Why Investing Online Is The Way Of The Future

By Julie T Anderson

You have some money to invest. But you don't want to spend a lot of time meeting with or selecting a stockbroker. Should you invest your money online? Is an online brokerage house the right choice for you?

Several online brokers dot the Internet today. They offer consumers the chance to quickly open accounts and begin investing their money in the stock market. Most charge low commissions. And most sites are easy to use.

That doesn't mean, though, that investing your money online is the right choice for you. While working with an online brokerage house works for some investors, it's not ideal for others. You'll have to gauge your own comfort level with the process.

You can ease any concerns you have with investing money online by doing some simple research. The best place to start is with the financial press. Financial print magazines and Web sites often contain rankings of the top online brokerage houses. Working with a top-ranked online broker can help ratchet up your comfort level.

Of course, this uncertainty doesn't bother the many consumers who have invested their money online. They're more interested in the ease and convenience of simply using their computers to invest their extra cash. They don't want to spend time meeting with a stockbroker.

That's why it's important to only do business with online brokerages that have earned a reputation for engaging in honest and ethical business practices. Read the financial press. Visit Web sites devoted to consumer interests. And when you do, read up on the online brokerage houses. It's not difficult to find reputable Web sites and magazines that provide annual rankings of the top online brokers.

Talk to any friends, family members or co-workers who've invested money online. Find out from them what brokerage they used. Were they satisfied with the service they received? Did their investments pay off? Was their online brokerage responsive if they had any questions?

Make sure, too, to only invest your money online with a Web-based brokerage that you've heard of. You don't want to take a chance on investing with a company that may be inexperienced or teetering on going out of business. Instead, go with the established online brokerages, places such as Etrade and Scottrade.

Investing your money online is fast and easy. Online brokerages also tend to charge relatively inexpensive commissions. But that doesn't mean that online investing is for everyone. If you're simply not comfortable investing your money online, meet with a traditional stockbroker instead. - 23210

About the Author:

Spare Dollars is a save money blog featuring advice on how to save money, making money and how to invest money. For more advice on these topics, including how to invest money online, check out our site today at SpareDollars.com.

Do Your Trading System Include Sound Money Management?

By Maclin Vestor

How to manage money when buying stocks, futures, or options -- what you must know before you buy.

Many people have a very crucial problem, they take on more risk than they can. It really doesn't matter if you're very young, if you take risk to the extreme and continue down that path, you will by mathematical law in all probability lose money.

Lets say you had an almost sure investment that was 85% likely to succeed. When it succeeded you double your money. You put all your money on it. The problem is, when the investment fails, you lose everything. Now it is just a fact that you will eventually lose everything if you continue to invest everything. You only need one trade and you are wiped out completely. Now, even if you invested 90% of your money on an investment that would win 80% of the time, you still are taking on too much risk to win in the long run. If you lose once, you will need a 1000% return just to get back to even. That simply will not happen forever, and even if it did, the large loss would limit your potential for gain so much, that you'd be better off not taking on the maximum risk.

Now, your risk of losing everything can never be completely 100% eliminated, even with conservative strategies. If you flip enough coins, eventually you'll get a very rare event such as 100 heads in a row. However, you'll also get 100 tails in a row. The idea is that you have a strategy that yields you more when you win, and/or wins more than it loses. in this case there will be several losses in a row, but there will also be several wins in a row. If you manage your money properly, you will still have enough money if you get several losses in a row, to be able to more than make up for it when you get several wins in a row. If you are forced to limit the amount of capital after so many losses, that you cannot invest with the same amount after the losses, you may be unable to win enough to make up for those losses. The idea is to keep your investments small enough to limit the chances of that happening. Although almost nothing is a sure thing, by using proper money management, you tip the odds in your favor.

Even if you have a profitable method, if you do not manage your risk, your profitable method becomes unprofitable. It's not usually the investment vehicle, it's the investor that ultimately determines how quickly you fail, and ultimately whether you are able to succeed. Under the same context, it's not usually the type of car, but the driver that determines whether you cause an accident. In order to protect yourself, you must keep your positions at a manageable level, and make sure to keep yourself limited by these rules that will limit your risk of ruin and keep the odds in your favor so you can stay in the game.

