It's Important to Know the Difference Are you investing in a stock or a company? That may sound like confusing question, but it is an important distinction and can get you in trouble if you don’t know the answer? First, let’s be clear that either answer is okay. The problem arises when investors confuse one with the other or start out investing in a stock, then change their … [Read more...]
Day trading Techniques
There are six common basic strategies by which day traders attempt to make a profit: 1. Trend following Trend following, a strategy used in all trading time frames, assumes that stocks which have been rising steadily will continue to rise, and vice versa. The trend follower buys a stock which has been rising, or short-sells a falling stock, in the expectation that the trend … [Read more...]
Your Trading Success Depends on You, Not an Indicator
It is so easy in trading to want a “sure thing.” Often we tell ourselves that the next time we see the perfect trade, we’ll hit it hard and knock it out of the park. Perhaps you have searched for the perfect indicator or trading system which will virtually guarantee you profits if you will just stick with it. No doubt, we have all heard stories of other traders who claim to … [Read more...]
Trading: Art or Science?
There are many traders with all different approaches. Some are rules-based traders who want to see conditions A, B, and C in place before they act with orders 1, 2, and 3. Other traders seem to have no written trading rules, but they do very well consistently with their instincts. If a trader’s day traded for over a decade, spending countless hours watching tickers and order … [Read more...]
Understanding Stock Volume And Liquidity
Understanding that volume and liquidity in a better way will boost trading profits puts you one step closer to financial freedom. The active, professional trader should know how to act in any market, liquid or illiquid condition 1. High Volume Means High LiquidityStocks with a high volume are very liquid, not to mention they have lower spreads between the bid and ask … [Read more...]