Free Stock Market Trading Signals At Http://www.freemarketsignals.com - part 1
by Russ H
The fact that it is possible to profit from actively trading in the stock market is accepted almost universally. However, actually enacting a profitable trading strategy is easier said than done. The simplest strategy is buying and holding securities. This is not a very glamorous approach and although it is an approach that “usually” results in gains it is not a guarantee. For example, if one purchased a share in a Nasdaq 100 tracking stock in early 2000, one would find themselves down roughly 55% more than 6 years later!
What is needed is some type of market analysis that can be used to prompt short sells (a way to profit when the market goes down) as well as long buys. And of course this analysis must also help determine when to sell (or in the case of a short sell – cover) an open position to either lock in a gain or minimize a loss. Some traders rely on instinct or gut feel or just watch the market constantly to determine when and what to buy, short, sell, or cover. While this approach does work for some it sometimes does require a passionless approach that many find difficult to achieve. For example, in the case of the trader who buys a share in the Nasdaq 100 in early 2000 the trader is faced with locking in a loss in order to close the open position. I know traders who became investors because they could not face locking in a 10% loss early in 2000. In 2001 that 10% loss became 30% and then the problem became worse. The trader who was able to accept the 10% loss and established short positions through 2002 was faced with a sizeable gain (approximately 50% depending on when the precise trade dates occurred).
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Free Stock Market Trading Signals At Http://www.freemarketsignals.com
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