Making money quick in the stock market using moving average strategies

Making money in the market does not have to be complicated. Moving averages can be a simple way to make easy money in the market. I am going to talk to you about an easy way moving averages can show you what a stock is going to do in the short and medium term. When I learned this I was blown away at how simple and affective it was.

Let us say that we want to make a short term trade, between 1-10 days. Do a screen for stocks in a new up trend. Bring up the chart of the stock you are interested in and bring up the 4 and 9 day moving average. When the for 4 day crosses over the 9 day moving average the stock is going to continue up and should be bought. But as soon as the 9 day crosses over the 4 day it is a sell signal. It is that simple.

In the medium term you can use the 20 and 50 day moving average. Just like with the 4 and the 9, when the 20 day crosses over the 50 day moving average then the stock will continue to climb in the medium term. Once the 50 day crosses over the 20 day however, the stock is probably going to trend downward. When combined with other stock signals, you can begin to be confident in a very high probability system that will make you money.

Using stop losses is very crucial when using these signals. Remember, the goal is lose small and win big. No system is flawless. Stop losses will protect you from losing your shirt because of a bad call on your part. Also do a little fundamental analysis on the stock as well. You don't want to be putting your money into a broken company. If you think you don't need any fundamental analysis, remember a lot of traders and investors lost boatloads of money because they didn't pay attention to the news. I would also recommend using deep in the money calls with these signals. This also allows you to reduce the capital you are risking while maximizing your returns. I'll try and write an article about this strategy soon.

At the end of the day, if you stay disciplined with these signals, you can make consistent money trading in the market. Look at the charts yourself and see how affective these signals are. Also look at more information on deep in the money calls. I learned about those from Jim Cramer's book "Getting Back to Even". Again another amazing system that no one really talks about. Making money in the market can be simple. You just have to have patience and discipline. So test out this system and make some money.

Beat the Market and WIN with MSN CAPS Contests

Put your best investment ideas to work and you could score an easy $2,500 in MSN CAPS Beat the Market competition. Pick one stock or a bundle, and add more along the way. The highest ranked player (determined by 2/3 score rank and 1/3 accuracy rank, based on CAPS rankings) takes home the top prize. Also up for grabs is an Xbox 360 Elite System and a Zune digital media player. Good Luck! (Must be US resident 18+)

You must have between 1 and 99 picks at all times to be eligible for this contest.

http://msncaps.fool.com/Contests.aspx

Step 1. Players make stock predictions
At the heart of CAPS are thousands of predictions. Players predict whether stocks will outperform or underperform the S&P 500 and over what time frame this will happen. We compile the data, showing all the picks you have made and all the picks for individual stocks.

Step 2. We keep score
As stocks change in value, we evaluate players' predictions. Players receive an accuracy percentage, indicating how often they make correct predictions and a score, which is the percentage by which their picks beat the S&P 500.

Step 3. Players receive CAPS ratings
Based on the performance of their picks, CAPS players receive a percentile rating (from 1 to 100). This rating indicates the percentage of people that player is outperforming. The higher the rating, the better!

Step 4. Stocks receive CAPS ratings
A stock's CAPS rating is the aggregation of every prediction for that stock. The rating indicates whether or not players think that stock will outperform the S&P 500.
Important concept to follow... pay attention!! Here it is:
Players with higher ratings have more influence on a stock's rating. If you're a great investor with a great track record, we think what you have to say is very important. So, we give you more weight. However, if you don't know the difference between a stock and a parking ticket, we're not going to allow you to affect the company rating very much.

Step 5. CAPS gets smarter
Every CAPS rating is updated every five minutes. And with each additional prediction, CAPS recalculates and recompiles the data, constantly refining the community sentiment. Over time, the best investors will naturally work their way to the top and will gain more influence over the stock ratings. Conversely, the less successful players will have less impact. And then the cycle repeats. Players make more predictions, which affect their player ratings, which affect the stock ratings, and so on. The result is a service which will help you find better stocks and follow the best investors.

How To Improve Your Trading Skills

I believe every trader constantly asking that question on how he/she can take he/her the next level. I have found this rule very useful and universal, and yet not many people paying much attention on it. So I guess it could be an edge once you understand it and utiiize it fully.

Rule of 80/20. Once understand it, you can apply it to many areas and knowing where to focus your energy to get the max output.

Basically this rule states that 80/20 is the proper ratio for many things at final end.

