Tuesday, November 1, 2011

Been a while since I post here. In the mean time I'm just slowly trading. Most of the time, I'm on weekly trades but sometimes I just need to scan and trade within a short time. If you need to make a quick trade, I suggest you keep on reading.Most of the time I trade the 4 hour charts or weekly charts. These trades could last for weeks sometimes even months. I do however trade those short term trade from time to time. Rules is simple. Buy when the price is going up and sell when its going down. Only 1 rule, I dont think its too hard to follow.

From the chart we can see EG price is below 0.86. The idea is to trade long but I dont want to become a zombie and wait for it to go up. Put a buy order at 0.8600 with TP at 0.8700. If the price goes up it will hit the buy order and hopefully will continue to rise up. You may asked, why buy when the price is in general going down. The answer is the last 2 step is a price increase. I don't know why but mostly forex starts with number 2. It need 2 spike up and 2 new high price to be consider a trade. If the price continue to go down it wont hit the buy order. Best of luck.

After twice hitting 0.8640 and never made it above price have now fallen below MA55. All post exit. This trade plan isnt working. This thing is going down.

Use the Power of Autosuggestion in the Stock Market

Tuesday, June 28, 2011

Self-Confidence is an essential starting point for any business venture. This is true even more if the business is trading in the stock market because psychology plays such a major role. Keep reading, this might change your life!

About 10 years ago, I received a copy of the book "Think and Grow Rich!" written by Napoleon Hill. Today, I credit most of my success in business (including trading) to this book.

At first applying some of the principles described in this book appears a bit crazy - for example reading a Self-Confidence formula and a Definite Plan aloud every day. But you really have to look at it with an opened mind and believe me (and many peoples who have made millions) this stuff works:

Here is a brief overview (you really need to get the book):

- First - you must have a burning desire - for a trader this desire should be "to become a consistent winner in the stock market".

- Second - you have to have a definite goal including the amount you want to make and the date by which you want this money to be in your account.

- Third - You need a definite plan, or what you will do in exchange for this money.

Here is an example of a plan - it is generic enough to be applied to most trading styles. Items specific to your style should be added. Your plan should be read aloud first thing in the morning and right before going to bed.

By December 31st 2006, I will make $200,000 dollars with my trading. In return for this money I will do the following:

- I will follow a trading plan to guide my trading - therefore my job will be one of patience and discipline

- I will plan each trade carefully - I will not jump into trades by fear of missing out

- I will monitor the market's current picture

- I will monitor the current picture for each industry

- I will manage my trades to protect my capital and my profits

- I will protect my capital through good money management

- I will take responsibility for all my actions.

- I will trade to trade well and for the love of trading, not to trade often and not for the money. The money will come as a result of trading well.

- I will not be influenced by the opinions of others. I will reach my own decisions and follow them.

- I will build the self-trust necessary to operate in an unlimited environment which has no rules.

- I will be rigid in my rules and flexible in my expectations.

-I will never think that taking money from the market is easy and I will never assume that I know enough.

-I will have no particular expectation when I place a trade because I know that anything can happen.

-I will treat trading as a probability game in which I don't need to know what is going to happen next in order to make money. All I need to know

is that the odds are in my favor before I put a trade

- I believe that I deserve this money. I believe that I will have this money in my possession. My faith is so strong that I can now see this money before my eyes. I can touch it with my hands. It is now awaiting transfer into my account. I am awaiting a plan by which to accumulate this money, and I will follow that plan when it is received.

Read (and reread) this book and apply its principles to your life - and notice the difference in your Self-Confidence.

Trading the Wrong Market

Monday, June 27, 2011

If you know the pitfalls of trad¬ing, you can easily avoid them. Small mistakes are inevitable, such as entering the wrong stock symbol or incorrectly setting a buy level. But these are forgivable, and, with luck, even profitable. What you have to avoid, however, are the mistakes due to bad judgment rather than simple errors. These are the “deadly” mistakes which ruin entire trading careers instead of just one or two trades. To avoid these pitfalls, you have to watch yourself closely and stay diligent.

Think of trading mistakes like driving a car on icy roads: if you know that driving on ice is dangerous, you can avoid traveling in a sleet storm. But if you don’t know about the dangers of ice, you might drive as if there were no threat, only realizing your mistake once you’re already off the road.

Too many traders are fixed on only one market. They may trade only the forex USD/EUR, or the E-mini Russell, or the E-mini DOW, or just cer¬tain stocks, etc. While they may feel a certain sense of expertise or mastery over this one market, no one, no matter how experienced they are, can predict what will happen all the time. These people are setting themselves up for catastrophe, because there will inevitably come a time when they’ll make a mistake. And, with no diversity in their trades, they will lose everything they’ve worked so hard to gain.

The key to choosing a market isn’t to look for one you seem to understand better than the others. That will always be something of an illusion. But there is one market you can always depend on: the one that is moving. You know you should buy when the market goes up and sell when the market goes down. A moving market will always be profitable, even if you’ve never traded a single share there before.

Pay close attention to trendlines, both in the markets where you’re already trading and the markets you’re considering. If one of your markets is consistently choppy or just moving sideways, get out of it and move on to another. If you think of successful trading as sticking not with a market but with a trend, no matter which market it’s in, then you’re thinking successfully.

