Secrets to understanding the stock market and its mentality

I have watched the stock market for some time now. Its an amazingly complicated yet simple cyborg machine. Half powered by computers and the other half by man. Granted that most of the problems come from men and the machine simply does what it is told.

I started trading demo money in the forex arena. Simple platforms that you just download, install and sign it to. Easy enough. I had to learn the terms like, stop loss, take profits, margin calls, and buy trades and sell trades. Once you get the nack of those words you can pretty much trade in forex.

Forex is currency hedging or simply gambling. Basically you gamble on the value of one currency against another. Lets say the USD and The Euro. If you think the dollar will gain value against the Euro then you do a buy trade with the doller or a sell trade against the Euro. Pretty simple.

Only one problem. The market has a way of making a fool out of you. The only way to trade is to watch the news really carefully and hedge on the reports that come out on msnbc and the like. Be carefull though as there are people out there that like to play you in the market. What I mean by that is the big ol rich people like to bump big gobs of cash into the system just to break your bank. Its not fair, but it is legal for them. So watch your back. Also have to make sure that you have a good company platform that won't nickle and dime you to death. Every trade is split betwen them and you. Find the company that has the best deals.

My prediction is that the USD is going to continue to rise for 4 weeks. After that, its going to turn around and begin a down cycle for a couple months. Oil, comodities, and inflation related items are going to start an up climb. Oil is going to break the $100 mark because that is what the oil tikes want, so count on it. I also expect Gold to skyrocket during the dollar downturn. Silver and Platinum will also push up as the dollar falls.

Listen closely to the ECB and the Central Banks as well. There have been a lot of new policies created that are changing the arena.

One last note. Watch the futures. These are important indicators to the days market moving. If your good you can tell what the day will be like before it ever starts.