Posts Tagged ‘Trading’

Stock Market Trading – Top 4 Trading Myths That Jeopardize Your Success

Do you believe buy & hold is safe? Or that selling short is risky? Read below the top 4 myths that are widely believed, and keeping people from their trading potential. When you properly understand these myths, you will be leaps ahead of everyone else. Myth #1 Selling Short Is RiskyThis trading myth comes from the fact that some stocks can trade down to zero while there is no limit to how high that stock can trade. So losses for long positions are limited on the downside, but short positions can suffer unlimited losses. But the belief that short selling is risky is preventing you from minimizing risk and preventing you making money. You see, selling short works just as well as buying long if done properly. The level of a positions risk depends on good money management methods. A small percentage of traders have realized this and have developed a trading strategy to sell short and profit easily regardless of which way the stock market is moving. Myth #2 Buying & Holding is SafeThis would have to be the most common trading myth, that stems from the belief that the stock market always goes up in the long run. This is true enough, but it can also take an extremely long time. Some markets have been known to drop dramatically, and not return for 25 years! Like the Dow Jones Industrial Average from 1929 to 1954. It dropped so low during this time that no one would sit through it. Money managers who can duplicate the performance of the general market are very rare. You need an exit strategy that limits risk for every strategy, whether investor or trader. A small percentage of traders are using a trading method that will actually apply to any market. This potentially gives them a winning edge. They aren’t simply buying, holding, and hoping like most traders do. Myth #3 Trading is easyIf making money consistently from the stock market was easy, everyone would be doing it, and all be wealthy from it. Yeah, the physical part is easy enough, but many people have this idea that trading is easy, but they were never given the tools that make it easy. It’s not that trading needs to be difficult, but it requires a solid trading method, and diligence on the traders part to stick with it. And unless you also trade with discipline and use good money management principals like the most successful traders, you can only hope to be less than successful. Myth #4 The existence of the Holy GrailI see far too many traders hopping from method to method, pursuing the next guaranteed thing only to be repeatedly let down. Newbies tend to think they should be able to win practically every trade. Thinking they should be having a straight line of wins without any major setbacks. When armatures try something, they conclude that their system doesn’t work after the first few losses in a row. So they jump on something else. How can anyone expect to succeed this way. Unless you want to continue to suffer losing trades, and eventually give up, stop chasing this holy grail nonsense. The holy grail of trading doesn’t exist. It would seem more than 90% of traders are wasting years of their life with this myth. Think of the progress, the money that could have been made, if they had spent that time and energy on a solid trading system, and a good trading method. Where to go from here:Well first, simply understand and clear your head of the above stock, and trading myths. Free yourself from these beliefs that restrain your potential as a trader. This will automatically put you in front of most traders. There are a few traders however, less than 1%, who understand the above and more. who are quietly making a killing from the stock market, and are spending no more time trading than you. A lot of them keep their winning system and their successful trading secrets to themselves, but there are a few who will share this information with the publicJust remember, none of these super traders are born geniuses. And they don’t have a crystal ball forecasting the stock market. They simply have found a winning system that isn’t restricted to any time frame or market. The most successful traders are nobody special, apart from the stock market secrets they learned and diligence to put them in action. Regardless of whether you trade Stocks, Options, Futures or Forex, or your level of experience, you can’t afford to keep buying and hoping. Stop leaving your success to chance when you can take control. It isn’t necessary to keep wasting all this time and money on the common trading methods. Even if you are ahead, the average trader could trade far more efficiently. You too can become one of the very small percent of traders. Seriously, you just need to learn how to properly, plot the chart, the right setup conditions, the best entry point, stop loss point, and place your profit target point. To learn how to do the things listed above, and for actual insider trading secrets on how the most profitable traders really do it – Read on.

Stock Market Trading for Newbies – Top 5 Tips on How Ordinary People Can Start Rakeing in Millions From Stock Trading

Trade the right way, and entering the stock market will doubtless be the best and most profitable investment you will ever make. Even into the millions. But trade stocks the wrong way, and you will simply be giving your hard earned cash away. Read on to see the right way to trade, top 5 must know tips for new comers, and deadly traps to watch out for. 1. Forget your gut feeling. Too many new traders are finding a stock they think will be good, invest too much with it, and wave it all goodbye. Your gut feeling is no substitute for coaching from a professional. 2. Careful who you listen to. Most market analysts are outright guessing. And don’t fall for all this ‘holy grail’ nonsense. Many traders waste the best years of their life searching for it when it really doesn’t exist. 3. Start small. Invest sums like $50 to $100 to start out with. This can save you tons of money while you’re gaining valuable experience for big trades in the future. 4. Don’t invest what you can’t afford to lose. Though you may be exited, this isn’t the time for rushing in blindly. The recent stock market fall shouldn’t be anything to scare you, but you will want to trade with only spare money. 5. Get a good trading system, and stick with it. Amature traders waste a ton of time and money hopping from method to method. You need the patience to persist with a system, instead of leaving after the first few losses like most losing traders. Trading the stock market will have it’s ups and downs, but with a solid trading system, good money management principles, and the patience to research and stick at it, you could eventually be trading by the millions. A million’s less than it used to be, it’s not that far out of reach with an ideal trading system. Happens every day. Low on patience? Shortcut to the profit stage. Impatience can be good, if it drives you in the right direction. Believe it or not, this is a legitimate choice. Some new traders have saved loads of time, and made loads of money by simply duplicating the success of someone else. Newbie traders have shaved years off the learning stage by taking full advantage of someone elses experience. This is highly recommended, depending on who you listen to. There’s a lot of junk out there – if it sounds too good to be true, it’s usually best to walk away. But not in every case. Choose an expert with proof such as examples and testimonials, and checkout and free trial or preview first. You can’t afford all this trial and error like most amature traders. Who would want to start from scratch and figure it all out on their own, when you can have all the trading tools and resources handed to you from one who knows, and is already making millions from the stock market. See just how easy it can be to duplicate someone else’s success, and download a free consumer guide – 4 simple steps successful traders know that you don’t. This is an excellent tool for traders of all experience levels. Even complete newbies.