Security 101

tickerfinder · Aug 15th, 2009, 21:17

I made this post to share what I learn from other experts and market. You may agree or not my points since every trader has different style and tolerance.

Basiclly my stlyle is using low risk strategies. I believe these will benefit for all traders, especially for new traders.

I would like discuss any points of trading and I am learing too.

tickerfinder · Aug 15th, 2009, 21:30

I was really scared when I placed my first trade.

At that time, I did not know too much infomation about the market. The only thing I believe it is a good company and down 20% already. After a big down day, I thought it was a good deal and bought 300 shares. 1 months after, it down 10% more. I did not know how to do it expect pray. I was lucky-3 months after, I exit the trade and made 20% profit.

After my first trade, I began to study the market and trading. I knew it was TSX 60 listed stocks and it was a down market that time.

Lesson to learn: Do not buy a stock since it looks cheaper - It may go to zero. Do not against the trend.

tickerfinder · Aug 15th, 2009, 21:50

As a new trader, since I mader profit by first trade, I started to searched all kinds information about trading.

I visited lots chinese stocks forum, there are lots funny stories and so called master.
I paid 500 us dollars to be a member of a US chinese run company to get their weekly post and I was cut half by a single trade while I put 10k capital. I did not know to check the earing realease.
I downloaded tons of stocks books to learn indicator,candlestick,pattern,etc.

Finally, I found I lost. I do know what I can trust and I am not confident to place my next trade.

Lesson to learn: As a new trader, do not jump the gun right way. You really need to do PAPER TRADE, PAPER TRADE until you feel comfortable. There was allways opportunities in the market.

sludgegine · Aug 15th, 2009, 21:53

Sofa and listening to the LZ....

tickerfinder · Aug 15th, 2009, 22:35

Somebody may never trade in their life.

But, when you put money to RRSP account, you really should know the market, mutural fund, ETF, stocks, etc. You are responsible for the money, which you work hard to make it. And you are trading.

Think about this: somebody's RRSP accont shrink to half during this global downturn or totally swipe out and they have to work 5 more years. What about they do something to protect their position before it came?

Trade or not, you really should know the market. It is part of life.

tickerfinder · Aug 15th, 2009, 22:47

There are too much infomation about trading, to stay simple, you should understand

1. Janpanese Candlestick Chart:
http://www.zaoxue.com/down/tech-169079.htm

2. Technical analysis:
www.stockcharts.com or
www.bigcharts.com

3. For fundermental analysis, you can visit supersite:
http://finance.yahoo.com/
www.morningstar.com

Call_Long · Aug 15th, 2009, 22:52

板凳...

I Like story, continue pls...

tickerfinder · Aug 15th, 2009, 23:01

Topic: WHAT KIND OF TRADER ARE YOU?

This should be the first question before you play a trade.

Investor? (own a stock and hlod couple years.) It is not what I am talking about here.

Position trader or long term trader? (hold a stock for couple months.) You may consider this style if you are a full time worker and do not have too much time to watch market closely.

Intermediate Trader? ( hold a stock for couple weeks) If you are same as position trader.

Swing Trader - hold a stock for couple days

Day Trader or Active Trader - entry and exit the trade in same day.

You really need define youself first since different trader use different strategies.

tickerfinder · Aug 15th, 2009, 23:22

I guess nobody talking about ATR (average true range) in this forum. But it is truely import and I will give more details.

Definition: It refelect the volatility of stock
http://stockcharts.com/school/doku.p...e_true_range_a

How to find it?
Visit stockcharts.com, go to INDICATORS, pick AVERAGE TRUE RANGE. for PARAMETERS, set 14 days.

Why it is so important?
It define what stock you should trade.
Befor you make any trade, do a little bit math first-check the ratio of ATR Vs Stock Price.
1. If you are postion or intermediate trader, you are looking for 1-2% ratio. You are looking a slow,steady mover and not let the volatility drive you crazy.
2. If you are swing trader, you are looking for 3-5% ratio. You hlod a stock for couple days and grab a piece (may 5%) and exit the trade.
3. If you are day trader, you like this ratio biger (10-15%) to maximam your profit. For instance, if a stock have a 1 buck ATR and gap up 0.90 already, you do not have too much room to make profit.
4. You may set STOP LOSS by ATR mathod. I will talk this when I make topic: Stop Loss.

