Essential Trading Tools: The Desktop Stock Ticker

 

Buying and selling stock on the internet appeals to many individuals as a result of liberty it gives them being in control of their very own finances. On-line trading offers you the likelihood to immediately trade shares, bonds and commodities. Buying and selling shares on-line offers you freedom to play the stock market, nevertheless it also gives you the only accountability: should you make good choices you get all of the credit score, but in the event you make unhealthy ones you are the just the one to blame.

Whether or not you’re a day trader or just want to keep watch over your stocks, you can make use of a variety of tools to assist you making the appropriate decisions. One of the crucial vital tools is the Desktop Stock Ticker. In case you are determined and do care about your investments, and if you want to earn money buying and selling shares, a desktop stock ticker with access to stock quotes in actual time is crucial. Questioning if a desktop stock ticker with actual time stock quotes really is that vital? Basing your trading or buying decisions on out-of-date stock quotes is obviously a sure way to lose money. It is very important to realize, that stock quotes which are just minutes in the past are considered to be outdated – making selections primarily based on them could make you loose money. A desktop stock ticker with real time quotes will make it a lot simpler so that you can establish the very best time to buy or to sell stocks.

Utilizing an actual time desktop stock ticker when trading shares a house, makes it doable to monitor your portfolio even when you’re doing something else – like watching the financial channel on TV. Most desktop stock tickers may be configured to present you an alert when a stock reaches a certain price or if it adjusts its value at a certain rate set by you.

The US economy is tightly tied to the World economic system, and therefore international events quite often has an excellent impact on the US markets. This makes it essential to have access to actual time inventory quotes – through out your entire buying and selling time. Subscribing to a desktop stock ticker with real time stock quotes will not be free, but it is the only strategy if you are severe about making the precise selections and finally earn a living trading shares online. There are loads of free desktop stock tickers obtainable, however if you need access to stock quotes from the inventory markets in real time, you will have to pay for it. The free desktop stock tickers affords stock quotes which might be delayed sometimes 15 to 20 minutes.

How To Practice Trading For A Living

 

For the past five years my only source of revenue has been revenue derived from trading on the forex market. Over that time period, lots of people, perhaps somewhat envious of my ability to earn money from home without having to report to a boss, have asked me what it will need to buy for a living. How might one arrive at a point where one feels confident enough to get away from ones regular career, strike off on ones own with no warranty of a typical paycheck, and put what might conceivably be ones entire savings up to that point at risk in the markets?

While I unfortunately cant actually give you confidence in you skill to make it on your own, nor the stomach to risk your cash savings, I can spot you the pragmatic steps that I took to get where I am today. These steps do not include the most obvious ¨learn of the existence of the forex market¨, as presumably you already know something about trading, or you wouldnt be reading this pos.

Step 1) Start saving your income. To buy professionally you’ll need a bankroll, and one that is large enough to withstand the ups and downs that are a natural part of trading. For me, this was easy. I had been putting money aside ever since I started working. Those like me that have been raised to figure out and appreciate the value of saving, will accomplish this quite naturally. Yet, if you are a habitual spender and are conversant in living paycheck to paycheck without putting anything extra aside, be prepared to expend some serious effort curbing your habits and learning to save rather than spend. How much money will you need? Unfortunately I cant answer that specifically because it will rely upon the trading strategy that you employ, the amount of leverage you

plan on trading with, and the sum of money that you ought to take out in profits. You should count on having a bare least though, of a full six months salary saved up before beginning full time trading. One years salary would be still better. Remember that the larger your bankroll, the additional money you can earn without risking an unnecessarily large percentage of your bankroll.

Step 2) Get an education. You cant start trading before you know something about the market you are trading in. This education does not need to be formal (as in University classes), and you do not have to understand economic forces as well as Alan Greenspan before getting started. You should, still, have a basic understanding of why the market that you are trading in exists, how buying and selling on that market works, and the strategy that you will employ to take your profits out of the market. There are a great deal of totally free resources on the web that are valuable your time to read (and you might know some opinions and ideas that are NOT worth your time, but reading some of those that are not worthwhile is part of the process of developing discernment about what is and is not an excellent resource).

