Getting to Know Momentum

By Chris Blanchet

Many investors will confuse a trendline with momentum. However, as an event derived from astute technical analysis, Momentum tells investors a lot more than a cursory glance at a security price's trend line. Using technical analysis and technical events like Momentum, investors are able to determine whether a price is likely to continue its trend or reverse and head the other way.

Understanding Momentum In some ways, Momentum is very similar to the MACD oscillator as it measures how much change a security's price has seen over a predetermined period of time. Understanding how technical analysis works on an unbiased, statistical level as well as using Momentum will allow investors to determine whether a systemic change in price is part of the normal up-and-down of the market, or if it is instead a strong bearish or bullish signal. Essentially, Momentum tells us whether a given price trend will continue or reverse.

More specifically, Momentum tells investors about the strength of the underlying price trend. Using this type of technical analysis allows investors to determine overbought and oversold conditions in a security and decide whether opening or closing a position is called for. Such decisions are normally impossible to make based on security prices alone.

Figuring Out Momentum When it comes to completing your own technical analysis, you may encounter difficulty or frustration with the sometimes complicated mathematical formula. Luckily with Momentum, the calculation is rather simple. To obtain a Momentum reading, you take the closing price of a security, divide it into the closing price from ten periods ago, and multiply it by 100. In other words: Close $ /(Close 10 time-periods ago) * 100].

Trading on Momentum Basing trade decisions on Momentum is quite simple. If the Momentum value is greater than zero, then a bullish signal is trigger; less than zero, a bearish signal is triggered. Investors should, however, be cautious in that extremely higher low values might not suggest a reversal but instead a continuation of the existing trend. For example, where investors are looking to sell, instead of trading on Momentum, investors should wait for the actual security price to begin its fall before committing to selling.

As with most technical analysis, investors should never base entry or exit points solely on Momentum. In many cases, Momentum can serve as confirmation of other technical events or even underlying security fundamentals.

As mentioned previously, many events triggered through technical analysis involve heavy mathematical calculations. For most investors who do not have the time or ability to complete their own mathematical work, trading software has evolved to the point where your computer will go so far as making simple buy and sell recommendations. Understanding technical analysis is one thing; completing the work is another. For most serious investors, trading software not only makes sense, but it improves profit. - 23210

About the Author:

Christ Blanchet has more than 15 years of experience as a Financial Advisor. His is the technical analysis and options contributor at Online Trader Today.com where free members can follow the Technical Analysis Series and receive a complimentary e-book on Option Sensitivities. He maintains a debt-free blog at How To Repay Debt.com

Top Share Builder Choices

By Anne Durrell

If you are interested in buying and selling stocks online or you just want to start it then you better check out share builder.

Many investors are interested to Share Builder since the website offers a different way to buy stocks that is simple and it makes sense.

Compare with a traditional broker, the share builder is easier and much cheaper, and they offer investors a different way than most online stock brokers.

You don't have to buy a minimum number of shares at share builder; they offer stock trades of any publicly traded company for only $4 for any dollar amount you want to buy.

Another good thing about share builder is that it does not require a minimum investment so you can start off at any level you feel comfortable with.

Other online sites require you to put a minimum amount of money in your account when you open it. This means you have to save before you invest. With share builder you can start investing straight away.

Since the $4 fee is the same no matter how much you buy, however, it is worth buying larger amounts at one time if you can because then the fee is a lower percentage of the overall cost.

It really makes sense to consolidate your purchases of the same stocks all together since the $4 fee applies to each different stock, not to the total purchase.

It would be much cheaper if you decide to buy $100 worth of a stock each week than purchasing $25 each of 4 different stocks each week for one month.

That way you will only pay $4 in a week fees instead of $16, which means you would've spent $48 more money by the end of the month. So, you're interested in stock market, try share builder! - 23210

About the Author:

Anne Durrell comes from Stockton, California. She has written a number of articles on online trading . Please also check out her other guide on online stock brokers tips, and forex platforms guide!

A Review Of Stock Assault

By Perry Jett

If somebody tells you that there is a software that can pick out stocks that you can safely and profitably invest in without any hassle of doing the research yourself, Im sure you wont be to keen about it. How much more if that same program promises to instantly increase your $500 to $65,000 in just a matter of months; I dont think youd take it very seriously at all.

There is a lot of biased publicity about Stock Assault, but this article will delve on exactly what the program is all about and what it is not.

Stock Assault is a program that you keep continuously running on your personal computer. The application collects circulating information about the stock market. It tries to grasp what traders are talking about and any evident trends. If it senses that traders are talking about buying or are currently purchasing particular stocks, Stock Assault will take that into account and include it into the assessment of that stock.

This program charts and compares values of stocks at exceptional speed. Once done, the program will give you its stock picks as well as exit signals once it assesses that the stock price will suddenly plummet.

