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June 18, 2010
A method of picking stocks that is closely related to technical analysis is momentum investing. Anyone who’s ever watched a snowball going down a hill knows how quickly it picks up speed. That’s momentum in action! Momentum investors look for stocks that are moving at high speeds, on the theory that you can just ride out a stock as long as it continues to rise in price — as long as you bail out before the stock crashes and...
June 18, 2010
Benjamin Graham (1894 – 1976), father of fundamental analysis, made the “buying below book” strategy famous. He believed stocks that sold for two-thirds, or less, of their net current assets were bargains. Because Graham was so successful, his methods of analysis gained a wide following and many professionals now watch for these undervalued stocks. Due to the market’s efficiency, such bargains are now rare, but if you...
June 18, 2010
Scalp trading is a style of trading that is designed to capitalize on small percentage moves. It uses price setups that present exceptionally low risk opportunities.It also uses positions initiated and closed out in the same trading session. The typical objective for a scalp trade is 1% to a 2% or sometimes even more. Scalping demands the familiarity as well as the use of a direct access trading system for instant order execution. The best...
June 18, 2010
1. Plan your trades and trade your plan. 2. Keep a positive attitude, no matter how much you lose. 3. Buy the bad news and sell the good ones. 4. Do not be afraid to buy high and sell low. 5. Continually strive for patience, perseverance, determination, and rational action. 6. Limit your losses and learn how to use stops. 7. Avoid getting in or out of the market too often. 8. Losses make the trader studious – not profits. Take advantage...
June 18, 2010
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a security position. Also known as a “stop order” or “stop-market order”. Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional...

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The Wall Street Mindset

While the U.S. Markets are constantly a Roller Coaster of energetic fun, one Rule stays true.

Whether we be in a Bull Market, or a Bear Market, you must ALWAYS keep a level head. Emotions cloud your judgment, and reduce your profits!

By always having STRICT Trading Rules set in place, you are sure to do better than the average investor.

Stop Losses, Trailing Stop Losses; Limit Orders are just some of the practices used by pros that can help you maximize your profits, while greatly reducing your downside (Risk).

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