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$1.9 trillion daily, according to the April 2004 statistics of the Bank for International Settlements (BIS) study. It is composite of the following components:

 

1,300 billion dollars worth of derivatives (the generic term for currency trading investment from which its pay-offs over time are derived from the performance of assets and other factors such as interest and exchange rates or various indices);

 

1,000 billion dollars worth of Forex swaps (over the counter short-term interest rate derivative instrument)

 

600 billion dollars in spot transactions

 

 

200 billion dollars in forward contract (a contract between two parties to either buy or sell an asset at an predetermined future point in time); and

 

100 billion dollars worth of Forex option (an option wherein the owner has the right but not the responsibility of exchanging money denominated on a certain currency into another one are a pre-agreed rate of exchange within a specified date).

 

Another “largest” of the currency trading is in terms of the nature of participants on different currency trades. The trading includes large banking institutions, central banks, multinational corporations, various national governments, currency speculators, and other financial institutions and markets. Add to it the small retail traders which are also a part of the growing currency trading market.

 

 

 

 

 

 

 

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Given the massive cash value traded on a daily basis and the players within the market, currency trading also leads in terms of innovations. The growing number of players inside the market is attributed to the inclusion of Internet technology on the trading activities within the market. Thus, even in nighttime, you will be able to trade foreign currencies with other traders on the other side of this planet. Currency day trading is almost synonymous now to currency night market.

 

Currency trading over the Internet requires you to have compatible software to your online trading system. In most cases, especially when you sign up with a currency trading broker, they will provide you with computer software that you can use in executing various transactions and obtain market information. There are two major classifications of currency trading software—the web-based and the client-based.

 

The web-based currency trading software is not actually what you will install in your Internet-connected PC unit. Such software will run in your broker’s website and you only need to have a compatible browser installed in your computer system to access the software. On the other hand, the client-based software is installed directly to your computer system. In most cases, you will be able to obtain client-based currency trading software through downloading it on a broker’s website and installing it later on.

 

The basic currency trading software package will include real time quotes and information as well as letting you to enter and perform trades. In addition, it also provides up-to-date quotes for most foreign currency pairs and will let you to either close or open a position within market prices. Meanwhile, advanced currency trading software will provide you charting capability for your market analysis and evaluation.

 

Whether you prefer web-based or client-based software, just keep in mind that it will be of great help in achieving realistic generated revenue during your currency trading career.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Use FOREX Software To Increase Your Returns

 

 

 

The FOREX market has a vast range of attributes. It is the biggest market you can invest into, and sees 1.9 trillion US dollars of trade every single day, as quoted by a study from the bank of international settlements in 2004. It is composed of these characteristics:

 

A thousand three hundred billion US dollar derivative

 

Thousand billion US dollars of swaps in FOREX

 

Six hundred billion US dollars in spot trading

 

Two hundred billion dollars worth of forwarded contracts

 

Hundred billion US dollars FOREX options

 

 

Another major attribute of currency trading is the terms of nature of the participants in trades of different currency. Investors include major banks, centralized banks, multinational organizations, many governments, currency analytical speculators, and then the other financial organizations and markets. The smaller traders are becoming significant in their numbers as well.

 

Thanks to the huge amounts that are transacted every day on the market, currency trading is a forerunner in innovations of trade. Thanks to the Internet, many new players (smaller traders) are entering the markets every day. So you can even but and sell in the night, when it is day in another part of the world.

 

To trade using the internet you will need the right software to enable you to do this. Most of the time when you have the need for software , the brokers in this trade do provide you with the latest version of these software so that you can execute as well as get more in formation regarding the market moves. Two range of software are present in the trade, one is the version for client use and the other one is web use.

 

In the second type of software that is the web based software, reality is that the software is not installed in your laptop or personal use computer. But what actually happens is that the web browser for access of the software is what you get on your system and the broker has the actual software installed on his webpage. Well as far as the first software that is the client based one is

 

 

 

 

 

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directly on your personal computer or laptops. And you will not have to use through the brokers website.

