Archive for the ‘Trading’ Category

Feb 29th Update SPX

Wednesday, February 29th, 2012

This past week, the market once again continued to grind higher, matching the May 2011 high (1367.00), and slightly surpassing it by .30 points. In retrospect, our forecasts for the second half of last year; stating by December 2011, the Index would surpass the May 2011 high (even when the index had dropped to 1070.00 last September) was off by just seven weeks. The problem is, during the last few weeks, we have been hesitant to chase this market, because we felt the market remained overextended. That being said, late comers to the party continue to trickling in, but the risk of a dip toward 1290.00 within the next few weeks is still highly probable.

 

Feb. 1st 2012 SPX

Wednesday, February 1st, 2012

1/20/2011 Top is in correction has started

Friday, January 21st, 2011

Stock Trading – Make Each Trade Profitable

Thursday, January 20th, 2011
NASDAQ in Times Square, New York City, USA.
Image via Wikipedia

Do you know what it takes to make each stock trade profitable? Trading in the stock market isn’t rocket science, it is just a matter of understanding the market and their charts. In order to make a profit on stocks the first thing you need to know is that it all starts with the buy-in price.

Stock trading is something that many people fear and the simple reason is because stocks are risky. The one thing you need to know is that anything dealing with money is risky. For instance your job, if you work for yourself then it is risky and if your work for somebody else then it is risky too. There is never anywhere you can make money without the risk, but there are ways to make sure each trade you do remains profitable.

In order to make each trade you do profitable you need to follow a few steps. The steps are; buy 3 times, never trade the news, and always back up your trades.

Buy 3 times – Buying 3 times just means that whatever amount you want in each stock you will divide by 3 and then buy equal shares of that stock over the next 3 days. You do this so you can average into the stock and to make sure if it dips you will have ground to stand on. Another reason you want to buy 3 times is to make sure that you don’t buy when the price is high, this is normally what happens when you buy something that is in the news.

Never trade the news – Just like I said, never trade the news. You never want to trade a stock that is in the news because there will always be people that are worried about the stock dropping or others who think it will skyrocket and because of this they tend to over buy/sell and it will make the price fluctuate more than it should. So just remember to never trade the news or else could risk losing your money.

Always back up your trades – Something most people don’t do is make a counter trade with each trade you do. The importance of the counter trade is just as important as the trade itself. How you make this work is you save up enough money that if the stock drops you can buy in at the low and adjust your total investment. It is always important to have a back up so never buy more than you can afford.

Now that you have these 3 tips to make each trade profitable you need to make sure you have a strategy that you are trading on. If you trade and you don’t know why you are then you will just lose money. Something that many people do is trade the trends which is a great way to make money. If you are new try looking for daily trends that happen without failure. These are the stocks you want to trade daily for steady income and then find others that you can trade for long term growth and profits.

Trading stocks isn’t for the unorganized, you need to have a system that is organized and tested in order to make a decent profit. The last thing I want to leave you with is that a single stock strategy doesn’t always work, you will need to monitor it to ensure that it stays profitable for the long haul.

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Jan 10 2011 update

Tuesday, January 11th, 2011

My feeling is that the SP-500 has not topped yet.  I believe this quick 16 point Zig-Zag move down to 1262 the past two days off the 1278 high is a minute degree wave (4).   It also alternates with the wave (2) flat at 1173 in late November.    Ideally the wave (4) correction should meet a minimum 23% retrace of wave (3) or 24 points.   Thus, I have alternate count that shows a potential double ZZ with one more test of the 1257 pivot tomorrow.  However, the 1257 pivot has held as support on three separate tests already and based on the strength of the Nasdaq and Russel-2000 today, minute (4) should be over and wave (5) is underway with today being the wave ii-(5) low of 1262.18.  Wave iii-(5) should target 1284/1288 and  I have the final wave (5) target of 1289 to 1291 that could come quickly in the next two days or drag into OPEX week.  I believe it will likely drag on into OPEX and frustrate traders who want to get short.

January 7th update

Saturday, January 8th, 2011

Bottom today, ready for a move up to 1300

12/14/10 reached a top today will drift down to 1219 now

Wednesday, December 15th, 2010

December 3rd in a uptrend

Saturday, December 4th, 2010

Cruising for a bottom

Tuesday, November 16th, 2010

Short Term Top Almost Here

Tuesday, November 9th, 2010

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