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The Myths and Magic of Stock Trading Archives

November 21, 2006

News of the Trading Stock Magic

One of our many and latest winning stock picks is Nucor Corp. (NUE). NUE is in the Steel and Iron Industry and recently reached its 5% projected target in one day. As of this writing (11/21/06) NUE is up 7.57% after 4 days in trade.

CAUTION: Please....Please....Please understand that we do not get excited because one stock is skyrocketing out of control. This is not why I am reporting this news. Nor do we panic when one stock is radically losing. Objectivity is the key to remaining neutral. Any good system for online stock trading should help you to create an objective position with regard to your portfolio.

Today (11/21/06), our 5th straight block reached its 5% projected gain. It completed this gain in 47 days from start to finish. The average days in trade per block now stands at 55 days which translates to 6.6 blocks per year. When trading in a regular account this example trading platform shows a 36% to 46% compounded yearly gain. If you are trading with a Margin account, the example trading platform shows an 82% to 111% compounded yearly gain.

December 29, 2006

Stock Investing System By Original Design

The latest gold nugget shared by my mentor in trading is one that he has easily repeated 100X's over.

"The original design of any stock investing system should always be honored and respected. Never deviate from the original design of your system."

Discipline is required to abide by the original law of a system. Original law of a stock trading system defines the parameters upon which your stock trading system was established. The parameters specifically determine the capabilities and potential of your system for trading.

The point that bears repeating is that you should never deviate from your system's orignal design. The challenge that inevitably surfaces is the beating heart of the renegade trader that is educated enough to be dangerous. You see the finish line before taking the time to step graciously through the hoops. You see the green flashing lights but fail to notice the yield sign that suggests you slow down enough to fully understand the road ahead.

Here are a few suggestions. Test your system carefully by fully understanding it's design. Control your renegade risk taking enthusiasm long enough to notch experience into your money belt. Take the time to learn how your stock pick system for trading was originally intended to perform. Investigate who it was that created your system and what goal he or she may have intended to reach with their system. Your stock investing system is then likely to be your ally in the shifting sands of time honored successful trading.

February 7, 2007

The Mutual Fund Myth

Listen to what Robert Kiyosaki has to say regarding mutual funds in his recent article published on the Yahoo finance page.

This is precisely why we created an opportunity for those who wish to take control of their own money management. And, in fact, the only time I have taken something from the internet to make a point.

"Mutual funds are a beautifully conceived investment vehicle designed to provide long-term wealth for passive investors. Sadly, over the years, fund managers have been both legally and illegally ripping off investors who count on their investments to provide a college education for their kids or retirement security for themselves. It seems that mutual fund managers, like the managers of our major corporations, have sold their souls for fast money, and have left the investors behind".- Robert Kiyosaki

Robert makes a very clear point in the above statement. The truth is that no one cares more about your money than you do so I would strongly suggest getting a handle on personal money management. Keep your fees for service and the commission of your brokers and move money yourself. Find a simple system for yourself and learn from the people who are the cutting edge financial educators of the world. That's my two cents for today!

February 14, 2007

Stock Trading System Guarantee Of A Lifetime!

So often people ask, "what is the greatest downside for trading stocks?" "Can I lose all my money?"

"Why should I trust anybody, any system, any stock pick?"

After all we've heard the story of Enron and so many others. Understandibly we become dis-enchanted, distrustful, and in some cases borderline paranoid.

Let me just say that the market is not out to get you and your precious wallet. Nor is the market designed to find you in a crowd and take you to the cleaners.

I think of the market like a large grocery store. There are many varieties of products and should you be standing in the fruit and vegetable section it is likely that you will bring home some oranges, apples, and a few bananas. In other words, depending on the advice you may be getting it is likely that you will find yourself in one sector of the market. Now, do we place all our vegetables in one basket or might we consider visiting with other sections of our grocery store? I'll leave you to ponder that question for just a moment.

The market provides tremendous diversity. I always share with people that are intimidated about trading in the market that they need understand one simple concept. The market is nothing but a big store that allows you to buy banking, computers, pizza, oil, and any other product in demand. It is this variety of choices that , in fact, offers a guarantee that the smart investor knows will work in his favor.

Let us consider the question of whether it is possible to lose all your money. The key is to manage risk. Think about this logic for a moment and decide whether this makes sense for you. If you had a portfolio of 10 well established companies do you believe it would be possible for all these companies to simultaneously bankrupt. Diversification in your portfolio is a self empowering guarantee and well advised. Take what the market offers, find a trusted source for information, and be the captain of your own ship. Managing and controlling your own money is your guarantee of a lifetime!

February 22, 2007

Afraid To Invest?

One of my favorite authors and someone who is considered by many to be one of the most talented financial educators of our time has again delivered. Please do go to this Yahoo finance page to recieve a few more gems of wisdom from one of the greatest educators of our time. - Robert Kiyosaki

Consider how it is you invest and what moves through your mind as you decide what investments would be most well suited for your current needs.

Investing in the stock market is most successful when done by someone who has the patience to stay invested even during the downswings. This patience often pays off in the longer term, but without patience a person may pull their money too quickly and end up losing a portion of their money. Your jumpiness adds to the potential risk of investing. Stay resolute and confident in knowing that you have chosen a system for trading that performs consistently.

Robert speaks directly to this very issue in his recently published article, "Fear Can Cost You Money".

Many people simply do not build wealth due to paralyzing fear that keeps them from making important life enhancing decisions to build upon their hard earned capital.

Do read another one of Robert's revealing articles by clicking on the text link in the first paragraph.

