When You Learn Technical Analysis, Don't Forget The Ascending Continuation Triangle

By Chris Blanchet

Although we have already looked at a Classic Pattern in the Learn Technical Analysis Free series, another important pattern to understand early on is the Ascending Continuation Triangle. This pattern is formed by two converging trendlines -- a horizontal upper line that scrapes along two steady "highs" of a trading range and an increasing lower line that follows two higher lows of the same range.

For investors who want to learn technical analysis, the Ascending Continuation Triangle is an important pattern as it provides us with a Bullish trading signal. Since the pattern is normally a short-term pattern that takes shape over one to three months, investors are able to quickly lock in gains and reverse their position without much loss.

Investors who have just begun to learn technical analysis will actually find it more difficult to remain patient as they confirm the pattern than it is to spot the pattern. For confirmation, investors should look for the following.

Volume

This is considered one of the most important factors when confirming this pattern. What investors need to see is that volume diminishes as the pattern takes shape and then spikes at breakout (pattern confirmation). Conversely, if there is no spike at breakout, then the pattern is considered less reliable or even false.

Moving Average

The Moving Average should also be taken into consideration. If the pattern's prices touch or come close to the 200-day moving average, then the pattern is considered strong.

Duration

For people who are just starting to learn technical analysis, keep in mind that the break-out (penetration of the upper, horizontal line) should happen well before the pattern actually reaches the apex of the triangle (the right-most tip). In fact, break-out should occur roughly three-quarters to two-thirds of the way along the upper line.

For investors seeking an explanation as to who this pattern occurs from a fundamental basis, consider a company or large shareholder who wants to sell only at a predetermined price. When the price reaches such levels, the supply of stock will dwindle and push the price down. Until that supply is depleted, this price level will form a resistance line (the upper, horizontal line). However, once this supply is exhausted, the price will break out, which is where people who want to learn technical analysis will see confirmation of such a pattern. - 23208

About the Author:

For investors who want to learn technical analysis free and receive two free stock picks every week that exemplify the signals discussed in the Series, visit Online Trader Today.com.

Penny Stocks - Are They Too Risky?

By Marco Davies

We all know the term 'high-risk investment' often sounds frightening, and frequently this set phrase alone is enough to put a good many savers off - because at the end of the day no one wants to take a chance. The difficulty with obtaining any sort of stock (high-risk or not) is that it's invariably a risk.

On that point is a lot of info swimming around on the World Wide Web about penny stocks. Nearly everybody with e-mail has gotten junk e-mail at some time, boasting about them as the next fantastic investment funds. Unfortunately, much of this information is geared toward scamming you in some sort or another, and it is in all likelihood that you will lose your money that you put into the stocks advertised in this manner. This doesn't necessarily follow that every penny stocks will be poor deals, or that every individual investment fund is a scam, as a matter of fact, far from it because some could be very profitable.

Penny stocks are affordably valued stocks or shares in companies or business enterprises that are thought of "small," as opposed to large corporations. There are not that many shareholders involved, making them less 'fluid' than many other varieties of stock. The object of speculating in penny stocks it to spend only a tiny amount of money in the beginning to savor a big return subsequently, but does it work this way? It does, now and again, just not regularly but for people who know what they're doing when they invest, they can be a great investment funds instrument. Dominating the art of dealing in penny stocks can be awkward, nonetheless.

Basically, penny stocks do not deal on the major stock markets, instead, they are referred to as "over the counter" investments, listed on Pink Sheets and the OTCBB. This makes them rather unique, and frequently more difficult to locate for a good many speculators. Penny shares also don't trade very regularly, so now and again investors have very little time to to do something. As trading does not happen frequently, there is always the fear of being incapable to sell one's shares and winding up with a bad investment. This is all part of the risk of dealing in penny stocks, and a good many investors think this makes the game all the more intriguing. When you commit, you should receive monthly updates that make you aware how your stock is doing.

Many investors consider penny stocks too unsafe but the only individual who can determine that is you. It's all down to how much gambling with your funds you wish to do, just how much you are aware penny stocks, and how fortunate you feel. If you imagine speculating your money in penny stocks is a good idea, then it probably is but everyone has a different thought so study them, and form your own views. - 23208

About the Author:

The gurus hate it when their personal secrets about hot penny stocks get exposed! Now they're fuming mad about this site Penny Stocks and trying to shut it down.

Need Money? Try A USA Grant

By John Holden

If one is looking for some government agencies that provide funds for fulfilling particular objectives in specific field, no doubt, enough time, effort and research work is needed. Here, the intenders have been provided with all important points that will definitely guide in the way to find an appropriate government grant agency. There are number of problems that may come across when finding sufficient funds for instigating new business profile. One should keep in mind that these government grants are awarded always for non profit commercial firms and the services which are advantageous to the rest of the community.

Finding government grants

The official website of US government is the best place from where the interested individuals can get an idea about various grants issued to the business organizations. Moreover, this website will help one out in identifying the appropriate grant electronically and also in applying for various competitive grant privileges from many federal grant agencies. In addition, one can also get the useful information regarding different kinds of funds and various government organizations that grant funds in different areas. Moreover, one can also have a look to CFDA (Catalog of federal domestic assistance) which encloses a list of different kinds of government grants and assistance. Various interesting methods like by keywords have been made available so that intenders can find their required grant easily and quickly. Whenever one finds the required grant, it is important to make sure that all eligibility requirements have been studied carefully in order to know if one would be eligible to that particular fund.

