Thursday, October 30, 2008

What is Day Trading? - The Basics

Day trading is the practice of buying and selling financial instruments, such as stocks, stock options, currencies, and futures contracts, within the same day such that your positions are usually closed before the end of the day.

Day trading used to be the sole realm of professional investors. In fact, many day traders work for banks or investment firms. Advances in technology and the Internet, however, have allowed even amateur traders to day trading.

Day traders often borrow money to trade. This leveraging allows for a high potential rate of return and large profits. Some day traders earn millions of dollars a year. However, day trading can also be extremely risky. Without the proper skills and tools, day traders can just as easily and quickly lose money.

Although collectively called day trading, there are several different styles of day trading. Some trading styles include:

Momentum Trading

Momentum trading is a strategy in which one believes that stocks, or other financial instruments, move with a momentum or trend. Thus, stocks that have been rising are assumed to continue to rise. Likewise, stocks that are falling will continue to fall. A momentum trader thus buys stocks that are rising and short sells ones that are falling.

Contrarian Trading

Contrarian Trading sharply contrasts momentum trading. Contrarian traders believe that stocks that have been rising will reverse and fall. The contrarian trader buys stocks that have been falling and short sells stocks that have been rising.

Range Trading

Day traders who range trade look for stocks that have been consistently trading within a specific range. These stocks rise after hitting a "support" price and fall after hitting a "resistance" price. A range trader therefore buys stocks that are near the support price and short-sells stocks that are near the resistance price.

For more information on day trading, check out DayTradingModels.com

Greg Chan is a business and finance expert and an active day trader. He has authored several articles on day trading. For more information, visit DayTradingModels.com

The logo of American International Group (AIG) is seen at their offices in New York September 22, 2008. (Eric Thayer/Reuters)Reuters - Maurice "Hank" Greenberg, the former American International Group Inc chief executive, says the terms and conditions surrounding a government rescue loan are pushing the insurer closer to collapse with each day.

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Tuesday, October 28, 2008

Best Forex Trading Software, Forex Funnel!

Forex Funnel is the newest in a long line of automated trading programs designed to make currency trading easier and more profitable for yourself. Now considered one of the best Forex trading programs, it is making some serious waves as of late.

When it comes to currency trading, most people will feel very nervous about jumping in. And they would be justified in feeling that way since the Forex market is notoriously complex and newbies can easily be burned.

Recent years have seen the release of software that can automate trading but doesn`t cost the bank. Forex Funnel is considered a rival to some of the best Forex trading programs available, that is surprising as it only costs a twentieth the amount that they do!

Automated trading software works by predicting profitable times to trade. The best Forex trading decisions can only be made by quick decisions, this is facilitated more so in computerized systems than anywhere else. Changes are measured in what`s known as pips, and no, it has nothing to do with the ones you find in fruit!

Released only a few months ago, Forex Funnel got me all excited. Having bought a copy i was eager to see how it performed. The same developers that are behind Forex Tracer are behind it, so i naturally expected some juicy profits. The main interface has been improved, a good start.

When you install Forex Funnel you will get that exciting money-making rush. While the thought of the best Forex trading deals making you millions are unavoidable, start on a no-risk demo account first, to get a feel for the market.

After trading for a day on a real account you should see results. If you invest only $300 you can see a profit of $50 overnight! This is an exceptional return on you money. Bear in mind that the more you trade with the more you will profit when you win a trade.

Currency trading is difficult at best, but software like Forex Funnel makes it a lot easier. If you want to exercise the best Forex trading decisions automatically and you don`t know a lot about trading, then this is for you. But it always helps to read up on currency trading to get an idea, before you hop right in.

Forex Funnel is a leader in it`s field. Make sure to visit Best Forex Trading for more info on all things Forex!

Reuters - The nine largest U.S. banks receiving $125 billion from the government were asked on Tuesday to hand over information about their compensation and bonus plans to a Congressional panel.

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