The Basics Of Stock Trading by Tony Spann
The most important aspect of stock trading is to develop a stock trading strategy that suits your needs, expectations and personality type. You need to look at your comfort level for risk, are you looking to make short-term investments and stay on top of the market?
Even your age affects the strategy you should use for trading stocks. Let's look at some of the most common stock trading strategies in use today…
Day Trading
The day trader is someone who buys and sells intraday (during the day) and they tend to trade with frequency throughout the day. The advantages to this stock trading method are that you have no overnight hold exposures; you can take advantages of both longs and shorts during the quick swings in either direction that may occur during the day. You can focus on a higher percentage of winning trades by taking quicker profits (although smaller) and reducing your risk.
Like all things in life this stock trading method is not without its downsides too. This stock trading strategy requires a lot of work, time and effort on your part. You must pay consistent if not constant attention to the market during trading hours. Your transaction costs can run high with this trading strategy since you are trading stocks frequently.
Swing Trading
The swing trader is someone who is looking for larger moves in the market and their trades may last a day, a few days or a couple of weeks. With the slower cycle of trades, there are fewer commissions, less chance of error and the ability to capture the more significant multi-day profits of swing trading.
Technical analysis is typically used to help identify swing trading opportunities and they target a higher percentage of return than in day trading. Along with the higher profit targets also comes a higher risk per trade.
If you are looking to trade over a longer timeframe, you have to expect a higher average risk per trade just to account for the retreats common in all stock and futures market trading. You also have overnight risks and you are exposed to any major developments or events.
Long-term Swing Trading
This investor is much like the Swing Trader above, but this investor typically focuses on holding their stocks for several weeks to a few months and beyond.
This type of trading strategy focuses on trading the indexes, timing of mutual funds or focusing on the technical and fundamental analysis of those stocks purchased. By focusing on the longer-term, you can filter out some of the ‘noise' common in virtually all trading markets. Since you are looking at a longer tend, a small move against the trend isn't as much of a concern (although consistent moves against the trend should not be ignored).
The profit objective of this stock trading method can be quite large with 20, 30 or even 50 percent or greater not being out of the norm. Again with the larger timeframe you have a larger risk, especially with stocks that tend to be more volatile. With this trading strategy you also miss out on the shorter-term swings the market might make.
Buy and Hold Trading
This type of investor might also be called the buy and forget investor, typically purchasing a stock and holding onto it for years. If you pick right using plenty of fundamental analysis and market sentiment analysis, the gains can be quite large with very few trading costs for this stock trading strategy.
Unfortunately, most investors using this stock trading method don't truly have a long-term trading goal in mind other than to amass stocks and just hold on to them.
This is why it is better for the buy and hold investor to start thinking more like the long-term swing trader. You go from no true strategy to a specific strategy where you always know when you enter into a trade what your objectives are and how you'll exit should the market go against you.
Whether you're a beginner or a seasoned pro you'll discover the best Stock Trading Newsletter and tips, tricks, and techniques at http://www.stocktradingreview.com
Article Source: http://www.articlesnatch.com
Thursday, March 12, 2009
I'll be telling you about 15 characteristics of a very successful trader. Trading in stock isn't everyone s cup of tea. Some people can do it and som
What Makes A Successful Stock Trader? by P. Johnson
I'll be telling you about 15 characteristics of a very successful trader.
Trading in stock isn't everyone s cup of tea. Some people can do it and some can't. Even among the some who can, not everybody can be successful at it. While there are no hard and fast rules on what makes or doesn't make a successful stock trader, those Wall street Wizards that you hear about who made the most in the least amount of time, all appear to have certain characteristics in common.
1. Successful stock traders are able to go against their natural instincts.
2. Successful traders have a simple system. No matter which technique you use as long as you stick to it. A Successful trader knows their technique and makes trades based ONLY on their system. "The secret to being a winner is consistency of purpose". You want to improve a separate strategy for getting into a position and for exiting one.
3. Successful traders are risk Adverse. Successful traders don't like losing money and prohibit themselves before losing too much, even if it means admitting they made a mistake.
4. Successful traders are willing to make mistakes. Successful traders have the right and ability, not to do the right thing, but to do the wrong thing. It's the ability to make your own mistakes.
5. Successful traders don't care about being embarrassed by taking a loss. Successful traders expect to take losses and know when to cut them.
6. Successful traders know, or learn how to explore stocks. Many traders only use precise analysis, but you may want to learn to use fundamental analysis as well.
7. Successful traders lead balanced lives. We all know the pleasure of the pursuit and the stock market can be addicting, a successful trader is one who knows when to move away and can.
8. A successful trader is Patient. A successful trader let s winning positions run, but is able to back out when proven wrong. Patience can mean resilience, courage, and conviction for when markets go against you.
9. A successful trader has a biting Desire to succeed. Triumph takes steady work not a chaotic effort, a biting desire to succeed can make all the difference in educating yourself about what you want to know and sticking to your strategy when the going gets rough.