There are also some inexpensive trading courses on the internet that are helpful. Part of the education process is coming up with a trading strategy that you are snug with, as well as a money management strategy to make sure the long term viability of the trading strategy. There are numerous good trading strategies out there, but irrespective of which one you select, you should realize that the traders that are successful cut their losses early and let their winning trades run. This may be somewhat more hard than it sounds, but is actually the cornerstone to making money trading.

Step 3) Enroll in a demo trading account and begin practicing while you are not at your regular job (or, if you’ve time free and internet access at your work, WHILE you are at your regular job). We list some good forex dealers at forex-rates, so if you are preparing to trade currencies, be sure and enroll in a demo account with one of the listed brokers. In order to get a real feel for the trading strategy that you have picked out, you must do a great deal of practice, so don’t hurry with this step. Dont start trading with real money until you have an actual history of successful demo trading.

Step 4) If you are making money trading on paper and are comfortable with your trading strategy, proceed and get rolling trading for sure on a part time basis. Dont include all of your savings as part of your trading bankroll yet. Start slowly and gain a comfort level. As your confidence builds, move money from your savings to rise the size of your bankroll.

Step 5) When you can calculate that your regular gains from real trading (from step 4) are at a stage where, if you were to trade full time utilizing your current bankroll, you would be making profits that slightly exceed your present employment salary, you are ready to quit your work and trade full time. Remember, you want your trading profits to exceed your current salary. This will present you with the opportunity to maintain your current financial level, but at the same time carry on improve your trading bankroll, which will let you earn more and additional money as the size of your available funds grows larger.

It is significant to have patience with yourself at all of the steps mentioned. Maintain emotional equanimity and realize that fear and greed are a traders most hazardous nemesis. If you can hold on to these emotions under control and look after the discipline established while following these steps, you can look forward to making it as a specialist trader.

Stock Trading – Succeed IN UP And Down Markets

 

Why you ought to be responsive to signs of strong stock and signs of weak stock in the markets. Putting your faith in hope won’t get you profits in the markets. You need to realy understand how the markets work. And being able to name uptrend and downtrend in the markets is essential

The’re two questions that are always asked:

1. What you should do when the security is trending down?

2. What you should do when the security is trending up?

Before these two critical questions may be answered, Continually don’t forget that true weakness comes in on an UP bar and ….

True strength Continually comes in on DOWN bars.

On true signs of downtrend you ought to:

a) initiate new short position(s)

b) reverse old long positions to short

c) close out any long positions

On signs of uptrend you ought to:

a) initiate new long position(s)

b) reverse old short positions to long

c) close out any short positions

Why is your reaction to a strong uptrend (or downtrend) so crucial?

Because whenever a genuine uptrend (or downtrend) is seen the market makers and professionals will observe it right away and react appropriately.

So what is meant by a “true” uptrend (or downtrend)?

You should find a powerful volume bar right away to support your role.

If no such bar is present, that shows that the professional money is not curious about the move because they know the market is still weak (or strong) and you can expect a move in the opposite direction to what you might have thought. Probably resulting in another period of accumulation or distribution prior to the next signal.

The Golden Rule:

Understand where the professional money is and follow them. If they aren’t interested, neither should you be. If they’re interested (shown by buying/selling), then back your judgement.

Most traders don’t have a clue as to what’s going on in the markets. But you will, if you take the time to understand how the experts operate and what causes the moves on the market. You will have to time your entry and exit indicates near perfection.

For instance: After a sharp move up you ought to expect a down move. After a powerful bar up, sellers are tempted by the new high costs. This can be viewed by any lack of follow through and the look off a powerful down bar. Those who matter ( the experts) would see this, enter their positions, and force the market down.

Then again, after a sharp down move, you can anticipate weakness. Look for a classic “test” Search for the experts entering the market and go with them.

It is essential that you actually understand how the markets work before you set about trading. So many people ignore this fact. This is one of the reasons why they never really “get it”.

 

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Stock Trading Online – You Should Have A Trading Edge

 

Unless you are able to develop a considerable trading edge over the other traders, you will finish up losing your income, even if you are disciplined and organized. In this report, I talk over some elements that I use in my trading edge.

Fundamental Analysis

Fundamental analysis is the procedure of evaluating the financial condition of a company using financial incidents, price/earning ratios, revenues, market share, sales and growth, etc. This sort of analysis may be long-drawn-out so rather than going through pages of financial reports, I merely look at IBD ratings.

