How to trade!

How to Trade - Book Review - John Murphy, Intermarket Analysis

The majority of literature that discusses asset allocation linking multiple markets has a heavy dose of macro and microeconomics. Typically, macro-micro relationships require applying econometric models to comprehend the structural linkages between the two intertwined fields of economics. John Murphy removes the hard statistical methods while retaining the economic logic with chart-based reasoning.

John Murphy was the technical analyst for CNBC-TV for seven years and a professional analyst for over 25 years. His career includes time at Merrill Lynch as a Director of Commodity Technical Analysis. John has his own consulting firm, JJM Technical Advisors. He is also president of MurphyMorris, Inc., which was created to produce educational software products and online services for investors.

There are adequate reader reviews on Amazon and Google Book Search, to help you decide if you will get the book. For those who have just started or are about to read the book, I've summarized the core concepts in the larger and essential chapters to help you get through them quicker.

The number on the right of the title of the chapter is the number of pages contained within that chapter. It is not the page number. The percentages represent how much each chapter makes up of the 246 pages in total, excluding appendices.

1. A Review of the 1980s. 16, 6.50%.

2. 1990 and the First Persian Gulf War. 16, 6.50%.

3. The Stealth Bear Market of 1994. 18, 7.32%.

4. The 1997 Asian Currency Crisis and Deflation. 14, 5.69%.

5. 1999 Intermarket Trends Leading to Market Top. 16, 6.50%.

6. Review of Intermarket Principles. 16, 6.50%.

7. The NASDAQ Bubble Bursts in 2000. 18, 7.32%.

8. Intermarket Picture in Spring 2003. 16, 6.50%.

9. Falling Dollar During 2002 Boosts Commodities. 14, 5.69%.

10. Shifting from Paper to Hard Assets. 14, 5.69%.

11. Futures Markets and Asset Allocation. 20, 8.13%.

12. Intermarket Analysis and the Business Cycle. 20, 8.13%.

13. The Impact of the Business Cycle on Market Sectors. 18, 7.32%.

14. Diversifying with Real Estate. 18, 7.32%.

15. Thinking Globally. 12, 4.88%.

Focus on chapters 3, 7 and 11-14, which makes up about 46% of the book. Especially chapters 11-14 are relevant for practical trading purposes. Unlike my prior book reviews, where I've summarized the key points for each focus chapter, I will summarize the key points across chapters 3, 7 and 11-14. This is to recognize the connectivity of intermarket relationships across the 4 main asset classes of Stocks (Equities), Bonds, Currencies and Commodities. The context of the summary is to be viewed from a retail option trader's perspective.

Here are the Key Directional Intermarket Relationships in brief.

The U.S. Dollar (USD)

• USD turns up as Bonds rise under normal conditions but Bonds fall during deflationary periods. USD turns down as Bonds fall but Bonds rise during deflationary periods.
• USD turns up as Commodities fall. USD turns down as Commodities rise.
• USD turns up as Stocks rise but Stocks fall during deflationary periods. USD turns down as Stocks fall but Stocks rise during deflationary periods.

The USD remains the most liquid of all major traded currencies and maintains its position as the primary global reserve currency, despite growing sentiment for an alternative basket of currencies to replace it.

Bonds

• Bonds turn up as the USD falls but the USD rises during deflationary periods. Bonds turn down as the USD rises but the USD falls during deflationary periods.
• Bonds turn up as Commodities fall. Bonds turn down as Commodities rise.
• Bonds turn up as Stocks rise. Bonds lead Stocks and Stocks lag behind Bonds. Bonds turn down as Stocks fall. Again, Bonds lead Stocks and Stocks lag behind Bonds.

Commodities

• Commodities turn up as the USD falls. Commodities turn down as the USD rises.
• Commodities turn up as Bonds fall. Commodities turn down as Bonds rise.
• Commodities turn up as Stocks fall. Commodities turn down as Stocks rise.

Stocks

• Stocks turn up as the USD rises. Stocks turn down as the USD falls.
• Stocks turn up as Bonds rise. Stocks turn down as Bonds fall. Again, Bonds lead Stocks and Stocks lag behind Bonds.
• Stocks turn up as Commodities fall. Stocks turn down as Commodities rise.

