How To Promote Your Share Market Returns While Bringing Down Your Risk.
September 3, 2010 | Leave a Comment
An options strategy called Covered Call Writing is a cautious strategy designed to trim down risk and step up income when investing in stocks. Shortly said, stock options are contracts in which you purchase or trade the right to buy or sell. Although there are eight types of options contracts, we’re interested here in low-risk “Covered Call Writing.”Here’s how it works: Say it’s August and you buy 300 shares of XYZ stock at the price of $48 per share. XYZ pays a quarterly dividend of 50 cents per share. Therefore, if the price never travels, you’ll earn 4.2 % per year.
At the same time, you would take part in Covered Call Writing. To do so, you, you would “write three January 50 Calls.” This means you are selling (”writing”) the right for someone else to buy the stock from you (they “call” it away) between now and the third Friday of January at the specified price of $50. (All contracts run out the third Friday of the month.) Each contract represents 100 shares, hence three contracts. The vendees pay you a fee (called a “premium”) of $3.5 per share, or $1,050. (The premium is based on the amount of time until termination and the spread between the current price and the “strike price,” in this case $50. Therefore, the premium changes constantly.) .
Assuming you don’t delete, only two things can hap next: The contract will get exercised or it will run out worthless in January. Either way, you keep the $1,050. Clearly, this strategy can yield big rewards. Among the rewards are:
1. You are establishing a profitable sell price the day you buy the stock. If exercised, you are guaranteed a profit;
2. You reduce risk because premium in effect reduces the price you paid for the stock;
3. Your annual yield is boosted far above that of the dividend alone.
However, there are other considerations. For one, you are limiting your potential gains. No matter how high the stock climbs, you won’t sell for more than $50. You can solve this problem by buying your option back, in effect canceling it out. You would do this if you later think the stock will dramatically rise and you don’t want to miss the profits to be made.
Also, you have not trimmed down the risk that your stock may drop in price. The only certainty is, should XYZ drop $25, your option will not be exercised - a small consolation. To protect yourself, you may “buy a January 45 put” giving you the right to trade your stock for $45. This is the opposite of what we’ve reviewed here, and is designed to minimize losses, rather than protect gains. Because of the potential for price falls, you should choose a high quality, blue-chip stock that fits your budget, an offers a stable trading range, solid cardinal, high dividends, and good growth potential. Covered Call Writing is not a cause to own stocks, but the strategy might be of help if you already own them. Prior to opening an account, you must receive and urged to read “Characteristics and Risk of Standardized Options,” which is printed by the Options Clearing Corporation in cooperation with NASD and all major U.S. stock exchanges. The folder is available from any broker or financial adviser.
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Psychology - How To Trim Negative Views Linking Up To Stock Trading By Supernsetips
September 2, 2010 | Leave a Comment
The thinking process of the brain relating to the psychology of trading involves:
– Beliefs. — Feelings. — Values. — Dispositions and. — Faith.
The positive or negative energy conveys power to a person’s activeness’s, which ultimately determines whether a person is a winner or a loser. You can vary for the estimable or for the risky. The old saying goes: For as a man thinks in his heart so he is.
– Trading is the most hard money making science to master, because the market acts the aspects of people and life.
It is necessary to scratch the surface and explain what psychology means and how it relates to trading. Without doing so, you will not understand why this element is important to your trading plan. The psychology aspects of people are divided into two categories:
1. Believers (the first category) who support the belief that something in the realms of other dimensions in the universe exist and. 2. Non-believers (the second category) who are convinced that reality is the only dimension of life.
It is (the first category) that usually uses both sides of the brain to think and has access to a third component of the brain (faith) that is dead when the person is born. (The second category) only uses a little portion of the brain’s power. While (the second category) may or may not use both side of the brain to function, the third part of the brain (faith) is altogether dead and non-active.
See, the psychology of the brain is separated into three separate parts:
1. Faith. 2. The thinking factor and. 3. The emotional part.
If the thought, (focusing on the power of positive thinking), division of the brain controls the emotions, the individual maintains and builds up discipline. If the emotions run the thinking part of the brain, the human being lives in a pure state of extreme confusion and disorder. This is why the answer to success understands how the right forms of discipline work - without it you will lose your shirt in the market. Discipline in the following three areas of trading will ultimately determine your trading success.