I love to use Investor’s Business Daily (IBD located at investors.com) to acquired a quick overview of a stock. The IBD rating covers:

1 – Earnings Per Share (EPS) rating: tells me a stock’s average temporary (recent quarters) and long term (last three years) earning growth rate. The number I see is how the company compares to all other companies. The scale runs from 1 to 99, 99 being the best.

2 – Relative Price Strength (RS) Rating: Measures a stock’s relative price change in the past 12 months compared to all other equities. The scale runs from 1 to 99, 99 being the best.

3 – Industry Relative Price Rating: Compares a stock’s industry price action in the last 6 months to the other 196 industries in IBD’s industry list. The scale is from A to E, A being the best.

4 – Sales + Profit Margins + ROE (Return on Equity) Rating: Crunches a firm’s sales growth rate during the last 3 quarters, before and after profit margins and return on equity into one letter. The scale is from A to E, A being the best.

5 – Accumulation/Distribution rating: Applies a formula of price and volume changes in the last 13 weeks to evaluate if it is being accumulated or distributed. A = heavy buying, C = Neutral, E = heavy selling.

If you like the thought of including fundamental analysis into your trading plan, consider trading only stocks that meet some minimum requirements – as an example A or B, > 70, etc.

I love to use fundamental ratings for longer term trades such as the ones I plan on weekly charts. It is not truly helpful if you trade intraday.

Technical Analysis (visit our sister  sites www.technicalindicators.biz, www.patterndaytrading.org and signaltrading.org}

Fundamental analysis is great to build an index of strong stocks, or as a method to filter out weak stocks, but that is about it. It doesn’t provide you with an objective method to enter and exit trades. All my trading decisions (entry, exit, and stops) are founded on technical analysis.

Technical analysis is the research of prices. The amount action draws patterns on charts and because human behavior can be repetitive, the amount patterns can likewise be repetitive.

You can choose from an assortment of chart types. The Japanese candlestick charts are by far the best and it is the only form you need. The’re entire books dedicated to the learning of candlestick patterns – if you are serious about studying candlestick charts, look at books written by Steve Nison and and Gregory L. Morris.

– Support and Resistance: The most significant concept in technical analysis is Support and Resistance. It forms the foundation for every trading decision and could cover pages but I will limit myself to simplified definitions and a couple examples:

Support level: A price level that a declining market or stock failed to go into

Example: the reduced of the last day forms an area of support and is frequently used as a stop loss.

Resistance level: A price level that a rising market or stock failed to break through

Example: a prior excellent for an uptrend forms an area of resistance and can be used as a nominal amount objective to take a few profits.

Some technical indicators may also provide some support and resistance, as an example moving averages, in part maybe because so many traders expect it.

– Oscillators

An oscillator is a technical indicator that tells you at a glance whether a market or a stock currently trades in an "overbought" or "oversold" condition. Some traders use oscillators to forecast a change of direction. Some examples include the RSI, Stochastic Oscillator, and MACD.

 

There are many oscillators and technical indicators. I personally look at them to filter out some stocks if I have too many good ones to choose from. I never give them a try as a sign to open or close a trade.

 

– Public Sentiment

I search for support and resistance on the VIX (Volatility Index) daily chart to anticipate reversals.

I look at the Put/Call Ratio (5 MA and 10 MA) on the daily chart to see if traders are too bearish (MAs > 0.8) or too bullish (MAs < 0.5).

(MA = Moving Average) 

– Market internals to see if the market is overbought or oversold

I look at the TRIN (5 MA and 10 MA) on the daily chart – overbought (MAs < 0.8) or oversold (MAs > 1.2).

I look at the McClellan Oscillator – the market is overbought if it rises above +70 and oversold if drops below -70. A buy signal is generated if it falls into the oversold area (-70 to -100) and then shows up – a sell signal is generated if it rises into the overbought area (+70 to +100) and then turns down. If it passes the -100/+100 levels then it could be an indication of continuation of the actual trend.

– Market and Industries

I like to buy stocks from industries in a powerful uptrend and short stocks from industries in a downtrend. I also consider the direction of the industry for the day (positive or negative).