The key, of course, is that you have to keep an eye on markets where you aren’t currently trading. Keeping up with your options is just as important as watching what you’re familiar with. This is where research and experience come into play. Getting to know a number of markets (and how to find out about them) takes time. But don’t let that discourage you. Also, don’t feel like you have to understand every option at the very beginning. Pick a few different markets to actually trade in, but also choose a few just to watch. That way, you’ll see how your own trades work, and you can also compare that activity to markets you may not know much about (yet).

The only way to learn about which markets are right and wrong for you is to watch them. Watching a variety of markets will give you the knowledge you’ll need to use when it’s time to change gears and find that elusive moving trend.

Trading Using Multiple Time Frames

Sunday, June 26, 2011

Why do we need to Trade Using Multiple Timeframes?

To improve the efficiency of our trading strategy. We see the major Trend using a higher time frame than what we intend to use & a lower Time frame to enter a trade.

Say we want to trade using the Daily Charts. We take the Weekly charts to see the major trend. Suppose it’s an uptrend in a Weekly chart. We will tend to trade only long positions. We will use entries in the daily charts to enter long positions only. When sell signals are generated we will just exit our long positions. I.e. we don’t short sell.

Suppose it’s a downtrend in a Weekly chart. We will tend to trade only short positions. We will use a entries in the daily charts to enter short positions only. When buy signals are generated we will just exit our short positions. I.e. we don’t enter long positions.

Now that we are using two timeframes. Now coming to timing the entry of trades or adding additional positions. (Pyramiding) We can further use a Hourly chart to time our entries. Supposethe weekly & daily charts are in a uptrend. We will enter a long position or an additional long position when a hourly chart gives us a buy signal. Supposethe weekly & daily charts are in a downtrend. We will enter a short position or an additional short position when a hourly chart gives us a sell signal. This timeframe would not be used to exit the trades. It’s solely to improve the timing for entry. For exits we would use the signals generated in the daily charts.

Using multiple time frames to trade

We take three charts of the same security. First is the weekly chart. Next chart is the daily chart. Third chart is the hourly chart.

We will now use the daily chart to trade. We check the weekly chart for the weekly trend. Lest assume the weekly trend is up. So based on this information we will just trade long positions in the daily chart.

We look for a buy opportunity in the daily chart or we can see the hourly chart to enter a long position.

Now for entering additional positions we use buy opportunities in the hourly chart. We would exit based on the daily chart only, because we were trading based on the daily chart.

Similarly we can trade short where weekly charts are in a downtrend and daily chart generates sell opportunity. Additional positions are entered whenever sell opportunities are generated on the hourly charts.

For Day trading we can use the Hourly, 15 Min and 5 Min charts here we trade the 15 Minchart. Or we can use 15 Min, 5 Mins and 3 Mins charts here we trade the 5 Mins chart.

Good Luck and Happy Trading.

Trading Systems for Metastock

Saturday, June 25, 2011

Trading systems for Metastock usually use indicators and oscillators known from the technical analysis. Apart form simple systems which are based on one or two indicators, there are also many complex platforms that are able to adapt themselves to the current market conditions. They recognize whether there is a trend or consolidation and choose the most suitable strategy.

Metastock trading systems enable testing your individual trading ideas based on historical data which makes it easier to take decisions on their future use. Although creating and testing the Metastock trading systems is usually time-consuming and requires considerable expertise, it brings profits in the long term. To earn high profits you should combine particular tools of technical analysis into one coherent and logic integrity. While building a Metastock trading system you need to make sure it is logic and coherent, not only thinking of the possible profits it could bring you based on historic data. First of all you should define the operating conditions of the system, when it should be unbeaten and when it might fail. This will let you check if the eventual losses result from the error in the strategy itself or it is due to particular market conditions.

When the system is built randomly with accidental indicators and oscillators selection, it often generates profits only in the case of the historical data but in the real market conditions it brings losses. The parameters of trading systems are usually being matched to the historical data by optimization. It consists of choosing such indicators that would bring the highest profit in the testing period. Different values of parameters are checked for each indicator or oscillator and then the possible profit that would have been reported is being calculated. The next step includes combining the outcomes and choosing the most profitable parameters. There is a risk of over-optimizing the system. That means that the values of tested indicators failed to match the historical data without logic and cohesion of the strategy.

After understanding the general idea of the trading system and defining the rules of entering and exiting the market there comes a testing process. Thanks to the programs such as Metastock or TradeStation it is possible to make thousands of tests in order to choose the best parameters of the indicators. It is possible if you follow several rules. In both of them setting the value of indicators lies at the end. They are usually connected with generally accepted value or with the ones selected in the optimization process. Both ways have their own advantages and disadvantages but none of them should be rejected beforehand. The selection of the parameters for indicators should be considered according to the philosophy of the entire system and its tools. At the same time however, taking into account the accepted assumptions, the decision about their precise value shall proceed to a larger extent by optimization.

The second most important issue, apart from optimizing parameters of the metastock trading system, is evaluating its efficiency. In order to do it you can use various statistics such as the proportion of the profitable transactions to the lost ones, comparison of the average transaction profit to the highest loss or average profit of profitable transaction to the transaction at a loss. Safety of the system is also defined by a proportion of total profit from all transactions to total loses from all transactions. The analysis of the capital curve is also a useful tool. It brings a lot of precious advice. Thanks to the capital curve you can easily find out whether the profit, which the system brings you, has risen evenly or it was the result of the one very profitable transaction. You will also know how often and how strong the changes of the capital are etc. By comparing the capital curve with the quotation, you can easily notice the moments when the system fails or define whether the system is better during strong trends or during horizontal movements.

