A stock trading system is simply a set of rules and parameters that are used to determine when to trade a stock. These rules are used to determine a specific entry and exit point. Such points are often marked on a stock chart to prompt an immediate trade. Learn how use technical analysis to create a set of rules to determine when to trade a stock. more...

Trend trading is one of the most effective stock trading strategies. It is also one of the simplest methods. Trend trading is a proven way to earn profits since it has been established that for years the markets have moved in trends. With a trend trading system, you can take advantage of both the ups and downs of the market and profit in both environments. more...

To be a successful stock market trader, you must follow a risk management plan. A risk management plan helps preserve trading capital while earning consistent returns. It also helps curb your emotions while enforcing self-discipline. The main elements of risk management include determining the risk amount and position size, identifying the stop price, and examining the risk/reward ratio. more...

A stop loss order is an order to buy or sell a futures or options position, or a stock, when it reaches the stated price. When that price is reached, the stop-loss order becomes a market order and the position is immediately liquidated at whatever price is available. In a fast market the exercised price may be far from your stop price; c'est la vie. The stop loss is designed to limit your loss on a position. more...

Would you like to learn about a type of price chart that is more effective than the type you are probably using now? If so, keep reading. If you are brand new to the art/science of chart reading, don't worry, this stuff is really quite simple to learn. Candlestick charts are much more visually appealing than a standard two-dimensional bar chart. As in a standard bar chart, there are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period. more...