Your great entry has produced a terrific profit. However, you do not want to sell the stock until after the trade qualifies as a long term gain. However, the stock’s earnings report date is approaching and you are apprehensive. If the report is disappointing your stock could be downgraded easily. This short article describes a [...]
By James F. Cotter
David Kelly, chief strategist with J.P. Morgan Funds, sees indications that the economy is beginning to improve. As reported by Beth Kowitt in Fortune, 6 April, Kelly cited government spending as having lifted the country out of the Depression during World War II. In addition, “The housing sector is really [...]
Before trading the markets with real money, it’s essential to understand the risk of the trading strategy or method you intend to use. One way to assess risk is by testing your strategy over historical market data to see how well the strategy would have done in the past. While this so-called backtesting approach is [...]
Stocks Trading, Forex Trading, Futures Trading, Options trading or whatever. A Successful trading consists of three factors as follows:
Most of traders spend most of their time looking for good trades and only focus on the last factor, Market Analysis and Trading Systems, which is the least influence on the successful trading.
Once traders enter [...]
I want to get going by focusing on the S&P 500 – it is in essence an index of the 500 largest companies in America. In fact, it is more. Contrary to popular misconception, the S&P 500 is not a simple list of the largest 500 companies by market capitalization or by revenues.
Rather, it [...]
The tax code has discouraged trading during bear markets in IRAs. Shorting stocks has not been permitted. Even in regular accounts trading in bear markets has been discouraged. During dramatic market falls, up tick rules prevent short sales. After 9/11, and the recent bank debacle, many journal articles described shorting the market as being un-American.In [...]
Good money management skills are the single most important difference between amateur and professional traders. You heard me. If you have ever dreamed of becoming a successful forex trader, you must learn money management.
Money management has nothing to do with how you budget your spending or how much you put into your Forex account. [...]
Having been a professional gambler I can declare from experience that horse racing and stock market trading have many, many similarities. For a start a lot of people lose at horse racing simply because they have no idea what they are up against and they use techniques that are absurdly naïve. That’s like using [...]
Whether you are investing in stocks, futures, forex or options, you know that there are many ways to trade them. With every school teaching different systems, methods and strategies, sometimes it is difficult to distinguish which is the most powerful of them all?
Almost every trading books and trading seminars that I have come across [...]