Evaluation of the Metastock trading system efficiency is not a simple task. At the beginning you can get the wrong impression that the best system is the one that brings the highest profit. But the truth is much more complicated. Although in a final reckoning the rate of return from invested capital is always important, you should remember that system is tested based on historical data which usually are matched to the value of parameters. It means that a good result which was achieved in the last year doesn’t necessarily have to be repeated in the next period. That is why first of all we should take into account the safety of the system and as the second thing its profitability.

Trading Stocks Online - What Works

Friday, June 24, 2011

Imagine you are trying to do car repairs, and the only tool you have is a hammer. Sure, you’ll be able to get some jobs done, but they won’t be done properly and you’ll most likely break something else in the process. Trading stocks online is much like that. There are many ways to trade, but only some of them truly work. Sometimes, investors end up losing money because they didn’t take the time to find the proper investment method or tool. Here are some tips that can help you to trade successfully.

If you want to reduce the risk that comes with holding an investment, you will want to look into the practice known as hedging. One of the best ways to hedge your investments is to take any shares you have in a company and sell them to the company’s opposition.

For stability, you will want to look to investing a pre-arranged amount of money each month into one or more mutual funds. Mutual funds are composed of shares from approximately 10 companies, and often focus on a specific area of the market, such as energy, paper, or currency. Although there is still a risk that you can lose money through your mutual funds, they are much more stable and have a much higher chance of recovery, based on the fact that they center on stocks from more than one company. Be patient if the market takes a downturn; don’t sell your funds or stock immediately. History has shown that if a market goes down, it will also go up.

Another online trading tactic is to look at the stock market and find good, stable companies whose stock has taken a downturn. The way to find them is to look for ones that have dividend yields. Pick several of these companies and invest equal amounts of money in buying stocks from each of them. Although there is risk involved with this method, the history and stability of these companies is often enough to pull them through the slump they may be experiencing. And when their stocks begin to rise in value, you will benefit from this wise trading investment.

Way to Lasting Success in Trading

Thursday, June 23, 2011

Why is it that some people are successful in trading the markets? And why is it some people fail? Is it luck that determines if you are successful or not in making money from the market? Is it the system or strategy that a person use which determines their success?

A lot would say that it is the system or strategy that they employ which ultimately determines if they come out winning from the market.

Every system that exists on the internet will show you how to make money using it. Without a doubt, it will make money for you. The question is usually how much money will the system make for you. All the system that out there will show to you how their system has work base on historical data or activity and then at the bottom of the page there would be a disclaimer clause that states ‘.. Historical data does not determine or guarantee future earnings....’

So why is it that these sites or page include this disclaimer clause?

The disclaimer clause is incorporated in it because they know that there are certain elements which they can not control. Human emotions.

Human emotions are always the key to either success or failure in any business. And it is no difference when trading the markets. Read all the books about trading that you want, buy all the successful system that you want. If you can’t control your emotions, you can’t succeed in the markets.

That’s the reason for the disclaimers clause because the one thing that the author can not control is their subscribers or customers emotions.

In the market there are but only two main emotions that every trader will experience; GREED and FEAR. When this emotion appears it is not how we eliminate it but rather how we act on it. There are natural emotions that can not be eliminated. This emotions forces us to action, thus how we act on it will determine the outcome.

Like anger, when we are angry at someone, it’s either we say something nasty or we can just kick a bucket or we can just dive into a pool of water. Which ever action that we take, it produces a different outcome or result.

All too often when we begin to see two to three consecutive loses on our trading activities, we would begin to have doubt. When this happens we are already at the state of fear, we fear losing more of our money and thus begin to doubt that the system is working.

While no system is absolute, meaning no system will guarantee that you will make money ALL the time. The system seller would say that we would be able to make money consistently, provided we follow their system to the dot.

On the other hand, when we begin to see two or three consecutive we begin to feel on top of the world. We begin to feel that we can start making good money from the market and then start tweaking the system or maybe putting more money in the market to leverage our earnings or maybe begin to take on more positions, which ultimately make us deviate from the system which we were using. This is when greed has already stepped in to rule our thoughts.

There is saying ‘The system is only as good as the person using it’. So if we don’t follow the system either with we are making loses or when we are creating profits. We would ultimately fail. And to follow the system requires discipline. The discipline to act on our fear and greed when it sets in, will determine how well we do in the market.

Once again discipline is the key. We must have the discipline to say ‘I have reached my target. I should take profits now even though it may go higher’ when greed sets in. And when fear sets in one should say ‘I have to take a position even though the market does not seem to be moving in my favor’

While these are but two circumstances when greed and fears arises, there are, and will be many instances when we need to make a decision to either enter or exit the market. And these are very two most important decisions to take in order to succeed in the markets. The discipline to follow the system diligently no matter what happens to the market

So no matter how good the system is, the only and sure way is to lasting success in the market depend on the discipline to overcome our personal emotional to follow a particular system religiously.

What They Have In Common

Wednesday, June 22, 2011

We often hear that 95% of people who try trading for a living fail within the first year. These are not very good odds and it is natural for new traders to wonder if they have what it takes. In this issue, I give you a list of 20 characteristics I believe could be found in most winners. I also included some Truths about trading.