10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he isn't in the mood. Discipline also means Sticking to your strategy, not abruptly buying or selling on a whim, or because of a" hot tip"
11. A successful trader knows the difference between defensive and offensive behaviour, and when to use each. - protect your money first, profit later.
12. Successful traders don't eavesdrop on rumours or get emotionally involved. To be a successful trader you have to be very hard on yourself. Your have to be able to resist the urge to prove you are right and be ready to make mistakes. . You also want to be able to not let emotions affect your decisions. Setting up stop loss points for every decision you make is something that you are going to have to do. That will mean more than occasionally admitting that you are wrong. You and your portfolio will survive and you will be able to get back into the position again when trends signify that the time is right. You will have to learn to disregard any emotional ties you have to your stock and make quick stock trends your master. You will miss the lowest entry points and the top selling points, but you will be able to sleep at night. You will need to learn to get out of a stock position before your profits turn into losses.
13. A successful trader knows themselves. Successful traders must be attentive of their strengths and weaknesses. Your strengths and weakness will become very important. Play on your strengths when you can.
14. A successful trader knows their investments. Your investments are almost as important as you are. Know the past history of the stock and their strengths and weaknesses as well.
15. A successful trader sticks to the rules. The system is there for a reason. Nothing can ruin a successful stock buyer as quickly, or as certainly as flouting the rules.
Get to know these 15 characteristics and you are on your way to becoming a successful trader.
P. Johnson is an Investment Specialist. For more of his articles visit http://www.fish4articles.com
Article Source: http://www.articlesnatch.com
I'll be telling you about 15 characteristics of a very successful trader.
Trading in stock isn't everyone s cup of tea. Some people can do it and some can't. Even among the some who can, not everybody can be successful at it. While there are no hard and fast rules on what makes or doesn't make a successful stock trader, those Wall street Wizards that you hear about who made the most in the least amount of time, all appear to have certain characteristics in common.
1. Successful stock traders are able to go against their natural instincts.
2. Successful traders have a simple system. No matter which technique you use as long as you stick to it. A Successful trader knows their technique and makes trades based ONLY on their system. "The secret to being a winner is consistency of purpose". You want to improve a separate strategy for getting into a position and for exiting one.
3. Successful traders are risk Adverse. Successful traders don't like losing money and prohibit themselves before losing too much, even if it means admitting they made a mistake.
4. Successful traders are willing to make mistakes. Successful traders have the right and ability, not to do the right thing, but to do the wrong thing. It's the ability to make your own mistakes.
5. Successful traders don't care about being embarrassed by taking a loss. Successful traders expect to take losses and know when to cut them.
6. Successful traders know, or learn how to explore stocks. Many traders only use precise analysis, but you may want to learn to use fundamental analysis as well.
7. Successful traders lead balanced lives. We all know the pleasure of the pursuit and the stock market can be addicting, a successful trader is one who knows when to move away and can.
8. A successful trader is Patient. A successful trader let s winning positions run, but is able to back out when proven wrong. Patience can mean resilience, courage, and conviction for when markets go against you.
9. A successful trader has a biting Desire to succeed. Triumph takes steady work not a chaotic effort, a biting desire to succeed can make all the difference in educating yourself about what you want to know and sticking to your strategy when the going gets rough.
10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he isn't in the mood. Discipline also means Sticking to your strategy, not abruptly buying or selling on a whim, or because of a" hot tip"
11. A successful trader knows the difference between defensive and offensive behaviour, and when to use each. - protect your money first, profit later.
12. Successful traders don't eavesdrop on rumours or get emotionally involved. To be a successful trader you have to be very hard on yourself. Your have to be able to resist the urge to prove you are right and be ready to make mistakes. . You also want to be able to not let emotions affect your decisions. Setting up stop loss points for every decision you make is something that you are going to have to do. That will mean more than occasionally admitting that you are wrong. You and your portfolio will survive and you will be able to get back into the position again when trends signify that the time is right. You will have to learn to disregard any emotional ties you have to your stock and make quick stock trends your master. You will miss the lowest entry points and the top selling points, but you will be able to sleep at night. You will need to learn to get out of a stock position before your profits turn into losses.
13. A successful trader knows themselves. Successful traders must be attentive of their strengths and weaknesses. Your strengths and weakness will become very important. Play on your strengths when you can.
14. A successful trader knows their investments. Your investments are almost as important as you are. Know the past history of the stock and their strengths and weaknesses as well.
15. A successful trader sticks to the rules. The system is there for a reason. Nothing can ruin a successful stock buyer as quickly, or as certainly as flouting the rules.
Get to know these 15 characteristics and you are on your way to becoming a successful trader.
