Stock Trading Basics asked:


BY.-  http://wwww.PracticalDayTrading.com

Beginner traders often fantasize or wonder about how some people are able to achieve tremendous profits by trading stocks just a few hours on a daily or weekly basis.

So going farther than the hype & the bells and whistles that a lot of the called “trading gurus” like to invoke, the real “secrets” of the stock market game are enclosed within the trading set ups and market signals you rely on to decide how to CHOOSE stocks, as well as WHEN to BUY & when to SELL them, or even when to SHORT SELL those that are poised for a profitable fall.

So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and ACT ON IT reducing your risk.

Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to FOCUS on a set of simple trading strategies that you can implement without hesitation.

Fortunately some sites on the web do offer more effective and updated day trading methodologies. One of those sites that can show you how to take advantage of certain stocks on positive and negative momentum as well is http://www.PracticalDayTrading.com

They focus on momentum stock trading strategies, that are practical and easier to apply than many other technical systems out there.

Stock trading doesn’t have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.



Alex Silverstone

Jimmy Cox asked:


Once you`ve put the time and effort into coming up with a sound trading plan for your stock trades, and have found a good trading opportunity, it makes sense to start the trade right. Finding a good point to enter into a position involves several issues. Fist, you must know the time frame of your trade. For a particular trend stock trades, for example, you might know that you should enter no earlier than a week before the event creating the trend. Next, you must examine charts to see where the stock trades have been and where its support and resistance levels are, and think about it`s psychological support and resistance levels as well. Last, you should wait for a pullback in price if you believe that the price is temporarily high and that it will drop and create a better buying opportunity for you.

The way to make sure you enter where you plan to is to use a limit order. A limit order is an order that can execute only at the stated price or better. Limit orders sometimes make you wait behind others who placed their orders at the same price before you did, but in most situations, placing a reasonable limit order is the only smart way to enter a position. In certain situations, it may make sense to stagger your entry by buying half the shares you want at a price you think may be the lowest the stock trades will reach, and then waiting to buy the other half either when the price does get better, averaging down, or when the stock trades starts to move, adding on strength.

The wrong way to enter a position is to chase moving stock trades. Chasing stocks is a form of panic, and it practically guarantees that you`ll pay too much for the stock. Why is it so bad to pay too much? The more you pay for stock trades, the further your risk to reward ratio is shifted away from reward and toward risk. This happens because your upside has decreased due to the high price of the stock, and because the probability of the run ending increases as the stock gets more and more expensive.

There are two ways to look at the decrease in your upside: First of all, you`ll capture less of the stock`s movement, so your percentage return will be less; second, the more the stock trades costs per share, the fewer shares you`ll be able to buy. Which means that any return you get will be multiplied by fewer shares. Remember, it doesn`t matter if you miss a trade or a position because the entry price has gotten too high. It`s not the last good trade in the market. There will always be more stock trades to make. It`s much better to miss a trade than to chase a stock and end up with a loss.

Morning gaps down present good opportunities to buy stocks you want. Buying a gap down is an excellent way to enter a position, since when a stock gaps down, it often opens near what will turn out to be the low of the day. On the other hand, buying a gap up is one of the worst stock trades you can make. The gap up generally reflects the top of the market`s level of interest in the stock. Any good news from overnight has generally been priced in, so the stock`s opening price and volatility on a gap up often establishes the stock`s high of the day. Therefore, buying, or really chasing, the gap up means that you will likely buy the stock for top dollar. A good trader buys stocks that have an upside that hasn`t been priced into the stock.

Entering a short position on a gap up is a great plan, though shorting a gap down is foolish. The opening price and volatility on a gap down often establishes the stock`s low of the day, so shorting at the lowest point would be a poor trade to make. However, if you keep these guidelines in mind, you will be able to find a safe entry point for your trade. One that fits with your trading plan, and puts you on the path to consistent trading success.



Bernard

Larry Schade asked:


Did you know that the Large Mutual Funds, Money Managers, Broker Dealers, Hedge Funds, Market Makers, Specialists and Floor Brokers are the most active, successful, and profitable day traders

in the markets today. Yes, I said day traders. Most people are surprised when I tell them that. But that is exactly what they are. They can and do move markets, and in the process they make millions of dollars every day stock trading stocks with a good portion of that money being made off the backs of the uninformed individual trader and investor who blindly trades or invests in the stock market today.

