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Monday, August 31, 2009

Winning In The Stock Market

By Sean Phelps

Professional traders kill amateur traders in the stock market with double top and bottom patterns. Do not be another victim. In fact, after reading this article you will be able to get the revenge you deserve.

Every rally in the stock market reaches a point where enough bulls look at it and say"I've made a lot of money, and I might make even more money, but Id rather take my profits off the table. Charts top out when enough bulls take their profits, while the money from new bulls is not enough to replace what was taken out.

Traders who just bought the stock are pissed off because they came to late. They are trapped, sometimes even in a Bearish Island Reversal. Should they just stay in the stock and hope it comes back or sell for a loss? Well, the stock will keep dropping until enough bulls decide that the stock has over extended itself on the downside. So as more and more of these bulls step in, the stock begins to rise and the rally continues. Now when the stock finally rises back up to its previous high, you can expect sell orders to hit the market as those who were trapped exit their positions.

Many battle scared traders who got caught in the previous decline take a blood oath to get out if the market gives them a second chance.

At a market bottom, bears start covering their short positions when a new low is formed. Once the rally from short covering ends and the stock continues to fall, the question becomes will the previous low hold. If bears (fear) are stronger than bulls (greed), prices will fall below the previous low and the downward move will keep on going. If bears are weaker than bulls, the downward move will stop near the previous low and create a double bottom bounce. Use your other favorite indicators to decide which of these events is more likely to happen.

When a stock climbs to old high, you need to ask yourself will the stock breakout above that high or turn down and form a bearish double top pattern. Your favorite technical indicators like the MACD, RSI, and volume will help you answer this question.

If the volume, RSI, and stochastics start falling as the stock approaches its previous high, then it is likely that a double top pattern will form.

A double bottom is most likely to form if the MACD and volume start rising when the stock hits its previous low. - 23162

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Wall Street Insider Reveals Stock Market Trick That Spits Out Money!

By Lance Jepsen

The closing price is more important than the opening price. Knowing this can give you a serious advantage over most other traders. I'm going to show you how to pull profits out of this truth like money being spit at you from a broken ATM machine!

Let's begin.

The closing price reflects the final consensus of value for the day. This is the price most people look at when they get off work or when they print their daily charts at the end of the day. It is especially important in the futures markets, because the settlement of trading accounts depends on it.

Professional traders trade throughout the day. Early in the day they take advantage of opening prices, selling high openings and buying low openings, and then unwinding those positions as the day goes on. Their normal mode of operations is to fade"trade against"market extremes and for the return to normalcy. When prices reach a new high and stall, professionals sell, nudging the market down. When prices stabilize after a fall, they buy, helping the market rally.

Amateur and non-professional traders have very different trading patterns than those of professional and institutional traders. Amateur traders make up the majority of market participants at market open. As the day goes on, they slowly subside until all that is left at the end of the trading day are professional and institutional traders. Most amateur traders put on a trade at market open, before work, and then don't check it again until after market close.

Knowing this is a huge advantage! Why? Because it means that closing prices reflect the opinions of professionals. Look at any chart, and you will see how often the opening and closing ticks are at the opposite ends of a price bar. This is because amateurs and professionals tend to be on the opposite sides of trades. You want to trade with the professionals, not against them.

Let's say a stock you are long in goes up to its day's high at market open and then drops the rest of the day and finally closes near its day's low. You need to close out of your short term position. Why? Because this gives you a signal that professional traders are fading against your long position. - 23162

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Do You Have The Forex Traders Mindset? (Part I)

By Ahmad Hassam

Human beings are emotional creatures. It is often said that we are our own worst enemy. In forex trading, this is the ultimate truth. Most of our trading decisions are guided more by emotional than logical thinking. Our mind is capable of playing emotional tricks on us.

Emotions can work against us. Emotions can work for us. Your battles are won or lost in your mind first. Victories are won and lost in ones mind. We can get seduced into unfavorable situations by our emotions. A traders mindset is the most important ingredient of success. If you have the mental strength to control your emotions, you can become a consistently profitable trader.

Do you have a strong desire to succeed in forex trading? Forex trading is not for everyone. If you just want to try your luck or dabble in trading, you will end up like the majority who end up losing their money. Do you have the passion for trading forex?

You must be highly self motivated in order to become a successful forex trader. Are you ready to devote a lot of time and effort into picking up the trading skills and knowledge? You must have a concrete plan of action and not be afraid of failure.

You cannot succeed without knowledge and skills. If you want to succeed at anything, you should immerse yourself in that thing. Learn every nitty gritty. This is the only way to succeed. So you need knowledge and skills in trading currencies in order to become a successful forex trader. To attain consistent success in forex trading, a huge amount of time, effort and money is required for a trader.