So how exactly does one manage money in a trading system? You need to determine probability of a move taking place. If you buy OTM option, the stock will have to move larger for success to occur. Of course if it does, the reward will be greater. There are probability curves based on a random walk theory that will assist you in determining the probability of a move taking place, until you know any better, use these. However, you also should use your own records of your system Determine both your risk/reward (your average % win divided by your average percentage losses, and in addition figure out your likelihood of success. When you do this, you can use what's known as the Kelly Criterion By using the formula as follows Kelly % = W - [(1 - W) / R] Kelly % = The maximum percentage of your capital you should invest per position. W = Winning probability R = Win/loss ratio

A trading system that contains good money management rules will not only outperform one without, but it will also help protect your capital, and keep you in the game. - 23210

About the Author:

Maclin Vestor teaches about variousstock trading systems and soon will teach you aboutforex trading systems in addition to stock trading.

I Use Forex Expert Advisor Reviews To Help Me Be Successful

By Jason Gorka

One useful resource that is available to you, the hopeful forex trader today is the forex expert advisor review. If you are taking a look at trading in the forex or perhaps improvement your method, efficiency and profit in your forex trading by giving a trading robot a try on the Metatrader 4 platform, you would do well to look at forex expert advisor reviews.

If you are going to trade the forex by hand, in other words without and expert advisor or robot, you will have a to be studying charts technicals graphs and other information on a consistent basis. It in point of fact is very time intense doing that technical analysis. On top of that, the foundation for your examining all of this data is your methodology or system to make a profit in the market. The inspired flash of genius that gives you a process to extract profit out of the market is the key. Without that as the foundation, what is your analysis based on? It could be that you do have a method though, that you have read or bought somewhere, even then doing the calculations can be overwhelming.

Trading the forex can be a a very lucrative and even fun, but it is not the most natural skill to learn. To be truthful it can be very tough to learn for many people. In a nutshell, don't think that making good money in the forex is a simple matter of giving your money to a broker and raking it in.

The beauty of using an expert advisor or robot is that the EA (Expert Advisor) will do all of the computation, open and close trades, and hopefully make a profit for you if your trading system is good. You are still in control though, you set up the expert advisor to do what you tell it to do.

Of course, the key again is the way. There are dozens of systems and expert advisors out there with various degrees of success. As a beginner you may want to find an expert advisor that is simple and straight forward to set up. Of course it would be no good to you if it is simple to set up, but doesn't make any money. You may want to make the effort to get a good profitable expert advisor and learn how to use it successfully.

If you have a preferred trading style, you may want to find an expert advisor that fits in with your trading knowledge. Forex expert advisor reviews offer a superfluity of helpful knowledge for finding a trading robot that makes sense to you and your strengths and weaknesses. Look particularly at the results that usual individuals are having when using the expert advisor you are thinking of.

Expert advisors only do what they were programed to do. It is a tool to make your trading more efficient. Of course efficiency can easily go both ways, you can lose money very efficiently. Always remember trading the forex is hazardous. Only put the money that you can afford to lose in any investing or trading medium, including the forex markets.

For picking an expert advisor or trading robot, using forex expert advisor reviews are a great means for picking up advise and knowledge about not only which expert advisor is the good one for you, but comparisons and how to use the EA successfully. - 23210

About the Author:

Author: Jason Gorka has traded the Forex and other markets for years. He loves the markets and the life it gives. To read more from him just go to TurboChargedIncome.com. Look at this article at Forex Expert Advisor Reviews

Beating Automatic Forex System Trading

By Bob K. Drummond

If you have an interest in Forex Trading or Forex Robots and have been surfing the web on this subject, you have certainly seen FAP Turbo advertised and noticed all the excitement surrounding it. It uses 2 strategies to maximize profits: the short term scalping strategy and the long term advanced FAP strategy. The initial thing to keep in mind is that the software doesn't perform the work of generating signals for you, but rather it is an autopilot trading Forex robot.

