Weekly Stock Market Index Review
October 9th, 2010 | 
Author: With earnings season approaching, what should you be doing to take care of your porfolio and keep it safe?
Posted in 
Selecting Good Stock Picks
Looking to make good stock picks? How do you find good selections? What makes a stock pick good? A good stock selection is one that performs as predicted and makes money for those who have traded it. There are thousands and thousands of “experts” on the Internet who will offer advice and give out their latest “can’t-miss” stock picks. Some of these picks are free while others can only be obtained by paying for a subscription. These stock gurus will often lure people to purchase subscriptions with tales of past winners that made over 100 %, 500 % or even 1000%. Are these gains even possible? Are most of their picks good, or profitable stock picks?
Selecting stocks that will eventually become profitable stock picks takes extensive research, careful analysis, a good understanding of the market, and a little bit of luck. Even if the proper due diligence is done, a stock picking expert needs to have a feel for the market. Picking the right stocks is both a science and an art. A good web site that follows different investors is Stocktipr.com. This is an online community that allows investors to share stock picks and for those new to the game to learn more about the art and science of choosing the right stocks. 
If you decide to follow the advice of an expert, it is advisable to have a look at their track record. Not all picks will turn out to be good picks. An honest stock expert will list all their picks and not just the winners. If you are looking at a track record and it contains 90 percent winning stock picks, it has most likely been edited to eliminate most of the losers. No one picks good stocks 90 percent of the time! No one. A complete and honest track record will list both winners and losers, and will also show how well the stock guru manages those losers. If losses are controlled, good money can be made with a 60 % winning percentage.
Why worry about picking stocks? The simple answer: wealth. Playing the stock market is one of the best ways to accumulate wealth. Picking winning stock picks is profitable. Whether you buy and hold, attempt to time the market, or buy penny stocks looking for that one huge winner, money can be made in the stock market with profitable stock picks. Some people choose to utilize the picks and advice of a stock expert. Others choose to develop their own system, do their own due diligence, and select their own stocks. No matter which method you choose to make good stock picks, it is vital to do your own research, manage your losses, and prepare yourself to be successful.
Nicolas
www.Stocktipr.com co-founder
Is the Stock Market Melting Up?
The market seems like it wants to come down, but continues to inch higher. I am looking for a sharp move down to retest some support before moving higher. October may provide us that move before ending the year on some strength
Look to the Upside But Watch the Downside
We had a very surprising move on Friday to push the market higher. Volume does not indicate that it is a quality move and there is immediate resistance. If you are long the market, tighten your stops or hedge.
Fear and the Unknown
Fear is defined as a feeling of agitation and anxiety caused by the presence or imminence of danger. Fear can be exacerbated by being confronted with an unknown outcome. When we are unsure of the outcome of a particular situation, fear can take control of our emotions and lead to hasty decisions. When the unknown is replaced with the known, fear is eliminated and clear, precise thinking prevails.
Several years ago, I accompanied a friend of mine who operated a White Water rafting company out of Flagstaff, Arizona on a trip on the Colorado River through the Grand Canyon. I was very excited about the adventure and after a brief orientation, we put into the Colorado for a three day trip through the canyon.
I was raised on the ocean in Southern California and grew up body surfing and was used to the water and respected its awesome power so I was both excited but somewhat fearful. In the beginning, our trip was mostly a float but soon we approached our first set of rapids and the roar of the thunderous water was deafening and I could only imagine the picture of being crushed against the rocks and drowning. My heart was pounding and adrenaline surged through my body as my friend turned to me and said “We’re going to scout the rapid” as we moved the raft over to the riverbank.
I have to admit, I was relieved to know that I was going to be given a chance to see what the challenge was ahead of us instead of blindly going over the falls. As we walked along the edge of the river, my friend was able to determine the danger points and our plan to safely negotiate the Big Water.
We re-entered the river and took the raft skillfully through the treacherous rapid just as we had planned. It was exhilarating and I was able to execute my job to make it through and emerge on the other side in the calm eddies that followed the rush of water over boulders a large as houses.
So it is with trading. Fear can prevent you from entering trades as well as shaking you out of trades for fear of losing your portfolio. The anecdote for fear in trading is “scouting the trade” ahead of time and knowing how you will successfully and safely negotiate the market. You must know your destination and if you are detoured by the trade, you must know your contingency exit. With knowledge and a plan, fear fades away because you have removed the unknown and replaced it with known outcomes. The trade now becomes merely a function of executing the plan which has been outlined well in advance. Our methodology at www.markettamer.com gives you this skill. The knowledge of how to trade without fear can last a lifetime and allow you to achieve consistent success in the markets.
Fear can destroy your career as a trader if you approach the trade without “scouting the trade”. Just as my friend “scouted the rapid” and planned our path through the roaring rapids, so can you do the same with your trading. Best, Mark Espy aka The Robin Hood Trader
Robin Hood Trader Announced as Top Stock Market Blog Winner!
Congrats, Robin Hood Trader for being featured as one of Online MBA’s “Top 50 Stock Market Blogs” Winners for 2010.
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