TOOLS TRADES - School Articles

May

4 Tips for Today’s Trading - 01/05

: English; SCHOOL; 01 May 2015

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

1. Earnings galore

Chevron (CVX) and CVS (CVS) are among the key companies reporting ahead of the open.

Warren Buffett's Berkshire Hathaway (BRKA) is reporting after the close. Many of Berkshire's top investments are off to a lousy start this year, raising the possibility that shareholders will voice concerns about performance at the annual meeting in Omaha on Saturday.

2. Stock market movers -- LinkedIn, Lloyds

Shares of LinkedIn (LNKD, Tech30) plunged as much as 27% in extended trading after the company lowered its outlook for the year. This is the latest social media firm to see shares tank this week after reporting disappointing results.

Over in London, shares in Lloyds Banking Group (LYG) are jumping by 4% after the bank released positive quarterly figures showing falling debt and higher underlying profits.

3. Stock market overview

U.S. stock futures are looking relatively stable ahead of the open.

Most European markets are closed Friday as Europe celebrates the May Day holiday. London's FTSE 100, the only major European market that's open, was edging down in early trading.

Most Asian markets were closed Friday.

4. Thursday recap

It was a difficult day in the markets on Thursday.

The Dow Jones industrial average lost 195 points, the S&P 500 fell 1% and the Nasdaq closed with a 1.6% loss.

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Apr

Technical Analysis Lesson 2 - The Basic Assumptions

: English; SCHOOL; 30 April 2015

Just as there are many investment styles on the fundamental side, there are also many different types of technical traders. Some rely on chart patterns; others use technical indicators and oscillators, and most use some combination of the two. In any case, technical analysts' exclusive use of historical price and volume data is what separates them from their fundamental counterparts. Unlike fundamental analysts, technical analysts don't care whether a stock is undervalued - the only thing that matters is a security's past trading data and what information this data can provide about where the security might move in the future.

The field of technical analysis is based on three assumptions:

1. The Market Discounts Everything

A major criticism of technical analysis is that it only considers price movement, ignoring the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company - including fundamental factors. Technical analysts believe that the company's fundamentals, along with broader economic factors and market psychology, are all priced into the stock, removing the need to actually consider these factors separately. This only leaves the analysis of price movement, which technical theory views as a product of the supply and demand for a particular stock in the market.

2. Price Moves in Trends

In technical analysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption.

3. History Tends To Repeat Itself

Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze market movements and understand trends. Although many of these charts have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves.

Not Just Stocks

Technical analysis can be used on any security with historical trading data. This includes stocks, futures and commodities, fixed-income securities, forex, etc. In this tutorial, we'll usually analyze stocks in our examples, but keep in mind that these concepts can be applied to any type of security. In fact, technical analysis is more frequently associated with commodities and forex, where the participants are predominantly traders.

Now that you understand the philosophy behind technical analysis, we'll get into explaining how it really works. One of the best ways to understand what technical analysis is (and is not) is to compare it to fundamental analysis. We'll do this in the next section.

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Apr

4 Tips For Today's Trading - 30/04

: English; SCHOOL; 30 April 2015

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

1. Earnings and economics

Earnings season continues in full swing with Time Warner Cable (TWC) and Exxon Mobil (XOM) reporting ahead of the open. Expedia (EXPE), LinkedIn (LNKD, Tech30) and Visa (V) will report after the close.

On the economic front, the U.S. government posts weekly jobless claims at 8:30 a.m. ET. It will also report personal income and spending numbers at 8:30 a.m. ET.

2. Oil climbs

Crude futures ticked up 1% in electronic trading to hover just above $59 a barrel. Oil is trading at its highest level this year, helped along by a weaker than expected U.S. supply report on Wednesday.

3. International markets

European markets are heading south in early trading, with France's CAC index down 0.8%. Shares in oil giant Shell (RDSA) rose 1.7% in London after its first quarter profit result beat analysts’ expectations. Telecoms equipment maker Nokia (NOK) disappointed investors with its first quarter earnings -- the stock tanked 9%.

Asian markets ended the session lower. Japan's Nikkei tumbled 2.7% after the central bank left its policy unchanged.

