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
Saturday, May 26, 2007
Wednesday, May 23, 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, May 18, 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, May 16, 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
Monday, May 14, 2007
Online Trading (7)
Knowledge is power.
You need the knowledge and right tools to assist you to be succeeding in any business.
It saves not only in your time and provides you more information about the market that you need to know before you make a decision to make a trade.
The knowledge and tools that you learn from this program, is flexible enough to work on anything that is traded in the financial markets.
Before you jump into your online investment or trading, it is important to learn the characteristic of each stock and market and then, apply the same tools and concepts of how to trade in order to have a bigger probability to make a profit.
Without this knowledge, you could risk all your capital and saving.
This is a serious warning
Trading tips guarantee result in a long run.
This is a golden list of rules that helps you in online trading.
**Rule#1 Create your trading plan to get a consistent result.
**Rule#2 Don't trade without an opportunity
**Rule#3 Always trade with a trend-long, short or channel
**Rule#4 Learn to cut loss before you even start to trade
**Rule#5 Cut losses and let your profit run when you have a trade.
Check out the Inner Worth of trading.
Visit here.
Understanding the trend methodology.
Visit here
Learn how to trade
Visit here
Next issue:
Success on trading is known and done something that over 80% of people aren't.
If you have any other questions, please contact
support@online-trading-centre.com
You need the knowledge and right tools to assist you to be succeeding in any business.
It saves not only in your time and provides you more information about the market that you need to know before you make a decision to make a trade.
The knowledge and tools that you learn from this program, is flexible enough to work on anything that is traded in the financial markets.
Before you jump into your online investment or trading, it is important to learn the characteristic of each stock and market and then, apply the same tools and concepts of how to trade in order to have a bigger probability to make a profit.
Without this knowledge, you could risk all your capital and saving.
This is a serious warning
Trading tips guarantee result in a long run.
This is a golden list of rules that helps you in online trading.
**Rule#1 Create your trading plan to get a consistent result.
**Rule#2 Don't trade without an opportunity
**Rule#3 Always trade with a trend-long, short or channel
**Rule#4 Learn to cut loss before you even start to trade
**Rule#5 Cut losses and let your profit run when you have a trade.
Check out the Inner Worth of trading.
Visit here.
Understanding the trend methodology.
Visit here
Learn how to trade
Visit here
Next issue:
Success on trading is known and done something that over 80% of people aren't.
If you have any other questions, please contact
support@online-trading-centre.com
Saturday, May 12, 2007
Online Trading (6)
Fundamentals of Trading
Trading is not an exact science. You can't do X and get Y every time.
It is as much an art as it is anything else.
There is no magic formula.
** Trading is all about probability. It is the art of correctly
applying a set of carefully thought out rules and
allocating the probability of that event to result
in success.
** Each trade is an independent event. The market does
not remember if you lost or made dollars the last time
you traded.
** The way you approach the market psychologically has
as much to do with your success as any trading plan.
** Risk management is crucial if you want to have any
hope of becoming a successful trader.
** Matching a method of trading with your personality
is the only way you will ever feel comfortable
in the markets.
** Never, equate your success or failure in the markets
with who you are as a person!
** An adequately funded account is necessary - not only
to be able to take the trades you want, but also so you
don't feel every trade is a live or die situation.
The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams.
The Flaw in Our Emotions
As humans we have a natural tendency to try and influence our surroundings and events we take part in. This is one reason we, as a species, have succeeded but it is also one of the fundamental flaws we all have when trying to achieve success as a traders.
Next issue:
Knowledge is power.
If you have any other questions, please contact
support@online-trading-centre.com
Trading is not an exact science. You can't do X and get Y every time.
It is as much an art as it is anything else.
There is no magic formula.
** Trading is all about probability. It is the art of correctly
applying a set of carefully thought out rules and
allocating the probability of that event to result
in success.
** Each trade is an independent event. The market does
not remember if you lost or made dollars the last time
you traded.
** The way you approach the market psychologically has
as much to do with your success as any trading plan.
** Risk management is crucial if you want to have any
hope of becoming a successful trader.
** Matching a method of trading with your personality
is the only way you will ever feel comfortable
in the markets.
** Never, equate your success or failure in the markets
with who you are as a person!
** An adequately funded account is necessary - not only
to be able to take the trades you want, but also so you
don't feel every trade is a live or die situation.
The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams.
