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The Winning Mindset For Trading in the Market Archives

November 17, 2006

Roasted On The Market Grill But Still Winning

Today we add another stock pick to the developing block. You will notice on the trading screen that the Limit Buy Order has been placed and is pending. The trade will execute at the opening of the market should the price at opening fall square on the limit buy or below. If the price of NUE (Nucor Corp.) shares are more than the limit buy order the trade will not execute.

Unfortunately we made the mistake of placing an odd number of shares which delayed the execution of this trade. The price then rose above our limit buy price during the time of delay and the trade was not executed. This now becomes a great opportunity to point out that an even number lot will fill more easily within the market environment. Our error and it cost us. This stock jumped considerably in the positive direction and we missed the trade due to our error. You will notice that the trade simply never executes as time passes....

No worries. The truth is that winning in the stock market has never been so easy as it is now.

Make a decision to learn a stock trading system that fits your personality and empower your self to make your own trades.

3 action steps to make your own trade.

1) Determine the amount of money you will spend on each stock

2) Determine the Limit Buy Price

3) Deternmine how many shares you will buy of any given company

November 26, 2006

Stack The Odds To Win In The Stock Market

How do we stack the odds in our favor using online stock picks to win in the stock market?

First we need to realize that the stock market is not the grandest casino of them all. Losing money in the stock market need not be a foregone conclusion. You hear many of the stock trading gurus say that you are likely to lose your money but you can minimize your losses to win 60% of the time.

Here is what Warren Buffet had to say, "The first rule is not to lose”. "The second rule is not to forget the first rule."

I would suggest that you mute the "no pain no gain" ringtone from your mindset. Learning to win in the stock market is fun and easy.

There are several factors that allow a successful stock trader to perform flawlessly using his trading system. Diversification which effectively spreads your capital amongst a group of carefully evaluated stock picks is one critcally important feature. Executing one trade per day over a given period of time will also work to place the odds in your favor. Use time to spread risk and the law of probability is again shining down upon you.

The stock market is only a casino if percieved as such. Stacking the odds in your favor certainly requires attention. Think of the card counter that the casinos dread to see enter their house. The reason they exile the card counter is becase he is able to place the odds in his favor with proper preparation. Keep 100 times your bet available and use the memory portion of the brain and you stack the odds 15 to 1 in your favor. The casinos don't like that because then you beat their 3 to 1 odds that they use to take money from most of the people that visit their facility.

The use of a good system for stock trading and the discipline to navigate through unchartered waters of your stock trading emotions will most certainly prove that losing in the market need not be accepted as normal.

December 6, 2006

A Stock Trading System With A Golden Rule

Have you ever considered the possibility that getting rich is very predictable and need not be risky?

Any system for trading need be carefully scrutinized to determine whether risk management is built into it's basic structure. However, one distinguishing characteristic that many of us fail to consider is ourselves. Who are we as an investor? What type of investor are we?

Every system for stock trading requires a personality well suited for the rigors of investing.

Robert Kiyosaki, the man who some people consider to be one of the top financial educators in the world speaks directly to this issue in the book he co-authored with Donald Trump, "Why We Want You To Be Rich".

He identifies three types of investors in the world.

People who do not invest at all. People who invest not to lose. People who invest to win.

"People who do not invest at all expect their family, the company they work for or their government to take care of them once their working days are over. People who invest not to lose generally invest in what they think are safe investments. This is the vast majority of investors. These people have the saver's mentality when it comes to investing. People who invest to win are willing to study more, want more control and invest for higher returns." - Robert Kiyosake

A good system for trading will always have one golden rule and that is you!

December 8, 2006

Trading on Margin: Is It Risky Or Is It Leverage?

Most stock trading experts would agree that trading on margin is not for the faint of heart. Trading on margin in the best of circumstances gives you tremendous leverage. Your brokerage house will allow you to use their money to increase your buying power. Far more stock can then be purchased thereby increasing your position or holdings within a company. Many investors would steer clear of taking loans to leverage their positions given the volatile nature of the stock market. It certainly would again depend on the type of investor that you consider yourself to be.

The purest definition of leverage is to do more with less. A confident investor with a calculated approach to trading and a well practiced system for trading is likely to succeed.

Trading on margin can be an excellent tool for building wealth.

Go into each trade with absolute confidence. Find a system for trading that makes sense for your personality and always take a winning mindset into the game of high stakes money. Your financial education will be your greatest lever. As a well trained investor you can gain far higher returns with far less risk and much less money.

January 18, 2007

Money Management Is Essential To Trading In the Stock Market

Money management is an essential component for trading in the stock market. There can be no excuse for remaining absent minded about your money management skills. Educate yourself and move into your trading positions with an understanding and preset strategy for capital distribution. Each trader should recognize the importance of knowing how much to buy and sell and how many positions to hold at any one time.

