Use smart Money Management.
The biggest reason traders quit trading is from incurring huge losses due to poor money management. Use stops, they are there to help you.
There are several different stop loss strategies and they can all be quite effective. Take some time, do your research and see what type fits your trading style best.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
Crude oil futures in the January contract settled last Friday in New York at 36.62 a barrel while currently trading at 34.88 down slightly for the trading week continuing its bearish trend as I was recommending a short position in heating oil offsetting that position last Monday as I’m currently sitting on the sidelines in the energy complex. At the current time crude oil prices are trading far below their 20 and 100 day moving average as this market seems to be headed lower in my opinion, but I am a little concerned that everybody is extremely bearish and generally when everybody’s on one side of the boat that can be a dangerous indicator in my opinion. The commodity markets in general look very weak as there is the possibility in my opinion that prices can trade down to $25 as OPEC not only did not cut production they increased production as they are playing chicken with world production trying to push prices lower sending many other countries including the United States out of producing oil as Saudi Arabia can still be profitable even if these lower levels as many other countries cannot as they will have to slow down production. Continue reading "Weekly Futures Recap With Mike Seery"
Let your profits run.
Letting your profits run is tough mentally and often leads to traders closing out trades too early. It feels risky, but once you understand that trying to protect every penny of your profit prevents you from making a bigger profit, you will be on the road to success.
Don't sell on fear and impatience. Remember your plan.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Don't try to buy the bottom or sell the top. It's incredibly hard to time the market.
How many times have you sold at what you thought was the top only to see the market head higher? And conversely, bought at what you thought was the bottom only to see the market erode further? Instead, focus on hitting that middle 80% of the trade.
It's OK to give up a little bit at the beginning and end of the trade to make a profit.
After all, a profit is a profit.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Think percentages vs. number of shares.
As you build your portfolio of stocks, concentrate on the percentage of your overall portfolio you want to invest and don't focus on the number of shares.
For example, one of the biggest mistakes novice investors make is buying 50, 75 or 100 shares of a stock. Instead, take your overall portfolio value and divide it evenly into percentages and then purchase your investments according to this plan.
Remember tip #5? It's easier to diversify using percentages.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
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