Looking for an historically popular industry that continues to evolve? This article from the 1960s, while techincally outdated in content, still continues some useful observations for today’s investor.
In a broad sense, technology stocks cover a far wider area than the computer and applied scient group as they are generally taken to mean. Important technological changes, for instance, are taking place in the hitherto technically conservative food industry, which could materially affect its operations over the coming decade.
For the sake of clarifying this point further, let’s consider microwaves, one of the great new dynamic areas of growth in electronics. Microwaves are extremely short radio waves ranging from 300 to 300,000 megacycles, with frequencies falling between the television and infrared spectrum.
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It is only fair to emphasize that on the worst day the New York Stock Exchange (NYSE) ever saw, it was still just a market place, an arena where buyer and seller could transact their business. The brokerage community, composed as it was of professionals, might have been expected to cast a sterner, more skeptical eye on the weakening economic conditions so falsely reflected in the market’s soaring prices, but there were few enough, in truth, who smelled danger in the spring air of 1929. Euphoria was endemic. The Exchange was no giddier than its customers.
It is worth recalling briefly some of the events of those turbulent days, for in violent and exaggerated form the crash spelled out the consequences of ignoring the basic principles of sensible investment.
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The most important question about setting your stop loss order is how tightly you should set them – how close to the price where you entered the position or, for a trailing stop loss order, how close to the current price. This is a general decision you’ll make before you figure out exactly what price will be your stop trigger. How tightly to set a stop loss order depends on several factors:
* How much you’re willing to lose on a single trade. Our rule is that you should never lose more than 2 percent of your trading capital on any one trade.
* How risky you believe the trade is. If you think the trade is a sure winner and market conditions are favorable, you may give the position more room to move down before triggering a stop loss order. If you think it’s got only a fair chance of working out, or if the position has serious potential to drop, set a tight stop loss order, or don’t make the trade at all.
To read more, go to the Stop Loss Order website by clicking on this link.
Most markets have predictable trends and repeated patterns. Why? Because most things that happen in the markets are a results of the motivations of the futures traders in those markets.
Many people say that what drives most markets are greed and fear. Greed makes people buy, and fear makes them sell. Greed and fear can actually benefit a futures trader: Greed, or at least the desire to make money, is why we trade in the first place. Fear is a healthy response when we sense danger or disaster closing in, and it motivates us to get out of a bad situation.
But when they get out of control, greed and fear are two of the basic psychological pitfalls that can make a futures trader fail. A Futures trader who consistently makes mistakes usually do so for a couple of reasons.
Excessive Greed and the Futures Trader
The desire to make money is what motivates one to become a successful futures trader in the first place. But the desire to succeed is different from trying to get every possible profit from a trade. This kind of reckless greed makes a futures trader hold on to their positions long after the downside has started to outweigh the upside and risk outweighs potential reward.
To read more, go to the Futures Trader website by clicking on this link.
There are two types of stop limit orders that you will use constantly as a trader, protective stop limit orders and trailing stop limit orders. Generally, positions start out with protective stop limit orders to guard your investment, and move to trailing stop limit orders when the trade becomes profitable. But the best way to familiarize yourself with stop limit orders, and how to set them is to consider them being used in a trade.
Let’s say you take a long position in a stock in anticipation of its earnings announcement. It had traded at around $13 for many weeks, but last week it ran up to $16, as the first sign of its earnings run. It then slowly dropped to $14.40 over the course of two days and stabilized there for a day and a half.
Today it’s started to slowly move up again, and you think it’ll keep going. You decide to buy, and put in a limit buy order at $14.8, which executes at $14.76.
To read more, go to the Stop Limit Orders website by clicking on this link.
Everyone knows the seven deadly sins: pride, envy, gluttony, lust, anger, greed, and sloth. But did you know there are on line stock trading sins as well? Sins that are surprisingly similar to the seven sins, and that can be just as deadly to your on line stock trading career. The on line stock trading sins are: pride, envy, greed, and laziness. I’m sure there is a way to work in the other three if I really try, but let’s stick with these four, since they cause a great deal of difficulty to your on line stock trading career.
But where do these on line stock trading sins come into play? From traders’ reactions to the markets. Most markets have predictable trends and repeated patterns. Why? Because most movements in the markets are a result of the motivations of the people in those markets. Many people say that what drives the markets is greed and fear. Greed makes people buy, and fear makes them sell. Greed and fear can actually benefit on line stock trading: Greed, or at least the desire to make money, is why we trade in the first place. Fear is a healthy response that occurs when we sense danger or disaster closing in, and it motivates us to get out of a bad on line stock trading situation.
To read more, go to the On Line Stock Trading website by clicking on this link.