The methods employed by winning traders are extraordinarily diverse. Despite the broad spectrum of traders, certain characteristics are found in most winning traders (in no specific order):

- Winners have a trading plan with a strategy that incorporates effective money management. They have the discipline to execute their plan relatively flawlessly and the self esteem to accept the money the market gives them.

- They use their head and stay calm – they don’t get excited or depressed because of their trades. They don’t act on emotions. They can handle success and failure without self-destructing.

- They don’t trade to feel good or to get high.

- They handle trading as a serious intellectual pursuit.

- They always protect their capital because they know they cannot trade without it. This means that they don’t get caught up in the thrill of the moment, the excitement of a running stock – they don’t jump into careless trades.

- They love trading, trading is a passion and they spend a large portion of their time trading and learning about trading.

- They know that sometimes the best thing to do is to do nothing (sit on their hands). They do nothing unless there is something to do.

- They don’t pay attention to other people’s opinions, they make their own.

- They don’t try to guess the future - they know it is a game of probabilities. They understand that they will always have a percentage of losing trades but they keep the losses for those trades small. They don’t hesitate to get rid of a position when the loss is still small.

- They have a great respect for the markets and they never think taking money from it is easy.

- They behave like professionals. They take full responsibility for their actions and don’t look for something or someone to blame. Instead they use their losses as an opportunity to improve their plan.

- They trade to trade well, not for the money.

- While they are in a play, they don’t count how much money they have made or lost because they know this would influence their judgment. They focus on trading well.

- Amateurs keep thinking what trades to get into, while professionals spend just as much time figuring out their exits.

- When they have a winning position, they don’t let their emotions dictate when to close the position, which would result in small gains. They know emotions cannot be part of the decisions.

- When they enter a play, they don’t have any expectation. They understand it can go either way and that nobody can know the future.

- They have confidence in their plan, patience, and discipline.

- They are not afraid because they have developed attitudes that prevent them from getting reckless.

- They have self-monitoring skills and can continuously monitor their performance in order to improve it.

Some Truths about Trading

- The market is a huge crowd of people. Each member of the crowd tries to take money away from other members by outsmarting them. Everyone, including some of the brightest minds in the world, is against me and I am against everyone. It’s every man for himself. The money I want to make belongs to other people who have no intention of giving it to me.

- The market is like an ocean, it moves up and down regardless of what I want. The market does not know I exist and I cannot influence it. I cannot control the market any more than a sailor can control the ocean, but I can control my own behavior.

- Trading is all about management – managing myself, my money, my attitude, and my positions. It is not about predictions, forecasts or opinions.

- There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. No man can always have adequate reasons for buying or selling stocks daily or sufficient knowledge to make his play an intelligent play (Jesse Livermore).

- Trading without imagination is like painting by numbers – and is about as rewarding(William R. Gallacher).

- The market is not going to reward anyone for observing the obvious.

- A mistake made by many traders is that they become so involved in trying to catch the minor market swings (generating lots of commissions in the process) that they miss the major price moves.

- Advisors are only wrong when you get too many of them start thinking the same thing.

- A strategy to enter and exit trades will not help you unless you are both disciplined and organized.

Winning Stocks Always Leave "Foot Prints"

Tuesday, June 21, 2011

SIX STEPS and the IRREFUTABLE LAWS of the MARKET Every Investor and Trader MUST KNOW to Succeed

Step 1:

A move begins with the sponsors (smart traders) who have insider knowledge as it relates to a particular stock or market. This information will move a market up or down depending on the insiders' information. These buyers are smart, very smart, and recognize trading/investment opportunities very early in the markup cycle.

Step 2:

Days, weeks, or sometimes months after a move has started, there is a brief mention in the electronic media (radio, cable, TV) or on one of the internet chat boards that a market has moved. The public hears for the first time and begins to get interested, but does not buy.

Step 3:

A blurb of information appears in print media. The move also begins getting more exposure on blogs and internet message boards. The public starts paying a little more attention, and will buy a little bit.

Step 4:

Wall Street and LaSalle Street brokers go into full hype mode and hawk the market to their customers. The public begins buying in greater volume.

Step 5:

A full-blown front-page article appears about the particular stock or market in one of the major financial newspapers, magazines, or financial websites. This is often six months after the fact and after a market has shown its greatest appreciation. There is often heavy public buying, even a possible frenzy, as all media, brokers, and so-called "gurus" start to tout the market.

Step 6:

As step 5 gets underway, the sponsors or smart traders begin to move out of the market and take their profits off the table.

The finale: The move ends, the market falls, and investors lose money.

Why Learn to Trade Stocks?

Monday, June 20, 2011

Stock trading has numerous benefits as a viable part time occupation.

In contrast to a second job, there are no special qualifications to begin. The stock market doesn’t care about your level of success, education, ethnic origin or any personal characteristics. Complex employers, office politics or difficult employees do not play a part in trading. Additionally you have the freedom to trade from any location. If you follow a few simple rules you can run your business on your own terms.

The most important factor is to be clear about why you want to trade stocks. What do you hope to gain financially from learning to trade?

Are you looking to:

1. Create an enhanced lifestyle with supplemental income?

2. Replace a full time income with a passive income stream?

3. Become independently wealthy by creating a financial base independent of other income sources?

What would being a successful trader mean you? Imagine yourself making successful trades and gaining financially. Think about what it would feel like to have extra money in your bank account and to achieve your targets. With a clear picture of what you want and how that would feel you will be able to remain focused and motivated.