Specific to Equities, as you trade the options on Sector Indexes of the S&P 500, please be aware of the correlation versus non-correlation with other equity and non-equity traded products. I am stating in brief, the more commonly known relationships that are repeatedly elaborated on in the book:

• Changes in Energy (XLE) especially Oil (OIH, OSX) impacts Semiconductors (SMH, SOX).
• Utilities (XLU, UTH, UTY) are negatively correlated with Semiconductors (SMH, SOX).
• With broad-based Equity Indexes, the highest correlation is between Dow Jones and S&P 500.
• Canada benefits from rallies in oil being the ninth largest producer of crude oil globally. While Japan, a major net oil importer suffers. The tickers for this inter-play would be FXC/XDC (Canadian Dollar), FXY/XDN (Japanese Yen) and OIH/OSX (Oil).
• Gold (XAU, GLD) behaves like the Australian Dollar (FXA, XDA). Australia is the third largest producer of gold globally.
• Top three currencies that have the tightest correlations with commodities are the Australian Dollar, the Canadian Dollar and the New Zealand Dollar.
• Gold/Silver (XAU, GLD) has very little correlation with other Indices.
A deeper understanding of these inter-plays can help you construct effective pairs trading methods.

In conclusion, from a retail option trader's viewpoint, always remember that it is volatility that you are trading. To trade the volatilities across multiple asset classes, use an optionable Index representing that particular asset class. Remember, Implied Volatility can be added to or reduced from your portfolio, as not all Asset Classes or Sectors or Individual Companies or Countries move up/down in value ALL at the same time; and/or, ALL at the same rate.

This is not a criticism of the book but a personal observation. It does not address the use of Relative Strength as a mechanism to cycle in or cycle out of an asset class, as one asset class weakens or strengthens against another asset class. I have written about Relative Strength in another article, entitled "Stock Option Trading - Fundamental Flaw in Fundamental Analysis and Stock Picking". Please read it as a supplement to this article.

Thanks for reading my article,
Clinton Lee.
Founder, Home Options Trading: a uniquely retail-focused option-centric trading firm.

Please see Consistent Results (http://www.homeoptionstrading.com/consistent_results/), displaying the Model Portfolio's Performance YTD, updated each month-end. The portfolio models a typical self-directed retail option trader's account up to USD $50,000. Here's the stats in summary:
Return: Profit/Start of Year Cash Balance = up +75.62%.
Win/Loss Probability = 90.48%. 9 Wins per 1 Loss. Average Win/Average Loss = $3.09 Won per $1 Loss. Performance Ratio = (Win/Loss Probability) x (Average Win/Average Loss) = 90.48% x $3.09 = 2.80. Positive Expectancy = $1,051 per trade.

Preview an original 55 hour video-based course for online options trading from home, at http://www.homeoptionstrading.com/original_curriculum.html
Purchase the curriculum and receive a $800 options basic course as a Bonus!

Clinton's career spans 16 years of treasury, finance and banking across Hewlett Packard, JP Morgan Chase, Citibank; and, is currently a Corporate Director for Regional Business Development with ABN Amro (acquired by RBS) in Asia. Despite the years in the finance/banking industry, it did not help him directly grasp online options trading from home.

Article Source: http://EzineArticles.com/?expert=Clinton_Lee

The best stock option trading software

The Best Day Trading Software - How to Find the Best Software That Will Make You a Lot of Money

Day trading software is one of the best ways of stock trading; it is a fully automated system that makes use of twenty three professional stock trading tips and twenty three price patterns to assess which stock is likely to go high and is worth investing in. The software is quite complex in its application - it can literally watch thousands of stocks at once - but easy to use. Those who are new to stock trading should undertake the video training offered by the software developer if they want to get the best out of their investment.

The most basic description of this Day Trading Software is that it is a means of analyzing stocks and what they are doing. Contrary to most people's expectations, the Day Trader does not go for large stock, but for small penny stocks that will bring you a good return of several hundred dollars each day without a great deal of risk. Basically the software views thousands of stocks at a time and uses professional stock trading methods to analyze what it sees. The Robot also matches stock with any one of twenty three different pricing techniques and if the stock forms one of those techniques then it will be watched to see whether it is going to rocket, if that happens the Robot will notify you with a bleep.

The technical stock analysis that the trading software makes is not limited to the software, it is a process that is used by professional stock traders all of the time to see which stock will give them the best return. The process of technical analysis is used by share traders, option traders and mutual fund managers, as well as the trading software. If you are just starting out with the Day Trading Robot then you won't get the software but you will get a tip on the market every day.

