Duration : 0:5:26

Technorati Tags: analysis, daytrade, forexmarket, futures, howto, informedtrades, investing, market, stockmarket, technical, trading

there are two ways that traders analyze the markets which are known as technical analysis and fundamental analysis. As I also mentioned in that lesson while most people who buy and sell over the short term focus on technical analysis and most people who buy and sell over the long term focus on fundamental analysis, in my opinion both technical traders, fundamental traders, and investors can all benefit from at least having an understanding of both types of analysis even if they prefer one or the other as their primary tool they use to make their trading decisions.

While technical analysis focuses solely on the analysis of historical price action, fundamental analysis focuses on everything else including things such as the overall state of the economy, interest rates, production, earnings, and management. When analyzing a stock, currency or commodity using fundamental analysis there are two basic approaches one can use which are known as bottom up analysis and top down analysis. Bottom up analysis very simply means looking at the details such, as earnings if we are talking about a stock, first and then working one’s way up to the larger picture by looking at things such as the industry of the company who’s stock you are trading and then finally the overall economic picture. Top down analysis on the other hand means looking at the big picture things such as the economy first and then working one’s way down to the details such as earnings if we are talking about a stock.

While there is some debate about which method is best my personal preference is for Top Down analysis and since by starting this way we can start with the things that apply to all markets and not just the stock market this is how we will start.

The first thing that it is important to understand from a fundamental standpoint is what the economic situation is as it affects the financial instrument you are trading. As I am based in the US and the US is the World’s largest economy this is what I am going to talk about, however most of the things I discuss here apply in a broad sense to any economy. When we begin to discuss the foreign exchange market in later lessons we will go into specific details of the other major and emerging market economies from around the world.

According to Investopedia.com the definition of an Economy is “the large set of inter-related economic production and consumption activities which aid in determining how scarce resources are allocated. The economy encompasses everything relating to the production and consumption of goods and services in an area”

People often refer to the US Economy as a capitalist or free market economy. A capitalist or free market economy in its most basic sense is one in which the production and distribution of goods and services is done primarily by private (non government) companies and the price for those goods is set by the free market. This is in contrast to a socialist or planned economy where production and distribution of goods and services as well as the pricing of those goods and services is handled by the government.

Duration : 0:7:42

Technorati Tags: analysis, Business, daytrade, economy, Forex, fundamental, futures, howto, informedtrades, investing, stockmarket, Trade, trading

Duration : 0:8:25

Technorati Tags: Business, daytrade, finance, invest, market, stock

In our last lesson we began a discussion on the different components that make up the US Economy and how these relate to trading with a look at the Natural Resources and Labor Force components. In today’s lesson we continue this discussion with a look at the Private Sector and Government components and how each of these relates to trading.

While having lots of natural resources and a large well educated labor force to produce goods and services from those natural resources is a great thing, without a way to organize these first two components of the economy, not much would get done. This is where the small, medium, and large businesses which make up the private sector come in. In addition to organizing the labor force to produce goods and services, the private sector is also responsible for raising the capital necessary to bring all these things together which they do through private investors, loans from commercial banks, the bond market, and/or the equities market.

While many people think that the US Economy is dominated by the large corporations, it may come as a surprise the large role that the small business play’s in the US Economy. According to the US Department of State:

“Of the nearly 26 million firms in the United States, most are very small—97.5 percent … have fewer than 20 employees,” the U.S. Small Business Administration says. “Yet cumulatively, these firms account for half of our nonfarm real gross domestic product, and they have generated 60 to 80 percent of the net new jobs over the past decade.”

While we will go into more details about the private sector and how this all relates to trading in later lessons, it should be obvious at this point the large effect that the private sector has on all markets as they are the ones who: 1. Raise capital through bonds and stocks that we then trade, 2. produce the goods and services which drive demand for the commodities we trade and 3. Affect the foreign Exchange markets by playing a role in what goods and services are produced domestically, which we import from overseas, as well as cross boarder mergers and acquisitions.

Duration : 0:5:44

Technorati Tags: analysis, Business, daytrade, economy, Forex, fundamental, futures, howto, informedtrades, investing, stockmarket, Trade, trading

In our last lesson we looked at the structure of the Federal Reserve and the components of the FOMC, the portion responsible for implementing Monetary Policy. Now that we have an understanding of this, we can look further into exactly how monetary policy is facilitated and what happens to markets under differing scenarios.

Monetary Policy very simply is anything which relates to action by the Federal Reserve to influence the amount of money and credit available in the economy. To understand exactly what this means, one first must understand the concept of fiat monetary systems.

Fiat Monetary Systems: The United States, like most major economies, has what is known as a fiat monetary system. A Fiat Monetary system very simply is any system which uses a monetary unit (in this case the US Dollar) which is not convertible to some commodity, in general a precious metal such as gold.

Fiat money, is money that is backed by the credit of some entity, normally a government, and the value for which is derived from its relative scarcity and the faith placed in it by the population which uses it.

This is important to us as traders because the fact that the Dollar is not convertible to a commodity such as gold gives the Federal Reserve the ability to increase or decrease the money supply as it sees fit, or in other words to enact Monetary Policy.

With this in mind the 3 tools available to the Fed for enacting monetary policy are:

• Open Market Operations
• The Discount Rate
• Reserve Requirements

The most common tool that the Fed uses, and therefore the one that we will cover, is Open Market Operations. Once we have an understanding of this and how increases or decreases in the supply of money affect demand and prices, the other two less commonly used tools will be more easily understood.

