Using a trailing stop can save you a ton of money, but only if you use it right. If you keep adjusting it downward to keep from getting triggered out to avoid having your position closed, you are defeating the purpose of the trailing stop. Accept the fact that sometimes the trade just goes against you. Close your position and move on. If you think it is going to be a minor bump, don’t adjust your trailing stop, accept the close out and move on.
The purpose of a trailing stop is to close out the position to keep you from losing a large portion of your investment capital if the market moves against you. You need to set the stop immediately after you purchase the stock or option. As the value of your position increases, move the trailing stop upwards. Don’t set it too close or minor corrections will cause it to get triggered, but don’t keep so far away that you lose a lot of money when it finally does get triggered.
You need to spend a little time understanding the movement of the market you are getting into. Some stocks trade differently from others, you need to understand the typical trading range for the stock you are considering.
If you are going to trade the stock market, you should learn as much as you can.
Tuesday, May 22, 2007
Wednesday, May 16, 2007
Trading The Forex
Trading the Forex can be profitable, if you know what you are doing. If you don’t, it is an excellent way to separate your money from your account. When I was learning to trade the Forex, I made a ton of mistakes. What I needed was a mentor to help me learn the ropes. I though something had to be complicated in order to work and make money in the Forex market.
I was wrong. You don’t need a complicated system to be able to trade successfully. You don’t need to forecast the future to make money in the market. In fact, if you try to predict the future, you are almost certainly guaranteed to fail. To be successful, you just have to identify the trend, and jump on. It really is that simple.
I have subscribed to just about every newsletter, trading system, you name it, and I have tried it. The most important thing that I have learned is if you identify the trend early, and follow the trend, you will make money. When I was fighting the trend, I lost money, when I went with the trend, I made money.
It has taken me some time to learn to identify the trend. I have found this trend following system to be very profitable, and recommend it highly. If I would have had this system early in my trading career, I would have saved myself a lot of time, money and frustration.
I was wrong. You don’t need a complicated system to be able to trade successfully. You don’t need to forecast the future to make money in the market. In fact, if you try to predict the future, you are almost certainly guaranteed to fail. To be successful, you just have to identify the trend, and jump on. It really is that simple.
I have subscribed to just about every newsletter, trading system, you name it, and I have tried it. The most important thing that I have learned is if you identify the trend early, and follow the trend, you will make money. When I was fighting the trend, I lost money, when I went with the trend, I made money.
It has taken me some time to learn to identify the trend. I have found this trend following system to be very profitable, and recommend it highly. If I would have had this system early in my trading career, I would have saved myself a lot of time, money and frustration.
Finding The Perfect Trade
There is no such thing as a perfect trade. Accept it, they don’t exist. All you can do is attempt to make the best trade possible, minimize your losses, and keep on keeping on.
Just because you think you have found the perfect trade and you didn’t get on board, don’t chase it. There’ll be another one coming down the internet in just a couple of minutes. That is something that I learned the hard way.
If you decide that the way to buy a stock is with an intraday dip, set your bid price, and stick to it. The worst thing you can do is to try and keep raising your bid hoping to catch that little intraday dip. There is nothing wrong with the strategy of buying on the intraday dip, what is wrong is chasing after the stock because it is moving away from you. If you are going to chase it with an intraday dip, you should just buy it in the first place and be done with it. It will save you money in the long term.
If you'd like more information trading the stock market, check out my website, it has lots of great information about various trading strategies.
Just because you think you have found the perfect trade and you didn’t get on board, don’t chase it. There’ll be another one coming down the internet in just a couple of minutes. That is something that I learned the hard way.
If you decide that the way to buy a stock is with an intraday dip, set your bid price, and stick to it. The worst thing you can do is to try and keep raising your bid hoping to catch that little intraday dip. There is nothing wrong with the strategy of buying on the intraday dip, what is wrong is chasing after the stock because it is moving away from you. If you are going to chase it with an intraday dip, you should just buy it in the first place and be done with it. It will save you money in the long term.
If you'd like more information trading the stock market, check out my website, it has lots of great information about various trading strategies.
Sunday, May 13, 2007
Do You Need A Broker To Trade?
The short answer, it depends.
It depends on your trading style. It depends on your experience. It depends on how much time and effort you are going to put into your trading.
