Trading for Beginners Articles Description

• 10% Of Traders Go Bankrupt
  I was thinking about an article I read some time ago that 90% of traders who ever trade lose their account and that 10% actually go bankrupt. If the first number doesn't scare you then the second definitely should.
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• Pivot Points
  Those of you who have been trading for a while will be familiar with Pivot Points. During this lesson I want to go over how to find a Pivot Point and also a slightly different method of using them. First let's look at how you calculate a Pivot Point.
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• Adaptation to the Realities of the Market
  Many times in the past I’ve written about the need to adapt, the need to be able to change your behavior relative to the market because the markets are ever changing. I’ve stated that mechanical systems may be workable, but for only a short time relative to the life of markets. You must learn to trade what you see and to understand what you see on a chart.
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• Trading vs Gambling
  Many people think that trading is similar to gambling. Is this really the case? For example, let’s take a look at Black Jack. If you start with $10,000 gambling capital, placing bets of $100 per hand and play 100 hands per day, how long will you last?
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• Looking for Cup and Handle Chart Patterns before Buying a Stock One of the biggest factors an investor should consider before buying a stock is what type of chart pattern the stock is forming. One of the basic chart patterns to look for before investing in a stock is called a "Cup and Handle" pattern.
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• Double Bottom Chart Patterns
  There are three favorable Chart Patterns to look for as an investor. They include the "Cup and Handle", "Double Bottom" and "Flat Base". This article will concentrate on the "Double Bottom" pattern which looks like the letter "W" as it develops
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• Flat Base Chart Pattern -
  Stocks that have large price gains typically will stair-step upward and form Flat Bases before resuming their up trend. This action may occur several times as a stock remains in an up trend and could last from a few days to several weeks depending on the situation.
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• Chart Topping Patterns to Avoid: Double Top - The Double Top pattern is the reverse of a Double Bottom and looks like an upside down "W" or "M" shape. If the second top is being made on lower volume watch out as this maybe a sign a big sell-off is coming. Some examples are shown below.
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• Chart Topping Patterns to Avoid: Climax Top Off a Parabolic Move This pattern occurs when a stock rises very quickly out of a base and gets overextended. Stocks in a Parabolic Move can double or triple in value in a very short period of time (usually less than two weeks). As an investor you certainly don't want to be one of the last passengers on the train and get quickly thrown off.
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• Investors Have Limited Deductions
  Trader Tax - The majority of individuals who, on a part-time basis, buy and sell securities, mutual funds, options, futures, commodities, and other derivatives, file as an investor. Investors are typically people who have a job that provides W-2 income, or they are retired and trade as a hobby.
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• Wash Sale Rules for Traders
  Generally, the wash sale rule applies to traders the same way it applies to investors. The difference is that traders have a much harder time keeping records relating to wash sales because they engage in so many transactions.
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• Using a Legal Entity
  As advisors to people who are actively trading in recognized financial markets on Traders Tax. We at Traders Accounting are constantly concerned with several issues. First, we want to make sure our clients pay the absolute minimum amount of tax they lawfully owe. That means we are always interested in making sure the client takes advantage of every deduction that is properly available.
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• Frank Chen Filed as a Trader in Securities, Got Audited and Lost
  Find out how Frank Chen got audited and lost his case. This is a must read, you would not want to land up in his shoes.
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• Minimising the tax burden for full-time traders - CFDs
  The IR will always take the view that if ALL your income is from trading or at least a very, very high percentage of it is, then that is the source of your 'income' and as such it should be taxed as 'income' rather than as 'capital gains'. Now it does take some time for them to get to this point if it is actually relevant to you - if they ever do. Perhaps it might depend on how you or your agent present your affairs and even the presentation of your own tax return supporting schedules.
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• Don't Be Hung Out to Dry By Wash Sales - The Internal Revenue Service loves to tax capital gains, but they are just as diligent to disallow capital losses that might offset those lucrative cash cows. Case in point: the wash rule.The wash rule prohibits traders and investors from claiming a capital loss if they buy replacement stock 30 days before or after the sale of a security. If you do so, you can't deduct the loss; it is added instead to the basis of your replacement stock for tax purposes.
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• Dont Overtrade!
  Over Trading is the greatest single cause for losses in the markets. Whether you are winning now or losing now, ninety-five or more percent of all traders trade too often.
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• Stop Placement
  Stop placement is the sole responsibility of you as the manager of your trading business. It is one buck that you cannot pass. You are the end of the line when it comes to placing stops. Let me show you why you, and only you, can decide where to place the stop. There are several considerations:
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