Your system for trading need accomodate this all important idea considering preservation of capital and stabalization of account balance. How disciplined you are as a trader will be reflected in how radical the oscillations of equity may be. Manage the risk/reward ratio with a measure of caution as you take a position.

Your system for evaluation of stock choices is the key tactical construct in your money management implementation.

January 21, 2007

Elevate Your Trading Skills

Profits taken from the market can cause stress. Hmmm.... This is a stress with which I could live. Profiting with CMAA may initially cause stress (from profiting) but once the first two months have passed you will gain the required confidence. None the less here is a few gems of wisdom.

"Stop looking at losses as problems and start viewing them as opportunities to elevate yourself to the next plateau." ~ Tom Basso

"Developing “The Trader’s Mindset” is a must for trading success, but this can take some time. This is not an area where you can take a shortcut or learn a formula. You usually develop this mindset by actually trading and learning from the experiences you have while trading. A developed “Trader’s Mindset” can help you handle account draw-downs, losses and profits. Yes, profits or winning can actually cause stress!"~Trading Psychology -- "The Trader's Mindset"
By Bennett McDowell

January 25, 2007

What Does it Take to be a Trader?

Do new traders really anticipate that winning in the stock market is not beyond their reach. I really don't know the answer to that. I would contend that most people, however, do not understand what it takes to win. What is the mindset? What is the conviction that is required of the trader? It is clearly more than initially meets the eye. I understood very little about this mental toughness required to face the Goliath known as the stock market.

Most importantly leave the lottery mentality in your local ticket providers storefront. Winning in the stock market is simple but it is not always easy. Your disciplined mindset and chosen system for trading will guide you to the hallowed halls of that 10% winners circle where desire and steadfastness are your measure of success. The rewards are tremendous for those who end up in the 10% winners group. Financial rewards and freedom to live as you wish can be yours and yes it is available for all of us.

A good system for trading is virtually automatic, requiring very little of your time once the system is designed and in place - leaving you with all the time in the world to do what you really want to do. The greatest fun lies in learning about yourself along the way.

February 3, 2007

The "Greed Factor"

Scattered throughout the various posts I have made to this site I have made mention of the "greed factor". The "greed factor" gets most of us in trouble as we as human beings always seem to want more and more no matter what it is that we are consuming.

Any market where money moves quickly through the bowels of a trader's account can be challenging to manage. The key concept to always keep in mind is that being greedy does not create a long lasting wealth building strategy when using the stock market. In fact, poor money management will run you into trouble.

Use intelligent split ratios, diversification, and time to spread your risk. Take what the market gives you and learn to exit without hesitation should a profit reveal itself in a fast moving market.

Yesterday in the company's account one stock within the developing block moved well over 23 points. This translated into a profit for the entire block in the range of 9-10%. In my next post I will show the spreadsheet to help you understand better the blocking method for trading that we employ to secure consistent profit. The most important thing to recognize is the importance of taking a consistent and conservative gain while disciplining yourself to be happy with what the market has yielded for the day and move on.

Tomorrow is another day and more profit is on it's way!

February 17, 2007

Performance Data Speaks To Winners

In other posts, I have mentioned the importance of checking the data to support whatever advice you have been given. A trusted source for information is not always a family member, friend, and least likely your stock broker. I do apologize to all my stock broker friends for this piece of published truth. However, stock picks if they are valuable news, have little to do with advice and more to do with hard supportive and evaluative data. This is the second essential ingredient to your lifetime guaranntee and will help you browse the isles of your friendly global grocery (world markets) with more confidence.

Good stock picks take a tremendous amount of work to evaluate amongst the hundreds of choices available. Think about how many original inventors of stock trading systems have built their fortune on their software package, latest ideology, or mathematical formula. When asked about their actual data you are likely to get some fast talk about percentages, a simulated demo, and a promise. You may even bring home a fancy package worth thousands of dollars and spend the next 3 months struggling to understand it's contents. But where is the proof and the guarantee?

If you ask for a guarantee the neccesary disclaimer will bear immediate mention. We have all read or heard it. "Future results cannot be predicted or based upon past performance."

I would agree that disclaimers are neccessary and certainly required to prevent unrealistic expectation and manage the legal requirement imposed by regulation. However, remember that history of a stocks performance through time is an incredibly important feature of proper evaluation. Establishing whether an anomaly repeats itself through time establishes one very important character profile for that stock. Patterns for behavior of a particular stock can be observed and measured. This repetitive historic patterning can then establish a precedent for whether there exists the possiblity that winning with any given stock pick and it's taylored systm for trading is likely. Your guarantee again need be self-empowered. Ask the right questions and the right answers will appear as if by magic.

