Holding cash when trading, those are the words the majority of traders fear. No one wants to do it, but it can actually be a benefit to you.
Two of the biggest stock market geniuses of all time, Warren Buffet and Jessie Livermore have always gone through long periods of holding cash. They ... Views: 638
Drawing a trend line is just like connecting the dots. By drawing a line at the highs of a stock you get a resistance level. By drawing a line at the lows of a stock you get a support level.
The theory is that stocks will bounce up from support and bounce down from resistance. Also when a ... Views: 710
I thought it might be fun to talk about how the stock market was born. Many people do not realize the importance of the stock market.
The stock market was born out of necessity. It helps companies grow as well as helps the average citizen fight against inflation.
Imagine you are a ... Views: 823
History has proven time and time again that buying long term stocks when the markets are down has been a wonderful strategy. In fact the best times to buy have always been close to the market bottoms.
That is because when the markets crash they tend to take all stocks with them. This ... Views: 589
Setting up a trading hour is easy and is a necessity. You do not want to be involved in the market 24/7 so setting up an hour where you review your trades is a must.
There are a number of reasons why having a trading hour is a must.
1. Your body gets used to it. If you are always reviewing ... Views: 692
Price is King when it comes to the market. Sure there are many different ways to evaluate a company and the different methods all have their advantages but the price patterns of a company still gives you the most accurate buy and sell signals.
More than any oscillator, any fundamental ratio, or ... Views: 820
Being positive is always a good thing in any aspect of life. In the trading world it is almost impossible to make money without having positive thinking.
Without a positive attitude it becomes harder to pull the trigger. You are unable to place the trade because you are unsure if it is going ... Views: 572
Keeping both long and short term trades can benefit you in many ways. It can give you all the benefits of short term trading with some of the safety from long term trading.
Many experienced traders will keep both long term investments and short term trades out at the same time. This allows ... Views: 577
There is no such thing as the magical trading system. All trading systems have their strengths and weaknesses.
Many Gurus’ out there will talk about a secret trading system that cannot fail. It supposable is the insider trading system that only a few people know about, and the professionals ... Views: 579
Successful trading systems provide the best way to make money in the stock market. In order for a trading system to work it needs a few things.
The first thing you need in a trading system is specific buy signals, when X happens you do Y. This seems pretty obvious and most new traders stop ... Views: 664
When trading, especially short term trading, there are a number of things that are important to look at. Each individual chart should have these things before you decide to trade them.
1. Do they follow your trading rules? You should have a set trading system in place every time you place a ... Views: 626
Leadership stocks and lagging stocks are two things you can look at when trading the market. These are stocks that are performing above average and below average.
A leadership stock is a stock that has done better then the market average for a set period of time. This period depends on your ... Views: 1066
In this market everyone is looking for the market turning point. The point where investors come in and say, stocks have been crushed enough, everything is on sale, it is time to buy. But how can you tell when that time has come? Is there some magical device that will give you the exact bottom ... Views: 807
With all the different ways to view stock charts today it can get kind of confusing. Figuring out whether to use a line chart, bar chart, or candlestick chart is the first step.
Let’s compare them. Bar charts and candlesticks give you much more information than the simple line chart. They ... Views: 1329
It is very tempting to move your stops down during times of panic. It becomes even harder when you believe the market is overreacting to bad news. But holding your ground is absolutely critical when trading.
When you buy a stock you need to have a stop level. This is a level that is the ... Views: 686
Exiting short term trades at the best possible time is always the goal if you are trying to catch the little up and downs of a stock. It is something everyone needs to work at and can greatly improve your profits.
The first step to always exiting your trades at the best possible time is to ... Views: 700
No matter how many times you have heard it, it is worth hearing it again. You must trade with the trend and not against it if you ever plan on being successful in the stock market.
It can be difficult to trade in the same direction as the market especially when prices have fallen so much. ... Views: 647
Everyone always searches for the infamous holy grail of stock trading. The magical trading system that will make them rich and allow them to never lose money again.
So does it exist? Is there a trading system or oscillator that will allow them to never lose money again? No, there is no ... Views: 791
Reacting to the market is a lesson every trader should learn. It is much simpler and much more profitable then to just react to the market then to try to understand it.
Too many traders try to explain a big move. For instance most people will say that stocks fell because of the unemployment ... Views: 611
Capital preservation probably the most important things you need to consider when you are trading in the stock market. You may have a system that works well, but if you lost all your money on 1 trade you will not be able to make money with your system. It is one of the most overlooked aspects ... Views: 562
Buying protective puts can be a very useful strategy when you are trading in the stock market. When the markets start to get volatile many traders will buy puts to protect themselves from the downside. It is actually a very simple strategy to learn and use.
If you want to understand how ... Views: 599
The best way to make a lot of money in the stock market is to keep it simple when trading. To be a successful trader you do not need to know everything about a company or anything if you want to be real simple. Let us take a look at how Tommy learned that the hard way.
Tommy is an ... Views: 626
Buying on margin can be a very powerful way to leverage your money in the stock market. Here is a question. Say you wanted to make $100 in the stock market. Would it be easier to make $100 from $500 or $1000? $1000 of course.
If you make $100 from $500 that would be a 20% increase. ... Views: 825
Buying leaps can be a very effective long term way to leverage your money in the stock market. Buying a leap can produce greater gains than just buying the stock and holing it.
Let us look at an example of how it works. We find that stock XYZ is currently trading at $45. It is a strong ... Views: 596
Option selling can be one of the most consistent ways to pull money out of the stock market. It can bring cash flow every. I’ll show you how powerful option selling can be.
First you have to understand what an option is. When you buy a put option you buy the right to sell a given stock, ... Views: 699
There are 5 bullish strategies that can make you a lot of money in the stock market. These strategies all have the power to turn a small portfolio of only a few thousand into a large portfolio consisting of hundreds of thousands to millions in time. If you are already making money in the stock ... Views: 757
There are 6 critical mistakes that all traders in the stock market make. These mistakes are made by amateurs and experienced traders alike. They can be devastating and make one lose all of their money in the stock market. These are mistakes you definitely want to avoid. That is why I have put ... Views: 690