The Flaw in Our Emotions
As humans we have a natural tendency to try and influence our surroundings and events we take part in. This is one reason we, as a species, have succeeded but it is also one of the fundamental flaws we all have when trying to achieve success as a traders.
Next issue:
Knowledge is power.
If you have any other questions, please contact
support@online-trading-centre.com
Friday, May 11, 2007
Online Trading (5)
Trading is a skill.
Traders who apply a method to their trading inevitably have better results.
If you use the same criteria to each trade, then you at least have a reference point from which to work.
If you are losing, you can then change specific things in you're decision making process in order to find the right criteria.
By using a method in your trading, you are moving towards the scientific approach and just as scientist will carefully research and record each experiment so should the trader trying to perfect the method he is using.
The technical ideas are primary crafted around the personality of the stock markets but you can apply the same knowledge, tools, and concepts in trading any financial markets such as stock, future, and FX currency.
The theory behind what you'll be reading hinges upon stock price movement which is in daily and intraday bar charts.
Many approaches to trading are espoused of how to find, enter and manage your trades.
They are the same ones that have provided day traders with profits which mount into hundreds of thousands per years.
Although this trading style is sound and profitable, it also must incorporate the art and mental discipline of each person who applies it.
Is that interesting?
You have to learn to be a visual trader using the daily and intraday bar charts to time your trade entries and exits from experience with the aid of helpful tips and tools in the Internet.
Be a student of the market and learn how each individual stock moves, its personality, and how the main overall market indexes affect the stock's movement on a daily and intraday basis.
Let's start working......
Trading, like any endeavor or any skill, you have to learn it.
You learn through trial and error, through having experiences and evaluating and learning from those experiences; and of course, your learning is accelerated if we have the support and advice of someone who is further along the path of development.
The skills of trading have to do with execution, and implementation, the doings of trading. The problems you have experienced in your trading, problems that are popularly referred to as the psychology of trading, are the challenges of trading, it is these problems you surmount as you develop your trading skills.
The skills of execution are the equivalent of the basic shots and strokes that make up the games of golf or tennis. There is no point having a strategy in tennis if you can't execute the complement of strokes you need to be able to play.
Knowing that you need to hit the ball deep and move your opponent from one side of the court to the other is of no value if you cannot hit the basic shots.
There is no point having a trading strategy if you can't trade and no novice trader knows how to trade. The problems you all experience in trying to make money trading stem from the fact that you do not yet have the skills of a trader.
If all you needed was a system, you would all be wealthy; you have no need to become traders.
As a novice…….
It is helpful to trade a simple, logical system.
This may be contradicted against from system vendors. But in reality, it is the ability to implement a system or strategy that determines success in trading.
Is it possible to rely on a system 100%?
The answer is "No".
Want to try a hard way. Your choice.
As your trading skills evolve, your ability to read the market will evolve; but until then you will have no valuable opinion, so a simple, logical system will give you a reason to buy or sell.
Want to have a good start?
Just to start with the understanding that trading is a skill that is developed over time, through experience, puts a novice trader way ahead of the competition.
There are TWO core skills in trading.
They are:
a) The ability to anticipate the market.
(Read the market.)
b) Having the discipline to execute your plan.
To learn to read the market, you may get help by having trading simulators and only start to trade when you have demonstrated to yourself that you can anticipate the market.
Discipline, though, has to be developed and tested in the real world.
Discipline is really the crux of the matter and it is here that most traders fall down.
Their failure is mainly due to the fact that they are not really aware of its importance.
Just starting out as a trader with the intention of developing your discipline puts you way ahead of the average trader.
If you can trade with discipline (i.e. stick to your own rules and limits) you are 95% there!
Trading is like most business: it requires knowledge, commitment and perseverance.
It is never easy to make money, but people who have mastered a skill make it appear easy. The really successful pit traders have made trading look very easy; but they all had many years of experience behind them. But the most important is that they have their trading styles and strategies.
Being a method trader, you have researched a particular theory. You have to do the back test (apply the theory to historical charts) and comes up with indicators, tools or other methods of determining the entry and exit criteria.
Don’t waste yours hard earn money. Back test your method on paper until you can make money on paper consistently in the markets.
Think about it. If you can’t make money on the paper, in reality, how you can make money in the markets especially when you have more emotional problems on hands.
Want to test your method working in the markets.
Find a market simulator with the Goggles’ search. Click here.
