Exclusive Trading

Financial In Market That would be nice wouldn't it - to find the next big winner in the stock market. Just take a look at these beauties on the US market (from 2004):

The Forex market is truly a 24 Hour Global Market opens from Monday to Friday. The Forex market starts each trading day from Sydney, Tokyo, London, and finally to New York. Regardless of whether it is in the day or night, there are always market participants actively trading the Forex market. Forex traders can respond very quickly to any currency fluctuations or breaking news immediately unlike the stock and future market. The ECNs (Electronic Communication Networks) in stock and future market are relatively new products derived as an after hours extension to the regular trading hours. Many of these ECNs have ill liquidity and there is no guarantee that a trade will be executed, or at a fair price. Usually, stock or future market traders would have to wait until the real market opens the next morning in order to execute a trade at fair value.

Oriental Trading TZOO
NTRI
HANS
TIE

Our study of the greatest stock market winners show the best stocks generally come from the top 22% of industry groups.

Financial Forex Forex Software What do they all have in common? Firstly, they were all momentum stocks. And secondly, they all made massive gains in a short space of time. These are:

CAN SLIM ®, Supply and Demand Our study of the greatest stock market winners validates what most investors understand.when demand for a stock outpaces supply, the price usually heads north. The best way to measure a stock's supply and demand is by watching its daily trading volume. When a stock rallies up in price, you want to see volume rise at the same time, which may represent institutional buying that can really power a stock's move. When a stock pulls back in price, you want to see volume dry up indicating no significant selling pressure.

Trading TZOO: 100% return in 6 weeks, 2004
NTRI: 400% return, May 2005 - Jan 2006
HANS: 1000% return, June 2004 - May 2006 (split adjusted)
TIE: 400% return, July 2005 - May 2006 (split adjusted)

One of the major rules within the stock market is that no person is allowed to trade within the stock market unless they are a certified stockbroker. A stockbroker, within the United Kingdom twelve million investor's trade in the stock market, performs every trade that occurs and each one has enlisted the services of a stockbroker.

Trading Financial System Before we continue, let me introduce myself. My name is Alex Chambers. I'm a UK medical doctor who has an interest in the stock market.

The U.S. is still king of the roost in terms of publicly traded companies (at least for the moment) with more than 51 percent of this category. the New York Stock Exchange (which actually has few biotech companies but virtually all of Big Pharma), the Nasdaq National Market, the Nasdaq Small Cap Market, the American Stock Exchange and the OTC Bulletin Board (for the penny stocks).

Day Trading So how do you find these stocks in a sea of many?

Forex Financial Trading The Of course, there's no magical answer. Don't believe anyone who claims there is (especially if they are selling you an expensive trading system or offering a "hot tip"). However, there are some tell tale signs that these type of momentum stocks give off to alert you to their presence, and I use these to scan the market:

Fortune Make Option Trading 1) They are forming new all-time highs

Science Of Financial Market 2) They lie dormant for a while, then suddenly "wake up" - ie. they break out of a prior trading range. This can be anything from a year or two to many.

Future Trading 3) They then experience rapid price rises with a marked increase in volume (the concurrent increase in volume with price is very important - it donates the stock is being accumulated)

Financial Sales Services 4) They are leaders of a new general market uptrend

Commodity Trading 5) They are generally priced greater than $10

Financial Services Trading This is in essence the system that Nicolas Darvas invented and used in the 1950s to make his $2million fortune - trading on week old data. Darvas detailed his exploits and how he created his system in his classic 1963 text, "How I Made $2,000,000 in the Stock Market". It's a great read and I highly recommended it. Many investors regard the text as a classic. In it he provides an honest and open look at his experience from his naive start to his eventual success. He lays out, in great detail, exactly what he did and how foolish some of his actions were. Then he explains how he came to find success by focusing on the price and volume action of stocks.

Online Forex Trading A key message of his strategy is as quoted as follows:

Financial Portfolio Trade "...My only sound reason for buying a stock is that it is rising in price. If that is happening, no other reason is required. If that is not happening, no other reason is worth considering..."

Sierra Trading Post I have created several pages in my website to describe exactly how Darvas did this, and how to apply it to the modern stock market - especially the stocks above that made such large gains.

Trading Financial Future In addition to the criteria above, I like to look for stocks which have a low float (usually under 30 million) and have have good insider ownership. These last two rules, however, are not set in stone. If faced with two stocks that look good, I would go for the stock with the lower float and higher insider ownership. When the price takes off in these small float stocks, it can really go off!

Forex Trading Software However, selecting stocks is only one part of a trading system. Just as important are:

Trading Post - Money Management and position sizing
- An entry and an exit strategy

Trading System Without these you are relying on your emotions. And believe me, trading emotionally is a recipe for disaster. You need a SOUND plan so you can sleep at night and not worry about your stock.

Forex Trading System Money management is of particular importance: you may wonder what this has to do with finding the "next big thing" in the stock market, but no single trading plan will ever be 100% successful hitting winners. In fact, most good traders hit a 40-50% run of winners at most - especially in the momentum stock market. But if you limit your losses in the 60% that don't make profits and use a sound money management plan, then you only need 2 to 4 out of 10 trades to be successful to make a nice gain.

Fx Trading I use a variant of Darvas' Trading System which is aimed at weekly trading (it can, however, be applied to any timescale). It has clear instructions on how to trail a stop loss to protect the profits as they appear. This is of particular importance with momentum stocks, when prices can go down just as quickly as they go up. Trailing stops have the added bonus of removing the worry of when to sell - is it the right time or not? You simply "cut your losses and let your profits run".

Trading Card If you're interested in more details and how I use apply this to real stocks, please check out my website. All information is free.

In Online Trading To your stock market success also,
Alex Chambers

Online Commodity Trading
------

Line Trading Alex Chambers is a UK medical doctor who likes to buy & sell profitable shares. He also likes to go out dancing and lie around in bed, as well as enjoy the company of ladies. http://darvas-investing.chambers-media.com

Forex Currency Trading

[ Comment, Edit or Article Submission ]