Want to know more about the driving force of the markets
Everyone would probably agree that the “fundamentals” – or at least traders’ perception of them – are ultimately the driving force underlying market prices.
Much of today’s market analysis is based on prices, but it is the fundamentals that produce the prices. The challenge for traders is how to best learn about and study fundamentals in markets.
Unfortunately, despite their significance, there is no quick and easy way to study market fundamentals, and you can’t find resources that focus only on fundamentals that impact all markets.
The most obvious fundamental factors are supply and demand for a particular market, especially the physical commodities.
But lots of macro fundamental factors effect supply/demand and impact commodity and financial futures prices such as:
** Weather,
** World politics,
** Consumer attitudes,
** Disruptions in distribution channels,
** Interest rates,
** Currency values,
** Natural disasters and much more.
The number of fundamentals is enormous, adding to the difficulty of trying to interpret what they mean even when you do have the most recent reliable data.
Every market is affected by fundamentals in related markets, putting an emphasis on inter market analysis, but every market also has its own set of fundamentals.
For most traders, perhaps the most useful advice on fundamentals is to know when the key known events – reports, news releases, elections, etc. – are going to occur.
You can’t predict the surprises – tsunamis, assassinations, etc. – but for those events that are scheduled on a calendar, you should be aware of the time when they could cause a price ripple, even though you rely on technical analysis for your trading decisions.
It would be a bonus to know something about the history behind the event and have an idea about what traders are anticipating on an upcoming announcement.
This tutorial provides an overview of fundamentals, but a trader involved in a specific market should find other sources to study the fundamentals for that market in more detail.
Want to know more with this Financial Calender.
· http://www.dailyfx.com/calendar/Calendar.html
· http://moneycentral.msn.com/investor/calendar/econ/current.asp
· http://biz.yahoo.com/c/e.html
· http://www.economic-indicators.com/EconomicNews.html
· http://cbs.marketwatch.com/tools/marketsummary/calendars/economic.asp?siteid=mktw
Next issue:
Every market is affected by fundamentals in related markets.
If you have any other questions, please contact
support@online-trading-centre.com
Sunday, 3 June, 2007
Online Trading (13)
Understand the human nature
All through time, people have basically acted and reacted the same way in the market as a result of:
** Greed
** Fear
** Ignorance
** Hope
That is why technical formations and patterns recur on a constant basis.
They are recurring patterns that appear over and over, with slight variations.
This is because markets are driven by humans--and human nature never changes.
Jesse Livermore is the greatest stock market trader of the 20 century.
His trading success came not because of any "inside" information or huge store of knowledge he had about each and every stock or commodities he traded.
Livermore's trading success was derived from his understanding of human behavior.
He realized early on the markets and stocks can and do change--but people and their behaviors do not.
There in lay his formula for trading success. That formula for trading success has not changed since Livermore's hey day in the stock and commodities markets almost a century ago.
Livermore coined what he called "Pivotal Points" in a market or a stock.
Basically, they were:
a) Price level at which the stock or market reversed
its course --in other words, previous major tops
and bottom.
b) Psychological price levels. He would buy a stock or
commodity that saw a price break out above the
Pivotal Point and sell a stock or commodity that
saw a price breakout below a Pivotal Point.
Simple strategies but empowered him to be the best Trader in the 20 century.
Tips from the top 10% of traders are:
a) Successful traders always follow the line of
less resistance. Follow the trend.
b) Don't argue with the markets. Markets never wrong.
Opinions often are.
c) When you make a trade, have a clear target where
you will sell if the market moves again you.
d) Losses are twice as expensive to make up. Never
Sustain a loss of more than 10% of your capital
e) Don't take action until the market,itself,confirm
your trading strategies
f) Work with the art of trading.This is vocation,where
many are called "trader" but few are singled out
For success.
g) The big money is made by sitting and waiting--not
the thinking.Wait until all the factors are in your favor
before you make a trade.
h) Few people succeed in the market because they have
no patience.Those speculators who feel they must
trade day in and day out,are laying the foundation
for your venture.You benefit from their mistakes.
Chart patterns help you to indentify your opportunity to trade.
Chart patterns are:
** Trend line
** Double top and bottom
** Resistance and support
** Pivotal Point
** The cycle of a main trend
Many more are available to you after you purchase the program.
