Trading lesson – Oct-11-2019

A low-cost or cheap online trading is one of the topics discussed in every forum about online stock trading. Cheap stock trades are not only about commissions paid to swing or day trading online broker. Fees. I do not like them and surely you do not either but the price per trade is not the most important part of trading. The stock trade execution is one of the business costs and every business has its own expenses.

The most important low-cost stock trade rules are connected with risk management and money management generally. You have to understand that low-cost stock trade is trade with proper risk management and cheap stock trades are based on minimal risk. Do not remember that low-cost stock trade could be achieved only by keeping your losses small.

Find out how to make a low-cost stock trade for cheapest online trading.

Trading lesson – Oct-04-2019

One of the common questions I receive several times a year is “How to trade a stock breakout?”. Let’s talk about the breakout, trade, and strategy more today.

A breakout is when prices pass through and stay through an area of support or resistance. On the technical analysis chart, a break out occurs when the price of a stock or commodity exits an area pattern. Oftentimes, a stock or commodity will bounce between the areas of support and resistance and when it breaks through either one of these barriers you can consider the direction that it’s heading in a trend. Often the resistance level the price breaks through becomes a new support level, and vice versa. This can be a “Buy” or “Sell” signal depending on which barrier it broke through.

Breakout stock trading strategies are a good type of market strategy for online securities trading. Breakout trades could make very good profits if they are done and managed well. A breakout strategy is a good option, especially for traders that want to trade stocks from home. Check out how to trade the stock breakout.

Trading lesson – Sep-27-2019

Online trading platforms typically stream live market prices on which users can trade and may provide additional trading tools, such as charting packages, news feeds, and account management functions. There is always a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Some platforms have been specifically designed to allow individuals to gain access to financial markets that could formerly only be accessed by specialist trading firms.

There are many traders performing stock trade online every single day. Profitable traders have something in common. They follow very well defined rules. They have rules for almost every part of their daily trading activities. For them, it’s easy to make the best online stock trade.

Do you want to be a member of this group of winning traders? It is not complicated. You just need to follow four steps to make many very successful swing stock trades. Reveal the secret of these four steps and make the best online stock trade.

Trading lesson – Sep-20-2019

The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on. Its primary goal is to provide long-term funding for public and private expenditures.

Investment companies allow individual investors the ability to participate in the bond markets through bond funds, closed-end funds, and unit investment trusts. Exchange-traded funds are another alternative to trading or investing directly in a bond issue. These securities allow individual investors the ability to overcome large initial and incremental trading sizes.

There are several bond ETF shares available for active investors and traders. There are long ETFs, short ETFs and also leveraged ETF shares tracking fixed income products. All these shares offer good opportunities to participate in the fixed income market.

Read the bond ETF list with short fixed income ETFs.

Trading lesson – Sep-13-2019

Stock screeners are important tools for a technical trader. The best market screeners are based on simple rules formulated on technical analysis. You can use also parameters of fundamental analysis for parameters of your market screeners.

Fundamentally based best stock screeners are used mostly for longer-term investments. The profit, the growth, and the undervaluation are the most important values as they are based on a logic that each of these values could confirm the future rise of the share price for any company.

Probably the most popular idea of how to check company profits is the price-earnings ratio. The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company’s stock price to the company’s earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. The best stock screeners include such a value as well.

Check out my tip for fundamentally based best stock screeners.

Trading lesson – Sep-06-2019

ETFs generally provide easy diversification, low expense ratios, and tax efficiency of index funds, while still maintaining all the features of ordinary stock, such as limit orders, short selling, and options. Because ETFs can be economically acquired, held, and disposed of, some investors invest in ETF shares as a long-term investment for asset allocation purposes, while other investors trade ETF shares frequently to hedge risk over short periods or implement market timing investment strategies.

