Tag Archive: Stocks


Traders Need Discipline

Filed Under: Volume Trading Stocks by Don Weststein — Comments Off
June 2, 2010

If you have trade trading and you notice that you aren’t really getting the results you wanted, you should probably think about if you are trading with enough discipline. Discipline is actually one of the most important abilities when it comes to trading.

There are already a lot of web sites writing about what you need to succeed as a trader, for example the Forex Trading Secrets. There you can read about some of the most important things to consider if you want to become a profitable trader.

Lack of discipline when trading will lead to losses, sometimes considerable losses. To be successful at trading you have to have a trading plan, and you have to stick to it. This is where the discipline comes in. If you have a plan, but don’t stick to it, it’s worthless. This is probably the most common error when trading.

Make sure that you have a solid and working trading plan. Consider what to do if you are wrong when trading. If you are starting to lose money. When should you leave your position? This is very important since only in this way, you are able to cut your losses early and go on to more profitable positions. If you don’t decide when to cut your losses before taking a position, the chances are that you will hold on to this position way to long.

When following your plan, remember that you have already thought about all problems that will and can arise. Therefore you have to really follow the plan. Don’t think that you know better than the plan. Sell when you have planned to sell. If you don’t you are really not doing disciplined trading and you will probably lose more money than you win.

If you want more information about trading, and especially about the forex trading secrets visit this site.

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How to Pick Out the Good Stock Tips from the Bad

Filed Under: Stocks by Don Weststein — Comments Off
March 18, 2010

Have you been paying attention to what has taken place in the stock market for the past year? The answer is most likely “yes.” However, just in case you’ve been hiding under a rock for the past 12 months, the market has been up over 65%. This is an amazing number, one that has been based on the optimism of an economic recovery, which, in turn, has been backed by the Federal Reserve and stimulus measures. There’s one thing to keep in mind, though. The Federal Reserve will not be assisting with Mortgage-Backed Securities come April 1, 2010. Therefore, the market will indirectly be forced to stand on its own two feet again. Will it be able to maintain such an amazing run? Probably not. But that shouldn’t matter.

What many people don’t realize is that not all stocks trade with the market. In most cases, stocks move in regards to what its sector is doing. Of course, if there is any individual news, such as earnings, buybacks, bankruptcy, and so on, then that stock might see tremendous swings. And if it’s a market leader, such as a Cisco Systems for technology, then that news has the ability to move an entire sector.

All of the above information should be taken into consideration when you’re watching an economist on CNBC or Bloomberg giving advice. More importantly, it’s imperative that you’re able to tell the good stock tips from the bad ones. There are several ways to go about doing this. The first thing you need to do – after writing down the ticker symbol – is to search that company’s financial information. Why did the economist say this stock price is likely to rise? Is it in a hot sector? Are earnings expected to improve? Is the company buying back shares? Is there insider buying? Has a competitor of theirs taken a fall?

Also look for the following: cash, debt, operating margins, profit margins, operating cash flow, PE ratio, and PEG ratio. While what you find on a message board should usually be taken with a grain of salt, you will sometimes find a few knowledgeable individuals. If they can backup their arguments with facts and data, consider looking into more about what they are saying.

In most cases, you’re best off doing your own due diligence prior to looking around for stock tips help and making a stock selection. That said, there are times when stock tips can make you a boatload of money. All the tips listed above are important; however, the most important factor when deciding to listen to someone or not is to check their track record.

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What is Stock Option Tradings?