Are you willing to accept losses as part of trading? You are going to make mistakes while trading. Do you understand that you can suffer losses in trading? Are you willing to learn from your mistakes? Do you have a traders log that you use to reflect on each lost trade and learn from it?

Most of the new traders read some market analysis from an analyst and enter into the trade on his/her recommendation. If the trade turns out to be a loser, most of us tend to blame on the market analysis. It is easy to blame others.

But is it fair to blame someone when you could have done further market analysis on your own. It is foolish to blame others for your mistakes when you could have planned your trade in a better way. Dont be trigger happy? Only pull the trigger when you are confident that you have done your analysis to confirm what others are saying.

A trader is constantly under the influence of fear and greed when trading. Fear and greed are the two most important and dominant emotions that affect not only the individual traders but also the currency markets. In fact, these two emotions are the main drivers of the forex markets. Can you be greedy when others are fearful? Do you need to be fearful when others are greedy?

Greed is going to make you over optimistic in thinking that a currency is going to appreciate. Similarly fear makes you over pessimistic about a currency pair. All in all, fear and greed are behind the steering wheel of the currency market. - 23162

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Financing Your Real Estate with Vendor Take Back Mortgages

By Dave Peniuk

A VTB or Vendor Take Back, is simply where the seller (Vendor) of a property is willing to provide some or all of the mortgage financing on that property. As a real estate investor, I ask for a VTB on most deals. Even if it's only a smaller 2nd mortgage, it doesn't hurt to ask if the vendor would be willing to carry the mortgage. There are significant benefits to both parties. And that simple question could provide you with an additional $5,000 - $10,000 in financing just for asking!

As long as you aren't over-extending yourself too far, then using other people's money is a great way to use leverage and enable you to buy other properties. Or, to have money left over to renovate, refurbish, or spend on marketing to rent out your new purchase.

For you, as the purchaser, there are other potential benefits from obtaining a VTB:

- Normally, there is no pre-payment penalty if you pay off the mortgage early (as with bank financing);

- Vendors rarely ask for all of the documentation that banks require so it makes it quicker and easier to finance your property; and

- The mortgage, and it's value, will not show up on your credit score as is now becoming more common with the big banks and credit unions.

For the seller (vendor), the benefits of a VTB include:

- By offering financing on the property, a way has been found to make a difficult deal or a distressed property more attractive to an investor ;

- By charging a higher than market value interest rate and collecting it back over time, the vendor could make considerably more money on the property;

- Even after they've sold the property, it continues to provide monthly cashflow;

- Currently, a vendor with a VTB can obtain a 5% or higher interest rate return on their equity in the property (the % will depend on the structure of the deal) rather than putting that money in the bank and getting a 2% or 3% savings interest rate;

- The mortgage is secured against the property so the absolute worst thing that can happen to the vendor is that they will have to foreclose on the purchaser and they will get their property back (if it's a first mortgage).

In most cases, your real estate lawyer will be responsible for creating the VTB documentation. Be sure that your lawyer has also thoroughly reviewed the Purchase and Sale Agreement and the mortgage documents (and all associated conditions). It is also a good idea to discuss with the vendor whether the term can be extended when it comes due. - 23162

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Investor Visas; How to be Eligible

By Sam McDougall Turner

Moving to the states can be a daunting and overall difficult process. Being granted a visa is not always straight forward either, however there are a few ways to improve the chances of your application being successful. Probably the most common way to achieve this is by choosing an investor visa. There are two kinds, temporary and permanent.

The temporary investor visa is called the E-2.

The E-2 visa is commonly referred to as the temporary green card. This is because there is no top-end limit to the visa term and so extensions and renewals can be applied any number of times providing the conditions of your visa are still met.

The purpose of this visa is to allow foreign people who have invested considerable amounts in the US to relocate there to further develop and run the business or businesses that they have invested in.

You may be eligible for this visa if you are the investor, or if you are an executive, manager or essential employee of the foreign company that made the investment and you and the major shareholders of the company are the nationals of a country that has an ongoing Treaty of Trade, Friendship and Commerce with the United States.

In the case of executives and corporate personnel, only nationals from the same country as the corporation are eligible. You will have to show that an investment in the United States has already been made, or that your company is actively in the process of investing. Therefore if you possess significant financial assets, the E-2 visa may be for you.

In short, the E-2 visa is most suited to those who are looking to invest a considerable sum of money in order to purchase all or part of an existing company, or to set up a new company. As the investor is expected to take an active role in the direction and management of the business, the E-2 visa is not suitable for silent investors.

Because investing in a US business and getting a visa is so uniquely complex, in order to ensure that your investment qualifies you for an E-2 visa, it is advised that you should seek competent, professional legal advice before investing. In order to get the best advice, you should contact a recommended business broker that has knowledge and experience in the criteria needed in an investment to make you eligible for an E-2 visa. - 23162

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