That is why if you are trade 2X or 3X ETF, you'd better swing trade.

tickerfinder · Aug 15th, 2009, 23:38

Topic: Canadian or US Market

If you are understand certain market, you'd better to focus on it.

Canadian market is not a big market. For instance, talking about high tech, you are really talking about RIMM and, no more Notel. Canadian market really is driven by commodity,bank sectors. You can find TSX 60 by this link:

http://www.investcom.com/cgi-bin/nam...s&300=&T60=yes
Those are good companies to trade.

US stock market is a broad market and you have whole bunch information for it. You have lots choices.

From this post, I am talking US Market only.

tickerfinder · Aug 15th, 2009, 23:40

Any questions so far?

I think it is good enough for this week.

老愚 · Aug 16th, 2009, 00:56

引用:

作者: tickerfinder

I guess nobody talking about ATR (average true range) in this forum. But it is truely import and I will give more details.

Definition: It refelect ...

多谢tickerfinder，还是头一次听说这个概念。看看我的理解对不对，
ATR也可叫做股价平均波动值，
如果很低，说明股价在盘整
如果很高，说明股价在大幅波动，可能是拉升也可能是下跌。再结合日K线图，判断顶部和底部的出现。
各个股票之间的ATR因为股价的不同，所以ATR没有可比性。
ATR只能参考本身股票的历史数据才有可比性。

howcomescanada · Aug 16th, 2009, 01:57

听ing

tiezi · Aug 16th, 2009, 02:29

顶!

tickerfinder · Aug 16th, 2009, 09:40

引用:

作者: 老愚

多谢tickerfinder，还是头一次听说这个概念。看看我的理解对不对，
ATR也可叫做股价平均波动值，

如果很低，说明股价在盘整- I do not think so.

如果很高，说明股价在大幅波动，可能是拉升也可能是下跌。再结合日K线图，判断顶部和底部的出现。- I do not know how I can do this. I do not predit the price, I follow the trend.

各个股票之间的ATR因为股价的不同，所以ATR没有可比性。- Corret
A...

Thx for your points.

I use ATR and RATIO of ATR/STOCK PRICE to define what stock I like to trade and what trading style (long term, swing or day trade) I play with.

tickerfinder · Aug 16th, 2009, 09:51

Volume is another big concern for trading.

1. You are looking for >400k daily volume if you are trading long.

2. You are looking for >600K daily volume if you are trading short.

3. You are looking for >1M daily volume if you are trading options.

4. Looking for consistant daily volume. Stay away from one day wander (huge volume and price surge in one day).

5. Heavy daily volume let you easy to jump in and out and give small split between bid and ask price.

tickerfinder · Aug 16th, 2009, 10:06

Money management is most important than trading.

You really treat trade as business, seriously, not gambling.

You can search related info, here is one link:

http://www.simple-stock-trading.com/...anagement.html

tickerfinder · Aug 16th, 2009, 10:13

Always have backup plan.

1. If one computer crash, you can use another one to make your trade.

2. If power off, your UPS worked for you.

3. If Internet down, you have broker's phone line to call in.

4. If internet/home phone not work, you have smart phone (IPHONE?) to help you make trade.

5. If all above failed, you have last defence - STOP LOSS.

tickerfinder · Aug 16th, 2009, 10:24

Every year, in Jan, Apr, July, Oct, company start to release quarterly report. In middle of these month, market will be very volital. Stock may gap up or down huge after earning release.

As a new trader, you should avoid these system risk. Check
http://www.earnings.com/highlight.asp?client=cb
and close your position 2 weeks before earning release day.

For advanced trader, you may check what performance in previous earning and play options strategy.

DO NOT GAMBLE.

tickerfinder · Aug 16th, 2009, 10:36

Topic: How to find stocks?

1. From this forum: check some master (?), what stock they are trading.

2. Go some supersite, like yahoo finance to find most active/big winner/loser.

3. Find which sectors is currently hot and performance:
http://news.morningstar.com/stockRet...?t1=1250432878

Do not trust anybody, do your homework and make decission.