When it comes to stock trading or investing in stocks, most individuals are not at all prepared, or aware of what the Wall Street professionals have in store for them. And they are very good at what they do. Things like questionable analyst upgrades for companies that are clients of the brokerage firm that the analyst works for . . . so as to facilitate the selling of stock by company and corporate insiders at a higher price than normal by selling into the momemtum and price action created by the upgrade. I honestly don’t know how some of these analyst can sleep at night, or how they can look at themselves in the mirror in the morning. But those are the facts, and it happens almost every day.

And, did you know about how the big players run and gun stocks, or tank them to make a killing off the underlying put or call options they had previosly loaded up on. Or how they manipulate the financial futures to manipulate stock prices, option prices, or the financial futures prices themselves so they can make large amounts of money, often at your expense. For every winner on a stock trade or investment, there has to be a loser. The market is a zero sum game. Is that loser you?

The truth of the matter is that the market is a game of money flow played by the big players as they move money around from stocks, to options, to financial futures, and back and forth in a number of different ways, all in the pursuit of greed and large profits. And remember, I previously mentioned that “a good portion of that money is being made off the backs of the uninformed individual stock trader and investor who blindly trades and invests in the stock market today.”

Education is the key to the success of every indivdual stock trader and investor involved in the stock market today, witkout exception. The good news is that . . . once you learn the inner secrets of how you can trade and invest with them and not against them, like the pros do . . . you can confidently and consistently trade and invest in stocks profitably most days of the year, too.

Once you know what you are really doing, it is not uncommon to make $2,500 to $5,000 and more, per day. I have done it, and continue to do it when I trade. But if you don’t know what you are doing, it is not uncommon to lose that kind of money, too. I feel very fortunate that I had the opportunity to learn from the same stock traders and investors you will meet on the pages of this site.

You can become a very successful stock trader and/or investor, but only if you are willing to invest the time and effort required educating yourself about the real workings of the stock market and how everything fits together. You won’t find a better place on the internet to get the critical information you need to succeed.

If you are losing money in the markets today stock trading or investing, or not making enough money, it is time for you get out of the markets for awhile and sit back and try and analyze what you are doing wrong. If you are honest with yourself, you are going to realize that you really don’t know what you are doing when it comes to stock trading and investing.

The best advice anyone can give you is to take a stock trading or investing traing course, either here or elsewhere, and find out what you should be doing. Some of these courses are not cheap, but the cost is really minimal when you consider the success you can have, and the money you can make in the stock market. You have to decide what you want to do. There is an old saying that goes like this “If you continue to do what you have always done, then you will continue to get what you have always got”.

Here at DowTrend.com you will find everything you need to know and learn to become successful at stock trading and investing in today’s stock market. There are free trading lessons, free trial offers, and comprehensive stock trading and investing courses from the most successful, market savy and knowledgeable traders and investors in the world. They hold nothing back. These are the same individuals that I originally learned from years ago, and yes there are many days when I make a lot more money than they do.

Spend some time looking around this site. Take your time and check everything out. There is no one around to bother you. I sincerely believe you will like what you see.



JARED

Ivanovich Cuxev asked:


Stock trading has always been a popular way to make money for the many people that are interested in taking a bit of risk. Now that the Internet is available many people are taking their skills and trying their hand at stock trading online. However for the new people wanting to get in on the action, it may be a bit daunting to figure out exactly how online stock trading works.

There is a great deal of jargon that is associated with stock trading so before you even begin, you may want to research the ins and outs of stock trading in general. It is good to look towards friends and family for advice on where they trade stocks online, any advice they may have to offer about how you learn about stock trading. It is good to network with someone who is very experienced so you know exactly where to begin.

Trading stock online starts with knowing exactly how much you can invest and how much you are willing to lose if your stock goes down. This depends on how much cash you have on hand, and how big of a risk you are willing to take. There are many ways to trade stock online that offer you less risk, but almost all of them come with some sort of threat of losing money. You should remember not to put all of your cash in one stock. It might be a better idea to spread it around to give you the best chance to make money.