Want to know:
How you trade is important as what you trade
Common misconceptions of New Traders
Fundamentals of Trading.
Click once on the topic you want to read.
Next issue:
Fundamental of Trading
If you have any other questions, please contact
support@online-trading-centre.com
Wednesday, May 9, 2007
Online Trading (4)
This is how over 50% of traders start their position.
First, they guess which way the market is going to go. Now as surprising as it may seem there are many traders who do just that. They take a look at a chart or some news and then decide if they should buy or sell.
If they make money consistently then it is hard to argue that this is the wrong way to trade the market. The problem of this type of trading is that it is almost impossible to reproduce results consistently.
In other words, the trader that trades by instinct can never really pass on his knowledge, as there is no clear rule that he applies to the market on a regular basis. Not many of them have gone the distance and are there year after year.
Traders who apply a method to their trading inevitably have better results.
If you use the same criteria to each trade, then you at least have a reference point from which to work. If you are losing, you can then change specific things in your decision making process in order to find the right criteria.
By using a method in your trading, you are moving towards the scientific approach and just as a scientist will carefully research and record each experiment so should the trader trying to perfect the method he is using.
If you apply XYZ as your reason for entering a trade and you can see after a predetermined amount of trades that it is not working; then you can change X, Y or Z until you find something that does work?
Typically the method trader has researched a particular theory. You have to back test (applying the theory to historical charts) and come up with indicators, tools or some other method of determining the entry and exit criteria.
If at the end of his research you find that you can make money you will then apply that method to the market.
As you still have to make the decision to enter or exit a trade there is still the human element to consider.
Even though your method may tell you to enter a trade, for some psychological reason you have decided not to take the trade. There lies the weakness of the method trader. Even though you know you should enter or exit a trade you don't because at that particular moment in time some voice inside you tells you not to do it.
This is how you can improve your trade immediately....
The solution is to make it mechanical as much as possible.
There has probably been more written about mechanical trading systems than any other topic in trading. The premise of mechanical systems is that a particular theory he's been back tested over a long period of time and has consistently made money.
There is no emotion involved with the decision making process at all. If the system says buy the security then you buy or an order is automatically done for you.
This takes away all the emotional UPS and Downs and all you have to do is to buy the security and supply the money.
Trading is just like life. There is no correct way to trade only what suits you in your own tune and your own strategies.
As long as you include these elements in your trading system,
They are:
a) Your trading plan
b) Loss management strategies
c) Your execution strategies
Next issue:
Trade the stock market with trend methodology.
If you have any other questions, please contact
support@online-trading-centre.com
First, they guess which way the market is going to go. Now as surprising as it may seem there are many traders who do just that. They take a look at a chart or some news and then decide if they should buy or sell.
If they make money consistently then it is hard to argue that this is the wrong way to trade the market. The problem of this type of trading is that it is almost impossible to reproduce results consistently.
In other words, the trader that trades by instinct can never really pass on his knowledge, as there is no clear rule that he applies to the market on a regular basis. Not many of them have gone the distance and are there year after year.
Traders who apply a method to their trading inevitably have better results.
If you use the same criteria to each trade, then you at least have a reference point from which to work. If you are losing, you can then change specific things in your decision making process in order to find the right criteria.
By using a method in your trading, you are moving towards the scientific approach and just as a scientist will carefully research and record each experiment so should the trader trying to perfect the method he is using.
If you apply XYZ as your reason for entering a trade and you can see after a predetermined amount of trades that it is not working; then you can change X, Y or Z until you find something that does work?
Typically the method trader has researched a particular theory. You have to back test (applying the theory to historical charts) and come up with indicators, tools or some other method of determining the entry and exit criteria.
If at the end of his research you find that you can make money you will then apply that method to the market.
As you still have to make the decision to enter or exit a trade there is still the human element to consider.
Even though your method may tell you to enter a trade, for some psychological reason you have decided not to take the trade. There lies the weakness of the method trader. Even though you know you should enter or exit a trade you don't because at that particular moment in time some voice inside you tells you not to do it.
This is how you can improve your trade immediately....
The solution is to make it mechanical as much as possible.
There has probably been more written about mechanical trading systems than any other topic in trading. The premise of mechanical systems is that a particular theory he's been back tested over a long period of time and has consistently made money.
There is no emotion involved with the decision making process at all. If the system says buy the security then you buy or an order is automatically done for you.
This takes away all the emotional UPS and Downs and all you have to do is to buy the security and supply the money.
