Stock Blog About Becoming A Better Trader

I have been investing for some 22 years and trading for almost 14, and I have learned that if you really want to make BIG and SPEEDY money, it is better to short term trade rather than buy and hold investing, trading can help you turn your trading into a full time business.

Now if you are reading this, you are probably investing and have already achieved some degree of success, long term investing can do this and so can FOREX.

The lessons I have learned as the head trader of a few brokerage firms, my time as a Nasdaq Market Maker, and currently as a professional trader and private hedge fund manager, I can tell you:

Strive to make short term profits on a regular basis. You want cash flow coming from the market you are trading. When you find something that works, keep doing it until it stops working. Do not try and hit and home run on every trade. Just try and get on first base. Do not get emotionally attached to a stock, you are not looking to marry a stock, you are looking to make money from it. Remember, small amounts of money on a regular basis is what you are aiming for.

All stocks are worth nothing.

Do not live in a fantasy world that the stock you are holding will keep going up and provide a sweet retirement for you.

All the great traders could care less which direction the market goes. It doesn’t matter to them if the market goes higher, falls, or even goes sideways for the next 6 years. They just don’t care. All the great traders know that stocks are nothing more than 3 letters and a price written next to it.

You should sit back in cash and only trade when you have a clear advantage. If you don’t have an identifiable advantage then your odds of making money on the trade are no better than playing the lottery. This is the biggest reason why new traders and buy and hold investors lose money in the market.

Take a look at any daily chart of any index or stock and you will probably see the most volatility and the biggest opportunity for profit during the first hour of the stock market’s opening.

Most people sit on their hands during the first hour of trading and do nothing.

You need to be in during the first hour of trading so that you can take advantage of rookie stock traders who are buying on emotion because they saw something on TV last night.