Discussion in 'Trading' started by daytradingebook, Mar 17, 2002.
Web site address removed by Administrator due to possible virus
free lessons and ebooks
Very current. Fractions and all.
It's from the On-Line Trading Academy.
The "e-book" is a software program. It contains a "stock picks" section as well as a "rumor board." It crashed my computer before I got much farther.
I was once subjected to an "educational" video tape from the OLTA. It should have been entitled, "Amazing Long Set-ups that Worked in 1999...sometimes." There was FAR more comedic value than anything else. It was like "Grandpa's Do-It-Yourself Day Trading Video." It was hilarious. I watched it with some other traders, and we were cracking up.
Now they crashed Tripod with their e-book.
hmmm... link doesn't work - bandwith exceeded. Just how big is this e-book?
Probably got viruses and trojan horses in it too... its an AVOID in my opinion...
Did some body say Trojan sounds like a RAPEING is a coming. At least you will be protected.
use IE 6.0 to download then run it no prob, do not use Netscape not worth trouble, it function much like a stand alone browse when you run it. Hi speed line recomm.
Here is "the good stuff." (and I use that term loosely) The rest is a giant sales pitch. I tried to upload this as a file, but I don't have Word, and ET won't let me upload a Wordpad file.
Trading Tip #1: Historical Data
Estimates are important because we value stock based on what we think will happen in the future. But don't ignore the past. Historical data can do much to shed light on the believability of published growth projections.
Trading Tip #2: If your only tool is a hammer, every problem looks like a nail.
Someone (possibly a financial planner) with a very limited selection of products will naturally try to jam you into those which s/he sells. These may be less suitable than other products not carried.
Trading Tip #3: Don't rush into an investment.
If someone tells you that the opportunity is closing, filling up fast, or in any other way suggests a time pressure, be very leery.
Trading Tip #4: Very low priced stocks require special treatment.
Risks are substantial, bid/asked spreads are large, prices are volatile, and commissions are relatively high. You need a broker who knows how to purchase these stocks and dicker for a good price.
Trading Tip #5: PATIENCE
If there is one thing you must learn, it's patience. Good things come to those who wait, be it low buy prices or high sell prices. Sometimes if you had only waited, you could have sold higher or bought lower. Have patience, it's without a doubt one of the golden keys to making money in the stock market.
Trading Tip #6: REVERSE PSYCHOLOGY
If patience if the golden key to trading, then the silver key is doing things opposite from the rest of the market. You want to buy when the average investor is selling and driving the price down. And when wonderful news is driving a stocks price higher, you want to sell your shares at the over inflated price. Buying when stocks are falling and selling when they are moving into higher ground is one of the hardest things to learn [and do] when you first start trading. We don't have the luxury of holding our stocks for years to help iron out the little highs and lows. We live off the little highs and lows. Buy when there is blood in the streets!
Trading Tip #7: EMOTIONS
The stock market is very good at playing on your emotions. In order to be a good trader, you must look at the market in a cold, hard way. When the masses are selling in a panic, you must stand fast or step up and buy. Remember that the market is made up of emotional sheep buying and selling in waves - you must be the cold, cunning and calculating wolf looking over the heard for your kill. Don't panic sell and don't buy on hysteria.
Trading Tip #8: BID/ASK
If you aren't aware that stocks are sold to you at one price and bought back at a slightly lower price, the difference being the spread, then you may be in for a very big surprise when you go to make your first trade! Trade on stocks with small relative spreads, and spreads that are well controlled (such as on the NYSE board).
Trading Tip #9: MARKET ORDERS
Don't use them unless you have to, and DON'T EVER place a market order for a stock at the opening of the market, or when a stock is making new ground fast (such as during a positive mention on CNBC). Putting in a market order in the first 10 minutes of the market is a sure way of paying the highest possible price for your stock, because as all the built up orders from the previous day go through, it lifts the stock prices for a few minutes. You can be pretty sure that you order will go off at the high of the day this way (but keep in mind it's sometimes handy to sell during this time).
Trading Tip #10: STOP LOSSES
These are almost as bad as market orders. Stop losses are a sure way of selling at a loss. We only recommend using them when you are "in the money" and would normally sell your stock, but want to retain a slight possibility that it might continue to go higher. Stops can also be used to sell your stock a little quicker in volatile markets, as stops seem to taken a little more seriously than market and limit orders when bid prices are being changed rapidly.
