Traders, Defend Against the Dreaded Death Spiral.

 
It has often been said that there is only two ways to get hurt really bad on a stock trade, getting caught in a "death spiral" by not using DTM: Decisive Trade Management in the way of stop loses and having a stock halted on you. Halts you have zero control over. Death spirals are of your own making if you do not practice the use of stop loses. Capital Preservation It is my firm belief that capital preservation is one of, if not the single most important thing a trader has to concentrate on. It is also my belief that it is always better to error on the side of safety or caution, in general this all comes under DTM: Decisive Trade Management....
 

Rebalance And Diversify

 
The stock market has not been very kind to your investments lately. Your broker knows this so you may have received a call from him suggesting it is time to 'rebalance and diversify' your portfolio. What does this really mean? He wants you to sell some of your holdings and buy something else. Probably sell stocks and buy bonds "because of market uncertainty". Sounds good, but it really means he needs some commission and you are "it". Yes, I agree it may be time to sell all your stocks and mutual funds and put everything in a money market account until this bear market is over....
 

VooDoo Training For the Stock Market

 
If you go to Haiti or other places in the Caribbean you may run into the Voodoo tradition of magic. There are long and mostly noisy rituals with the medicine man spouting words that bring great power and conjure up whatever it is the supplicant desires. Great amounts of smoke and mirrors. Does this remind you of anything? I hear the mesmerizing words of my broker telling me about a wonderful stock. He produces multicolored charts and graphs that dazzle my eyes. His chanting is "BUY, BUY, BUY"...
 

Trade Stocks for Real

 
I read a comment by a forum member on another site earlier today that suggested that every investor should back test their system for at least twenty years. I disagree and will now tell you why. Back testing and paper trading seem to be the most over emphasized techniques offered by market theorists, educational elite, market novices and/or market fakes. While learning the pure basics, I can see why a novice investor may want to paper trade; to see the results of the developing system but I will warn that these results are completely false....
 

Is the Stock Market for You?

 
Many people would like to diversify their portfolios to expand their holdings. Making it big in the stock market has been a dream for many people who want to strike it rich. Many movies and books have been made portraying the ins and outs of the stock market, for some, dealing with the stock market can be very complex and complicated. There are many things needed to be understood and learned. In this article, a short overview will be provided to better understand the stock market and see the stock market is an option you would like to try....
 

The Three Little Pigs Went to the Stock Market

 
Three little pigs went to the market to stockup for the future. The first little pig liked chips so he went tothe DOW market. He was told by everyone youcould always rely on their products. They werealways good. The manager told him you could putthem away and forget about them. The second little pig liked spicy things. Heshopped at the NASDAQ market where they hadunusual products. He said that his purchaseswere good to put away even though they had somestrange ingredients. He took his home and saidhe did not need to worry about them even thoughothers had told him to be careful....
 

The Elephant

 
Four blind men were asked to give a description of an elephant. They had not seen one or ever encountered such a beast. One grabbed hold of its tail. Another put his arms around a leg. The third gripped its trunk and the fourth walked into the side. The description given by each one was correct and accurate except it did not describe the elephant's true form. Each man was right and each man was wrong. We now have some equally blind men trying to describe what is happening in our economy and the stock market - economists, brokers, bankers and financial planners....
 

Learn to Calculate a Stock's Pivot Point

 
Stocks breakout from properly formed bases everyday but many investors don't understand how to locate a pivot point or what patterns to study that may contain this very important buy signal. A pivot point can be described as the optimal buy point or the area at the end of a familiar base pattern where the stock breaks out into new high territory. William O'Neil, the founder of Investor's Business Daily is considered the pioneer of the pivot point in modern times. As Jesse Livermore explains in his book (1941), the pivot point can also be described as the point of least resistance....
 

Stocks & Oil, Sat Jun 18th, 2005

 
Both the stock market and oil prices rallied recently, which seems to be a paradox, because high oil prices are negative for earnings (i. e. a higher production cost and a higher consumer tax). However, the stock market was worried about another "soft patch," of slower economic growth, and the sharp rise in oil prices suggest the U. S. economy is still expanding at above trend growth. The two charts below are same period daily charts of SPX and OIH. The short-term technical indicators suggest SPX is near a top, e....
 

Boiler Room 7/17/00

 
On Friday or Saturday evening my wife gets a movie from Block Buster and after dinner we sit, hold hands and watch. This week she brought back one that I think every investor or anyone contemplating investing in the market should see. It is called "Boiler Room". How many times have you been called out of the blue by some no-name broker who wants to make you rich provided you buy shares in this great new issue or some stock that is just about to "take off". Usually they start off with do I remember he called me 6 months ago and recommended so-and-so issue that is currently in the news because it has gone up 100 or 200%....
 

Overvalued & Underbought

 
With all the bad news that has been dumped upon the economy for some reason the stock market is going up. Why? The SEC (Securities and Exchange Commission) has just set up new guidelines for core earnings. No more proforma computations. You know what proforma means - the company CEO or Treasurer waves his magic wand and says this is what I expect to appear as soon as I let the genii out of the bottle. And pigs can fly. These imaginary numbers may give his company a Price/Earnings ration of 20 which is pretty good by today's standards....
 
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