Archive for Stock Market Education
Only Trust Yourself – In the Stock Market
Posted by: | CommentsDear Members, visitors and stock market newbies.
Having started offering Stock Market educational mentoring workshops, I am starting to talk on a 1 to 1 basis with many people from different corners of the world. It really reminds me of why I established the Liberated Stock Trader site. Your stories really touch me and it motivates me to keep doing what I am doing.
The usual suspects.
People’s stories tend to fall into these areas.
- You are new to the stock market and want to begin really learning how best to invest in the stock market before risking any capital. (best case scenario, but rare)
- You have been investing in the stock market for sometime, but see that you need to take your skills to the next level, so you can start realizing consistent profits. (uncommon, but it happens)
- You have been burnt and have lost a significant portion of your life savings or wealth, but you are starting to realize that YOU need to take control. (most common)
Many people get burnt in the stock market because they trust in others before they trust in themselves. Sure if you have not spent the time to learn how to invest properly, then you have to trust others if you want to be in the game. Therein lies the problem.
I am not going to tell you, learning the Stock Market is easy. It’s not. But spending time improving your skills is a lot easier than watching other people flush your money down the toilet.
Love all, but trust a few. William Shakespeare
So many people to trust.
The are so many people out there that want you to trust them with your money.
- MicroCap Stocks & Penny Stock Newsletters – you already now my opinions on these companies. See this article Penny Stock Newsletters
- TV Gurus – Cramer and his gang ensuring the stock market maintains a circus-like atmosphere
- Stock Market TV shows – adding drama where there is none, so they maintain ratings
- Fund Managers – we already know the fact that on average about 70% of Funds and Fund Managers fail to beat the market see the Stock Market Profits Blueprint
- Self proclaimed stock market genius’ offering us everything from FOREX Robots, to “How I made 2 millions dollars in 1 year” eBooks.
- Bulletin Board Junkies that hang out on Google and Yahoo Finance, commenting on stocks and disrespecting each other when they disagree
But there is one group of people I overlooked, mainly because I never thought about using them. Advisory Brokers.
Advisory Brokers. Ouch
Take a look at this story about what happened to this guy after using an advisory broker (the last post on the page). Just search Google for “lost money” near “advisory broker”. I am sure there may be one or two advisory brokers out there with some idea about what they are doing, but they are few and far between. They also make their money from trading commissions or from a percentage of your portfolio. Do you really think they are looking after your portfolio individually? Do you think they would do the depth of research YOU would do on YOUR stocks if YOU only knew how?
As soon as you trust yourself, you will know how to live. Johann Wolfgang Von Goethe
Liberated Stock Trader is all about YOU.
Why Liberated in the name – Liberated means to Liberate YOU, to make YOU a Liberated Stock Trader. It’s not about me. That is why I have so many FREE Stock Market lessons on this site, actually structured into an easy to follow course. That is why I continually add to over 100 individual lessons. That is why I will also be releasing them all into the PODCAST in video format.
So if you like something, leave a comment, I love to read them. If you have friends who want to learn to trust themselves, then spread the word.
Barry
Like YOU, a Liberated Stock Trader
Stock Market Profits Blueprint – Free
Posted by: | CommentsDear honorable members and visitors,
I wanted to let you know about a new stock market formula called the Stock Market Profits Blueprint.
This Blueprint will provide you the structure & framework to create your own winning stock market system:
- In Video 1: Discover why most professional fund managers & independent investors fail to beat the market?
- In Video 1: Learn why most stock market education fails to make successful investors & how the Stock Market Blueprint will help you
- In Video 2: Understand how to get into the top 20% of successful stock market investors.
- In Video 2: The Stock Market Blueprint will show you how to formulate a great stock market strategy
- The Free eBooks: The Stock Market Profits Blueprint eBook & The Blueprint Cheat Sheet
I know you will like the videos as they give an excellent overview of the entire process I use to beat the stock market.
Seriously I am just giving it away.
If you like the videos I would really appreciate you leaving a Facebook Comment and clicking the Facebook Like button.
I also will be giving away 3 copies of the Liberated Stock Trader PRO Training to those 3 people who leave the best comments on the site.
So please check it out and let me know what you think.
The Stock Market Profits Blueprint
Name: Barry D. Moore
Bio: Certified Technical Analyst (Stock Market Technical Analyst), Full Member of Society of Technical Analysts (STA) Level II CFTe (Certified Financial Technician), independent trader, author, trainer & blogger.
Stock Market Analysis – September 20 – 2010
Posted by: | CommentsDear Liberated Stock Traders, I thought it about time to perform another stock market analysis as the US Markets are at a key pivot point. The question is…
Will the market continue the current sideways consolidation, or move upwards to start a new up-trend?
