FOREX TRADING & ONLINE REAL TIME TRADE

Understanding support graphics on the Stock Exchange

The graphics inform the investor of the state and evolution of a sector or stock index, although its understanding requires a broad knowledge about this technique

Curve quote: Does the investor a truly effective tool to protect the investments made, or simply to help realize when buying or selling stocks? Nothing can ensure the success of an investment in one hundred percent, but there are some very reliable instruments that can help throughout the process of investment. One of these channels is what is called "charting", a technique also known as stock chart analysis, which involves the study of graphs of different securities, sectors, indices, etc., Translation or graphical representations "charts" of the securities and trading volumes. It is an indispensable tool and one of the more objective, so overwhelming that when it recommends a certain value "for technical analysis, graphical representation means that indicates the suitability for entering or leaving it (buy or sell). The term Anglo-Saxon "chart" means graphic, and is one stock which represent contributions of a company or of any title listed on financial markets (bonds, commodities, precious metals, etc.).. The vertical axis of the graph are placed quotes, and on the horizontal axis the days trading session, but sometimes instead of days can be transferred to weeks, months or even years, so that it can be seen globally the price of a company, sector or index. Placing in every day or meeting, the relevant contribution, the curve forms of contributions that will dictate the actual state value and that will help the investor to make its decision.

The curve is one of the main tools for analyzing the behavior of the stock market, and the basic element that supports the "charting". In addition, this curve to analyze the evolution of a title over time, meaning it can check whether it is maximum or minimum, if you gain or lose much in the last session, if you have formed a "double bottom", if record highs ... The curve is one of the main tools for analyzing the behavior of the stock market, not in vain, is the basic element that supports the "charting", which is also studying other figures that make up this curve (resistors, brackets, double roof, etc..) and, on that basis, determines the price trend. Generally, the "chart" of the contribution is accompanied by other additional graphics to help analyze the curve of the contributions. Also presented, sometimes with technical indicators or oscillators, other technical analysis tool.

Through this instrument, the investor can see the trend of a security, sector or index, since for a set period of contributions tends to follow a dominant path, which can be up or down. If the trajectory is upward, this constitutes an uptrend, while if the contributions are of opposite sign the value will be immersed in a downtrend. In addition, there may be cases that do not have a defined path, which in stock market jargon is called "flat market" (not show any kind of trend, either bullish or bearish). For example, Endesa moved without trend a few years ago, until several European utilities tried oparla (buy), which triggered a clear upward trend in the value (up to 40 euros), movements that could be graphically displayed. But the graphics are not all alike, nor have the same functions. They fall into daily, weekly, monthly, yearly .., so before you select a "chart" the investor must decide the period of time is devoted their investment in the stock market: short term (a maximum of two to five weeks), medium term (three to six months) or long term (one year minimum).

* A "chart" journal is one in which the curve represents the contribution of a single session (open, high, low and close). They are best used to detect the condition and the developments that have publicly traded companies. Are indicated for short-term investments.
* More complete and clarifiers are the weekly, as in the curve represent contributions are contributions of an entire week, with a broader perspective. As in the previous case, are indicated for short-term investments.
* For more in-depth analysis are indicated "charts" a month, even year in which you can view the evolution of a longer-term value. They are therefore suitable for investment in the medium to long term.

To learn more about this technique, the small and medium investor has available two important tools:

* A manual of "charting" means the investor can buy it in specialized Internet portals, or through financial intermediaries. The manual shows all aspects of the "charting" from the pedagogy of how to interpret some figures or movements that make up bag. Within days, anyone can interpret what is a resistor, a guideline bassist or how to configure the "double bottom." It is a very useful aid to operate in the domestic and international stock markets, and allows to understand from what you are opening prices, high, low and closing, or what is a general trend, even more technical and complicated as detect a "ground frame", what is a "pull back", or the already famous among stock forums "shoulder-head-shoulder (HCH)."
* The other alternative is providing the majority of online financial institutions, which have an interactive graphics, totally free for its customers, a truly useful tool not only to perform when trading, but deep to track of all the securities that comprise the major indexes. Moreover, this interactive system allows to know the real-time quotes and auto update, and an analysis of graphs of the values of most interest to the user with the ability to customize the oscillators and technical indicators of your choice, making and keeping its own analysis. It also foresees the possibility of sending purchase orders and sales from the chart.

What is interpreted in the graphics? Display graphics that reflect the trading of the securities or indexes in recent years can help the small and medium investors to interpret their evolution can give an alarm signal indicating that it is the right time to sell, or report that is to a situation where it is advisable to take positions in the value, ie buy it. Through graphics can also be interpreted a number of other more complicated movements and complete, although in that case would be for a segment of investors more professionalized, with extensive knowledge of this analysis technique. In general, these are some moves that can anticipate the charts:

* The tendency of a security, sector or index, if it is ascending or descending, or is flat.
* It provides the basic analysis to anticipate developments that could have an index value or its price, the short, medium and long term.
* Are able to decipher many of the tables and indicators that are continually reflected in the specialized media.
* To observe and analyze the contribution of each value or industry through the perspective you need each analyst or investor (one day a week, one year, five years ...).
* Provides signals for buying and selling, through support and resistance are reflected clearly in the graphical analysis.
* They represent the basis on which stock analysts make their investment recommendations.

