January 20th, 2015
Dollar cost averaging is a technique that many financial gurus (not necessarily stock market gurus) try to push you into…especially if you’re a beginner investor. It entails averaging all your stocks together. The gurus push this technique by saying if you dollar cost average while the market is low, you will gain more when it rises.
This concept isn't right and it can lead to dangerous transactions and an incorrect view of the stock market as a whole.
January 19th, 2015
January 15th, 2015
January 13th, 2015
January 13th, 2015
There are a number of reasons I may choose to close out of a trade. Today I want to share my thought process with you and explain how and why I close my position on certain trades.
If a stock has run up a huge profit (relative to what would normally have been expected), I may take off the table. I’ll look at the projected move of my A-B, B-C and C-D patterns. If it’s already hitting its move, the risk-to-reward ratio may not be in your favor for much longer. It’s a good idea to collect your profits while you can.
What do I mean by “choppy”? A choppy stock could be moving all over the place, it may be brand new to the market, it may start acting volatile. I like to trade stocks with clean charts; I like stocks that are moving in a clearly defined pattern. If a stock I entered starts acting chopping, even if I just entered it, I’ll probably close it.
What do I mean by “sluggish”? I mean a stock that is going sideways or is only moving very slightly, very slowly. Whatever your directional play is (butterfly spread, vertical spread, etc.), if the stock isn’t moving then it may be time to get out. I want to see stocks that are moving. I want stocks that move the most points in the shortest amount of time – I don’t want sluggish stocks that just sit there and do nothing.
If the stock is not behaving the way you had projected or anticipated…for example, if it’s not retracing at the volume you expected, then you want to take that trade off. There could be a change or shift in the momentum or in the attitudes toward this stock – if those changes are not in your favor, then exit the trade.
If you’re trying to trade stocks that aren’t in your favor, then the risk is against you. Instead, I recommend that you focus on finding trades that will be in your favor – stocks that move and behave properly.
We’re looking at the big picture here. If I enter a stock and 10 minutes later it is acting sluggish or people start selling off their shares, then I’ll get out….even if it means I’ll take a hit. It’s worth taking a small hit to make sure I’m in the kind of stock that will be profitable for me in the longer run.
January 11th, 2015
January 8th, 2015
January 7th, 2015
January 6th, 2015
Many of us want to get into a trade as soon as possible – right when the opening bell rings. We want to start our day with a healthy trade and make cash from it. However, I always advise beginners to stay away from the first 30 minutes of trading...
Why should you stay away from the first 30 minutes of trading? Won't you miss out on trades?
January 4th, 2015
I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More