* Training — The successful trader never rests on past successes, or believes that his trading ability has peaked. He is always reading and practicing his decision-making skills, honing them until they become second nature. Then he can react faster than a speeding bullet, but with the welfare of superior human judgment.
* Trading Rules — The successful trader develops set of trading rules - a plan - that he follows faithfully. This guides his decision-making at all times. If a trader’s plan dictates that it is time to exit a stock, the trader will exit that trade and not wait a minute longer.
* Self Control — Successful traders display an extraordinary amount of self control. Keeping emotions constantly in check, the disciplined trader is resistant to the highs and lows that attend big market swings - whether scare, in a downturn, or of euphoria. I will show you how to learn the secrets of discipline.
Can You Learn Discipline?
The big question here is whether you can develop the discipline you do not have naturally. I believe the answer is “yes, you can,” but you must have the necessary commitment to do so. Ultimately, ungoverned behavior is going to be punished by the market. Private traders who persevere and master self discipline, have external stimuli that will help the process. However, the market does not help as much as it might, because of the principle of random reinforcement. It is the market’s tendency to reward bad behavior from time to time. This crucial fact is one of the reasons why it takes so long to learn how to trade. You need to realize this: there is no point in having a system if you are not going to follow it. Follow and evolve a routine of self-discipline and you will be successful in your trading speculations.
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How Much Amount Of Money May I Generate With Stock Trading ?By Supernsetips.
September 1, 2010 | Leave a Comment
What account size do I need?
How much money can I make with trading?
First, let’s clear up a usual misapprehension: You never risk your full account size. You always have a “catastrophic stop”, and it is significant to define the “ruin” before you start trading. Let’s say you start with a $10,000 account, and you decide to stop trading if you lost $2,000. In this example you are “ruined” if your account minifies to $8,000. Though you invest $10,000, you only risk $2,000.
Back to the first question: “What account size do I need?”?
The first element is the margin wanted by the exchanges. The margin is the “security deposit” that you need to have in your account if you want to trade. This margin varies depending on the contract you want to trade, e.g. $3,938 for the e-mini Sample and $1,688 for the 30 year Treasury Bonds. Many brokers offer a 50 % deposit? On this margin requirement if you day trade, i.e. you open and close the position on the same day. If your trading system requires trading 1 contract of the e-mini Sample, and you hold the place overnight, then you need at least $4,000 in your trading account. The next factor is the waited draw down. If you would only deposit $4,000 in your trading account, the first trade moves against you by more than $62, and the value of your account falls below the margin requirement of $3,938, then you receive a “margin call”. Many electronic platforms automatically liquidate your open positions, and don’t let you trade any longer. Therefore, you need to know the upper limit draw down of your trading system in the past. Let’s say your trading system had a maximum draw down of $2,200 in the past, and then you need at least $6,200 in your trading account: $4,000 margin requirement plus $2,200 “buffer” for a possible draw down. A secure approach is to duplicate the maximum draw down, because usually the worst draw down is still to come.
Let’s say that based on these calculations you adjudicate to fund your account with $8,000, and you define your “ruin” as $6,000, i.e. you are willing to risk $2,000 for your trading adventure. How likely is it that you lose the $2,000 you are willing to risk? Assuming you have a well tried and robust trading system that is likely to achieve similar results in the future as in the past, then you can use the log-normal distribution to calculate the risk of ruin. In the following example we will use the values of our e-mini Sample Trading System “Coin Collector”. The gain factor of this system is 1.42, i.e. for every dollar you lose you earn $1.42. The winning percentage is 70.5 %, and the average winner is $129. Using these figures and the results of the past trades, you can calculate the “risk of ruin” for our system: The chance of missing the whole $2,000 that you are willing to risk in the next 30 trades only is 1.4 %. That’s very low. If you decide to risk $3,000, then the probability of losing all the money in the next 30 trades lessens to 0.07 %.