We can learn reliable information about it from a number of sources:

1. Automatic Forex system trading experiments conducted on back data over a number of years showed that FAP Turbo delivers profitable outputs over time. You can make money no matter how small your account is. In fact you can start with only $50.

2. FAP Turbo was run on real accounts. When you plug it into the Metatrader4 platform, it begins the evaluation of the market for you, it will place trade for you automatically once it discovers a money-making trade. Developers of FAP Turbo use REAL LIVE trading results to prove that their robot makes money, doubling, tripling and quadrupling the money in your account. This alone is a huge thing in the success of this robot as most other products post the results of back testing, which are based on "what if" scenarios and vary under different market circumstances.

3. This software uses complex algorithms to manage stop loss and maximize profits. FAP Turbo is designed to give serious investors who are afraid of high-risk trading a piece of mind by implementing a highly effective Stop Loss Strategy.

While it is true that you can get rich overnight trading Forex, doing so would be financial suicide. I know what the official website says but this may not be the case in each and every month and may depend on how much money you trade as well as other factors. Professional traders and banks always manage their risk and so should you. There is no zero risk trading.

Automatic Forex system trading is not perfect, and it is possible that you might lose trades once in a while but I know for sure that the earnings with FAP Turbo will be bigger than the losses it makes. That is the way forex works, losses and gains and I know you will agree with me that there is no Forex trader that doesn't make losses. Its 60-day money back guarantee, gives you the opportunity to buy the robot, test it with fake money on a demo account for about a month and return it if it doesn't deliver the results you were hopeful for. - 23210

About the Author:

Bob K. Drummond is a successful currency trader. To find out more about FAP Turbo, visit http://fapturbo.iiqtec.com.

Triangle Formations (Part II)

By Ahmad Hassam

What is the crowd psychology behind a descending triangle? Every time the currency price goes down to a certain level that forms the support there are buyers who want to hold that level stubbornly for their own reasons. Buyers thus push the price up each time the support level is tested. Spotting a descending triangle in a downtrend signals the downside breakout of the support level.

Sellers are quite anxious to sell as they feel that the currency price should fall over time. Thus when the price bounces off the support level, the bears take the opportunity to short again.

Spotting a descending triangle should allow you to be prepared for a downside breakout from the support level especially if it is a down trend. Bulls and bears face a skirmish with both camps not feeling confident of the next market move as with an ascending triangle.

When the support level is broken, many of those long positions which have been placed above that level soon get stopped out. Prices tend to break in the middle or the final third part of the triangle formation.

It tends to give off even more bearish vibes than if it is formed during an uptrend if the descending triangle is formed during an existing downtrend. Unless you have reversal signals in the form of technicals or turn around of the market sentiment, you should always assume the continuation of the prevailing trend.

If the descending triangle appears in the midst of a downtrend, the triangle serves as a continuation pattern. A descending triangle should not be considered to be the final word on impending downside breakout. However, with that said prices also sometimes breakout from above the descending triangle successfully in a burst of bullish momentum.

Symmetrical Triangles: There are no horizontal lines in symmetrical triangles. This differentiates it from the ascending and the descending triangles. A symmetrical triangle consists of two converging trendlines that join a series of lower highs and higher lows. A symmetrical triangle has some resemblance to a wedge pattern.

The lower highs reflect the mildly bearish conviction of the sellers as they are willing to accept less and less of the price over time. The higher lows are formed when buyers of the currency pair are willing to pay a bit more to get a piece of action.

A symmetrical triangle tends to be less reliable as compared to an ascending or descending triangle. There is no way to predict the future breakout direction until one of the symmetrical triangle lines is penetrated. As with the other sloping triangles, breakouts usually occur in the middle or the final third of the triangle.

You should always consider other pieces of information so that you can better pinpoint a higher probability trade set up when trading triangle breakouts. Decreased volatility can also be detected with the exponential moving averages and the Bollinger bands besides the triangle formation. - 23210

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know These Forex Charts. Learn Forex Trading!