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By www.ProfitableTradingTips.com Make Money by Trading Stocks

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http://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks Make Money by Trading Stocks All too many individuals jump into trading stocks, lose money and decide that it really was impossible to make money by trading stocks. They blame the big trading houses, the Federal Reserve, Tea Party Republicans or President Obama. They forget or are unaware of the old saying that, we have met the enemy and he is us! But, considering how many folks lose their trading capital and just walk away, can you really make money by trading stocks? You can if you pay attention and have a solid plan. Successful stock traders base their trades on a combination of fundamental and technical analysis. Fundamental analysis tells us what the eventual price of a stock will be. Technical analysis tells us how that stock is going to perform along the way to its eventual price and is commonly the way to make money by trading stocks. Anticipating the Future You can make money by trading stocks if you can see the future. But how do you see the future? In trading stocks this is called technical analysis. The basis of technical analysis is that history tends to repeat itself. For example, during the height of Babe Ruth’s baseball career one could safely predict that the Great Bambino would hit thirty or more home runs in a season. During the height of the Cold War one could safely predict that there would be at least one confrontation between the USA and the USSR during any given year. Well, it turns out that you can make money by trading stocks using the same sort of logic but simply different data. Technical analysis is based on price patterns. The sum total of information and trading sentiment goes into driving prices up and down. There are a variety of distinctive price patterns that essentially predict the future. This was recognized both by rice traders in Japan and tulip bulb traders in Holland hundreds of years ago. The Japanese system was formalized and is used today. It is called Japanese Candlestick trading as it is a visual system of signals that are superimposed on a trading chart. Make Money by Trading Stocks and Paying Attention If all you do is analyze fundamentals you can buy a stock or sell short and simply wait for the market to come to you. However, as you can see from most stock charts that the price of the a stock moves up and down a lot before it finds its eventual price...

TRANSCRIPT

Page 1: Make Money by Trading Stocks

Bywww.ProfitableTradingTips.com

Make Money byTrading Stocks

Page 2: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

All too many individuals jump into trading stocks, lose money and decide that it really was impossible to make money by trading stocks.

Page 3: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

They blame the big trading houses, the Federal Reserve, Tea Party Republicans or President Obama.

Page 4: Make Money by Trading Stocks

Before We Continue…Click the links below to get your

FREE training materials.

Free Weekly Investing WebinarsDon’t miss these free training events!

http://www.profitableinvestingtips.com/free-webinar

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http://www.forexconspiracyreport.com

Page 5: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

They forget or are unaware of the old saying that, we have met the enemy and he is us!

Page 6: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

But, considering how many folks lose their trading capital and just walk away, can you really make money by trading stocks?

Page 7: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

You can if you pay attention and have a solid plan. Successful stock traders base their trades on a combination of fundamental and technical analysis.

Page 8: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

. Fundamental analysis tells us what the eventual price of a stock will be.

Page 9: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

Technical analysis tells us how that stock is going to perform along the way to its eventual price and is commonly the way to make money by trading stocks.

Page 10: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

Anticipating the Future

Page 11: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

You can make money by trading stocks if you can see the future.

Page 12: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

But how do you see the future?

Page 14: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

The basis of technical analysis is that history tends to repeat itself.

Page 15: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

For example, during the height of Babe Ruth’s baseball career one could safely predict that the Great Bambino would hit thirty or more home runs in a season.

Page 16: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

During the height of the Cold War one could safely predict that there would be at least one confrontation between the USA and the USSR during any given year.

Page 17: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

Well, it turns out that you can make money by trading stocks using the same sort of logic but simply different data.

Page 18: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

Technical analysis is based on price patterns.

Page 19: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

The sum total of information and trading sentiment goes into driving prices up and down.

Page 20: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

There are a variety of distinctive price patterns that essentially predict the future.

Page 21: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

This was recognized both by rice traders in Japan and tulip bulb traders in Holland hundreds of years ago.

Page 22: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

The Japanese system was formalized and is used today.

Page 23: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

It is called Japanese Candlestick trading as it is a visual system of signals that are superimposed on a trading chart.

Page 24: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

Make Money by Trading Stocks and Paying Attention

Page 25: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

If all you do is analyze fundamentals you can buy a stock or sell short and simply wait for the market to come to you.

Page 26: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

However, as you can see from any stock chart, the price of the stock moves up and down a lot before it finds its eventual price.

Page 27: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

It is certainly possible to make a few dollars using fundamental analysis.

Page 28: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

But it is also possible to make money trading stocks by reading price patterns.

Page 29: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

By doing so, a technical trader can make profits several times while the fundamental trader is waiting for the market to make its final move.

Page 30: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

The point of technical trading is that you need to be there at your trade station, pay attention, always set your buy and sell stops and always get out of your trades before the end of the trading day.

Page 31: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

This is the basis of day trading. There are numerous profitable day trading strategies such as range trading, scalping, and trend trading.

Page 32: Make Money by Trading Stocks

Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks

The point is to develop a strategy, edit your results and modify how you do things along the way in order to optimize profits.