What is the difference between a stochastic and a moving average line?
Answers: The information you request AND A WHOLE LOT MORE can be found at
http://investopedia.com
This is one of Y! A' "Knowledge Partners" Its a free site. I use it very often.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Without getting too complicated, a stochastic is an overbought/oversold oscillator that mathematically attempts to relate the current stock price to the recent high and low of the last x days. A simple example is if the last 20 days high was 100 and the last 20 days low was 80 and the current price is 90, the 20 day stochastic reading would be 50%. It's often smoothed, but you get the idea. It's also plotted below the stock price chart since it's on a different scale. Everybody uses and interprets it differently, but the general feeling is that a reading under 20 is "oversold" and a potential buy and over 80 is "overbought" and a potential sell or short.
A moving average is nothing more than a smoothed price line and is plotted on the stock price chart. A 20 day moving average, for example, would be the last 20 days closes summed up and divided by 20. It would be plotted on todays price bar and calculated new each day. Technicians often use moving averages for support/resistance and a whole bunch of other reasons. Some will buy as the price crosses the line on the upside and vice-versa.
Which is a better mentor Donald Trump or Sir Richard Branson?
I wonder which one is better the American or the British.Answers: No contest. Sir Richard Branson! Trump was born into money. It's unproblematic to make money when you can collect with your dad's business partner, hand them you father's money, and sit while you procure profit returns.
Once his father was out of the picture he showed the world that he be a failure at business. He did this by file for bankruptcy more times than I can bring to mind!
http://en.wikipedia.org/wiki/Donald_Trum...
His casinos fail, his show fail, his cologne fails, his clothing lines fail. In business school we adjectives consider him a clown, professors included!
Branson on the other hand is revolutionary. He bungled with Virgin Cola, yes, but he have the guts to take on Pepsi and Coke which is extraordinarily commendable.
Someone who always have to be the center of attention wouldn't be my first choice for a mentor. A couple of weeks ago, I took my first flight on Virgin Atlantic and later read a piece surrounded by the New Yorker about Branson. He win this one. No contest.
Has anyone ever hear of Automated Forex trading?
What are the pros and cons.Answers: Pros: Easy to use and it doesn't take any work at adjectives.
Cons: Most of them don't work, and since you're not trading on your own (the pc does adjectives the work), you're in serious risk.
I tested plenty of automated systems and so far I single found 1 that works. It's the autopilot system, and you can read more about it at http://www.forextopten.com/forexautopilo...
Boy... I yearning I had the time to step into this for you.
Here's the bottom line. 96% of adjectives new traders lose most of their accounts when they try FX.
The biggest problems next to "alert services" and "automated services" is "drawdown". Until you get involved... you'll hold no idea what valid pain is.
FX's worst sin is the vendor. Brokers, services, etc. all label FX look easy. "Everyone can become rich". If this be all true you would enjoy heard of tons of society leaving he neighborhood for strange mansions.
If you must try this... read as many books as you can over the subsequent 6 - 12 months.
Hi Henry,
Here are some useful articles you might want to help yourself to a look at to learn more in the region of automated Forex trading...
1) http://ezinearticles.com/?Forex-Trading-...
2) http://ezinearticles.com/?Forex-Trading-...
3) http://ezinearticles.com/?Forex-Trade-Si...
Hope I've been competent to help!
My personal view is that automated = huge risk. It's what the big pro businesses do - and is what triggers things like stock bazaar crashes when events that were not programmed surface and send the systems into a nutty sell downward spiral. So not for the woozy hearted!
For signal generation one and only, well yes, conceivably - If you know (really know) what the signals mean and how best to use them for a acceptable % return (as we all seize losing trades no matter how polite the info is...the market can stay crazy longer than you can stay solvent as the saying go!)
So pros - auto generation of signals can be outstandingly good when you know the business. It will cut greatly of time and work out of the loop.
Cons - You really need to know your stuff formerly it is effective as otherwise you are trading on information that you do not fully read and that is inherently treacherous.
So, take your time and be totally very alert or you can lose your shirt (or more)
Read about it, draw from starter courses and when you feel in place get an narrative, a mini type that you can dummy trade on and do dummy trades for as long as it takes to get hold of comfortable and confident.
A word of warning here, beside dummy trades it is easy to be not giving anything away as real money is not involved. Once the actual thing get involved it is much easier to fall casualty to greed and doubt i.e., push a trade to far in the hope of squeezing adjectives the profit out or follow it down in the hope it will reverse.
Doubt, similar to greed but indecision on when to acquire out or even into a trade.
So dummy trade until the mechanics are second nature and afterwards trey the smallest trades possible and see how you react to events to assess if you own the mental set up to do it. If you don't (and that's not a bad forethought on you as most people do not) next I'd advise trying equity spreads which can be smaller amount vicious or even just obedient old valid shares in a trade on the dips or cycles path.
I don't trust in Automated Forex Trading. No black box system works forever, and when an automated system stops working, you're not contained by your computer to turn it off.
In my belief there's only one route to make money within Forex. You need to swot up everything that you can, and develop your own strategy. If you're using a black box system, you don't know why the program gives you a buy or a supply.
IMO a trading course or a good book is much better than an automatic Forex trading system.
Pros:
No requirement to spend time watching chart
Cons:
there deeply of time the EA don't perform as dutiful as back tested result