Sunday, September 2, 2007

Stock Picks 101 - Market Watching Is Like Watching the Weather

Do you watch the stock market during the day? Would you like to hear a perspective you that can give you insight into how you can better understand whats going on in the market?

Perhaps youre one of those people with a good sense of what the weather will be like on any given day. Some people dont need the local weatherman. They look at the sky, feel the temperature, smell the air, listen to the wind, take into account the time of year, and do a fine job of predicting the weather for the day.

Lets take this example a bit further. If its a partly cloudy day, you can look up at the sky and predict when youll be in a sunny patch or a cloudy spot. Todays cloud patterns also might help you predict tomorrows weather.

All this is done in a quick, casual, relaxed, intuitive manner. It doesnt take a high powered computer and a formula intricate enough to please a rocket scientist to pull this off. It just takes some experience and the willingness to observe accurately. Then your brain naturally does the rest at a subconscious level and comes up with a weather prediction.

This is where it gets interesting: You can use the same kind of mindset to predict the stock market as the day progresses. Like the weather, the market behaves differently at different times of day. Like the weather, yesterdays market has an effect on todays behavior. The premise of swing trading stock, for example, is that there is observable price movement follow-through from one day to the next.

With a little practice, you can see the up and down wiggles of price during the day just as you can see cloud patterns play across a distant hillside. Some market days are gusty and others are calm. Some market days crackle with thunderstorms and others operate under a steady rain. Some days are humid and sunny and others have a bright, even light.

Im making analogies in the previous paragraph. Youll find yourself developing your own perceptual framework. Because we all have unique experiences, we all have unique perspectives. Youll need to experiment with the market-like weather perspective to see what kinds of patterns you perceive.

Just like with the weather, this predictive technique breaks down if you get overly analytical. This method of prediction works best if done casually, without any emotional baggage.

You can take your observations to the next level by logging your impressions and then going back later to check their accuracy. As you get better at this, you can even factor it into your market trading process. Just dont force it!

Enjoy watching the market as youd enjoy the weather and youll be surprised at the subtle patterns you start to pick up on.

As one of the Directors of Investing Systems Network, Doug Newberry consults on the development and usability of software for swing trading stock and portfolio management for investors in more than 70 countries.

Learn Forex Trading

The internet has changed the way we invest online. Along with that, forex trading has become the new way to get significant profits while investing with certain advantages that are superior to other types of investments.

Flexible access is a unique trait to forex, you can get involved whenever you want because it operates 24 hours a day to give you total access to trades. Have you ever been pressured because the market is about to close at the end of the day? No worries here, this is not the stock exchange. Currencies continue to trade. The beauty of forex websites is that they allow you to monitor the market in real time when ever you choose. This really helps in the learning process.

There is help given by these websites in the form of tools and tips to help you overcome the trading learning curve. Take advantage of the fact that the sites will allow you to "practice" trade without using real money.

Through free guidance, demos, and market news provided by these Forex trading firms, beginners in the industry are already trained to be the expert in the business. How much does it cost to get started trading forex? It only takes about $300 to open an account with a broker and to start investing.

Thanks to the online forex trading websites, learning the Forex trading market does not necessarily mean you must become a market analyst or economy expert to be successful in the field. In most cases, you can access the most extensive market, Forex trading, through an intermediary or Forex trading brokers.

Forex brokers are very similar to stock brokers, in that they can give you advice on trading strategies and how to deal with the ups and downs of the market. The advice extends to everything needed to become successful trading forex which includes technical analysis and fundamental analysis data. It is only natural that large financial institutions try to monopolize the market because it provides such a solid return on investment.

Even if you are the very smallest individual forex investor, you still have the ability to make great returns because of the availability of internet trading. As I stated earlier, the online forex companies have been making powerful free tools available to educate and improve the knowledge of new investors.

When you choose your broker, the determining factor should be your level of experience in the forex market. Many brokerage sites will provide trading simulators and expert advice as well as research and analysis designed for first time traders. Furthermore, these websites typically provide experienced online Forex traders who offer in-depth advice to forex traders of all levels. These tools are open to beginners with no experience to try.

Don't be afraid to step out of the domestic market of the regular stock exchange. Learn forex trading and take advantage of one of the fastest growing global investment opportunities. There are plenty of places for you to learn and to practice before you decide to put and real money up and take a risk. You can learn forex trading and succeed by choosing to take advantage of all of the tools that are available to you.

Sydney Johnson gives you more free information at Automatic Forex Signal Trading. Search other helpful articles at- Automatic Forex Signal Trading Articles. Click here