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Why have a Trading Plan

November 3rd, 2016 No comments

Stock Trading System and a Trading Plan

 

No matter what type of financial instrument they are trading, successful traders will always utilize a stock trading system. In other words, they do not make random Trading System Pros - Stock Trading Systemtrades and instead they will always trade according to a carefully thought out trading plan or system.

On the other hand, unsuccessful traders do not use a stock trading system and will instead behave more like gamblers when they are trading stocks. Specifically, unsuccessful traders will attempt to apply any and all of the trading knowledge that they have gained as well as any news or “hot tips” they hear and end up trading in a completely haphazard or undisciplined manner.

Moreover, unsuccessful traders will often make trades based on emotions or what they feel to be “instinct.” And while this type of “stock trading system” can make money in the short term and also be exciting; over the long term, such an undisciplined approach is sure to be a money looser. After all, stock trading can be emotionally draining and any trader behaving like a gambler may well tire themselves out long before they run out of capital to trade or begin to suffer heavy trading losses.

Instead, successful stock traders will trade according to a carefully thought out stock trading system that will likely be really boring to execute over and over again but will surely be much more profitable over the long-term. However, using a stock trading system will require patience and discipline on the part of the trader as he or she will need to stick with the system for the long-term in order to realize any profits.

 

Stock Trading System – resist straying from your plan

Most importantly, a trader using a stock trading system will need to resist the temptation of straying away from trading plan – even when their instinct or emotions tell them to do so. In other words, successful stock traders will patiently wait for the correct trading signal to appear before they execute a stock trade. Moreover and when there seems to be reasons for a stock trading signal to be ignored or for not executing a trade, they will still execute the trade according to their stock trading system.

However, it’s important to also remember that successful stock traders do not develop a stock trading system and become successful overnight or even in a few weeks time. Likewise, successful stock traders do not become successful by reading a couple of books or taking a brief stock trading course. Instead, successful stock traders will constantly expose themselves to new and potentially profitable trading ideas and gain practical experience by watching the stock markets and how individual stocks behave on a day-to-day basis. They will then use their observations and knowledge to develop a stock trading system over time.

In other words, developing a successful stock trading system as well as becoming successful with stock trading itself will be a long term learning process requiring a significant amount of patience and discipline on the part of the trader.

 

Topic: Stock Trading System

Trading System Plan

August 24th, 2016 No comments

 

Importance of a Trading Plan

 

No matter what type of financial instrument they are trading, successful traders will always utilize a stock trading system. In other words, they do not make random trades and instead they will always trade according to a carefully thought out trading plan or system.

 

Trading System PlanOn the other hand, unsuccessful traders do not use a stock trading system and will instead behave more like gamblers when they are trading stocks. Specifically, unsuccessful traders will attempt to apply any and all of the trading knowledge that they have gained as well as any news or “hot tips” they hear and end up trading in a completely haphazard or undisciplined manner.

 

Moreover, unsuccessful traders will often make trades based on emotions or what they feel to be “instinct.” And while this type of “stock trading system” can make money in the short term and also be exciting; over the long term, such an undisciplined approach is sure to be a money looser. After all, stock trading can be emotionally draining and any trader behaving like a gambler may well tire themselves out long before they run out of capital to trade or begin to suffer heavy trading losses.

 

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Using a Stock Trading System

July 14th, 2016 No comments

 

Stock Trading System Tips

 

A stock trader who wants to be successful for the long term will first need to come up with a viable stock trading system that is grounded on analysis rather than on emotion. More importantly, a viable stock trading system will help a trader to avoid common trading pitfalls and stop them from making random stock trades in response to current market conditions.

 

Typically, a stock trading system will be based upon technical analysis where a trader examines a stock’s historical prices and assumes that any small fluctuation that has occurred in the recent past will likely continue into the near future. This analysis will include the use of common technical charts such as bar charts, candlestick charts and point and figure charts that will exhibit particular technical indicators such as support and resistance, momentum, strength and volatility. These indicators will then be built into a stock trading system to help a trader decide when to buy or sell stocks.

 

Stock Trading System Mistakes

Stock Trading SystemMoreover, a good stock trading system will provide a road-map that will prevent a trader from making some of the following common stock trading mistakes:

 

  • Avoids over or under-trading. A good stock trading system will prevent both over-trading where a trader enters and exits a trade every few seconds as well as under-trading where a trader holds on to a position all day or even longer for much longer periods of time. Instead, it will help a trader strike a happy medium.

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What Should You Trade

April 23rd, 2016 No comments

 

Selecting Your Stock Trading Course

 

Stock Trading CourseWith the proliferation of financial instruments or asset classes that can be traded, taking a comprehensive stock trading course that provides a thorough review of the choices available has become even more critical as there are many pluses and minuses to consider with each instrument or asset class. After all, just consider some of the following types of popular trading choices:

 

Popular Stock Trading Course Topics

 

Stock Trading. Many traders opt to trade stocks with so-called penny stocks (which are any stocks that trade below S$5) being the most popular types of stocks to trade. After all, if a stock that trades for only $1 dollar rises 50 cents, the trader will earn a 50% profit (as opposed to a $100 stock that rises 50 cents) and many big blue chip companies themselves would have started out as penny stocks. On the other hand, a good stock trading course will also point out that penny stocks can be extremely volatile, are subject to market manipulation and are often companies with little revenue or profits that can best be described as having products or advanced technologies that are simply way ahead of their time.

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Stock Trading System

April 22nd, 2016 No comments

 

Benefits of a Stock Trading System

 

A stock trader who wants to be successful for the long term will first need to come up with a viable stock trading system that is grounded on analysis rather than on emotion. More importantly, a viable stock trading system will help a trader to avoid common trading pitfalls and stop them from making random stock trades in response to current market conditions.

 

Stock Trading SystemTypically, a stock trading system will be based upon technical analysis where a trader examines a stock’s historical prices and assumes that any small fluctuation that has occurred in the recent past will likely continue into the near future. This analysis will include the use of common technical charts such as bar charts, candlestick charts and point and figure charts that will exhibit particular technical indicators such as support and resistance, momentum, strength and volatility. These indicators will then be built into a stock trading system to help a trader decide when to buy or sell stocks.

 

Stock Trading System to Avoid Mistakes

 

Moreover, a good stock trading system will provide a road-map that will prevent a trader from making some of the following common stock trading mistakes:

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