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Trade Stocks Online

You want to learn to trade stocks online?

For those new to stock investing there are steps you should take if you would like to begin trading stock online. Of course education is the key and you should begin by researching the different stock exchanges as well as the basic stock market terminology.

In today’s article we discuss step the new stock trader can take to begin to trade stocks online.

  1. Understand the difference between technical analysis and fundamental analysis. Investors will typically practice one of these types of analysis but it is important to understand both types. Long term investors typically follow fundamental analysis while short term stock traders practice the methods associated with technical analysis. In today’s article we focus more on technical analysis for those investors who want to trade stocks online.

  2. Research the different types of technical indicators if you opt to practice short term trading.

    1. Fibonacci trading - Fibonacci numbers are a sequence of numbers and each successive number is the sum of the two previous numbers. When used to trade stocks these numbers anticipate changes in trends as stock prices tend to be near lines created by the technical analysis Fibonacci studies.

    2. Moving average - The moving average (MA) is a technical indicator used in technical analysis that shows the average value of a security's price over a set period of time. They come in many forms, but the general use is to track the trends of financial assets by smoothing out the price fluctuations of daily price data, otherwise referred to as "noise."

    3. Trend trading - Trend trading is an investment strategy that tries to capture profits through the trend analysis of momentum. Trend trading still takes into consideration the market price, volume, and risk reward ratios and it uses technical indicators such as the moving average to determine overall direction.

    4. Candlestick Analysis - Japanese candlestick charting is based on the concept of technical analysis and is considered to be the most visually appealing and helpful type of stock chart. Candlestick charts display the open, high, low and close data points for the time period that you choose to display. These types of charts provide the investor with a way to easily see the relationship between the open and close in addition to the high and low.

  3. Know how to read stock charts and the different types available to you in order to trade stocks online.

    1. Bar chart
    2. Line chart
    3. Point and figure chart
    4. Candlestick chart

  4. Create a trading plan

    1. Document your daily trading strategies

    2. Set entry and exit points

      1. Stop loss orders - An order (instructions to your stock broker or pre-set in most trading platforms) to sell your security once it trades at a set price. If the price never falls to the stop loss, the order will not be executed.

  5. Practice Paper Trading - Online paper trading is different than live trading because with paper trading, there is no real money involved. The transactions are imaginary and the new investor can afford to make mistakes. Many
    investors believe that if you cannot learn to properly paper trade, then you will be unable to make money trading stocks.

  6. Begin stock trading!

Market Direction:
  The summer doldrums may be helped along by the investment community not knowing what the results will be in some of these bills that are being passed in rapidfire by our Congress. Today's action created Doji's in both the Dow and the NASDAQ. This has allowed the stochastics do get well into the oversold conditions. There is a good possibility of a reversal. That needs to be confirmed with bullish trading tomorrow. Bullish trading followed by a strong close is the confirmation of a Doji. Otherwise, the downtrend will remain in progress until there is a candlestick buy signal with bullish confirmation and a close above the T-line.

The summer doldrums provide investors with the opportunity to further their education of profitable investing without the markets moving to strongly in one direction or the other. The Candlestick Forum in providing trainings that should be definitely considered.

Day traders and swing trader's - Saturday July 11, 9 a.m. Eastern time - Profit Scanning Software training - For many years investors have asked whether there is a good software program that identifies candlestick signals. Unfortunately, until now there has not been a software program that was put together with the right parameters. Candlestick signals require other indicators to make them work correctly. The Candlestick Forum has been working with a software program that has now reached the point where it can be highly recommended to investors. The Profit Scanner has now been developed using the signal formulas and the proper confirming indicators. This is a very powerful software scanning/alert program. For the daytrader and the short-term swing trader, this program provides instant alerts for when a signal or a pattern is starting to confirm. The Candlestick Forum puts out two to four stock picks every day, depending on the direction of the market. However, for the active trader, there are numerous trade setups that can be exploited every day . The Profit Scanner becomes a valuable tool for indicating when those trades should be executed. Join us this Saturday morning for a free demonstration on how Rick has used this program to make a very profitable income. The pass code will be the same as our free sessions on Thursday nights, c123.

Chat session tonight at 8 p.m. ET - guest speaker - Martin Thomas providing valuable insights into the correct psychology for investing. Investing is a three-legged stool. First you need the correct trading program. Obviously, candlestick analysis provides a high profit trading program. A good scanning program, such as TC 2000 or the profit scanner is vital aspect to getting into and out of trades at the correct time. But the best programs in the world are useless if you do not have the right frame of mind/psychology for investing profitably. Come join us tonight as Martin Thomas presents elements of investing with the correct investment psyche. Click here for instructions.

Good investing,

The Candlestick Forum Team


Candlestick Trading Forum