Category: Stock Trading

How to Add Shares to a Profitable Position
Say you have a stock in your portfolio that is up 30% and it forms a base or consolidates to a moving average, and you want to add to this position. How would you go about doing this? There are a few ways that I have approached this situation. Some of you may agree and... [ read more ]

Easily Avoidable Stock Market and Investing Mistakes
If you are like many millions of Americans investing in the stock market sounds scary and comes with a lot of reservations. This is natural and as it should be since the stock market can be very risky. However by follow some simple steps, taking it slow and making... [ read more ]

Bull Call Spread
A bull call spread is when you have a long (buy) call option and a short (sell) call and you want the market to rise, hoping the options get exercised or are traded for a profit. Bullish call spread strategies have premium (cost) risk, but in the option world... [ read more ]

The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets
A Guide to Using Stop Loss Orders. Stop losses are market orders designed to allow you to limit your losses. When you place a stop loss you are instructing the spread betting company or stock broker to cut your position when it reaches a certain loss level (or in some cases, profit... [ read more ]

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey
After some forty years of banking and investments, I retired in 2001. But since I do not golf, I soon found retirement to be very boring. So I decided to return to the investment world after ten months. However, those ten months were not a complete waste of time, for I had... [ read more ]

Stock Trading: Why Averaging Down is a Losing Proposition
Many traders, especially those new to the markets, have a habit of "averaging in" to trades that aren`t going their way. The following reasoning is used: If this trade was a good entry at my earlier price, then it must be an even better entry now! On top of that, the trader... [ read more ]

Trading - A Probability Game
As a trader, you have to forget about finding a sure thing. You must accept the fact that the stock market can do anything at anytime. If you are not convinced, consider that there are millions of traders trading for institutions, funds, investors, swing traders, scalpers... [ read more ]

5 Steps To Researching a Stock Trade Before Investing
Once you determine which business cycle the economy is currently in you can start researching for a trade. It is best to have some sort of a system in place that will be used before EACH trade. Here is a simple 5 Step formula to help get you started... [ read more ]

Stop Orders In Your Stock Market Trading
So we are clear, a stop order is an order that becomes active once a certain price is exceeded. A buy stop order is an order to buy once price exceeds a certain price. Until the price is exceeded to the upside, the order is not active. The opposite applies for a sell... [ read more ]

The Curve Drawdown - A Sensitive Aspect of Stock Trading
If you are a new player on the stock market, you should know that things aren't always nice and shiny when it comes to stock trading. There are downsides and upsides as in any other trading or investing process and you have to be prepared to cope with the negative... [ read more ]

Benefits of Electronic OTCBB Stock Trading
Although today almost all stock market trades are done electronically with advanced software platforms, Over-The-Counter Bulletin Board (OTCBB) stocks are traded either directly or by call in. These processes take much time... [ read more ]

Investing in Cyclical Stocks
Predicting an upswing can be awfully difficult, especially since many cyclical stocks start doing well many months before the economy comes out of a recession. Buying requires research and courage. On top of that, investors must get their timing perfect. Investment guru... [ read more ]

Before you start stock trading: first think if it is worth your time and money
Today people are bombarded with lucrative offers from various trading companies offering $10, $7 or even $4 per stock trade. It looks very tempting to sign up and start trading since the terms are much better than it was before the Internet trading was possible... [ read more ]

The Easy Secrets To Determine Stock Market Position Sizing
When trading in the stock market, position sizing is where all the tools of money management come together. It`s perhaps the most important part of your stock market money management rules. Position sizing is simply deciding how much you are going to put into... [ read more ]

Forecasting the Stock Market
Every day I see in the financial section of newspapers how to forecast what the market will do in 6 months, 12 months, several years. “Ten stocks that will double in the next 6 months.” Right! I have trouble trying to forecast what it will do tomorrow... [ read more ]