Let’s talk about the next question: “How much money can I make”? You first need to calculate the average profit per trade by separating the overall profit by the amount of trades you made. In our example the “Coin Collector” produces an average profit of $37. Next you need to multiply this number by the trading frequency. The “Coin Collector” produces in average three trading signals per day, i.e. you can expect $111 per day per contract. An average week produces 15 trades and $555 profits. Taking off commissions and slippage you can expect $842 in two weeks (= 30 trades). If you catch a lucky streak you could even make more. So how likely is it to CREATE $2,000 within the next 30 trades? The probability of making $2,000 is 20.4 %. Trading is about risk and reward: you want to get a decent payoff for your risk. In our example the probability of losing $2,000 is 1.4 %, and the probability of making $2,000 is 20.4 %. That’s an excellent ratio!
Conclusion:
Your account size is determined by the margin demand set by the exchanges and the “buffer” you should have for an expected draw down. The question “How much money can I make?” can be answered using the performance report of the past results of a trading system. Keep in mind that these figures are only valid if you developed a robust (and not a curve-fitted) trading scheme. Using some statistical functions, you can then determine the “risk of ruin” and the probability of making a certain sum of money. That’s what trading is all about: risk and reward.
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Silver.Ag Sterling Silver Pendant
August 31, 2010 | Leave a Comment
A sterling silver pendant and the chain it hangs from is a beautiful addition to any wardrobe. It can accessorize any outfit that you might wear from casual to formal. What it can express about someone and their personality type and traits is as diverse as those who might choose to wear it.
The various representations, or expressions, of those traits of personality depend upon the many designs that are offered in the marketplace. Thus choosing the pendant that will end up resting near your heart should be the one that you feel suits your sense of self. Thus it shall have a meaning to you that is intensely personal. That is especially true if it is a gift from a person that you deem special to you.
Some of the available designs for a pendant include those that are heart shaped, gem encrusted, and one that is shaped in the letter that begins your name or the name of your significant other. The ones with the gems can have any stone you wish from rubies and diamonds to your birthstone. Heart shaped ones can be solid or cut out and have gems encrusted on them as well.
Other choices that have been known to be offered in the way of designs are shapes like a star or dragon, circles, and Gothic designs. The star in silver that is worn on the en of a chain can make its wearer feel a bit special because of its shimmer. The one design that is popular with Gothic enthusiasts is the dragon because it is something that many seek to add to their collection. Ones that are circular, or round, can be decorated with gems or engraved in accordance with the preference of the one who will be its wearer.
How then do you actually choose the one that is right for you? First off, do you feel a personal connection to the piece? Does it, as they say, speak to you on some level? After all it is a work of art and as such it should fascinate you in some way.
Of course there are other factors that are involved in the picking of a sterling silver pendant. They include how and where it was made, the percentage of sterling silver it contains, and if it was cast and polished without diminishing the details. Thus ensuring you end up with a piece that you would not be ashamed of wearing or giving.
Author is experienced in jewelry field. In his company (Silver.Ag), he is focusing on jewelry pendants. The Silver. Ag company is long-time established jewelry manufacturer with nearly 120.000 pcs of jewelry physically in stock and over 500.000 satisfied customers worldwide.
Why Backing Up Your Laptop Or Computer Is Advisable
August 31, 2010 | Leave a Comment
Nobody who owns a computer desires to experience some type of computer crash or a virus. The easiest method to prevent data loss is to back up your laptop. Every bit of information that is critical to you needs to be copied and kept in a safe location, so you access it when unexpected problems occur. Copying your computer will not save it from viruses or crashing, but you will have some satisfaction knowing that, no matter what, you’ve still got all of the data you’ll need in a backup medium. It is betterfor all computer users to support some of their files, but the very best answer is usually to backup all files.
During the dawn of computers, backing up files from the computer would not be as easy as it is today. The sole available medium back then was the floppy disk. There were two sizes of floppy disks, the 5 inch and the 3 inch. The volume of data that may be stored on this sort of saving device was limited. It couldn’t hold very much information due to the limited space for saving. Forget about the old days and focus on the present. We’ve got the luxury of saving all data on a personal computer, even software, programs, and accessoriesyou wish to back up. Because of the invention of ZIP drives, DVD-Rs, CD-Rs, flash drives, and external hard disks, life became easier for computer power users. The fascinating evolution of technology, has caused media for computers to become smaller, physically,but also to get bigger in space readily available for backup.