Your first task.

Your first task is to put one primary goal for your trading plan in writing. Additional goals you set can then support your primary plan.

Know Yourself

As well as learning to trade stocks it is essential that you understand yow you react under stress. Being aware of your own behaviour patterns and common causes of and reactions to stress when trading will help you to master stock trading.

The reason that many people lose money in the stock market is because they lack the proper knowledge base. Independent of trading styles there is one thing common to all successful traders; the use of a tested and proven system.

In learing to trade you must be willing to let go of pre-formulated ideas and start fresh, develop new successful habits, and the discipline necessary to trade successfully over time.

Are you willing to do this?

Successful stock market trading eludes many people because they don’t have contact with an experienced, successful trader or trading system that actually works. Going it alone can be potentially expensive when learning by trial and error. Investing in a solid education and taking advantage of the insights and experience of successful trader makes a lot of sense when learning to trade successfully.

Why Land Beats Stocks And Shares

Sunday, June 19, 2011

As small investors look for ways to ensure a good return on their money, land sales are increasing in popularity. Profits, whilst not guaranteed, are often better than those from the stock market, for several reasons:

Less risk, more profit

Whilst some investors have a significant investment in the stock market, often with a comprehensive, well-managed portfolio, for most smaller investors, their experience of the market is limited to one or two companies and they are therefore more open to stock market fluctuations and risks. Company share prices can be affected by many external factors, often beyond the company’s control and, unless you are watching the market carefully day by day, you usually have to hold onto your shares for many years in order to turn a good profit.

By contrast, if you select the right land, or take the advice of a reliable land agent, you can realise potentially fantastic profits in a much shorter space of time. This is because the land that’s normally made available to smaller investors has been carefully chosen. Big land investors buy and then bank land that they think will be ear-marked for development in the future, and then either hold onto it, or parcel it up and sell it to private investors, who reap the benefits if planning permission is granted at a later date.

No maintenance required

Once you’ve bought your piece of land, you own it outright and can sell it whenever you choose. You don’t need to maintain it as you would a property and you don’t need to follow its fortunes day in, day out, to find out whether you’re making any money. If you need to raise money, you can sell your land quickly, whereas if your shares are at a low price, you won’t be able to make enough cash.

The best of both worlds

If you have thought of investing in land, but don’t want to get out of the stock market completely, then just broaden your portfolio by reducing your shareholdings and investing in land as well. You get the best of both worlds, and the chance to make a very health profit if you choose the land wisely.


Sunday, June 12, 2011

People say trading is hard and I agree. Its hard because we dont have the answer. There is no spoon. There is no answer. What we have is our mind and our eyes. I havent heard of any blind traders yet.

In order to be profitable in forex you must train your mind. It seems the more indicators you use the harder it is to trade. Keep it simple and remember the principal of trading. BUY WHEN THE PRICE IS GOING UP AND SELL WHEN THE PRICE IS GOING DOWN.

Can anyone tell me when the price is going up or down in this chart???

What Makes A Successful Stock Trader?

Friday, June 10, 2011

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 weaknes ses 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.

Wealth Is Made By Focusing In Stocks

Thursday, June 9, 2011


STOP trying to create the perfect trading system. There isn't one.

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this:

Money creation in the stock market is made from CONCENTRATION. That's right. Trading the very best stocks atthe right time with enough capital to make a big difference.

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on "investing" for the next 25+ years and building wealth slowly.. this is my plan of how you can make millions in the stock market:

In Darvas's book "How I Made $2 Million..."

How many looked at his position sizing? In his early trades Darvas only trade 1 or 2 stocks at any one time on MARGIN! Only when he got upto over $500,000 did he start diversifying a little. Most people overlook these facts.

MY Momentum Stock PLAN:




Start with:
$50,000 Trade 2 stocks with half capital in each.


When at $100,000 Trade 3 stocks with 1/3 capital in each.

Risk Per Trade = 3%

When at:

$500,000 Trade 5 stocks with 1/5 capital:

Risk Per Trade = 2%

When at $2 Million Trade 8 stocks with 1/8 capital:

Risk Per Trade = 1.25%

You first have to create wealth in order to maintain it. Whilst trading only two stocks at a time may be deemed to “risky” by the “professionals” you must be very selective on the stocks you trade. Quality beats quantity. Especially when you concentrate so much.

This is the only way a small account can break into the big time. You must not only focus your efforts in the early stages but you must also onlytrade the top 0.1% of stocks in the marketand get yourtiming SPOT ON.

Want to Trade Stocks? Get Your Free Stock Quote First

Wednesday, June 8, 2011

Free stock quotes are valuable for looking at your investments and determining whether or not you want to trade in the stock market. There are several free stock quotes online and one of the most popular is Yahoo Finance. This site will allow you to search your stocks to see the growth or decline and determine if you want to buy or sell. Free stock quotes are ideal for the novice investor. They can practice their skills without investing any money until they are comfortable enough to actually invest. Once you decide to invest, though, you will need to get with a broker and there are additional fees associated with trading. However, there are many do it yourself places that only require a small fee and will often have valuable articles and free stock quotes so you can watch your portfolio continually to ensure you have made sound investments.

Before investing in the stock market, you should be aware of the basics of stock trading. This can be learned by doing some research online or by getting a book at your local library. Once you know the basics, you can start looking for individual investments. It is recommended that the novice investor start off with only the amount of money they can afford to lose. There are no guarantees you will earn money and sometimes you will lose it. So, it is important to carefully watch the stock market by looking at free stock quotes each day. You may want to buy or sell your stocks depending on how well the individual stock is doing and what forecasts are for the stock.

