The Forex market has quickly become the world’s largest financial market, with an estimate daily turnover of $3.2 trillion. It is a market that has great appeal to a financial trader because of its volume which guarantees liquidity. High liquidity means that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any currency he wants. Another outstanding feature of the forex market is that it is active 24 hours a day and is closed only on the weekends. This means that unlike the stock market for example, traders in the forex market don’t need to wait for a bell to ring, but can make trading decisions around the clock.

Enter the internet into the equation. Now the forex market is literally at your fingertips. Most brokers offer online trading facilities which enable you to trade simply by clicking a button, instead of the traditional phone call. The internet has really revolutionized the industry, making the retail section of the market more dominant than ever.

About eToro

eToro is a forex trading platform developed to cater to the emerging retail segment of the forex market. With its simple style and exciting trade visualizations, eToro is the perfect platform for a novice trader to get his first forex trading experience. With its great array of professional forex trading and analysis tools, eToro is also the perfect platform for experts in the field who want to trade comfortably and reliably. eToro has developed a truly intuitive interface that lets traders concentrate on trading instead of messing around with bulky and overcomplicated software.

It’s important to mention that eToro also offers an educational experience, so novices can gain knowledge of the forex market and eventually become pros if they’re so inclined. eToro offers forex trading guides, forums and video tutorials to facilitate their traders’ progress. eToro also offers an unlimited practice mode where both beginner and seasoned traders can sharpen their skills and test their strategies with real market rates.

Overall eToro have successfully designed a software that caters to a very wide segment of the forex trading public. eToro is bound to remain a leader in the forex industry for a long time to come.

eToro’s features:

Visual representation of trades: Monitor your trades with ease by watching creative visualizations of your trading activity.

Practice mode: Test your skills and strategies by trading with live rates, without risking a cent.

Trading Challenges: Compete against fellow traders for cash prizes – with no entry fees.

Trade: Enjoy immediate and accurate execution with all your trades.

Low Spreads: Save a fortune on eToros super low spreads – as low as 2 pips.

And soon to come:

Trade: Enjoy real time execution with all your trades.

eToro’s Pro Insight: Get a look at what currency pairs eToro’s top 100 traders are trading at the moment, and use the inside info to your advantage!

Download
eToro for FREE and join a fast growing forex community.

Many investors have found this alternative in the forex
market. Unlike other financial markets the forex market literally cannot crash.
This is due to the fact that in the forex market one invests in a currency’s value
relatively to another currency. One is always buying and selling at the same time.
Therefore one can profit when one currency weakens against another just as much
as if it were strengthening against the same currency. In fact, the instability
that the global crisis has introduced into the market is considered by many to be
a positive thing. Volatility in the forex market, despite perhaps making it more
risky, also provides greater opportunities for profit. The sharper the swings the
currencies go through against each other, the more forex traders stand to profit.

And because this volatility makes the trades riskier,
forex dealers also provide traders with tools to reduce their risk. Stop Loss orders
are a very commonly used tool in forex traders, because they allow traders to limit
the amount they are risking while their profits remain potentially limitless. One
does not even have to risk the entire amount of their investment. For example, if
one invests $100 on a trade they can place a stop loss order that will close the
trade in case the rate of the currency pair reaches a level that leaves only $50
to take back. This allows traders to protect themselves from unpredictable market
movements while simultaneously allowing them to take advantage of this same market
volatility.

Despite these obvious advantages, some people still hesitate
to start trading forex since they’ve never tried it before. This is where the eToro
platform comes in. The eToro forex trading platform is a perfect place to get started
in the forex market because eToro provides you with all the advantages of forex
trading incorporated into a simple and visual interface. eToro’s revolutionary trade
visualization make it easy for forex novices to acquire trading skills in no time.

eToro’s educational guides, tutorials and forums also
give you access to all the forex information you can possibly require. You can then
discuss this information in eToro’s chats, take part in free to enter trading challenges,
and take a tip from the pros using eToro’s Top Traders’ Insight tool. You can also
practice forex trading using virtual money with real live market prices.

Now, more than ever, it’s time to give forex trading a shot.
Download
the eToro platform for FREE today to get started!

With a daily turnover of over $3.2 trillion, as estimated by The Bank of International
Settlement, the Forex market has quickly become the world`s biggest and most liquid
financial market. Nevertheless, it is a market that has up until now allowed very
narrow access to private traders, since it customarily uses terminology and procedures
that can take years to grasp.

