Forex + Technical = The Best Way Fast Get Rich $$$

Forex + Technical = The Best Way Fast Get Rich $$$

The word FOREX is derived form Foreign Exchange and is the largest financial market in the world. Unlike many markets, the FX market is open 24 hours per day and has an estimated $1.5 Trillion in turnover every day. This tremendous turnover is more than the combination of all the worlds’ stock markets on any given day. This tends to lead to a very liquid market and thus a desirable market to trade. Unlike many other securities (any financial instrument that can be traded) the FX market does not have a fixed exchange.

It is primarily traded through banks, brokers, dealers, financial institutions and private individuals. Trades are executed through phone and increasingly through the Internet.It is only in the last few years that the smaller investor has been able to gain access to this market. Previously, the large amounts of deposits required precluded the smaller investors. With the advent of the Internet and growing competition it is now easily in the reach of most investors.

FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand. 

ForeX Trading For Maximum Profit

ForeX Trading For Maximum Profit

Description of ForeX Trading for Maximum ProfitTake an in-depth, how-to look at Forex trading using the methods, analysis, and insights of a renowned trader, Raghee Horner. As the fate of the dollar against foreign currency generates both anxiety and opportunities, currency trading has been drawing much interest and a growing following among traders in the United States. The Forex market is particularly attractive because it trades with no gaps and has unlimited guaranteed stop-losses. The liquidity of the Forex market and worldwide participation makes for more reliable and longer lasting trends as well. Raghee Horner, legendary not only as a top Forex trader but as a master teacher of trading systems and techniques, draws on her winning tools and methods, including classic charting techniques, in this book. She'll enable you, regardless of your skill level as a trader or investor, to understand how the Forex operates and lays out a blueprint for getting starting in this little-understood but high-potential trading vehicle.

Contents of ForeX Trading for Maximum Profit
Introduction
1. Trading ForeX
2. Getting Started
3. History Repeats Itself
4. The Major Players
5. Prime Trading Times
6. Reading ForeX Quotes
7. Tools of the Trading Game
8. How to Draw Trendlines
9. The Difference Between Major and Minor Trendlines
10. Fibonacci Levels
11. Visual Tools
12. Measuring Trends with CCI on Short-Term and Long-Term Charts
13. Trading Versus Investing
14. The Funnel Mindset
15. The Difference Between Scalping, Momentum, Swing, and Position Trading
16. Two Cornerstone Steps of Trade Setups
17. "Prep Work"
18. Three Classic Tools to a Three-Step Setup
19. Building a Trade
20. Rewriting Trade management
21. A Trade Going Astray
22. Placing Your Orders
23. The Five Stages of Loss
24. Tips and Tricks of the Trade
25. News "Discounting"
26. Charting the U.S. Dollar with Other Currencies
27. Raghee's Rules for Successful Trading
28. A Day in the Life of a ForeX Trader
29. Conversation with Raghee Horner
30. www.raghee.com

The Benefits of Leverage in Spot

The Benefits of Leverage in Spot
One of the key steps in making a spot gold trade
is determining a trade size, because selecting the
correct trade size is critical to effective risk
management.
How much spot gold you can trade depends on how
much money you have in your trading account as well
as the online trading firm’s leverage and margin
requirements.
Typically, online forex trading firms will allow leverage of 50:1 for spot gold. If you can trade spot gold on a margin of 50:1, for every $1 you have in your account you have $50 in buying and selling power for spot-gold trading. In other words, a $5,000 account can trade up to $250,000.
Margin is the amount of money you must have in your trading account to make a particular trade. At 50:1 leverage, your margin requirement would be 0.02, or 2%. This means you must have a minimum cash balance of 2% of the total value of your spot gold positions. If you fall below 2%, your trade may be closed automatically, or, as it is referred to in trading language, liquidated.
Let's look at an example of how leverage works. Let’s say you would like to trade one lot of spot gold (which, as we have mentioned in other articles, equals 10 troy ounces) at $820.50. So, your total trade size would be 10 X $820.50, or $8,205. Since your margin requirement is 2% of your trade size, the amount of cash you would need in your account would be $8,205 x 0.02, or $164.10. If your account balance falls below this level, your trade will be automatically closed.
Leverage is what makes online spot-gold trading an excellent opportunity for beginning gold traders, who may not have large cash balances. Leverage increases your buying and selling power and lets you participate in a market that may otherwise be cost-prohibitive. In the example above, for example, 50:1 leverage gave you the ability to trade 10 ounces of spot gold at $820.50—a value of $8,205—with just $164.10.
Of course, it is important to keep in mind that increasing leverage also increases risk. You could make greater profits with a leveraged account, but you could also experience greater losses.