To analyze this I am using a 2 year chart of the S&P500.
Chart Courtesy of Worden Brothers inc.
Stock Market Analysis & Observations
- The US markets have not recovered to the highs of 2010
- The 10 month strong medium term uptrend in 2009 was broken in April 2010
- The SP-500, NASDAQ Composite and Dow Jones Industrials have all moved into a situation where the 200 day moving average is now forming a significant level of resistance.
- Breaking the 200 day moving average significantly will signal a new uptrend which should challenge the 2010 highs.
- The S&P 500 is in a sideways consolidation
- The fear of a double dip recession is receding. However significant stock market growth is hard to see at the moment given the shaky underlying US fundamentals specifically jobs, housing and demand.
- There are plenty of healthy stocks out there with excellent balance sheets, growth and futures.
Which direction for the US Stock Markets?
The trend is in effect until the market shows us otherwise.
- The Long Term Trend is still down. We are way off our all time highs of 2007
- The Medium Term Trend is sideways. We are currently in a medium term consolidation having made no significant move upwards for the last 6 months
- The short term trend is UP. The last 3 weeks has been good, but now the trend has 2 options.
- Continue the sideways move and retrace back to the support line at circa 1043 over the next 3-5 weeks
- Break through the resistance line, and leave the 200 day moving average behind, signaling a new short to medium term uptrend.
Which way will it go, no one knows.
What is important to remember is that you do not always need to be in the market. You can wait on the sideline for the opportunity to present its self. If the market moves down a simple shorting method to continue to build on your gains could be to use a short ETF such as the RSW Rydex Inverse 2X S&P500 EFT*. This EFT attempts to seek gains of a multiple of 2 times the opposite move of the S&P500. So if the S&P500 moves down 5% in a week, this ETF will ideally see a 10% gain. It is a very handy low cost tool to see profits on the downside as the markets retreat.
*This is not a recommendation to go short on the market or to use this specific ETF it is an example to get you thinking of these options.
10 Steps to build a great stock market trading system
Posted by: | Comments10 Building Blocks to a Professional Stock Market System
After you have undergone stock market education in fundamental and technical analysis you will be ready to start to create your Stock Market Trading System. Of course any good educational service in the equities/security space should help you to create this system yourself.
Developing a stock trading system is about combining logic, knowledge, experience, art and science. Your system will need to perform well (higher than 6% on average per year) both historically and be expected to perform well in the future at least for the time-frame in which you expect to use it. The “Nirvana” of a trading system is that it would need to perform well and need little “user interpretation” for it to function. This would mean using “trading robots” or a mechanical method. I do not recommend a trading robot that would place your trades for you as this will essentially take any on the fly decision making out of your hands. However you should use a mechanical method (computer) to help you test your systems and create the buy and sell signals for you.
In this context your systems would have the following requirements.
- A good stock trading system will need to be back-tested to prove that it worked in the past. This would give us an element of proof that the logic upon which we base our assumptions are functional.
- A good system allows us to trade with less emotion providing a market advantage. Emotion is known to be the culprit of many trading errors and losses.
- Automation of the fundamental screening for the stocks will save us a lot of time.
- Automation of the Technical Indicators Scan will also narrow the list further to enable us to focus only on our preferred candidates.
Step 1 – Get educated
Take a high quality stock market training course. This site has a FREE 10 module Stock Market Training Course, covering fundamental and technical analysis. For help on choosing a quality stock market education read this Stock Market Training Review.
Step 2 – Choose your favorite time-frame for trading / investing
If you have the time to fully immerse yourself in the Stock Market you might want to trade shorter time-frames (days to weeks). If you have a full-time job and less free time available you may want to trade longer time-frames and only monitor your stocks on a weekly basis.
Step 3 – Choose your favorite Markets
As an active trader you should choose your Stock Markets wisely. If you want to be active (checking your stocks intra-day or on a daily basis) then is may be wise to trade a stock market that is not in your time-zone. For example, Mr. Smith has a busy day job and only has time free in the evening. Mr. Smith is based in India. Normally he would want to trade the Indian Stock Market. But actually the European Markets might be a good choice as they open close to the end of his working day. Therefore he can dedicate and focus his spare time on the stock market in question.
If you are a less active trader, then it might be wise to trade the stock market in your own time-zone as you may have the advantage of being able to spot successful companies in your country and investigate them further using your “Local Knowledge”.
