A Triple Dipper: How to Make 3 Profits on 1 Stock Trade

 
This is a rather simple strategy with which I am sure a lot of seasoned traders are very familiar, possibly under some other name with which I am not familiar. I wanted to write about it because I don't see anyone talking about it anymore. Since the big hey-days of day trading and, of course, the burst of the Internet bubble of 2000, there seems to be a lack of patience that this strategy needs to work. A lot of people seem to be moving back into the markets since the declines of 2000. If you were one of those that jumped back in during the early part of 2004 you reaped big profits....
 

Trapeze Artist - Swinging with the Stock Market

 
When we go to the circus we see a trapeze artist working on a high wire or swing either alone or with other athletes. They know what they are doing because of constant practice, but every once in a while there can be a mistake, even a small one that can cause one of them to fall. The result is death or serious injury when they hit the ground. When you look below them you will see a net. Thank goodness. No one wants to see them get hurt. As expert as they are they take precautions. In almost every profession or athletic event there is some kind of safety net available and this is true in the stock market for all investors....
 

Why Technical Indicators

 
The fight continues to rage among traders whouse technical indicators and those who preferfundamental information to establish newpositions and to exit current positions. The fundamentalist believe in knowing all thefacts about a company such as price earningsratios, sales growth, product margins, management capabilities, cost of production, cash flow, etc., etc. while the technicianscould care less about the latter and want to seesector price trends and rank, the RelativeStrength Index, MACD (moving average convergencedivergence), stochastics, trend lines, chartpatterns and many more esoterically evolvedindicators....
 

The Club

 
Yesterday I received my monthly issue of MONEY magazine. This issue has the special feature called "The Ultimate Investment Club" that highlights their picks for the top mutual fund managers. Let's see how their members made money for their shareholders. My readers know that the only thing that counts in my book is performance and performance means they make money and do NOT lose money so I went back to preview their record since these experts took over. When you see the results of this club you will be glad you did not go on any camping trips with them....
 

Smart Day Trading Strategies to Help You Make Money in the Stock Market

 
That's why the most important aspect of stock 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 stock trader. 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....
 

One Way Street

 
Ever turn down a street, get half way and suddenly realize it is one way and you are going the wrong way? Is that the way you feel when you look at your stock brokerage statement? In either case don't panic. You can get out of that one way street by carefully backing out. Recouping your stock market losses also means you must back out. Many people lost 50% of their investment in the last year because they were going the wrong way and could not back out. You must admit you are doing it wrong and stop immediately just as you did in your car....
 

Pamplona, the Wild Investment Bulls

 
You remember (they show it on TV every year)the running of the wild bulls in Pamplona, Spain. Some of the nuttier people get out theircapes and stand in their path as they comeroaring down the street. Our would-be matadors wave their home madecloaks at the bulls hoping the bulls will chargeat it and not at them. The list of casualties atthe end of the day is sometimes quite large, but, fortunately, not too many are killed. These two participants, the bull and themake-believe matador remind me of the thosesame participants in the stock market....
 

Selling Strategies - Setting a Stop Loss

 
Sometimes the best way of lowering exposure to risk is not to invest at all! However, when we make the decision to jump into the muddy waters of the stock market, its always a good idea to have a life jacket ready, just in case. We all have stories of that "must have" "can't lose" stock that looking back, we didn't really need to buy, and it definitely lost. So, how to best protect yourself when the markets disagree with your due diligence? Trailing stop loss. Its important to understand the psychology of investing....
 

The Top 10 Reasons to Invest in Mutual Funds

 
But, most people who "invest" don't study the market. They don't understand it, and they don't have time to manage their portfolio wisely. That's where mutual funds come in. I respect that other people have other opinions, and certainly not all mutual funds are well managed - you MUST choose wisely and use appropriate caution! But, for most folks, a good, solid, boring mutual fund is the golden path to riches. Here are my Top 10 reasons to us mutual funds: 1. Selection. You can select from thousands of funds (you'll find one to suit your needs) and you can get information on them easily....
 

The 1% Solution

 
You probably know the story of Sherlock Holmes and the 7% solution. He had a drug addiction. He needed the drug. He was able to control his addiction by taking the drug in a 7% concentration. Anyone with common sense knows you cannot survive on 7%. It is a slow death. When you retire you are familiar that most brokers and financial planners recommend you go into nice safe bonds that pay about 7% annually. That 7% solution will barely keep you alive until you die. Isn't there a better solution? Conventional wisdom states that you should become extremely conservative when you are old and retire so your funds will last you until you check out....
 

Low Tide

 
When you stand on the ocean shore and watch the waves breaking you might become aware that the tide is coming in or going out. It is a slow process to watch the water retreat and when it finally gets to its lowest point it is almost impossible to tell if it has stopped or will retreat further. Plenty of wave action, but going nowhere. This reminds me of our current stock market. It still looks like the tide is going out because for the last 2 months all the major stock indexes have been inching down....
 
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