February 13th, 2008 by admin
To succeed in stock trading, you need an edge. You need an advantage on the market. If you don’t have that advantage on the market, you’re dead financially. You will suck at trading.
The good news is that the triangle pattern can be such a edge. It gives you power to know when the market is about to make a move.
A triangle pattern is simply that. It looks like a triangle with the point pointing at the right edge of the chart. It shows that volatility is drying up. And that is a good thing for you because volatility can’t go away. There has to be some volatility. There simply must be some.
So you know that the market will break out to either side of the triangle soon. Yes, soon. You don’t know if the market will break up or down. And really you don’t care. What concerns you is the fact that you now know the market is going to make a move.
You can place your limit orders on either side of the triangle and be ready to be put into the market. Then it’s just a matter of placing your stop in the “middle” of the triangle and trailing your stop as far as you can.
It’s a simple thing, really.
Sure there are some whip-saws. There will be no matter what you trade. There is no 100% effective trading method, and the good news is there doesn’t need to be one.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
You know that to succeed in the world of stock trading, you need to know when the price will go up or down, right? You know that you can’t just jump in here or there and expect to be profitable. This you know. But most likely you are searching for that perfect trade setup. You want that fool proof method of selecting trades.
Well, I’m here to tell you… that you have not found it yet.
And you never will.
There is a much better way to approach trading. Build a toolbox. No, not a physical toolbox, but a collection of winning trading methods. No one method is always applicable. You can’t always just find on trade set up. You need more than one. The flag pattern is a good pattern. Used properly it will make you money.
It’s easy to recognize. You’ll see it like this. The market has just made a run up. Then there is a small period where the market comes back down a little. The daily bars are smaller. And they are collectively form a squarish shape. This looks like a flag on the “pole” of the recent run up in price.
You trade it by simply placing a limit order above the flag. When the price breaks the flag, then you are ready to make money. The trend has resumed. Ride it on up. Place your stop at the base of the “flag”. Put it just underneath the flag formation.
That’s one of the great things of this. You can put a really tight stop in place, with a large profit potential.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
How do you know when a market has stopped falling and is ready to turn around and go back up? How do you tell when the market has bottomed? There are several techniques, and I will share them with you now.
1) You need to look at price and volume. The simplest way to tell that the market has bottomed is simply by looking at bars that get huge amounts of volume.
If the market has traded down very far but close up higher than the close and there is heavy volume that is a very strong clue that the market may have put in a bottom.
2) Has the market gotten choppy, like its hit an invisible glass floor? If so look back in the chart’s history. Has there been any other support or resistance in that area?
If so, then most likely is resting on that again. Wait for the price to break up, and there is your confirmation that the bottom has been put in. In fact what I just mentioned is the most important thing. If the market has put in a bottom, the best way to tell is to let the price tell you that by going up and staying up.
There is nothing worse than trying to catch a falling knife. You will cut yourself. The same is true of the market. You don’t need to pinpoint the exact bottom. You just need to find the place where it has turned around. You know for sure that it has turned, when it has turned. (Kinda obvious, huh?)
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
The secret to making money as an investor is to buy money at a discount. You need to be buying a dollar for ninety cents. It’s impossible to lose money if you buy it at a discount. The problem the discounted money isn’t screaming at you. You have to find it.
And really, when it comes down to it, you don’t need to be a slave of the fundamentals. That’s not really where the discounted money hides. You see, stock prices aren’t driven by the fundamentals. They are driven by the perception of the fundamentals.
Let me ask you this. Let’s say that all of Ford’s factories burnt to the ground last night. How do you think that would affect the price of the stock? What would happen to Ford’s stock?
The correct answer you don’t have enough information.
You need to know if people know about this. If no one knows about it, then there will be no change in the price.
You see, it’s all about perception. Not necessarily about what is. Sure if a company is solid, it will probably be a good investment. But the thing is, it’s not because it’s a good company, it’s because it’s perceived as a good company.
So what does all this mean? It means that to become a complete investor, you need to be able to read people. Learn the psychology of what motivates them. What makes people want to buy this or sell that.
Then you are a complete investor (who will make even more money).
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
There has been a lot of talk recently about how the foreign markets are really doing well. And some of the biggest growth in the stock markets has been in markets like in China or India.
First up, let me tell you that you won’t be able to invest in those markets directly. You see, to invest in those markets you need to be a citizen of those (or of a neighboring country).
But do you even need to be investing in foreign markets? One could make the case that the foreign markets are like the greener grass on the other side of the fence. The truth is, you don’t need to be able to invest in foreign markets, if you invest in the US market correctly.
Here’s the thing. You will need to learn some new skills to profit in this market. The US stock market probably isn’t going to make new highs for a while. Most likely, it’s going to go down. Perhaps just be flat. Investing in these times can be tough, but not for you if you learn some new skills.
I recommend two different skill sets. One, really hone your stock picking skills. You cannot get sloppy now. Now is definitely not the time to be lax on picking your investments. Two, learn about options trading. Options give you so much flexibility in the marketplace. You can hedge and create income just with the proper use of them.
