Day Traders Club

How often have you come across an advertisement or e-mail proclaiming to “teach” you the stock trading secrets that Wall Street Insiders don’t want you to know? Usually included in the descriptions of these trading products are claims such as “Make 10K monthly in minutes per day”, or “Learn the secrets of Professional Stock Brokers”, etc. etc. So what are these “secrets” that they are SELLING?

And if the Wall Street Insiders and the Professional Stock Brokers didn’t want to reveal these trading secrets with you, then how come the companies or individuals selling you these products are so quick to give up these “Never before revealed” techniques?

Is it because they don’t work, or are their products just the basic rules of trading rewritten (once again) in a new and thought provoking way? Or, if you believe everything you read, is it really some highly classified and secret method for trading stocks that is being SOLD here? Read the rest of this entry »

Popularity: 32% [?]

Every stock market investor faces one primal enemy. An enemy so perverse, it will drive thousands of investors from the stock market through its ability to defeat even the most practiced investment strategy. Who is this enemy you ask? Your arch nemesis, in this case, goes by the name E. Motions?don’t ask me what the “E” stands for.

Emotions are the driving force behind every stock market cycle. Quite simply, if they weren’t present in the stock market, investors could be reaping rewards based solely on the expanding or receding economy, and professional traders wouldn’t have any juicy profits from those emotional mistakes to grab. Read the rest of this entry »

Popularity: 19% [?]

With over 6,000 mutual funds available, it may be tempting to pick funds from a popular star or index rating system. Savvy investors, however, balance multiple factors in their selection process. Ratings represent only the historical performance of funds and cannot predict the future.

Performance consistency, management skill, and expense limitations are among the many factors that influence a fund’s prospects. Each must be carefully evaluated to improve your chances of finding a fund to outperform the market. Read the rest of this entry »

Popularity: 45% [?]

What the heck am I talking about?

It is often said that to grow mentally, spiritually, emotionally and personally that you have to stretch and move out of your comfort zone. I definitely believe in this concept, however… When it comes to day trading, swing trading or position trading stocks, futures, options or forex, going outside your comfort zone can be dangerous!

Let me explain… Say, a trader is used to buying 100 shares of a stock at a time with the average value of $50/share. He/she is very comfortable with putting this amount at risk. They never experience any anxiety and can sleep well at night at this level. However, watch what happens when these traders decide to up their ante to 200 – 300 shares. Read the rest of this entry »

Popularity: 21% [?]

When is a dividend not a dividend?

The latest thing “conservative”brokers are preaching these days is to buy stocksthat pay dividends. Everyone likes dividends. Iknow I do, but when Wall Street tells me somethingI am automatically suspicious because they lie tome every day. Is this a new scam? Let’s take alook.

When you buy a bond or a CD at thebank it pays interest and is a real dividend. Youmight get a check every month, quarter or annuallyor receive a credit to your account. The amount ofyour principle (what you paid for it) remains thesame. Yes, that is a true dividend. Read the rest of this entry »

Popularity: 28% [?]

Buy high and sell low — It’s not a typo.

Millions of investors guarantee their failure by selecting mutual funds and stocks based on quarterly or annual performance records. Do you chase performance? You might be buying high and selling low!

As the year draws to a close, millions of mutual fund investors begin an annual event to divine next year’s winners. Yet most of these individuals rely heavily on a time-honored – but terribly wrong – method of evaluating strength. Read the rest of this entry »

Popularity: 23% [?]

(1) Stock Market is Tough Place to Make Any Money Consistently

NASDAQ or SP&500 averaged about -6% per year for 5 years between 1999 and 2003. Many individual investors who made killing in the internet bubble period got wiped out during those 5 years.

Many who trusted Wall Street experts by investing their life savings into mutual fund had rude awakening after the huge loss and scandals in many of the famous fund names.

Numerous academic studies have shown that more than 90% of mutual funds failed to beat market over the long run and that more than 90% of individual investors lost money in the stock market. Too many people and too many Wall Street experts or mutual fund managers are buying and selling stocks like madmen, with no sound strategy or any hope of long term success. Ironically, they’re the ones who create opportunities for prudent, long term oriented investors. Read the rest of this entry »

Popularity: 24% [?]

Every day I see in the financialsection of newspapers how to forecast what themarket will do in 6 months, 12 months, severalyears. “Ten stocks that will double in the next 6months.” Right! I have trouble trying to forecastwhat it will do tomorrow. Do not trust any whoclaims he knows what the future will be for themarket.

Of course, your broker will send yougobs of slick material about various companiesthat predict they will double or triple in thenext 12 months. On the New York Stock Exchangethere will be about one half of one per cent(0.5%) of companies that will double this year.

Are you smart enough to pick those winners? I’mnot and I am considered a professional trader. AndI am sure your broker isn’t either. He just wantsto make a commission and is probably promoting astock his brokerage company wants to push. Read the rest of this entry »

Popularity: 19% [?]

As an investor you will want to checkout any equity before you buy it. Many investorsgo to Morningstar which is one of the largestproviders of mutual fund information in the world.It is assumed that their information is correct.After all that is what you are paying for.

Recently the SEC (Securities andExchange Commission) called them on the carpet fornot correcting an error within a reasonable time(whatever that is according to the SEC). Everyonemakes errors and this was no big deal.

It seems that when you went to theirsite and drew up a chart or asked for statisticson Rock Canyon Top Flight mutual fund it failed tonotify the potential buyer that the fund hadissued a very large dividend of approximately 25%and the NAV (Net Asset Value) dropped from $15 to$11 to reflect the $4.00 dividend. Read the rest of this entry »

Popularity: 25% [?]

When you become interested in a stockor mutual fund you can call your broker and hewill send you reports on how the company is doing,what their management is like and what might bethe projected earnings for the company and how theindustry is doing. Great information.

You will apply yourself to this moundof papers to determine if you want to buy theequity. You might also send for more reports fromindependent analysts such as Morningstar. You willbecome buried in papers. That is what thebrokerage company wants. The reason is verysimple. If you buy the stock after doing all thatresearch and it goes down instead of up they arenot responsible for your stupidity. Of course, ifit goes up they can take credit for providing allthat great information.

Now let’s think for a minute. Youreceived all that information that was alreadyprinted so it could be sent to you. It makes meask when was that printed? How old is theinformation? If I can get all this stuff about thecompany it means that anyone can. What it boilsdown to is the information is just that -information and none of it will tell you that thestock will go up further because the whole worldknows. Read the rest of this entry »

Popularity: 11% [?]