Example:

1. In US 80% of wealth is control in 20% of population.
2. 80% of your income will come from 20% of your skill set.
3. Freeway usage, 20% of the time will contain 80% of the traffic. (traffic jam)
4. 80% of the market volume came from 20% of the people.(Institutional involvement)

But a lot of time the ratio could be 90/10, 70/30 or 60/40. Basically the idea is that things are not evenly distributed as 50/50, there is bias toward one side and the ratio of 80/20 usually can give very good approximation.

As an individual trader, how can we improve our end result base on this rule.

Basically, once you got enough data, you can then find out which system fit under this rule, then improve on this system

For example: you have 5 different systems. and one of them performs better then all other 4 systems, and produce the 80% of your profit. Then by increase position size on this system, you will be able to produce much bigger result.

Come to think of it, the famous turtle trading system utilize this concept well. Turtle system will add to a position when the trend is on its side, then keep adding positions until the market go against it.(but it dose have a max size allow for each position).

So in other word, when it catch a trend, it will capitalize on it. even with a 30%-40% winning ratio, turtle system was able to get an good annual return for its investors.

These are some the best traders who max out this 20/80 rules. when that 20/80 ratio show out, capitalize on it will improve your trading result dramatically.

PS: I do not recommend people to just using trend-following system, especially on intra-day bases. These are just meant to be an example. Basically trend-following system needs a lot of money and nerve of steel, and most people just do not have that combination.(my opinion on trend-following system)

Applying Poker Strategies to Trading The Markets

As a professional no-limit holdem poker player prior to my trading career, I find that both professions share many similarities. Poker and trading are both a game of probabilities. Individual psychological makeup is also important to control emotions during times of tilt and euphoria.

In poker, a player can choose the stake he is willing to play. In the futures markets the stakes are chosen by the size of the trade. However, one of the biggest differences I found is as follows:

1. In poker, you are automatically offered the option to play a hand that you are dealt. For example, in no-limit holdem this can be a Q10, KK, 10J, 2-7, etc....

Each starting hand begins with a probability. For example, pocket 9's has a 52.4% favorite against an AK suited. The odds of getting dealt a pocket pair are 5.88%.

2. In trading, you are not automatically dealt starting hands. Starting hands in poker equals setups in trading. In order to hold a pocket pair, you must find a trading setup.

Each setup has its own set of probabilities. A setup that offers a 80% winning probability should be ranked higher than a setup that offers a 50% winning probability. The more setups a trader has the more ammunition or hands he has to play with. If a trader only trades moving average crosses, this is like playing only a KQ in poker. In poker, waiting for pocket AA's will slowly drain your capital with blinds and is definitely not the way to get rich. However, a poker player who is flexible to play a variety of hands with a variety of styles is the better player.

A trader needs to have different entry/exit and risk parameters for each setup. If one of your setups involves moving average crosses, make sure you apply different entry/exit and risk parameters from a scalping setup.

I like to consider my trading freestyle. I am very flexible with the different setups I have. Trading requires creativity. Novice traders apply too much science into trading and not enough art.

Trading should be compared to a game of limit holdem. No trade is worth all your chips so do not hold a no-limit mentality. When in doubt, stay flat. As long as you play the right hands and control your losses, a trader should come out ahead.

Good luck and best of trading.

USB 3.0 from Intel, Buy Intel (INTC) stock

PCWorld reports that a faster version of the Universal Serial Bus ports are on the cards… Intel, spearheading the movement, along with other companies, are working together to promote USB 3.0.

USB 3.0 is said to deliver 10 times the speed of USB 2.0. The data transfer rates for USB 3.0 are charted at 4.8 Gigabits per second (Gbps) (the speed of USB 2.0 being 480 Mbps).

Intel stated that the USB 3.0 specification would be optimized for low
power and improved protocol efficiency. The USB 3.0 ports and cabling
will be designed with both copper and optical cable capabilities,
meaning even higher speeds will be possible in the future.

Intel has already unveiled a Wireless USB transfer format, operating at 480 Mbps.

These improvements, as usual, will mean a lot of implications…

* USB 2.0 obsolete
* USB 2.0 cheap as hell
* Increasing dependency on USB… Maybe even for local networking?!!
* Damn fast pen drives!!!

Hopefully, we’ll see USB 3.0 by next year.

Buy (SIRI) for long term

An influential advisory firm for institutional shareholders recommended its clients vote in favor of Sirius Satellite Radio Inc.'s (NASDAQ:SIRI) planned acquisition of rival XM Satellite Radio Holdings Inc. (OTCBB:XMSWW) (OTCBB:XMSRZ) (NASDAQ:XMSR)

It appears that combination would allow shareholders of both companies to participate in the expected benefits of the larger entity.

