5 Ways To Improve Your Stock Market Results
http://www.tradingmarkets4u.com
Start reading charts and open up a new world
Nothing is more important to your stock market results than the proper utilization of charts. It is true that nobody can predict exactly what the stock market or individual stocks will do. That being said, charts give you a track record of what a stock has done in the past. They also give you important clues to what a stock is most likely to do in the future.
Buy a stock at the pivot point and increase your odds of success
You see a stock that is moving higher and higher. It makes you think, this is the stock for me. It does seem quite tempting to buy, but you need to be careful. This is because no stock goes straight up or down. The point where you buy can make all the difference in the world.
After making big moves up their charts, most stocks will then go down some in price. This is perfectly normal. The stock will take a break before moving up again on the next leg of it's journey. If you buy too late, you could take a big loss, which would really hurt your overall stock market results.
The key is to time your purchase so you get in near the stock's pivot point. This is the price where you have the best chance of success. All trading is based on probabilities. As an example, let us say your stock is in a flat base pattern. It has been trading between 26 and 28 dollars per share for 2 months. It breaks up past 28 on heavy volume. That is your signal to buy.
Implement proper trading psychology
It is never wise to underestimate the importance of psychology when trading the various markets. If you want to become one of the best traders, you will need to curb or eliminate emotions such as fear, greed, and hope from your trading equation. Stay objective, and only trade based on facts. Your stock market results are depending on it.
Look for new innovative companies
Stocks that have performed well in the past rarely make it back to their glory years. Cisco, General Electric, and Microsoft are good examples. Nearly all companies ultimately lose their innovative edge. This can be caused by size, refusal to change as conditions change, and so on. Look for young, innovative companies that have an important new product or service the masses love. Find new companies that revolutionize the way we live. If you do this, your stock market results will be fantastic.
Keep a trading journal
Much can be learned by keeping a record of why you make trading decisions. Notes such as this can become a valuable source of objective feedback. This can help your future decision-making. I also like to mark entry and exit points on charts. Learning from mistakes will enhance your overall results.
Article submitted Friday, October 28, 2011 & read 41 times.
Gary E Kerkow, founder of Tradingmarkets4u, is a stock and commodities market expert. He is a successful trader and instructor, with over 20 years experience.
Learn how to receive a free "Stock Of The Decade" special report.
For world-class trading information, go to http://www.tradingmarkets4u.com
Leave your comments through My Financial Pages:
0-0-0-0-3-ADSO