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Stock Market Wisdom – Learning to Trade Like the Legends, Part 10

I thought I would conclude this learning series with wisdom from the greatest stock market operator of all-time, Jesse Livermore. I have read, “Reminiscences of a Stock Operator”, many times. Much of the superb trading knowledge I am about to share with you, is from that classic book.

Whatever is happening in the stock market now, has happened in the past, and will happen in the future.

Always look for repetitions, and similar types of behavior in the market. History always repeats itself in the stock market.

The desire for constant action, even in bad market conditions, is responsible for many losses.

The biggest battle to win in the stock market, is fighting the enemies inside us. That is human nature.

Never argue with the market. The market is much bigger than any of us. Always stay in sync with the market flow.

You must believe in yourself, and your own judgement. Tips and opinions from others are dangerous, financially.

Implement a system, based on study and experience. Do not gamble.

If a stock does not act right, don’t buy it.

The way to make money is to properly appraise conditions. Plan accordingly, and then act.

Do not sell a stock that is acting right because you are anticipating a reaction.. The reaction may not happen.

The big money is not made in the individual fluctuations. It is made in major movements, which take time. Be right and sit tight.

Buy the best stocks during a bull market. Get out off all your stocks when the general market conditions start to reverse to a possible bear market.

Never buy cheap stocks. They are cheap for a good reason. A lot of money is lost this way.

Stocks are never too high to buy, or too low to sell.

Much depends on your timing. Always buy at exactly the right time.

Study your mistakes, and learn from them.

Look ahead and follow a clear trading plan.

A small loss should not bother you.

Watch the market. Determine the direction or trend. Go with the trend.

When prices are in a narrow range, wait until the price breaks through this range in either direction. Then go with the flow.

When you buy stocks, it is better to pay top prices.

Always accumulate your shares of a stock on the way up in price, never on the way down in price.

“Hope” will cause you to lose a lot of money, and “fear” will keep you from making a lot of money.

Sell what shows you a loss, and keep what shows you a profit.

When stock market leaders go down several points from their top, and do not come back, this is a clue of a possible general market reversal.

Do not try to sell at the top, or buy at the bottom.

You will be paid well for both patience, and being right.

Greed will cause people to take tips.

It is a fallacy that a stock once selling at 100 is now a good deal at 50, and a great deal at 20.

You should never buy at the bottom, and should always sell too soon.

A proper stock market education is like a medical education. It will take many years of learning.

Observation, experience, memory, and mathematics. A successful trader must depend on these.

Only trade when the odds or probabilities are in your favor.

If your business is to trade, you must study.

Do not go against the movement of industry groups in the stock market.

Do not buy a stock that does not follow the group leader.

The chart will warn you when something is wrong in the stock market.

Only go long on an advancing market, and only go short on a declining market.

In the stock market, your strongest ally are the conditions.

Knowledge is power, and power need not fear lies.

Stick to the facts, and do not worry about what other people think.

Learn from the experience of others.

Study proper trading psychology. It is very valuable.

People will continue to make the same mistakes in the future as they have in the past.

The sucker will always try to get something for nothing.

You must adapt yourself to changing conditions.

Be fearless, but not reckless.

Do not blame others for your own failures.

Stocks are manipulated to the highest prices possible, by the powers to be, and then sold to a gullible public on the way down.

Stay with the teachings of experience and common sense.

General wisdom is less valuable than specific savvy.

If you lose your temper, you are finished as a trader in the markets.

The trader or speculator’s most dangerous enemies are ignorance, fear, greed, and hope.

It is as important to know what not to do, as to know what should be done.

In a major bull market, the public at first makes money, which later is lost, by over-staying the bull market.

The public likes to be told. This is what makes tip giving a common occurrence.

The market usually looks ahead from 6 to 9 months, ahead of current conditions.

There is no need to know the reason why a stock advances in price. As long as it keeps moving up, with only small and natural reactions, it is a safe bet to stay with it.

If after a long, steady up-trend in price, a stock turns and slowly starts to go down, with only occasional small rallies, the trend is reversing, and it is time to sell your stock.

You have just read many of the true stock market secrets from Jesse Livermore. Learn and implement them into your own trading. You could make a fortune using this stock market wisdom.