Some people find they need to have a broker help them do the research and find a stock that they can buy. And for these people, having a broker makes a lot of sense. They buy for the long term, they aren’t interested in learning technical analysis, they don’t want to check on the fundamentals of a company, therefore they need a broker.
But there are other people that enjoy learning technical analysis, or they really like researching the fundamentals of a company. They don’t want to pay someone extra for doing what they enjoy doing; therefore, they do not need a broker.
With the invention of personal computers and the internet, a lot of people are finding they can get all of the information they need in order to make well informed decisions. Now, many online trading firms offer deep discounts to traders. They have great trading platforms that have all the information they need at their fingertips, so why should these people use a broker.
So again, do you need a broker? It just depends on your trading style.
Learn more about trading visit my website.
It depends on your trading style. It depends on your experience. It depends on how much time and effort you are going to put into your trading.
Some people find they need to have a broker help them do the research and find a stock that they can buy. And for these people, having a broker makes a lot of sense. They buy for the long term, they aren’t interested in learning technical analysis, they don’t want to check on the fundamentals of a company, therefore they need a broker.
But there are other people that enjoy learning technical analysis, or they really like researching the fundamentals of a company. They don’t want to pay someone extra for doing what they enjoy doing; therefore, they do not need a broker.
With the invention of personal computers and the internet, a lot of people are finding they can get all of the information they need in order to make well informed decisions. Now, many online trading firms offer deep discounts to traders. They have great trading platforms that have all the information they need at their fingertips, so why should these people use a broker.
So again, do you need a broker? It just depends on your trading style.
Learn more about trading visit my website.
Thursday, May 10, 2007
Elliot Wave Theory - Pedicting The Future For Huge FX Profits?
Elliot wave theory has a huge and devoted following and is being described as advanced technical analysis and the key to un locking market behavior and predicting the future.
Let’s look at it in more detail and why Elliot Himself could not make money from the theory.
The theory was named after Elliott himself, who concluded in his book “nature’s law” something all traders would love to know.
He concluded that:
The movement of financial markets could be predicted by observing, and identifying a repetitive pattern of waves.
Of course there are repetitive patterns in nature and we all know that, but how do we use them to trade?
We know that at some time in the future, we will see a sunny day when we go outside, the REAL question is when exactly?
So, markets are cyclical, but that doesn’t mean you can predict them in advance and that means in specific time frames.
What we want from an investment theory, is the EXACT timing of a specific event.
Elliott wave theory is put forward as objective investment theory but this is a contradiction in terms as there is nothing objective about it.
The whole theory relies on the subjectivity of the person using it!
You need to look at peaks and troughs, (various time frames) and then make a subjective judgment on where prices are going to go next.
That’s up to you.
Elliot Wave Theory
Is according to Elliot based on rhythms found throughout nature and these of course apply to financial markets to.
He then makes the observation that:
The financial market moves up in a series of five waves and down in a series of three waves.
Elliott wave principle however neglects the most important part we all want to know:
The time requirements for a cycle to complete.
In Elliot wave theory there is no time requirement.
The subjectivity is so great in Elliott wave that a thousand different people will all come to different conclusions, so this can hardly be called an objective theory as it’s all subjective.
Like most of the far out investment theories, everything is explainable in hindsight, however we don’t trade in hindsight - we have to predict what will happen next in real time.
In conclusion: Elliott says that you are able to predict the market with his theory- but then gives you no objective way of doing it.
Who uses Elliott Wave?
1. Investors who want an easy way to make money, and are taken in by great advertising copy – well it is a good story!
2. The far out investment crowd attracted to the mysticism of objective laws in nature and the markets.
Predictive and subjectivity are contradictory!
The Elliott wave theory is a predictive theory which predicts nothing at all and leaves everything to subjective analysis.
If Elliott had worked out a predictive theory then he could have be kind enough to give us an objective way to make money.
If all investors could predict the market in advance, we would all know what was going to happen - and there would actually be no market at all, as we have said previously.
Did Elliot leave a track record of stunning gains?
Of course he didn’t - in fact he died a pauper, so he obviously couldn’t use his own theory like the rest of the people who try it
You can predict one certainty with Elliot Wave
The only thing you can predict with certainty with Elliot wave theory, is that you will get wiped out in the markets.
Predictive theories are hard when you actually have to decide market direction with no objective help!
