Beginner's Guide to Investing in Stocks

[dekster]

Just to add to the CLT thing I said previously and partly to answer my question, it was said under the premise that the market was efficient. Therefore it would not apply to our stock market which has often been linked to things like insider trading etc. (i.e. imperfect circulation of information) which is basically a major characteristic of market inefficiency.

Having said that, market analysis would probably be the more accurate tool.

[Spyfrat]

Originally posted by dekster
about the coin thing, would it really be wrong to bet on tails? I mean if the coin is truly fair i.e. the event is perfectly random, diba masusunod yung probability niya as time increases? Sooner or later, magsusunod-sunuran na ba yung mga tails?

duno bout da coins pero kung sa stock market yan it would be catching a falling knife if ull bet against the trend. i dont mind positioning at a high price as long as the trend is up. buy low sell high is a falacy to actual stock market trading. i do bottom fish if i see a gud entry/support level (re: double bottom scenario).

[richyuppie]

ready2go, this one's better:

TIME TESTED CLASSIC TRADING RULES FOR THE MODERN TRADER TO LIVE BY
by Linda Bradford Raschke

This is a list of classic trading rules that was given to me while on the trading floor in 1984. A senior trader collected these rules from classic trading literature throughout the twentieth century. They obviously withstand the age-old test of time.

I'm sure most everybody knows these truisms in their hearts, but this list is nicely edited and makes a good read.

1. Plan your trades. Trade your plan.
2. Keep records of your trading results.
3. Keep a positive attitude, no matter how much you lose.
4. Don't take the market home.
5. Continually set higher trading goals.
6. Successful traders buy into bad news and sell into good news.
7. Successful traders are not afraid to buy high and sell low.
8. Successful traders have a well-scheduled planned time for studying the markets.
9. Successful traders isolate themselves from the opinions of others.
10. Continually strive for patience, perseverance, determination, and rational action.
11. Limit your losses - use stops!
12. Never cancel a stop loss order after you have placed it!
13. Place the stop at the time you make your trade.
14. Never get into the market because you are anxious because of waiting.
15. Avoid getting in or out of the market too often.
16. Losses make the trader studious - not profits. Take advantage of every loss to improve your knowledge of market action.
17. The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
18. Always discipline yourself by following a pre-determined set of rules.
19. Remember that a bear market will give back in one month what a bull market has taken three months to build.
20. Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.
21. You must have a program, you must know your program, and you must follow your program.
22. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
23. Split your profits right down the middle and never risk more than 50% of them again in the market.
24. The key to successful trading is know yourself and your stress point.
25. The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
26. In trading as in fencing there are the quick and the dead.
27. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.
28. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.
29. Accept failure as a step towards victory.
30. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don't let ego and greed inhibit clear thinking and hard work.
31. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.
32. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.
33. It's much easier to put on a trade than to take it off.
34. If a market doesn't do what you think it should do, get out.
35. Beware of large positions that can control your emotions. Don't be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.
36. Never add to a losing position.
37. Beware of trying to pick tops or bottoms.
38. You must believe in yourself and your judgment if you expect to make a living at this game.
39. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be - up or down.
40. A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss - that is what does the damage to the pocket book and to the soul.
41. Never volunteer advice and never brag of your winnings.
42. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.
43. Standing aside is a position.
44. It is better to be more interested in the market's reaction to new information than in the piece of news itself.
45. If you don't know who you are, the markets are an expensive place to find out.
46. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word - Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.
47. Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.
48. When the ship starts to sink, don't pray - jump!
49. Lose your opinion - not your money.
50. Assimilate into your very bones a set of trading rules that works for you.

[Spyfrat]

6. Successful traders buy into bad news and sell into good news. <--- emotions i like.
7. Successful traders are not afraid to buy high and sell low. <--- wag lang araw arawin hehe
20. Don't ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point. <--- if u hear ur fundman says, long term tayo, ignore short term volatility. then eto yun.
27. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success. <--- time to throw away those books.
32. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed. <--- respect the market...always.
36. Never add to a losing position. <--- dollar cost averaging or averaging down sounds familiar.

[richyuppie]

Hey spyfrat! ---> Indeed!

