| |
| |
|
Stocks & Mutual Funds |
|
|
|
Articles and Information about Stocks and Mutual FundsNetFinancial | Institutions | LoansColleges and Universities | Search Engines Successful Trading - Taking Profits - Part 1
So you're started trading, you bought some positions with your online broker, you've set some reasonable stop-losses to protect your account and all of a sudden one of your positions move strongly in your favor - so what do you do now? This my friend, is probably the hardest situation to deal with in trading the market - believe it or not. Do you take profits? Do you hold on for more profits? Do you take partial profits? There is no textbook answer to these questions as it depends on your trading objective. That's why you need to determine your objective BEFORE you start trading. No matter what you do, there will be regrets if you trade long enough. If you decide to take profits, there will be times when the market makes a huge move without you, if you decide to hold on for more profits, there will be times when you'll lose the profits you had. However, the important thing is that you decide on your objective and stick to it no matter what happens. With that said, let's discuss some profit taking options that you might consider. When you've bought your stock, option or commodity and then placed your stop, you must first try to prevent that position from losing money. We recommend that you move your stop right along with the price movement. In other words, if your stop is placed one point below your purchase price and your stock moves up one point, then we recommend you move your stop up to your purchase price. After doing this, you now have a scratch trade at the very least and the position poses virtually no risk to your account - only "gap downs" at market opens can hurt you. And of course, the golden rule with using stops is that they can only be moved up and must NEVER be moved down. Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To learn more about trading the markets, visit his website, http://www.earncashathometoday.com/trading-stocks.htm
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Hot Stock Investing ... How to Pick Hot Stocks with Momentum Stock Trading Profitable day traders recognize that momentum trading is among the fastest & most effective ways to harvest BIG piles of cash in the stock market.The problem is that if you don't know what stocks to look for and how to approach them while limiting your risk, you won't even get close to making some profits. Pathways During our travel down life's path we come to many places where the trail divides and we must make a decision. Some involve psychological (emotional) choices - marriage, divorce, leaving home, career changes, etc. 12 Basic Stock Investing Rules Every Successful Investor Should Follow There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below. Picking Mutual Funds to Outperform the Market With over 6,000 mutual funds available, it may be tempting to pick funds from a popular star or index rating system. Savvy investors, however, balance multiple factors in their selection process. DIY Portfolio Management Exchange Traded Funds (ETFs) are growing. Investors are choosing low annual expense and market return over high annual expense and promised performance. Dispelling Illusions of the Stock Market How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening. Money, Insanity and Wall Street Money: the most charged word in the planet. It means something to everyone. 8 Penny Stocks to Avoid There are many good penny stock investments available, which could turn a small amount of capital into a small fortune very quickly. However, to discover these you need to know what to look for and what to avoid. The Stock Market Investor's Worst Enemy Every stock market investor faces one primal enemy. An enemy so perverse, it will drive thousands of investors from the stock market through its ability to defeat even the most practiced investment strategy. How to Evaluate Load vs. No Load Mutual Funds If you have been dealing with mutual funds for any length of time, you undoubtedly have faced the question of which is better: Load Funds or No Load Funds. If you are new to investing, "load" simply refers to the commission paid to the broker selling the fund. The Exclusive Club of Large Caps Picture one of those clubs where only the real heavyweights need apply. In the library the old aristocrats, General Motors and JP Morgan, are dozing in their leather chairs. How To Buy And Hold One of the most believed bits of conventional wisdom from Wall Street is to Buy and Hold. Any stock or mutual fund should be put away for eternity and never sold. The Holy Grail (of Investment) Every year I go to the Money Show in Orlando, Florida. Thousands attend. Trading Tips No 5: Stock Trading Curve Drawdown and Commitment All stock trading and investing methods must deal with the inevitable drawdown from the most recent peak in one's stock trading curve to a bottom before reversing and making a new high. Seasoned systems traders are well familiar with the drawdown phenomenon and the importance of drawdown as a percentage of annual average returns in evaluating a trading system. What the Hell is a Stock option? A 'stock option' is a contract between two parties giving the buyer (also known as the 'taker') the right, but not the obligation, to either buy or sell a specific quantity of shares at a pre-agreed price (known as the 'strike price' or 'exercise price') by a certain future 'expiry' date. There are two different types of options that can be traded, known as 'call options' and 'put options'. Stock Market Volatility In my opinion, due to the volatility of stock market prices (the rise and fall of stock prices), an investment plan should incorporate both the traits of stick-to-itiveness and common sense, and must have an advantageous, predetermined approach for maximizing each investment in the stock market.Stick-to-itiveness and common sense - oh, what powerful weapons they are when used for a long-term investment plan in the stock market! They mean making the common sense and advantages decision to:? Purchase only those companies that have long-term histories of raising their dividend every year. Analysts - Do They Really Know The Stock Market? When you become interested in a stockor mutual fund you can call your broker and hewill send you reports on how the company is doing,what their management is like and what might bethe projected earnings for the company and how theindustry is doing. Great information. The Next Bull Market We are already in it, but you can't see it. It doesn't look like the one we had in '99. What Does it Take to be a Stock Trader? It takes a total mental commitment to the task. It becomes a complete way of life. Frog In The Pot You remember the story about the frog that was put into a pot of cold water on the stove. Hewas not concerned.
|
|
Currency Trading | Investing | Leadership | Negoatiation | Real Estate | Stocks and Mutual Funds | Taxes home | NetFinancial | Institutions | Loans | Colleges and Universities | site map Search Engines | EZmatic | 0pops | GetSonic | TrafficFish | Health |
| © 2006 |