In the not too distant past, if you wanted to trade stocks you had to pay huge fees to use a full service broker. It was so expensive the average investor could barely afford it and many couldn’t at all. However, today there are many great discount online brokers to choose from and most offer free accounts that take just minutes to sign up for. And trading fees are low, way low. As low as $3-$5 a trade.

Choosing the “best” online stock broker is important since the broker will be carrying out your investment trades and maintaining your accounts. However, finding a good online stock broker can be unnerving due to sheer amount of investment firms and banks vying for your business. Everyone claims to offer the “best trades” and the “lowest prices.” So how do you decide which online stock broker best meets your needs?

EVALUATING ONLINE BROKERS

While choosing an online stock broker, the first thing to take into consideration is whether you need a full service or a discount broker. While full service brokers offer a comprehensive range of services, discount brokers generally only execute trades on behalf of the clients. As a result, discount brokers generally charge lower commissions. Some other parameters to compare online stock brokers on are:

Trading platform: Online trading can become quite confusing and cumbersome, if the software provided by the online broker lacks ease-of-use. If the broker’s website takes too long to load or is too confusing, your trade result can be grossly affected.

Products offered: When choosing an online broker, people generally only think of stocks. However, some online brokers deal in other investment vehicles as well, such as futures, options and gold contracts. If you seek diversity in your investment portfolio, find online brokers who manage multiple investments. 

Minimum deposit: Most online brokers charge a minimum deposit to execute, which may be as high as $10,000. Evaluate your financial capacity and choose a broker accordingly. Note that some online stock brokers do not charge any minimum deposit, although this might mean compromising on some additional services.

Customer service: Since online trading may become boggling at times, it is important that the online broker maintains appropriate real-time over-the-phone and online customer service. Lack of proper customer service may leave you confused and frustrated. Also, ensure that the online broker’s customer service provides regularly account statements, for you to track your progress.

Finally, note that the right online stock broker can make or break your progress on the stock market. Good brokers undertake research activities to keep their clients abreast of the best strategies to optimize returns from stock trading.

I’ve used Fidelity, Sharebuilder, Scottrade and a number of other online brokers.  But I found a broker with a mix of all the right qualities: great customer service, an easy to use website, no minimum deposit, great security, fast trade execution and, most importantly, LOW, LOW trading fees. Tradeking takes the prize in my book. They offer . Sign up today. You’ll be glad you did.  It’s free to sign up and it literally only takes minutes.

It’s been a crazy week on Wall Street.  The move has been mostly down with the exception of yesterday’s tremendous rally because of the GM IPO and a better than expected economic report (Philadelphia Manufacturing).  But all week the retail sector has been strong, and today’s Company Invest pick, Lowe’s (LOW) in particular looks poised for a big rally.

COMPANY INVEST TECHNICAL ANALYSIS

Looking at the chart “A” is the 3-day Relative Strength Index.  As you can see the momentum is positive and it is about to break through 50.  RSI readings above 50 are considered quite bullish.

“B” is the price chart.  Notice, instead of the usual candlesticks, I chose to display a line chart.  This is good for seeing certain patterns.  There is a powerful bullish pattern called the “W” pattern.  Essentially it is a double bottom pattern where the stock sells off, rallies, then pulls back again before really taking off, thus forming a “W” shape.  Two keys to this pattern:  #1 the second “V” of the “W” should not dip as low as the first.  What this says is that after a rally, there was just some normal profit taking (not a heavy selloff).  #2  The most powerful occurrence of the “W” pattern is when you see it occur right under a major moving average.  That’s because many short sellers place their stops right above moving averages.  So the theory is, if the stock price breaks through the moving average, those shorts will be forced to cover and buy back shares they sold, thus making the stock move even higher.  If it sounds confusing, don’t worry.  Just look for the W under either the 50 day or 200 day moving average with the right side higher than the left and you’ve got a winner.   And look at Thursday’s chart of LOW.  BINGO!

“C” is the MACD histogram.  Yesterday we got a bullish pPp reversal on the chart.  This is a 3-bar reversal where you have a selling bar, a deeper selling bar, then a shallower selling bar.  Confirmation of this pattern will occur when LOW closes above $21.64 (yesterday’s close).

“D” is the slow stochastic momentum indicator.  Notice the nice higher low the stochastic put in (green up-sloping line).  Also, we got a bullish touch of the signal line (black) with the stochastic line (red).  Look for a solid cross of the signal line to the upside for confirmation.

