http://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
Make Money by Trading Stocks
All too many individuals jump into trading stocks, lose money and decide that it really was impossible to make money by trading stocks. They blame the big trading houses, the Federal Reserve, Tea Party Republicans or President Obama. They forget or are unaware of the old saying that, we have met the enemy and he is us! But, considering how many folks lose their trading capital and just walk away, can you really make money by trading stocks? You can if you pay attention and have a solid plan. Successful stock traders base their trades on a combination of fundamental and technical analysis. Fundamental analysis tells us what the eventual price of a stock will be. Technical analysis tells us how that stock is going to perform along the way to its eventual price and is commonly the way to make money by trading stocks.
Anticipating the Future
You can make money by trading stocks if you can see the future. But how do you see the future? In trading stocks this is called technical analysis. The basis of technical analysis is that history tends to repeat itself. For example, during the height of Babe Ruth’s baseball career one could safely predict that the Great Bambino would hit thirty or more home runs in a season. During the height of the Cold War one could safely predict that there would be at least one confrontation between the USA and the USSR during any given year. Well, it turns out that you can make money by trading stocks using the same sort of logic but simply different data. Technical analysis is based on price patterns. The sum total of information and trading sentiment goes into driving prices up and down. There are a variety of distinctive price patterns that essentially predict the future. This was recognized both by rice traders in Japan and tulip bulb traders in Holland hundreds of years ago. The Japanese system was formalized and is used today. It is called Japanese Candlestick trading as it is a visual system of signals that are superimposed on a trading chart.
Make Money by Trading Stocks and Paying Attention
If all you do is analyze fundamentals you can buy a stock or sell short and simply wait for the market to come to you. However, as you can see from most stock charts that the price of the a stock moves up and down a lot before it finds its eventual price...
2. All too many individuals jump into
trading stocks, lose money and decide
that it really was impossible to make
money by trading stocks.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
3. They blame the big trading houses, the
Federal Reserve, Tea Party Republicans
or President Obama.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
4. Before We Continue…
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5. They forget or are unaware of the old
saying that, we have met the enemy and
he is us!
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
6. But, considering how many folks lose
their trading capital and just walk away,
can you really make money by trading
stocks?
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
7. You can if you pay attention and have a
solid plan. Successful stock traders
base their trades on a combination of
fundamental and technical analysis.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
8. . Fundamental analysis tells us what the
eventual price of a stock will be.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
9. Technical analysis tells us how that
stock is going to perform along the way
to its eventual price and is commonly
the way to make money by trading
stocks.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
11. You can make money by trading stocks
if you can see the future.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
12. But how do you see the future?
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
13. In trading stocks this is called technical
analysis.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
14. The basis of technical analysis is that
history tends to repeat itself.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
15. For example, during the height of Babe
Ruth’s baseball career one could safely
predict that the Great Bambino would hit
thirty or more home runs in a season.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
16. During the height of the Cold War one
could safely predict that there would be
at least one confrontation between the
USA and the USSR during any given
year.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
17. Well, it turns out that you can make
money by trading stocks using the same
sort of logic but simply different data.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
18. Technical analysis is based on price
patterns.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
19. The sum total of information and trading
sentiment goes into driving prices up
and down.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
20. There are a variety of distinctive price
patterns that essentially predict the
future.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
21. This was recognized both by rice traders
in Japan and tulip bulb traders in
Holland hundreds of years ago.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
22. The Japanese system was formalized
and is used today.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
23. It is called Japanese Candlestick trading
as it is a visual system of signals that
are superimposed on a trading chart.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
24. Make Money by
Trading Stocks and
Paying Attention
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
25. If all you do is analyze fundamentals
you can buy a stock or sell short and
simply wait for the market to come to
you.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
26. However, as you can see from any
stock chart, the price of the stock moves
up and down a lot before it finds its
eventual price.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
27. It is certainly possible to make a few
dollars using fundamental analysis.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
28. But it is also possible to make money
trading stocks by reading price patterns.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
29. By doing so, a technical trader can
make profits several times while the
fundamental trader is waiting for the
market to make its final move.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
30. The point of technical trading is that you
need to be there at your trade station,
pay attention, always set your buy and
sell stops and always get out of your
trades before the end of the trading day.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
31. This is the basis of day trading. There
are numerous profitable day trading
strategies such as range trading,
scalping, and trend trading.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
32. The point is to develop a strategy, edit
your results and modify how you do
things along the way in order to optimize
profits.
By
http://profitabletradingtips.com/tradinginvesting/make-money-by-trading-stocks