Step 4 – Understand what your profit target is
What is your target? Active traders should expect higher returns/profits as they will be spending more time trading the market. Less active traders might expect a slightly lower return as the trade off for not being as focused. But what is a good target. Do not believe the scam artists of “Penny Stocks Newsletters” and peddlers of “Microcap Stocks” ; in the real world 100% or 1000% profits are not realistic, in fact it is irresponsible that they would promote their services in this way.
Warren Buffet has averaged just over 24% annual return over his entire career. That is just 2% per month. Realistically you should choose this as a viable upper target.
Step 5 – Select you favorite Fundamental Screens
Capitalization, Earnings Per Share, Earnings Acceleration, 5 year revenue % increase, Price Earnings Ratio. If these terms are simply vague notions to your, please go back to step 1.
Step 6 – Select your preferred Stock Market Indicators using technical analysis
What Charts should you use?
- Bars
- Candlesticks
- Point and Figure Charting
- Ichimoku Cloud Charts
- Market Profile
What indicators should you use?
- Price Indicators – the study of price based chart indicators or Oscillators know as Stochastics,”Relative Strength” (RSI), “Rate of Change” (ROC), “Moving Averages” (MA), “Moving Average Convergence Divergence” (MACD), Parabolic SAR, ADX Average Direction Movement Index.
- Study of Volume – understanding how the level of volume has a relationship with price – and how price has a relationship with volume.
- Study of Price Volume Indicators – “On Balance Volume” (OBV), Chaikins Money Flow, “Time Segmented Volume” (TSV), MoneyStream.
Step 7 – Turn your previous choices into specific rules
Quantify your choices of the fundamental screens and technical analysis screens.
At what point would you by?
- When the 10 day Moving Average crosses the 20 day moving average and holds above price for 2 days?
- When RSI holds above the RSI 5 days Moving Average for 2 days?
At what point do you sell?
- When MACD turns negative?
- When you see a negative divergence in Money Flow?
Step 8 – Run your rules and back test
Using back-testing software you can start to implement your rules and see if they actually work historically. This is a fascinating and immersing topic. One excellent back-testing software I use is called stock finder.
If the systems produces the targets you expect, move to step 9.
Step 9 – Let your rules run
Let your rules run for a week or two to see if it continues to perform.
Step 10 – Go or No Go
If successful – Implement the system – If unsuccessful – tweak the system and start again from step 5.
If your rule are working then implement your system, start to trade it. If not you may need to refine the system. The best systems have been refined over and over again to remove logical errors and improve the percentage of winning trades and the % of the profit per trade.
The results of a great stock trading system
Building and running a trading system takes time, a logical mind and patience. Many successful traders have started to make losses because through boredom they have deviated from their winning system or strategy. Try not to make the same mistake.
The results will be profits and plenty of them.
Good luck and may the trade be with you.
FREE GIFT – Premium Stock Market Training – Chapter 1
Posted by: | CommentsYour Free Gift Chapter 1 Liberated Stock Trader PRO Stock Market Education.
As part of the product launch for the Liberated Stock Trader PRO Stock Market Training Course, I am giving away Chapter 1 Part 1.
This chapter gives an introduction to the stock market and enables to to understand the critical learning experience presented in the rest of the course.
Chapter1. Essential Knowledge
- Bears, Bulls, Short, Long
- The war between the Fundamentalists and the
- Technicians
- Technical Analysis and Fundamental Analysis
- Fundamental Analysis
- Technical Analysis
- Economic Theory
- The best approach
- Dow Theory
- Summary
This video is fully backed up with the Book “The Liberated Stock Trader” which greatly enhances the learning experience.
The Video is 45 minutes long, so sit back and enjoy. The video is high resolution so click in the bottom right to expand it to full screen.
Did you enjoy the video?
Buy the full package NOW, including
- 16 hours of premium education
- The Liberated Stock Trader Book
- Liberated Stock Trader PRO Mobile for the iPhone / iPod Touch
- Your future in your hands
The single way to make money in the Stock Market.
Posted by: | CommentsI received a question from a new member today after he read the post about Volume and Supply & Demand.
I was so touched with the question I decided to write a post to try and answer his question.
So firstly I would like to welcome Deepak to the club. Here is his question.
“sir,
i have read about volume and other tools , which u mentioned above. but fact is that , in share market i can not believe any single tool. bcoz i learnt this course last year . since then i have been trying and hard working to learn technical course , i checked many tools of it but not useful till now. so sir my request to u that u may provide any one techniq or tools by which i can earn some mony . bcoz i lost much money in share market and so on. i m waiting ur rply sir” Deepak.
So what is the single way to make money in the stock market?