One of the great features about the Day Trading Robot is that the software has the ability to monitor and change its approach when dealing with stocks by checking what it has predicted against the outcomes of the tip.

People who use the software and undertake the training that is offered by the developer say that once they have learned about the twenty three pricing patterns and how to identify when a stock is forming one, make themselves a lot of money every day. These techniques will allow you to identify a lot more lucrative stock trades with very little risk attached to the investment. One thing that new traders learn from the software, is that it is often more lucrative in the long term to identify small penny stocks, than it is the big ones.

You will find Day Trader Software if you go over to Ivan's site where he will tell you how to get the software and the training videos. You may also get other training materials that will help in your stock trading career.

Tackle the issues surround stock trading by letting a professional software find the next big penny stocks for you. You don't have to sit back and wait for others to take away riches; you can use the Day Trading Robot to handle all of the risks. This is the most accurate stock picking robot in history and it is completely risk free for 60 days.

Article Source: http://EzineArticles.com/?expert=Peter_Skotnicky

Use stock option trading softwarethe right way!

Invest Smartly With Investment Software Programs

Stock investors can benefit greatly with a variety of investment software programs for stock trading. If you're currently stock trading and investing in the capital and mutual funds marketplaces, an investment software will make tracking, streamlining, buying, and selling of your portfolio much easier.

If you're a very serious stock trader, then you have to get one of these programs to make your life easier and more productive. Information is the most important piece of investing. Analysis of all incoming information regarding stock prices and quotes is also important to make you money. This analysis determines what you will buy, sell, trade, or keep. This is where money is made in the market.

Having all the information organized in a digestible and easy to comprehend way will save you a tremendous amount of of time when decision-making is crucial. Investment software programs couldn't be any more helpful. A quality analysis program for investing can help you located and uncover many hot stocks and obscured ones worth buying for the day. It will also uncover niche stocks that you've never looked into before. The result is more money made at the end of the day.

Different types of investing software exists for your picking. The basic software programs will help you spot trends on a chart and analyze the risk and reward using real-time charts and graphs in pictorial and bar form. A stock's performances on the floor will be recorded and sketched onto these graphs for analysis.

This shows the companies progress over time so you can decide if they're worth buying or selling. Customization is also available as a savvy option for traders. Consider picking up a program today to bolster your trading and investment results for long term success.

If you want to find out more about our investment software recommendations, check out our stock investing software articles.

Zhi Huang is a freelance writer, internet marketer, and fitness enthusiast.

Article Source: http://EzineArticles.com/?expert=Zhi_Q_Huang

Currency trading stock market trading tradingguideonline

A Quick Introduction to Currency Trading

There are three different types of currency trading; forex, foreign exchange and fx. These types of currency trading involve exchanging one currency for another. The aim is to make profit when the exchange rates change. The exchange rates constantly change due to world events and changes in the stock exchange, so there is always money to be made on a daily basis.

A good example of this is if someone exchanges US dollars for British pounds. If you exchanged $100 right now, you'd likely get £65. Then if you wait a few days for the exchange rate to change in your favor, you could potentially exchange that £65 for $102. So, you would have made a $2 profit, or 2% of your investment.

Experienced currency traders do this sort of thing, day in, day out, hoping that they boost their bank balances through a number of small trades. Usually, the experienced traders will trade on margins so they can control the large amounts with only a small investment on their part. From the above example, you would only have to hold about $10 in your brokerage account to make the purchase. Even though you are $90 short as the amount is $100. Your broker will usually cover the rest of the money, if they can assume that the market is not going to change by more than 10% in a short period of time.

It's likely that you've only just recently found out about forex trading, and that's because it only became an available option to the public when the Internet was invented. Forex trading has been going on for 30 years or so, but before the Internet only banks and other rich institutions traded. But these days, regular people like you and me can trade thanks to the power of the Internet. The banks are still the major players in the game though. Around $4 trillion dollars changes hands every day in currency trading, but only a small part of that belongs to us, regular individuals.

You can make a currency trade at almost any time of the day or night, due to foreign exchange being a worldwide market. For example, in Australia they open up the market first every single day, and when that market closes for the day, the New York one opens up. So for 5 days a week foreign exchange is truly a 24 hour market.