GRAB 2 X FREE TRADER PDF'S AND MUCH MORE!
On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
Let’s look at it in more detail and why Elliot Himself could not make money from the theory.
The theory was named after Elliott himself, who concluded in his book “nature’s law” something all traders would love to know.
He concluded that:
The movement of financial markets could be predicted by observing, and identifying a repetitive pattern of waves.
Of course there are repetitive patterns in nature and we all know that, but how do we use them to trade?
We know that at some time in the future, we will see a sunny day when we go outside, the REAL question is when exactly?
So, markets are cyclical, but that doesn’t mean you can predict them in advance and that means in specific time frames.
What we want from an investment theory, is the EXACT timing of a specific event.
Elliott wave theory is put forward as objective investment theory but this is a contradiction in terms as there is nothing objective about it.
The whole theory relies on the subjectivity of the person using it!
You need to look at peaks and troughs, (various time frames) and then make a subjective judgment on where prices are going to go next.
That’s up to you.
Elliot Wave Theory
Is according to Elliot based on rhythms found throughout nature and these of course apply to financial markets to.
He then makes the observation that:
The financial market moves up in a series of five waves and down in a series of three waves.
Elliott wave principle however neglects the most important part we all want to know:
The time requirements for a cycle to complete.
In Elliot wave theory there is no time requirement.
The subjectivity is so great in Elliott wave that a thousand different people will all come to different conclusions, so this can hardly be called an objective theory as it’s all subjective.
Like most of the far out investment theories, everything is explainable in hindsight, however we don’t trade in hindsight - we have to predict what will happen next in real time.
In conclusion: Elliott says that you are able to predict the market with his theory- but then gives you no objective way of doing it.
Who uses Elliott Wave?
1. Investors who want an easy way to make money, and are taken in by great advertising copy – well it is a good story!
2. The far out investment crowd attracted to the mysticism of objective laws in nature and the markets.
Predictive and subjectivity are contradictory!
The Elliott wave theory is a predictive theory which predicts nothing at all and leaves everything to subjective analysis.
If Elliott had worked out a predictive theory then he could have be kind enough to give us an objective way to make money.
If all investors could predict the market in advance, we would all know what was going to happen - and there would actually be no market at all, as we have said previously.
Did Elliot leave a track record of stunning gains?
Of course he didn’t - in fact he died a pauper, so he obviously couldn’t use his own theory like the rest of the people who try it
You can predict one certainty with Elliot Wave
The only thing you can predict with certainty with Elliot wave theory, is that you will get wiped out in the markets.
Predictive theories are hard when you actually have to decide market direction with no objective help!
GRAB 2 X FREE TRADER PDF'S AND MUCH MORE!
On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
Tuesday, May 1, 2007
Follow The Trend
Everyone has heard “The Trend is Your Friend”. If you follow the trend you can make money. It doesn’t matter if the trend is up or down, if you follow it, you will make money.
This is easier said than followed. If you’re like me, you spend a great deal of time poring over charts and graphs trying to find a stock that is in a trend. I’ve used candle sticks, moving averages, and just about every other charting trick to try and identify where the trend is going. The secret is to try and find the trend when it is starting and follow it until it changes.
It looks so easy when you read about it in the book, but boy is it ever so hard to actually implement. I’ve even tried to design my own trading strategy using technical analysis. It is so easy with the charting software; you can do some back testing to try out your great theory that is going to set the world on its edge. I confess, one of the tricks I’ve tried was using the 10 day moving average crossing the 30 day moving average as a turning point. Sometimes it works, sometimes it don’t. I still am experimenting, searchinf for the perfect system.
One thing that I’ve discovered is that what works for one person does not necessarily work for another. It comes down to temperament and discipline more than anything else. If you can follow a system, remained disciplined when everything is moving so fast, and have the temperament to face the losses that come your way, you can be successful trading in the stock market.
There are dozens of systems out there, some are better than others. You have to take the responsibility to research how the system works, learn the ins and outs of it. And then, you have to face the question, do I have what it takes to trade this way. You have to be honest with yourself, because if you aren’t, you will lose your shirt. That much, I can guarantee.
This is easier said than followed. If you’re like me, you spend a great deal of time poring over charts and graphs trying to find a stock that is in a trend. I’ve used candle sticks, moving averages, and just about every other charting trick to try and identify where the trend is going. The secret is to try and find the trend when it is starting and follow it until it changes.
