rob rens asked:

Have had a few questions on how I trade. I'll do a run through to the best of my ability on what I do, and how I do it. This may benefit some of the newer traders. Sorry, no visuals on this one!

First off, my most profitable stocks are swing trades. I guess this makes me a swing trader. This means that I mainly trade in 1 – 5 day patterns.

Why swing trade?

(i) Holding a stock long is a good way to make profits, however it doesn't maximize your profits. By following the trend, you can capitalize on all market movement.

(ii) Daytrading only works if you have the capital to move a stock, or are quick enough to lock in small profits during movement. Unless you have honed your trading skills, daytrading is often a quick way to relieve yourself of your savings.

Stock Selection

Here are the things I look for when picking a stock:

1) Volume. Is there enough volume that you can get in and out if you need to? Make sure that the daily volume is at least 20x that of your position.

2) Float. Anything under 50 million shares is a sign that the company is on the right track.

3) Filings. Does the company have a history of reverse splits? Go with your gut on this – if it doesn't feel right, than stay away.

4) Charts. If you want to trade successfully, you HAVE to understand charts. Stockcharts.com has tutorials on understanding trading patterns and indicators. You really can't make money unless you understand the tools that make you money. If you need help with the charts, ask some of the pros on this site.

5) Level II. Take a look at the level II. Is there a lot of resistance? That is usually a bad sign.

6) I am never rushed into buying a stock. Usually when you hear about a stock in the chat room, it is too late. Research using the points above … there are plenty of trains leaving the station and lots of opportunity to make money.

7) Every stock on the otcbb/pink sheets that is under 0.05 is junk. You will not find the next walmart or google in this group of stocks. Traders call this part of the market the 'wild west' – it is full of pumpers, scammers, manipulators, and daytraders. It is a good place to get eaten alive, because there are so many variables working against you. Market makers ***** short sell these stocks, they are often on the verge of bankruptcy, shells are created to funnel monies, etc etc.

If you are new to the game, stay away from otcbb/pink sheet stocks with headquarters or owners in Canada, Las Vegas, San Diego, New Orleans, Florida, or Mexico. An oil company headquarted in Las Vegas? Yeah, right. These stocks are junk, imho.

Don't diversify

If you only have $2000.00 to trade with, don't diversify it. Buy 2 stocks with good potential and keep a close eye on them. Become an expert on your stocks and dump them if they do not perform.

Don't fool yourself

Plan an entry and exit strategy before you trade. Pick your entry and stick with it, don't let your emotions take over because that is when you make a mistake. Let the stock come to you, if it doesn't … forget about it. Rushed money is lost money.

Stick with your exit strategy. When the stock gets to your exit strategy, sell. Don't fool yourself into thinking that "it's going to a buck". Because it isn't. You have to sell to make money

Don't go against the market. You can't change the direction of the indicators, so just go with the flow. Otherwise, it is like trying to bail out a sinking ship with a teacup.

Don't hold a dog. Every 50% loss started as a 5% loss.

Don't try and make up the previous loss on the next trade.

Mantra: "Bulls and Bears make money, pigs get slaughtered." aka. Don't be too greedy.

My entrance and exit strategy

I buy a stock just above the support levels. If the stock is not performing, I can dump it into the support. I do not let my losses exceed 10%

I sell a stock after gaining 11%. This allows for 30% gains every week, which really is pretty good. The only time I break this rule is if a stock is moving with a lot of momentum and strength. This being the case, sell when you see momentum slowing. Often, this will come as a "pop". A pop comes when a stock runs itself into a big bid/ask gap. You have to be on top of the action to see this, but this is a big sell sign. The top comes at the pop.

Buy low

Buy when things are looking most dismal. Natural gas and oil stocks getting pounded? Are the naysayers forecasting $30 oil? Huge oversupplies of nat. gas? Sounds like a time to buy.

Look at the charts

Take a look at weekly charts on stockcharts.com and get a feel for cycles that a stock may go through.

Okay, so I hope this helps a little. I will keep posting my picks for everyone. If you have any questions or concerns, about anything, ask them here! no question is too ridiculous. It is better to know, than trade blind

Canestsal of stockhideout.com Hot Penny Stocks and Penny Stock Picks

JD Reilly asked:

If you can't find a way to focus your efforts, you will not make money online. Plain and simple; believe me, if you've been seeking to making money online.

When I first got into the "make money online" field, I couldn't get focused. I was listening to this guy, that guy, another guy, every guy and got information overload and didn't take action.

I wasn't able to pick a project and stay focused and finish it. I would read an e-book or take some information from someone and try to put that information in use to make money for myself online.

