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[17 Feb 2012 | 21 Comments | 4,050 views]
Trading for a Living

How to make money trading stocks/Commodities
(a) Identify the reason for the trade
(b) A Stop Loss
(c) A profit target or trailing stop mechanism
(d) The point at which you accept that the trade is not working even if the stop did not hit.
(e) Number of shares / contracts that you will hold. Keep in mind that your loss on a single trade should not be more than x% of your capital (you decide the x%)
(f) maintain a trading journal in which you write every evening, without fail.
As a sportsman(So too as a …

Must Read Articles for traders »

[13 Jan 2012 | 5 Comments | 802 views]
Are you a Trader or Gambler ?

What is gambling?
Some dictionary definitions:

the act of playing for stakes in the hope of winning (including the payment of a price for a chance to win a prize)
a: to play a game for money or property b: to bet on an uncertain outcome
to stake something on a contingency : take a chance

 
1) The Gambler Trades Through Earnings Reports: If you are a trader (as opposed to an investor) and decide to hold a stock/option position through earnings you are gambling. Due to the very nature of earnings reports your position …