Trading Tip #11: BUYING LOW
Sometimes the best way to buy low is to put in a limit order for a stock at "a price you'd love to own the stock at". Let's assume for amoment that the stock you want is trading at 20 dollars, try putting in an order at 18 1/2 and wait it out, what do you have to loose? You never know when you might hit the low for the day that way. It's far better than putting your limit order at 19 7/8, only to find it crashed past that, filled your order and continued down to 18 3/8. You'd be surprised what an effective way this can be to both buy and sell. When you get your "dream" price, it's a great feeling.
Trading Tip #12: SELLING
Selling is actually harder than buying in many ways. If you are trading a stock, then decide what price you want to sell your stock at as soon as you buy it, so when that price does come along, you'll be ready to move. Using a GTC order ( good till cancel) is also a good way to sell stocks once you own them, since many times a stock will move up for just seconds - not even enough time to get to the phone, let alone place your order. But if it's "on the books" when the stock makes a quick run up, you'll be right there selling it. A good way to calculate your sale price is based on how much you'd like to make for the day. $500, $1000, $5000, etc. Then calculate back the price you need to sell at and stick to it.
Trading Tip #13: FREE LUNCH
If there is a free lunch in day trading, it's picking stocks that are making new medium trend highs to trade with. That way if you do get in at the wrong point, there's a much better chance that your high buy will turn into the next low buy as the stock moves higher in its overall trend. This is one of the only safety nets you have in day trading, when combined with patience and some extra cash reserves.
Trading Tip #14: IF YOU ARE WRONG
Then you are wrong. Don't try to justify a bad trade by convincing yourself it will turn into a good trade. If you buy on the high side, then sell at break even and buy back in on the low side. Talking yourself into believing that your mistakes are actually wise moves in disguise is very costly. Be professional enough to spot your mistakes and move on - think of it as day trader insurance.
Trading Tip #15: PROFITS AREN'T AS IMPORTANT
As your capital. If you miss out on some profits, that's okay, you can always find another stock to buy. However, if you lose a big chunk of your trading money then the game is over. Protecting your trading capital is your number one mission, followed, of course by increasing it.
Trading Tip #16: DON'T GET GREEDY
Greed and fear drive the markets and for the most part drive the average investor to making mistakes. Sell with good profits, but don't get too greedy. A savvy trader once said, "Pigs get fat, hogs get slaughtered".
Trading Tip #17: BIG SWINGS
Big moves up are sometimes followed by big moves down and visa versa. Sell on abnormally large moves to the upside and buy on abnormally moves to the down side. They are generally out of character of the stock and can many times be followed by a "snap back" on the stock. Knowing your stock's trading habits can be very helpful.
Trading Tip #18: HOT STOCKS
Stocks that are hot move great, but nothing lasts for ever. If you buy a stock for a big, quick gain and find that the stock has "lost its heat", don't allow your money to be dead (unless you are looking for an investment). Sell and move on, don't justify your mistakes - it tends to be a costly justification process in the long run. Others in the stock for the hot ride will start to bail out when as the stock cools off and looks like it's not capable of making "hot moves".
Trading Tip #19: JUSTIFICATION IS COSTLY
Don't hold a losing stock to justify your original purchase. If you make an incorrect buy or end up with a stock that is falling when you thought it would climb, handle those mistakes quickly - do not be tolerant of stocks that are costing you time and money - get rid of them!
Trading Tip #20: SUDDEN MOVES UP
Be very careful buying stocks that have just made sudden moves up. Many times they are following very closely with sudden profit taking.
Trading Tip #21: TIME TO BUY
One of the best times to buy is when a stock is going down on low volume (with no news) as compared to recent increases on higher volume. This suggests that the selling is lighter and that the holders of the stock that are going to sell have finished selling and the rest are holding. The sellers of the stocks then may come back into the market when they see the price stabilize. It's also not a bad idea to sell on high volume on the way up, as this usually creates abnormally high prices that cannot be maintained very long.
Trading Tip #22: SIDELINES
Remember, you can't take advantage of market dips if you are already in the market. It's better to be out of the market more for day trading than in the market. This will allow you to get in and out with profits fast and be on the sidelines should dips occur. Try to be out of the market more with your trades and in the market more with you investments (as long as they are good ones).