From there you need to decide what you would like to trade. You have a choice of thousands of different stocks with different values and potential. If you are interested in one particular stock then you may want to watch it for a couple of weeks at least before you dive in and start trading yourself. Research the past ups and downs of the stock, and if you feel that it is a good time to trade you then jump in.

You need to find a good online broker. There are many choices in the United States as well as other countries. You need to do your research to find out which online broker is best for you. Look at their fees and how often you can trade, as well as their products and the information that they offer to the traders. It is always good to choose a broker that has an excellent customer support line in case you run into problems while trading.

When you first begin to trade stocks online you need to have realistic expectations and goals. Be disciplined and know what you are doing before you make your first trade.



Derek

Day Trade Online asked:


BY.-  http://www.ChatHotStocks.com

In the stock market it’s not impossible to watch a stock move up dramatically in a matter of hours or days. Investors and traders can make great money and fatten their wallets every time this happens.

This seems great for every one that wants to try their fortune in the stock market, but the problem is that if you don’t know what stocks to look for and how to properly approach them you could end up wasting cash instead of making your profits grow. 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 out there, 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 stock trading strategies that rely on a “boat load” of technical analysis indicators can make you slow, and being slow when trading stocks can be as dangerous as not knowing what to do in the first place.

The worst thing that can happen to a beginner trader is to get information overload. It’s better to go step by step, and test a practical stock trading strategy that can show you how to focus on concrete ways to make money while picking SOLID hot stock trading opportunities once at a time.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader.

Fortunately some sites on the web can show you how to take advantage of stocks in a practical way every week by minimizing risks. One of those sites is Momentum Stock Pick at http://www.ChatHotStocks.com 



They focus on picking certain stocks that can generate excellent gains on the same day.

Visit them today and learn how to take advantage of the market by picking the hottest opportunities this season.



Justin

David Jose asked:


Most of the newbie traders started up with online stock trading businesses get into fix in which way to trade. Vulnerability to suffering from confusions is likely amongst most of the online stock traders. However, with practical advice, tips, suggestions taken from experienced traders most of the confusions and issues can be tackled. Hence join one stock trading community. Different types of options and categories and facts accessible through Internet confuse investors.

Moreover, questions like how much money to invest, where you should invest and how much profits are obtainable from investment, which stocks are functioning in the industry and which stocks do not are some of the highly crucial points to be discussed as you are trading online. Which stocks are rising windward side and which are on the leeward side must be taken under scrutiny to start and run online stock trading business. Investors can access information and guidance from existing players in the market by signing up at any online stock trading community and message boards.

Nowadays, there are plenteous online trading communities which are specific to the categories of online stock trading. Therefore, if you are a stock investor, bond analyst or a financial analyst, join fellow members of your trade by joining an online stock trading community being crowded by fellow people. Message boards, chat sessions, forum posting facilities available through these communities give traders discuss various aspects of their stock trading job profile.

Open discussions held through online message boards help traders when they are purchasing any stock options and help in making better decisions too. Moreover, when a trader is looking for particular information on stock trading, by joining one such stock trading community will be extremely helpful as they can retrieve the data much faster through involving in discussions. Network of online stock trading community is swelling day by day by encompassing diverse facts and fellows who are willing to share and access data from other people’s experiences.



Brenda

Paul Hata asked:


The size of the stock market is estimated at about $51 trillion. The concept of trading fundamentally consists of the buying and selling of stocks among individuals or companies through brokers.

Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Through buying a share of stock or a share of ownership in a particular company, an individual can then benefit and earn money from the company they have invested.

There are two basic methods in which the stock market operates on the exchange floor where buying and selling is done more traditionally and electronically where technology takes on the exchange game.

1. Trading On the Exchange Floor

The trading that occurs on the more traditional exchange floor of the New York Stock Exchange (NYSE) is basically what most of us have become accustomed to from seeing it in the movies and on television. Basically, the NYSE consists of many brokers who negotiate the deals for individuals to be able to trade stocks.