P. Johnson is an Investment Specialist. For more of his articles visit http://www.fish4articles.com
Article Source: http://www.articlesnatch.com
Are you searching for a successful stock broker? A confident stock broker will be able to help you to meet your investment goals and it is worth takin
How to Search for a Successful Stock Broker by Ayna Miah
You must be cautious and exercise due diligence, while selecting a share broker. Remember that you are the customer and apart from making the decisions, you need to keep checking on the activities of your stockbroker.
Don`t let an online broker pressurize you or influence you to make stock investments you are not comfortable with. Build up a relationship based on trust with a successful stockbroker and you will be on the right path to creating wealth on the stock market.
Find a stock broker who meets your requirements
You don`t have to be an expert with a degree in economics or business management to invest in the stock market. All you need is the advice of an experienced financial broker whom you can trust to do your stock investing.
Different types of services are required by stock investors, to meet their needs and basically, stock brokers offer three different levels of service. You can deal with a finance broker who will only execute your orders to buy or sell shares. You can take the advice of a different stock analyst or financial advisor and make your own decisions about which shares you want to buy or sell.
You can also ask a trading broker to give you expert advice and recommendations based on your goals, risk-taking capacity and financial resources. Ask the finance broker to explain recommendations clearly, so you can make good stock investment decisions.
Brokers also offer services that allow them the discretion to make the decisions to buy or sell stock shares on your behalf. They must contact stock investors regularly and keep them informed about the status and value of their investment portfolio.
The best stock broker for you
As a stock investor you need to think about your investment philosophy and level of knowledge about the stock market. Based on this, you can select a stock broker who will provide the appropriate level of support and advice.
Talk to several brokers and make a stock broker comparison, before you make a decision. Be candid about the amount of money you want to invest. Inform the brokers about the type of services you require and see if they are capable of meeting your requirements.
Ensure that stocks brokers have the necessary licenses and certifications, before you start dealing them. Ask them about their approach to investing and their procedure for making decisions. Ask them if they dealing in the products or services of any company, in which they have a stake.
Ask your relatives, friends or co-workers about their experiences of dealing with the investment broker. Visit the brokerer`s office personally and draw your own conclusions, before you make the final decision.
Ayna Miah knows the stock brokerage industry secrets both inside and out. Now he wants to share his profitable knowledge with you.Discover the Insider Tips, Techniques and Secrets That Will Turn You Into a Successful Stock Broker and Even If You Have No Experience Whatsoever. www.aboutstockbrokers.com/blog
Article Source: http://www.articlesnatch.com
You must be cautious and exercise due diligence, while selecting a share broker. Remember that you are the customer and apart from making the decisions, you need to keep checking on the activities of your stockbroker.
Don`t let an online broker pressurize you or influence you to make stock investments you are not comfortable with. Build up a relationship based on trust with a successful stockbroker and you will be on the right path to creating wealth on the stock market.
Find a stock broker who meets your requirements
You don`t have to be an expert with a degree in economics or business management to invest in the stock market. All you need is the advice of an experienced financial broker whom you can trust to do your stock investing.
Different types of services are required by stock investors, to meet their needs and basically, stock brokers offer three different levels of service. You can deal with a finance broker who will only execute your orders to buy or sell shares. You can take the advice of a different stock analyst or financial advisor and make your own decisions about which shares you want to buy or sell.
You can also ask a trading broker to give you expert advice and recommendations based on your goals, risk-taking capacity and financial resources. Ask the finance broker to explain recommendations clearly, so you can make good stock investment decisions.
Brokers also offer services that allow them the discretion to make the decisions to buy or sell stock shares on your behalf. They must contact stock investors regularly and keep them informed about the status and value of their investment portfolio.
The best stock broker for you
As a stock investor you need to think about your investment philosophy and level of knowledge about the stock market. Based on this, you can select a stock broker who will provide the appropriate level of support and advice.
Talk to several brokers and make a stock broker comparison, before you make a decision. Be candid about the amount of money you want to invest. Inform the brokers about the type of services you require and see if they are capable of meeting your requirements.
Ensure that stocks brokers have the necessary licenses and certifications, before you start dealing them. Ask them about their approach to investing and their procedure for making decisions. Ask them if they dealing in the products or services of any company, in which they have a stake.
Ask your relatives, friends or co-workers about their experiences of dealing with the investment broker. Visit the brokerer`s office personally and draw your own conclusions, before you make the final decision.
Ayna Miah knows the stock brokerage industry secrets both inside and out. Now he wants to share his profitable knowledge with you.Discover the Insider Tips, Techniques and Secrets That Will Turn You Into a Successful Stock Broker and Even If You Have No Experience Whatsoever. www.aboutstockbrokers.com/blog
Article Source: http://www.articlesnatch.com
Sunday, November 23, 2008
Prevision for 2009
The online trading are becoming more numerous. It is estimated that 2009 revenues related to stock investment go up so fast
Saturday, November 22, 2008
Tuesday, November 18, 2008
Monday, November 17, 2008
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