Company Invest Bottom Line: Looking at the black parallel lines in the price chart it looks like LOW could easily gain 10% in the near future and move to the $23.25 area for a great trade.  Start with 50 or 100 shares and put a stop in at $1 below the purchase price.

Company Invest Recent Picks:  Still holding ERY and QID despite a rough day yesterday.

ALSO KNOWN AS PAPER TRADING

 A stock market simulation game is a great way to practice your investment skills before actually investing any “real” money in the stock market.

Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision.   This is commonly referred to as “paper trading.”

Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge.

HOW DOES IT WORK?

First, players must register. After registration, players are given an initial sum of “virtual” money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data.

The objective of most stock market simulation games is simple:

To increase the value of your portfolio of stocks so that it is greater than that of the other game players.

TIPS ON PLAYING

Below are some tips on choosing a stock market simulation game:

• Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide.
• Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world’s major markets.
• Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies.
• Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have.
• Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience.

There are many good sites and discount brokers that offer stock simulators such as Wall Street Survivor
, one of our advertisers.  Click the ad at the right to sign up for a free account.  You can trade just as if you were in the market and there are lots of great prizes! And you can paper trade stocks, options, and commodities.  It’s a harmless way to “get your feet wet” while you are learning how to trade stocks.  www.investopedia.com is one site that offers a nice investment simulation for free.

COMPANYINVEST.COM TRADING UPDATE 

Both of our recent picks, QID and ERY are doing wonderfully.  We added shares of QID to our position during today’s trading.  Tune in tomorrow for another great stock pick!

At Company Invest,  we strive to provide analysis to give readers the most accurate forecast for the best stocks to buy based on recent chart signals.  We use technical analysis as our primary trading strategy.  For those who don’t know, technical analysis is the study of stock price charts.  We get signals from a variety of indicators including chart patterns, support and resistance levels, Japanese candlestick signals, moving averages, volume, and a variety of momentum indicators.

Before we get to the charts, on a macro level there are some interesting news events to consider.  With last week’s Federal Reserve decision to enact Quantitative Easing (QE2), many assumed, and rightly so, that the dollar would get trashed while commodities, especially precious metals would soar.  And that pretty much came true last week with gold hitting a new all-time high above $1,400 an ounce.  However, it seems to me this week (in a 180 degree reversal to that theory) that the Fed would like to strengthen the dollar.  There seems to be a sector rotation going on here that started yesterday and continued today.  The sector rotation appears to be a move out of gold, commodities, and treasuries and into stocks.

That brings us to today’s Company Invest pick, ERY.  ERY is a bearish Exchange Traded Fund (ETF) for the energy sector.  With what seems to be a coordinated effort to strengthen the dollar and with the dollar’s chart (UUP) looking quite bullish, the energy sector is setting up for a big correction.  And, by buying ERY, you can capitalize by making money when energy stocks go down.

COMPANY INVEST TECHNICAL ANALYSIS

Looking at today’s chart, “A” is the Relative Strength Index (RSI) set to the 7-day period.  At a reading of 10.44, the RSI is more oversold than it has been for at least 6 months (this entire chart).  This tells us a bounce is coming.

“B” is the ERY price chart.  Last Thurs, Nov 4 ERY gapped down pre-market and then continued to sell off throughout the day.  A “gap” occurs when prices move up or down outside of the trading session (in futures trading).  Technical analysis tells us that most of these gaps are eventually filled, meaning there is a very high probability that ERY goes back to the $34-$34.50 area in the near term.  That would mean over an 11% possible gain on a quick swing trade.  Also, yesterday’s candle was a hollow red candle, which indicates a reversal could be imminent.  The hollow red candle meant that ERY gapped down premarket yesterday, moved lower, then rallied the rest of the day to close higher than it opened, yet still lower (barely) than the previous day’s close.

“C” is the MACD histogram.  A shallower blue bar at the end of today’s session would indicate a reversal and a possible bullish divergence between the histogram and the price chart.  These bullish divergences happen when prices make a lower low, but the histogram makes a higher low (see sloping up green line on histogram and sloping down red line on price chart).

Finally, “D” the slow stochastic momentum indicator got a bullish cross (signal line “black” crossed up through the stochastic line “red”).

Company Invest Bottom Line:  This trade has a good risk reward.  You can buy it here and put a stop at $29.20, for a move to $34-$35.

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WHAT IS THE VIX?