GBP/USD: correction underway

 

Finally, risk appetite gave up earlier strength and majors and pair is correcting to the downside. Capped above 1.5120 support area, under that level a probable retest of 1.5080/90 seems likely as 4 hours charts show indicators also losing strength. Only above today’s high of 1.5176, pair could regain bullish momentum and approach to key 1.5230 resistance area. 

EUR/USD Important resistance area at 1.3750/1.3875 - Commerzbank

(Barcelona) - Dollar strength seems to be losing steam and the Euro and other considered higher yielding currencies are drifting higher, with the common currency approaching important resistance at 1.3750/1.3875 area, according to Karen Jones, technical analyst at Commerzbank.

The Euro trades now around 1.3700 and approaches 1.3750/1.3875, which, according to Jones, contains several resistance levels: "EUR/USD is slowly drifting higher. Overhead resistance remains prolific above the market at 1.3750-1.3875 – this contains a double Fibonacci retracement, the short term downtrend and pivot."

On the downside, bearish reaction below 1.3530 will cancel upside momentum, says Jones: "Near term risk is shifting to the topside and only a break below nearby support at 1.3530, will alleviate upside pressure for a slide to key support, which remains 1.3445/05 (recent low and medium term Fibonacci retracement)."

• EUR/USD

EUR/USD (Mar 12 at 20:36 GMT)

1.3755/59 (0.56%)

H 1.38 L 1.3667

S3	S2	S1	R1	R2	R3
1.3681	1.3716	1.3750	1.3757	1.3791	1.3826

[?]Trend Index	[?]OB/OS Index
Slightly Bullish	Neutral
Data updated on Mar 12 at 20:23 (15-minute timeframe)

USD/CHF falls to 1.0570, fresh 5-week low

USD/CHF falls to 1.0570, fresh 5-week low

(Córdoba) – The Swiss Franc is rising against the Dollar erasing yesterday’s losses. USD/CHF fell to 1.0570 reaching the lowest price since February 3. 

The pair is holding below 1.0600 and currently trades at 1.0583/86, 0.30% below today’s opening price. 

To the upside resistance could be located at 1.0620 and above at 1.0640 (March 15 high). To the downside support levels lie at 1.0570 (intra-day low) and below at 1.0550.

The Euro trades at the same level it had at the beginning of the day against the Swiss Franc after falling sharply in the last two days. EUR/CHF is hovering around 1.4520, after finding support during the Asian session at 1.4500/05 (16-month low). 

• USD/CHF
• EUR/CHF

USD/CHF (Mar 16 at 12:55 GMT)

1.0586/91 (-0.29%)

H 1.0627 L 1.0569

S3	S2	S1	R1	R2	R3
1.0533	1.0559	1.0586	1.0598	1.0625	1.0651

[?]Trend Index	[?]OB/OS Index
Slightly Bearish	Neutral
Data updated on Mar 16 at 12:43 (15-minute timeframe)

US import price index falls beyond forecasts

US import price index falls beyond forecasts

(Barcelona) - The US import price index fell by 0.3% in February, thereby slipping further than the forecasts of a 0.1% decline from January's 1.4% growth.

Year-over-year, the US import price index ticked down to 11.2% growth in February from January's 11.5% rate. The market had predicted a more modest easing to 11.3%.

The Import Price Index released by the US Department of Labor informs the changes in the price of imported products into the US.The higher the cost of imported goods, the stronger the effect they will have on inflation, redounding in a higher probability of a rate rise. Generally, a high reading should be taken as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

Import Price Index (MoM)

-0.3%

Actual

-0.1%

Consensus

1.3%

Previous

US FX FUTURES REPORT

US FX FUTURES REPORT

The foreign currency futures collapsed across the board overnight, with the euro and Swiss in the lead. The rout was triggered by disappointing Eurozone economic data, ongoing pressure from Greece and by PBOC's decision to raise bank reserves by 50 basis points to 16.5% from 16%.