Dear Deepak,
I completely understand where you are coming from. I too have lost a lot of money in the stock market, back in 2000 when I was younger, fresher and more eager to gamble. I also attended a Stock Market Training Seminar in 2000, it cost me nearly $3000 (actually British Pounds as I am English), and I really thought I was a hot shot. In the seminar it was only me and 2000 other people. You can imagine how much the famous trader made out of teaching his skills.
Anyway, I took notes, revised and started to trade, heavily, every day multiple trades. I saw big winners, but I also many many losers. The only thing that stopped me completely wiping out my remaining portfolio was my ability to say “enough is enough” and pull out with the remaining cash I had.
I then took a trajectory of deep knowledge acquisition. I studied and experimented more intensely with the stock market than with anything else I have ever done, including my degree in business and all my schooling rolled up into one. After 10 years, hundreds of books, heaven knows how many trades, I finally get it. To prove it I took the IFTA Technical Analyst exam. This required some heavy duty reading and deep contemplation before it was all absorbed. But I passed first time.
I now trade quite well, I like to think. I can assess the direction of the overall market and really understand what makes the market move like it does.
You asked me for a single strategy so you can start making money. You asked me for a single tool to use to enable you to recoup your losses.
The single strategy to make money on the stock market.
No matter what the con-men, penny stock newsletter writers or gurus tell you, I can really tell you this. There is only one way to make money in the “share market / stock market”. Education!
I believe that the future of the individual is in their hands not mine. This is why I have written over a number of years the Liberated Stock Trader Academy FREE training course. It is a great starting point to learn about what matters. Not just Technical Analysis, but Fundamental Analysis also.
But there are so many things that they never teach you in a Stock Trading seminar. They like to focus on chart patterns and indicators, like they are the holy grail. But if you really want to make money in the stock market and understand why and how the market moves the way it does, you need to understand the Fundamentals. By that I mean:
- the business climate
- market cycles
- economics
- monetary and fiscal policy
- the role of the government and central banks in the fate of the stock market
Combining a solid knowledge of the fundamentals of business economics with technical analysis is the key. Only then can you understand if the business climate is worsening what affect will it have on the stock market.
The single tool to make money in the stock market.
As you are probably aware, I am also a fan of Technical Analysis, the use of charts. But I am not a purist. I really understand that the greatest appreciation of a chart only comes in combination with a solid understanding of Fundamentals also.
The single tool is non-existent.
However, there is a combination of tools that works. Once you have a grasp of why the market moves in a certain direction (Economics and Governments), and an understanding of the way it moves (Cycles & Waves), then you can interpret charts (Technical Analysis) in a whole new way. Understanding “Supply and Demand” within a given economic climate is critical.
Then we can combine Price, Trends, Volume and the Price Volume relationship to give us something akin to a true visualization of what may happen. This will put you in the top 5% of stock market investors.
The single tool is the combination of Fundamentals and Technical Analysis.
This probably sounds like a monstrous amount of information.
This is why I created the Liberated Stock Trader PRO Training. It is absolutely unique. With 16 hours of intensive video, and a full book to back up the learning experience. You will have an absolutely solid grasp of everything I have discussed here.
What is also worth noting is that it is selling at less that 1/10th of the cost of a weekend seminar, and at less than a single losing trade. If you avoid a single losing trading in the market because of my training, you have made a profit.
Why is it so inexpensive? Because I am using the power of the internet to deliver it. I do not need to hire seminar venues, print DVD’s, publish a book on paper, or fly to exotic venues. You simply get a intensive training course direct on your PC, Mac or iPhone.
After this training course you will understand. Even if you need to repeat it many times. You can. I know how it is, I have re-read so many books and experimented so many times before it all sank in. What I can guarantee is that I only provide you the most important knowledge in my training, so in 16 hours your will have an excellent understanding of everything you will need to know.
So my advice is education. If not with me with someone else. But trust me, you will not get better value training than at Liberated Stock Trader.
Deepak, I am completely with you. Your question reminded me of why I have dedicated years of my life to this cause.
My mission states, “your future in your hands” and “take control of your destiny” for a reason.
I am on your side. Do not believe the big Wall Street propaganda merchants, do not believe the news, do not follow gurus or penny stocks newsletters. Believe in yourself. Take a time out, learn, and then conquer the market.
Take the Liberated Stock Trader PRO Course you will not be disappointed.
Thanks you for your question, it reminded me of why I spend so many hours doing what I do.
Barry
Name: Barry D. Moore
Bio: Certified Technical Analyst (Stock Market Technical Analyst), Full Member of Society of Technical Analysts (STA) Level II CFTe (Certified Financial Technician), independent trader, author, trainer & blogger.