March 5, 2007

Some Trading Systems Are Simple.

The following article snippets contain well found wisdom within a basic ideology. I would, however, beg to differ with the comment made within the last paragraph of Kent Pinkerton's article in which the author states that trading systems are complex.

They do not have to be!

There is no requirement for an understanding of technical analysis in some systems and the parameters for a system of trading can be quite simple.


Here is part of the article by Ken Pinkerton on Stock Trading Systems.

You cant make money in the market unless you take a serious approach to trading. To achieve substantial returns on a regular basis, you have to choose a stock trading system that has passed the test of time.

First, let us find out what a trading system means. It is a group of specific parameters that determine entry and exit points for a given equity.

In an effective system, the head rules over the heart. It throws all emotion out of trading. Investors, who fail to cope with losses, often second-guess their decisions and end up losers. If a pre-developed system is followed, system traders need not make any decision as the system is not empirical but automated. Reducing such human inefficiencies yield more profits.

Trading systems are, however, complex. They require a good understanding of technical analysis, the ability to make empirical decisions, and a solid knowledge of how parameters work.

Stock Trading provides detailed information on Stock Trading, Online Stock Trading, Option Stock Trading, Stock Trading Systems and more. Stock Trading is affliated with Swing Stock Trading.

March 6, 2007

No More Anxiety Over Stock Prices

There is far more to this article that I will encourage everyone to understand. The bottom line is that there are an abundance of market forces that will move the price of a stock.

Therein lies the importance of mathematical based systems for trading that objectify the evaluation of stock choices, quantify the historic patterning of an individual stock pick, and remove the traders anxiety over what forces may be playing the most significant role in their stock portfolio's movement. This author, however, presents a thorough overview of the many possibilities for market influence.

Forces that Move Stock Prices
by James Andrews

Stock prices should rise with falling interest rates because it becomes cheaper for companies to finance projects and operations that are funded through borrowing. Lower borrowing costs allow higher earnings which increase the perceived value of a stock. In a low interest rate environment, companies can borrow by issuing corporate bonds, offering rates slightly above the average Treasury rate without incurring excessive borrowing costs. Existing bond holders hang on to their bonds in a falling interest rate environment because the rate of return they are receiving exceeds anything being offered in newly issued bonds. Stocks, commodities and existing bond prices tend to rise in a falling interest rate environment. Borrowing rates, including mortgages, are closely tied to the 10 year Treasury interest rate.

When rates are low, borrowing increases, effectively putting more money into circulation with more dollars chasing after a relatively fixed quantity of stocks, bonds and commodities.


James A. Andrews publishes the Wiser Trader Stocks and Options Newsletter. Site contact, http://www.WiserTrader.com. © 2004 Permission is granted to reproduce this article in print or on your web site so long as this paragraph is included intact.

Article Source: http://EzineArticles.com/?expert=James_Andrews

March 10, 2007

Stock Investing Need Not Be A Full Time Occupation

The following article provides some basics with regards to stock investing but I beg to offer a solution for the seasoned professional as well as the budding trader.

Keep it simple!

Trading should be fun, profitable, and time efficient. Enjoy the endless news and commentary but choose simplicity over endless analysis. Earnings growth potential, company management structure, expansion plans, product developement, etc. are all pieces in a complex and often very puzzling profile for any company you may be studying.

Stock investing need not be a full time occupation! Market anomaly analyzation can take the stress out of over indulging in market babble and deliver a far more profitable time/ROI ratio.

Indispensable Information In Stock Investing
by Nicky Pilkington


Stock market investments present one way for an individual to make money even with a minimum investment. However, several items have to be weighed thoroughly before one pursues such an investment.

There are several options a potential investor has to buy stock, or partial ownership in a company. Probably the most popular is the buy-and-hold approach. Under this strategy, an investor simply holds on to shares regardless of stock price. The shares are eventually sold only after the individual has earned enough to buy a house, secure his/her education, or retire. One benefit to this strategy is that it entails few transaction charges because of the limited stock activity. Buy-and-hold investors are also able to pay lower capital gains taxes on their investment. Other approaches include short-term trading and direct investment plans.

Investors must identify where their target stock is listed and its stock symbol to ease any transaction. Microsoft is listed on the Nasdaq as MSFT, while General Electric and Hewlett-Packard are on the New York Stock Exchange under the symbols GE and HWP respectively. For some non-US companies, UK mobile phone giant Vodafone is listed on the London Stock Exchange as VOD.L, game-maker Nintendo has a Tokyo listing as 7974, and Germanys Siemens AG appears on the Frankfurt market as 723610.F.

First-time market investors will quickly realize how business and economic news influence stock price movement. A sales increase, higher earnings, lawsuits, a management revamp, and a new product or service are among internal factors that can drive share prices. On the other hand, the emergence of new market rivals, a change in government policy and inflation and other economic news are among external factors that can affect stocks.

Todays information technology-driven 'new economy' has made it possible for some companies or particular industries to better take advantage of the market than their counterparts. First-time investors would do well to identify these 'niche' players and consider their stock. However, such selection should still be backed up by research, particularly on a target companys management structure, expansion plans, product development and financial results.

Since stock market investors buy shares in a company expecting to gain, it is imperative then that they review the financial reports of their target companies to determine earnings growth potential. The Securities and Exchange Commission requires these annual disclosures, which are made on different months, as businesses generally do not cover the same calendar or fiscal year. Investors should also note that some companies, such as Sears and other retailers, often have higher earnings in quarters immediately following the holidays.

Find out more about stocks and shares at http://stocksandshares.us

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