The German, Italy, Greece and the Eurozone preliminary GDP reports came in worse than expected in the fourth quarter, the Eurozone industrial production unexpectedly declined, and the French non-farm employment continued to drop in the fourth quarter.

The Asia/Pacific stock markets closed mixed, the European bourses are mixed, while gold and oil are down. The US stock markets are down in pre-open market; remember, further overall weakness is expected. All eyes are on the US economic agenda, which features the retail sales and business inventories reports, and the University of Michigan consumer confidence survey.

The short-term outlook for the foreign currency futures should remain bearish for the balance of the global day ahead of the long weekend. If order restores in FX, the yen should trade the opposite way. My model is short all of the European currencies and long the Aussie, Canadian dollar and yen.

Look for updates on my model’s positions on Twitter: They are free – for now. Then, you will have to subscribe to get the model turns in advance.

Overnight:

• Australia: No data
• China: The People's Bank of China raised banks' reserve requirement by 50 basis points to 16.5% from 16%, effective February 25.
• Japan: Consumer confidence rose to 39.4 in January from 37.9 in the previous month.
• Germany: The GDP stagnated in the fourth quarter, following a 0.7% rise in the prior quarter. Economists had expected a quarterly growth of 0.2%.
• France: The GDP rose 0.6% sequentially in the fourth quarter from +0.2% in the third quarter, revised down from 0.3% rise initially estimated.
• Italy: The GDP unexpectedly contracted a seasonally adjusted 0.2% in the fourth quarter after expanding 0.6% in the third quarter. On a yearly basis, the GDP contracted 2.8%.
• Eurozone: The GDP rose at a slower pace of 0.1% sequentially in the fourth quarter from 0.4% in the third quarter. On a yearly basis, the GDP fell 2.1%, slower than the -4% in the third quarter.
• Greece: The GDP contracted 0.8 percent in the fourth quarter after a revised fall of 0.5 percent in the previous quarter.
• Greece: The International Monetary Fund on Friday joined the European Union in pledging support for Greece in its struggle to bring its ballooning budget deficit under control and contain its debt crisis.
• Eurozone: Industrial production plunged by a seasonally adjusted 1.7% in December from November’s +1.4%, revised upward from +1%. Year-on-year, industrial output fell 5%, less than the revised -6.9% in November
• France: Non-farm employment declined 0.4% in the fourth quarter after a 0.5% fall in the third quarter. Year-on-year, non-farm employment dropped 2.5% in the fourth quarter.
• UK: The Conference Board leading economic index rose to 99.0 in December from 98.6 in the previous month. This is the ninth straight month in which the leading index has risen. The coincident economic index increased to 102.8 from 102.7.

Today’s Economic Calendar:

• Canada: New motor vehicle sales for December
• US: Retail sales for January
• US: Business inventories for December
• US: University of Michigan consumer confidence survey for February

EUR- March

Luca Model: Short since January 20

The March euro sank for a third day to mark a nine-month low amid nervous trading surrounding the Eurozone effort to help out Greece and regional economic weakness. The short-term outlook turned bearish for the rest of the day. The medium-term outlook remains bearish and my model is short. The target of a medium-term bearish flag is 1.3370 and the target of a short-term bearish flag is 1.3150.

The current low of the downtrend is 1.3531. Below 1.3483, distant support is at 1.3321.

Immediate resistance is at 1.3617. The next cap is 1.3710. Strong resistance is at 1.3818. The 21-day moving average lies at a very distant 1.3924.

INDICATORS

Fast stochastics: Slightly bearish

MACD: Slightly bearish

Ichimoku: Bearish

OUTLOOK

NEAR-TERM: Bearish

MEDIUM-TERM: Bearish

LONG - TERM: Bearish 

JPY - March

Luca Model: Long since February 4

The March Japanese yen reversed Asian gains to an over one-week low and tested the bottom of its channel rising since January 8. The yen remains in an inside range. The short-term outlook is sideways. The medium-term outlook remains sideways and my model is long.

The 21-day moving average supports at 110.92 and the bottom of the channel is 110.65. Distant support is at 109.57.

Immediate resistance is at 111.54. Above 111.92, good resistance remains at 112.50. The top of the upmove is 112.95.

