Small Investors and Tycoons Can Share Their Views
As one imagines what stock market forums and day trader chat rooms are like, we must not look back to the smoke-filled rooms of the wall street mens club. Today’s financial forums are populated with a membership that includes teachers, laborers, students, and housewives, just to name a few. The purpose of these chat rooms, is to obtain knowledge and networking. This is where a novice can learn what the pros might do in any given circumstance. Small investors get to pick the brain of successful high-powered traders. There is always the possibility of getting a great tip, but mostly it is a place where like minded people can debate the state of the economy in general, and wall street in particular.
If you go searching for a trading forum, you must realize that there are chat rooms and message boards for every conceivable type of trading. For those of you that are seeking pinpointed answers directed at a certain type of trading, there are forums geared specifically for penny stocks, as an example. There are of course general investing forums as well. Take this example of a swing trader thinking of doing some day trading. I realize that there are so-called experts who lump all online traders into the bag of day trading. For the sophisticated observer it is plain to see the obvious differences. A day trader rides the rush of the asset, while a swing trader diagnosis the trends and holds onto it as long as the momentum last. This is the kind of issue you can discuss with actual day traders. There is a different set of rules that govern day traders as well, and you can be pointed in the right direction for that.
Another good reason for these forums, is the social networking it affords many of us. Online trading is not only precarious at times, but it can be very lonely as well. A chat room is not a place for ideal gossip but it can be a place to debate a trade you perhaps have just initiated. Does anyone else know about the asset? Letting other people know about your position can only help you, whether you’re going long or short. If your information provides the spark needed for others to get involved, than because you were there first, so to speak, it would only strengthen your position should others get involved.
Forums are also a place to discuss news and current events. A currency trader might be able to gain excellent Intel about a certain country from a citizen of the country. We only have to look to the amount of investors who rushed to buy into the healthcare sector, when erroneous news of the demise of the public option in the proposed government plan, had been leaked. Can you imagine two technical analysts discussing the downturn of AIG a month before it collapsed, and the kind of money they made because of this prior knowledge? I am sure that anyone in that chat room would also benefit from that kind of information. I believe that the only thing that separates an intelligent person from an expert is knowledge and experience. With the proper training you will gain knowledge and experience. These forums can’t provide you with training, however, you can pick the brains of people who are successful.
Trading is like gambling, make no mistake about it. However instead of just rolling the dice, putting your chips all on lucky 7, or hopelessly watching the little pea spin around, you can learn what is the equivalent of counting cards. There are three basis fundamentals, I believe that every foundation for sound trading should be built upon. Knowledge Training Software
Training Leads to Knowledge
Software and Technical Analysis Leads to Greater Profits
Let us assume that you have some knowledge or you wouldn’t be researching the market. Any training you receive should be for technical analysis, or you are just wasting time and money. As far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage’s technical data is too small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
It is No Longer a Simple Stock Tick
Candlestick Charting Will Light the Way to Profits
For those of you not yet familiar with candlestick charting, I will try to give a brief but accurate explanation. The Chinese invented the market concept, and the Japanese perfected charting techniques with the use of the candlesticks. It is easy to understand this complex system, if we simply break it down to the ticks on the chart you follow every day. We know that the lower tick is where the stock opened and the higher is where it closed. Now if we made the two lines parallel and connected them, what would we have? A candle. However, during that movement, the stock might have gone lower or higher then where it opened or closed, so our candle has formed a tail and a wick. Is it starting to make a little sense to you? Can you see the advantage of knowing this information, for getting in and out, and setting a stop loss?
I don’t profess to being an expert, but I do know of some. I obviously don’t have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. I have listed, complete with links, some of top Forums. Also, there is access to some of the top trading systems available including software, books, and newsletters.
Whether you are an inquisitive novice or a seasoned pro, Market Mentalist offers the online investment resource you just might be seeking.
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