Online resources for news monitoring 0 comments

DanielXX's intro: Although I provide a daily summary of the market which includes top gainers and losers (small/mid-cap), some readers have been asking me where to get updated news and information since I always preach "buy-and-monitor". Hopefully the article below, which examines the issue from the context of the US stock market but lists online resources that are relevant across the board, will be helpful. It is published with the kind permission of Ms Binni Ong, otherwise known as Marc on the Bullfish forum (the full article titled "Travelling Trader" first appeared in the Singapore Business Visitor).

This also gives me an opportunity to introduce readers to Terraseeds, which organises market trading courses; Ms Ong is the head of the technical analysis team.

(P.S: The following were extracted from another source and is not my original work.)

Which market should I invest in?
The most popular market is probably the US, which accounts for roughly 50 per cent of the world's market capitalisation. The different exchanges in that country offer a wide range of investment products for stock, commodities and currencies and so on. If you are interested in technology stocks, you could trade in the NASDAQ (www.nasdaq.com). If you want to hedge against rising oil prices, the energy futures contracts traded in NYMEX (www.nymex.com) would be an option. If you want to trade during non-office hours, the US is a suitable market.

What trading software can I use?
Brokerages have their own proprietary trading whereby users could place their order via an online access or install a trading program in the computer If you subscribe to online international brokers like Interactive Brokers (www.interactivebrokers.com), Xpresstrade (www.xpresstrade.com) or OptionXpress (www.optionsxpress.com) , you are able to trade in major exchanges in US, Europe, Asia and Australia. Many of these brokers provide educational materials, streaming news and charting tools that are essential for trading.

Where can I get news and information?
One of the main advantages of trading the US market is the vast number of online news providers. Before the bell in Wall Street, I visit major online news portals such as Marketwatch (www.marketwatch.com). Reuters (www.reuters.com), Briefing.com (www.briefing.com), and Yahoo Finance (finance.yahoo.com) to update on major headlines and stories of the day. The section on stocks to watch is important: it usually contains a summary of stocks that are 'hot' or are expected to see active trading prior to forthcoming financial reporting or corporate actions such as merger and acquisition.

If you do not have time to search for individual companies' financial status, download free java-based or web-based stock screening programs to select potential stocks. MSN Moneycentral (moneycentral.msn.com), Morningstar (www.morningstar.com), and Yahoo Finance stock screener (screen.yahoo.com/stocks.html) are fast and free tools that filter and highlight stocks based on industry type, analysts' estimates, financial ratios, and many other criteria.

You can also download charting tools to assist in entry and exit timing. Charts analysis is based upon the study of the market and price behavior. It can be used singly with no fundamental input, or supplemented with fundamental information, I like Medved Quotetracker (www.quotetracker.com), and ProRealTime (www.prorealtime.com); they customize various technical indicators.

Can I practice my trading?
Try virtual trading to gain experience without putting your money on the line. Interactive Brokers and OptionsXpress offer customers a paper-trading module that simulates all aspects of investing and tracks on real-time the performance of their investments, but is for customers who have funded their account. Otherwise, use the free stock simulator by Zack.com (www.zacks.com). Upon registration, you start trading with a virtual sum of US$100,000 in US exchanges.

A salient point to consider before making investment is risk management ie limiting financial loss. My principle is: Invest with spare cash that you can afford to lose. The market is an efficient and unforgiving place that does not condone impulsive behaviour. The travelling trader has to make additional efforts to keep up-to-date with the latest developments. Adhere to a strategy and do not let up. Recognise when you are not able to cope; take a step back to make a revision. Stick to these principles and investing can be rewarding, both in financial terms and a sense of achievement.