Investment Vs Trading
Investment and trading both involve the purchase of assets in the hope that they will appreciate in value. However, there are significant differences in these contrasting approaches with the prime differentiator being the time frame involved.
Investment is something everyone should be involved in to some extent or another. Many do not consider themselves investors, but if you own (or are purchasing in mortgage) your own home or have a pension plan or insurance policy then you are an investor and your financial well being depends on the performance of stocks and/or real estate.
Online Brokerage
Like everything else, stock market has also gone online. In fact, with online stock market, things have become easier for stock traders. There are many benefits associated with online trading. One of these benefits is online brokerage. Though online stock brokerage is related to stock trading online, its concept and functioning is similar to traditional brokerage. It is there to help stock traders in managing their stocks and finances in an efficient manner.
Trend Trading Or Counter Trend Trading - Which Is Best?
When I first starting designing and testing trading systems, back in the early days of personal computers and trading software, I immediately gravitated toward counter trend trading. I would put up a stochastic, before I even knew what it was measuring, and my eye went right to all the divergences. A divergence is a basic counter trend pattern, where the price makes a new high, for example, and the indicator makes a corresponding lower high, thus forming a divergence with the price. The idea is that the new price high was not confirmed by momentum, which in this case was losing strength. When this pattern is seen, it is thought the market might have put in a high for the move, and it might turn around and go in the other direction.
