Page 27 - NEW FOREX FULL COURSE

FOREX TRADING COURSE FOR BEGINNERS

Full-service brokers work with investors to understand their investment goals in order to put
together a financial plan that is suitable. They look at all aspects of an investor’s portfolio, they
understand the investor’s investment risk tolerance, and they work with the investor to assist
them in managing all of their financial needs. They can also assist with estate planning, provide
advice on retirement investing, and provide tax advice. Due to the plethora of services they
provide, they are more expensive than discount brokers, but their fees are worth it for the
investor who needs this level of service when buying stocks online.

When buying stocks online, you can utilize the services on an online discount broker whose job
is basically to take orders and provide the most inexpensive way for you to begin investing in the
stock market. A discount broker is basically the same as regular online brokers, but they charge
very small fees. They charge per transaction and they allow the investor to open an account with
very few funds, comparatively. They do not provide any advice on investment decisions, or
recommendations, and basically are only there to ensure that your transaction has been made.
They do however provide resources online such as investment newsletters and research and
reports for their investors. It is recommended that new investors interested in buying stocks
online begin with a full-service broker, and then once they know what they are doing, they move
to an online discount broker. That of course is completely up to the investor.

Once you have decided what type of online broker you will use, you then need to decide which
brokerage firm you will use. Be sure that you thoroughly research those firms of interest, and
also be sure to speak with other investors for referrals, as well as check out the customer service
for every firm you look into. This is one of the most important decisions you will make with online
investing.

MARKET DIRECTIONS

What is one of the basic investment fears? When to take profits! Because it is hard for most
investors to make profits in the first place, a new dynamic comes into the picture when trades
have produced big profits. What is the first inclination for most investors? Take profits
immediately, before they get away. How embarrassing it would be to have big profits and let
most of it slips away. What is the fallacy of this thinking? A decision is being made based upon
completely different criteria than why the initial trade was established. It was bought based upon
buy signals occurring in the proper conditions. The buy signal probably occurred when the
stochastic showed oversold conditions.

Additional confirmation would have been witnessing the signal occurring at an obvious support
level, a major moving average or trend line. What was expected upon purchasing the position
when the indicators showed it was time to buy? The price would go up! Now what happens when
the price does move in the correct direction? A whole new set of emotions take over. We do not
want to lose the profits we have made. We do not want to look foolish by letting a profit turn
back into a loss. What if some announcement turned the price around immediately? What if
selling started and we could not liquidate the trade fast enough? All these questions start
entering the mind.

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