Free stock quotes are also great for classes in finance or the stock market. This is ideal for investor clubs, high school classes or college projects. You can either use mock money to track an investment from start to finish without actually putting in money or you can use pooled money to determine which investment you will watch and what you will do with it. This is a great way to have a bit of fun with a group while learning about investments and possibly making a bit of money.

Vonage Shorts Out, Under Armour Has Lofty Ambitions

Tuesday, June 7, 2011

Under Armour, Inc. (UAI) debuted on November 18, 2005 at $31. The maker of branded performance clothing is growing its brand recognition via the use of hip brand promotion that is trying to wrestle away interest from the traditional buyers of Nike (NKE).

Under Armour has targeted the youth and athletic market where it competing with the established and strong Nike brand. Under Armour has a projected five-year annual earnings growth of 22.50% versus 14% for Nike. But on the valuation side, Under Armour is discounting in significant premium growth over that of Nike. Under Armour is trading at 46.19x its FY07 and a PEG of 2.75 versus 14.27x and a PEG of 1.06 for Nike. Clearly, Under Armour will need to perform to its lofty expectations going forward; otherwise, the stock will sell off. Nike is a superior value play.

Vonage Holdings Corp. (NYSE/VG) debuted on Wednesday at $17, the mid-point of its estimated IPO pricing range of $16-$18. The provider of Voice over Internet Protocol (VoIP) is an early entrant into the rapidly growing area of VoIP and presently has about 1.6 million subscribers but the company has yet to turn a profit. VoIP uses a broadband connection to make phone calls.

High advertising costs to acquire customers have hindered margins. Vonage is the current leader due to its early entry into the VoIP business but I see the company facing a difficult uphill climb as intense competition surfaces from major cable companies and the Skype service from eBay (EBAY).

The reality is Vonage has to spend extraordinary money on acquiring customers whereas for cable companies and eBay, there is already a significant customer base to market to. Vonage will soon realize this.

Hedge fund manager and the host of the hugely popular ‘Mad Money’ show on CNBC said Vonage is a “piece of junk,” which I have to concur with. And with Vonage currently trading down at $13, the market may also view Vonage as over hype and not enough substance.

Upside Potential With Convertible Bonds

Monday, June 6, 2011

Convertible bonds are bonds issued by corporations that are backed by the corporations' assets. In case of default, the bondholders have a legal claim on those assets. Convertible bonds are unique from other bonds or debt instruments because they give the holder of the bond the right, but not the obligation, to convert the bond into a predetermined number of shares of the issuing company. Therefore, the bonds combine the features of a bond with an "equity kicker" - if the stock price of the firm goes up the bondholder makes a lot of money (more than a traditional bondholder). If the stock price stays the same or declines, they receive interest payments and their principal payment, unlike the stock investor who lost money.

Why are convertible bonds worth considering? Convertible bonds have the potential for higher rates while providing investors with income on a regular basis. Consider the following: 1. Convertible bonds offer regular interest payments, like regular bonds.

2. Downturns in this investment category have not been as dramatic as in other investment categories.

3. If the bond's underlying stock does decline in value, the minimum value of your investment will be equal to the value of a high yield bond. In short, the downside risk is a lot less than investing in the common stock directly. However, investors who purchase after a significant price appreciation should realize that the bond is "trading-off-the-common" which means they are no longer valued like a bond but rather like a stock. Therefore, the price could fluctuate significantly. The value of the bond is derived from the value of the underlying stock, and thus a decline in the value of the stock will also cause the bond to decline in value until it hits a floor that is the value of a traditional bond without the conversion.

4. If the value of the underlying stock increases, bond investors can convert their bond holdings into stock and participate in the growth of the company.

During the past five years, convertible bonds have generated superior returns compared to more conservative bonds. Convertible bonds have generated higher returns because many companies have improved their financial performance and have their stocks appreciate in value.

Convertible bonds can play an important role in a well-diversified investment portfolio for both conservative and aggressive investors. Many mutual funds will invest a portion of their investments in convertible bonds, but no fund invests solely in convertible bonds. Investors who want to invest directly could consider a convertible bond from some of the largest companies in the world.

Understanding The Stock Market

Sunday, June 5, 2011

Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you. Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.

To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market and the money taken in from those becomes the company’s stocks.

There are several major stock exchanges in the world where shares are traded. Company’s stocks are increased and decreased each day.

One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a United States based stock market. It’s the world’s first electronic based stock market. It also trades more shares each day than any other stock market which means it has the most impact on stocks.

Another large stock market that is United States based is the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this is what they are referring to. Many stocks are introduced on the Dow.

Many other countries also have a great impact on stocks. In Europe almost each country has their own stock market this includes Portugal, Germany and Lisbon. The people living and working there follow invest in the stock market there and just like in North America the stocks rise and fall.

The people who handle the buying and trading are called stock brokers. Their job is to sell and trade the shares that their clients request. It’s a demanding and rewarding job being involved directly in stocks this way. Stock brokers can make a lucrative income and the ones that study the markets and understand all the ups and downs have a definite advantage.

For the everyday person to get involved in stocks they need to do a bit of research. It might be wise if a large amount of money is involved to talk to a stock broker. Their job is related to stocks and no one is better qualified to assist you.

