Enjoy your long weekend. I am about to take a few days vacation my-self.
Everyone seems to be worrying about what direction the stock market is going....in a word DON'T. Don't even concern your-self with the day to day "noise" There's absolutely nothing we can do about where the stock market is going to go..so don't waste your time on it.
What-ever you do simply follow price and volume. ESPECIALLY volume. That's the ONLY indicator you need. Don't do what people "say" follow that they actually do.Especially the really big volume. Institutional or big individual buying.
Look at great stocks like VPHM, NTRI, BCON where we have profited from massively and continue to do so. No following advice. No watching the day to day ticker here. Simply buy them and hang on for the 400%+ moves they give you.
"THE BIG MONEY IS IN THE BIG MOVES"
Why do most people lose in the stock market? In one word "emotions" They trade too emotionally.They react to the day day corrections. They take profits too quickly and seek advice..WRONG!
Look I made a trade is TZOO last year. I bought around $45 and then watched it FLY upto $76....boy was I tempted to sell. But being a disciplined Momentum Trader I simply HAD TO FOLLOW MY RULES. HAD TO. FOLLOWING MY RULES IS MORE IMPORTANT TO ME THEN MAKING MONEY!
So I then watched it fall to $50...Yep I watched $20+ in "paper" profits disappear. Not a problem as to become a master trader you have to be willing to give back a fair portion of your profits in the HOPE of much bigger profits (write this down!) And then back it zoomed to over $100. I finally got out about $90.
My point here is you can't have the conviction to do this kind of trading unless you have a proven system. Rules you are 100% happy with. You must be disciplined and whatever you do..NEVER listen to any outside advice. I'll bet my life everyone was screaming sell TZOO at $70....$60 and $50....
This kind of trading leads to massive % moves in stocks. It stops you from over trading as well. Have you ever bought a stock. Made a quick 20%+ profit in it then sold. Patted your-self on the back and said "a job well done" You then go and trade another 2 stocks and lose 10% on each one. giving back al your profits. Now the real sickener is the stock you sold out of for that quick 20% profit in is now up 100%......And you feel sick. You could have made much bigger profits by simply hanging in there. Do NOT OVERTRADE.....another big reason people lose.
Enough from me. I hope you at least think about what I say here. Stock trading is unlike any business in the world. It's not about "work" as such but about managing emotions and trading to a set method and being true to that method. Many people struggle here....professional money managers included.
Master this and the "world is you oyster" It's your call.
Sincerely
Mark Crisp
Many people often wonder why some make it in the stock market and some don't. They sometimes sigh and say, ?They have all the luck, that's why.? True enough, luck can be a factor in one's success or failure in the stock market. As most experts will allow, trading at the stock market is very similar to gambling. They both involve a great deal of risk. But unlike gambling, success or failure in the stock market is not solely dependent on luck. It has much to do with two things information and attitude.
Information has much to do with success or failure at the stock market. First of all, information makes stock trading more than just guesswork. Analyzing trends can help investors make educated guesses regarding their investments.
One important aspect that often goes unnoticed is the proper attitude investors must have towards investing. Too often, investors fall prey to the wrong type of attitude in investing. This leads to wrong decisions, and impulsive buying or selling. What are these attitudes, and how should they be avoided?
1. Many Investors Exhibit an Impatient Manner Unfortunately, many investors get into the mix just because they are under the impression that they could get rich overnight as result of a few investments. This is so far from the truth. In fact, successful portfolios are built over time. Stocks take time to mature and appreciate. If the investor never realizes this, he or she might be looking to make a quick buck. And when he or she is unable to, he or she may become discouraged or may sell his or her shares for a lower price.
2. Many Investors Look to Take the Risk to Be Overnight Millionaires Warren Buffet, the Wall Street Tycoon has this advice for investors: don't bet all your marbles on stocks that seem to be skyrocketing today. They could crash tomorrow. Buffet confides that he has always built his empire over stocks that were stable and exhibited continued growth over the years. He says that these stocks are preferable to volatile stocks that could crash anytime.
Other investors fail to diversify their portfolios. Depending on how much risk one is willing to take, an investor should divide his or her portfolio into low-risk, medium-risk, and high-risk categories, and invest in such stocks. Some people are too risky and put their heads on the guillotine with high risk investments. Others will not risk their necks on any investments. One should choose an attitude that is just right for his or her risk tolerance.
Both Mark Crisp & Nicky Pilkington are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mark Crisp has sinced written about articles on various topics from Investing and Trading, Finances and Hot Stocks Pick. Mark Crisp is the creator of the Momentum Stock Trading System Making stress free huge profits trading in stocks only 4-8 times every year.