The Stock Trading Plan - Why You Must Have One To Trade Successfully (21 Mar 2006) All successful traders have a defined, written trading plan. The trading plan can take many forms. At the very least, it will provide the minimum guidelines that must be satisfied before a trade will be considered. It may be as complex as a long set of very restrictive rules that must be satisfied before a trade can be considered.
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 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.
Forex Trading Explained. DrForex's top selling forex book Bird Watching in Lion Country - Forex Trading Explained in e-format.
Bargain Basement - Finding Stocks That Go Up (21 Mar 2006) Have you been listening to the talking heads on CNBC-TV? Or those talk radio stock experts? Getting all those good recommendations on what to buy now. Now?
Mutual Fund Ball and Chain (21 Mar 2006) The broker told me not to sell because the mutual fund I owned had a 2% redemption fee and they would penalize me if I did.
I got to thinking about it and did some simple math to see what that would cost me if I sold. Several months ago ...
401K-itis (21 Mar 2006) Are you one of those many people who dread reading their 401K statements? You have been watching it decline for about 2 years and are wondering if will ever stop. Just about everyone says the market will come back. Brokers say you are in for the long haul so don't worry. Any account that drops to a 50% loss has to go up 100% to get "even" and that is a very difficult phenomenon. If you have an 80% loss as has already occurred in the Nasdaq you would need a 400% rally to get "even". At 90% you have to see a 900% rise to that mythical "even".
What Does it Take to be a Stock Trader? (21 Mar 2006) It takes a total mental commitment to the task. It becomes a complete way of life. You cannot be a
part timer. You cannot work at a regular job and trade stocks successfully.
