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Stock Market Wisdom-Learning to Trade Like the Legends, Part 9

Sunday, February 20th, 2011

Stock Market Wisdom-Learning to Trade Like the Legends, Part 9

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Home Page > Finance > Investing > Stock Market Wisdom-Learning to Trade Like the Legends, Part 9

Stock Market Wisdom-Learning to Trade Like the Legends, Part 9

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Posted: Sep 12, 2010 |Comments: 0
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Top traders and investors have different opinions, concerning the buy-and-hold strategy. Basically, this strategy dictates that once you buy a stock you like, it is held for years or even decades, no matter what. The belief is that staying fully invested all the time will give you profits in the long run. This includes hanging onto your stocks through major bear market cycles.

After the 1929 stock market crash, it took 27 years for the market to climb back to its 1929 high. The NASDAQ currently is not even close to getting back to its 2000 high, after the crash that began that same year. We are at 10 years and counting. Talk about a wait and hope game. I believe the buy-and-hold strategy is pure insanity, unless you can buy fundamentally strong stocks at, or near the end of, a major bear market, when valuations are low. Almost all stocks fall during a bear market, but only some of them recover after a long period of time.

Here are some random gems of trading knowledge.

You are better off owning the wrong stock at the right time, than the right stock at the wrong time.

There are times when you should be out of the market completely.

A stop-loss order is a tool that can help you become successful. This also includes the “trailing” stop-loss order.

It is important that your stock has enough following to make a string of new highs.

When volume rises substantially, somebody knows something. If price rises, along with volume, that could be considered a buy signal. Let volume and price go up some before you buy. These are the two best confirmations.

When most people are bearish, most people are probably wrong. When most people are bullish, they might be right sometimes.

When a stock stays in a very narrow trading range for a long time, and then comes out of it on the up-side, you can be pretty sure the stock has been under accumulation. This is quite bullish.

When a general market movement to cover begins, prices tend to go up very rapidly. This is called a “climax run”. Get out immediately and protect your profits.

It is important to follow a trend, but you should always be watching for a reversal. The charts will give you a clear signal with price and volume analysis.

If a stock price goes up, but volume stays low, do not buy. When both price and volume rise together, that is your signal to buy.

If the general stock market falls below its 200 day moving average, it is probably wise to sell your stocks. The market is trying to tell you something.

Markets tend to go up just when nearly everybody seems to agree they must go down.

Always cut your losses short, and let your profits run.

Buy stocks as they are making new highs, and attracting institutional attention. Do not buy when they are down at the bottom.

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Gary E Kerkow -
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Hi, I’m Gary E Kerkow, founder of Tradingmarkets4u.com. This site provides information to help traders and investors become successful. I have over 20 years of trading experience including stocks, futures and options. I implement the strategies, methods, and psychology of the world’s best traders and investors. This includes Jesse Livermore, William J O’Neil and others. Visit my website at http://www.tradingmarkets4u.com

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How To Trade The S&P 500 E-Mini: Learn the fundamentals of the stock market

Sunday, January 2nd, 2011

How To Trade The S&P 500 E-Mini: Learn the fundamentals of the stock market

Tags: EMini, Fundamentals, Learn, Market, Stock, Trade
Posted in Stock Market Books | No Comments »

How to trade in Indian Stock/Share Market, Strategies and Rules

Thursday, November 25th, 2010

How to trade in Indian Stock/Share Market, Strategies and Rules

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How to trade in Indian Stock/Share Market, Strategies and Rules

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Posted: Jun 18, 2010 |Comments: 0

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How to trade in Indian Stock/Share Market, Strategies and Rules

By: reshu jain

About the Author

Reshu Jain

CapitalVia Global Research Limited

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Article Source: http://www.articlesbase.com/ – How to trade in Indian Stock/Share Market, Strategies and Rules

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Indian Stock Market is very vast market where trading is not so easy we have to follow certain rules and conditions while trading in this market. Some of them trade by taking advice/tips from advisory company while rest of them trade on person views and news they get from market. Here in Stock market anything can happen in minutes, this market is very fluctuating like example :-

World stocks hit a one-month high on Wednesday 16 june and the euro hit a two-week peak high because of strong gains on Wall Street. The success of this week’s European debt auctions encouraged risk taking ability. If the one had buyed shares before last week and selled here in this week will probably have huge profit.