This may be:
How you may trade…
** With 1,2,3 formation
** High probalility Spike
** Open Gap
** With multiple frames
** With the failure of a pattern
** With the M&W formation
** With the head and shoulder formation
** With the candle Stick charting.
Also, strategies are provided to calculate:
** The entry and exit point with Fibonacci formula
** The target point with the risk calculator in order
to increase the rate of success.
Join us Now.
You will not regret.
Not only you have a chance to trade the markets and make a fortune.
Also,you can build an online business even through you don't how to invest or trade the financial markets.
Click here.
Next issue:
More about the driving force of the markets
If you have any other questions, please contact
support@online-trading-centre.com
All through time, people have basically acted and reacted the same way in the market as a result of:
** Greed
** Fear
** Ignorance
** Hope
That is why technical formations and patterns recur on a constant basis.
They are recurring patterns that appear over and over, with slight variations.
This is because markets are driven by humans--and human nature never changes.
Jesse Livermore is the greatest stock market trader of the 20 century.
His trading success came not because of any "inside" information or huge store of knowledge he had about each and every stock or commodities he traded.
Livermore's trading success was derived from his understanding of human behavior.
He realized early on the markets and stocks can and do change--but people and their behaviors do not.
There in lay his formula for trading success. That formula for trading success has not changed since Livermore's hey day in the stock and commodities markets almost a century ago.
Livermore coined what he called "Pivotal Points" in a market or a stock.
Basically, they were:
a) Price level at which the stock or market reversed
its course --in other words, previous major tops
and bottom.
b) Psychological price levels. He would buy a stock or
commodity that saw a price break out above the
Pivotal Point and sell a stock or commodity that
saw a price breakout below a Pivotal Point.
Simple strategies but empowered him to be the best Trader in the 20 century.
Tips from the top 10% of traders are:
a) Successful traders always follow the line of
less resistance. Follow the trend.
b) Don't argue with the markets. Markets never wrong.
Opinions often are.
c) When you make a trade, have a clear target where
you will sell if the market moves again you.
d) Losses are twice as expensive to make up. Never
Sustain a loss of more than 10% of your capital
e) Don't take action until the market,itself,confirm
your trading strategies
f) Work with the art of trading.This is vocation,where
many are called "trader" but few are singled out
For success.
g) The big money is made by sitting and waiting--not
the thinking.Wait until all the factors are in your favor
before you make a trade.
h) Few people succeed in the market because they have
no patience.Those speculators who feel they must
trade day in and day out,are laying the foundation
for your venture.You benefit from their mistakes.
Chart patterns help you to indentify your opportunity to trade.
Chart patterns are:
** Trend line
** Double top and bottom
** Resistance and support
** Pivotal Point
** The cycle of a main trend
Many more are available to you after you purchase the program.
This may be:
How you may trade…
** With 1,2,3 formation
** High probalility Spike
** Open Gap
** With multiple frames
** With the failure of a pattern
** With the M&W formation
** With the head and shoulder formation
** With the candle Stick charting.
Also, strategies are provided to calculate:
** The entry and exit point with Fibonacci formula
** The target point with the risk calculator in order
to increase the rate of success.
Join us Now.
You will not regret.
Not only you have a chance to trade the markets and make a fortune.
Also,you can build an online business even through you don't how to invest or trade the financial markets.
Click here.
Next issue:
More about the driving force of the markets
If you have any other questions, please contact
support@online-trading-centre.com
Saturday, 26 May, 2007
Online Trading (12)
Are you a trader yet?
As a trader you will probably fall into two main categories,
traders who like to trade the breakout or traders who like to join the trend when it once established.
There are also congestion traders, reversal type traders and mechanical signal traders but for the vast majority of traders you are going to fall into one of the two categories.
Trend Trader
If you are a trend trader, you like to define a trend and then find a way in.
This may be with the aid of Fibonacci retracement levels, moving averages, or one of the other many indicators available today.
Your goal is to enter the trend as early as possible with the least amount of risk.
Breakout Trader
Breakout traders like to enter the market on the breakout of a previously identified range.
This may be support/resistance areas, rectangles, triangles or one of the many other chart patterns. The secret to this type of trading is to determine a valid break.
Who do you like to be?
Learning to be the top 10% of traders, you have to know the art of trading.
Recognize the trading opportunity.
Follow your trading plan.
Act on it and be a consistent winner.
Next issue:
Understand why technical formations work.