Active investors often look for best ETFs that could be used in some dividend based or high-yield based stock investment strategy. Stock dividends are those paid out in the form of additional stock shares of the issuing corporation, or another corporation. A high dividend yield indicates the undervaluation of the stock because the stock’s dividend is high relative to the stock price, particularly sought after by income and value investors. High-yield stocks tend to outperform low yield and no yield stocks during bear markets because many investors consider dividend-paying stocks to be less risky. Several stock indexes are based on high-yield stocks, such as Dow Jones U.S. Select Dividend Index and FTSE High Dividend Yield Index.

The ability to find the best stocks to invest in or the best ETFs that could provide good dividend income will play an important role in any strategy for stock investing. Find out the best ETFs for dividend and high yield.

Trading lesson – Aug-30-2019

Japanese candlestick charts are used in almost any trading and investing style. Unfortunately, not all traders use these candlestick charts in the best way as they use badly readable charts and have problems with proper analysis of the situation.

These basic tips should help you to read Japanese candlestick charts and make the most profitable decisions:

  • Set up an ideal color for the candlestick chart.
  • Use more timeframes for candlestick trading.
  • Make your Japanese candlestick charts readable.

Check out the details of these tips for the best Japanese candlestick charts reading and trading.

Trading lesson – Aug-23-2019

The Japanese stock market is part of a very developed economy. Tokyo Stock Exchange is the fourth largest stock exchange in the world by aggregate market capitalization of its listed companies and largest in Asia.

It could be hard to trade and invest directly during the trading hours of the local Japan equity market and monitor real-time international quotes of Tokyo’s equity market because Japan’s stock market trading hours are very different from US trading hours or European trading hours.

International exchange-traded funds (listed on US exchanges or European exchanges in London or Frankfurt) represent a good way to invest in the Japanese stock market for USD based investors so it is possible to use them to access Japanese stocks.

Find out how to invest in the japanese stock market.

Trading lesson – Aug-16-2019

China’s stock market is often mentioned in financial news and its rise or decline can influence development on other international markets including the US stock market. It is not easy to trade shares directly in the China stock market.

Chinese stock market exchange-traded funds listed on the US stock exchanges could be a good option for investors from the USA or Europe that want to invest in the Chinese stock market without the need to trade directly in Asia but there are also China exchange-traded funds that track specific part of the Chinese stock market.

Discover how to invest in China’s stock market without the need to trade stocks in Asia.

Trading lesson – Aug-09-2019

A Chinese stock market is an attractive place for investment for plenty of investors. There are several options for how an investor or trader can gain access to the Chinese equity market and Chinese shares.

The local Chinese exchange is restricted to domestic investors and the Chinese government protects its own stock market and economy. The capital flow is strongly restricted in the Chinese area.

Traders and investors can find Chinese stocks traded in Hong Kong that is open for every investor and good brokers already offer access to this major Asian stock exchange. The only problem could be a big difference in time for European and American investors and traders.

To solve this problem, you can trade Chinese ETF shares in the USA. There are plenty of Chinese companies tradable also on US exchanges. How to find Chinese companies listed in the US and how to find the best stocks to invest in now?

Reveal the answers for the Chinese stock market.

Trading lesson – Aug-02-2019

One of the important basics for every trader is a good online broker. There is not only one top stockbroker, but every individual trader also has more or less different needs for his strategy. Everyone wants to find an online broker with the lowest fees. But the best online stock brokers offer more than the lowest fees.

They provide user services such as:

  • Online trading platform,
  • Level of security,
  • Support,
  • Real-time data for stock tickers,
  • Inventory of shares for short selling,
  • List of tradable markets and products.

Find out what exactly the best online stock brokers offer to the traders.

Trading lesson – Jul-26-2019

If the price on your stock market chart is declining, corrections (pullbacks) are not as strong as moves down, there are lower highs and lower lows on the chart and the volume during declining periods is higher than during corrections you have just identified downtrend on charts.

A downtrend is an integral part of market behavior. You need to identify stocks in bearish trend to find possible candidates for short trades and you must be able to identify downtrend because it helps you to make more profitable trades. Even in rising or neutral market situation when major indexes are moving sideways in a wide trading range you could find some shares that are weak and are trending down.

There are several options on how to trade in the situation of declining prices. Read more about the downtrend on stock market charts.