Stock Forex

Nowadays, the majority of forex consumers know that the best way to get stable profits on forex is to use automated forex trading systems (also known as forex robots). For this reason FX trading systems are so popular and also widely used with traders.

At the same time the huge variety of forex robots solutions makes it difficult for trader (especially for the newbie) to choose the best one. Forex related forums are just overflowed with the “fantastic offers” to buy the most profitable trading system. Every week you can find several more releases of new FX robots.

But despite the overwhelming assortment of forex trading systems just a few of them are really reliable and are able to provide you the stable profits. The most important question is how to find such systems among the great amount of available solutions?

The answer to this question is very simple. Best forex systems have several special features, whereby they are able to give you really significant benefits. So what are these features?

Firstly, the forex trading system must be supplied with the advanced money management technology. In this case the probability of losing your funds will decrease to the minimum.

Secondly, FX robot should be equipped with the auto adaptive technology. Hereby your software will be able to adapt the altering dynamics of forex market trends.

And the last important forex robot`s feature you must pay attention at is the Profit Trades percentage assessed through the testing period. It`s value should be more than 80%.

If you found forex robot equipped with the abovementioned features, you can purchase it without any doubts.

After a company takes a big dip, the climb back up is volatile. Sometimes it stays down for a while and starts trading between a certain range. I call this rolling stock. If you follow my formula for a pure rolling stock play as outlined in the Wall Street Money Machine and at our live Wall Street Workshop, you’ll realize that $50 to $100 stocks don’t fit the formula. They’re priced too high. Your cash goes a short distance with an $80 stock. $8,000 buys 100 shares. Yes, a move to $85 would make you $500, but a $5 move on a $5 stock would also make you $500, but with only $500 tied up. A better example: $8,000 would purchase 1,600 shares of a $5 stock. A $5 move up would double your money. Upon selling you’d have $16,000—a profit of $8,000. Now to make it more exciting and still double your money (because there are many more companies at $80 which can easily go to $85 than there are companies at $5 which go to $10), let’s play an option.

The stock is at $80. You call your broker and buy the $85 call options, say two months out. You pay $1.25 per option and buy ten contracts for $1,250. The stock moves up to $84. Your option is worth $3.75. You sell for a $2.50 profit and make $2,500. Look at the power of leverage.

Options allow you to invest in the big stocks by proxy, using a small amount of money.

Look back at the chart on Motorola (page 90). Every time the stock goes down to $50 to $52,1 buy the $55 call option. I’m not hoping the stock goes back up to $100, though it would be nice, and I’m not doing this to buy the stock. I’m simply going to sell my $1.25 option for $2.50 or $3.50 when the stock rolls up. Another day, another week, another $10,000 profit.

Some stocks just seem to trade in a certain range (support at the bottom, resistance at the top.) Check out Ford (F). It rolls between $27 and $34. When it gets down to $27 or $28, I buy the $30 calls or the $35 calls if they are cheap. I sell them when the stock gets to $32-$33. Don’t get greedy. Get out, get your profits working better somewhere else. If it gets to $34 or $35,1 then buy the $35 puts. As it falls back to $30 or under, I sell them. This past year, this has been a bankable play.

If you think the stock market is logical, or that a certain move in a particular stock price is logical, then I will show you dozens of illogical moves! Can you predict a price change— 100% of the time? No. Can you do your best to make a calculated risk? Yes.

Try this one on for size. When a stock price starts to rise, it creates excitement. The higher it goes (or the faster the rise) the more investors want in on the action. It rises more. More investors buy in. It rises and rises, sometimes 10 to 20% in a few days. Then … it stops! Does it just stay there? Or does it swing back down? Usually it falls, as investors’ sentiment takes it the other way.

I’ll give a 5-step process in a while, but first, what is happening here? Which price was right—the price two weeks ago at $80 a share, or the price now at $120. And three weeks from now, what will be right? The $90 price which the stock has fallen back to, or the $80 or high of $120?

What did supply and demand have to do with this? What about the market always being right, or a search for equilib­rium, or any other high-falutin’ theory exposed by a guru of Wall Street? Maybe, just maybe, this $30 run up was because a competitor’s Indonesia mining operation turned sour. But look what the “herd” did!

Here’s another one. Throughout this past year employ­ment reports have been good—more people employed. To me this should be good news. It means more people working, paying taxes, and not living off the government. It means more savings, more spending and all the other great things that help make a bigger American pie.

But, no. The stock market (DJIA) falls 80 points. Why? Because, as those wonderful things happen, inflation will go up, then the Feds, in nine months or a year, will edge up interest rates; corporate profits will decline slightly in 12 to 18 months, so the stocks price will fall. But they fall now in anticipation of this chain of events—which no one can predict anyway.

I rest my case for craziness. However, this last point does make a nice segue to a discussion of future events.

This is a simple way of finding stocks which are severely underpriced, or at least ones which you think have a high likelihood for going much higher.

Stocks in this category could come from:

•     Really bad news.

•     Bankrupt companies on their way out of bankruptcy.

•    Turnarounds.

•     Companies just going public or just getting listed on an exchange.

•     Companies breaking out of their roll range with better earnings, new products, et cetera.

•     Traditional penny stocks with some reason (pres­sure) for the stock to go up.

I do bottom fishing stocks all the time. I bought 141,500 shares of one company at around 6cent and sold it 18 months later for $1.40 to $1.50. A nice $200,000 plus profit! I look for more opportunities like this all the time.

That portion of your portfolio you’ve chosen to use as your cash generation machine should be used wisely, yet aggres­sively as you see fit.

It is in your comfort level that you will trade. As you gain more experience, you’ll probably spread the edge of the enve­lope—try new things, or variations. This chapter is about several of these other ways of making money. However, in order to put this information in such a way you can easily use it, this chapter is like a “play sheet,” or a checklist. It will cover most of my formulas in an abbreviated format. I’ll try to be complete with the quantity, but brief with the explanation. Indeed, I’ll try to keep the definition or explanation to one or two paragraphs.

Each of these formulas is explained in detail in other books, primarily the Wall Street Money Machine, other home study courses, primarily Zero to Zillions, and in other reports I write as I perfect various strategies.

I wish more than anything that when I started investing I would have had a chapter like this—to see in a few pages all the potential plays, formulas and recipes.

So here we go. We’ll start with my old favorite. Remember, these strategies are about generating predictable cash flow.