the market, you get better chances than in Vegas. Trend following is one method which has proved successful for many investors, but it shouldn't be a trader's only strategy. By combining trend following with other proved strategies you will maximise your gains and minimize your losses. A various portfolio together with different strategies is the only way to beat the market.

I you do not have a plan and the right knowledge when you enter the market, you will pretty much certainly lose cash. Learn all you can and employ trend following along with other proved methods and you will make the best of your investment bucks. - 23223

About the Author:

Find more on trendfollowing and trend following.

Gold - The Best Option To Make Business Stable And Profitable.

By Noam Perez

Gold can be the best asset for the companies to invest in. Gold is a kind of asset, which always gives better returns when sold in open market. People started to trade gold long time back and the system was known as gold bullion system. Since then gold has been the most demanding metal for securing the savings of companies.

Nowadays, many of the western countries trade gold on a huge scale. In fact, Asian nations also also liberalized markets for gold trading these days. The gold trade between the Asian and Western nations plays a key role with respect to global economy.

Companies can easily trade in gold these days, as they have many opportunities under the gold bullion system to sell gold in the open market that will earn them a substantial amount of profit.

Today, it has become very easy for companies to trade gold. Companies have great opportunities in the open market that gives better return on the investment (ROI) with gold trading.

Gold bullion has the ability to give a company decent financial returns. In the modern economy, gold has got significant importance in relation to stock markets. Nowadays, the change in stock has direct impact on the price of gold.

As compared to the prices of stocks and commodities, gold prices do not fluctuate frequently. The decrease in value of gold is very nominal, but it increases on a faster pace. Companies usually trade gold in the form of bars and bullions or coins.

In addition, prices of bullions always undergo fluctuations and this is the reason why a company has to keep the tap over the requirements of gold to invest. On the other hand, if a company has to buy gold, then it is important to invest as early as possible, as gold prices are supposed to increase every now and then.

There are many companies, which are ready to buy gold from individual gold sellers to get the best rate. With the advancement in security market and stock markets these days, it is clear that gold is the best security that a business can have against financial crises, political instability and other risks. Thus, trade gold to make your business stable and profitable. - 23223

About the Author:

Prior to trying to buy gold, ensure to receive professional advice on profitable investment in gold bullion business.