If you have any other questions, please contact
support@online-trading-centre.com
As a trader you will probably fall into two main categories,
traders who like to trade the breakout or traders who like to join the trend when it once established.
There are also congestion traders, reversal type traders and mechanical signal traders but for the vast majority of traders you are going to fall into one of the two categories.
Trend Trader
If you are a trend trader, you like to define a trend and then find a way in.
This may be with the aid of Fibonacci retracement levels, moving averages, or one of the other many indicators available today.
Your goal is to enter the trend as early as possible with the least amount of risk.
Breakout Trader
Breakout traders like to enter the market on the breakout of a previously identified range.
This may be support/resistance areas, rectangles, triangles or one of the many other chart patterns. The secret to this type of trading is to determine a valid break.
Who do you like to be?
Learning to be the top 10% of traders, you have to know the art of trading.
Recognize the trading opportunity.
Follow your trading plan.
Act on it and be a consistent winner.
Next issue:
Understand why technical formations work.
If you have any other questions, please contact
support@online-trading-centre.com
Wednesday, 23 May, 2007
Online Trading (11)
Thanks to computer and Internet
Now, you can do a simple search on Goggle, Yahoo or MSN and find out the super cycle of trend and the best economic sector on your finger tip.
Want to find a winner in your investment.
Tips are:
** Are you investing in the leading industry?
The stock markets are changing all the time.
Brunswick stock was a prominent performer in 1960 and 1961.
Oil and service stocks topped in 1980 and 1986 and it is the same
for the computer hardware industry.
Computer service stocks topped and busted after year 2000.
Oil and service stocks come back after year 2003.
Most of the raw material mining stocks increase their value
more than 100%. Some of them even are more than 1000%
after year2003.
Communication on wireless industry is quietly coming in
after year 2002.
** Are you invested in the leader or the laggard of the
leading industry?
** Are you invested in industries of the future or past?
Let's take a look at the value of GM, Ford, Dell, Rimm,
Goggle and Apple computer,CCO.To,G.To., ABX.To,Ble.To,
Hbm.To, and Yri.To.
Have you spent sometimes to study why some of stocks can go
up five to ten times
and some of them can drop 100% and even 500%?
More tips you can pick up winners in the leading
industry.
They are:
** Earning power and earning growth are the most measures
of a firm’s success. Most successful money maker’s use
25% 0r 30% as their minimal earning parameter. Look
for accelerating quarterly earning growth for a stock.
** Price patterns taken from successful stocks in the past
should definitely be used as models for future
selection of successful stocks.
Search for price patterns of stocks with such as:
i) Cup with a handle
ii) Double top and bottom
iii) Head and shoulder
iv) Breakout from a Flat Base
v) Base on top of a base
** Find pivot point and watch "volume change"
When a stock charges through an upside buy point,the
day's volume should increase at least 50%
above normal
** Look for volume dry up near lows of a price patterns.
Huge volume weeks with price advancing, followed
by extreme volume dry ups in other week is very
constructive.
Buying right solves half of your selling problem.
Here a few tips when you should sell:
** Cut you losses if your trade lose more than 10%
** Most stocks had topped when the general market
started into a decline of 10% or more
** Take 20% profits when you have them except with the
most powerful of all stock
** When the earning of a stock keep falling in two
consecutive quarter with no growth and
norrower margin
** Formed certain types of recognizable chart price
patterns
prior or after to going into new high ground
** Beware of new highs on decreased or poor volume
** If a stock that has been advancing rapidly, is extended
from its base and trade on an open gap up in price
** Sell if a stock's price breaks badly for several days
and does not rally.
Next issue:
Are you a trader yet?
If you have any other questions, please contact
support@online-trading-centre.com
Now, you can do a simple search on Goggle, Yahoo or MSN and find out the super cycle of trend and the best economic sector on your finger tip.
Want to find a winner in your investment.
Tips are:
** Are you investing in the leading industry?
The stock markets are changing all the time.
Brunswick stock was a prominent performer in 1960 and 1961.
Oil and service stocks topped in 1980 and 1986 and it is the same
for the computer hardware industry.
Computer service stocks topped and busted after year 2000.
Oil and service stocks come back after year 2003.
Most of the raw material mining stocks increase their value
more than 100%. Some of them even are more than 1000%
after year2003.
Communication on wireless industry is quietly coming in
after year 2002.
** Are you invested in the leader or the laggard of the
leading industry?