Stock brokers are paid on commission and therefore their drive is to invest in shares that will ultimately turn a profit. Often a stock broker has extensive knowledge with just a few stocks and he concentrates on those. If you decide to invest in a share that a certain stock broker is very well versed in, it might be prudent to have him or her handle your dealings. They can offer the best advice as to when to buy and when to sell.

There are other avenues available for people interested in stocks and that’s the online stock trading companies. Many of these companies allow anyone to sign up and buy and trade their own shares. This can be a great way for someone to be introduced to the world of stocks and with some research and practice they can make themselves a profit.

Understanding Option Trading, Simply

Saturday, June 4, 2011

Option trading is one method of trading that you can partake in. But, in order to take advantage of it, you need to find out just what it is and how it works. This will help you to make decisions that will affect you throughout your trading experience. Here is some basic information about option trading to help you.

What Is An Option?

Your basic question of what an option is can be answered like this. It is a contract that allows two parties to come to an agreement that the buyer will have the right to buy or sell a parcel of the shares. It is set at a predetermined price and at a predetermined date. The buyer does not have to take the option though. He has the right but not the obligation to do so. To get this right, the buyer will provide a premium to the seller.

Call Options

There are two types of option trading that you need to know about. In a call option, the buyer has the right to buy underlying shares of a stock. It is set at a predetermined price and also a predetermined date. Again, the buyer has the right but not the obligation to do this.

Put Option

The second type of option is the put option in option trading. In this type of option, the taker has the same fundamentals but is selling underlying shares. He has the same set up of having the right to do so but not the obligation to do it. Also, the same standards of the predetermined price and date also apply. The buyer of a put option is required to deliver the underlying shares only if they exercise the option.

If you would like to learn more about option trading, you simply need to contact your financial advisor and find out how it can serve your needs.

When To Sell Penny Stocks

Friday, June 3, 2011

Penny Stocks can be a very effective way to provide you with a secondary income. They can be used to create passive income because they do not require you to be constantly watching over them. The problem that most people have when it comes to stocks is - not knowing the right time to sell.

Penny Stocks can rise very quickly but they can also fall quickly too. The reason that most investors hold onto a stock is because the fail to separate their emotions from their actions.

All of your penny stocks buying and selling should, of course, be based on sound research both of the market and the companies’ recent history. How the company is doing in terms of profitability, whether they are just about to, or have just announced profits, losses or new patents, discoveries and products, can all affect your decision on whether, or not, to buy.

Knowing the right time to sell your penny stocks however can sometimes seem, as much an art as a science, although getting it wrong can be fatal. Many people seem to put all their research efforts into knowing what penny stocks to buy and when to buy them.

Investors seem to forget about researching to sell stocks. Instead, they let their emotions take control and sell at the wrong time. Investors selling at the “wrong time” fall into two categories. These categories are, The Runners and The Sitters.

The Runners like to take profit way too early. They see their Penny Stocks rise a little and sell because they don’t want to “risk too much”. I’ve seen it time and time again; these people set out to earn a 25% Return on Investment and end up taking profit at 1%. Someone who takes profit twice at 25% earns a lot more than someone who takes profit twice at 1%. Usually, as soon as they sell a penny stock, it will rise even further and they’ll be wondering why they sold so early.

The Sitters are the heavily emotionally involved in their penny stocks. They are gamblers at heart and just do not want to let go of a losing position because “it could bounce back any day now”. When they do let go of their Penny Stocks - there is virtually nothing left. The sitters like to sit on a losing position. They like buying but dislike selling.

Do you want to be a Runner or a Sitter? Well, I hope you are neither. You want to be a winner. A winner will separate their emotions from their investment thinking and will also research when buying and also when selling. They will buy and they are not afraid of selling.

There is great deal of profit to be made from trading in Penny Stocks. But you have to know not only what to buy but also how long to keep it and when the best time to sell. The answer, as with most things in the world of finance, is good information and research. But that doesn’t end when you buy. Find out why your penny stocks are rising and this will put you in a much better position to know when to sell.

Which Would You Rather Do: Forex Or Daytrading?

Thursday, June 2, 2011

Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning.

Day Trading
Day Trading had its heyday during the bull market of the 1990's. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are fewer opportunities in the current market, but skilled investors can still find them if they know what to look for.

FOREX Trading
The Foreign Exchange Market (FOREX), the world's largest financial exchange market, originated in 1973. It has a daily turnover of currency worth more than $1.2 trillion dollars.

Unlike many other securities, FOREX does not trade on a fixed exchange rate; instead, currencies are traded primarily between central banks, commercial banks, various non-banking international corporations, hedge funds, personal investors and not to forget, speculators. Previously, smaller investors were excluded from FOREX due to the huge amount of deposit involved. This was changed in 1995, and now smaller investors can trade alongside the multi-nationals. As a result, the number of traders within the FOREX market has grown rapidly, and many FOREX courses are appearing to help individual traders increase their skills.

As a matter of fact, it's advisable to take FOREX training even before opening a trading account.
It is vital to know the market mechanics of FOREX, leveraging in FOREX, rollovers and the analysis of the FOREX market. Due to this fact, potential FOREX traders would do well to either enroll in a FOREX training courses or even purchase some books regarding FOREX trading.