INDICATORS

Fast stochastics: Slightly bearish

MACD: Slightly bearish

Ichimoku: Slightly bullish

OUTLOOK

NEAR-TERM: Sideways

MEDIUM-TERM: Sideways

LONG-TERM: Bullish 

GBP - March

Luca Model: Short since January 21

The oversold March pound has been alternating up and down days for four days, and remains under pressure. Basically, cable is consolidating at the bottom of its recent downmove. The short-term outlook is slightly bearish. The medium-term outlook is bearish and my model remains short.

Below 1.5583, the low of the downtrend is 1.5531. Further support is at 1.5469.

Strong resistance is at 1.5697. The next cap is 1.5769. The 21-day moving average resists at a very distant 1.5877.

INDICATORS

Fast stochastics: Sideways

MACD: Bearish

Ichimoku: Sideways

OUTLOOK

NEAR - TERM: Slightly bearish

MEDIUM - TERM: Bearish

LONG - TERM: Bearish 

CHF - March

Luca Model: Short since January 20

The oversold March Swiss franc remained under pressure overnight, when it succumbed to a six-month low. The short-term outlook turned bearish for the rest of the day. The medium-term outlook is bearish and my model is still short.

The new low of the downtrend is .9236. Further support is at .9214 and .9158. Distant support lies at .9116.

Initial resistance is at .9297. Further caps are at .9337 and .9396. The 21-day moving average resists at a distant .9468.

INDICATORS

Fast stochastics: Bearish

MACD: Sideways

Ichimoku: Bearish

OUTLOOK

NEAR-TERM: Bearish

MEDIUM-TERM: Bearish

LONG-TERM: Bearish 

CAD – March

Luca Model: Long since February 10 (reversing short since January 20)

The overbought March Canadian dollar slipped on profit taking overnight after rallying for three days to the highest level since January 22, but found a floor from the 21-day moving average. The short-term outlook is bearish early and then slightly bullish. The medium-term outlook is sideways and my model is long.

Initial support is at .9453 from the 21-day moving average. The 100-day moving average follows at .9411. Further support is at .9337. The low for the downtrend is .9274.

Immediate resistance is at .9556. The next cap is at .9586. Distant resistance is at .9680

INDICATORS

Fast stochastics: Bullish (overbought)

MACD: Bearish

Ichimoku: Bullish

OUTLOOK

NEAR-TERM: Bearish early, then slightly bullish

MEDIUM-TERM: Sideways

LONG-TERM: Bullish

AUD – March

Luca Model: Long since February 10

The March Australian dollar opens lower in the US after surging to a two-week high and closing above the 21-day moving average for the first time since January 19. The short-term outlook is bearish early and then slightly bullish. The medium-term outlook is sideways and my model is long.

Initial support is at .8769. Below .8719, distant support is at .8653.

The 100-day moving average resists nearby at .8809. The 21-day moving average lies at .8849. Further resistance is at .8911 and .8967.

INDICATORS

Fast stochastics: Bullish (overbought)

MACD: Slightly bullish

Ichimoku: Slightly bearish

OUTLOOK

NEAR-TERM: Bearish early, then slightly bullish

MEDIUM - TERM: Sideways

LONG - TERM: Bullish

EU to support Greece, if needed

EU to support Greece, if needed

At today’s EU Heads of State summit, the European Union agreed unanimously to the principle of supporting Greece, but no concrete aid steps were announced. Additional details could be unveiled at the Ecofin meeting on Tuesday, February 16. Statements after the summit suggest that there’s no ex-ante decision to rescue, but there’s a strong commitment to do so if and when the need arises. Seemingly, today all possible technical tools were discussed. Some EU sources have been quoted saying that:

1. Support could be structured in stages, depending on the level of need

2. Countries could participate according to their weight in the eurozone

3. Support options could vary from country to country

As expected, the ECB and the IMF will not be involved financially in the plan. The ECB welcomed the EU pledge to take coordinated action if needed, and stated it will work jointly with the EU in defining Greece’s fiscal consolidation path, and in monitoring its implementation. The IMF praised the agreement, and offered its expertise, if needed. FI: Markets are now more confident that Greece will receive support, if needed. Once it was clear that no details would be revealed today, peripheral countries came under moderate pressure, although not enough to erase gains posted earlier in the day. The main message retained by investors is that the outlook for periphery is improving. From yesterday’s closing level, 10Y GGB-Bund spread tightened 9.5bp, and Portugal and Ireland were similarly well supported. FX: The euro was battered again, with investors being ultimately frustrated by the overall lack of details regarding the EU leaders’ decisions and by the general feeling that this move will not be enough to fully dissipate ongoing EMU-related concerns. There is still risk that more selling pressures may hurt the EMU unit in the coming days, with the Ecofin meeting on Tuesday unlikely to offer EUR-USD a lasting support. Actually, a pullback above 1.3840 is needed in order to at least just freeze the intense selling pressure. On the other hand, the risk of a further drop towards 1.34/1.3390 has increased, especially if the 1.35 base also falls.