Putting it all together

This article is not about teaching you how to formulate a footing but hopefully it shows you that there are many unusual tools that can be employed to improve your odds. It needs time to find a compounding that fits your personality. It takes time to find what works for you

How To Find Momentum Stocks

With 1,000’s of securities listed in the stock exchange for trading, how does a trader approach his stock selection? I am not refering to the fundamental approach where the trader studies the fundamentals of the business, and research the functioning results of the company, check its price/earnings ratios or check its balance sheets and turnover and its dividend yield.

As a whole among those people successful traders who really make a profit off by trading professionally in the stock exchanges, their preferred method seems to be the technical analysis approach.

By this, they begin using charting, and technical indicators put on to the securities. They will devise filters or explorations, to scan for securities that meet some selected indicators to show that the securities are beginning to move or have started to move.

Professional traders who trade for a living have an array of trading tools to aid them, but one of the most commonplace tools they begin using to good effect is the signal called On Balance Volume.

Popularized by Joseph Granville, the On Balance Volume or OBV in short is in reality a cumulative volume, where the underlying principle is that similar OBV need to support equivalent price. By utilizing this signal, short term traders will be in a position to identify when there is a difference in this setting, or where OBV has outbreak already but price has still lagged behind, producing the circumstance where an impending price jump is expected.

But how large is the imminent move? Whenever there is indeed an OBV outbreak, and by inference the price need to follow in the next few trading sessions, one will also need to make sure that the impending jump is of sufficient size to warrant a good margin of profit attractive enough for him to buy.

Included in this trading signal, traders add one more trading stipulation to nail those people giant changes. We know in Elliot wave theory that the 3 and 5 waves of any stock are the impulsive and strong waves up.

I have observed much success from traders who scan their securities with an OBV outbreak and are in their impulsive 3 and 5th waves which are their longest and strongest waves.

Armed with this understanding, when a stock is found to have just undergone an OBV Outbreak upwards and is moving within either its 3rd or 5th wave, you have an excellent candidate that will in all probability to surge in price, and let you reap a handsome profit within a short trading period.

 

Stock Trading – Successful Exit Strategies:

When planning your exit strategy, which should be studied before you enter the trade,there are three components that determine your exit plan

 

1. Designate the time frame of your trade, you cannot start a trade as a scalp change to a day trade or swing trade in the middle.

 

2. determine your risk reward analysis and risk management strategy

a risk-reward ratio of at least 1;2 minimum is acceptable but should increase if the trade is held for longer periods of time like swing trades.

 

3. take profits gradually to lock in profits

when trading to the long side do not wait for the stock to show weakness to take profits, sell while the buying pressure is pushing the price higher.

 

4. have s stop loss feature

A stop-loss feature will let you exit your position as soon as the direction of the markets turns against you, minimizing the amount of losses.

 

CFD Trading: An Introduction

Here’s a really simple yet useful tutorial on CFD trading that will get you up and running very quick if you are novices at CFD trading.

By the time you complete this article, you will know how CFDs work, what makes them highly profitable, and understand the expenses involved in CFD trading.

CFD signifies Contracts For Difference, which is a derivative product, where you profit from modifications in the costs of stocks and shares.

To Illustrate, if you purchase a CFD on a standard that’s $7.00 and the price rises to $7.50, then you make the most of that change in price. So if you bought 1000 CFDs, of course your profit is $500. That is, the value of the CFDs mirror the underlying share prices, and you can profit on this movement.

The factors why CFDs are a very popular trading product, and understandably so, are:

1. CFDs are traded on leverage, and this leverage is typically 10 to 1, with some CFD market makers providing 20 to 1 leverage. This signifies that a trader with a small float can make decent profits from trading the stock exchange by using CFDs. As an example, you may have a stock trading system that produces a 30% return every year. On a $5000 float, this is $1500 profit in 12 months. With CFDs, owing to the leverage, the identical system are now able to produce a 300% return, which is $15 000 profit in twelve months.

2. You could just as easily short sell CFDs as well, and consequently profit from falling markets. This greatly increases the profitability of a trading system because trading opportunities increase dramatically, and the fact that you are able to profit from both bull and bear markets.

3. The expenses in CFD trading are almost low when equated with stocks. This is specially so, since for a corresponding and often smaller cost per trade, you can gain 10 or greater times the results from a trade as a result of the leverage available. The two main expenses in CFD trading are interest and leverage. We’ll come to these in a short time.

