Building Money In The Business Of Trading

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Trading is a great business for making good money. If you play the market correctly and time your investments, you can easily beat the inflation. It is not without risks though, so you must play it right to make money. Getting into it without understanding the risks is probably the biggest mistake people make.

When it comes to investing your money there are some popular areas that are commonly used today. The first is the stock markets where people deal with stocks of the companies. The others are financial markets where actual currencies are traded. You have two options: the FOREX trading happens on a wide range of currencies where as the dollar trading is based on dollars.

Stock trading is a very well known business where you are trading stocks. Stocks are in general percentage ownership of the company. So when you buy stocks you are buying some ownership in the company. The idea behind the stock is that if the company performs well, they will share the profits and hence people are willing to pay for its ownership.

With currency trading like FOREX trading, a similar approach is taken towards currencies. Based on the government holdings, borrowing, loans, trade, etc the currency exchange rate between two nations changes regularly. People can tap into these changes to make money.

If the FOREX trading is always done on the basis of dollars rather than using the local currencies it is termed as dollar trading. Typically there is not a lot of difference between FOREX and dollar trading in terms of strategies or options.

In all these trading opportunities you are taking a risk based on speculation. You expect the rate or value to go up while there is no guarantee it would. However, it is this speculation that drives these markets and if you play it to the market trends and sentiments you can make decent returns on your investment.

Have you ever heard of Elliott Wave Financial Service? They know how to get business done. Follow us on Twitter today! This article, Building Money In The Business Of Trading has free reprint rights.

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Forex: Bullish Usd/Cad

U.S. Dollar moved nicely higher this week against the other major currencies, as the dollar index bounced powerfully higher from 200 SMA, discussed in the past post.

Our special focus is Usd/Cad, which moved for almost 400 pips higher since the past Friday, when unemployment data for U.S. and Canada were released. The pair reached 1.0500 resistance region over the past few sessions, from where a quite powerful reversal has been seen, as dollar was showing an extremely overbought picture across the board. In fact, even Asian stock market rose today, and slowed down the U.S. dollar gains.

It seems that oil also found temporary lows, around 75.50, and is driving the Usd/Cad lower. However, on oil we believe that an upward bounce is only temporary and that new lows will follow in the near-term. The Usd/Cad price action also suggests that the pair is currently trading only in a corrective pull-back, as we can count clear five waves up from 1.0107 region, which should be part of some lager bullish structure. If we get a nice clear three wave pull-back from the recent highs, then this should be a long opportunity. Personally, I would pay attention on 1.0250; blue wave (iv) zone.

What we do?!

Our team makes daily updates for Eur/Usd, Gbp/Usd, Aud/Usd, Usd/Cad, Usd/Chf, Usd/Jpy, Oil, Gold, S/P Futures and Dollar Index.

Members of our service will receive weekly and daily wave counts that are updated during the weekend or when the price action or pattern has changed extremely.

Members will also receive all 4 hour wave counts that are updated every day, before the European session gets underway plus the intra-day wave counts (less than 4 hour chart, such as 1 hour or 30 min chart) which are posted and updated during the European and U.S. trading sessions.

Our members and e-mail subscribers (free) will also receive an Elliott Wave Newsletter where we present our bias and anticipations for the next 24 hours for one or more selected currency pairs. This Elliott Wave Newsletter will cover the trading plan that will be based on the intra-market analysis and Elliott Wave patterns. A full detail of a potential trading signal will be sent on members e-mail only and NOT to free newsletter subscribers!

If you do not want to miss a trading opportunity, or if you don’t have time to analyze the charts everyday and monitor the intra-day wave counts then follow us on twitter, and check out Our Elliott Wave Service now You can get a unique content version of this article.

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Top On Stocks And Commodities Is Near!

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Hello traders!

The U.S. dollar is moving lower for some time now, driven by higher equity and commodity market, especially oil, which reached 82-83 dollars per barrel recently, and rose for almost $4 since Sunday open. Technically, oil moved into a powerfully Fibonacci resistance level, 76.4% retracement area of a previous decline (87.10-67.00), where usually a choppy and corrective structure reverses.

On the daily chart shown below, an upward structure from 67 region is very complex wave II, counted as double zig-zag move, which should be extremely near completion. Move to 83.50 is possible, before prices collapse.

We are also looking for a top of an upward zig-zag formation on the S&P 500, which seems to be trading in final stages of a current up-trend. One hour chart shows that a red wave 5), final sub-wave of wave (C) of a larger wave II, is underway, and will probably test the 1130-1140 resistance region in the coming sessions. Traders will watch this level very carefully, from where a technical bounce on the down-side may easily appear.

So, if S&P and Oil up-trends are near completion, then top on Aud/Usd should also be very near. However, be careful with any Short positions on that one for now, as we may see test of 0.9200 zone, before a turning point can be seen.

What we do?!

Our team makes daily updates for Eur/Usd, Gbp/Usd, Aud/Usd, Usd/Cad, Usd/Chf, Usd/Jpy, Oil, Gold, S/P Futures and Dollar Index.

Members of our service will receive weekly and daily wave counts that are updated during the weekend or when the price action or pattern has changed extremely.

Members will also receive all 4 hour wave counts that are updated every day, before the European session gets underway plus the intra-day wave counts (less than 4 hour chart, such as 1 hour or 30 min chart) which are posted and updated during the European and U.S. trading sessions.