Big retail investors are running this up nice and slow since $2.76 mark.

Stock will jump to $4.60 to $5.60 a share.

Stock pick: Short (ORCL) and make money

Oracle (ORCL) walks out on BEA Systems

Oracle Corp (NASDAQ: ORCL) withdrew a $6.7 billion (or $17 a shares) bid for business software maker BEA Systems Inc (NASDAQ: BEAS) on Sunday, setting the stage for a proxy battle between activist investor Carl Icahn and the BEA board.

(ORCL) has strong signal towards downward movement at $20 ish levels.

Will a share of Google be worth more than an ounce of gold?

They’re less than $100 apart now. Google, Inc. (NASDAQ:GOOG) has had an incredible run-up — far higher than I ever thought it would go, honestly. I thought the IPO was high at ~$100. It was within a buck of $700 at one point yesterday. Shows you how much I know — after all, the market is always right. GOOG closed over $15 higher on buzz of the Google Phone.

Gold, as well, has had a great run-up. It’s teasing $800 per ounce after blowing through $700 around Labor Day. Any number of reasons could explain the buying: a weakening dollar, increased tensions with Iran, the problems with the credit markets, the housing slump. Whatever the reason, people like gold these days.

Both are susceptible to drops in a recession. Gold might be sold to raise cash as necessary, or businesses will cut back on their AdWords advertising to meet payroll. Gold doesn’t answer to anybody, but Google must publish financial statements and must deliver earnings to stay in investor demand.

Man, if only my crystal ball were out of the shop. Any prognosticators out there?

8 Hot Stocks Under $8

Here are eight intriguing stocks that happen to be trading for less than $8 apiece. It goes without saying that you should do a little homework on your end before considering any of these risky critters for your own portfolio.

Hastings Entertainment (Nasdaq: HAST): $7.28
Consumer Portfolio Services (Nasdaq: CPSS): $5.10
CNET Networks (Nasdaq: CNET): $7.44
Jamba (Nasdaq: JMBA): $6.67
InsWeb (Nasdaq: INSW): $7.00
TiVo (Nasdaq: TIVO): $6.32
IMAX (Nasdaq: IMAX): $3.99
Sharper Image (Nasdaq: SHRP): $4.72


Yes, a lot of these stocks aren't for the squeamish. Some aren't currently profitable. Some aren't currently growing. All are currently unloved. However, that's usually what you get when you pan for gold in these shallow waters.

7 signals of a rising stock price

The Seventh Sign

Let's take a look at the seven horsemen that ride along the horizon before "Anystock USA" starts to pull in profits hand over fist.

7) News and rumors: Takeovers, acquisitions, mergers, new CEO's, accounting irregularities, new product announcements, and world events are just a few situations that tend to effect the price of the underlying and one sign to look for when your fishing for winners.

6) Options: As you sift through the option chain it is fairly easy to see where the speculation lies. Ultimately, high open interest on any strike price means that someone is most probably hedging their positions but it could also be used as a clue to future events, or at least anticipated ones. The higher the open interest, the more it catches mine.

5) Analyst Upgrades: When Goldman Sachs, UBS, Lehman Brothers or any of the other top financial firms upgrade a stock or initiate coverage, there is a good chance that price movement will be on the up-and-up.

4) Stochastic: This handy formula identifies overbought and oversold points at which you should watch for price reversal. Investopedia will break down the math for all you engineers out there.

3) MAC-D: Moving Average Convergence / Divergence can be a very powerful indicator, especially when combined with Stochastics. Using one to confirm the other is a great way to super-charge your screening process. As with number 4, see the online investing encyclopedia for details on how this works.

2) Volume: Almost always precedes price. When you look at a chart of a stock that has already made a large move, usually a few days before, the volume moved slightly above average and the price did little or nothing. This is one of the more powerful clues for those who know how to read into it.

Last and perhaps the most valuable and accurate indicator of a raising stock is price movement. When you stop moving forward, you automatically move backward. If you throw an apple up in the air it will lift, lift, lift and then slow to almost a stall before it starts to drop back down. (It just happens so fast you may not be able to see the stall). Looking at charts and numbers is much easier to see when something has slowed or stalled from its current momentum.

If you wait for all 7 horsemen to appear before making an investment, you may find your time better spent watching paint dry. These are however, seven ironclad keys that you may use to boost your bottom line.