About eToro

eToro has developed a cutting edge Forex trading software, catering to novice and
veteran traders alike by way of a user friendly trading interface, and various additional
features that render the vast world of Forex trading accessible to new traders.
eToro`s easy to use platform makes foreign exchange trading almost entirely intuitive,
through its extensive use of trade visualization. eToro`s platform is also designed
to make Forex trading a community oriented experience, with such features as private
and public chats, forums and championships.

eToro`s provision of an opportunity to acquire trading experience by trading for
virtual money, makes this platform hugely attractive to beginner traders, since
it enables them to get their chops without risking any of their money. This way,
novices can get a fundamental understanding of the world of Forex, before they dive
in. Furthermore, eToro makes the learning experience a smooth and painless one,
by replacing the complex charts and lingo that the Forex market is famous for, with
step by step instructions, tutorials, professional support and creative graphic
representations of trading activity.

eToro`s forward thinking approach combines all the advantages of the Forex market,
namely its scale, its liquidity and its extent of opportunity, with all the advantages
of online technology, in order to create a user friendly access to an enormous and
complex industry.

Overall, eToro has produced the ultimate trading environment, where one can learn,
develop, communicate, and grow according to one`s individual needs.

eToro`s Features:

eToro has designed a cornucopia of features that make trading, monitoring, communicating
and staying informed simpler than ever. These features include:

Visual representations: Trades are depicted through various creative representations,
so you can monitor your activity with ease.

Practice mode: Polish your skills by trading with virtual money for live
rates, before putting them to the test.

Competitions: Compete against fellow traders for cash prizes and Forex glory
- with no entry fees.

Chat: Whether it`s Forex or romance, discuss it all with your trader friends
in public or private chats.

Trade: Enjoy real time execution with all your trades.

Low Spreads: Save a fortune on eToros super low spreads – as low as 2 pips spread.

Download
eToro for FREE now to experience the world of Forex trading to the fullest.

eToro is an innovative software that has taken the complex world of forex trading and made it user friendly. Countless online forex providers supply their traders with platforms that are bulky and uncomfortable to use. You’ll find yourself spending more time trying to figure out how to set up a simple trade than analyzing the market and deciding what your next trade will be. eToro have decided to put a stop to it. Using a ground breaking interface, the eToro platform puts all the forex tools your heart desires right at your fingertips. eToro is about providing the ultimate forex trading environment for all traders. Here you will not only find a phenomenal array of forex trading tools but also live streaming news, financial event calendars and an unlimited practice mode with live forex rates for you to test out trading arenas before applying them with real money. eToro also combines forex trading with a web 2.0 community centered approach. eToro have created a thriving forex community around public and private chats and forums, that enables you to discuss forex with peers from around the globe, and you can even monitor the most popular pairs traded by eToro’s top 100 ranked traders, and utilize their experience to your advantage !

eToro`s Features:

Traders at eToro enjoy:

Innovative user-friendly interface – execute trades with on click of a button.

Unlimited practice – practice your trading techniques with virtual money and live rates

Streaming news – get the latest forex updates as they happen

Low spreads – trade with the lowest spreads online, as low as 2 pips spread.

Superb execution – trades are executed immediately with great precision

Low margin requirement – start trading forex with only $50, and get a first deposit bonus of up to $500!

Community experience – connect with you fellow traders using public and private chats and forums

Trading challenges - win prizes simply by trading, no entry fees required!

Download
eToro for FREE today for a new kind of forex experience!

Here are some more specific short ideas with stop prices:

ASH 30
BAX 51.23
CTV 26,92
DIOD 17.21
IBM 110.65
IFN 33.01
MCRS 28.66
MDY 110.18
NTG 40
OI 30.90
STRA 212.27

[hot stock source : slopeofhope]

The optionsXpress Online Broker Education Center

Welcome to the optionsXpress Education Center. One of our goals here at optionsXpress is to provide our customers with the knowledge needed not only to invest, but to invest with confidence. This Education Center has been organized to cater to both advanced and novice investors alike, with a curriculum broken down into each of the product categories we offer here at optionsXpress:

• Options
• Futures
• Stocks
• Bonds
• ETFs and Mutual Funds

Keep in mind that optionsXpress Online Broker always has a wide array of FREE live webinar presentations from which to choose as well, covering topics from new customer orientation to specific trading strategies to timely market issues and concerns. Even if you’re not available for a specific live webinar, you’ll find an entire “on demand” library with hundreds of pre-recorded webinars from which to select at your leisure. In addition, those new to optionsXpress may enjoy our online demos for a tour of the site and helpful hints for getting started.

optionsXpress also presents a host of live, in-person educational workshops and site nightes in cities throughout the United States all year long. Find out if we’re coming to a city near you in the upcoming events section of the Education Center main page.

