Rating: 4 out of 5 stars
Reviewing: UMOO Financial Entertainment
UMOO is a fun way to play the financial markets particularly if you would like entertainment as opposed to investing. Players choose to compete in contests versus other users or the financial market on UMOO for cash rewards. There are competitions that are no cost to play and those where a a funded account is required. Tournaments that need a funded account have greater reward. The competition can be as brief as ten minutes or as long as a market period. There are tournaments with stocks, forex, and commodities. All competitions use real-time market data and no software download is required.
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There are two varieties of contests available on UMOO: Trading Tournaments and PIX games. In a Trading Tournament users begin by selecting a competition of interest to them. The tournaments are built around three well known indexes: the S&P 500, the Dow Jones Industrials, and the Straits Times index of Singapore. The Trading Tournaments necessitate traders to pick stocks from the index and strive to create the highest percentage return possible with a pool of virtual money. In an S&P 500 competition for example traders assemble a portfolio of stocks in the S&P 500. Once the tournament has begun contestants may change their portfolio to increase performance. All matches are day trades because none spill over into the following trading period. During the competition users can examine their portfolios to study how they are ranking and compare their effectiveness versus the “benchmark”.
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The “benchmark” tells the trader whether they are “in the money” or “out of the money”. “In the money” means that if the tournament ended right now they would receive a reward and “out of the money” means they would not. The “benchmark” also reports the quantity of rewards being given away in the tournament. One significant detail however is that contestants are ineligible to be awarded rewards in the no “fee” tournaments without at least having a funded account with UMOO. Tournaments that are not without a cost require “fees”. These “fees” are typically a portion of what prizes could be rewarded such as a five dollar match will ordinarily have a ten to twenty dollar reward.
The other choice of tournament is referred to a PIX game. PIX matches are only ten to thirty minutes in duration and necessitate the player to select the one, two, or three best performing tickers from a short list. For example, in a Forex PIX competition the player may need to select the best performing currency from a list of three. UMOO may offer GBP/USD, NZD/USD, and AUD/USD with a starting time and ending time. The user can win if they choose the currency pair with the largest performance during those ten minutes. In a PIX game traders compete exclusively against the market in contrast to a tournament where they compete against other players. All PIX games have fees and the risk reward ratio is in the range of 2 to 1.
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Bottom Line: If you are searching for fun with trading financial symbols and fixed risk UMOO can be fun and financially rewarding.
Technorati Tags: commodities, Dow Jones, financial, forex, S&P 500, stocks, Straits Times, trading, UMOO, virtual
Professional traders kill amateur traders in the stock market with double top and bottom patterns. Keep reading to find out how you are able to make thousands of dollars once double tops and double bottoms form.
Every rally in the stock market reaches a point where enough bulls look at it and say”I’ve made a lot of money, and I might make even more money, but Id rather take my profits off the table. Charts top out when enough bulls take their profits, while the money from new bulls is not enough to replace what was taken out.
Bulls who just bought in are mad as they came in too late. They are trapped. Their profits are melting away and turning into losses. Should they hold or sell? If enough bulls decide the stock has overshot to the downside, theyll step in and buy. As the rally resumes, more bulls come in. Now when the stock finally rises back up to its previous high, you can expect sell orders to hit the market as those who were trapped exit their positions.
A lot of combat frighted traders who got captured in the preceding correction claim a blood oath to escape whenever the market affords them a second chance.
A reflection of this position happens in the securities market at market bottoms. The market falls to a new low at which enough bears start taking profits by covering shorts and the market rallies. Once that short covering rally stalls and the stock begins falling again, all eyeballs are on that previous low-will it hold? If fear is greater than greed, prices will break below that previous low which will mark a continuation of the downtrend. If greed is stronger than fear, the downtrend will stop near the old low forming a double bottom. Your other technical indicators will help you figure out which of the two possibilities is more likely to occur.
When a stock climbs to old high, you need to ask yourself will the stock breakout above that high or turn down and form a bearish double top pattern. Technical indicators like volume, MACD, RSI, and stochastics can be a great help in answering this question.
When a stock rises to its previous peak, a double top is most likely to form when the volume, MACD, RSI, and stochastics are falling.
A double bottom is most likely to form if the MACD and volume start rising when the stock hits its previous low.
For more helpful advice from master stock traders go to stock market trading tips and for great technical analysis and free stock picks visit stock market picks
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Unleashed on the individual trader for the first time. If you are losing money because of false breakouts in the stock market then you need to read this entire article.
I am going to tell you a stock trading secret that is so powerful, it will save you thousands of dollars. This secret has saved me thousands of dollars and now I’m breaking my silence to show you how to do the same.
Institutional traders use dirty tactics in the stock market that are so bad, they should be illegal.
It may upset you. It may make you fly off the handle.
You may even want to forget you ever read this.
But you need to know what they are doing.
Because you will learn an entirely new way of looking at the stock market and in particular false breakouts.
Let us talk about what support and resistance lines REALLY are, and then I’ll talk about false breakouts.
Seeing why support lines and resistance lines form will help you learn how to better protect yourself against false breakouts.
When most traders buy and sell, they make an emotional commitment to their trade. It is their emotions that will keep a market trending higher or send it into a reversal.
When a stock takes a plunge, some of the crowd trading the stock will sell for a loss, some of the crowd will sell for a gain, and some of the crowd will hold on to their position.
What you see on a chart is the emotional commitment, or lack thereof, coming from the crowd that is trading that stock.
Pain Is the Biggest Reason Why Support and Resistance Lines Form
If a trader is still holding on to the stock when the price claws back to his cost basis, he’s likely going to sell. He has painful memories of being in this stock and wants to get out as quickly as possible. This selling will temporarily stop a rally. Bad thoughts like this are one of the main reasons you see resistance and even support lines form.
