About the Elliott Wave Theory & How to Use the Internet to Find a Reliable Broker

Elliott Wave theory was developed by Ralph Nelson Elliott during the 1930s. Elliott analyzed the trading data of more than 70 years and came to the conclusion that, rather than the popular belief that the stock market works chaotically, it actually follows a discipline. He gathered enough evidence to support his theory when he was 66 years old. He wrote a book called `The Wave Principle’ [http://www.elliottwave.com/introduction/elliott_wave_principle.aspx] describing his principles.

According to Elliott, the market follows a repetitive cycle. The cycles were the emotions of the traders. These emotions were influenced by outside elements like media, public discussion etc. He explained that the uptrend and downtrend in the market were following repetitive patterns. He called these swings as `waves.’ He though it would be possible to predict the future direction of a stock if it’s repeating patterns could be identified. At this point, Elliott’s theory becomes attractive for the traders as he promises to find out the possible reversal point. Said otherwise, Elliott discovered a way of catching the tops and bottoms of various stocks.

Elliott Wave theory includes three fundamental corrective patterns, which are- zigzag, flat and triangle. These three patterns create 21 types of patterns to be found in the chart. Expert forex traders admitted that they have found waves in their trading charts. However, doing so takes hours of practicing. You should dedicate enough time to get yourself comfortable with the theory. Once you have got the basics, the Elliott waves will soon be an integral part of your trading strategy.

How to Use the Internet to Find a Reliable Broker for Stock Trading

In this age of internet, finding out the actual information about a forex broker is not very hard. Plenty of forex broker reviews are available on various websites. You can analyze the reliability of your chosen forex broker with only a few clicks of your mouse. Make sure that your preferred broker does not have any substantial actions taken against it in the past.

Also try to find out if there are any complains about problem in withdrawing funds from the broker. A common characteristic of the scam forex brokers is their impossible money withdrawal system. All is well with them as long as you keep trading and keep profiting. But, all these changes when you try to withdraw your profits. Suddenly a lot of issues arise out of nowhere, all of which delays your withdrawal. These instances clearly indicate a scam forex broker.

If you have looked online and have not found a single complain about any withdrawal issue with your current broker - that is a very good sign. If the broker processes all the valid withdrawal requests at the quickest time possible and seems to not make any excuse for delaying any payments - it is probably legit. If It also has a physical office in your country that you can go to if any issues come up or just to go over for a cup of coffee - then it is even ideal.

Also very important are detailed terms and conditions on the website (stated clearly and publicly) that make it clear that the broker does not guarantee instant success or any secret formula for its clients. Rather, that the broker encourages its clients to be knowledgeable about the market and form their own strategies and that the professionals of the company are always ready to provide any necessary help.

To Sum things up - if a broker promises you instant success - you should probably stay away, but if the broker stands in line with all of the above criteria, you are on the right path to trading without having to need to worry yourself about the authenticity and agenda of your broker.

About Author: Alfatrade is an FCA Regulated international trading company.

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