Manage your own money, check the data, and use an intelligent stock trading system to create your guarantee of a lifetime.

March 5, 2007

Stock Markets Worldwide Relatively Unaffected

Turning to the stock markets…

In London, the FTSE 100 hit a new six-year high on Friday, climbing 36 points to end the week at 6,382, as the average was boosted by strength in the banking sector. For a full market report, see: London market close.

On the Continent, the CAC-40 ended the day at 5,692, a 37-point gain, whilst the Frankfurt DAX-30 closed 34 points higher, at 6,911.

Across the Atlantic, stocks closed lower as the price of crude continued to rise. The Dow Jones industrial index was down 56 points, at 12,580. The tech-heavy Nasdaq lost 28 points to close at 2,459. And the S&P 500 ended the week 10 points weaker, at 1,438.

In Asia, the Hang Seng fell 84 points to close at 20,593 as China Mobile weighed. The Nikkei was closed for a holiday today.

Crude oil had fallen nearly 1% to $59.36 this morning. In London, Brent spot was at $57.48.

Spot gold hit its highest level since mid-July - $668.20 - in Asia trading but had slipped back to $665.75 this morning. Silver, meanwhile, was unchanged at $13.84.

And in London this morning, Vodafone shares were up by as much as 1.8% following news that the mobile telecoms company had been successful in its bid for Indian firm Hutchinson Essar.

March 16, 2007

What Is A Block Trading System?

Many of you have asked me to define a "block trading system" for trading in the stock market.

This post will dedicate itself to a simple explanation. First, understand that experience using this system for trading cannot be replaced by explanation. Secondly, any system you choose for trading in the market need be tested and paper traded to grow comfortable and confident with the strategies built into the system. Know your system intimately!

The block trading system used by most members of the EZ Trade pro community is built upon four cornerstones.

1) Simplicity
2) Safety
3) Time Efficiency
4) Profitability

Blocking allows you to build a block of 10 highly refined stock picks (provided by CMAA) over a 4-5 week period. Your block can be viewed as a mini mutual fund that you have built for yourself using the news that is published by CMAA. Simplicity lies in the fact that your block will manage quite well without your watchful eyes. A block of well evaluated stock choices in essence becomes a fortress for securing and growing your money without the vigilance required to monitor your day trades or the need to be in constant contact with your stock broker. This system of trading is designed to take the work out of the exhaustive trading process. Each stock joins the next in building a portfolio that protects itself through diversification amongst your stock picks. Your block of stocks will be built over time and then simply observed over the next 2-3 weeks as your portfolio reaches towards the target gain built into the original design of the system.

Simplicity!

The next post will address the many safety features that are built into the block trading system and how using such a system creates a strategic advantage for the trader.

March 19, 2007

Safety Built Into Block Trading

Safety should always be built into your system for trading. Most traders speak about safety in terms of managing risk. How many times have you heard, "you will lose 40% of the time with our system but your wins will outperform your losses".

Those odds may work for some of you but I would choose not to trade the above mentioned table stakes. Your mindset need always be focused on winnning and designing a plan that heavily weighs the table stakes in your favor. Let me explain.

Two primary safety features that enhance the already existing safety built into CMAA (Conductive Market Anomaly Analysis) are spreading risk over time and the split ratio.

Here is a great video that will help you better understand the Block Trading system.

The split ratio should always be carefully evaluated so that you know exactly how much money you will be using for each stock purchase. You are using individual stock choices to build your portfolio and it is important to know what you will spend on each stock choice that is added to the block. You are managing your own money. You are, in essence, building a mini mutual fund. Your split ratio may shift depending upon the amount of money you have to spend on your stock portfolio. However, you are consistently spreading your capital over the stock picks in your block. Let's take an example.

If you had $20,000.00 to spend on building your stock portfolio then you might consider a 1/10th split ratio. $2000.00 would then be used for each of your individual stock picks. You are spreading your money by equally weighting your money amongst the 10 stocks in your portfolio.

Another distinct feature of the block trading system allows time to spread risk. Your carefully evaluated stock picks are placed into your block over a 4-5 week period. Time then becomes your ally as the market is forever oscillating in responce to market news and other manipulations that effect market temperance.

A Block trading system allows you to stay safe with your money as a priority.

About The Winning Mindset For Trading in the Market

This page contains an archive of all entries posted to Trade Easy Now in the The Winning Mindset For Trading in the Market category. They are listed from oldest to newest.

The Myths and Magic of Stock Trading is the previous category.

Many more can be found on the main index page or by looking through the archives.

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