** Are you invested in industries of the future or past?
Let's take a look at the value of GM, Ford, Dell, Rimm,
Goggle and Apple computer,CCO.To,G.To., ABX.To,Ble.To,
Hbm.To, and Yri.To.
Have you spent sometimes to study why some of stocks can go
up five to ten times
and some of them can drop 100% and even 500%?
More tips you can pick up winners in the leading
industry.
They are:
** Earning power and earning growth are the most measures
of a firm’s success. Most successful money maker’s use
25% 0r 30% as their minimal earning parameter. Look
for accelerating quarterly earning growth for a stock.
** Price patterns taken from successful stocks in the past
should definitely be used as models for future
selection of successful stocks.
Search for price patterns of stocks with such as:
i) Cup with a handle
ii) Double top and bottom
iii) Head and shoulder
iv) Breakout from a Flat Base
v) Base on top of a base
** Find pivot point and watch "volume change"
When a stock charges through an upside buy point,the
day's volume should increase at least 50%
above normal
** Look for volume dry up near lows of a price patterns.
Huge volume weeks with price advancing, followed
by extreme volume dry ups in other week is very
constructive.
Buying right solves half of your selling problem.
Here a few tips when you should sell:
** Cut you losses if your trade lose more than 10%
** Most stocks had topped when the general market
started into a decline of 10% or more
** Take 20% profits when you have them except with the
most powerful of all stock
** When the earning of a stock keep falling in two
consecutive quarter with no growth and
norrower margin
** Formed certain types of recognizable chart price
patterns
prior or after to going into new high ground
** Beware of new highs on decreased or poor volume
** If a stock that has been advancing rapidly, is extended
from its base and trade on an open gap up in price
** Sell if a stock's price breaks badly for several days
and does not rally.
Next issue:
Are you a trader yet?
If you have any other questions, please contact
support@online-trading-centre.com
Online Trading (10)
Master yourself to be a trader
As humans you have a natural tendency to try and influence our surroundings and events we take part in.
This is one reason you, as a species, have succeeded but it is also one of the fundamental flaws you have when trying to achieve success as a traders.
When it comes to trading, most of what you have learnt to date and the beliefs that you have formed about success are inappropriate.
When you are trading you need to be:
· Quick to cut a loss · Flexible to the ever-changing flow of information · Take the lead from the market rather than try to control it · Comfortable with uncertainty and risk
What are you taught about success?
· Not to be a quitter · To be decisive, not fickle · To take charge/control · To dictate · To stamp out uncertainty
It is not difficult to see that what you believe about success in all other areas of life will work against you as traders. Lets look at some particular behaviors in trading.
Not cutting losses, what is the likely thinking that would result in this behavior?
· Losing is bad (If you lose then you are a loser) · Being wrong is bad (you all learn this at school!) · To take charge/control · You want to be right all the time i.e. perfectionist · And snatching profits:
Fear of losing what you have (losing is bad again). Need to feel good (You are not good enough).
Ultimately you'll struggle as traders because you want and need to feel good about ourselves and you are looking to the market for this affirmation.
You are reluctant to take a loss because you think a loss is bad and that it underlines our fear that you are bad (a loser). You snatch profits because you are desperate for information that supports the idea that you are good.
If you have an unshakeable belief that you are good, then you would not look to the market for approval; you only look for something you think you don't have.
To resolve this problem you need to simultaneously work on and build the belief that you are already perfect and you need to shift our neediness away from the market and seek affirmation from another source.
As traders......
You have to realize you have no control over the market and if you accept that then you have to accept that you can not influence the direction of the market.
The problem of course is you have a tendency to try and succeed and when inevitable losses come; it is easy to let those losses affect you emotionally.
Becoming euphoric when you hit a winning streak is almost as detrimental as becoming depressed when you have a string of losses.
You as traders have to try and achieve the state of impartiality.
You have to accept that you will have losses as readily as you will have wins.
Reaching the stage where you can comfortably accept loss in the knowledge that your method of trading will produce profits in the longer term is the state you have to aspire to.
CFA's who managed funds, the most consistently profitable were the one with the best risk management systems.
To trade successfully you have to take a long look at yourself.
Ask and answer the following questions:
** How much equity do you need to start?
** How much should you risk on any one trade?
** Are you undercapitalized?
** Do you have a risk management strategy in your
trading system?