[Spyfrat]

hehe
dude ano valits sa rfm, huge cross kanina.

[richyuppie]

RFM??? Pinapansin pa ba yun?? hehehe joke. Anyway, I forgot who the broker was. I'll ask my friend in the floor tomorrow.

Indeed!

[Trender]

Do anyone of you knows how to participate in the Stock Market trading?

Matagal ko na kasing gustong mag-invest sa Stock Market kaya lang I don't how and where to start...hindi ko rin alam kung ano ang pros and cons ng ganung business......

Baka naman pwede niyon akong turuan......

[Spyfrat]

meron thread "greed is good" and "how to invest" na about stkmrkt investing.
but if u want 2 b a player one needs resources (lotsagrand), diff accounts wid diff brokers,price monitoring system (meron sa web, meron rin reuters, bloomberg, technistock, maktrade, utop),knowledge in technical analysis and most importantly experience 2 control your emotions.
saka dapat may background music habang naglalaro sa market hehe preferably systems of a down, metallica, dream theater, joe satriani, stryper, petra at dapat hindi mawawala yung U2. wag na wag patugtugin yung cd nang sexbomb dancers dahil nakakadistract yun

[richyuppie]

Originally posted by Spyfrat

saka dapat may background music habang naglalaro sa market hehe preferably systems of a down, metallica, dream theater, joe satriani, stryper, petra at dapat hindi mawawala yung U2. wag na wag patugtugin yung cd nang sexbomb dancers dahil nakakadistract yun

Don't forget Alice In Chains, Nine In Nails, and other similar bands who's messages are of depression, anger, and hated. Hehehe

Indeed!

[Spyfrat]

hehe
naalala ko 2loy nung kabataan ko GnR's November Rain.

emotions i like

[Hulk]

We once played Andrew E's Wholesome cd while trading, sa Bloomberg namin. He! he! he! Pinagbawalan kami ng Excom afterwards!

Guys may free stock market price updates website ba?

[Spyfrat]

hehe hulkdude.

www.technistock.com
sa far right corner, pls click yung technistock.net
kasi kung direct nating ilagay yung www.technistock.net.ph redirect pa rin sa www.technistock.com
after lumabas yung technistock.net, click philippines, lalabas na yung hp for phil stocks. click quotes for real-time prices, meron rin charts, research (fs, dividend history & stuffs), news and more.
everything is free except sa research, u need to register..well for free rin hehe

www.citiseconline.com
this is the best site, luma ** yung level2 na gamit nang mga kano, and this is like the level3 used by market makers, well sort of

after nakapunta ka sa site, please click citisecquote.com na ad. nd pwede direct url ulit. once ur in citisecquote.com na site, explore "your" edge. lahat nang trades makikita mo. believe it or not, you can even monitor what ing baring is buying or what deutsche morgan was selling (same sa technistock software dati na feature). you can see with your own eyes, what poren brokers dump and what they like. you can see in your eyes how players manipulate stocks using diff brokers. you can see how many shares a broker bought or sold. what made the index up or down, how many points did PLDT contribute and the rest of the blues. in short detalyado lahat

this post will self destruct in a few hours hehe

[Hulk]

Salamat Spyfrat.

[Spyfrat]

ur welcome hulkdudedapogi

[richyuppie]

Originally posted by Spyfrat
hehe
naalala ko 2loy nung kabataan ko GnR's November Rain.

emotions i like

Are you sure bata ka pa nun??? Hehehe joke lang spydude.

Nursery pa ako nung ni-release yung November Rain!!!

Indeed!

[ice_demon]

hi! i'm currently curious about stock markets, but i don't have any knowledge about it. can anyone prefer me a book or article about stock markets? better if you have a pdf file. thanks!

[~shalala~]

I would like to try trading stocks... I'm a newbie though.

Any advice / suggestions???

Thanks in advance.

[DaNa8]

Hi sis! There's already a long thread here about Stock Investing. You'll get lots of info there.

[tidus1203]

You could start with Absolute Trader's basic seminar on technical analysis. (http://www.absolutetraders.com/content/view/60/35/)

Technical analysis is a tool that can help you make informed trading decisions on when to enter and exit a trade, and reduce risk by using the charts.