Many new traders believe that they are limited to dealing in their own currency, but that's not the case at all. If your local economy is in an unpredictable state, you can choose to trade different currencies that are more stable. Sometimes dealing with currencies that are unstable can be very rewarding, but it's also very risky. So stick to the stable currencies that are not volatile.

You can get started as a trader today with just a few hundred dollars, there are brokers out there that will allow you to do this by providing you with special software that allows you to make trades on your account.

You should know that foreign exchange is a high liquidity market, meaning that the money you invest will not be tied up for long periods of time unlike other stock investments. That's one of the main attractions of trading currencies.

If you have the funds and you're ready to start trading currency you need to possess a few tools that are vital to succeeding with forex. You need good money management skills, self discipline and a profitable system that you need to follow. A decent forex robot to apply your profitable system could be beneficial to you too! Once you possess these skills, and you have the money to invest you can be come quite a successful currency trader.

To learn more about making life changing cash by Forex Trading including tips on Forex Robots visit http://secretsofforexttradingrobots.weebly.com/

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Stock option trading software - Find The Best

How to Find a Powerful Money Making Day Software Stock Trading Software

Day software stock trading has been putting newbie traders on the same level as those who have been doing it for years for quite some time now. How it works is that it's a stock picker which analyzes and dissects real time market data and finds stocks which are set to go on profitable trends using mathematical algorithms so that you can trade accordingly and get in and out of profitable trends at peak times. Here is how to find the best day software stock trading software.

A very easy way to separate the worthy programs from the shams just trying to hop on the success of those which do work is to make sure that the publisher of the day software stock trading program which you are looking at offers a full money back guarantee. Besides being a sign of good faith and one that the publisher stands behind their product, this is also an opportunity to try the program first hand and follow its picks' performances in the market, in fact many publishers encourage it.

Another very important aspect to make sure that the day software stock trading option which you are looking at has is that it focuses on penny stocks exclusively. Some programs are designed to only generate penny stock picks, and this is ideal as penny stocks are not only lower risk investments in general, but they also offer a great deal of more profit potential than normal stocks.

For example, the first penny stock pick which I received from the day software stock trading program which I use was valued at 15 cents a share. I bought a thousand or so shares of this stock with my online trading account and logged out. Not even two days later I logged back in to have my jaw drop when I saw that that 15 cent stock had more than doubled up to 31 cents a share. It continued to climb for a bit before dropping quickly again. I had heard of fluctuations and bursts like this but had never witnessed one that I was invested in with my own eyes. But that is just to give you an idea of the kinds of picks which you can receive with a competent day software stock trading system program.

When in doubt, user reviews are also typically good places to refer to when looking for the best day software stock trading program from those who have used them. Click on the link in this paragraph to find my review site and begin realizing your financial independence immediately.

Article Source: http://EzineArticles.com/?expert=Jonathan_Langley

Forex Trading - WARNING!

Beware of the Risk in Forex Trading - Never Risk the Money You Can't Afford to Loss

I know as well as you know that there is a lot of money to be made in forex trading. Here, profitability in forex trading is expressed in a number of ways. In the forex area, you do not have to have a lot of stupendous wealth to trade the market. This is because unlike most financial markets, this global market allows you to start trading with relatively low capital.

Another unique thing about forex market is that any sort of movement whether upward or downward is an opportunity to trade the market. It doesn't matter whether a currency is crashing or soaring, there is always room for speculation, since you always have the option of buying or selling the currency of your choice. Unlike the stock market, you are not limited to speculations on rising stocks, and a falling market is just as good for business as a rising market.

However, having stated the above, it is pertinent to always have it in mind that as profitable as the forex market is, it still carries all the risks involved with financial trading. You should always be aware of this.

Though trading forex is an exciting business, you should remember always that the market is always on the move and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars. I belief you should know that this trade is always done in currency pairs, since this trade involves the simultaneous buying of a currency and selling of another currency, you should therefore know that this currency pair rates are usually volatile and constantly changing. One way to profit from this is by buying a pair, then selling it at a higher rate. The second is by selling the pair, then buying it at a lower rate.

In addition, try to study the trend of the market, and this is based on the idea that what happened in the past, gives traders an idea of what will happen in the future. Your ability to identify when a pair is in a trend and when it isn't will help you to increase your chances of making profit consistently in the forex market.