Next issue:
How to pick a winner
If you have any other questions, please contact
support@online-trading-centre.com
As humans you have a natural tendency to try and influence our surroundings and events we take part in.
This is one reason you, as a species, have succeeded but it is also one of the fundamental flaws you have when trying to achieve success as a traders.
When it comes to trading, most of what you have learnt to date and the beliefs that you have formed about success are inappropriate.
When you are trading you need to be:
· Quick to cut a loss · Flexible to the ever-changing flow of information · Take the lead from the market rather than try to control it · Comfortable with uncertainty and risk
What are you taught about success?
· Not to be a quitter · To be decisive, not fickle · To take charge/control · To dictate · To stamp out uncertainty
It is not difficult to see that what you believe about success in all other areas of life will work against you as traders. Lets look at some particular behaviors in trading.
Not cutting losses, what is the likely thinking that would result in this behavior?
· Losing is bad (If you lose then you are a loser) · Being wrong is bad (you all learn this at school!) · To take charge/control · You want to be right all the time i.e. perfectionist · And snatching profits:
Fear of losing what you have (losing is bad again). Need to feel good (You are not good enough).
Ultimately you'll struggle as traders because you want and need to feel good about ourselves and you are looking to the market for this affirmation.
You are reluctant to take a loss because you think a loss is bad and that it underlines our fear that you are bad (a loser). You snatch profits because you are desperate for information that supports the idea that you are good.
If you have an unshakeable belief that you are good, then you would not look to the market for approval; you only look for something you think you don't have.
To resolve this problem you need to simultaneously work on and build the belief that you are already perfect and you need to shift our neediness away from the market and seek affirmation from another source.
As traders......
You have to realize you have no control over the market and if you accept that then you have to accept that you can not influence the direction of the market.
The problem of course is you have a tendency to try and succeed and when inevitable losses come; it is easy to let those losses affect you emotionally.
Becoming euphoric when you hit a winning streak is almost as detrimental as becoming depressed when you have a string of losses.
You as traders have to try and achieve the state of impartiality.
You have to accept that you will have losses as readily as you will have wins.
Reaching the stage where you can comfortably accept loss in the knowledge that your method of trading will produce profits in the longer term is the state you have to aspire to.
CFA's who managed funds, the most consistently profitable were the one with the best risk management systems.
To trade successfully you have to take a long look at yourself.
Ask and answer the following questions:
** How much equity do you need to start?
** How much should you risk on any one trade?
** Are you undercapitalized?
** Do you have a risk management strategy in your
trading system?
Next issue:
How to pick a winner
If you have any other questions, please contact
support@online-trading-centre.com
Friday, 18 May, 2007
Online Trading (9)
Build a trading plan with these fundamentals
They are:
Define specific risk and profit objectives before trading.
Maintain the necessary discipline to follow that plan through both good and bad times. Successful traders will agree that discipline contributed more to their success than their trading philosophy itself. Remember that the key to any plan is how well it holds over time.
There is no trading system that is 100% accurate.
Your goal, as a trader, is to use the tools available and try to develop an edge. Base your trades on sound fundamental and technical reasoning. If you can develop an edge, however small, over time you will be successful.
A trading system does not have to be difficult, time consuming, complicated and stressful in order to be profitable.
In trading systems, as in many other things in life, simple can be better.
Money management is the most important part of your trading plan
An investing edge is only part of the equation.
Limit your loss by:
** Percentage of the trade
** Support or resistance point
** A calculated point of retracement.
A trader should establish a "surplus account"
The goal is to retain the "surplus account" for times of emergency or panic after you have been profitable for a few times.
Follow these rules that can easily increase your return by 100%
A trader must be able to admit they have made a mistake. Do not become emotionally or financially committed to a losing trade. Avoid the pitfall of becoming emotionally involved with any trade.
When in a winning trade, be patient and fully capitalize on the success. The trading axiom is, "cut your losses short and let your profits run"
A trading system does not have to be difficult, time consuming, complicated and stressful in order to be profitable. In trading systems, as in many other things in life, simple can be better.
As a trader, be cautious, and never let greed take control of a winning position.
Be aware that declining volume usually indicates the market is not accepting higher or lower prices, and this could indicate a market turn.
Learn from your trading mistakes. Never make a trading mistake without asking yourself why.
Do not make trading decision based solely on margin requirements, and always trade within your capabilities. Remain true to your trading plan and follow the trading style that works best for you.