Most of the grants can not be accessible throughout the year, therefore people should go for them only when proclaimed by any recognized government agency. Whenever, the government determines some amount for a particular grant, it adds these announcements in "Federal Register". The individuals can keep themselves updated regarding latest grants by having a look of this register. In addition, they can also opt for browsing official websites of government organizations in order to know about the recent announcements.

These government agencies grant funds to individuals who want it for education purpose. Grant of funds is also done for scientific research. Apart from this there are numerous government agencies who grant funds for many other reasons.

Getting government grants

Receiving government grants is, no doubt, a tough job due to huge competition. For being a good candidate for receiving grants, the individuals are required to render a written document which manifestly states that their aims lay down a financial plan for business activities. Now-a-days, various fraudulent agencies are also there which assert to issue free money grant just by writing a simple letter, so people need to be cautious about them.

These government grants are free in a way that a person does not have to reimburse the amount. The only thing which one should provide is proper evidence of periodic progress, financial reports as well as program evolution to the government.

So, if you consider yourself eligible for a particular type of grant, get ready to research more about it or make contact with a competent proficient individual to help you out in the entire procedure. - 23208

About the Author:

To read more about US grants, check out Govt Grants Direct. Also, check out the Gov Grants Direct review now!

Types of Stop Loss Orders

By Ahmad Hassam

You should understand how to select stop orders to limit your potential losses and how to let profits ride. Managing risk and using systems that helps evaluate price changes is critical for a trader if he/she is to maintain a degree of profitability over time.

Managing risk should be your number one job and capturing as much profit as possible from winning trades should be your utmost goal. The descriptions of the types of stops and the pros and cons of each should help you make the right decisions for the different market conditions.

You should know the various types of stop loss orders. You should also know where and when to place these stops. Predetermined stop loss orders help you conquer your emotions. Stops should be part of the trading system and included in your trading rules.

Stop orders can be placed close to the entry level when volatility is low. However, when the volatility is high, stop orders should be placed further from the entry level. Set a stop objective. Weigh the risk/reward ratio before entering each trade.

When entering a trade make sure you know where and why to put the stop order. Initially you will form an opinion based on your gut feelings that is substantiated by a trade signal.

However, you will undoubtedly get caught in the news driven price shock events that make the markets highly unpredictable in the short run. These news releases cause price spikes that may make an adverse move against your position.

Stop orders are placed to protect against losses. These orders can also be placed to enter positions. Stop orders that you place online if the market trades at a certain price, then the order is triggered and become a market order to be filled in by the next best price available.

Sell stops are placed below the current market price and buy stops are placed above the current market price. Protective stops are used to offset a position and to protect against losses and against accrued profits.

You can set a daily dollar amount on the loss limit. Suppose you want to risk only $250 per $100,000 standard lot position. Stops can be placed on a dollar amount per position. Your stop loss should be placed 25 pips from your entry point.

You can also use a certain percent of your overall account size as your stop loss. Traders use 2-5% of the overall account size as their stop loss. If your trading account size is $10,000, this comes out to be $200-$500.

Swing traders can use the automatic trailing stop. Many traders tend to turn winners into losers as they get in the let it ride mindset. The trailing stop reduces the chance to let trades ride. This makes the decision making process fully automated. - 23208

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and forex. Develop your own Forex Trading System. Learn Forex Trading .

Basic Tips On How A Penny Stock Listing Make You Rich

By Malcolm Torren

You must have read from stock market websites and blogs how you can get rich from your small cap investments. And almost everyone wants to earn a good sum of money in their bank account. But getting rich is not a quick scheme and no get-rich-quick books will tell you that it happens overnight. It does not happen overnight. Even if you think you have the most reliable penny stock listing in the world, it still does not guarantee financial wealth.

Many people get the misconception that millionaires, or at least those who are better off got luck. Luck has only a little to do with it. It's all hard work. There are even people who life a low profile lifestyle but have fat bank accounts. Then there those who claim that they got rich because they have a dependable penny stock listing and they want you to try it.

Study this carefully and don't get easily swayed by the hype. Today there are so many opportunists who would do anything to get a piece of your savings. The penny stock market is one of the attractive avenues for them. If you want to get rich from your penny shares, follow these tips:

- Do not spend beyond your means. Always keep in mind that the general rule of thumb is always to buy shares at low price. When the value appreciates and when the time is right, sell it. But do not use up too much of your savings. Just allocate portion of it. A safe margin would ten percent. And spend only for the list that you personally picked and not from those who suggested it to you.

- Learn the terms, the language, the slang, and the major concepts. Any penny stock listing is useless if you don't know how to translate them. And to do that, you have to understand the back and front ends. Along that path you will be encountering so many stock market terms that may be alien to you. Terms like the PE ratio, ticker signs, liquidity, etc. Understand them and learn them by heart.

- Be reasonable about committing your investment money. Your stock list is supposed to showcase the hot stocks to bid. However, the list can change overnight. What is hot today may not be hot tomorrow and that happens all the time. Always double check on which penny stock you think is most likely to expect profit for you.

- Learn about the trade continually. Your penny stock listing cannot exist alone. It needs partners. Because in this business, the survivors are not the rich, the smart, and the strong. The successful investors are those who keep track of constant changes. These are the stock market trends.

In stock investing, there may only be one essential and major tip. That what makes you rich is not because you have a penny stock listing that guarantees success. What success means is dependent on how much work you are willing to put in your business. The ingredients to success are knowledge, rational analysis, and a roster of facts. If you want to be rich is really all up to you. - 23208

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