The point I am making here is that if you can identify a trend, you can estimate what direction the rate of a currency pair is going. You should therefore exploit the direction of the trend you identify by placing a trade in that direction. For example, if it is in an uptrend mode meaning that the rate is increasing, buying the currency pair will give you a better probability for profit. However, if it is a downtrend, meaning that the rate is decreasing, selling the currency pair will give you a better chance of making money.

The simplest way to identify a trend is through the distinct patterns that the price forms. These can tell you if the market is moving in an uptrend or downtrend. Needless to say here that any mistake will result in great loses to the trader.

Tommy James is a University Lecturer, Researcher and Erudite Public Speaker.

For more advice on how to trade successfully like a professional in forex using the right strategies visit http://robotforexstrategies.blogspot.com - http://fxrobotreports.blogspot.com

Article Source: http://EzineArticles.com/?expert=Tommy_James_Johnson

How to invest in stocks

Stock Trading - How to Invest Safely and Stress-Free

Not All Investments are Risky: Even in the Current Economy

The stock market might be the last place that people would like to put their money right now, considering the economic weather right now. Prices are sky high, bailouts of major institutions are in the works and the common man is beyond worried. The hand wringing and ominous clouds of doom have started for many, and they are considering stashing their remaining cash under the mattress until things take a turn for the better.

That being said, there are investments that are not as risky as others, and they actually can be well worth the effort of finding them. If you are new to the stock market or even if you have traded before, it is wise to keep a few things in mind for your own financial protection. Educate yourself before undertaking any investment plan, even the least risky options do carry risks, none are zero risk. Know what your tolerance and loss cap are before proceeding. Speak to your financial planner about your budget and your projected profits for the coming fiscal year. Know what you can risk and be comfortable with losing that amount so there are no horrible surprises down the road.

Working with a broker can make your trading activity easier- they can guide you to a block of stocks that are giving fair returns for a minimum investment, which is exactly what you want to start with. Nobody dives into the stock market and makes a killing on their first trade, what you want to aim for is slow and steady, consistent performance. Stocks that blow up all of a sudden also have the potential to tank just as fast.

Brokers can also guide you to the right trade analysis software so that you can track your own stocks. Once you become proficient at tracking these trades, you can start selecting some of your own. Use the profits from positive performance stocks to re-invest, and do not use any of your own ready cash to further extend yourself in the market. Start pulling some of these profits back out of the market and putting into interest bearing accounts, while using the rest to invest in more diversified stocks and other financial products. A diversified portfolio is an absolute must, if one of your stocks trends downward, you will still have others to keep your head above water for the time being.

Do not work with a stock broker that pressures you into stocks or other tools that sound risky, no matter how unqualified you think that you are. If you just heard mention of trouble with a stock or a company and that is what you are being pushed to buy, that is a serious problem. Do not get tied into thinking that you have to work with just this broker. If the partnership is not working out for you, move on and find someone else to handle your investments.

You can find lower risk investments by reading the financial pages and logging on to financial websites. If you can understand the charts and analysis, you will have a leg up. Education is key to solid investing; so do not accept the words of a broker as law. Know a little bit about the types of trades that you would like to see made on your behalf and what kind of companies that you would like to invest in. There are some that will be solid performers no matter what the economy looks like, and there are those that are folding left and right. Keep your head up and do not be afraid to put your foot down if you feel uncomfortable with a recommendation.

The Long (Term) and Short (Term) of It

Between the two, short term trading is by far, the more risky option. Long term trading requires more careful consideration and movement, and therefore gives the trader time to reconsider or to find out more information before proceeding. Short term trading usually is quick moving and you must realize that very few people ever have more than very fleeting success in the short term trading market. Knowing this, if you still choose to proceed, do so cautiously. Be vigilant that you remain under your loss cap and know your limits at all times.

Short term trading requires that you know quite a bit of knowledge up front. You must know the stock that you are looking to trade inside and out- its trends, its volume, and its volatility. You must know what this stock has been doing prior to the present, and what it is most likely to do in the near future. If you are at all unsure about any of the aspects of the stock, then do your research before even thinking about investing at this point. Losing all of your money on one ill-planned investment block is not going to help anybody in the long run.

Look at the stock's trend. How is the stock behaving from day to day? While most short term traders will be satisfied with tracking a stock for one or two days, the more cautious trader will wait until they have compiled at least a week or two's worth of information so that they can see what the average trend looks like.

