I said on the 19th of August that I would keep a core position in Quest Uranium CorporationQUC.V and enjoy the free ride. And this stock rocketed and showed a profit of 224%. Around 170% I bailed out and stopped following this stock so this percentage last will be added to the results on the right for September.
Some traders don't know when to exit a trade so when for example the stock runs up to 224% and then everyday it looses a bit, first it goes to 200% then 180% and so on, before you know it, you are back to square one.
So at a certain point when you have a nice profit and when it goes down for more then a few days, breaks resistance, and/or trend lines or maybe the news is bad please exit the trade. That way you free up your money, take the profit and can look for another trade. When a few days or weeks later the stock still goes up, well never mind you did good and took your profit.
Since March the S&P 500 is 58% up, but isn't this remarkable recovery coming to an end soon? I would advice to be very aware that a correction will soon follow this up trend. Approaching October it will get more and more dangerous to be (long) in the markets.
Some contrarian traders have been shouting for weeks or months to short the S&P 500 or the Dow Jones and they have lost a lot of money. Do you remember what I posted earlier about following the trend? If you don't please reread that article again.
Please look at this video for a technical analysis of the S&P 500.
You can follow the trend or be a contrarian and go against the trend.
A market can either go up (the price of stocks increase) or go down (prices of stocks decrease). The best way to make a profit is to follow the trend and on the long run you will make money when you use proper money management methods.
You have more than 50% chance that you are right when you follow the trend, the trend is your friend so stick with it.
Please look at the picture at the right and tell me what the trend is? It goes a bit up and down and so on, but clearly the trend is up.
When you want to see the trend visually, you can take a look at MarketClub, I've put a banner under this article, so if you want to check it out, they have a 30 day risk free trial.
Because this site is brand new, we want to start from the beginning and want to add some articles how we started and improved our trading written from our own experience. Now and then more articles will be added to further improve your trading.
How to choose a position? There is more then one method but for starters I would like to introduce the following method. The article covers a longer term investment strategy for trading the DOW but can also be used to trade stocks.
Free trading videos Please take a look at these 7 free trading lessons that will teach you a lot that you need to know before you start trading. I will say it again and again, please first educate yourself so you know what you are doing before entering the markets or you will loose a lot of your hard earned money.
We try to identify good entry points into individual stocks and also try to make you a better trader.
At the moment we like gold and silver mines and oil. The mines we try to pick are the ones we feel have the best potential to go up in the not too distant future. Whenever we like a stock we will post it on the blog and will give a summary together with an entry, exit and stoploss point.