4. Wednesday market recap

It was a soggy session across U.S. markets, with the Dow Jones industrial average losing 75 points, while the S&P 500 fell 0.4% and the Nasdaq closed 0.6% lower.

Still, major U.S. indexes are on track for slim gains for April.

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Apr

4 Tips For Today's Trading - 29/04

: English; SCHOOL; 29 April 2015

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

1. Earnings season

Fiat-Chrysler (FCAU), MasterCard (MA) and Time Warner (TWX) are due to deliver results ahead of the open.

Baidu.com (BIDU, Tech30) and Yelp (YELP) are among the firms reporting after the close.

Twitter (TWTR, Tech30) surprised the market with the early release of its quarterly results on Tuesday after they were leaked...on Twitter. Sales were down, but earnings were better than Wall Street expected. Shares were steady premarket after falling sharply following the earnings release.

2. Economics updates

Investors will get a glimpse as to where the U.S. economy stands when the government releases its first look at gross domestic product at 8:30 a.m. ET. Economists expect the data to show growth slowed in the first quarter of the year.

The Federal Reserve will conclude its two-day meeting on monetary policy and release its monthly statement at 2 p.m. ET. All eyes will be on chair Janet Yellen for any clues as to when the Fed will start hiking interest rates.

3. Dollar dips

The U.S. dollar is declining versus the euro and British pound ahead of the Fed's statement. The greenback has lost ground against major currencies in recent weeks as expectations for a hike in interest rates have been pushed back.

CMC chief markets analyst Michael Hewson said recent signs of softness in the U.S. economy have "raised expectations that any move on rates by the Fed could well be deferred, and this in turn has weakened the U.S. dollar."

4. International markets overview

European markets are dipping in early trading, though luxury goods maker Hermes (HESAF) rose nearly 3% in France after reporting a lift in quarterly sales.

Asian markets ended in the red. Japan's Nikkei was closed for a holiday.

Samsung (SSNLF) shares bucked the downward trend with a 1.4% gain in South Korea after its earnings update revealed some signs of recovery for the troubled electronics maker.

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Apr

Technical Analysis Lesson 1 - Introduction

: English; SCHOOL; 28 April 2015

In this series of articles we will talk about Technical Analysis. We will teach you everything you need to know about how to analyze the market so you can earn money from trading.

Today we start with our first lesson:

Techinical Analysis - Introduction

The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental analysis and technical analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians (sometimes called chartists) are only interested in the price movements in the market.

Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.

In this tutorial, we'll introduce you to the subject of technical analysis. It's a broad topic, so we'll just cover the basics, providing you with the foundation you'll need to understand more advanced concepts down the road.

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Apr

4 Tips for Today’s Trading - 24/04

: English; SCHOOL; 24 April 2015

Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

1. Stock market movers -- Amazon, Google, Microsoft, Juniper Networks, Apple

Investors are cheering after a handful of tech heavyweights reported earnings Thursday evening.

Amazon (AMZN, Tech30) stock is surging -- up about 7% premarket -- after the company reported a big jump in quarterly sales. Despite the higher revenue, the online retail giant ultimately lost money over the first three months of the year.

Shares in Microsoft (MSFT, Tech30) are up about 3% premarket after the company released earnings that beat Wall Street's expectations.

Google (GOOGL, Tech30) shares are rising in extending trading, despite falling short of analysts' expectations.

And Juniper Networks (JNPR) shares are jumping -- up nearly 7% -- after the firm's latest earnings surpassed market expectations.

Meanwhile, it's worth watching trading in Apple (AAPL, Tech30) Friday. The company is beginning to deliver its new Apple Watches today. Some customers are going to have to wait longer for their watches.

2. Earnings keep rolling in

American Airlines (AAL), Xerox (XRX) and Steve Madden (SHOO) are reporting ahead of the open.

Regardless of whether the results meet, beat or miss expectations, trading volume is sure to be higher-than-normal for these companies.

3. International market overview

European markets are all posting solid gains in early trading. Asian markets ended the day with mixed results.

4. Thursday market recap