 

Any software to start with will have the needed information so that you can start your trade and also will be provided with the present rate information. Also you can get the latest information regarding the cost of the various currencies presently in the market and also will be able to close the market and open the market at your price. Where as you will notice in those very latest versions of currency trading software the facilities to analyze what the market growth and downfall is.

 

What ever you choose either the client based software or the web based software all you will get is gains in your currency trading business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Charting And Technical Analysis: A Great Tool For Your Trades

 

Predicting the financial market’s future may sound impossible. But, what if you have the power to predict it or what if you have the ability to take a quick look of the financial market’s future?

 

This would be like a dream come true for traders. With this skill, it will be next to impossible for you to lose your investment in the financial market. Whatever it is you are trading, knowing about the financial market’s future would be like knowing when and what to buy and sell. With this kind of skill, you can be sure that you can acquire a lot of profit from the financial market.

 

However, you know that this is impossible. You don’t have the powers to predict the future. But, one great tool that you can use can be the next best thing in predicting the financial market’s future. This tool is called technical analysis.

 

Technical analysis is the art of studying charts and finding a trend in the past to predict the financial market’s future. Try to think of it as forecasting the market’s “weather” and know about the potential risk and potential profit that you can make in the future.

 

This kind of forecasting can act as a guide to your money making decisions. It will also act as a safety buffer in case you made the wrong decision.

 

With this kind of tool, you can really minimize the risk of losing money and increase your potential profit from a financial security that you are holding.

 

You should always remember that a technical analyst isn’t interested about a particular company’s profile when they want a stock. They are only interested about the price movement and discovering trends.

 

They base their analysis on charts and computations. If they see a trend in price movement, the resistance level, and the volatility, they will speculate on where the stock will move next. It may be next year, it may be next month or it may even be in the next few hours.

 

 

 

 

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The charts used in technical analysis can be a simple line chart, a bar chart and a candlestick chart. These charts are used to give the technical analyst the visual information and as well as the technical information in order for them to predict the financial market’s future.

 

With these charts, technical analysts can study a particular security and by basing on the past trends and past price changes, they claim that they will be able to predict the future of the financial market.

 

However, you should always remember that technical analysis isn’t always 100% accurate. It is even considered more of an art instead of an exact science. You should keep in mind that you shouldn’t depend too much on technical analysis. You should also do a study of your own. You can also trust that “gut feeling” you have whenever you trade.

 

Sometimes, that “gut feeling” can be right.

 

 

It is recommended however that technical analysis should be used as a guide to help you in your decisions in the financial market.

 

Try and study the findings first, review it, and determine what move you want to make in the market.

 

If you do it right, you probably can have a glimpse of the financial market’s future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Charting And Technical Observation Are A Great Boon To Your Stock Trade

 

It does sound impossible to predict a financial market or its outcome. Ever wondered how much money you could make if only you knew the outcome of the market movement at any given date?

 

That does sound like every stock trader’s dream come true doesn’t it. After all if you could do that you would never lose any money on the stock market. Whatever the level or department in which you trade, knowing the outcome of the market would pinpoint the time you need to buy and to sell, so as to make a maximum profit.

 

We all know that such dreams are only dreams and can never become a reality. But why we are talking about it is, you can get quite close to that dream. There is a certain tool you can make use of to get an idea of how the markets are going to move and it is the tool of technical analysis.

 

It basically deals with predicting the movement of the market based on its history, and keeping in mind factors like the month and general trends during the time as well. Sounds a lot like making a weather forecast maybe - but it does follow the same principle of making a future prediction based on past movement.

 

As far as stock predicting is concerned, this kind of planning and foresight could help you make a lot of good decisions and maybe even safely act as a buffer when at times you make a wrong decision. When you make use of such analytical thinking you do minimize the chances of losing money.

 

Keep in mind that with stock analysis you mustn’t let the company profile deter your judgment, you should only concern yourself with the movement of stock, not the nature of stock. So try and look at it objectively. But do remember when you here of a prediction of stock movement as a result of analysis, the predication does not tell you when the stock will move next. For instance, you may be expecting a stock to move up, but you cannot tell from an analysis if it will move up next month or next year or after two years.

 

 

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The predictions of analytical evaluation of the stock markets can be portrayed using normal graphs or candlestick graphs.

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