Trading is just like life. There is no correct way to trade only what suits you in your own tune and your own strategies.
As long as you include these elements in your trading system,
They are:
a) Your trading plan
b) Loss management strategies
c) Your execution strategies
Next issue:
Trade the stock market with trend methodology.
If you have any other questions, please contact
support@online-trading-centre.com
Monday, May 7, 2007
Online Trading (3)
Common Misconceptions of New Traders are:
They think...
** They can trade consistently with an 80% accuracy
** They can turn $1000 into $100,000 in six months
** They can predict turning points in their given markets
to within minutes.
** They can buy a system that is 100% accurate.
** They can quit their jobs and make a living full time
after a few months of trading.
What's the reason that so many new traders believe
that trading is an easy way to make big profits?
Propaganda!
We are continually bombarded in magazines, emails and the general media with claims of making astronomical amounts, just by applying the vendor's latest method or system.
People fail at any business if they approach it without an appreciation and understanding of what is required for success. The majority of traders fail because they have no such appreciation and they have unrealistic expectations of themselves.
Any trader who starts with the expectation of becoming an instant success is setting himself up for failure. No one would decide to become golf pro and assume that they could just pick up a bag of clubs and start winning tournaments. Yet novice traders do this all the time.
Next issue:
This is how over 50% of traders start their position.
If you have any other questions, please contact
support@online-trading-centre.com
They think...
** They can trade consistently with an 80% accuracy
** They can turn $1000 into $100,000 in six months
** They can predict turning points in their given markets
to within minutes.
** They can buy a system that is 100% accurate.
** They can quit their jobs and make a living full time
after a few months of trading.
What's the reason that so many new traders believe
that trading is an easy way to make big profits?
Propaganda!
We are continually bombarded in magazines, emails and the general media with claims of making astronomical amounts, just by applying the vendor's latest method or system.
People fail at any business if they approach it without an appreciation and understanding of what is required for success. The majority of traders fail because they have no such appreciation and they have unrealistic expectations of themselves.
Any trader who starts with the expectation of becoming an instant success is setting himself up for failure. No one would decide to become golf pro and assume that they could just pick up a bag of clubs and start winning tournaments. Yet novice traders do this all the time.
Next issue:
This is how over 50% of traders start their position.
If you have any other questions, please contact
support@online-trading-centre.com
Thursday, May 3, 2007
Online Trading (2)
IMSP & Online Trading Centre provides you a solution.
Educate yourself with all aspects of your chosen business.
If you want to maximize the return of your hard earn money,
it is not enough just to know:
a) Which industry are the companies in?
b) Are they paying dividend?
c) Are they making money?
What else you have to know to be a successful investors or traders….
To be a good cook, you have to know...
a) The characteristic of the basic ingredient to cook.
They are the sugar, salt, vinegar, temperature
of the fire and etc
b) The characteristic of vegetable and meat
c) The correct mix of the above
To be Tiger Wood and Michael Jordon, you have to learn….
a) How to take a shot with your club or how to position
yourself before you are on the field
b) How to prepare yourself mentally and physically
to be on the field
c) How you can have a game plan to get a
consistent result.
To be a good investors or traders, there is no difference that you have to take the same approach in order to obtain a consistent result to make money in the markets.
That means you have to learn….
a) The “correct” psychological approach to the markets
b) How to select stocks of companies can increase
their value consistently
c) The “correct” risk management techniques relative
to your personality, your trading account size and
your altitude on investment
d) The “correct” choice of strategies for your trading
style to enter and exit the markets
Trading or investing your money in the markets is a skill.
Learn from a professional cook and a professional sport man of how they prepare themselves before they are going into a game.
They learn the basic of how to cook, how to shoot and how to hit.
Have the same approach to start trading or investing in the markets.
Then, why do you want to trade the stock markets?
The reasons may be....
Next issue:
Common misconception of new traders..
If you have any other questions, please contact
support@online-trading-centre.com
Educate yourself with all aspects of your chosen business.
If you want to maximize the return of your hard earn money,
it is not enough just to know:
a) Which industry are the companies in?
b) Are they paying dividend?
c) Are they making money?
What else you have to know to be a successful investors or traders….
To be a good cook, you have to know...
a) The characteristic of the basic ingredient to cook.
