Stock Tips

It is very difficult to try and determine what company is going to do tomorrow or next week, even next month because you simply can’t account for the human condition. However, you can take a look at the future goals and aspirations of a company to determine where they’ll likely be in the next quarter or two or even the next year. This is similar to the area of human psychology (the two areas, psychology and trading, are very much related) where psychologists can’t predict what one particular person will do tomorrow or the next day or maybe even next month. What they can do, however, is determine what a large group of people are likely to do in the future. They can also ... [read full story]

Stocks that make strong moves on a news item are an excellent shorting opportunity. The main fundamental theme to remember on shorts is that volume is the lifeblood of momentum and price acceleration. Always check the average daily volume and then compare it with the current volume on the day of the overblown run-up. When volume dies, so does the stock. Another constant that appears to be predictable is that end-of-the-day profit taking occurs on stocks that make big gains throughout the day. The logic is very simple in that most traders do not want to keep a position overnight. They want to end the day "flat," meaning all cash. These profit takers usually show up during the last 15 to 30 minutes ... [read full story]

Analysts are employed by brokerage houses. Their job is to analyze stocks and advise brokerage house clients and/or the public whether given stocks are worth buying, selling, or holding. Although many analysts are competent, honest, and care about investors, the sad truth is that a handful of dishonest analysts have placed the entire profession and procedure of analyst recommendations in a bad light. The continued buy recommendations in worthless stocks by analysts from the late 1990s until early 2002, as these stocks literally crashed, is a glaring example of what can happen if investors allow themselves to be manipulated by those who purpose to be professionals in their areas of expertise. Although most brokerage houses have taken steps to separate their research departments from ... [read full story]

Based on the experiences from technical trading tactics with many top analysts and traders, here is a Top 10 List of observations to pass along after 23 years in the trading business. You may recognize some of these thoughts as market clichés, but they have stood the test of time and should be helpful for you as well. You only have three choices when you are in a bad position, and it is not hard to figure out what to do:  (1) Get out (2) Double up, or (3) Spread it off. I have always found getting out to be the best of all three choices. No opinion on the market or you are doubtful about market direction? Then stay ... [read full story]

A common mistake of novice traders after taking a large loss is to succumb to the temptation to "make it all back" by initiating high-risk trades. This thinking hinges on the gambling mentality that afflicts many people in the market. If you find yourself thinking this way, do not follow through. If you lose your discipline and allow a small loss to turn into a big loser, do not compound the problem by making emotional decisions in an attempt to recover from the original mistake. Always remember this tip when taking a loss: Small losses allow you to remain trading and learning, whereas larger losses can abruptly end your trading career. [read full story]

These are top ideas in which many professional traders have learnt about the markets and trading through years of trading experience. One of the problems with preparing a list such as this is that many important points now operate subconsciously to the experts. An important point is that what we do well, we do subconsciously, what we do badly we do consciously. These stock market tips should help any trader, but there will be many other lessons left to be learnt. Trading Tips Always minimize risk in every way you can. Read though the 10 tips to eliminate risk. Always trade ... [read full story]

Why the world's greatest stock picker stopped picking stocks, and why you should, too. The most dangerous investment advice is often that which seems most sensible, which is why the worst investing counsel you will likely ever receive is that you should try to pick "good" stocks and sell "bad" ones. You will get this advice in one form or another from innumerable sources, including (some) investment advisers, friends, colleagues, Wall Street, and the investment media. You should ignore it. Since the dawn of investment time, great stock pickers (there are some) have been revered, and even most novices can proudly recite picks that have produced mountainous returns. ("I bought Google at $85!") Unfortunately, what is smart (or lucky) on occasion often proves ... [read full story]

This may sound crazy, but it's absolutely true AND extremely important for you to understand. Your broker is there to take your orders and execute your trades. That's it. Your broker's goal is to get you to make as many trades as possible. That's how he makes his money, on trade commissions and fees. You don't have to make a trade just because he wants you to. Your job is not to make him money, it's to make you money. He is not the one to take stock trading advice or analysis from. If he really knew how to trade, he wouldn't be working behind a desk. He wouldn't have to. He'd be taking his own advice and making lots of ... [read full story]