Have you seen the thumb drives? There are specific names employed for this kind of drive, including jump drive, flash drive, and thumb drive. This sort of storage device will keep you wondering how all that information goes onto that small, and compact instrument. Flash drives are merely 2 inches in diameter and weigh under 15 grams. You can place one in your pocket without furnishing you with the discomfort of a bulky pocket. No one will ever notice that you are carrying a pc storage device due to its size. Naturally, there is also a down side to these compact cuties. Should you forget to take one from your pocket and you throw your pants inside the automatic washer, it will likely be damaged by water and will not work anymore.
FTP or file transfer protocol is yet another way of storing information. This can be a little bit complicated compared to the other process stated earlier. You could have a technical know-how in creating one. Consult an IT person if you are curious how FTP works. Or just do your research online to give you a notion about file transfer protocols.
You should never forget that copying your computer ought to be done regularly. It is like brushing our teeth. If you’re not that busy, backup your computer now. You don’t wish to feel sorry for yourself once you discover that everything you’ve stored in your computer for years will likely be gone in only one computer crash.
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Read To Put Money In Small Cap Stocks And Make Triple Digit Profits
August 30, 2010 | Leave a Comment
Want to know what purchasing schemes to use when purchasing stocks that can potentially bring back triple digit additions? In part one of this series, I told you what factors you must consider when buying a small or micro-cap stock. In part two, I’ll reexamine well informed buying strategies when it comes to buying small caps. Rule Number Two: Remove emotions from your buying determinations with a disciplined strategy. Ok, so let’s assume that you’ve done your homework now and noticed a company that you believe will run up at least 60 % or higher over the next year. Decide on a predetermined buying price and do not waver from this price. Period. End of discussion.
Why?
Ok, let’s take a look at hypothetical stock YYY. Company YYY is the industry’s leading innovator in a huge growth industry that has seen the biggest growth spurts in history for the last three trailing quarters, yet the general public still does not know about them. In addition, they have patented technology that lets them protect their first mover advantage and high entry costs into the industry gives them decent barriers to submission. On top of all of this, Company YYY is trading at a ridiculously low P E and a ridiculously low price of $3. In fact, its price would have to appreciate 200 % just to equal the P Es of the giants in the field. You study YYY’s historical price chart and see some volatility, so you make up one’s mind you will wait until the price drops to $2.80 to get in. But in the two days you wait for company YYY’s stock to drop in price; it unexpectedly shoots up to $5.50. Or perhaps it plummets way below your $2.80 buy in price to $2.00. On no new significant news. Depending on what scenario happens, you may be thinking “I ‘m so dumb not to have bought at $3. I guess I ‘m just going to have to bite the bullet and dive in at $5.50,” or “This is so great. I desired to get in at $2.80. Now it’s so much inexpensive at $2.00 that I ‘m definitely going to buy now.”
Right? Wrong.
Stick to your original plan. If you throw your buying strategy in the trash and make up one’s mind to get in at $5.50, you’re letting emotions drive your decisions instead of logic. If you were only willing to pay $3, why would you possibly be willing to pay 83 % more for the same stock just 48 hours later? And if we consider the second scenario where the stock plummets to $2 a share, don’t you think that this merits more caution instead of haste? Remember, in both hypothetical situations, we are assuming there is “no new significant news” surrounding stock YYY to justify these huge price movements. Under these assumptions, the volatility of the stock is probably occurring because of jumpy day traders taking profits off the board or dumping shares.
But let’s take a nearer look at why letting emotions crawl into your decisions is a bad idea. Let’s look at the situation again where stock YYY blew through your designated buy in price of $2.80 and went to $5.00 in two days. Let’s take on you stick to your guns, wait two weeks, and buy-in when YYY stock finally dips to $2.80. Now employing a stop loss of 15 % against your buy-in price, your sell-out price of the stock is $2.38 versus $4.68 if you had purchased the stock when it spiked up to $5.50. This huge gap in stop-loss price points may very well be the difference between holding on to the stock and earning 80 % gains versus selling out 48 hours later and sensing confused as to whether or not you should buy back in.