Some of them had great information and I could make money from the information when I started that project. The problem was that I would never finish a project. I was always searching for something better. I was always looking for the next big thing. I was looking for something that didn't exist. I was looking for something that didn't require hardly any work and was going to make me a millionaire overnight.

There is no product that is going to do this for you!

I had the information in my hands to make a handsome living online. I just wasn't using it. I wasn't staying focused on a project long enough to see any returns.

I was lied to, like most people who get into the making money online field. We are told by people who want to sell their products to us, that we will make a million dollars overnight and don't have to do much work. Guess what, you won't make that kind of money overnight and it does take some work.

What you should do is pick out some projects and finish them.

Once you start finishing your projects, whatever they may be, creating a product, building a website, writing sales copy, writing articles, etc., the money will start coming in.

I always say that the toughest dollar to make online is the first one. There are so many people that don't make any money online and give up and go back to their day job.

The first dollar was definitely the toughest for me to make. I think it gets easier because once you have made some money online, you have broken down that first very important barrier down, it gets a lot easier.

You realize that you really can make money online and your confidence soars! You can just keep on doing what you were doing to make more money. Work harder and expand your business. Repeat what you're doing to make money and just keep expanding on that process and keep working on ways to improve your business.

Focus and hard work is going to get you a long way in life.

Using focus and hard work to make money online are the two major keys to success and don't let anyone else tell you otherwise. As you focus a "funnel" will be created to drive traffic, conversion of that traffic and ultimately sales. Focus and hard work are equivalent terms in reaching your objective. The one promise I can make, because I've experienced it, is if you will focus your efforts with your hard work you will achieve your desires!

Venu Modalavalasa asked:

Forex (Foreign Exchange, Forex currency exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.

Forex trading requires a constant monitoring. You can win the forex market if you can monitor the forex market all the time and should be able to analyze it. Trading forex needs a lot of research. Forex trading needs full time effort. It’s not so easy to win the forex market just by being a part time trader.

Whether it is full time trader or a part time trader, forex market needs a lot of technical analysis and fundamental analysis. Doing fundamental analysis is really very easier than doing the technical analysis.

A technical analysis is founded on three suppositions:

1. Movement of the market considers everything;

2. Movement of prices is purposeful;

3. History repeats itself.

Basically technical analysis should be viewed as the study of historical prices at the market in order to forecast or even know with greater probability in what direction the future prices will move. Technical analysis needs various technical indicators, different types of charts, graphical methods and analytical methods.

Technical analysis needs a lot of time, concentration and patience. At the end of technical analysis, you get an idea when to buy the forex and when to sell the forex in order make the profits.

As a part time trader, you cannot keep much time for technical analysis. It’s the work of full time traders. But in that case, how could a part time trader win the forex market?

Forex market is growing faster and faster than any other market in the world. Many latest tools have also evolved for the forex market. The solution for the part time traders is to get the forex trading signals or to use an automated forex trading system software.

Forex Trading Signals are selling and buying recommendations given by any third party. Such parties could be brokers, brokerage firms, analysts, traders, forex related software tools, etc. Different parties offer different signals, tips, and trends for trading in forex markets. It is best to collect daily Forex signals from reliable sources. A combination of fundamental and technical analysis forms the foundation of accurate Forex signals.

In the other way, the part traders should either subscribe for signals with any forex expert organization or they should have some automated forex trading system software tool which would do the technical analysis for them and automatically place the buy and sell orders for them.

If you subscribe for forex signals with any forex expert organization, the forex signals cost anywhere from $50 to $200 a month. It's up to the individual trader to decide if the cost is worth it. Don't think that signals can take the place of trader education: they are advice, and if you don't have the knowledge to analyze the advice, you should go back to the books before using a signal service.

Coming to the automated forex trading system software that generate the trading signals and place orders automatically, they are more handy. Generally the tools that are provided by forex brokers, they will be restricted to only particular currencies, but that would not be the case with the automated forex trading system software. These automated forex trading software systems will be available in the internet market and that too for a low and affordable price. There is no need for you to pay every month for these tools; it’s just a one time purchase. These automated forex trading software systems generally doesn’t cost more than $100.

The main advantage of these automated forex trading software systems is that there is no need for you to depend on any other forex signal providing organizations or on the forex brokers who serves you. These automated forex trading software systems directly get the trading signals for themselves and place the buy and sell orders for you automatically without any human intervention.

To catch up with fast growing forex market and to make good profits and consistent stream of income in forex trading, I prefer the automated forex trading software system. These automated forex trading software systems will be of more useful to both part time and full time forex traders.