Through something which is known as the Open Market Committee, the Fed increases and decreases the supply of money by buying and selling US Government securities.

When The Fed wishes to reduce interest rates they will increase the supply of money by buying government securities using money that was not available in circulation before they made their purchase. As with anything, when additional supply is added and everything else remains constant, price normally falls. In this case the price that we are referring to is the cost of borrowing money or interest rates.

Conversely, when the fed wishes to increase interest rates they will instruct the open market committee to sell government securities thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply.

Duration : 0:4:6

Technorati Tags: Business, daytrade, economy, fed, federalreserve, Forex, futures, howto, informedtrades, investing, stockmarket, Trade, trading

I’m an independent trader for 10+ years now, and I trade the SPX Index and SPY ETF most of the time. Im dedicated to helping people keep an eye on there money by analyzing the markets using technical analysis on charts.

All posts are written strictly for educational purposes and should not be viewed as advice to buy or sell anything.

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Duration : 0:7:25

Technorati Tags: 34rocco, aapl, alphatrends, analysis, apple, bonds, Cash, CRAMER, day, daytrade, dia, Education, fast, Forex, fred, Free, funds, futures, geithner, GLD, gold, hedge, Hot, hotforwords, indu, Inthemoneystocks, intra, invest, investing, Investors, iwn, jim, madoff, making, market, money, mutual, oil, option, options, picks, QQQQ, rogers, Sexy, SP500, SPX, SPY, stock, stocks, Street, technical, Trade, traders, trading, uso, vix, Wall

I’m an independent trader for 10+ years now, and I trade the SPX Index and SPY ETF most of the time. Im dedicated to helping people keep an eye on there money by analyzing the markets using technical analysis on charts.

All posts are written strictly for educational purposes and should not be viewed as advice to buy or sell anything.

Please Tip or donate at:

http://bit.ly/ypnAj

Contributions: We appreciate all donations, please help keep the videos free for the World to see and profit from. Thanks again.

follow my Blog: http://bit.ly/19aEJN
follow my Blog: http://bit.ly/38kSU
follow me on twitter: http://bit.ly/39oBEO

Free Stock Market Analysis
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Duration : 0:10:5

Technorati Tags: 34rocco, aapl, alphatrends, analysis, apple, bonds, Cash, CRAMER, day, daytrade, dia, Education, fast, Forex, fred, Free, funds, futures, geithner, GLD, gold, hedge, Hot, hotforwords, indu, Inthemoneystocks, intra, invest, investing, Investors, iwn, jim, madoff, making, market, money, mutual, oil, option, options, picks, QQQQ, rogers, Sexy, SP500, SPX, SPY, stock, stocks, Street, technical, Trade, traders, trading, uso, vix, Wall

I’m an independent trader for 10+ years now, and I trade the SPX Index and SPY ETF most of the time. Im dedicated to helping people keep an eye on there money by analyzing the markets using technical analysis on charts.

All posts are written strictly for educational purposes and should not be viewed as advice to buy or sell anything.

Please Tip or donate at:

http://bit.ly/ypnAj

Contributions: We appreciate all donations, please help keep the videos free for the World to see and profit from. Thanks again.

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Free Stock Market Analysis
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Duration : 0:6:21

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A lesson on how most traders have unrealistic profit expectations which cause them to lose all their money and what realistic profit expectations are when trading the stock, futures or forex markets.

The first step in understanding and building a solid money management plan, the key component in successful trading, is setting realistic profit expectations. All too often I see people open trading accounts with balances of $10,000 or under expecting to make enough money to support themselves from their trading profits within a short period of time. After seeing all of the hype that is out there surrounding most trading education, trading signal services, etc it is no wonder that people think this is a reasonable goal, but that does not make it a realistic one.

As most any truly successful trader will tell you, the stock market has averaged somewhere in the neighborhood of 10% a year over the last 100 years. What this basically means is that if you would have invested in the 30 stocks that make up the Dow Jones Industrial Average, the index which is designed to represent the overall market, you would have earned about 10% on your money on average over the last 100 years. With this in mind, what most any truly successful trader will also tell you, is that if you can consistently double that return, on average, over the long term, then you will be considered among the best traders out there.

Duration : 0:5:58

Technorati Tags: Business, daytrade, finance, Forex, futures, howto, informedtrades, investing, market, money, of, psychology, stock, Trade, trading

I’m an independent trader for 10+ years now, and I trade the SPX Index and SPY ETF most of the time. Im

dedicated to helping people keep an eye on there money by analyzing the markets using technical

analysis on charts.

All posts are written strictly for educational purposes and should not be viewed as advice to buy or

sell anything.

Please Tip or donate at:

http://bit.ly/ypnAj

Contributions: We appreciate all donations, please help keep the videos free for the World to see and

profit from. Thanks again.

follow my Blog: http://bit.ly/19aEJN
follow my Blog: http://bit.ly/38kSU
follow me on twitter: http://bit.ly/39oBEO

Free Stock Market Analysis
Please Rate this video and subscribe to my channel – Thanks

Duration : 0:9:41

Technorati Tags: 34rocco, aapl, alphatrends, analysis, apple, bonds, Cash, CRAMER, day, daytrade, dia, Education, fast, Forex, fred, Free, funds, futures, geithner, GLD, gold, hedge, Hot, hotforwords, indu, Inthemoneystocks, intra, invest, investing, Investors, iwn, jim, madoff, making, market, money, mutual, oil, option, options, picks, QQQQ, rogers, Sexy, SP500, SPX, SPY, stock, stocks, Street, technical, Trade, traders, trading, uso, vix, Wall