The Live Stock Market and Investments With Less Risks

What is the key benefit of viewing the live stock market? Benefits are many and it is up to you as an investor how you take in the information easily accessible to you. The live stock market can be viewed at an online trading platform or a financial news portal or the corporate sites of stock exchanges. When you stay updated with the A-Z of stories related to the companies you have invested in the Indian share market, taking quick decisions for a win-win situation will never seem difficult. Right from learning about negative factors like scandals to any upcoming event, you will always get benefited. In the former case, you can immediately sell shares before the price drops or invest in the latter that promises an upward trend.

The Indian share market is not only about buying and selling of shares; there are a number of segments directly or indirectly associated with it. For example new technologies introduced do have a direct impact on the share market. The health care and biochemistry segments have been witnessing innovative advancements, shares related to the same may suddenly rise in value. You can well imagine the lucrative consequences of trading in such stocks. You can thus invest your money and continue drawing benefits for the long term. Only the live stock market facilitates you to get informed about such developments.

To survive well in the Indian share market, do invest for the long term; these give more benefits compared to short term investments because of the involvement of less risk. This does not mean that short term investments do not do well; it all depends on the potentiality of the stocks. Moreover, you can expect stability and security to your portfolio with long term investments.

Most novice investors turn to investors they know for some advice. With busy schedules affective urban lives, you cannot expect them to guide you well. You need stock market tips to sail along well in the Indian share market no matter what the tide is. To open demat accounts you will need the services of share brokers. SEBI authorized share brokers who have years of expertise behind them will well serve your purpose. An online stock trading platform will well cater to your needs for top share brokers as well as stock market tips besides opening a demat account. So, venture into the Indian share market after getting registered at an online share trading platform. Get stock market tips from experts share brokers and start gaining from day one of your trading!

The commodity market is also considered one of the lucrative markets today. You can gain the A-Z of information related to the commodity market at an online share trading platform too. The sale or purchase of commodities done at an agreed price and later delivered at a specified date by brokers has so far gained great attention. Get registered and get tips about investing in the commodity market too!

5 Great Tips About the Stock Market for Beginners

The stock market for beginners can be a confusing place. You look all around and realize that you know nothing of the market. This however is one of the best places to make a lot of wealth, so people all around the world are increasingly getting interested in this place. There are a lot of options that can help you with making money in this market.

These include long term investment as well as day trading. In day trading you can make quick profits over a shorter period of time while in long term investments the profits are more over a longer period of time. Here are quick 5 tips for stock trading for beginners.

1. The first question you need to ask yourself is whether you have any idea of what stock trading is. This is money market and if you do not know how this works and how your money will get processed, then you should not put money into this market in the first place.

In this case, you should first enroll yourself in stock market trading courses or get the help of books which educate you on the subject. Point is, know the market before you leap into it.

2. Do you have a business plan? Like any other business, even stock trading is a business. So it needs to be started with a business plan. This business plan will cover important points like what your goals are and how you want to achieve them.

Also it will also take note of whether you are into short term, long term or medium term trading. You must have a scheme of how to manage risks; this has to be put in the plan.

Trading strategies are also important, especially if you want to make quick and good profit. There are several books on this issue that illustrate the idea of a business plan in this market.

3. There is a considerable amount of risk involved in the market. So before you jump into this business, you need to have some kind of an experience. A stock simulator account is a good way to learn about the stock business. This is a type of game which is recommended for beginners.

In this game you own an account in a virtual stock market which functions just like the real one. You have virtual money which you can use to practice trading of stocks without any risk of losing real money. Your virtual portfolio helps you to practice your trading strategies and thus makes you more confident.

4. This is an important tip for stock market for beginners. When you have become an expert at playing the above game you can start your own business with the help of online stock market investing. There are a number of stock brokers that you can find over the net. Choose one who matches your interest.

5. Do not forget to keep a trading diary close to yourself, especially if you are trading online. This will keep you abreast of the changing trends in the stock market and improve your skill. In fact, this will help you to detect the trade errors of your brokers.

The stock market for beginners will seem a frightening place any more once you have adopted these five tips.