The BSE in this week bench mark the Sensex and by this it rose further over 111 points.

The Stock Market is totally depended on selling and buying on stocks, there are many questions and confusions arises in the minds of the people going to BUY or SELL particular stocks, the question may be like:-

Why to Buy the particular stock, i will be benifited or not by doing this?

What is the risk in getting profit? May I sell or wait for favourable time? Etc.

To avoid problems arising with such questions and getting answers you should look over certain facts and figures like:-

One should analyse the stock or company he is going to invest on regarding the financial situations of the company. This can also include comparing the price, financial activity, stability, Market value, Demand etc. of particular company with other companies.

If the condition here is for BUYING, One should always buy any stocks of a company by its Fundamental analysis, this type of analysis shows “Value investing” , “Growth of Stocks” , “Give preference to Dividend Stocks”

Rather if we talk about SELLING stocks then also fundamental analysis is worthfull, like

Sell when you have a recent or current “News Flash” , “Price of Stock is overevaluated”.

Apart from all the questions and answers there is need to follow some rules and strategies for profitable trading in Stock Market, which are illustrated as follow:-

Rules one should follow while Trading:-

1. Divide your capital into 10 equal risk parts.
2. In a single trade always try not to invest 10% of your Capital.

3. Never do over trading.

4. to trade efficiently never average your losses.

5. No guessing on Tops and Bottoms always trade on confermed News.

6. Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

7. Never take lead you may loose heavily.

8. Don’t follow tips only.

9. Risk should be distributed differently among different Market.

10. When you lose don’t blame it on luck.

11. Don’t trade if trend not clear

12. Never limit your orders. Trade at the markets

13. Only trade active markets.

14. Bear markets have no support and bull markets have no resistance.

15. Never buy a stock to get dividend.

16. Avoid partnership in trading accounts.

17. Buy on rumor and sell on news.

18. Never let profit turn into loss.

19. Decrease your trading after a series of successful trades.

20. Never buy a stock just because it has fallen from a great high, nor sell a stock because it is high priced.

Strategies one should follow while trading:-

1. Always develop a winning Strategy in market while trading, never ever try to earn profit instantly and all together in one turn always have patience because small profits daily can give large anual return.

2. Winning strategy is a strategy with the lowest risk/return ratio.

3. Always be sure that expected return is larger than the transaction cost (bid-ask spread + brokerage commissions).

4. Never fear losses, be brave enough and always keep in mind that stock market is the place where one looses and another gains.

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reshu jain -
About the Author:

Reshu Jain

CapitalVia Global Research Limited

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Stock Market Books 2009 > Stock Day Trading E-book – How to Trade Stocks & Win?

Tuesday, October 26th, 2010

BY.- http://www.MomentumStockTrading.com

Beginner traders often fantasize or wonder about how some people are able to achieve tremendous profits by trading stocks just a few hours on a daily or weekly basis.

So going farther than the hype & the bells and whistles that a lot of the called “trading gurus” like to invoke, the real “secrets” of the stock market game are enclosed within the trading set ups and market signals you rely on to decide how to CHOOSE stocks, as well as WHEN to BUY & when to SELL them, or even when to SHORT SELL those that are poised for a profitable fall.

So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and ACT ON IT reducing your risk.

Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to FOCUS on a set of simple trading strategies that you can implement without hesitation.

Fortunately some sites on the web do offer more effective and updated day trading methodologies. One of those sites that can show you how to take advantage of certain stocks on positive and negative momentum as well is http://www.MomentumStockTrading.com

They focus on momentum stock trading strategies, that are practical and easier to apply than many other technical systems out there.

Stock trading doesn’t have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.

Momentum Stock Trading helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.MomentumStockTrading.com

Tags: 2009, books, Ebook, Market, Stock, Stocks, Trade, Trading
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Learn Day Trading 2009 > Learn How to Stock Trade – Learning About the Stock Market

Tuesday, October 5th, 2010

BY.- http://www.PracticalDayTrading.com

It’s no secret that day trading can be a very lucrative, yet highly competitive field, and the truth is that the stock market doesn’t care if you are an experienced or a beginner trader.

The rules and the opportunities are the same for everyone, so either you are going to make money when you pick a stock and make a trade or you are simply going to lose it in favor of the more seasoned ones.

