Stock Trading - Daddy, Why Arent We Rich?

 
One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Daddy, why aren't we rich?" He looked his child in the eye, and thought to himself, what a great question - Why aren't we rich? As she stood there expectantly waiting for an answer, he struggled to come to terms with the realization that, although he had focused his complete attention on trying to create wealth for more than 10 years, he had never actually made any real headway....
 

Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity

 
That's why the most important aspect of momentum trading is the knowledge FILTER you employ to make your buy and sell decisions. There are many "fantastic" stock systems and trading strategies outhere, but you need to test them in order to discover which ones help you the most. That's part of your homework as a stocktrader. Test, test and test again. Complicated online trading strategies that rely on a "boat load" of technical analysis indicators can make you slow, and being slow when trading hot momentum stocks can be as dangerous as not knowing what to do in the first place....
 

Cash

 
Your broker never wants you to be in cash. You might take it out or invest it in something else. "Don't worry, the market always comes back." Yes, and pigs can fly. Fund managers are even worse. Because I recommend selling out temporarily and going to cash does not mean I don't have a long-term program. It means I don't want to participate in a down market. CASH IS A POSITION. It is the same as owning Vanguard Index 500 when the market is going up and being in a Money Market Fund earning interest while the market is going down, but not losing your principle....
 

Never Fall In Love!

 
Recently I watched my favorite football team lose a vital game. I simply love this team. I became so emotional about it; I thought "?this isn't good for my health". Can you believe that, but that's how we get when we are passionate. I simply couldn't believe (I didn't want to believe) they could lose. However, as a committed fan, I was going all the way with them. If they were going down, I was going down with them. After all, you don't give up on your team simply because they don't win every game....
 

Market Timing

 
Every broker and financial planner will tell you that you cannot time the stock market. I saw John Bogle, the great seer of Vanguard, on CNBC saying it can't be done. Of course, it is easy to understand why he and every other mutual fund manager would say that as they would have a problem managing huge inflows and outflows of money and he was buying and holding during the 18-year bull from 1982 to 2000. Every successful hedge fund managers knows that Buy and Hold is death for capital investment....
 

Stock Analysis

 
I receive emails from Morningstar. This company provides statistics and analysis of just about every publicly traded stock company you can think of as well as voluminous information on mutual funds around the world. You can ask them about a company's sales, management, marketing plan, their performance within a corporate sector, ratios of all kinds, etc, etc. The have it. After you have gleaned all these facts and analyzed them there is still one unanswered question. If I buy this equity will it go up?...
 

Red, Green, Yellow - or - Stop, Go, Go Very Fast: Which Describes Your Online Trading?

 
Ever notice how behavior in one area of life can apply to behavior in other areas of life? For example, I've noticed a number of things while driving that apply to online trading. One of them is regarding how people behave toward traffic signals. In the USA, where I live, all the traffic lights are red, yellow, green - red for stop, yellow for slow down or caution and green for go. The lights always change in order from red to yellow to greenand back again to red after a time. How drivers relate to the changing lights is NOT always the same....
 

Attitude Is [Almost] Everything

 
I often play a little game with myself when I have to go shopping; to the post office or on other errands. Sometimes I will just go about my business and make little comment or eye contact with the person serving me. Other times I will smile and talk to the person. Ask them how they are. Even make a joke! The difference is incredible. And it is amazing what affect it has on both them and me. If I take the effort to engage the person in a conversation and make eye contact - almost without exception their face lights up, they smile and are friendly back to me....
 

Dividend Reinvestment Plans: Investing on Automatic Pilot

 
If you're like many investors who squander those small dividend checks from your stock portfolio, a Dividend Reinvestment Plan (DRP) might be just what you need. Just as its name implies, a Dividend Reinvestment Plan allows you to reinvest some or all of those dividends into more stock of the issuing company. Unlike purchases made through traditional means, partial or fractional shares, as well as whole shares, are available. Technically, there are two types of DRPs. The first type involves buying shares at the market through an outside trustee....
 

Mutual Funds are Dead

 
You may have wondered why your mutual funds have been going down for the past 2 years. The answer is very simple, but not one you will hear from Wall Street as they want you to send money. In order for stock mutual funds to go up you must have a bull market. Unfortunately, that bull ended 2 years ago and is probably not going to return for a long time. Yes, there will be short-term rallies that can last from weeks to months, but the downward spiral will continue. For the past 100 years the Price/Earnings ratio of the S&P500 index has a mean average of about 15....
 

Different Ways of Buying Stocks

 
Let's say you are interested in this one company. You read its annual report, like what you see and your calculation indicates that the stock is trading way below its fair value. You are excited. It is time to buy! Hang on for a second. There are several techniques of buying stocks out there. Some are better than the other. Let me explore several useful ones. Buy all at limit price. Assume that we have done our research and we want to invest $ 2000 to buy stock XYZ at $ 12/share. We can do this by setting a limit order of $ 12/share to buy 166 shares of XYZ....
 
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