Tuesday
Monday
Trading your own money is best training
It typical times when we are not in a recession or depression, there is no special formula or way figure out the best time to buy. During a bull market the vast majority of stocks will trend upward over several months time. The idea is to find the stocks that will make the biggest gains if you do not just want to buy index funds.
Picking individual stocks is the way to make large amounts of money in the market. The 10% idea is not your goal if you want to make a living trading stocks or if you want to increase your wealth substantially over shorter periods of time. If you are going to be a trader you have to find the hottest stocks and ride them or you won't make enough of a return to survive.
You must get familiar with stocks and have your watch lists set up so you can see what they do everyday. If you are in a reasonable stable market you will gradually start to see the trends of how the best stocks move and just how quickly you can get a return on your investment. It is even a good idea to have a practice trading account so you can try to understand the trends of the market better. A lot of the stock market is all about momentum. Sometimes there is no reason for a stock to run higher and higher other than the fact that people keep on buying. There is nothing wrong with getting on that train for a while as long as you put your stop orders in to keep you from getting whip sawed.
The best education in stocks occurs when you have your own money on the line. So if you want to learn to trade you have to get an online account and put a few bucks in and start trading. Your practice account will teach you some thing but you will never get the same experience as when you have some of your own hard earned money on the line. If you are going to succeed you need to be able to handle the pressures of trading your own funds. Otherwise you should just be a broker and trade with other people's money and collect commissions.
Picking individual stocks is the way to make large amounts of money in the market. The 10% idea is not your goal if you want to make a living trading stocks or if you want to increase your wealth substantially over shorter periods of time. If you are going to be a trader you have to find the hottest stocks and ride them or you won't make enough of a return to survive.
You must get familiar with stocks and have your watch lists set up so you can see what they do everyday. If you are in a reasonable stable market you will gradually start to see the trends of how the best stocks move and just how quickly you can get a return on your investment. It is even a good idea to have a practice trading account so you can try to understand the trends of the market better. A lot of the stock market is all about momentum. Sometimes there is no reason for a stock to run higher and higher other than the fact that people keep on buying. There is nothing wrong with getting on that train for a while as long as you put your stop orders in to keep you from getting whip sawed.
The best education in stocks occurs when you have your own money on the line. So if you want to learn to trade you have to get an online account and put a few bucks in and start trading. Your practice account will teach you some thing but you will never get the same experience as when you have some of your own hard earned money on the line. If you are going to succeed you need to be able to handle the pressures of trading your own funds. Otherwise you should just be a broker and trade with other people's money and collect commissions.
Sunday
Thursday
The Importance of Open Interest When Trading Options | TradingMarkets.com
Here is a good article explaining what "open interest" means in the options trading vocabulary. It is a valuable tool to gauge just how much interest there is on a particular option on a particular stock. Check it out.
The Importance of Open Interest When Trading Options Trading Markets.com
More on the Financial Realities of today's market here.
Organize your business for the new year. It is so simple with this portable scanner.
Check it out here! THE FLIP PAL PORTABLE SCANNER
The Importance of Open Interest When Trading Options Trading Markets.com
More on the Financial Realities of today's market here.
Organize your business for the new year. It is so simple with this portable scanner.
Check it out here! THE FLIP PAL PORTABLE SCANNER
Wednesday
Options trading to lower cost basis.
Learning options can seem just like learning a foreign language. Options have their own vocabulary. The first time you hear options being discussed it a lot your first day in China if you don't know Chinese.
However, learning options and the logic that drives the options market and pricing be understood by just about anyone.
Options can be used to hedge your risk if you buy stocks.
Options can be bought in conjunction with the same stock to increase return.
Options can be sold against stock you own, giving you a premium for the sale and possible retain the profit and the stock if the underlying stock never reaches the strike price.
You can buy calls and sell calls of the same stock at different prices.
You can buy calls and buy puts of the same stock at the same price.
There are countless ways to use options for hedge risk or increase return. The first step is to learn the vocabulary of options trading. I will start go over this new language in the next post.
However, learning options and the logic that drives the options market and pricing be understood by just about anyone.
Options can be used to hedge your risk if you buy stocks.
Options can be bought in conjunction with the same stock to increase return.
Options can be sold against stock you own, giving you a premium for the sale and possible retain the profit and the stock if the underlying stock never reaches the strike price.
You can buy calls and sell calls of the same stock at different prices.
You can buy calls and buy puts of the same stock at the same price.
There are countless ways to use options for hedge risk or increase return. The first step is to learn the vocabulary of options trading. I will start go over this new language in the next post.
Sunday
Stock Trading in play book in Bear Market. Cash
It is extremely difficult to make money consistently during a bear market. However, I set out to educate myself and to learn all I could about trading and try to conquer the big bad bear. I had read a book on chart reading and technical investing writtn by the publisher of Investors Business Daily. It was full of great tips and insight that got my pumped up with confidence. After the weekend I set my plan into action certain that I would be making large gains. The first day didn't seem to work, then the second, third and fourth continue to post gains. I was applying my new found knowledge and even went back to read a few parts over to see what I was doing wrong. It was following the method to a T and went back the next week expecting to recoup the losses of the prior week. True to form the losses kept coming and I finally stopped out and started to think I guess this just isn't for me. I took a short break from educating myself and took a break from stocks. A short time later I went back and started on the charting book again to see how I could have missed the point or misunderstood the methods. I am sure you will all relate to some similar story in your own life. I looked toward the very end of the book and saw a chapter labeled as an appendix. I had never even thought about reading it because I assumed it was just another set of charts that expanded on what I had read. Most of the time I have seen these additions as minor changes or just more data that would have taken too many pages of a chapter. Well this was different. I could not believe my eyes. In large bold type on the first page it said
NONE OF THIS INFORMATION APPLIES IN A BEAR MARKET
followed by words of advice that staying in cash was the only really choice because the capital could eventually be put back to work making significant gains when the bull market returned.
I am not sure what I felt at that moment. At first relief that I hadn't misunderstood the message of the book and also like I just had gotten punched in the stomach by someone knowing that I threw a few thousand dollars out the window.
I guess the moral of the story is always read the afterword and appendix before jumping into action.
NONE OF THIS INFORMATION APPLIES IN A BEAR MARKET
followed by words of advice that staying in cash was the only really choice because the capital could eventually be put back to work making significant gains when the bull market returned.
I am not sure what I felt at that moment. At first relief that I hadn't misunderstood the message of the book and also like I just had gotten punched in the stomach by someone knowing that I threw a few thousand dollars out the window.
I guess the moral of the story is always read the afterword and appendix before jumping into action.
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