Aug 15th, 2009, 21:17	#1
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3	Security 101 I made this post to share what I learn from other experts and market. You may agree or not my points since every trader has different style and tolerance. Basiclly my stlyle is using low risk strategies. I believe these will benefit for all traders, especially for new traders. I would like discuss any points of trading and I am learing too.
	No BUY/SELL/HOLD recommendation

Aug 15th, 2009, 21:30	只看该作者 #2
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: First Lesson I was really scared when I placed my first trade. At that time, I did not know too much infomation about the market. The only thing I believe it is a good company and down 20% already. After a big down day, I thought it was a good deal and bought 300 shares. 1 months after, it down 10% more. I did not know how to do it expect pray. I was lucky-3 months after, I exit the trade and made 20% profit. After my first trade, I began to study the market and trading. I knew it was TSX 60 listed stocks and it was a down market that time. Lesson to learn: Do not buy a stock since it looks cheaper - It may go to zero. Do not against the trend.

Aug 15th, 2009, 21:50	只看该作者 #3
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: New Trader As a new trader, since I mader profit by first trade, I started to searched all kinds information about trading. I visited lots chinese stocks forum, there are lots funny stories and so called master. I paid 500 us dollars to be a member of a US chinese run company to get their weekly post and I was cut half by a single trade while I put 10k capital. I did not know to check the earing realease. I downloaded tons of stocks books to learn indicator,candlestick,pattern,etc. Finally, I found I lost. I do know what I can trust and I am not confident to place my next trade. Lesson to learn: As a new trader, do not jump the gun right way. You really need to do PAPER TRADE, PAPER TRADE until you feel comfortable. There was allways opportunities in the market.

Aug 15th, 2009, 21:53	只看该作者 #4
sludgegine 枫语者注册日期: Mar 2008 住址: 家帖子: 6,963 积分:49 精华:12 声望: 25429135	Sofa and listening to the LZ....
	生活，就是与家人在一起，平静地过日子。以远离政治，节制欲望，度事宽容为生活法则。博弈是资本游戏的灵魂！博弈状态的把握结合技术分析可无往不胜。

Aug 15th, 2009, 22:35	只看该作者 #5
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: Why Trading? Somebody may never trade in their life. But, when you put money to RRSP account, you really should know the market, mutural fund, ETF, stocks, etc. You are responsible for the money, which you work hard to make it. And you are trading. Think about this: somebody's RRSP accont shrink to half during this global downturn or totally swipe out and they have to work 5 more years. What about they do something to protect their position before it came? Trade or not, you really should know the market. It is part of life.

Aug 15th, 2009, 22:47	只看该作者 #6
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: what to know? There are too much infomation about trading, to stay simple, you should understand 1. Janpanese Candlestick Chart: http://www.zaoxue.com/down/tech-169079.htm 2. Technical analysis: www.stockcharts.com or www.bigcharts.com 3. For fundermental analysis, you can visit supersite: http://finance.yahoo.com/ www.morningstar.com

Aug 15th, 2009, 22:52	只看该作者 #7
Call_Long Member 注册日期: May 2008 帖子: 74 积分:10 精华:2 声望: 2	板凳... I Like story, continue pls...
	雷锋名言录(累疯)----人的生命是有限的，可是，为人民赚钱是无限的，我要把有限的生命，投入到无限的为人民赚钱之中去

Aug 15th, 2009, 23:01	只看该作者 #8
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: WHAT KIND OF TRADER ARE YOU? This should be the first question before you play a trade. Investor? (own a stock and hlod couple years.) It is not what I am talking about here. Position trader or long term trader? (hold a stock for couple months.) You may consider this style if you are a full time worker and do not have too much time to watch market closely. Intermediate Trader? ( hold a stock for couple weeks) If you are same as position trader. Swing Trader - hold a stock for couple days Day Trader or Active Trader - entry and exit the trade in same day. You really need define youself first since different trader use different strategies.

