Trading Tips No 8: Picking the Best Stock Market Price

Carefully thinking through your goal as a trader is of prime importance, when picking the best stock market price. It is very difficult if not impossible to meet a goal that is ill defined. Is your goal to trade frequently, irrespective of market conditions irregardless of what the stock market price is? Or is it to trade for the excitement of it all. A more sober assessment would probably yield a goal of making money - but how much and at what risk? How do you determine what the best stock market price is? Ultimately, a well-defined trading goal should specify the desired average annual return and the corresponding equity drawdown that a trader is comfortable with, financially and emotionally.

Following a methodology that meets your goal is also of prime importance. This is the key is picking the right stock market price that fits your trading plan. What if you follow a methodology that has the potential to average 30%/year return with limited drawdowns, and that performance level easily meets your goal? Would you continue to follow that methodology? Logic dictates a resounding yes!

But what if that methodology calls for you to limit your trading or to stay in cash for a period of time, say a month or two, due to a lack of high probability opportunities? Or what if that methodology goes into a drawdown period? Then what? Do you have the discipline to stick with your goal and the methodology that could potentially meet your goal, or will you grow impatient and abandon your methodology? It is probably not surprising that the answer to that question is different for professionals (who stick with it) than for amateurs (who often bail out and try something new only to repeat the cycle over and over).

The key to potential trading success and finding the stock market price for entry that is best for you is having a well-defined goal, the methodology to potentially meet that goal, and the discipline to stick with it.

If you would like to learn more about stock trading and you have a computer and a burning desire to seize success, then you have what it takes to personally unearth Bill's Astonishing, step by step trading secrets... BUT ONLY FOR A LIMITED TIME. http://www.instantprofitstoday.org

---

How to Short Stocks? How to Make Money when Your Stocks Go Down by Shorting

The stock market can present you with a lot of... Read More

Peer Groups

Whenever I see mutual fund comparisons in the trade publications... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

Investing Basics - Stocks, Mutual Funds, Real Estate & Online Investing

Have you ever thought of investing? Do you have a... Read More

VooDoo Training For the Stock Market

If you go to Haiti or other places in the... Read More

Parachute Investing

Ever jumped out of an airplane? It's OK if you... Read More

Why the Majority Fail at Stock Investing

The gleam and bright lights of Wall Street lure in... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

Seecrets on Investment: Tired of Making Huge Losses in the Stock Market ? Part 2

Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More

Dont Ask Your Broker

Unfortunately, most of you who are reading my column are... Read More

Commoditizing the world

Let's discuss commodities; with the latest Enron situation, it is... Read More

What Are You Waiting For?

Do you own any mutual funds? In an IRA or... Read More

The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake

If you're a normal human being, your need to feel... Read More

Mid-Cap Stocks: Asset Class with an Identity Crisis

Much like the middle child, mid-cap stocks have long struggled... Read More

A Funny Thing Happened on the Way to the Stock Market

On the 40 year journey through the turmoil of a... Read More

Structured Settlement; Lawyers in NY and Mutual Funds

Minority Report the movie may not be far off if... Read More

The Stock Market Investor?s Worst Enemy

Every stock market investor faces one primal enemy. An enemy... Read More

How Eating Bitumen Made Me a Better Trader

Trading is a fascinating activity.There are so many layers to... Read More

Bollinger Bands Strategies

The Bollinger Band theory is designed to depict the volatility... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

A Common Misconception about Stock Prices

I cringe every time I hear a novice investor tell... Read More

Getting Even

I know there are a lot of you out there... Read More

Choosing a Stock Broker

If you were to find that you had some severe... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

Invest in the stock market for the RIGHT reason, using... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

Stock Investment Advice

Stock investment advice is easy to find. Do you get... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More