Investing

Day Trading Tips

Written by Rich Hamilton

It's generally accepted that to be successful in stock trading we need to hold rising stocks for as long as possible and sell losers quickly. This is summed up in the trading maxim: "Cut your losses and let your profits run." Do you have the instincts of a successful trader? Most people don't. It's not so much that they hate uncertainty - but they hate losing. Your answers to two simple questions tell you whether your gut instincts are those of a successful stock trader.

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Day Trading Tips

Written by Rich Hamilton on March 15th, 2008

It's generally accepted that to be successful in stock trading we need to hold rising stocks for as long as possible and sell losers quickly. This is summed up in the trading maxim: "Cut your losses and let your profits run." Do you have the instincts of a successful trader? Most people don't. It's not so much that they hate uncertainty - but they hate losing. Your answers to two simple questions tell you whether your gut instincts are those of a successful stock trader.

Read More »

Featured Article

Contrarian Investment

by Laurence Watchman
September 22nd, 2009

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John Maynard Keynes was one of the world’s most successful investors. He said, “When you find any one agreeing with you, change your mind. When I can persuade the Board of my Insurance Company to buy a share, that, I am learning from experience, is the right moment for selling it.”

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Recent Articles

Trading – The Zero Sum Game Not!

by Rich Hamilton
December 24th, 2009

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Luck vs Skill in Investing

by Laurence Watchman
June 10th, 2009

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It’s easy to make money investing during a boom. You don’t need skill. You just need to know the market’s rising. You then need to borrow $50 for every dollar you’ve actually got, and put the whole lot in an index fund. A couple of years later, the market’s risen 30% and for every $100 invested, you’ve got $1,500. No special investment skills required whatsoever.

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Loss of Opportunity is Preferable to Loss of Capital

by Rich Hamilton
March 16th, 2009

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If you accumulate some capital, the most important thing you can do is not lose it. A trader who wants to survive and prosper must control his losses. You do that by risking only a tiny fraction of your equity on any single trade.

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Stock Trading – Wise Words and Tips

by Rich Hamilton
December 2nd, 2008

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Analysis is simplifying, breaking down things into parts, picking out strands and elements. Analysis is comparing unknown things with things that are known. Analysis also involves picking out relationships and putting them back together as a whole.

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Mutual Fund Info – Getting the Best Deal

by Rich Hamilton
October 12th, 2008

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Watch out for performance fees charged by mutual funds and investment trusts and investment managers who, instead of saying, “hey, wasn’t I lucky”, say, “hey, it’s time to charge a fat performance fee.” They are a drag on your investment performance.

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Selling Stocks – The right time to sell stocks

by Rich Hamilton
June 19th, 2008

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There is an old saying that says, “any fool can fly, but it takes an expert to land”. Applied to stocks, we say, “any fool can buy but it takes an expert to sell”. Of course, I mean sell profitably. Any fool can get lucky but if you aim to make profits consistently in the stock market, you’ve got to be an expert at selling.

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Day Trading Tips

by Rich Hamilton
March 15th, 2008

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It’s generally accepted that to be successful in stock trading we need to hold rising stocks for as long as possible and sell losers quickly. This is summed up in the trading maxim:

“Cut your losses and let your profits run.”

Do you have the instincts of a successful trader? Most people don’t. It’s not so much that they hate uncertainty – but they hate losing.

Your answers to two simple questions tell you whether your gut instincts are those of a successful stock trader.

Read More »

Stock Market Timing

by Rich Hamilton
January 17th, 2008

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Card counters are feared in casinos. They represent a rare breed – gamblers who can beat the dealer. Unsurprisingly, casinos – hungry to part the foolish from their funds – have banned card counting. How can you grab the card counter’s advantage in the stock market?

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Stock Market Technical Analysis

by Rich Hamilton
August 18th, 2007

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Technical analysis has been around since at least the 1600s, when Japanese rice traders began using candlestick charts to track the market price of rice. Is there any evidence in its favor, or – as some fundamental analysts suggest – is it a sophisticated superstition?

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Fundamental Analysis of Stocks

by Laurence Watchman
June 18th, 2007

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It’s fair to say that pure fundamental analysis can make life unnecessarily hard for most investors. Stockbrokers employ large numbers of economics and accounting graduates to carry out fundamental analysis and stock valuation. Although many authors like to propagate the myth that you can easily beat such analysts, the reality – measured by the success of small investors in the stock market – is that most small investors invest rather poorly.

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