Aug 15th, 2009, 23:22	只看该作者 #9
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: ATR I guess nobody talking about ATR (average true range) in this forum. But it is truely import and I will give more details. Definition: It refelect the volatility of stock http://stockcharts.com/school/doku.p...e_true_range_a How to find it? Visit stockcharts.com, go to INDICATORS, pick AVERAGE TRUE RANGE. for PARAMETERS, set 14 days. Why it is so important? It define what stock you should trade. Befor you make any trade, do a little bit math first-check the ratio of ATR Vs Stock Price. 1. If you are postion or intermediate trader, you are looking for 1-2% ratio. You are looking a slow,steady mover and not let the volatility drive you crazy. 2. If you are swing trader, you are looking for 3-5% ratio. You hlod a stock for couple days and grab a piece (may 5%) and exit the trade. 3. If you are day trader, you like this ratio biger (10-15%) to maximam your profit. For instance, if a stock have a 1 buck ATR and gap up 0.90 already, you do not have too much room to make profit. 4. You may set STOP LOSS by ATR mathod. I will talk this when I make topic: Stop Loss. That is why if you are trade 2X or 3X ETF, you'd better swing trade.

Aug 15th, 2009, 23:38	只看该作者 #10
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: Canadian or US Market If you are understand certain market, you'd better to focus on it. Canadian market is not a big market. For instance, talking about high tech, you are really talking about RIMM and, no more Notel. Canadian market really is driven by commodity,bank sectors. You can find TSX 60 by this link: http://www.investcom.com/cgi-bin/nam...s&300=&T60=yes Those are good companies to trade. US stock market is a broad market and you have whole bunch information for it. You have lots choices. From this post, I am talking US Market only.

Aug 15th, 2009, 23:40	只看该作者 #11
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Any questions so far? I think it is good enough for this week.

Aug 16th, 2009, 01:57	只看该作者 #13
howcomescanada 美股入门Call/Put初学者注册日期: May 2008 帖子: 470 声望: 1426732	听ing

Aug 16th, 2009, 02:29	只看该作者 #14
tiezi Senior Member 注册日期: Jul 2004 帖子: 12,315 积分:72 精华:22 声望: 3601705	顶!
	--------------------- ...

Aug 16th, 2009, 09:51	只看该作者 #16
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: Volume Volume is another big concern for trading. 1. You are looking for >400k daily volume if you are trading long. 2. You are looking for >600K daily volume if you are trading short. 3. You are looking for >1M daily volume if you are trading options. 4. Looking for consistant daily volume. Stay away from one day wander (huge volume and price surge in one day). 5. Heavy daily volume let you easy to jump in and out and give small split between bid and ask price.

Aug 16th, 2009, 10:06	只看该作者 #17
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: Money Management Money management is most important than trading. You really treat trade as business, seriously, not gambling. You can search related info, here is one link: http://www.simple-stock-trading.com/...anagement.html

Aug 16th, 2009, 10:13	只看该作者 #18
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: Plan B Always have backup plan. 1. If one computer crash, you can use another one to make your trade. 2. If power off, your UPS worked for you. 3. If Internet down, you have broker's phone line to call in. 4. If internet/home phone not work, you have smart phone (IPHONE?) to help you make trade. 5. If all above failed, you have last defence - STOP LOSS.

Aug 16th, 2009, 10:24	只看该作者 #19
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: Power Week Every year, in Jan, Apr, July, Oct, company start to release quarterly report. In middle of these month, market will be very volital. Stock may gap up or down huge after earning release. As a new trader, you should avoid these system risk. Check http://www.earnings.com/highlight.asp?client=cb and close your position 2 weeks before earning release day. For advanced trader, you may check what performance in previous earning and play options strategy. DO NOT GAMBLE.

Aug 16th, 2009, 10:36	只看该作者 #20
tickerfinder Senior Member 注册日期: Jul 2009 帖子: 1,730 积分:14 精华:3 声望: 1692809	Topic: How to find stocks? 1. From this forum: check some master (?), what stock they are trading. 2. Go some supersite, like yahoo finance to find most active/big winner/loser. 3. Find which sectors is currently hot and performance: http://news.morningstar.com/stockRet...?t1=1250432878 Do not trust anybody, do your homework and make decission.