Now that you know what we offer, let’s begin your journey to trading knowledge.

Understanding How the Markets Work

You’ve no doubt heard people talk about the market or stock market. The reason it is called the stock market is self-explanatory. Markets are where stock or shares of publicly traded companies are bought and sold.

So what is a stock anyway? Stock is ownership, plain and simple. If you buy a share of Microsoft, you acquire a tiny sliver of the company, thus tying your fate to that of the software giant, for better or worse. This is ownership in the most literal sense: You get a piece of every desk, contract and trademark in the place. Better yet, you own a slice of every dollar of profit that comes through the door. The more shares you buy, the bigger your stake is.

As a shareholder, you have a right to have your voice heard. Once a year (or more often if the company encounters dramatic events such as a pending merger or major acquisition), the company will hold a meeting at which the shareholders can cast their votes to elect new board members or voice their opinions on directives the company may be making.

Of course, most average stock investors own such a small portion of the company that they don’t really have a huge say in what happens within the company. That’s why it’s important to do your research before you buy stock in a particular company.

Rather than attend a shareholder’s meeting to formally express your opinion on a company’s direction, the simplest way to voice an opinion is to simply let your dollars do the talking by buying or selling shares in the company. If you like what they’re doing, you can buy more shares in a show of support. If you don’t like what they’re doing, simply sell your shares and move on to bigger and better things.

Generally speaking, the stock market is made up of organized places where buyers and sellers meet to buy and sell, similar to a farmer’s market. While a farmer’s market is made up of various stands or booths where crops and crafts are bought and sold, the stock market is made up of different exchanges where people meet to exchange stock for money. Initially, if a person wanted to trade shares in a company, he or she would actually take the shares to an exchange and sell them or buy them. However, as more and more people became involved, it was obvious that not every buyer and seller could fit into one building and find someone who was interested in buying their stock. This growing reality led to the creation of the brokerage…a person or house that has a place or seat on the exchange to trade stocks on behalf of their clients.

Exchanges, Sectors and Indices

The Exchanges

There are a number of exchanges and brokerages in existence today. In order to trade stocks on an exchange, you need to have an account with a brokerage that will place buy and sell orders on your behalf. Whether you choose to call and speak with a broker directly, or trade online unassisted via Online Broker , the broker acts according to your wishes and places your trades for you.

Some exchanges still conduct most of their business through open outcry in a physical trading pit on the floor. However, electronic order execution has dramatically altered the market landscape in recent years, allowing for the quick execution of many millions of shares with greater speed and efficiency than ever before. For the purposes of this introduction to the markets, we will only consider the four major exchanges, which are the New York Stock Exchange (NYSE), the NASDAQ Exchange, the American Stock Exchange (AMEX), and the Over The Counter Bulletin Board Stock Exchange (OTC.BB). Shares in thousands of different publicly traded companies are bought and sold Monday through Friday on these exchanges.

With so many thousands of publicly traded companies from which to choose, a little organization is certainly welcome. Therefore, each and every publicly traded stock is categorized by Sector, Industry, and Industry Group.

The Sectors

Sectors are simply broad market categories found within the marketplace. Technology, Financial and Healthcare are examples of sectors, and within each sector there are further sub-categories called Industries.

Industries

Industries are more specific than the Sectors in which they belong. For example, the Technology sector is divided into the computer hardware, computer software & services, electronics, Internet and telecommunications industries.

Industries are then further broken down into Industry Groups. Take the Computer Hardware industry as an example. This group is broken down into Computer Software & Services, Electronics, Internet and Telecommunications Industry Groups. In some cases, these Industry Groups are divided even further into sub- groups. It’s important to mention that there is no one governing body that has established a standard list of Sectors, Industries, and Industry Groups. As a result, you’re likely to notice some discrepancies as you compare Sectors, Industries or Industry Groups among various sources.

Indices

As if all of that classification weren’t enough, stocks are also sometimes organized into Indices. An index is a basket of stocks assembled to represent some section of the broader market. For example, the semiconductor index is made up of 16 different stocks in the semiconductor industry group. The biotechnology index consists of 17 different biotechnology stocks. The Dow Jones Industrial Average represents a broad view of the market by including 30 different stocks from across several sectors and industries. Each index represents a different view of the broad market, and is often created by companies that specialize in market analysis and reporting. Whenever you hear market commentators refer to the “Dow” or the “S&P” (the Standard & Poor’s 500 index) they’re referring to the performance of the particular list of stocks created by Dow Jones or by Standard & Poor’s. These lists change periodically, with the intent of following the stocks most representative of certain aspects of the market at a given point in time.