To summarize, never throw out a pre-designated buying price for a bad stock due to unexpected price spikes. If this happens, stick to your original buying strategy if you still believe in the stock and wait until volatility decreases before you buy at your pre-designated buy-in price. Remember, there are literally hundreds of stocks every year that make rapid double or triple digit gains. If it turns out that you missed out on one chance because the stock soared right through your buy in price and kept soaring higher or the stock’s price took a sudden plunge, know that there are hundreds of other opportunities waiting to be discovered. If the stock you loved so much never returns to your buy-in price, move on. You’ll find a respectable stock to purchase in time.
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Compact History Of Stocks, Finance And Equity
August 30, 2010 | Leave a Comment
The World Bank claims that some two billion of the world’s citizens live on $1 per day or less! That fact absolutely traumatized me. With this statistic in mind it becomes significant to focus on all of the things that have helped as money over the history of civilization. Aztecs used Cocoa beans, Norwegians used Butter and dried cod, many Indian tribes used animal skins and some of the other colonists used grains. It’s worth thinking about this the next time you pick up your paycheck. The word “salary” is derived from the word SALT, which is what was the key currency of the North Africans for hundreds of years. SALT was a key commodity substance used for preserving food.
A butter and dried cod banking system? Reconciling your monthly bank statement must have been very messy! .
I’ll take bear markets for $100 please Alec! .
Anybody want to reckon how we came to describe and define a BEAR market? Well, there is a argumentation on this one as most citizenries sense that when a Bear makes a killing its claws go from up to down. However, bear markets are bone-chilling experiences. Markets always return much faster than they rise! Anyway, the word “arctic” is derived from “arktos” which just so happens to be the Greek word for “BEAR!” And that is how it is believed that the word BEAR came to draw a declining market. Brrrrrrrrrrr. .
Now you know! .
Ok, why the heck do they call it Wall Street anyway? .
It was the Dutch you see. They had just travelled to Manhattan and had nowhere to make a dyke, so instead they constructed a wall. This was in 1653, and it wasn’t meant to keep water out, but was made to keep out the British and Indians. Easy enough for the Dutch, just a 12 foot high wood stockade that ran from river to river.
Then in 1685 they laid out Wall Street along the line of the stockade.
Now you know.
These days the modal volume on the New York Stock Exchange is several hundred million shares. We have even seen numerous days when the volume exceeded over one billion shares. To give you an idea of how far we have come, the last date on record when the New York Stock Exchange traded in less than one million shares was October 10, 1953. The very first day that the BIG BOARD traded over one million shares was December 15, 1886. On Black Tuesday, the BIG CRASH on 10 29 29 the market launched Record volume of 16 million shares! .
Now you know.
Gosh! One Billion Shares a day…. that’s a great deal of dried cod! .
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Tips To Obtain The Right Skills For Online Forex Currency Trading
August 28, 2010 | Leave a Comment
Online Forex currency trading is rapidly becoming a popular way of investing but it is not for the unskilled. Without the proper training, you can easily lose your investment. It helps to have the right information and education before you make that first trade.
Ok. So, where do you go to get the right skills in order to not lose your shirt? Here are a few suggestions.
The easiest way to find out what you need to know about currency trading is to take an online course. It’s cost effective and convenient way to learn the fundamentals. There are many of the currency trading web sites that offer potential traders free tutorials and demos on how to get going in online Forex trading. The web sites may ask for a membership or tuition fee before you are granted access to complete tutorials.
When you take the online courses you will learn such things as day trading, position trading and swing trading. You will get the basics on key investment theories specifically for currencies.
There are some online courses that offer tailored lessons for you. You are partnered with a mentor who is a successful trader. He or she will provide specialized training materials and simulations.
If you prefer to study on your own, there are many complete home study courses in books and on CDs that focus on currency trading. These courses typically cover the basics of trading and taxes and provide important insight that will help you earn your living as an online trader.
