Showing posts with label Discipline in Stock Market. Show all posts
Showing posts with label Discipline in Stock Market. Show all posts

Tuesday, June 2, 2009

Scale out your Winners method

The effect of scaling your winners will be an increased average win while stay in your losses with risk parameters.

If you are lose and you lost a lot of money, you must exit NOW or sell all your stock portfolio. If you are win, it is the best to exit half of your stock lots if you do not sure that stocks will go up again or it is at the position at your first target!! If you win one plus one (Increase your portfolio with buy again) again, if you lose one reduce your money to buy stock or reduce your portfolio!!

You must have stop-loss price whenever you buy cheapest stocks. It can be more cheap cheapest! If the Stock price down 6% at close market from your buy point you have to sell it. Or you can set your stop loss order 3% under moving average 30 days. It is same if the stock jump up you must have target price 20%-100% or you follow technical analysis line like : Relative Strength Index, Bollinger Band, Commodity Channel Index, and etc.

Why I am write like that?? Because The Market moves down or up it does not care about your money and my money. You can not moves and predict it 100% right so you need to scale your winner method!! Do not play dumb change method every day. Stays in your method and learn from it minus and add its minus so it can reach at least 75% right or better. But YOU MUST SCALE YOUR WINNER AND BE CONSISTENT!!!

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Thursday, March 12, 2009

Make your OWN STOCK MARKET PORTFOLIO

Have a high income from invest in the Stock Market is not only a dream. Relatively high transaction liquidity provide opportunities for investors to optimize their incomes greater. How to be sure to understand the market risk and to understand the shares that you choose. Choose the specific stocks shares with high liquidity, and make a portfolio that consists of several types of shares.

Formed portfolio that includes some type of stock is the absolute requirement that must be met by investors who want to invest in Capital Market. Because the portfolio is formed at the same time investors can press the various risks, whether the risks that arise due to systematic risk and unsystematic risk. At the beginning investor to invest jut buying one type of stock. As a result, the stock is down, making the investor change his share with shares that have increased due to market factors. Instead the increased market share that already sold have an increase rather than the new shares that investor purchased.

So these factors, which then makes the investor would not want to have to create a portfolio that consists of several types of shares. In this form the portfolio are a number of ways that investors can be, for example, by combining some of the characteristics of stocks, ranging from blue chips stocks (First Line), growth stocks (Second Line) or attractive stock (Third line) or shares that provide higher capital gain as the market increased. Essentially the basic formation of this portfolio is "do not put all your eggs in one basket." Principle means that the investor must make investment diversification to minimize risk that might occur.

After establishing portfolio, investors can have dealing with the various risks that may appear on the stock market. We know the risk factors in the Stock Market be calculated high enough. In theory the high risk in the Capital Market reflects the high level of return or income that can be obtained. There are some risks that are dominant in the stock investment, which is big enough impact on the performance of stock exchanges. At the macro scale, for example, the performance of investment in IHSG (Indonesia Stock Exchange) influenced by other stock exchange, economic global conditions, political stability, and performance of other securities exchange both regional and global. In addition, the activity is also very sensitive to the various rumors and News. To understand the condition of the company and the economy entirety, is the primary requirement to avoid a variety of information and rumors.

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Tuesday, March 10, 2009

Trust NEWS or YOURSELF???

News do not listen to it. Many people and trader listen and watch MSNBC, Bloomberg News, CNBC, or Metro Tv all day long. The one who talking on the news know very little about market dynamics and market price action. Very few, if any, have ever even traded a one lot in a market trade. They claim as experts trader on stock market. if you listen to it or watch it do not receive that news 100 percent, you must compare it with politics condition, because many News in Television or paper controlled by Strong Politician to create market that politician likes!! WATCH IT!!!!!!

Before becoming a trading and markets expert, the guy on TV reporting hourly from the Bond Pit, was a phone clerk on the trading floor. Obviously this qualifies him to be an expert! He, and others, can provide no utility to you. Treat it for what it really is entertainment.

The fact is: The reporting that you hear on the business programs read old news. The story has already been dissected and consumed by the professional market participants long before the news has been shown to public. Do not trade off of the reporting. TRUST YOUR SELF YOU ARE THE BEST!!!

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Sunday, March 8, 2009

You are THE MAN

Create Your Own Method and stick with it. Write down your own method try and learn it. Do not change your method every day. You must have a game plan. If you are wrong, write it down in your paper or computer and do not delete or throw it. If you have a proven methodology but it doesn.t seem to be working in a given trading session, don.t go home that night and try to devise another one. If your methodology works more than one-half of the trading sessions, then stick with it.

You are THE MAN (BEST), not your friend. Do not follow someone tricks, just stay tune on your method, try to be YOURSELF because you are the BEST. Learn to accept your comfort zone as it relates to trade size. You are who you are.

NEVER put yourself in Danger Position, so you do not want to play again. Do not used all your money. Never put yourself in the precarious position of losing more money that you can afford. The worst case you can not trade again because you already used all money, so you need submit more funds.

Do not SPECULATE, you will lose. Speculator never success, because it is impossible to speculate and consistently print large winner. The probability of a winning day of week is greatly increased if you trade short term: small winners and even smaller losses.

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