Trading as a Business (21 Mar 2006) Starting off your futures and options trading experience with unrealistic expectations inevitably will lead to frustration and disappointment. It's better to face reality now. It will make life as a trader easier down the road. Here are just a few facts to dispel those unrealistic expectations.
Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market (21 Mar 2006) An approach to day trading or swing trading that I had some success with back in the wild and woolly, pinnacle days of day trading that may still work today. Unfortunately, this basket of stocks was dubbed "The Crapolilo", a name it just could not shake.
Trading Education: The Best of Both Worlds! (21 Mar 2006) I made my very first investment in the stock market when I was
ten years old. Ever since then I have been hooked! Now I check
out hundreds of trades each year with the same excitement andenthusiasm, and each time try to find that one market at the
right time that could dramatically create wealth.
Trading For A Living (21 Mar 2006) How many times have you said to yourself, "I'd like to quit this job and just make a living trading in the stock market"? Well, maybe you can, BUT...
Trading For A Living - Part 1 (21 Mar 2006) There can't be many traders who haven't at least considered the idea of telling the boss what they think of him, throwing it all in and going off to trade the stock market for a living. It's a big ri...
Trading Stocks Without Emotion (21 Mar 2006) Is is possible to trade without emotion? Probably not, but recogizing it's effects are a good start to trading without emotion.
Trading Stocks –Never Forget About A Past Trade (21 Mar 2006) The moral of this article is to make you understand that timing may be your only issue when buying stocks so never throw away a possible superstar because you bought too soon. Keep it on your watch list and be prepared to initiate another position, even if it will cost you an extra point or two. If you buy again and it doesn't work out, re-peat the process, there is always a chance that the stock was not meant to be or your analysis was slightly faulty. In either case, learn what you are doing right and wrong so you can be prepared to use those lessons with the next stock.
Trading Tips No 2: The Big Lie in the Stock Market (21 Mar 2006) It is commonly reported that the stock market averages about 10% per year return over the long term (decades). So the investor that buys and holds a diversified portfolio of stocks or mutual funds is led to believe that their portfolio will grow by 10% per year on average. You know the mantra, “Not to worry, I’m a long term investor. On average, I’m earning 10% per year.
Trading Tips No 5: Stock Trading Curve Drawdown and Commitment (21 Mar 2006) All stock trading and investing methods must deal with the inevitable drawdown from the most recent peak in one's stock trading curve to a bottom before reversing and making a new high. Seasoned systems traders are well familiar with the drawdown phenomenon and the importance of drawdown as a percentage of annual average returns in evaluating a trading system. On the other hand, many "investors" that follow a "buy, hold and hope" approach to the markets for the long term, don't think in terms of a drawdown when their portfolios drop in value by 10%, 20%…75%, as has happened in the past few years. But what they have experienced is an stock trading curve drawdown.