Do not trade markets that you don't understand. Trade with confidence and conviction. Trade only with risk capital, and be aware of the risk of losing. Divide your capital into 6 equal parts and never risk more than one-tenth of your capital on any one trade.
9. After a long period of success or a period of profitable trades, try to avoid the natural tendency toward increasing your trading activity. Conversely, use self-discipline when a trade goes against your position. Take your loss and wait for another opportunity. Never increase your trading after a loss.
10. Avoid getting into the market because you are anxious from waiting and/or out of the market because you have lost your patience. Never over trade and adhere to your risk management rules.
11. Do not make a trading decision to buy just because the price of the stock is low or sell just because the price is high. Never change your position in the market without a good reason that is based on a fundamental or technical rule indicating a change in trends.
12. Trade the most active stocks and refrain from trading the slow moving markets. Trade "at the market" whenever possible and try to avoid a fixed buying and selling price.
13. When the market is moving with your position and you are using a stop loss order, raise your stop loss so as to lock in your profit. Protect yourself against the possibility of turning a profit into a loss.
14. The "trend is your friend," and never buy and sell if you are insecure of the trend according to your fundamentals and technical rules. If you are in doubt, then exit the market. Only trade when you feel confident with your trading strategies.
15. Trade in five or six different stocks at a time, so as to avoid tying up all of your capital in any single stock.
16. It is difficult to try and guess where the top and bottom of the market is, instead let the market prove its top and bottom.
Next issue:
Master yourself to be a trader
If you have any other questions, please contact
support@online-trading-centre.com
They are:
Define specific risk and profit objectives before trading.
Maintain the necessary discipline to follow that plan through both good and bad times. Successful traders will agree that discipline contributed more to their success than their trading philosophy itself. Remember that the key to any plan is how well it holds over time.
There is no trading system that is 100% accurate.
Your goal, as a trader, is to use the tools available and try to develop an edge. Base your trades on sound fundamental and technical reasoning. If you can develop an edge, however small, over time you will be successful.
A trading system does not have to be difficult, time consuming, complicated and stressful in order to be profitable.
In trading systems, as in many other things in life, simple can be better.
Money management is the most important part of your trading plan
An investing edge is only part of the equation.
Limit your loss by:
** Percentage of the trade
** Support or resistance point
** A calculated point of retracement.
A trader should establish a "surplus account"
The goal is to retain the "surplus account" for times of emergency or panic after you have been profitable for a few times.
Follow these rules that can easily increase your return by 100%
A trader must be able to admit they have made a mistake. Do not become emotionally or financially committed to a losing trade. Avoid the pitfall of becoming emotionally involved with any trade.
When in a winning trade, be patient and fully capitalize on the success. The trading axiom is, "cut your losses short and let your profits run"
A trading system does not have to be difficult, time consuming, complicated and stressful in order to be profitable. In trading systems, as in many other things in life, simple can be better.
As a trader, be cautious, and never let greed take control of a winning position.
Be aware that declining volume usually indicates the market is not accepting higher or lower prices, and this could indicate a market turn.
Learn from your trading mistakes. Never make a trading mistake without asking yourself why.
Do not make trading decision based solely on margin requirements, and always trade within your capabilities. Remain true to your trading plan and follow the trading style that works best for you.
Do not trade markets that you don't understand. Trade with confidence and conviction. Trade only with risk capital, and be aware of the risk of losing. Divide your capital into 6 equal parts and never risk more than one-tenth of your capital on any one trade.
9. After a long period of success or a period of profitable trades, try to avoid the natural tendency toward increasing your trading activity. Conversely, use self-discipline when a trade goes against your position. Take your loss and wait for another opportunity. Never increase your trading after a loss.
10. Avoid getting into the market because you are anxious from waiting and/or out of the market because you have lost your patience. Never over trade and adhere to your risk management rules.
11. Do not make a trading decision to buy just because the price of the stock is low or sell just because the price is high. Never change your position in the market without a good reason that is based on a fundamental or technical rule indicating a change in trends.
12. Trade the most active stocks and refrain from trading the slow moving markets. Trade "at the market" whenever possible and try to avoid a fixed buying and selling price.
13. When the market is moving with your position and you are using a stop loss order, raise your stop loss so as to lock in your profit. Protect yourself against the possibility of turning a profit into a loss.
