Looking back to go forward

March 4, 2015 by
Image courtesy of renjith krishnan from freedigitalphotos.net

Image courtesy of renjith krishnan from freedigitalphotos.net

History tends to repeat itself. So when you develop your stock trading plan it is imperative you “back test” your plan to see how it would have performed in the past. It should be tested in both bullish (increasing) or bearish (decreasing) markets to determine the plan’s performance. Back testing can display the risk you are taking with your money. Once you have a solid plan, you can change one rule at a time to see if you can improve performance. But remember you have to back test the changed plan in all different types of markets, all over again. It is a great way to “dial in” your plan by attempting to lower your risk and increase your rewards.

Click like if you have a trading plan.

Filed Under: Stock Market Tagged With: , , , , ,

What type are you?

February 25, 2015 by
Image courtesy of nongpimmy from freedigitalphotos.net

Image courtesy of nongpimmy from freedigitalphotos.net

Stock traders typically fall into two broad types. Most traders start out as a discretionary trader, mostly relying on a combination of intuition and knowledge to discover high-probability trades. A discretionary trader will follow a trading plan but really goes with their gut on whether or not to place the trade.

The other type of trader is a systems trader. A systems trader will set up absolute rules to follow and will follow them. This type of trading can lend itself to some trade automation by following “if, then” rules. With this type of trading there is no “gut” feeling it is all driven by rules.

Which type of trader are you? Please comment.

Filed Under: Stock Market Tagged With: , , , ,

Know your levels

February 11, 2015 by

An important part of stock trading is conducting technical analysis.  This analysis must include support and resistance levels.  These are important beSupport levelscause they tell you what range a stock’s value has historically traded at.

The support level is the price at which the stock generally does not go below.  It is where the demand for the stock keeps the price from going any lower.  Of course support breaks can happen, (bummer L) which will then create another support at a lower price point.

The resistance level is the top price for a stock.  It is expected that the price will not rise any higher.  Again a resistance break can happen,  (Yay! J) which will create a higher top price.

Know these levels and use them in your technical analysis so you can win!

Click like if you use levels in your technical analysis!

 

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One Simple Trade at a 73% WIN PERCENTAGE. Interested?

February 4, 2015 by

 

Image courtesy of ddpavumba from www.freedigitalphotos.net

Image courtesy of ddpavumba from www.freedigitalphotos.net

It is called “The Bull” and it is NOT full of it.  This Thursday at 7:30pm join our FREE webinar where we will go over this simple stock option trade that really seems too good to be true.  But it isn’t, here are the highlights:

-No Technical Analysis!

-No Searching for Stocks!

-No Adjustments!

This trade only needs to be checked once a day, just like making your bed in the morning.   This would be an excellent investment vehicle for your IRA retirement accounts or really any account that you want to grow with minimal interaction.

What is the WIN PERCENTAGE of your trades?  Please share.

 

Filed Under: Money Management, Stock Market Tagged With: , , , , , , , , ,

Test the water before you jump in.

January 28, 2015 by
Image courtesy of by tratong from freedigitalphotos.net

Image courtesy of by tratong from freedigitalphotos.net

Paper trading allows you to swim in the sea of the stock market without risking any of your money.  It allows you to try out trading strategies for FREE!  These accounts will use the current stock market conditions to reveal your results.  This is a fantastic tool to help you develop a written trading plan and get prepared to fund your stock market trading.

A word of caution, paper trading can seem very easy since there isn’t any real money on the line.  If you don’t take it seriously and simulate trades that you intend on executing, it will be a waste of time.  Wade slowly and tread carefully.

Have you used paper trading and has it helped improve your trading?  Please comment.

 

Filed Under: Stock Market Tagged With: , , ,