It won’t matter if we are in a recession or we have a great economy. Gamblers and ignorants loose money consistently either way. While experienced and Profitable traders make money in good or bad times. The trick is to learn how to do it.

As a day trader your homework is all about studying and testing different market strategies that can help you take advantage of stocks while at the same time protect your gains.

Just always keep in mind that a good strategy is simple and practical. Complicated stock systems will always make you slow in your decision making process or confuse you from the start.

A trader must always read as much as he can. There is simply no other way to prepare one self for this difficult yet incredibly rewarding activity, but to read and put into practice as much ideas as you can, at least by paper trading first.

The are a lot of books on the subject that pretend to help you, however many of them where written 6 or 8 years ago and that kind of makes them obsolete in this constantly changing field.

Fortunately there are some practical day trading sites on the web where you can access proven trading strategies that are easy to implement. One of those sites is http://www.PracticalDayTrading.com

They focus on stock trading methodologies that can help you identify and take advantage of certain stocks with momentum, while limiting your risk.

Visit them today and improve your stock trading potential in 2009.

Practical Day Trading helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.PracticalDayTrading.com

Tags: 2009, about, Learn, Learning, Market, Stock, Trade, Trading
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Stock Market Tips > How To Trade Stocks Online – Trading Shares

Sunday, September 26th, 2010

BY.- http://www.MomentumStockPick.com

It’s no secret that online trading can be a very lucrative, yet highly competitive field, and the truth is that the stock market doesn’t care if you are an experienced or a beginner trader.

The rules and the opportunities are the same for everyone, so either you are going to make money when you pick a stock and make a trade or you are simply going to lose it in favor of the more seasoned ones.

It won’t matter if we are in a recession or we have a great economy. Gamblers and ignorants loose money consistently either way. While experienced and Profitable traders make money in good or bad times. The trick is to learn how to do it.

As a stock trader your homework is all about studying and testing different market strategies that can help you take advantage of stocks while at the same time protect your gains.

Just always keep in mind that a good strategy is simple and practical. Complicated stock systems will always make you slow in your decision making process or confuse you from the start.

A trader must always read as much as he can. There is simply no other way to prepare one self for this difficult yet incredibly rewarding activity, but to read and put into practice as much ideas as you can, at least by paper trading first.

The are a lot of books on the subject that pretend to help you, however many of them where written 6 or 8 years ago and that kind of makes them obsolete in this constantly changing field.

Fortunately there are some practical stock trading sites on the web where you can access proven trading strategies that are easy to implement. One of those sites is http://www.MomentumStockPick.com

They focus on stock trading methodologies that can help you identify and take advantage of certain stocks with momentum, while limiting your risk.

Visit them today and improve your stock trading potential in 2009.

Momentum Stock Pick helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.MomentumStockPick.com

Tags: Market, Online, Shares, Stock, Stocks, Tips, Trade, Trading
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How The Pro’s Trade Rounding Bottom Chart Pattern Analysis

Friday, September 17th, 2010

Stock Market Strategy has put together a video to explain how professional traders use Rounding Bottom for entering high odds trades. Rounding Bottom is explained and pointed out on charts so you can see how it can be used and implemented into a trading plan to become a profitable trader faster. Understand the psychology behind the chart pattern to really start believing in this stock pattern for better implementation. We hope you enjoy the video. Direct link to Rounding Bottom Page: www.stock-market-strategy.com Join Stock Market Strategy: www.stock-market-strategy.com

Tags: Analysis, Bottom, Chart, Pattern, Pro's, Rounding, Trade
Posted in Stock Market Books | No Comments »

Stock Market Books

Posts Tagged ‘Trade’

Stock Market Wisdom-Learning to Trade Like the Legends, Part 9

How To Trade The S&P 500 E-Mini: Learn the fundamentals of the stock market

How to trade in Indian Stock/Share Market, Strategies and Rules

Stock Market Books 2009 > Stock Day Trading E-book – How to Trade Stocks & Win?

Learn Day Trading 2009 > Learn How to Stock Trade – Learning About the Stock Market

Stock Market Tips > How To Trade Stocks Online – Trading Shares

How The Pro’s Trade Rounding Bottom Chart Pattern Analysis

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