Ascending Triangles -Short Trading Strategy

By Jeff Cartridge

Ascending triangles have been very popular with traders on the long side and are not so often traded when it breaks in the downward direction. An ascending triangle is defined by two lines, one on the upper boundary of the price movement which is horizontal and one on the lower side which slopes up.

Ascending Triangles Can Be Profitable Short

Most ascending triangles would be expected to break up and most of the time this is true, but 36% break out to the downside making it possible to trade on the short side. Just 44% of these breakouts are profitable and on average the profit per trade is only 0.31% over a period of 9 days. The ascending triangle is not one of the best chart patterns when it breaks to the downside, but applying some filters can make this pattern more attractive to trade.

Refine Your Entries

When you look at the performance of an ascending triangle in bearish market conditions you will see the results were stronger than they were in more bullish years. Despite this the pattern works the best at turning points, which occur when the stock and the market are in an up trend or consolidating. The sector should be falling or consolidating to make the best profits.

A breakout from an ascending triangle is best if it occurs later in the pattern, in fact all the way to the point of the pattern is good, but not near the start. The best trades occur when a down side break occurs after the stock bounces off the lower boundary and drops back before hitting the upper boundary.

Ensure that the volume is supportive of the breakout, i.e. volume as the stock falls is greater than volume as the stock rises.

Ascending Triangles Can Be Profitable

Incorporating these simple changes when selecting ascending triangles to trade short, dramatically improves the results. With an average return per trade of 1.07% in 10 days and a hit rate of 52% it is possible for ascending triangles to be traded short successfully.

Note: Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23208

About the Author:

Jeff Cartridge has been trading chart patterns since 1998 and created the website LearnCFDs.com Discover Patterns of Success

The Forex Phantom Software Review

By Will Jones

The popularity of Forex trading systems have been increasing for the past few years with an increase in the amount of people who start to trade on the exchange market.

In the last few years is the great interest in currency trading has led to an increase in the amount of people to trade in the currency market, this means more tutorials and strategies have been written and appear to have been trading.

What is a Forex Trading System?

A Forex software system otherwise known as a system of exchange of currency is a software tool used by more than 90% of all Forex traders around the world. They are among the most popular software tools used in the financial sector today and become one of the most advanced software in the financial sector.

Since the arrival of these Forex systems, they have advanced ten times where they are now starting to use more complex algorithms that are able to adapt to many, if not all market conditions.

These software tools are able to predict, forex market conditions for the traders and thus they are able to predict what will be the most profitable professions and trade, the risk free. This guarantees win Forex trading for the trading and make their job much easier.

You may be thinking well I have not got the money to purchase one of these systems, well think again they are generally sold at a great price and the one I talk about later is a fine example of this. Forex trading doesn't have to be your job, whether its a hobby or a career using one of these Forex systems will enhance your chances of winning ten fold.

Why Forex Traders Systems?

Many traders have chosen to use a system while Forex trading on the foreign exchange market. The reasons are obvious once you start using these systems. The benefits these systems bring astronomical are minimal such as commercial risks and the ability to investigate the profitability of operations simply by analyzing the currency market.

Forex traders have become dependent on these systems to enable them to quickly and effectively analyze the market and the specific objective of investing in businesses. One of the best points of these systems is that some may be left on autopilot so you do not even have to work or to your computer while the system analyzes market data and trades in and off-exchange market.

What to look out for?

With the increased popularity of these systems Forex like everything else comes with the different systems that do not have the quality and accuracy that some of these systems. These systems are generally published with sufficient tests in different market conditions and therefore are unreliable and can not guarantee profits.

In the past, these programs have been released with development in mind lazy, they have only developed simple algorithms which means that the software fits a certain market condition, after the market condition is, they become unusable until the same situation appears again.

The systems have also used complex interfaces which in some cases were to confusing for Forex traders, this has meant people have not been able to take full advantage of the array of features that is sometimes available on the Forex systems and instead they were unused.

How to choose a Forex robot?

Many people in the past have purchased the wrong Forex systems where these systems have arrived there were several developments that were made only to make money from people without providing real benefits to the Forex traders. Now, even if things have changed now, we still see many Forex systems that limit the amount they can benefit from their users, the key is to know what system Forex honest claims.

When searching for a Forex system you need to ensure the sales page does not make any unrealistic claims that are unreachable, even from the most experienced Forex trader.

Forex Phantom passes this test, with its own unique features and simplistic yet professional design it has become this years most anticipated trading system owned by all, that are trading in the market.

This system features a new advanced real-life algorithm that allows it to proceed with an exchange conditions. This is the first currency trading system, these advanced features and while it may sound complex, the system is an easy-to-use interface that even the least technically demanding and can make money.

Forex Phantom became the fastest selling foreign currency in the global trading system and in a few weeks. This system is designed to be beneficial and profitable to the user, designed by experts in financial markets and developed by software developers, it has exceeded its own expectations. - 23208

About the Author:

Interested in Forex software, want to know what the most popular Forex software is really like then take a look at the Forex Phantom system right now in this in depth review. Click right here for the Forex Phantom Review.