It looks so easy when you read about it in the book, but boy is it ever so hard to actually implement. I’ve even tried to design my own trading strategy using technical analysis. It is so easy with the charting software; you can do some back testing to try out your great theory that is going to set the world on its edge. I confess, one of the tricks I’ve tried was using the 10 day moving average crossing the 30 day moving average as a turning point. Sometimes it works, sometimes it don’t. I still am experimenting, searchinf for the perfect system.
One thing that I’ve discovered is that what works for one person does not necessarily work for another. It comes down to temperament and discipline more than anything else. If you can follow a system, remained disciplined when everything is moving so fast, and have the temperament to face the losses that come your way, you can be successful trading in the stock market.
There are dozens of systems out there, some are better than others. You have to take the responsibility to research how the system works, learn the ins and outs of it. And then, you have to face the question, do I have what it takes to trade this way. You have to be honest with yourself, because if you aren’t, you will lose your shirt. That much, I can guarantee.
Monday, April 30, 2007
The first thing to keep in mind; not all Forex Trading Systems are equal. In fact, the vast majority of these systems are junk and will end up costing you money in the long run. So you need to proceed with caution and use common sense to get the best system in the market.
Here are some things to keep in mind that will help you find a system that works for you:
Most Forex Day Trading Systems, while very popular, don’t work very well. The logic used by many of the trading systems is flawed and is not reproducible. Be sure to pick a system that that has been tested in the market place and has proved itself trading in real time.
Pick a simple system, it is easier to understand and makes it easier to follow. There is no correlation between complexity and profit producing potential. If you don’t know how it works, you work be able to follow it when you run into a tough market. Also, you should pick a mechanical system, one where your emotions will not get in the way.
Be sure the system uses the same logic on all currencies. Unscrupulous vendors use different parameters when trading different currencies. This is just wrong. They just adjust the curve to match the data, to make a profit. Be wary of hypothetical track records, which are done in hindsight, which makes it easy to create a profit.
Know what the peak drawdown is for the system you are attempting to trade. Every system has losing trades, no matter how good the system is. You need to know what your loss potential is and how much you can absorb in a downturn waiting for the system to turn. If the drawdown is deeper than your capital, you will lose, plain and simple. Some systems will have a drawdown of 50% or more. If you are not comfortable with this size of drawdown, you need to find a different system with different parameters.
Check out the vendor, they should have a good support system and offer a money back guarantee if you find the system is not right for you.
These tips should help you find a Forex Day Trading System that will work for you.
To get more information about trading the stock market, You can go to my websites at www.Trade-The-Stockmarket.com and www.Trading-The-Stockmarket.com. These have a wealth of knowledge about various trading strategies.
Here are some things to keep in mind that will help you find a system that works for you:
Most Forex Day Trading Systems, while very popular, don’t work very well. The logic used by many of the trading systems is flawed and is not reproducible. Be sure to pick a system that that has been tested in the market place and has proved itself trading in real time.
Pick a simple system, it is easier to understand and makes it easier to follow. There is no correlation between complexity and profit producing potential. If you don’t know how it works, you work be able to follow it when you run into a tough market. Also, you should pick a mechanical system, one where your emotions will not get in the way.
Be sure the system uses the same logic on all currencies. Unscrupulous vendors use different parameters when trading different currencies. This is just wrong. They just adjust the curve to match the data, to make a profit. Be wary of hypothetical track records, which are done in hindsight, which makes it easy to create a profit.
Know what the peak drawdown is for the system you are attempting to trade. Every system has losing trades, no matter how good the system is. You need to know what your loss potential is and how much you can absorb in a downturn waiting for the system to turn. If the drawdown is deeper than your capital, you will lose, plain and simple. Some systems will have a drawdown of 50% or more. If you are not comfortable with this size of drawdown, you need to find a different system with different parameters.
Check out the vendor, they should have a good support system and offer a money back guarantee if you find the system is not right for you.
These tips should help you find a Forex Day Trading System that will work for you.
To get more information about trading the stock market, You can go to my websites at www.Trade-The-Stockmarket.com and www.Trading-The-Stockmarket.com. These have a wealth of knowledge about various trading strategies.
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