4. You can set automatic stop losses. This implies that it will take you less time to buy, remove the emotion from exiting a trade when you should, and permit you to exit as the stop is hit, not a day later. You as a consequence prevent the slippage as a result of leaving a trade later than when you intended.

5. You can place all your orders in the evenings. With many CFD providers, you can place orders to penetrate a situation the night before. For individuals who are working, this is a great advantage because they can achieve all their trading (place their orders to penetrate and their stop losses) in the evenings, and not have to be at the display screen or call their broker during the day. Also, if they have any stop losses that need adjusting, they can get done so in the evenings as well. Their trading routine with a mechanical system can be about 10-15 minutes a day.

So these are the benefits of CFDs that have made trading accessible to so lots of people because they supply large returns for a modest float, and can also be traded once a day as well.

Now, we mentioned that there are two main expenses in CFD trading. Let’s have a closer look now at each of them:

1. Commission. With some CFD providers, there is in fact no commission. This also greatly increases the profitability of your CFD trading systems, as well as the fact that you can benefit hugely from the leverage. With other CFD providers, there might be a commission of say 0.15% of the trade size or $15, whichever is greater, each way. These charges are similar or lower than the commission associated with stock trading, specially when you think about that the multiplied profits that the leverage gives you.

2. With CFDs, there’s interest charged for long positions that are held overnight. For short positions, the interest is paid to you. The amount of concern charged is commonly a reference rate plus approximately 2%, and the interest paid is normally the same reference rate minus approximately 2%. And the reference rate is typically a leading bank’s overnight monthly interest.

To Illustrate, the interest charged for overnight held long positions may be 7.5% or 0.075 once a year. To calculate how much this is for a trade, we need to make sure it is “pro rata”. That is, we’d need to divide the 0.075 by 365, multiply it buy the number of days in trade, then multiply it by the trade size. As an example, for a trade size of $10 000, held for 14 days, the interest cost is about $28. Not a huge cost. For a short trade, the interest is paid to you, so will offset the cost instead of give to it.

So there you have it.

You now understand the advantages of trading CFDs and why they’re a trading instrument that permits people with a modest float to make very decent returns, in addition to understand the costs concerned with trading CFDs.

 

Stock Market: How To Increase Your Profits In Any Trade

In trading the stock exchange, no-one can predict the market with certainty. The price of stocks can go down, along with up. What is required is an exit strategy that will enable you to survive the bad stocks, and make a good profit on the good stocks.

The method that I have found to work the best is a trailing stop loss. For those who don’t know what a stop loss is, I shall explain briefly. A stop loss is an order for your stock broker to trade your shares if the cost dips to the level that you have specified.

The’re two ways of doing this. The easiest way is to prefer how much you are willing to lose as a percentage of your investment. A good rule is not to go under 10%. Work out the amount of the stock at this level and set that as your stop loss. As the price of the stock increases, keep moving the level of the stop up to keep the percentage gap the same. Some dealers supply a trailing stop loss service, where you let them know what percentage to set the loss at and they do it for you.

The second technique is slightly more involved, and comes from “Nicolas Darvas” in his book “How I made $2,000,000 in the Stock Market”. The markets tend to flow little by little. a stock on the rise will reach a peak, and then dip back off. It may do this several times at each stage. The idea is to follow the chart of the stock and see where the dips are the lowest, and set the stop loss just underneath them. A second part which Nicolas propounds is that when the stock breaks out of the sideways trend, to buy more of the stock, and when the stock starts going sideways again to move the stop loss up again to just under the lowest part of the dip.

Using the stop loss as an exit strategy, only works if you stick to it, and not lower it, thinking that the amount will go up again in a few days. In a few cases you will be right, but what usually happens is the cost keeps moving against you, and you loose even more money. As a secondary to this, the money still tied up in the first stock that is falling can’t be used for another trade.

Finally, a word of caution about applying the stop loss system to safeguard your capital. There are occasions when the markets undergoes a fast fall in price, the’re regulations about how far a price can fall in one-day. If it falls this maximum distance, it can bypass your stop loss, and you may be unable to trade. Although these situations are rare, it is advisable that you be aware of them. So that they are not a shock when they do happen to you.

 

Stock Trading: Buy To Cover Orders

If you have always had an urge to know more to do with this topic, then get ready because we have all the info you can manage.

