This may just be the most important stock market tutorial video you will ever watch. Most stock traders focus on buying a stock, and how much money they will make on the upside if the stock goes up x%. In this video, Lance explains why this is the opposite approach you should be taking. Understanding the difference between the mindset of amateur stock traders and professional stock traders will give you an edge over the competition.

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When choosing your first stock, pick a company that is well-known, reputable and highly trusted. Buy stocks in a company you are familiar with using advice from a financial consultant in this free video on investments.

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Day trading in stocks is both risky and difficult. Please consult your financial advisor before attempting to trade actively. TodayTrader is not responsible for any content that may be viewed on this channel. These videos are not meant to be recommendations in the market. Day trading equities requires a retail account balance of at least $25,000 and must remain at or above this level to trade stocks actively.

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The best time to get started investing in the stock market is when stocks are at a low point and there is money to be made. Stay conservative in stock-market investing, but become familiar with it by participating and using these tips from an experienced stockbroker in this free instructional video on investments and stocks.

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A lesson on how to incorporate the use of technical indicators when placing stops in the forex, futures, and stock market.

Many successful traders look for entry opportunities which allow them to set their stop so that there are multiple support or resistance points between their entry point and stop level, and few if any support or resistance points between their entry price and their target. How do you choose which indicator if any to look at when deciding when to exit a trade. Which indicator if any you choose to include in your money man
agement strategy for setting stops is going to depend largely on the type of strategy that you are trading. As a general rule however if you use an indicator to signal for example a buy entry on a trade most traders will keep an eye on that same indicator and take into account when that same indicator signals to exit a trade.

As an example of this, lets say that your analysis of the ADX shows that the chart of x is about to start a nice trend and you decide to place a trade on that analysis. Using the knowledge you have gleaned from our lessons on stops so far you also pick a level for your stop which has some nice protection and is close enough that it fits within your two percent loss limit. During this trade however if the ADX which is the indicator you used primarily to enter the trade begins to signal that the trend is weakening and the market is about to range, should you remain in that trade? The answer to that question is going to depend on the strategy and what other things are going on in the market at the time, but I would say at minimum most successful traders would take this into account when deciding whether or not to continue with the position, regardless of whether their stop had been hit or not.

Lastly on this point there is one indicator that so many traders watch that many traders will at least keep an eye on what happens with this indicator and that is the 50 and the 200 day moving average. These indicators are in general thought to be representative of the overall trend in the market and a break above or below these levels and/or a crossing of the 50 day moving average above/below the 200 day moving average is normally seen as significant for a market and as such many traders will take this into account and place their stops accordingly.

As you probably have noticed when thinking about placing stops using indicators, as you don’t know where price is going to be when your indicator signals for a trade exit, you do not have a hard stop in the market, are in the very bad position of not being protected in your trade. This is why, as we have talked about many times in our other lessons, that if this method for setting stops is used it should always be used in conjunction with another method which allows you to set a hard stop and stays within the 2% loss limit rule we have established.

This concept of the stop being a sort of “moving target” is a nice lead in to our next concept and lesson where we are going to be talking about what is known as a trailing stop.

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This video describes how to use good money management rules when trading stocks financial finance

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The Power of Value Investment.

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Well to be honest one never knows exactly with these sort of shenanigans going on but here is an educated guess from the Trading with Common Sense Team.

I think most experts are in accordance with the fact that no one knows exactly how deep the hole is at HBOS (possibly even the HBOS management don’t know which is really worrying) but for a certainty I would bet that the LloydsTSB Hierarchy don’t know and that is what is causing the distress and uncertainty at the moment.

Regarding one of our “2 Sure Fire Winning Strategies” I hope those of you who had downloaded the free report in time took action as there was a nice range of about 40 odd points to aim at and there were profits to be had certainly. I know we didn’t make as much as we could have but the news caught everyone on the hop and I guess that was what added to the confusion and mark down amongst Traders.

Where to next? Well for those adventurous amongst us there has to be the rather enticing prospect of at least some sort of “dead cat bounce” so perhaps a long bought in the 50-55 pence region and then aim for a quick and dirty 10 points or so and get out when it hits the 60 pence region. If nothing else this could certainly help pay for this years family summer holiday and leave the rest of the bounce or so to the “deep pocket brigade”. I always advise on something like this to set your target, aim, fire and then get out before the shouting starts so to speak and also whilst still in profit.

Why do I think there is going to be some sort of “dead cat bounce”?

Well the logic goes as this. Firstly yes there is a hole; we don’t know how deep (possibly as I’ve said the management don’t either) but you can bet the top level management at Lloyds are going to be “working their butts off” to come out with some sort of positive news campaign to reassure the markets. How successful remains to be seen but they will definitely have to try and then let’s see what effect this has. There has to be some and the longevity of this approach depends upon how much “spin goodwill” credits the management team have with the media. I think they have more than most people realise and this is tied into my next viewpoint as to whether the rumours abounding about bank nationalisation are to be taken seriously.

I think Lloyds Banking Group and the entire Banking sector are going to need more cash as we have the full effect of the Alt-A fiasco to percolate through and most of this won’t emerge until after the first quarter of 2009. Secondly this will hit the banks hard but possibly not Lloyds as much as the rest as they were by and large (apart from HBOS) fairly immune to these sorts of transactions prior to the whole banking crisis starting.

Secondly to nationalise Lloyds Banking Group would be a massive act of bad faith on behalf of the UK Government as they did…….er …ask Lloyds to step in as a “White Knight” to rescue HBOS in the first place and to then “nick their shares” and shaft them afterward for being so obliging in the first place would basically send a notice out to the markets that UK Govt Plc (especially Mssrs Brown and Darling) are not to be trusted ever again.

There will be a fudge (there always is, as that is what us Brits are experts in) and some sort of accounting “jiggery pokery” will take place but that is all. The share Price of Lloyds has been in this sort of range before and the key thing is that LloydsTSB via its retail banking operations is sitting on large piles of cash so Aunt Sals and Grannies annuities are safe for the foreseeable future.

With regards to the markets then it would appear that at the moment with the FTSE we have possibly reached one of the those “cusp” moments where it could so easily go either way. The fact that the market has remained so positive throughout the plethora of bad news since Christmas is indeed a positive thing and one that gives most bulls confidence but….(isn’t there always a but?) we have now come bang up against the trend line that has been in force since Christmas and the key level to watch is an end of day close below the 4,100 level. Below that and you would expect another test of the Oct / Nov lows but it has to be stressed how resilient the FTSE has performed as of late and so nothing it would seem is a done deal yet. It would appear that it is likely to take something major to take the FTSE down again (perhaps another partial Banking meltdown) and so performance this week with reporting underway is crucial.

In the US, the next leg down is perhaps already underway and the DOW is only effectively around 300 points away from breaking historic intraday lows but again with new information surrounding the Obama Rescue package out this week, don’t necessarily bet on new lows being established this week as volatility appears to be the order of the day and this could see fairly violent swings either way.

All this adds up to terrific conditions as far as the Market Trader are concerned with plenty of action to be had both up and down and that as Traders are concerned is all we can ask for.

Day Trading in either Futures or Forex is much simpler than you think if you knew where to look and for those interested then sign up to the list on our “2 sure fire strategies” list for firstly to get our two free strategy gifts but also to be put on the waiting list for our Trading With Common Sense E-Book.

This video discusses elements of stock market investing with an emphasis on market timing.

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To play the stock market, be very careful about researching companies before investing, decide whether to invest short-term or long-term, and consult a stock professional for help. Make stock market decisions, and stick with them to be successful.

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