They are the sugar, salt, vinegar, temperature
of the fire and etc
b) The characteristic of vegetable and meat
c) The correct mix of the above
To be Tiger Wood and Michael Jordon, you have to learn….
a) How to take a shot with your club or how to position
yourself before you are on the field
b) How to prepare yourself mentally and physically
to be on the field
c) How you can have a game plan to get a
consistent result.
To be a good investors or traders, there is no difference that you have to take the same approach in order to obtain a consistent result to make money in the markets.
That means you have to learn….
a) The “correct” psychological approach to the markets
b) How to select stocks of companies can increase
their value consistently
c) The “correct” risk management techniques relative
to your personality, your trading account size and
your altitude on investment
d) The “correct” choice of strategies for your trading
style to enter and exit the markets
Trading or investing your money in the markets is a skill.
Learn from a professional cook and a professional sport man of how they prepare themselves before they are going into a game.
They learn the basic of how to cook, how to shoot and how to hit.
Have the same approach to start trading or investing in the markets.
Then, why do you want to trade the stock markets?
The reasons may be....
Next issue:
Common misconception of new traders..
If you have any other questions, please contact
support@online-trading-centre.com
Wednesday, May 2, 2007
Online Trading (1)
Trading is like most business.
It requires knowledge, commitment and perseverance.
It is never easy to make money, but people who have mastered the skill making it appeared so easy and they can consistently make huge amount of money in the markets.
Trading is a skill.
You need a trading system and business tools to help you to become a successful trader or investor in the financial markets.
This is not it.
Investing in stock
By far it is the best choice to have the highest return on your money.
How come most people don’t do it?
This is a million dollars question.
First, let’s take a look at what other alternatives of investment you may have …….
Visit here.
If you decide to invest your money in the stock markets, you have the choice either ask the professional to manage your money or to control it yourself.
If you decide to hire a fund manger controlling your hard earn money, please be sure you hire a “good” one.
The dangers may be……Visit here
If you decide to take the responsibility to manage your own investment money, you have these choices:
a) Buy stocks and keep them for your life time.
Never take a look at them.
b) Buy stocks and adjust your position once in awhile.
c) Buy stocks and continue trading them in the markets to
maximize your return.
If you decide to take the responsibility to take care about it yourself, the question of that will be.
Do you have the knowledge to take this position?
Is this a business for you?
Just a minute, have you heard about this…..?
More than 80% of private traders who ever trade lose money and that 10% actually go bankrupt.
If the first number doesn’t scare you then the second definitely should.
Why over 80% of private traders lose money?
It shouldn’t but this is happening.
Why?
So why do they fail?
It is not because they are stupid; in fact most traders have an above average IQ and above average in most categories such as education and income.
The simple reason is that they lack trading or investing education.
Next issue:
IMSP & Online Trading Centre provides you a solution.
If you have any other questions, please contact
support@online-trading-centre.com
It requires knowledge, commitment and perseverance.
It is never easy to make money, but people who have mastered the skill making it appeared so easy and they can consistently make huge amount of money in the markets.
Trading is a skill.
You need a trading system and business tools to help you to become a successful trader or investor in the financial markets.
This is not it.
Investing in stock
By far it is the best choice to have the highest return on your money.
How come most people don’t do it?
This is a million dollars question.
First, let’s take a look at what other alternatives of investment you may have …….
Visit here.
If you decide to invest your money in the stock markets, you have the choice either ask the professional to manage your money or to control it yourself.
If you decide to hire a fund manger controlling your hard earn money, please be sure you hire a “good” one.
The dangers may be……Visit here
If you decide to take the responsibility to manage your own investment money, you have these choices:
a) Buy stocks and keep them for your life time.
Never take a look at them.
b) Buy stocks and adjust your position once in awhile.
c) Buy stocks and continue trading them in the markets to
maximize your return.
If you decide to take the responsibility to take care about it yourself, the question of that will be.
Do you have the knowledge to take this position?
Is this a business for you?
Just a minute, have you heard about this…..?
More than 80% of private traders who ever trade lose money and that 10% actually go bankrupt.
If the first number doesn’t scare you then the second definitely should.
Why over 80% of private traders lose money?
It shouldn’t but this is happening.
Why?
So why do they fail?
It is not because they are stupid; in fact most traders have an above average IQ and above average in most categories such as education and income.
The simple reason is that they lack trading or investing education.
Next issue:
IMSP & Online Trading Centre provides you a solution.
If you have any other questions, please contact
support@online-trading-centre.com
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