Because of the very scientific approach that Stock Assault has, it is undisputed that the idea was conceived by professional stock market traders who have years of experience under their belt. But just because it wasnt made by budding amateurs does not mean that the program will not have its weaknesses. It is still a program which is not capable of giving out right on decisions when it comes to trading.

You should never expect the program to do all of the work for you. To some extent, you will have to make your own stock portfolio to corroborate the selected stocks of the program. Knowing that going through all company positions just to decide on which stock to bet on for the next trading day is painstakingly slow.

Having a software like Stock Assault make out logical choices for you is a net benefit at the end of the day. - 23210

About the Author:

Stop. Before you get stock assault wait and see my very truthful stock assault review this second

Doubling Stocks Review

By Chris Larker

It is a well known fact that the stock market is very fluid. Stocks prices can appreciate in the start of a trading day and then devaluate by the time the markets close. But the stock market has made millionaires out of ordinary investors who were savvy enough to play their cards right.

It takes a lot of work before you can have certain stock picks. You will have to conduct research on all the companies that have gone public, study closely how their shares have been faring, chart and compare so that you can build a reliable portfolio.

Remember that youll have to do these things continuously since the numbers change all the time. This is why investors seek help from Doubling Stocks.

To take advantage of Doubling Stocks like the plenty of investors who have done so out there, you will need to have a subscription to the newsletter which is emailed once in every week. The content of the newsletter includes trading signals and stock picks that are guaranteed to give you success.

The stock picks are generated by a robot named Marl. The creators of Marl are Michael Cohen and Carl Williamson. Marl generates these stock picks by collecting stock market data and assessing different trends and stock price changes. By doing so, Marl will be able to tell you which stocks to buy, until when their values must go up until you should sell the stocks and why you should sell.

To subscribe to the Doubling Stocks newsletter, you will need to pay a lifetime fee of $49.97. You may also avail of an eight-week trial if you want to take the service out for a spin before you decide whether it truly lives up to its promises or not.

If within the two months you are not satisfied with the results, you can have your money back.

A lot of users swear that Doubling Stocks have really increased their profits. There are even talks circulating in the internet of how the newsletter has already produced 13 multimillionaires.

Whether that is true or not, experts do agree that the program does give out reliable stock picks, although like any other program it is still bound to make mistakes and you may still lose some money along the way. - 23210

About the Author:

Don't purchase doubling stocks until you have seen my review now for the greatest review today

How Currency Trading Can Supplement Your Current Income

By Fred Todle

In the past, it used to be that only banks traded in forex. Others who did knew about forex were the large multi-nationals and a few well-placed currency speculators. These were also people who details and knowledge of foreign currency workings and trade. Given that scenario, regular individuals were practically locked out of the game. Because only large banks were associated with forex, people did not initially have a lot of interest in foreign currency trading. But now the trend is catching on with millions of dollars being traded every day, not by banks but by regular individuals.

Forex trading basically means trading in the foreign currencies of other nations. There is a lot of misconception regarding forex trading. Some people think the same precepts that apply to stock trading also apply to forex. This is erroneous. There actually exists a significant difference.

When we come to stock trading, the prices remain virtually the same. Forex trading does not work that way. The prices in forex actually differ. There are also different levels of access. This may sound confusing but in the forex world, those who control large sums of currency actually end up being the major players. These are allowed to actually set the controls and also the prices. That essentially means they have more clout than the rest of the traders.

There are misconceptions regarding how forex can help build wealth. This is really as complicated as it is made out to be. First of all, today we have forex trading software for trading in the forex market as opposed to regular means. Today ordinary people possess the same state-of-the-art tools that the major financial institutions use. The benefits of forex software cannot be overstated. It drastically narrows the learning curve. Now anyone regardless of previous experience can now conduct forex trades as easily as professional would. This software is also within the reach of anyone wishing to trade in forex. With expert tutorials, it bridges the gap between amateur and professional.

Because of the online forex tutorials that now exist, coupled with the fact that forex software is now available, it is now possible for ordinary people to build forex wealth. One need not work for the large banks or multinationals to get a grip on the whole process. One can easily and conveniently start trading from the comfort of their home.

Another aspect of forex which makes it even more convenient for the average Joe is that the amounts needed to start trading are minimal. With just $50.00, one can comfortably embark on forex trading. There is excellent forex training online that can guide one in the intricacies of the trade without using forex brokers. This is unlike the stock trade where there has to be market research before one even embarks on placing a buy. The stock trading is also characterized at time by high broker fees. - 23210

About the Author:

Author is writer and regular contributor to Forex Trading, a website with resources and information about forex market. One of the most popular post's caterogy there is Fx Trading Tutorials.