Mastering those two skill sets will allow you to continue to profit well in the stock market through any difficult times.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
First let me define terms. A private offering is stock that isn’t traded publicly. It’s is only available privately. A public offering is any stock that can be bought on any exchange.
So, you want to know more about private offerings. Well, first you do need to be wealth to invest in them. If you don’t have a net worth of $1,000,000 or make $200,000 in a year, you are excluded from most of them.
Plus they are not going to be so easy to find. You won’t find them all over the place. And, it is truly a buyer beware situation. They don’t have to file a lot of the paper work that a public offering might have to.
So you really have to dig deep and research the investment fully yourself. If you don’t know much about business and finance, stay away. You will be looking at lots of financials to determine if this is worth your money. You need to be proficient at it. But here’s the really question. Sure they are the investments of the rich, but are they better?
Do the rich really make more than the rest of us in their investments?
The answer is no. Not really. I’ve worked with some very rich people. When the stock market doesn’t do well, they make the same returns as everyone else. And private offerings are investments that grow by the 1000s of percents usually (sure, a few do).
I guess, what I’m saying to you is, stop looking for the pot of gold at the end of the rainbow. Stop chasing the dream. Come back down to reality. It is there that you can do well, and really start to make something happen for yourself.
Learn how to invest in regular stocks. They are not a sexy, but the can be just as (or even more) profitable.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
Looking for the “secret”? That one thing that will click and suddenly you are rich? Looking for that one killer trade?
Yeah, it can happen.
But the secret to stock market riches is to grind it out. Yeah, grind it out.
When you can trade and invest profitably consistently, you can do something that most people who call themselves investors/traders can not do.
So the secret to the stock market is learning to pull cash out of it every month. Now I suppose you want me to tell you the secret to pulling cash out of the market every month?
Is there even such a secret?
The answer is yes, but like the best secrets always are, it’s hidden right under your nose. It’s right there, you just can’t see it because you are looking for something flashy and new. Well, let me tell you the “secret” to making the market pay you monthly. It’s trading covered calls. Yeah, just that. Just trading covered calls.
To make it even better, trade only calls that are in-the-money. They give you the most downside protection. Then, when you can make the market pay you monthly and in a safe and boring way, it is then that you know how to get rich. Compound, compound, compound.
Compounding only works with consistent returns. If you try to compound without consistence in you returns, your equity will be all over the place. Most likely, you will blow your account up.
However, covered calls give you that much needed consistency. You do the math.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
imple is good and easy is good too. If there is a way to make money in the stock market that is easy and a way that is hard, which is better? The easy way. Right? So what is the easiest way to make money in the stock market?Well, I have my personal opinion, and I’d be happy to share that with you.
The easiest way to make money is to sell calls against solid stable companies. Covered calls are the easiest way to make money in the stock market. Now that said, there is a lot of misinformation about covered calls trading out there. I’ve heard people like Wade Cook saying that you can make 20% per month trading covered calls. Well, good luck at that. It’s really hard to do that. You have to only trade really dangerous stocks to do that.
Also there is misinformation that that they only work in a bull market. Again not true. At least not if you do covered calls right.
So, let me tell you about the right way to trade covered calls. Here’s how. First ignore the stocks that give you the high premium. The premium is high for a reason. The stock is very volatile. You don’t want that. You want the stock to be quiet.
So stick with companies that are large and are profitable themselves.
That’s the key to make money. Sure with those kinds of companies, the option premium will be much smaller. You won’t be able to make 20% per month. You might only make 3%, but annualized that’s still 36%. That’s good.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
The stock market can be a rough place to try to make money. Believe me, been there and done that. It’s rough if you don’t know what you are doing. The prices seem to rise and fall at random. You can’t predict what’s going to happen, and your emotions are consistently getting the best of you. Well, after plenty of searching, I’ve found what could be called the fool proof way to trade stocks. It’s worked for me and many other less-than-genius trading.
First, you need a basic understanding of options. Let’s say that stock ABC is trading at $30. A call option gives you the right (but not the obligation to buy stock at a certain price for a given amount of time).
The way you know what price you have the right to buy the stock at is the strike price. If the strike price is the same or very near the stock’s actual price then the option is called “at-the-money”. If it’s way under the stock’s price the option is called, “in-the-money”. “Out-of-the-money” is with the strike price way above the stock’s actual price.
Out-of-the-money options are cheap. In-the-money options are expensive.
The fool proof way is to sell in-the-money calls against stable stocks. The money you get from the sale of an in-the-money option gives you good downside protection to the fall of the price of the stock.
If an option with the strike of 25 is selling for $6, then you can let the price fall all the way to $24 before you’re in trouble. $30 - $6 (from the sale of the option) = $24. And you’ll make $1 per contract. Strike of $25 + $6 (option premium) - $30 (the stock price) = $1 of profit for you per contract.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
Request your free copy here: Click here for your free CD.
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February 13th, 2008 by admin
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