14. The "trend is your friend," and never buy and sell if you are insecure of the trend according to your fundamentals and technical rules. If you are in doubt, then exit the market. Only trade when you feel confident with your trading strategies.
15. Trade in five or six different stocks at a time, so as to avoid tying up all of your capital in any single stock.
16. It is difficult to try and guess where the top and bottom of the market is, instead let the market prove its top and bottom.
Next issue:
Master yourself to be a trader
If you have any other questions, please contact
support@online-trading-centre.com
Wednesday, 16 May, 2007
Online Trading (8)
Success on trading is known and done something that over 80% of people aren't.
Thanks to Internet and computer, you can trade stocks around the world 24/7.
The Internet is changing almost everyone way of life-investors and traders too.
Today, more than 10 million people have sized the opportunity to reduce the commission paid to full service brokers firm by opening an on line trading accounts.
Every year, millions more join this revolution.
With the reduced cost to trade and LCN Level II trading platform, on line trading becomes a perfect solution for you.......if you want an additional income stream or a lucrative new business.
It is not easy for beginners to make money trading the markets without the right knowledge and tools.
You need a safe trading system producing consistent results whether the market go up, down, or sideways.
Whether you are beginners or advance traders, you need to practice the trader's secrets that help thousands investors or traders to make a fortune.
What is the traders' secret?
Learn and practice these before you take any action.
a) Understand what is behind the curtain.
** Learn the law of probability.
** Know the Dow Jones theory.
** To be a technical analyst and to be an visual trader
b) Build a trading plan.
** That fit your personality and life style
** That must have a risk management that fit your trading
style and budget
c) Master yourself
** Strict with your trading plan to control your risk.
Knowing how to enter and exit a trade..
It is one if the reasons that not enough to become a successful trader.
Without a trading plan, you still have to make the decision to enter or exit a trade. There is the human element to consider.
Even though your method tells you that you should enter a trade for some psychological reason you decided not to take the trade.
There lies the weakness of the method trader.
Even though you know that you should enter or exit a trade you don't because at that particular moment in time some voice inside you telling you not to do it.
That is a reason why mental discipline is so important when you manage your trade.
But this is always disregarded by most traders and investors.
This is why once in a while you create a big loss that always eat your profits and sometimes that even dig a deep hole in your losing position.
Should you have a trading plan?
Should you have a money management strategy?
Yes, you should do something over 80% of traders and investors aren't.
Next issue:
Build a trading plan with the fundamentals.
If you have any other questions, please contact
support@online-trading-centre.com
Thanks to Internet and computer, you can trade stocks around the world 24/7.
The Internet is changing almost everyone way of life-investors and traders too.
Today, more than 10 million people have sized the opportunity to reduce the commission paid to full service brokers firm by opening an on line trading accounts.
Every year, millions more join this revolution.
With the reduced cost to trade and LCN Level II trading platform, on line trading becomes a perfect solution for you.......if you want an additional income stream or a lucrative new business.
It is not easy for beginners to make money trading the markets without the right knowledge and tools.
You need a safe trading system producing consistent results whether the market go up, down, or sideways.
Whether you are beginners or advance traders, you need to practice the trader's secrets that help thousands investors or traders to make a fortune.
What is the traders' secret?
Learn and practice these before you take any action.
a) Understand what is behind the curtain.
** Learn the law of probability.
** Know the Dow Jones theory.
** To be a technical analyst and to be an visual trader
b) Build a trading plan.
** That fit your personality and life style
** That must have a risk management that fit your trading
style and budget
c) Master yourself
** Strict with your trading plan to control your risk.
Knowing how to enter and exit a trade..
It is one if the reasons that not enough to become a successful trader.
Without a trading plan, you still have to make the decision to enter or exit a trade. There is the human element to consider.
Even though your method tells you that you should enter a trade for some psychological reason you decided not to take the trade.
There lies the weakness of the method trader.
Even though you know that you should enter or exit a trade you don't because at that particular moment in time some voice inside you telling you not to do it.
That is a reason why mental discipline is so important when you manage your trade.
But this is always disregarded by most traders and investors.
This is why once in a while you create a big loss that always eat your profits and sometimes that even dig a deep hole in your losing position.
Should you have a trading plan?
Should you have a money management strategy?
Yes, you should do something over 80% of traders and investors aren't.
Next issue:
Build a trading plan with the fundamentals.
If you have any other questions, please contact
support@online-trading-centre.com
Subscribe to:
Posts (Atom)