Our members and e-mail subscribers (free) will also receive an Elliott Wave Newsletter where we present our bias and anticipations for the next 24 hours for one or more selected currency pairs. This Elliott Wave Newsletter will cover the trading plan that will be based on the intra-market analysis and Elliott Wave patterns. A full detail of a potential trading signal will be sent on members e-mail only and NOT to free newsletter subscribers!

If you do not want to miss a trading opportunity, or if you don’t have time to analyze the charts everyday and monitor the intra-day wave counts then follow us on twitter, and check out Our Elliott Wave Service now This article, Top On Stocks And Commodities Is Near! has free reprint rights.

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European Stress Test Results: How Stocks Will React Now?

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Equity market was higher this week with S&P 500 up around 3.55%, and finished the week above resistance line connected from May 11th, 2010. At the same time the prices moved and closed above the 50 day SMA, for the first time since early May when S&P was falling from its highs. Technically the stocks market is now headed higher, towards the 1140 region, as we also pointed out in one of our past newsletters. In fact, markets now have a reason to move higher as the European Street tests results were positive, and only 7 of 91 banks failed the test, less than analysts expected. But the next question is how high can the market go and how investors see the European Stress tests results. Was the stress test too easy, and markets may react negatively?! Well, I am not fundamental analyst, so all I can say that time will tell if banks have enough of capital or not. Anyway, let’s see what the Elliott Waves are telling us.

Technical and “psychological” turning point on the stock market is still on my radar as I count five waves down from 1220 top to 1010 lows, followed by an upward bounce, which I believe it’s only a correction, black wave II in our case. Recently the sub-wave (C) of wave II got underway, which is now trading towards the 61.8% retracement level of a previous decline and also 100% projective level of wave (A), measured from wave (B) 1056 low. The upward target and also the significant resistance zone at the same time is around 1030-1040 region, around wave (4) top. If wave count is correct, then a turning point from there should send the S&P 500 back down, towards the 1010 region and even lower, while the 1220 top is in place.

S&P daily chart :

So, with S&P moving towards the 1030-1040 region, then Aud/Usd, which is one of the most correlated pairs with the U.S stocks market, should also move higher in the next week or two. Upside region that I will pay attention on is 125 pip range, 0.9050-0.9175 region, where upward price action shown from 0.8065 may find a top, since the structure looks clearly corrective, double zig-zag pattern.

Aud/Usd daily chart:

Euro is also showing a significant up-trend from 1.1875 low, and it looks that bulls are not done yet, either the upward structure is unfinished impulse wave or double zig-zag pattern. Move above the 1.3030 is expected considering to Aud/Usd and S&P wave counts, but the question is if wave (B) has already bottomed at 1.2730 region or not! On the one hour chart (shown a little bit lower) you will see that the price action suggests more upside to come, if you count a decline from 1.3028 as a three wave move. We will wait till Monday, before we send any signal to our subscribers, because firstly we need to see how European markets will react to stress tests results; test was for European banks, remember?!

If you do not want to miss a trading opportunity, or if you don’t have time to analyze the charts everyday and monitor the intra-day wave counts…we are here for you!! Check out Our Elliott Wave Service now and Register today.

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Stock Market: “Market Psychology And The Wave Structure”

The stock market was higher in the past week and pushed the U.S. dollar index down towards the 84.00 support region. The overall price action however, was very slow on forex, even when the Wall Street session saw a bounce for more than 3% on Wednesday, the most since May 11th 2010.

The Eur/Usd moved higher from 1.2555 Sunday open to 1.2722 weekly highs, but on a very thin volume and slow price action. The reason for a slow, upward price action could be a falling trend line from 1.5140 region (December 3rd, 2010), which in fact reacted as a huge resistance on Friday during the European session when the Eur/Usd fell from 1.2722 highs towards the 1.2600 region. The weekly close on the pair was around 1.2640, 80 pips below the trend line resistance, and that could be a bearish signal for the start of the coming week (Monday, Tuesday), as traders were unable to push the pair above the trend-line.

Dollar, however, will strengthen only if stock market finds sellers. But for the mid-term, that could be a problem, especially because of the S&P 500 wave structure. From an Elliott Wave Perspective a bearish run on S&P 500 from 1.2220 top is not over yet, no doubt, but the question is how to count a decline?! Well, we are monitoring two wave counts and important price points that will confirm the correct count. Anyway, what we know, and what is the most important, is that a recent bounce from 1010 region is only a correction, a short covering rally from an oversold bounce. But where this correction will end?! It may trade up even to 1140-60 region, IF YOU COUNT A DECLINE FROM 1220 A LEADING DIAGONAL as shown on the chart below.

Well, if 1140-60 region is reached while the 1010 support holds, then optimism will come back into the market, and investors will move from Short into Long positions and they will be sure that a decline from 12220 was only a correction and that new highs are next. But at that time it will be too late to buy the market!! Market will reverse and will fall like a stone, because when something is fully expected, the opposite reaction is seen!! Like the past week per example; a lot of traders and investors, even I, were expecting a huge move lower after the 1040 was broken, but market made an opposite move, it bounced higher and took out traders that were looking for a huge Short move and also those who were positioned Long with stops down there!!

If you are an Elliott Wave trader, then you exactly know what I am talking about. The Elliott Wave Theory is a detailed description of how groups of people behave. It reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific and measurable patterns. Elliott Wave Theory gives you an ability to predict the Long-term and Short-term market moves with some very simple rules and guidelines.

If you do not want to miss a trading opportunity, or if you don’t have time to analyze the charts everyday and monitor the intra-day wave counts…we are here for you!! Check out Our Elliott Wave Service now and Register today.

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