There are pros and cons to enrolling into a FOREX course. For beginners a FOREX course is a rapid method of learning the basics of FOREX trading. Not much time is spent on history of the market or arcane economic theories. Often, on-line or phone support from a skilled FOREX trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.

The disadvantage is the price, as courses are more expensive than a paperback from the bookstore. Also,the course may just teach the approach of the trader who wrote it, and individuals have different trading strategies. The student may grow accustomed to the logic and focus of the teacher without coming to realise that nothing is predictable in the FOREX market, and many different strategies will bring profits in varying market circumstances. Also, knowledge of practical applications may not be enough, as the FOREX is highly unpredictable and there are many external factors, such as political issues, affecting the flow of finances in the market.

The best advice would be to do some background research on the FOREX market first, and then enroll in a course.

Why Buy Stocks on Margin?

Wednesday, June 1, 2011

Buying on margin means that you are buying your stocks with borrowed money.

If you are buying stocks outright, you pay $5,000 for 100 shares of a stock that costs $50 a share. They are yours. You've paid for them free and clear.

But when you buy on margin, you are borrowing the money to purchase the stock. For example, you don't have $5,000 for those 100 shares. A brokerage firm could lend you up to 50% of that in order to purchase the stock. All you need is $2,500 to buy the 100 shares of stock.

Most brokerage firms set a minimum amount of equity at $2,000. This means that you have to put in at least $2,000 for the purchase of stocks.

In return for the loan, you pay interest. The brokerage is making money on your loan. They will also hold your stock as the collateral against the loan. If you default, they will take the stock. They have very little risk in the deal.

One way to think of buying on margin is that it is often comparable to buying a home with a mortgage. You are taking out the loan in the hopes that the value will go up and you will make money. You are in control of twice the amount of shares. All you have to see is the additional profit exceed the interest you have paid the brokerage.

However, there are risks to buying stock on margin. The price of your stock could always go down. By law, the brokerage will not be allowed to let the value of the collateral (the price of your stock) go down below a certain percentage of the loan value. If the stock drops below that set amount, the brokerage will issue a margin call on your stock.

The margin call means that you will have to pay the brokerage the amount of money necessary to bring the brokerage firms risk down to the allowed level. If you don't have the money, your stock will be sold to pay off the loan. If there is any money left, you will be sent it. In most cases, there is little of your original investment remaining after the stock is sold.

Buying on margin could mean a huge return. But there is the risk that you could lose your original investment. As with any stock purchase there are risks, but when you are using borrowed money, the risk is increased.

Buying on margin is usually not a good idea for the beginner or normal, every day investor. It is something that sophisticated investors even have issues with. The risk can be high. Make sure that you understand all of the possible scenarios that could happen, good and bad.

A New Blog On A Long Lost Hobby

Saturday, May 21, 2011

Hello traders,

I hope you are doing well. I have setup a pool to find out how many people need forex training. I cannot guarantee success to any of you but with a little training you should be able to see what forex is and how it moves.

I would really like to ask for people to stop spamming this blog. I have lots of promotional comments which I deleted and will continue to delete in the future. So just dont do it.

I have also created a new blog on Remote Control Hobby. Used to play RC long time ago but stopped for a while. Now I am continuing this long lost hobby again. Do visit my RC Explorer blog. It will be like this blog but only a different topic. I do my logs on blogs.


Monday, February 7, 2011

Hi everyone,

I hope all of you are doing fine and have lots of pips to enjoy. Just got back from a vacation. 6 days there and I got bored and get back home. Leave my wife and kids there to do their shopping. It seems that I like it better at home than to stay at hotels. Maybe I'm getting old :)

Been a while since I have updated this blog. Been thinking of deleting or selling this blog to anyone who wants it.

Met a friend while on vacation. It seems he is making 15k average per month without even knowing how to trade. Talk about forex with peace of mind. You guys wanna know how he did it? Let me tell you his story.

He wanted to learn from me how to trade but I am reluctant to teach him since this is not something I can teach. I can tell you how I did it but I cant guarantee you can do it the same way I did. Its not pure technical or skill. There are some form of mind control involve. I cant change your mind. You have to do it your self. Free your mind.

He kept asking me how to make money in forex. I gave him a way that is a bit risky but with care everyone can do it. I told him to find a trader that is looking for investors. Lots of new traders around with good skills but low capital. These traders are looking for a way to maximize their income, so they take in few accounts to manage. They trade their own account and at the same time execute the exact same trade on their managed accounts. They take profit from their own account and take commission on manage accounts.

Turns out after 1 year my friend manage to get 15k average monthly income and he knows nothing bout trading. There are few rules to follow if you want to do the exact same way.

1. Study the trader records. At least 3 months maintain profit.
2. Open a trading account with your name tied to your banking account. (dont ever hand him your money)
3. Get the trader details just in case he decide to make a run for it.
4. Ready to accept trading losses. If its a trading loss, accept it and release him from his burden. Trading is already hard enuf. Now you know why I dont manage accounts.
5. Give him your trading account details and leave him alone.
6. Take him out for dinner at the end of the months. Dont ask, let him tell you bout the trading.

Hope that is clear enuf. Those steps are minimal. Extra precaution is always welcome but dont put pressure on the trader. We dont want to send him to a mental hospital or something.

Good luck everyone and happy trading. Im not going to give any trade setup since its all based on situation. If its there, then i trade. Ifs its not there, then I just watch and play with my RC helicopter. My new hobby is RC helicopter btw, a very expensive hobby.... oouch.

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