Trading Tip #23: DAILY VOLUME
Do not day trade in thinly traded markets, or on stocks that have very low volume. You may find you can't get out of the market as timely as you think.
Trading Tip #24: IPO
More IPO's trade down from their initial offering than go up. Buying IPO on their initial (or close to their) offerings is very risky. Watch them and try to buy them when they trade below their original slated offering prices (not the price they come to market at). When the IPO is good and gets hit with heavy profit taking, it can be a great buy and return to normal levels quickly.
Trading Tip #25: Market Open
Never buy at market open with a market order.
Trading Tip #26: Blood
Buy when there is blood in the streets - a lot of blood!
Trading Tip #27: News
Buy stocks that are in the news a lot.
Trading Tip #28: Day Trading
Do not try to day trade stocks with small daily moves.
Trading Tip #29: GREED
The more money you have the less movement you need - don't get greedy.
Trading Tip #30: CAPITAL
Saving your capital is more important than making money.
Trading Tip #31: BUY/SELL
Deciding your selling point is more important than you buying point.
Trading Tip #32: No risk in profit taking
There is no down side to taking profits - you miss gains in 1000's of stocks every day.
Trading Tip #33: PROTECTION
Protect profits with stop losses.
Trading Tip #34: Know what you're getting into
Check market cap and look for reverse splits.
Trading Tip #35: TOP ADVICE
Call the company when possible.
Trading Tip #36: NEWS
All news you hear is in the price of the stock in most cases.
Trading Tip #37: A MUST
Learn technical analysis of charts.
Trading Tip #38: DON'T TRADE THE MARKET TRADE THE COMPANY
Each low price stock operates in its own world with very little relationship to the "Dow" or "S&P 500" performances.
Trading Tip #39: PURCHASE STOCKS
Purchase stocks whenever possible, that relate to a business or occupation YOU PERSONALLY have some expertise; i.e., STICK TO SOMETHING YOU UNDERSTAND.
Trading Tip #40: NEVER EVER
NEVER RISK ANY MORE MONEY IN STOCKS THAN YOU CAN AFFORD TO LOSE. Know your psychological risk level.
Trading Tip #41: DON'T BUY ON TIPS
NEVER BUY ON FRIENDLY TIPS OR TELEPHONE SALES OFFERINGS without thoroughly checking with your broker.
Trading Tip #42: DEAL WITH A FIRM and/or BROKER THAT CAN DO RESEARCH FOR YOU
Believe it or not, commissions are the smallest cost of your investment. It is important that you retain a BROKER YOU CAN TRUST!
Trading Tip #43: DIVERSIFY!
Never gamble all of your money on one throw of the dice. Don't even invest in only one category of stocks. SPREAD YOUR RISK.
Trading Tip #44: DON'T BECOME EMOTIONALLY ATTACHED TO ANY STOCK
Shares going down in price don't always indicate a good time to average your original investment.
Trading Tip #45: SELL WHENEVER YOU FIND OUT THE INSIDERS ARE DIVESTING
Regardless of their reasons, do not take the chance of holding stock in their company.
Trading Tip #46: WATCH THE SPREAD
A LOW BID and a HIGH ASK indicates that buyers are not reaching for the shares offered.
Trading Tip #47: WHEN VOLUME DRIES UP...
As a stock hits new highs, it may be time to sell and take your profit. WATCH IT CLOSELY.
Trading Tip #48: YOU NEVER GO BROKE BY TAKING PROFITS
Whenever possible sell enough stock to break even on your initial investment. BUILD YOUR PORTFOLIO ON "FREE STOCKS". Don't worry about taxes. If you owe some, it means you've won in the biggest gambling casino of all.
Trading Tip #49: SELL YOUR LOSERS AND LET YOUR WINNERS RUN
How many times have you sold a stock that was up a few points while keeping one that was down? Guess what? Wrong move. The stock going up is doing what you expected; the one going down is not doing what you expected. Sell the loser! Not the winner.
Trading Tip #50: Never buy a stock just because it has a low price
Price can be one of your parameters, but it should not be the only one. Buy stocks that you think will go up. I would much rather own 200 shares of a $20 stock that has earnings behind it, than 2000 shares of a $2 stock that has nothing but a story behind it. If you want to gamble, go to Las Vegas.
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