The analysis "chartistm" in addition to setting the upward or downward trend in contributions, try to define the objectives upward or downward movement of the trend, ie reach the level of contributions when the trend is exhausted completely or partially. Through this strategy can avoid losses in the stock market or, in the best case scenario, to achieve greater gains in investment. Online banking offers an interactive graphics that can be customized technical indicators and oscillators, making and keeping its own analysis. Many times, stock information or comments from analysts refer to the term "free climb" without the recipient of information know for sure what is it. When the price has surpassed all the resistances that are reflected in the chart, and its highs, is when you can say that a value is in "free climb" but can not quantify the depth of it, because it can last a few sessions or have a broader term. It is one of the figures that any investor, even if not very familiar with graphics, can be detected. And as with the "free upload" the opposite movement occurs when the listing of a break with all media and falls below its lows. In this case speak of "free fall", according to investing strategy expert Jose Antonio Lopez-Esteras Camacho

Investors contract for differences

Recommended risk profiles, their earnings can exceed those obtained on the stock exchange, but also losses
Investment products are not constrained by the funds, pension plans and actions. In addition to these popular and mass forms of investing, the market has received in recent years new ways, more sophisticated, they have become an alternative to aggressive profiles. "Warrants", ETFs, options and futures, in addition to a latest product and a demand on the rise: contracts for differences, known in financial jargon as CFD (Contract For Differences). Allow part of the ups and downs of the stock price or index, without running the purchase or total cash outlay operated. Its main advantage is that you can buy or sell large volumes of shares with small amounts of money. The drawback: a high-risk product, which can cause high losses. Provides superior to exponential gains from direct investment in the stock market, but may involve losing all the input.

How they work. The CFD is a financial instrument that you can subscribe through certain investment brokers. Its peculiarity is that it can participate in the ups and downs of share prices or indices without having to make a purchase or the total outlay of cash. Possible to play up or down on both factors and their value is linked directly to changes in the price of the stock or the underlying index. By subscribing to a CFD, the customer buys or sells with input from a small part of total assets to which the product is referenced. This means operating with a high degree of leverage (as if the transaction was financed) and multiply the results of the investment. This contract does not expire and is settled when the customer decides, with exchanges of the difference in the underlying price at the time of purchase and sale in accordance with the minimum guarantees required. No expiration date, however, if the underlying replicating does, expires at the same time.

Permit to purchase or sell large volumes of shares with small amounts of money

When contracts for differences are used to take bearish positions, trading is called short selling: if an investor thinks the price of a security or index will fall, you can subscribe. The investor would make money if the asset to which this product is referenced floor and when you choose to close the position, is at a lower price than it had when it signed the product. They are useful to take advantage of movements in the short term, to "intraday trading" with different values and national and international levels. Benefits and Types. One of the main advantages of these contracts is that they allow access to almost any asset with the release of a small part of the money it would cost in the market, but given the opportunity to benefit from all the profits. In addition, you can invest down and take advantage of declines in the markets (stocks, futures, gold, oil ...). Another advantage is its transparency. If you invest in CFD on shares, the investor access to real market prices for them. You can always know how much you win or lose. No need to make cumbersome calculations to derive the premium, as with warrants, in which a change in volatility may affect the benefit.

They are a useful tool to exploit short-term movements. The kinds of contracts depend on the underlying differences that replicate. You can find everything from stocks, indices and commodities to currencies, ETFs, options or bonds almost any financial product quoted. The forex platforms investor demand, in particular, CFD on Telefónica, Iberdrola, Repsol, BBVA, Santander and the Ibex-35, among others. Case Study: How much can be gained with a CFD? Before hiring a CFD, you should know about the concept of leverage. This term implies that the release of a fraction of the cost of the asset in the market enough to benefit from all of its gains. The profits gained in investment spending necessary for the exponential, in many platforms shares multiplied even by 20. To understand this, it is advisable to compare the direct investment in an action with the purchase of a CFD. The main difference is that, if you decide to invest in the stock market, the saver needs the total number of shares you wish to purchase. If you want to buy 1,000 shares and they trade at 20 euros each, will need 20,000 euros. If you bet on contracts for differences, it would need 2,000 euros, as it would only have to pay a percentage of the cost of the action, subject to the broker but generally around 10%.

In the event that the share price to rise to 22 euros, how much would win the CFD investor and how much to stock? With the latter, would collect 2,000 euros and 22 000 as a final result of its operation. The gain would be 10% on invested capital. With contracts would earn 2,000 euros, a 100% profit on invested capital. If he had chosen to spend 20,000 euros, 20,000 others had won, that is, ten times more than direct investment in shares. What happens if the stock down? In this case, both investors will have losses, but will be much higher for those who bet on CFD. If the stock falls to 18 euros, the investor who bought the securities on the Stock Exchange lost 10% of the amount paid (2,000 euros over 20,000 deposited). When selling, you will receive 18,000 euros. Who opted out of contracts, lose € 2,000 invested, ie 100%. If the deposit 20,000 euros, as the first investor would have seen the disappearance of the full amount.

This example shows that the operation with contracts for differences is far more risky than traditional investments. You can make more money, but you can also lose everything. This situation, however, is quite unlikely in a traditional stock trading. For this to happen in stock, you have to break the issuing company. For that to happen with a CFD, you can simply wander in the underlying trend or asset to which the product is referenced. Gold, silver and oil are commonly traded commodities. Worldwide based firms offering trading opportunities platforms in global commodity and stock index markets. Commodity Warrants Europe and Asia. The Commodity Warrants Gold Commodity ... the spot market and trading futures market is the timeframe of the transaction for real time and online search for products and suppliers.