Filed Under: Uncategorized by Don Weststein — Comments Off
February 24, 2010
The stock market has many facets and areas. One of these areas is the stock option trading. Seen by many as an alternative to the more usual stock trading, this trade provides higher leverage at a lower capital. However, options and stocks are very different from each other. A stock gives its holder ownership, regardless how small the company is. An option, on the other hand, gives the investor the right to sell or buy a stock before the expiration date at its strike price. In trading options, you can either buy a call or a put. The call gives you the right to buy a stock before the expiration date; the put gives you the right to sell a stock.
Stock option trading is perused by individuals who are afraid that the value of the stocks will fall or rise. So instead of buying stocks, he or she buys the option to buy or sell the stock before its value changes. If the stock’s value falls and the investor buys the option to sell a stock, he or she can still sell the stock at the higher price (and not the reduced value stock). In a way, this form of trading is like gambling, more so than buying stocks. When you buy stocks, everyone can win. Buying options, however, is similar to betting on a horse in a race.
Stock trading is not recommended for beginners. The main objective of this option trading is determining which stock will rise or fall and using this information to bet on the right market. There are stock market programs that can determine the direction of the stocks and can predict stock trends, although these tools can only be properly utilized by those who have extensive knowledge of the stock market. While stock option trading seems like a more profitable arena, beginners and stock neophyte should stick with the safer, more predictable arena of buying stocks.

The stock market has many facets and areas. One of these areas is the stock option trading. Seen by many as an alternative to the more usual stock trading, this trade provides higher leverage at a lower capital. However, options and stocks are very different from each other. A stock gives its holder ownership, regardless how small the company is. An option, on the other hand, gives the investor the right to sell or buy a stock before the expiration date at its strike price. In trading options, you can either buy a call or a put. The call gives you the right to buy a stock before the expiration date; the put gives you the right to sell a stock.

Stock option trading is perused by individuals who are afraid that the value of the stocks will fall or rise. So instead of buying stocks, he or she buys the option to buy or sell the stock before its value changes. If the stock’s value falls and the investor buys the option to sell a stock, he or she can still sell the stock at the higher price (and not the reduced value stock). In a way, this form of trading is like gambling, more so than buying stocks. When you buy stocks, everyone can win. Buying options, however, is similar to betting on a horse in a race.

Stock trading is not recommended for beginners. The main objective of this option trading is determining which stock will rise or fall and using this information to bet on the right market. There are stock market programs that can determine the direction of the stocks and can predict stock trends, although these tools can only be properly utilized by those who have extensive knowledge of the stock market. While stock option trading seems like a more profitable arena, beginners and stock neophyte should stick with the safer, more predictable arena of buying stocks.

Related articles:

- stock investment software

- best stock software

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To The People Who Panicked In The Stock Market 2008

Filed Under: Stocks by — Comments Off
November 17, 2009

Last year was a terrible year for stocks.  By terrible I mean jump out the window bad.  The thing that people do not realize is that all the media are bandwagon jumpers and it is always really good or really bad.  The hard thing to do is to avoid listening to this panic.  Many people pulled out there money last year when the Dow was at a recent low.

They then proceed to miss out on the huge gains this year. Why?  Impatience, panic, listening to the wrong people.

Most people do what they are told and many struggle to come up with an original thought.  The media talks about why everything is awful and compounds the problem.  What they do not say is what is costly.

The US is a stable country that over time will produce stable results.  Anything seen as a huge jump or decline will have a correction coming in the near future.  Just look at houses.  Did people really think they could get 10 -20 % increases each year in their home value?  I hope not, but they did.  Do the math at that rate your $100,000 would be worth a million in less than 20 years.  Honestly do you believe that?

Well good no one should.  But that is the nonsense people believe because they do not think about it that way.  Simple history and simple math. Does it make sense?  Well if it does not you better ask more questions.  Its really funny how the analysts and media talk about how great housing was and the investment it could be. Just look at the numbers though and since the 1930′s or so housing has averaged about a 3% increase each year.  Pretty normal would be up to 5% with some near 0% or negative.  So 10 – 20% a year was nuts and people should have seen it coming.

While the stocks just kinda fell off the roof, the opposite should of been seen.  Did they really need to fall that far?  The Dow went from 14000 and some change to 6700 or so.  Did that make sense either?  No, well then buy some stocks.

See people need to make moves on stuff that does not make sense.  Just look at the Dow now, over 10000.  Most people still were on the sidelines at 8000.  Now they get back in the game when they should have been in all the time.

Timing the market will give you a heart attack.  Continually invest and see what happens.  Long term growth.  Not fancy but simple.

On a side note, sometimes people need their money right away and should take it out of the market. However, I questions why so much was in there in the first place if they need it right away.

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