Trading System – As chaotic as the stock exchange floor may seem, there is actually a common pattern that occurs among most simple trades. First, an order to buy a certain number of stocks would be negotiated through a broker. After this, the broker’s order department would forward this arrangement to their floor clerk on the exchange. The floor clerk would then inform the company’s floor traders in order to find other traders that are willing to sell the equal number of stocks from the company that is offered to be bought. After the two parties agree on a price and close the deal, the message would be forwarded back up the line, and the broker would then inform the interested buyer on the final price.

Negotiations may take a few minutes or even longer, depending on the performance of the stocks as well as the market. For more complex trades and larger orders of stocks however, there may be a more complicated process but the principles basically remain the same.

2. Trading Electronically

A growing trend these days however, is trading stocks electronically, which is done through advanced computerized systems. Unlike the NYSE that generally operates through the manpower of brokers, its counterpart, the National Association of Securities Dealers Automated Quotations (NASDAQ), trades stocks completely through electronic means.

These electronic markets forgo with human stockbrokers and instead make use of advanced computer networks to match buyers and sellers. And through this method, transactions are usually faster and more efficient.

Through electronic trading, investors get many benefits such as being able to get faster confirmations, as well as facilitating control by having online investing readily available through the Internet. However, brokers basically still handle the trades, as investors do not have direct access to the electronic markets.

The process that takes place in both methods however is usually hidden from investors. Typically, if you are an investor, a call from your broker and regular reports on your stock investments would be provided for you, but you will not really get to see what is happening behind the scenes.

Through the investments that individuals make, many businesses are kept afloat and running. And in exchange for this, investors get a fair share of earnings. Stock trading may be a complex process, but at the end of the day, many people basically benefit from all of it. As a result, the whole concept becomes simple.



Melvin

Gerald Greene asked:


Stock is ownership in a company. Each share of stock represents a small piece of ownership. The more shares a person holds, the more part of the company he owns. The more part of the company a person owns translates to more dividends he earns when the company profits.

That is if the company pays dividends. Many do not these days as they want to use cash flow to build a bigger business rather than pay out cash to shareholders.

A stock market is a market for the trading of publicly held company stock as well as associated financial instruments such as stock options and stock index futures. On the other hand, stock market trading is the buying or selling of securities specifically in the stock market, usually on stock market exchanges, like the New York Stock Exchange.

There are two basic methods of doing stock market trading. Traditionally, stock markets where open-outcry where trading happened on the stock exchange floor. The more modern way of doing stock trading is through electronic exchanges where everything occurs online real-time.

Stock market trading via the exchange floor could not look any more chaotic. When the stock market is open, hundreds of people are seen rushing about, shouting and gesturing to each another on the exchange floor. Traders are also often seen talking on phones, keeping a close eye on the consoles and entering data into terminals.

Online stock market trading moves the trading off the floors and more into the networks. The electronic market employs a vast network of computers to match buyers and sellers instead of human brokers. While lacking the excitement of the usual stock market exchange floor, it is faster and more efficient. Investors frequently get an almost instant confirmation on any trades done.

How does stock market trading work? Be it on the chaotic stock market exchange floor or electronically, one needs to get an investment broker first.

For traditional exchange floor trading, after asking a broker to buy a certain number of shares at the market, the broker’s order department sends this order to the clerk on the floor. The clerk alerts a trader who finds another trader who is willing to sell the shares the investor requested.

The two traders agree on a price for the stocks and close the deal. Notification is sent back the same way until the broker calls the investor to inform him of the final price. This process may take a while depending on the market and stocks. Days later, the investor receives the confirmation by snail mail. This process is so yesterday.

The electronic counterpart is less complicated because the stock buying and selling are matched by the computers in real-time. And the investors get instant updates on the price action and profits or losses for their stock trades.

With so many discount brokerage firms operating on the Internet trading stocks is easier than ever. An investor and stock trader can easily and inexpensively trade stocks from his home or office computer.

That’s why it is more important than ever to be disciplined in one’s approach to stock investments. These days it is so easy to buy and to sell stocks online that it is easy to over do it. Few traders will make money by constantly churning their own accounts.



Marvin