8 Trading Mistakes You Must Avoid This Week’s Trading Lesson Here is a list of eight mistakes that most of us do as we work our way through the learning process it takes to be a successful stock trader. Avoid these and you will be well on your way. 1. Fail to Limit Losses I…
Conclusion: Technicals Lead, Fundamentals Lag. The following two case studies illustrate a very important point: The market and individual stocks (i.e. technicals) move months BEFORE the fundamentals move (up or down). The reasons “why” are lengthy and outside the scope of this article. Instead of discussing the “why” we shall focus on the “what.” The reason is…
This Week’s Trading Lesson I have often said that making money trading stocks is simple, but not easy. Once you learn basic technical analysis techniques, have good tools to identify opportunities and gain some experience at identifying good trading opportunities, the actual job of picking stocks is relatively straightforward. Where most traders fail is in…
Conclusion: The Most Valuable Information is Price Action: In theory, information should make the stock market’s world go round. Information about companies and their ability to make money in the future is what should determine share price. As the market learns of new information, price is adjusted up and down to reflect the value of…
Our longstanding readers and clients know that we are big fans of removing your emotions from the decision making process, in life and in the market. This is yet another lesson of what it is paramount for investors to remain objective, analyze the facts and always listen to what the market is saying (not someone’s…
This Week’s Trading Lesson I believe that making money in the market requires doing what is hard. Often, when your emotions are telling you to take one course of action, you have to go the other way. Here are 10 hard, but necessary, things to do if you want to beat the stock market. 1….
Know What People Do, Not What they Say They Are Doing Source: Stockscores.com Perspectives for the week ending March 20, 2013 This week’s Trading Lesson Investors have many choices on how to analyze the stock market. Most use some form of fundamental analysis, looking at company information to determine whether the stock’s price is more…
Gambler or Trader? Source: Stockscores.com Perspectives for the week ending January 8, 2013 This week’s Trading Lesson Many people think that trading the stock market is a form of gambling, making the markets of the world not much more than giant electronic casinos. For many who trade the market, gambling is exactly what they are…
This week’s Trading Lesson Source: Stockscores.com Perspectives for the week ending January 14, 2013 Here is a test. If a bat and a ball cost $1.10 together and the bat costs $1 more than the ball, how much is the ball? Do you have your answer? If you are like the majority of people, you will…
Trade Types Source: Stockscores.com Perspectives for the week ending February 25, 2013 This week’s Trading Lesson: Remember, when you see a man at the top of a mountain, he did not fall there. Achievement requires effort, but there are many paths to the top. In stock trading, our goal is simple; beat the market and…