 We strive to introduce new trading strategies at companyinvest.com.  Today we talk about a contrarian indicator, the VIX index.

 The VIX is the symbol for the Chicago Board Options Exchange’s volatility index. It measures implied volatility (not historical or statistical volatility) of a wide range of S&P 500 options. It is often called the “investor fear gauge” because it reflects investor’s best prediction of near-term market volatility, or risk. In general, VIX starts to rise during times of financial stress and lessens as investors become complacent. It is the market’s best prediction of near-term market volatility.  The good news is we can use the VIX to forecast the future direction of the market.

 HOW CAN YOU VIEW THE VIX?

 You can access the VIX index using your stock software or any major online trading platform software such as www.stockcharts.com or Yahoo Finance.  Enter the symbol “$VIX”. 

 USING THE VIX TO TRADE

 There is an old clichéd saying about the VIX index that goes:

 ”When the VIX is high, you buy… When it’s low, you GO!”

Looking at today’s chart of the VIX, “A” is the 3-day relative strength index (RSI).  Look at the past 3 times the levels were this oversold (green circles).  They all led to rallies in the VIX, while at the same time corrections in the S&P 500.  Here’s how they played out:

• June 21-Jun 30 VIX rally =     10.67% Correction in S&P 500
• July 12-July 18 VIX rally =     3.93% Correction in S&P 500
• October 19-20 VIX rally =       2.6% Correction in S& P 500
• November 5 to ? =                  3 to 10% S&P Correction on the HORIZON!

 ”B” is the price chart.  Right now the VIX is approaching a several month low, so if the saying rings true, you should sell some of your long positions or consider going short for the impending correction.  Also, today’s candlestick is a doji, indicating a probable change in trend.

 ”C” is the MACD histogram, a wonderful forecaster of trend change.  It looks like a bullish divergence is forming, meaning the VIX price made a LOWER low, while at the same time the MACD is forming a HIGHER low.

 Bottom Line: Position yourself for a 3 to 10% market correction.

 RECENT COMPANY INVEST PICKS

 We found some hot stocks recently!

 US Steel (X).  We said to buy shares at the $40 level on October 28, and since then the stock has rallied over 21%!  Many investors don’t get that kind of return in a whole year.  What to do:  Take 3/4 to all of your position off and put the profits in your pocket.

 Double Bull Gold (DGP).  We said to buy shares at the $39 level.  The trade is currently up 6.5% and still rising.  What to do:  HOLD or put a 5% trailing stop in.

In today’s environment where Central Banks are intervening, Quantitative Easing is the buzzword, currency manipulation is ongoing, there is much volatility in World currencies.  Should you trade currencies? How can you?  One way is to use ETFs.  The following is a short list of currency ETFs you can buy/sell:

• US Dollar                              UUP
• Australian Dollar               FXA
• British Pound                      FXB
• Euro                                        FXE
• Japanese Yen                      FXY
• Chinese Yuan                      CYB
• Canadian Dollar                 FXC

Forex Trading is another option.  Forex trading online is a fast way to use your investment capital to it’s fullest. The Forex markets offer distinct advantages to the small and large traders alike, making Forex currency trading in many ways preferable to other markets such as stocks, options or traditional futures. Here are seven reasons why you’ll want to look into Forex Trading online.

1 – Forex is the largest market.
Forex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.

2 – Forex never sleeps!
You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they’re open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)

3 – No Bulls or Bears!
Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an equal opportunity for profit no matter which direction the currency is headed. Another advantage is that there are only around 14 pairs of currencies to trade, as opposed to many thousands of stocks, options and futures.

4 – Forex Trading online offers great leverage!
You can make the most of your investment resources with Forex trading online. Some brokers offer 200:1 margin ratios in your trading accounts. Mini-FX accounts, which can typically be opened with only $200-300, offer 0.5% margin, meaning that $50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex trading online as a way to highly leverage their investments.

5 – Forex prices are predictable.
Currency prices, though volatile, tend to create and follow trends, allowing the technically trained Forex trader to spot and take advantage of many entry and exit points.

6 – Forex trading online is commission free!
That’s right! No commissions, no exchange fees or any other hidden fees. This is a very transparent market, and you’ll find it very easy to research the currencies and the countries involved. Forex brokers make a small percentage of the bid/ask spread, and that’s it. No longer any need to compute commissions and fees when executing a trade.

7 – Forex trading online is instant!
The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds. Since this is all done electronically with no humans involved, there is little to slow it down!

