We are in the middle of earnings season. One company after another publishes its own business results from last quarter. Such report could affect stock trading and stock investing very much.
I personally do not like to hold any trade during earnings date and this article describes why.
We are sending orders to our online stock broker during any trade several times. There are entry orders, exit orders and other orders that we use. What orders do you use ?
I personally recommend to use these type of orders when managing any particular stock trade.
Private traders tend to define any trade done with discount stock broker for lowest possible fees as low cost stock trade.
But every time I argue that stock broker fees are not biggest problem for any private trader. The most important issue to achieve low cost stock trade is to manage stock trading risk accordingly. Only trades with minimal risks can be named as low cost stock trades.
I have been asked recently how many profitable trades should trader do to make money by trading. It is common belief that trader should make a lot of trades, almost all, profitable to achieve this goals.
It is not correct. I have read several discussions of different traders, where I noted that they were profitable already with profits only in half of all trades. Yes they finish only 50% of trades with profit and are able to make money.
My personal experience tells me that even I have bad month and I finish only 30% of all trades in profit, I am able to be break even for a month.
One of key stock trading secrets how to do it is to avoid big losses in trading.
As stock market situation is turning bearish then it is practical to stop using stock trading strategy for bullish markets and use stock trading strategy for declining markets – downtrend. Do you have one ?
Risk management is very important also for best stock picks
Stock charts technical analysis can explain why is important to never chase trades. It is really not necessary to chase entry in any stock trade. It is much better to wait for another stock pick or new trade setup in your best stock pick.
If you think about cheap stock trades then you have to think more about risk than about stock broker commissions. I had this page describing that management of risk is much more important.
I have noticed bearish stock chart pattern known as Island reversal on NFLX chart. This bearish stock chart pattern produce two gaps which act as strong resistance . NFLX was leader of last market advance. Now sits right on trendline. It is important to watch how it will act
It is too early to call a top in this NFLX trend, but situation starts to look less bullish. If you hold some NFLX, use trailing stop to lock you gains. It is important to manage your open trades.
I bought CPN based on setup in my trading newsletter during fear and panic last week. And CPN is really strong. It moved up. I think that CPN has more upside potential.
AAPL stock has broken support levels and is poised for more declines. Uptrend finished.
