Your Questions About Successful Traders Make

Betty asks…

How succesful are stock traders or investors?

John answers:

1. To be a successful stock trader, you have to keep in mind certain critical success factors.

2. Instructions – Focus:

-Write in your journal daily about trades that you make and what your thinking was in making the trades. Self-awareness is a huge factor in stock trading because many traders let their emotions affect their trading decisions. Aspiring stock traders make the mistake of internalizing a loss to reflect how they feel about themselves or the market which often causes them to chase trades in the hopes of making up the money they lost. This manic type of trading to “get back to even” is the bane of intelligent speculation. Commit to developing the self-awareness by writing down all the details of what you are thinking and feeling in any given trading day to avoid this happening to you. The insights you get from having these notes will be priceless.

-Scan the market for high-probability price patterns.

-Implement sound risk control and always use sound money management.

3. For details, please read:

http://www.ehow.com/how_5770028_successful-stock-trader.html#ixzz2fc1eP3yb
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David asks…

Becoming a Trader?

Hi there looking for an experinced answer from someone who has had success with trading not someone who tried it and gave up. Im 19 i live on my own have alot of spare time it would be interesting to try. If you have had success what broker did you use? what stocks? how do you become tatical at trading?

John answers:

In my opinion the majority of people began investing with the mindset of getting rich quick. Over time the unsuccessful traders (gamblers) are weeded out, as their money funnels towards the successful traders (investors).

Thomas is correct that there’s so many people entering the market (especially during prolonged bull runs) who have no clue what they’re doing. However that alone shouldn’t stop someone from entering the market – no one really knows what they’re doing at first.

So Drake, I recommend doing some research before putting your money at risk. Investopedia has some helpful video tutorials that explain the market in an interesting fashion. Afterwards, I’d recommend learning fundamental analysis and basic accounting concepts. Understanding these concepts will put you ahead of many traders, which is the most important quality to possess in the market.

And to answer your questions – I have used Scottrade for over 10 years and have no complaints. As for stock selections – it all depends on the particular second of the day. I only invest in strong, undervalued companies, with preference to those that have taken irrationally low price dips. Investing in this manner will make you successful if done correctly, however it takes strong emotional restraint to constantly go against the grain.

Sandra asks…

Howmuch trader invest to earn 100k annually?

trader can make about 100k.. howmuch he invest in market to gain 100k?

John answers:

How successful will the trader be. Tell me the return on each investment made and I can tell you if you can accomplish this.

Lizzie asks…

Any succesfull Penny Stock traders?

I’ve done a few years of penny stock trading. Had some success, mostly out of luck. Looking for a friend/mentor to discuss penny stock trading strategies.
Not interested in short selling.

John answers:

There are no “successful” penny stock traders. Yes, in trading penny stocks one can “hit” a winner but they can not do it continuously. And there are no professional penny stock traders since professional would not constantly trade penny stocks

In my 45+ years in this industry, I have never met a trader who specialized in penny stocks,

However, all that said, you can look at the following websites and look into any advertisements that pop up of these sites
Awesome Penny Stocks – http://www.awesomepennystocks.com
Micro Cap Stocks – http://www.mcapstocks.com/Default.asp
Penny Stock Alley – http://www.pennystockalley.com/
Penny Stock Brokers – http://www.penny-stock-brokers.org/
Penny Stock Wizard – http://www.pennystockwizard.com/
Preferred Penny Stocks – http://www.preferredpennystocks.com/
Raging Bull – http://ragingbull.quote.com/cgi-bin/stat…
Stock Gumshoe – http://stockgumshoe.com/tag/jamie-dlugosch/
The Hot Penny Stocks – http://www.thehotpennystocks.com/stock-p…
Stock Marketeers – http://www.stock-marketeers

good luck

William asks…

how to be become a trader?how long does it take?do i need to go to business school?

John answers:

To become a successful trader, you need the following
1 – A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.
2 – Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.
3 – A written money management program in place. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested.
4 – A full and complete understanding of the rules & regulations of the industry

Before you enter into any transaction, you should first know what you’re doing, why you are doing it and how to do it and the rules relating to what you are doing.
Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction,
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Interpretation of Financial Statements by Benjamin Graham
The Warren Buffett Way by Robert Hagstrom
Trading for a Living, by Alexander Elder
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp , http://finance.yahoo.com/ . While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are Investopedia – http://www.investopedia.com/ Stock Charts – http://stockcharts.com/ http://www.investorshub.com/ http://www.1source4stocks.com/, http://www.tradingstocksguide.com/tradin…

Visit some of the more professional websites like Zacks – http://www.zacks.com/ Smart Money – http://www.smartmoney.com/ Schaeffer’s http://www.schaeffersresearch.com/ Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

You do not need to go to a business school, or any school of higher learning but if you want to work in this industry it would help

Good luck on your journey

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