Within the buy to cover orders, the’re four options in which to place against your stock purchases. When you buy to cover on a regular order, you are in agreement that you will obtain the stock at the most recent share price; yet, simply because there is a lag between the time you approve to buy the stock and the actual transaction, a price difference may occur. You could finish up paying more than anticipated for each stock, or a considerably lesser amount per stock, which is what you are looking forward to. You can also buy to cover limit orders, which guarantees that you pay no greater than the set limit price. Nonetheless, if stock values hold above the limit buy price, this kind of buy to cover order will never be executed.

This sort of transaction is for the most part used by investors who would like to enter a particular market. You may also want to buy, to cover stop orders in which case the stop orders become simple stock orders as soon as the value is at or above the stop price. This kind of order is used to get you out of an unfavourable stock so that you will not have lost any profits. And, finally, you may want to buy to cover a set limit order that converts to limit order only when the share value is at or over the stop price. You have to know every one of the buy to cover orders so that you are able to make educated choices about your investments.

From one determination period to the next in the stock market action, the markets can fluctuate up and down incessant, which means that prices of shares are at a frequent changing point. You may remember obtaining a certain stock that is at $5 per share, and in the next day, the value per share has risen to $15 per share.

This is where the betting of the stock market comes into play. By erudition the benefits of the buy to cover orders, you can multiply your odds of earning money on the stock market as opposed to of falling in value. The obvious benefit to the total buy to cover options is that they’re in place to get you to money, when executed the right way. As an example, you wouldn’t perform a stop loss on a standard that has steadily increased over a 5 month period. If you did this, you would force yourself to squander money to buy the stock in order to cover your mistake. You opt to buy 175 shares of stocks from Albertson’s, a market chain, at $75 each, for a complete investment of $13,125. Over a four month period, you discover that the stocks have gained in profit, and you would love to do something to guarantee that you keep this earned profit. Not knowing better, you put a stop loss of $45 per stock without talking to with your stockbroker. From that position forward, if your stock decreases to $45 per stock, you have to trade it, and any earlier earned profit is null and void. The only chance you have in getting back that profit is if you are swift enough in the incessant stock exchange game, to buy the Albertson’s stocks before somebody else does. Nonetheless, even though you are able to do this, you have still suffered a great loss monetarily.

Educate yourself in the stock exchange action.

As with any game, there is some form of jeopardy involved, all the same, when you play the stock exchange game, you can avert a great deal of distress by just taking the time to obtain information about every type of orders you are able to put on your stocks. If you require help teaching yourself about the kinds of orders to put on your stocks, you should speak to your stockbroker in order to take professional advice before taking matters into your individual hands, inevitably forcing yourself to suffer some of your invested money’s profit. Thus, it is absurd to invest your hard earned money into any program before you understand all the data necessary to make a well-informed, educated judgment.

If you could take the main ideas from this article and put them into a list, you would a great overview of what we have found out.

 

Adding and Subtracting From a Stock Position

Many traders will practice adding to a profitable position along with subtracting from a winning position. These strategies can be very helpful to let your winners grow.Many traders will practice taking away from their position as soon as a given level is reached. For instance say you would like to buy 100 shares of XYZ stock at $48. You have a target of $53, but if the stock gets to $50 you would take half of the position off.Why would you take profits early? Essentially to guarantee any profits you already possess. This way although the stock drags back and hits your stop you would still exit the trade on a positive note even though it turned around on you at the finish.The drawback to doing this is you are missing out on possible profits that you could get from holding onto the entire position.The other way you can adjust your position is by adding to it. As a regular price increases it can be a very wise decision to include to the position on every occasion the stock drags back. This way you can put more and more money onto the positions that are prosperous at that time, simultaneously keeping your stop on it or even pushing it up.Where you enter, trouble is when you attempt to add to a losing position. Many new traders who try to buy the stocks using Mental Stops, or imaginary stops, will occasionally find themselves in a situation where they are way behind in a position.They could have purchased 100 shares when the stock was at $50 and now the stock is at $35. Then they get the smart idea of buying another 100 shares at $35 to lower their breakeven point, Big Mistake. A stock may take years to decades to recover such a steep fall, if it recovers at all.In any case you should not maintain in a stock position while in a downtrend let alone add to it.

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