Home

Equities

Options

Futures

Bonds

Preferred

Penny

Forex

Credit Cards

News

 

 

Trading isn't difficult to learn, but it is difficult to implement at first. We'll help you learn to have fun and make more money trading, and unlearn any bad habits. The simplest thing to start doing is limiting ALL your losses. No matter how hard it is to pull the trigger, NEVER let any position lose you more than 10%! The best times to buy a stock are:

1. When a stock is either coming off a run-up and just touching the 200-day moving average (MA),
2. If it is consistently moving to new highs, buy a small pullback at the 20-day MA, or
3. If it is significantly below its 200-day MA and it just moved a dollar above its 50-day MA.This trade is particularly good for taking a position in a company that you think would be a great long-term holding, but the stock has had some trouble of late.

Those 3 trades are the most likely to succeed, but remember there is no sure trade, so don't let any trade lose you more than 10%.

 

Trader Word of the day -- ETF

An ETF is an Exchange Traded Fund. It is a financial instrument similar to a mutual fund that is traded on an exchange like an ordinary stock. Normally, they track an index, however, within the last year or so many new ETFs have been created. Some of these new ETFs track very unique portfolios. A good list of ETFs can be found at the American Stock exchange website. ETFs normally have lower fees than mutual funds, but users need to keep in mind trading costs when investing in ETFs.