It’s important to know that the value of a country’s currency is affected by its political and economic situation. It helps to know what’s happening in those countries in order to make sound trading decisions.
Always stay on top of world events by reading all the publications you can, watching the news, and checking out events online. This will give you a trading advantage. Be sure to check up on inflation rates, changes in governments and tax laws in the countries of the currency you are trading so you will have the information you need to make wise choices.
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Supernsetips Explain What Does It Take To Become A Share Trader ?
August 27, 2010 | Leave a Comment
It takes a full mental dedication to the chore. It becomes an accomplished path. You can not be a part timer. You cannot work at a regular job and trade stocks successfully. When you adjudicate to make you’re living this way you must be willing to work 365 days a year, 7 days each week, 24 hours every day with no time off. I know.
How do I know? As an exchange fellow member for 17 years and a floor trader I can personally tell you there is no time off. Never. Almost every wakeful here and now is given to thinking about your current places. Where should I sell? Should I move my stop up a bit more? There are 3 more trades I’d like to make, but I need to save some extra cash in case I need it for a margin call. It is hard to pass up a trade that looks as good as XYZ, but I have to hold my trading discipline. And so much more.
These are just a couple of the ideas that run through your head. You are constantly being torn by the natural enemies of care and greed, yet you must hold your equilibrium to try to make dispassionate decisions. The first law of trading is to protect your capital so that any individual trade will not have you going home broke. If you are working a regular job or you own a business you cannot be a trader. One or the other or both of these pursuits will hurt. When I had my brokerage company I did not make one single trade for 8 years because I saw the commitment necessary to be a successful trader.
Why am I telling you all this? Because I don’t want you to mislay your money in the market as so many people do and I especially don’t want you to think you can be a day trader. You can still make money in the market and beat 90 % of the Wall Street experts. Here’s how.
First you must read that you CAN time the market even though your broker and all those “experts” will tell you that you can’t. There is several good timing advisory services that you may subscribe to or you can build up you own method.
Second, don’t believe all that horse wash about research. That is Wall Street smoke and mirrors. Don’t try to pick individual stocks. Stick to no-load mutual funds with a discount broker and buy only the best performing funds during the past 6 and 12 months. When they take leave being in the top 1 % deal them and observe new ones that are going up.
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Very Usefull Stock Investing Rules Any One Successful Investor Should Follow Through Supernsetips
August 24, 2010 | Leave a Comment
There are many significant things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most significant things that I can share with you freed base on many years of trading experience are enumerated below.
1. Purchase low-sell eminent. As simple as this conception appears to be, the vast bulk of investors do the accurate opposite. Your power to consistently purchase low and trade eminent, will determine the achiever, or failure, of your investments. Your rate of return is determined 100 % by when you enter the stock market.
2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is correct and you are incorrect. If the stock market is going up and you are short, the market is right and you are wrong. Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will turn a loss.
3. Every market or stock that goes up will go down and most markets or stocks that have gone down will go up. The more extreme the move up or down, the more uttermost the motion in the opposite direction once the trend changes. This is also known as “the trend always alters rule.”.
4. If you are looking for “grounds” that stocks or markets make large directional moves, you will probably never know for certain. Since we are covering with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move. A huge fault most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market victors only give care about direction and duration, while market losers are obsessed with the whys.
5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late. You need to get positioned before the largest guiding trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.
6. The trend is your ally. Since the trend is the basis of all profit, we need long term trends to make big money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize gains. Contrary to the short term perspective of most investors today, all the big money is made by catching large market motions - not by day trading or short term stock investing.
7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient status to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading “system” in itself.
8. The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect contest model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist. The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn. The combination of superior information for some investors and the usual panic as losses mount caused by purchasing high and selling low for others, creates ineffective markets.
9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people use. If you eliminate optimization, data mining, and other such statistical tricks and data manipulation, most trading ideas are losers.
10. Never trust the advice and or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, news sheet publishing companies, trading authors, etc., unless they trade their own money and have traded successfully for years. Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.
11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too mutual experience.
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