For example, suppose a stocks falls from down to where it trades for a couple of weeks. The longer the level holds, the more that believe is support. Suddenly, after a couple of weeks of trading at , the stock falls down to . Seasoned traders will let their losers go quickly and will exit the position somewhere between and . Amateur traders will hold on and sit through the entire painful decline. A few rookie traders will exit at . The newbie traders who did not capitulate at will be the first to run for the exit if the stock can climb back up to . They will happily jump at the chance to “get out even”. Their selling will temporarily stop a rally and form a resistance level.
Support and Resistance Lines Should Be Called Regret Lines
Stock traders who see a stock that has gapped up feel like they have missed the gravy train. If the stock drops back to a certain level, these traders who feel regret for missing the first move and will jump at a chance for a second move. This regret then satisfaction when the stock pulls back causes support levels to form.
Take your stock chart and draw resistance and support lines at recent tops and bottoms. You can anticipate a trend to slow in these areas and you can use them to either enter a position or to profit take.
Warning: False Breakouts Are Caused By Institutional Traders
A false breakout or false upside breakout is when the price breaks through resistance which causes buyers to come in, and then suddenly reverses and falls back down below the resistance breakout level.
A false downside breakout occurs when prices fall below support, attracting more bears just before a rally.
All stocks are fair game but especially any stock that has a high percentage of institutional ownership.
Institutional traders love causing false breakouts because this is where they make the most of their money.
Institutional traders can see all the limit orders for a given security. They know how many more buy orders are above a resistance level.
Institutional traders have a secret practice they call running the stops. False breakouts happen when Institutional traders organize hunting parties to run stops.
For example, when a stock is slightly below its resistance at $30, the buy limit orders come flowing in near $28.50. The institutions calculate the liquidity ratio which measures how much the stock will go up if all buy limit orders are executed at $28.50. They calculate that the stock will run to $31 if all the buy limit orders at $28.50 are executed. They short the stock at $30 to push it down to $28.50. At $28.50 they cover their short position and go long as the wave of buy orders are automatically executed pushing the stock up to $31. If greedy traders start piling in, the institutional trader will stay long the trade. As soon as the buy orders start drying up, they sell short and the price falls back below $30. That’s when your chart shows a false upside breakout.
False breakouts will knock you out of a trade. Beginners tend to make a single stab at a position and stay out if they are stopped out. Professionals, on the other hand, will attempt several entries before nailing down the trade they want.
For more free stock trading tips, tricks, and secrets go to stock trading help and if you are tired of losing money in the stock market see the excellent article at investing
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What this basically means is that if a stock, commodity or currency gets a bit extended in price, it will tend to snap back to some sort of long term average price. Mean reversion may involve a myriad of strategies, such as short term overbought and oversold oscillators, regression channels, Bollinger Bands, moving averages, etc.
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A trader who employs this type of strategy must be very disciplined in cutting losses quickly. Or, if a stock is in a downtrend, and has sold off sharply, a quick snap back to that moving average may also be expected.
Typically, the trader will simply look for evidence that the current move has run out of steam. If a stock is extended in price to the upside and loses upside momentum, the trader will simply short the stock and place a stop somewhere pretty close to the highs. This is the type of risk and reward setup an experienced trader will look for.
However, the danger is that if the trader goes short and holds the position overnight, the stock could gap through his stop loss, and hand the trader a sizable loss. For this type of strategy, many daytraders choose to exit their position at the close to avoid this type of occurrence.
No matter what type of strategy the daytrader employs for entering and exiting positions, the long term key to success of the trader will be the proper use of risk management, and strong discipline. In order to have confidence in your strategy, it is important to conduct significant trading strategy research. Having confidence in the strategy you select through sound research should result in an ability to have the discipline to stick with the strategy through periods when it is not performing well.
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Protect your retirement account. For 401k Plan advice, 401k asset allocation, 401k investment advice and a 401k investment strategy. It is important to your retirement account to be educated about 401k allocation and a 401k strategy.
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Although it may seem obvious to most stock market swing traders there are a number of simple rules that you can follow which will ensure that you have more success when buying stocks:
In the USA stock market there are 3 major indexes which are each made up of a basket of stocks, they are the S and P 500 (also known as the S&P500), the DOW 30 and the Nadaq 100. These stock indexes generally only contain major blue chip stocks, as long as you buy from these 3 groups you will at least know that you are getting a well known solid stock.
For example the DOW 30 contains major industrials and large multinational stocks such as Home Depot (HD) and Johnson and Johnson (JNJ) whereas the Nasdaq 100 mainly contains techical companies such as Apple (AAPL) and Miscrosoft (MSFT).
Always buy a stock that is liquid, this means that it is a highly traded stock, this will enable you to easily buy and sell at the price you want without having a delay. You will also get a smaller spread, thats the difference between the BID and ASK price of the stock. For a stock to be considered highly liquid it should trade at least 500,000 shares per day, ideally even more.
It is best to aviod stocks that are bellow $10 as this usually means the company is in trouble, although with the bear market of 2008/9 there have been a lot of good stocks at bargin prices between $5 and $10. Avoid buying a stock that is below $5 at anytime.
Another consideration is options, does the stock has options?, this will be important if you want to trade options around your stock, such as a covered call, or you may want to buy a PUT option inorder to protect your stock.
Be very cautious about buying a stock just before it’s earnings are released, stocks often drop significantly if they come out with a poor report. Earnings releases are 4 times a year with one of them being the annual report.
If you are going to trade options make sure that you learn how to trade by getting some good education. There are many swing trading strategies that work well with stocks in todays volatile markets.
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