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

As you can read from the previous Company Invest blog, we’re bearish at this point in time, so it becomes difficult to recommend many stocks for a trade.  The S&P is way overbought right now, as are most individual stocks.  In addition, the market is moving up now based on anticipated federal reserve stimulus measures and not on economic fundamentals.   This all indicates to me that we will see a significant correction sometime in the not too distant future.  When is the only question.

Today’s Company Invest spotlight is the James River Coal Company (JRCC).  At $17.00 it’s an affordable play for the average investor.  And, being a commodity/energy stock, it tends to move up as the dollar goes down, which has happened since early September.

COMPANY INVEST TECHNICAL ANALYSIS

“A” is the Slow Stochastic indicator.  It just curled back up at the “50″ level and got a bullish cross (black line crossed up through the red line).  80 is considered overbought, so this stock could have a little run left in it.

“B” is the upward channel the stock has been trading in.  Based on the channel, a move up to 18.25-18.50 could happen in the next 3-5 trading sessions. While that doesn’t sound like much of a move, if you had 500 shares on, you could make a $750 profit in just a few trading days. Also, notice the “tail” on today’s red candlestick.  A long tail like that indicates a short term bottom.

“C” shows there was light volume today on a selling day.  Volume has been heavier on up days, which showindicates more buyers than sellers.

“D” shows the MACD is above the zero line and in bullish territory.

Company Invest Bottom Line: Grab it for a trade with a stop below $16.  You could get $2+ out of it in a short timespan.

Simulating the stock market can be a lucrative and educational way to learn the fluctuations and risks before actually doing the investment at the first place. With this way, you can get accustomed with the stock market and foresee the upcoming development before it happens.

Simulating stock market can usually be played on the internet and you can invest virtually by not risking your money without any cost if you make bad investment choices. This practice is actually recommended in the schools and financial institutions to learn the real environment of stock before actually “entering” in it. The simulation games comes with subscription fees as a starting cost or you can play it for free in most websites. Most of them doesn’t need to have a prior knowledge of stock market. In these website, after you register to the website, you are given some virtual money to invest any company you want in the stock market. You can build a portfolio with the companies that you think they will be most successful. Time to time, you get real time data on your investment to learn whether you earn or lose money.

To use the simulation games, you need to check the closest university or financial institutions to learn which simulation website they are recommending. And then, register the website and choose your investment on which class will be assessed. The investment classes can be either in finance, economics or investment class. You can get information about how to trade stocks, options, futures, mutual funds from US or other countries’ stock markets. The simulation game also should be easy to use, reliable and flexible to use different strategies if something goes wrong.

Overall, simulating the stock market is a great way to get accustomed to stock market and learn how to earn most money on the stock market.

The last economic crisis of the global stock market cost the investors a lot of money. Majority of investors lost money, retirement funds melted away and unemployment rate went sky high due to lay off in the manufacturing plants.

Because of the fluctuations in the stock market, investors seek for alternative ways to protect their investments. This driving force increased the global real estate market rapidly. If you haven’t consider investing to real estates globally, here are tips to increase your profits from real estate investments.

1) Think of Real Estate Globally. Do a research on what country can have a potential for economical growth. While developed countries such as USA, UK, Europe and Australia real estate markets are slowing down, developing countries like Bulgaria, Croatia and Turkey have a booming real estate market right now. You may need to do more research on possesing property and tax regulations in the given country before buying a property to compare the potential cost of ownership.

2) Assess your plan to make sure that it is profitable.  Think about the potential future political and economical changes before buying a real estate. With a proper plan, you can predict the market fluctuations and protect your investment.

3) Plan for the worst. When you make a plan, it is important to think about the worst as well. With this way, you can plan anything that can be possible.

4)  Consult an expert before the final investment. A real estate agent can save you thousands of dollars when you buy the property. With this way, you may save a lot of money and learn the market quickly.

5) Buy what you can afford. Most people like to buy what they want. An investment that fits to budget always prevents a possible future bankruptcy if something goes wrong. Ideally, a conservative budget is preferred when buying a property. With this way, you can have extra money for the unpredicted expenses for the property.

Finally, make a budget by adding all possible costs to own the property such as legal fee,s, real estate agency fees, taxes, etc. You also need to think about the potential renovation costs if you need to. Overall, real estate is a great way for investments and you can achieve your goals by using our recommendations to prevent surprises.