Are you really committed to being a successful trader?

July 10, 2008 · Filed Under General

Continuing with our guest blog posts for the week, I would like to introduce Pierre Charlebois from Tradingpostfinancial.com. After reading his posts for a while, I finally asked him to write a post that would help our thousands of readers!

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I was asked to offer something educational as a guest blogger and I was trying to think of what could I write about, to have the greatest impact. How can I get through to the readers what it is like to trade for a living? How can I explain what the one, most important ingredient in trading is? What is the one common thing that all traders need to do well, to get solid results overall. And how do I help them understand it? And then how can I teach them to do it? Then I thought: Man that is no small task.

If anyone could do that well on a consistent basis people would be knocking down their door. Let’s face it, trading for a living isn’t all that easy. Well, let me reframe that statement. The average person can learn to trade. That is, most of us with a little effort and time, can learn all the basic concepts of trading and develop a reasonable system to apply to trading. So how come more people aren’t successful? More importantly: how come you’re not?

Simple; Learning to trade and ‘Executing Trades’ are two very different things. Learning the techniques is not what is difficult. Learning the ability to execute well, is!

You see, what separate the few good traders from the many mediocre ones is the real commitment of doing what it takes to be successful as a trader. I said earlier in the article that I wanted to try to explain the one thing that would be common to everyone who trades. Well that one thing is: You. Each one of us is what makes the difference in our trading. Not the next system, not a better market, but simply our own ability to find the discipline of executing our system well.

When I got this about my trading, my first reaction was that all I needed to do was be consistent as to when I trade and how I trade. Boy was that ever easier said that done. I had to really force myself to set the proper priorities of what to do, how to do it and when to do it. Frankly, it is still the greatest thing I am challenged with everyday. You see it takes time and repetition to reinforce good habits and shed old ones. And some of our old habits may never disappear entirely.

So I say, stop looking for the next system that you believe will beat the market and work with a simple system you can easily apply, and then; apply it well and consistently. That’s when you will see your trading improve.

Pierre Charlebois

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Please be sure and check out Pierre and what the team at Trading Post Financial has to offer!

check it out

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Day Trading Momentum Stocks For Profits

Day trading Momentum Stock traders always search for companies that are moving faster than the market. They buy stocks that are already on their way up with the belief that it will continue to go higher.

Momentum investors do not care about the fundamentals of a company as long as the price continues to go higher. They believe substantial returns can be realized if they find, buy and hold onto those issues while price continues to go up.

These kinds of investors would likely use technical analysis to forecast whether a stock will continue to rise or not. However, one can't just know with a 100% certainty when the rise may be over.

A trader participating in momentum investing will take a long position in an asset, which has shown an upward trending price, or short sell a security that has been in a downtrend. In practice, momentum investing is nothing more than buying stocks that have high returns and selling those that have poor returns. If everybody is thinking that way, rising stocks will keep rising and falling stocks will keep falling. However, this cannot last forever.

In order to earn money from momentum stocks, it is very important to buy and sell at the right time. There are a handful of key factors in successful momentum trading.

One of these factors is the point at which one is willing to enter a trade. Setting specific entry points is important in order to catch the momentum once it has begun. The key to successful trading on momentum is not playing around within the stocks' recent high and low price range.

Setting an entry point above the stock's recent high price or below its recent low price helps one catch bigger, more significant momentum in trades.

By setting an entry point above the stock's most recent high price, one will only begin to trade when the momentum is already going in the direction predicted. In this case, the price is going up.

If, however, there is initial downward momentum, the investor's trade won't trigger, preserving his/her capital for other trades. Setting proper entry points is therefore essential to the success in momentum trading.

In momentum stock, an investor needs to minimize the risk of losing trades by pre-designating a price point at which he/she chooses to exit or stop a trade with a minimal loss.

The use of stop points helps to limit the magnitude of a losing trade, thus, is crucial to the investors' capital preservation. By setting stop losses, investors allow a small movement in price going against them, but cap the amount of negative movement they are willing to absorb. By exiting a trade that is going against them with only a small loss, they are able to preserve their trading capital for future trades.

Stop points also help eliminate emotional trading. As investor, one needs to guard against staying in a trade too long while hoping for a turnaround. Set correctly, a stop loss will allow for small fluctuations in price but protects the investors from more powerful momentum going against them.

There are times when the stock's momentum carries the price beyond the targeted exit price. When this happens, trailing stops is a useful tool, allowing the investor to let profits run while cutting losses at the same time.

Get your Fade the Opening Gaps System and sign up for my free method here at: http://www.daytradeformoney.com.

Article Source: http://EzineArticles.com/?expert=Mark_Crisp

How a Day Trading Stocks Newsletter Can Help You Succeed

Education

One of the greatest benefits a good day trading stocks newsletter provides is the chance to learn from experienced professionals. The best day trading stocks newsletter will give you pointers on stock and market analysis, using various trading strategies, and money management, as well as less concrete aspects of trading like the psychological issues involved on both the trader's side and the market's.

Save time

The staff at a day trading stocks newsletter have the time to do in-depth stock analysis and report their findings back to you. After all, if you're honest with yourself, do you really have time to do sufficient research on the stocks your interested in?

Catch trends fast

Turn your back on the market for a moment and things can change fast. While you can't spend every waking moment watching your stocks, as a day trader you need to keep on top of trends if you expect to turn a decent profit. A quality day trading stocks newsletter can not only help you quickly identify tends, but also let you know how those trends may change. Many online newsletters even send out email alerts when a stock's situation is really changing fast.

Protect your trading capital

A good day trading stocks newsletter will give you tips on how to limit risk and keep your trading capital safe from large losses and market drawdowns by using sound stoploss and money management techniques. The quality newsletters offer more than just theory. Many even provide you with exact stop loss levels.

Access the professionals

Many stocks newsletters conduct interviews with top investors and business leaders, quizzing them about their trading and money management strategies. Writers for these newsletters not only have access to such people, but they know exactly which questions to ask to get exactly the information their readers need.

Get specific instructions

If you're relatively new to day trading getting clear, specific instructions on what to buy and sell when can make a huge difference in your profits as well as cut down on a lot of stress. Even if you're already an experienced day trader, though, these instructions can give you valuable insight into the minds of other expert traders. Either way, you're bound to learn a thing or two.

Avoid mistakes

Let's face it, when it comes to day trading, even professional make mistakes. They might be due to technical miscalculations, misjudgments or simple psychological reactions that lead to rash decisions. Checking your decisions against the recommendations in a high quality day trading stocks newsletter let's you see when you might be going astray.

Whether you're just starting out in day trading or you've already got some experience, the guidance available through a good day trading stocks newsletter can increase your profits while making lighter work of research and buy and sell decisions.

Get your Momentum Stock Trading System and sign up for my free Fade the Opening Stock Gaps here at: http://www.daytradeformoney.com

Article Source: http://EzineArticles.com/?expert=Mark_Crisp