Volatility is the actual movement of the stock market; are there many moves in either direction? Is the market heading up in a large surge or plummeting downward? Or has the market flattened out and turned stagnant? Knowing this information is vital, because it could indicate whether there is a system wide trend beginning or if a positive or negative trend affects only one or two isolated stocks.

Volume simply refers to the number of buyers or sellers of a particular stock and can be indicated by the other information in most cases. Volume can be affected by small traders selling of one or two blocks of stock or larger traders selling larger amounts of their own stocks. Either way, the volume of trading will indicate whether it is a hot seller's market or a more cool, buyer's market.

Volume, volatility and trend are important aspects for choosing your short-term investment stocks, but it is important to be equally informed about the next step in the trading process. You know how to choose hopefully the right stock, now do you know how to proceed with the actual trading of it?

Within short term trading, there are several types of trading that goes on. Of them, there are some that are more common and some that are less used for the short term. Before you even begin to trade, no matter what type of trading that you choose to do, you should have an exit strategy in case your selections start heading south. Do not remain in a bad situation if there is a chance to exit, do so. If you pull out before you lose all of your money, you could always reinvest in a different stock, something you could not do if you do go belly up.

Trend trading is not often done as short term trading. It takes a long time to calculate and chart the trends of a stock and the short-term trader just does not wait around for this information. Of course, there are some moments when the short-term trader will use "trend" as a factor for choosing a stock, but that is not the most common.

Counter trend trading does lend itself most easily to short term trading. You must have some quick cash available to jump on the sudden reversals of trends in certain markets. Once these counter trends are spotted, they become fast moving, hot commodities and if you are lucky enough to jump on it fast enough, you can turn a quick profit.

Breakout trading is another short term trading strategy that requires careful market watching. The trader that uses this strategy will buy a stock as soon as it starts to move up after a period of either little or lateral movement. The opposite of a breakout trend is a "breakdown" where a similarly stagnant stock suddenly takes a turn toward the negative.

Buying stocks that had been strong when they are temporarily weak or vice versa is called "pullback trading" and can be viewed as trading that not only takes advantage of these stock's situation, but also as a method of returning a stock back to its previous levels.

Knowing all of the stock information (volume, trend and volatility) and the short term trading types (trend, counter trend, breakout and pullback) is not enough for success in the short-term market. You must understand that you still need to have solid business savvy and some good fortune. You still must stay below your financial limits, never exceed your own personal loss cap even if you are guaranteed a "sure thing". Financial experts rarely agree on anything but they do on this key fact: the most important thing to consider for short term trading success is discipline. If you have no self-discipline, find another outlet, short term trading is simply not for you.

On the other hand, long term trading takes all of the above traits and one other as well. For the long-term trader, patience can be the key to their ultimate success. Knowing which stocks are going to have a cooling off period followed by a huge upswing can be vital to their moves. They wait like a chess player for the moves to unfold before them before they pounce, snagging stocks that will double or triple in value in the fullness of time. Being able to accurately predict what these long-range trends can be will make you a very wealthy long-term trader, indeed.

Another often overlooked factor to give long term the advantage over short term trading is the actual costs of trades and losses per year. Say you are working with a broker who is (for simplicity) making a nice round, ten percent commission on every trade that you make. If you lose money on that particular trade, you are out not only that amount, but also the ten percent commission, every time. For the short-term trader who makes many trades, that can really add up quickly. The long-term trader will still pay commission, but they will pay far less in commission costs throughout the course of the year because they make far less trades within the course of the year. It is simple and straightforward, but somehow the short-term trader fails to see it. Plainly stated, the short-termer is paying to lose his money. Does that sound financially responsible to you?

Understand that the stock market is changing every day and that trading stocks can be very risky, as well as having the potential to be very rewarding and very interesting. Do not allow yourself to get caught up in the go, go world and do something you are not ready to do, nor financially capable of handling. The money that you invest in the market can be gone in the click of a computer mouse, and the number of businesses that are failing at this moment is frightening. Remain well under you limit and never risk anything you could not bear to lose.

In the end, you are the person that you have to face in the mirror everyday. Do you want to look yourself in the eye and know that you have blown your life's savings on a stock that failed to perform because you did not do the necessary legwork before hand? Of course not. Look before you leap- do your research and know what the trends are for the stock you are buying and what the indicators say for its future. It cannot be said often enough, educate yourself, track the stocks and never risk more than you can afford to lose.

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