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[F779]Free Practice Stock Trading

by Robs, Rob

I am sure that anyone who calls themselves a trader has read plenty regarding stop losses. Even I have written more that one article on the topic. It stands to reason that this is a topic of discussion, because of one simple fact. Not taking stops is still the number one reason traders fail. Despite all of the articles on this topic, and all of the attention this topic commands, people still have issues with stop losses.
Maybe this will help. I recently have been asking traders that I am instructing a simple true-false question: On a typical day, if you ignore your stops, you will lose money due to not stopping out when you should have. True of false? After only a moment of thought, 99% of the traders asked, quickly belt out the answer that they think will please the teacher. "TRUE!" they yell, "Not taking stops are the number one reason traders fail!" As if they had just finished reading a book on the topic. Then they are often quite dismayed to hear the teacher say, no, the answer is false.

Why false? Simple. There are a great many times a trade stops by a small amount, only to come back later in the day and actually be a winner. This sets up a subconscious pattern to continue the behavior. It is known as "winning the wrong way", as described in the book "Tools and Tactics for the Master Day Trader". As a matter of fact, this actually happens more often than not for many traders, and you can find this out if you track your trades and research some of these things. It will vary greatly with your trading style, but I would estimate that the 'average' day trader may actually lose a little money on the typical day by taking stops as opposed to not taking them. So, why use stops then?

If you are confused right now, it is because you don't understand the rationale for using stops. Stops have one simple purpose, and those who have taken our Trading the Pristine Method Part One know this because the very first time they are introduced to a stop loss it is called the 'insurance policy'. It is not that missing one stop is a guaranteed disaster. The point is that if you make it a habit, you will get caught one day. Getting 'caught' may mean the end of your trading career. I cannot tell you how many times I got asked in the year 2001 a very similar question. Someone with BRCM, or a similar stock, which they bought at $250.00, wants to know if they should sell it now at $9.50. Did they buy it at $250.00 with a stop at $9.51? No. They bought a 'scalp' with a stop at $248.00. They just didn't take their stop, and got caught. This 'mistake' cost them their trading career, literally.

If you drive without auto insurance you may brag to your friends how you just saved $3,000.00 over recent years. Until you have an accident and get hit with the million dollar suit. Then your financial life is over. Bottom line, playing with stops is playing with your career. Manage them in a way that makes sense for you, but don't ever violate your plan and don't ever, ever, ever, carry a trade overnight that was not intended to be a swing just because you cannot bring yourself to sell the position.

These days, the Internet has afforded everyone investing in the stock market to make an informed decision on their investments. Through the Internet, investors can receive the latest updates regarding their investments. The flow of information is made faster by the Internet. One of the medium for the information flow is the stock trading newsletter.

Through the stock trading newsletter, information is sent via E-mail or is viewed in a Web site that may have been updated several times in a day.

There are many stock trading newsletters today, some of which are offered for free while some require a fee. However, only some of them are very good ones, being able to help you find good stocks and assist you in earning more money.

So how does one find a great stock trading newsletter? Here are ten tips:

(1) Choose the one that focuses on the kind of trading you're engaged in. Newsletters that barely or does not focus on the kind of activities you're engaged in is close to useless. If you're the type of trader that seeks diversified investments, then you won't gain anything from a newsletter focusing on penny stocks.

(2) Determine the potential impact of advertisements accompanied by the newsletter. Advertisements get in the view and distracts you from getting on the information that you wanted right away. Free newsletters are bombarded with advertisements. Paid newsletters, more or less, contain few or no advertisements because they don't depend on advertising for income. In addition, editors of the free newsletters may put more emphasis on the stocks of their advertising company even if there are better options available.

(3) A great stock trading newsletter focuses on the stock price movement combining trend analysis, chart pattern set ups, etc., based on data gathered from historical statistics, and presenting them to you for your own analysis as well.

(4) Consider the newsletter's [or the company producing it] track record but don't be too absorbed in it because some newsletter companies may fake their record. The newsletter's analysis and information must make sense and meet common sense.

(5) Don't avail the newsletter services from the one that is just starting out. You may find their analysis and tips valuable, but how can you ever confirm their reliability without any past performance and reviews?

(6) Consider testimonials or reviews made regarding the newsletter. Seek the advice of other investors or brokers, or ask those you knew which availed of the newsletter services. Lookup through search engines or search through blogs, forums and review sites. However, don't be too absorbed at the reviews. Most often, the one who gave the review or testimonial may be a little biased or may be promoting a particular newsletter.

(7) Look for newsletters that other reliable financial publications have referenced or quoted. A newsletter's content must be really good if other leaders in the industry seek it out. Also, choose newsletters published by reliable financial institutions as information from these can usually be trusted.

(8) Do some research into the newsletter's publication date compared to its contents. A stock trading newsletter is only as good as its publication date. Something that comes out at least once a month may contain advices that are a month old, which by the moment you read it becomes moot or stale.

(9) Test three to five newsletters at a time. In this way, you avoid information overload from reading all the charts, trend analysis and research in the newsletter. Unsubscribe to one before adding another newsletter for review.

(10) Consider buying a software package offering a web trading platform service and may entitle you related newsletter, forecasts and analysis for free. If you are happy with the web trading platform, it just make sense to receive the newsletter from the same company.

Always remember that a great stock trading newsletter is one that can assist investors in making an informed decision.

Article Source : Pg. 303

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Both Robs & Mark Crisp 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.

Robs has sinced written about articles on various topics from Finances, Forex Trading Forex and Penny Stocks. Mouser57 of stockhideout.com . Robs's top article generates over 18100 views. to your Favourites.

Mark Crisp has sinced written about articles on various topics from Investing and Trading, Finances and Hot Stocks Pick. . Mark Crisp's top article generates over 18100 views. to your Favourites.