Bulls v. Bears

Deciding when you should or shouldn’t place a trade, regardless of whether you’re considering a stock, options, or futures investment, depends heavily on what the current markets are doing. Once you have a handle on current market conditions, you can begin to identify the tools and strategies you’re going to use to place a specific trade.

No one really knows the origin of the terms “Bullish” and “Bearish” in the context of market trends, but you can certainly find several interesting sources suggesting their heritage. Regardless of where they originated, Bullish universally indicates an optimistic outlook, while Bearish refers to a pessimistic one.

Bullish Market Forecast = Rising Stocks

Simply put, if you think the markets are going up in general (that is, you’re bullish on the markets) then you want to find stocks and strategies best suited to capitalize on the positive price movements.

Bearish Market Forecast = Falling Stocks

If you think the markets are falling in general (you’re bearish on the markets), then you want to find stocks and strategies that are more likely to succeed when prices fall.

Keep in mind, however, that one of the fascinating aspects of the stock market is that even if the overall markets are Bearish, you’ll still be able to find a number of stocks that are actually increasing in value contrary to the overall market trend. An example of this phenomenon is when oil companies do well as the rest of the market suffers in light of high energy costs. The important thing to keep in mind is that there are often a number of stock investing strategies that work to generate profits regardless of market direction.

source

Recommendation for Friday, May 08, 2009

Priceline.com (PCLN)

Buy the Priceline.com (PCLN) June 90 call (PUZFR). The option is currently offered at $16.80.

Commentary

When looking across the market today, one name stands out above the rest: priceline.com , which operates as an online travel company principally in the United States, Europe, and Asia. With strong price action, an upcoming earnings report, and a strong earnings history, the stock looks like a winner.

The stock`s price action in 2009 has been nothing short of amazing. Bolstered by a better-than-expected earnings report in February, the equity has rallied more than 40% year-to-date. Plus, the shares of priceline.com just recently cleared the 100 level, which had previously acted as resistance. Since breaking above this level, we are now seeing the 100 area hold as support, and the stock is consolidating above this key level. A strong earnings report could push the shares to new multi-week highs.

Priceline.com has a history of releasing stronger-than-expected earnings reports, and the stock usually reacts positively to the news. In fact, the company has reported stronger-than-expected earnings in each of the last eight quarters, and the shares have been up six out of the past eight quarters. In addition, when the stock is up the day after earnings, it has moved an average of 18%.

With the strong price action and history of strong fundamentals, you would think there would be a lot of optimism ahead of this report. On the International Securities Exchange and Chicago Board Options Exchange, there have been nearly four times as many puts than calls bought (to open) during the past 10 days. More than 28% of the stock’s float is shorted, too, and a strong earnings report could cause a significant short-covering rally.

Exit Parameters

Priceline.com (PCLN) is currently trading at $102.44. We recommend closing the position if the stock rises to the target price of $118.00, or falls to the recommended stop-loss price of $94.90. If neither price is reached, we recommend closing the position on Friday, May 15, 2009.

Recommendation for Thursday, May 07, 2009

Brinker International (EAT)

Buy the Brinker International (EAT) June 15 call (EATFC). The option is currently offered at $3.60.

Commentary

The company in question owns, develops, operates, and franchises various restaurant brands primarily in the United States, including Chili’s Grill & Bar, On The Border Mexican Grill & Cantina, Maggiano’s Little Italy, and Romano’s Macaroni Grill. The company’s name is Brinker International, and its stock has been nothing short of amazing lately.

Since the beginning of this year, Brinker shares have rallied by more than 65%. When we last traded the shares, they were consolidating above their 20-day moving average while in the midst of a pullback to this trendline. These drivers are still in place, and we still like this trade.

In addition to its strong technical outlook, option speculators have continued to buy more puts than calls. We also see that the 17.50 strike is home to peak put open interest in its May series of options. As we near expiration, an unwinding of hedged bets related to this open interest could create a floor for the shares and even propel them higher.

The equity’s performance has earned it a Zacks Rank of 1, which is the highest possible rating given by their proprietary ranking system. According to Zacks, Brinker also sports 12 “hold” or worse ratings among the 13 analysts following the stock. Sooner or later, some of these bears will have to jump off the bandwagon and issue upgrades.

Exit Parameters

Brinker International (EAT) is currently trading at $17.87. We recommend closing the position if the stock rises to the target price of $20.00, or falls to the recommended stop-loss price of 17.25. If neither price is reached, we recommend closing the position on Friday, May 15, 2009.