Mutual Funds - Worth Giving A Try

By Mike Swanson

You have a lot of options when it comes to making investments. Mutual funds are a good option, but not everyone is used to them. Investors supply money that is put into various different options. This might be a good choice for you to make, but first you must learn more about it.

To begin, you'll want to decide how you're going to buy the funds. You can do this directly or with a broker, but you can also go online or through an agent or your bank. No matter what, someone's going to make sure they only get the best investments, so you're going to want to learn as much as possible.

There are lots of ways to make this process work for you, but three are especially effective. First, there is capital appreciation, where you simply sell your shares for more than you initially paid for them. This is a good option for people who want to make money quickly.

If you don't like this option, you might want to try dividends or distributions. The first of these pays you as a stockholder, since a part of the company's earning goes to all holders. The second pays you in cash or more stocks when a manager sells a stock and passes on the investment.

The more you hear about these options, the more you're going to need to know about them. Whatever you do, put your money in as many different things as possible. That way, you might lose some, but you'll still have the rest in other areas, so you'll have to take fewer risks.

Of course, you're going to be taking on some element of chance. Thankfully, though, this is rather limited when it comes to mutual funds. In the end, you'll be glad you jumped into things and took the time to investigate an option other people might not ever be willing to discover. - 23208

About the Author:

For more articles from Mike Swanson sign up to his WallStreetWindow weekly newsletter.

Professional Forex Trading - How The Pros Trade

By James Oleander

Almost anyone can become a forex trader, because you dont need any highly specialized skills to succeed, and you definitely dont need a degree to be successful. As long as you have the basic aptitude for trading, you should be ready to begin.

However the ability to acquire employment at some of the higher-end, established financial institutions that deal in foreign exchange does take some work. It is important to have those valued qualifications and proper network of contacts. However, if you choose to conduct foreign exchange activities for yourself, with your own capital, then in addition to your own computer with internet connection, you don't need any qualifications at all.

Many forex traders work in the comfort of their own home, for themselves, and are successful. While I do have special qualifications that are helpful (a Finance and Accounting education), this type of knowledge is superfluous to being a forex trader and did not influence my success at all. You can be just as successful without a lot of finance or accounting knowledge.

Still, you're probably asking what skills you do need to begin this career. This is a very good question.

As for generalized knowledge, it's always good to have at least a rudimentary understand of the math, arithmetic, perhaps also some statistics. Those skills will help you analyze things faster and save you valuable time you can spend analyzing other aspects of the market. Aside from those things, you are pretty much set to begin your foreign exchange trading.

You have to have a high level of motivation and be unwilling to fail. This mindset will help you get over the rocky parts of your path to forex trading success. Forex trading requires a time when you will be testing the waters, which includes dealing with inevitable losses. It will take you a while before you learn the game and can start making more money than you lose. Until you start making money, you will have to rely on your desire to succeed to keep you focused on your goal.

This is a great career if you have the motivation because you can't be too old or too young. You can be a man or a woman, as it's expertise and the ability to generate profit that will be respected, not gender. Along with motivation, you have to be focused--eyes on the prize--and you do have to be disciplined.

So fundamentally, everyone on paper can become a successful trader on the foreign exchange market, no matter what your background. But in practice, it will be those who have the ability to stay focus and disciplined in the face of volatility and uncertainly. It is only with this seriousness of mind that you can venture into the foreign exchange market and use these markets for their extensive opportunities for profit and revenue! - 23208

About the Author:

To trade forex, you definitely need to check out this website: Forex Trading Platform Review

How To Buy Stocks

By Mike Swanson

We all know the market goes up and the market goes down. Thousands of people will give you advice on what their favorite stock is. But there are no magic answers as to which stocks will make you money, and which won't. When you are looking at investing in stocks here are three theoretical terms that might give you something to think about.

DEAD CAT BOUNCE: This is the temporary recovery of a stock price during a general downward trend. Often it is caused by rumor or market talk ups. People believe the stock has reached its lowest price and begin buying. The dead cat bounce effect means the price will drop again and they are likely to lose money.

What does it mean for me in stock trading? It is usually difficult to determine when a slide is going to turn around, so don't bank your house on a reversal. However for short term investors a dead cat bounce may present a selling opportunity.

THE BELLWETHER STOCK: This is a market indicating stock, one that predicts the direction of the market.

What does this mean for me? These types of stocks may not be attractive purchases in their own right; there may be little chance of growth realization. But they are stocks to watch when predicting where the market will go next. The biggest investors in these stocks tend to be the big institutional investors.

THE JANUARY EFFECT: This is the effect that sees the beginning of a new year heralding higher stock prices in January. It has been attributed to tax factors and to investor sentiment. People often unconsciously expect prices to rise in a new year.

Why is this important to me? While research shows the effect to be real, it is hard to turn these gains into profits. The chances have become less and less. However it is important to be aware of this phenomenon so that if an opportunity presents itself, you may be lucky to be able to take advantage of it. - 23208

About the Author:

For more on buying stocks grab our free stock picks newsletter.