This article taken by www.fxstreet.com

Commodities currencies end week on a strong note

Commodities currencies end week on a strong note

FXstreet.com (Córdoba) – Currencies link to commodities managed to finish the week with important gains despite ending Friday slightly lower. 

AUD/USD rose on a weekly basis after falling in the previous four. The pair tested levels above 0.8900 and then pulled back finding support at 0.8780. 

USD/CAD fell more than 200 pips during the week and momentarily dropped below 1.0500. The pair rallied to the downside 260 pips from Tuesday to Thursday. 

NZD/USD rose for the first week after falling in the last five. The pair recovered after dropping a week ago to 0.6800 reaching the lowest level since September. The pair jumped almost 200 pips and finished on Friday near 0.7000. 

Commodities were helped by an increase in the price of raw materials and beneficiated by problems that European countries are facing. 

• AUD/USD
• USD/CAD
• NZD/USD

AUD/USD (Feb 14 at 21:47 GMT)

0.8875/78 (0.20%)

H 0.8887 L 0.8868

S3	S2	S1	R1	R2	R3
0.8822	0.8844	0.8866	0.8876	0.8898	0.8920

[?]Trend Index	[?]OB/OS Index
Slightly Bearish	Neutral
Data updated on Feb 14 at 21:43 (15-minute timeframe)

This article taken by www.fxstreet.com

Gold finished week higher

Gold finished week higher

FXstreet.com (Córdoba) – The yellow metal ended Friday hovering around $1,090; near the same opening price. For the week, the ounce gained more than $20 and finished with gains after falling in the previous four weeks. 

Gold tested the $1,100 zone on Thursday but failed to break above. On Friday pulled back finding support at $1,077. The value of the ounce continues to move away from the lows of the current year: on February 5, gold tumbled to $1,043 reaching the lowest price in three months. 

• EUR/USD
• USD/JPY
• GBP/USD
• USD/CHF

EUR/USD (Feb 14 at 21:48 GMT)

1.3609/14 (-0.12%)

H 1.3632 L 1.3598

S3	S2	S1	R1	R2	R3
1.3528	1.3562	1.3596	1.3606	1.3640	1.3674

[?]Trend Index	[?]OB/OS Index
Slightly Bearish	Neutral
Data updated on Feb 14 at 21:42 (15-minute timeframe)

This article take by www.fxstreet.com

Stock markets fluctuated all around world

Stock markets fluctuated all around world

The U.S. economy had little to reveal this week, where a lack of fundamentals throughout the week led investors to focus on global issues including Greece’s debt problems, and accordingly pessimism over the outlook for global growth dominated investors, and accordingly equity indexes fluctuated heavily during this past week.

The U.S. Commerce Department released this week the trade balance for the month of December, where the trade deficit widened beyond expectations to highlight the downside effects of the rising dollar, where the U.S. dollar started to gain momentum recently against major currencies, while lower demand levels from all around the globe also weighed down on the trade deficit.

According to this we should expect a lower contribution from net exports to the GDP estimate in the fourth quarter, though the U.S. economy was able to expand by a staggering rate amid the ongoing support from the U.S. government alongside the recent improvement in economic conditions, yet the real question here, will the economy be able to sustain such a staggering growth level over the upcoming period.

The answer to that question is rather clear, the U.S. economy won’t be able to sustain such a staggering rate since elevated unemployment and tightened credit conditions will continue to weigh down on economic growth in the world’s largest economy, and it will probably take a long time before the U.S. economy can go back to meet its long term growth potentials.

Moreover, the U.S. Labor Department released the weekly jobless claims, where the data released indeed signaled some improvement and this comes inline with the recent figures released from the labor market, where conditions started to improve over the past few months, as unemployment dropped to 9.7% and the pace of layoffs seem to be easing noticeably, and as a matter of a fact some employers started to hire new workers again, though the pace of new hiring remains rather weak.

