Learning About Forex Trading: Article No.1 Forex Technical Trading and Automated Forex Robot Trading

Most Forex traders tend to use and favor one of the two Market prediction methods when working out a market buy or sell position to take a profit.

While technical analysis concentrates on the study of past market action through examining charts from price previous exchange value movement, fundamental analysis focuses on the economic forces out in the world at large which should. Will cause prices to move higher, lower or stay the same. Both systems are used by traders to monitor the market daily in detail however, some of the worlds most experienced Forex traders have developed a Forex robot trading tool to make effortless and profitable trades through automated Forex positioning, enabling them to spend less time monitoring the market in detail while the Forex robot works 24 hours. Sophisticated software positioning and many trades taking lots of small profits on nearly every trade, adds up to an overall profit position over weeks or months that's astonishing.

Advantages and Disadvantages of Common Stock

By purchasing shares included in common stocks of a company, you're entitled to proportional ownership, or what we call in stock market terms, as equity, in the company. To understand it through simple maths, consider that a company XYZ is issuing its 100 common stock shares in the market. If you purchase 10 shares of XYZ company, then you'll be able to own 10% of the company! Besides this, there are some other advantages of common stocks, that can make you feel great as an investor. The fact that shares in a common stock give you an opportunity for proportional representation in the public company, may lead you to assume that you have fair chances of high returns in the company. Well, truth to be told, common stocks are not so simple when it comes to returns. As an intelligent investor, be informed about both facets of common stocks and make wise investment decisions.

Advantages of Common Stocks

Right to Vote in Issues of the Company

After buying shares in a common stock, you're entitled to speak in the matters of the company. For every share you purchase in the common stock, you're awarded a vote. You may be asked to vote for electing the board of directors in the company or in decisions regarding mergers and acquisitions. Higher the number of shares you've in common stocks, more will be your voting power.

High Dividends on Increased Market Value

Since you have a partial ownership of the company, you will be awarded dividends and profits with the increase in market value of the company stock. If the company performs extremely well and it becomes more valuable, you will be able get capital gains, that are a measure of the worth of the company. Similarly, in case, company profits by its business, it may decide to...

Technical analysis involves the critical examination of how one currency has moved against another historically, usually by looking at the movement of trade value between one currency measured against another as shown in a graph or chart for a currency pair. This can be powerful in itself as the chart can reveal major market psychological resistance and support levels for a currency that can show where a currency may have difficulty breaking past a point, in exposure to the current fundamental pressures. For example, if a currency value on a chart attempts to break a price level several times. Continues to fall back and then try again, it can be said that it's a resistance to go beyond that price level and the number of attempts may indicate the level of resistance. (remember –. Market value changes are very much driven by speculation and price differences are influenced my many factors –. Some irrational such as the emotions, hopes and bias of people trading in the mark!

et.)

Disparity and lag between these irrational factors and the more rational fundamental changes in currency values create movement changes in value giving rise to a basis for trading and opportunity for profit) Traders look for “double or triple tops etc”. Peaks on price levels (and similarly on bottoms for strong price support levels) to indicate a resistance and they know that if fundamental forces are finally strong enough to push past the price resistance barrier, then the price can spike up rapidly (or down), like a pressure being released. Traders will try and predict how far the spike may go or how far onward trading may take the price above (or below) an old resistance level.

Tradingpatterns.com Announces the Release of Version 4.9 of APS Automatic Pattern Search

New York, NY (PRWEB) January 25, 2006

Tradingpatterns.com announces the release of version 4.9 of APS Automatic Pattern Search, a software program that discovers price patterns that fulfill user-defined performance statistics and risk/reward parameters by searching historical market prices in a fully automated way. Version 4.9 of APS includes a number of new features and enhancements, as well as, several minor bug fixes and improvements.

APS Automatic Pattern Search implements an advanced algorithm that can search historical prices of traded financial instruments for the purpose of identifying price pattern formations that can be used as indicators of short-term price direction. These price patterns can serve as building blocks in the development of short-term trading strategies for the equity, futures and Forex markets. APS Automatic Pattern Search offers a powerful alternative to systematic technical trading, which traditionally involves a lot of guesswork and trial-and-error testing and analysis. The program searches for trading system models based on price patterns that fulfill the performance statistics and risk/reward parameters specified by the user. It then generates the exact mathematical description of these trading system models and code for their implementation in popular real-time market analysis and trading system development platforms.

The back-testing and analysis capability offered by popular technical analysis programs is useless unless their user can come up in advance with a promising trading model. This often leads to a very tedious, time-consuming and frustrating development process. Finding a profitable trading system using traditional methodologies is equivalent to "looking for a needle in a hay stack". Dealing effectively with the realities of trading system development is one of the reasons APS Automatic Pattern Search has been called “a breakthrough in trading system development”. This program implements the concept of "Forward Synthesis of Trading Systems” developed by Michael Harris in the early 90’s. The...

In times where economic conditions are stable, currencies tend to trade in a value band and gradually move up (or down). Depending on how stable the currency pair is will determine how far back the trader will have to look with the chart of currency exchange value to identify the historic direction that the currency has been moving. From the peaks of price change movement the trader can identify trending lines for indicating the rate and direction of value change. Knowing where and when to exit the market is the key to profitable trading. The novice can benefit from automated Forex robot trading to do this for them.

Look out for the next article where we'll look at what the Forex fundamental trading method is all about.

Thanks for reading and see you again for the next article.

Eric Bray