The retail sales index signaled that consumer spending improved amid the holiday season, where retail sales increased in January after falling back in December, where the huge discounts seemingly lured consumers, this indeed signals an improvement in consumer spending, since retail sales accounts for more than 50% of consumer spending.

Spending though remains somehow weak even as it has been improving recently, yet it remains subdued amid elevated unemployment, tightened credit conditions, lower income growth, and diminishing households’ wealth, yet spending should continue to improve gradually over the upcoming period as conditions continue to improve, and accordingly we should expect the U.S. economy to continue to grow over the course of this year unless of course something else happens that changes the course of recovery.

Confidence however retreated in February, where the University of Michigan confidence index signaled that consumer confidence dropped back to 73.7 well below the prior and expected estimates, as even though the economic conditions index improved, yet the outlook for the economy deteriorated, meanwhile, the 1-year inflation expectations index eased to 2.7%, and the 5-year inflation expectations index eased to 2.8%.

Meanwhile, the Federal Reserve Bank’s chairman, Bernanke, signaled that the Feds have several tools that will help withdraw excess liquidity from markets, however, Bernanke still believes that it’s early to undertake such a stance, since he signaled that interest rates will remain at low levels for some time, as the Feds need to make sure that economic conditions are indeed stable before they start to tighten their monetary policy.

The U.S. dollar gained huge momentum against major currencies this past week, where investors focused on Greece’s debt problems, where the swelling budget deficit in several countries including Greece, Portugal, and Spain are perceived as a risk for economic growth in the Euro Zone economy, this indeed led investors to worry over the outlook for global growth and accordingly investors shed their risky assets and opted to invest in lower yielding assets including the dollar, and that provided the dollar with huge momentum to rise against major currencies.

Despite the recent improvement in financial markets, yet confidence remains rather fragile, where investors are still worried that their might be more ramifications from the worst financial crisis since the Great Depression, and we shouldn’t expect investors’ confidence to return back to normal, since they are yet to believe that global economies are out of the woods yet.

Stock markets fluctuated heavily over the course of this week, where U.S. companies continued to report mixed earnings, yet the dominant factor was the rising fears over the outlook for global growth, and investors shed risky assets on concerns related to Greece’s debt problems and China’s decision to tighten its monetary policy, where the latter was seen as a threat to the pace of the recovery.

This article taken by www.fxstreet.com

Online Trading  2011

Day trading is the same base idea as any other sort of trading with one massive difference : day traders barely hold a position with a stock overnight. Stocks are acquired and sold in the matter of hours- hopefully for the trader with quick profits. Due to the really speed that these transactions are made, day traders risk more than more traditional traders do, and the stocks that they trade in are more unsteady and far more unpredictable. In the world of day trading, there are many sub-types and each has its own benefits and drawbacks and is going to be researched totally. online trading

Though day traders do trade on many markets, with many types of financial vehicles, they do the overwhelming majority of their high speed trading on the internet. In fact, the times of the Wall Street market scene are falling away, as more of the trading is being done on a huge computer network. NDX is totally electronic now, while the NYSE only does a portion of its activities on the internet. The world is moving far too fast for the traders to remain competitive if they don't seem to be able to move as fast as the slowest computer- the traders that may evolve will succeed, the ones who cannot will retire, hopefully with a nice nest egg.

For each failed day trader, there are numerous others ready to saddle up and take the opportunity to make their fortune and their names on the back of some quick, but good trades. online trading

Futures is a dodgy market for plenty of reasons, most notably because not everything can be forecasted or foreseen.

Day traders can move many thousands of dollars on the foreign exchange market, and never once visit any of the states that they're trading with. While the forex market has barely less harsh restrictions and rules, they aren't completely rule-less and you must know the ins and outs of this very fast moving market before even trying your hand at it.

At least till you have made enough trades to be ok with the process, you need to stick to simple stocks. online trading

Undisciplined or illiterate trading is not only dangerous ; it can weaken the entire market system. As more traders fail in bigger and more public ways, the general public becomes more scared and less certain to invest any money at all into the market at large. The extra cash that stays in banks or at home in empty peanut butter jars means that far less flowing into the stock market and into new and growing companies. If those businesses can't manage to show a profit reasonably shortly into their operation, they're going to fold. If one more business folds, then public confidence will fade even farther, and the cycle is repeated. While the whole economic downturn can't be blamed on reckless day traders, they definitely aren't helping in the future.