• You may be a good stock picker, but the timing may not always be right. Even a very undervalued company with strong fundamentals will continue to fall on bear market. If you’re sure about your pick, you should be then overweighting your position, and be very patient to survive through the bull market and even then, you should be keep on being patient, and let your profits grow as high as possible.

• Assess your performance but never judge yourself or others. Adopt strong decision-making process and follow it closely. Refrain from thinking of what will you buy for the earned money, or whom will you impress.

• Always divide your capital in 3-4 portions depends on your trading capital so that on an unpredicted event, you won’t lose your capital.
• Even if you do follow alerts such as short term or swing trades then at least you should have some capital to trade intraday.
• Don’t put all money on risk at once.

• You should trade the amount which you are willing to lose.
• There is no magic that will make you millionaire overnight
• Don’t overtrade for the sake of greed because that kills your capital

• It doesn’t matter how long or short you plan to trade for, why, and where. Everyone who trade need to have a plan, otherwise they should stay from trading. You will lose fight against your emotions. If you follow emotions and doesn’t apply STOPLOSS you most likely to be a bag holder.

• If you’re an investor or trader follow strict recommendations given. Be comfortable with your risk capacity or else stay away from trading.

• A very quick decline is stock price during trading day is called a falling knife, due to its shape on the stock chart. Usually, you will be advised never to catch it.
• A company with stable position, long dividend history and good perspectives for growth may be your perfect falling knife opportunities. Remember to use stop-loss orders though, as knives can hurt when falling for a reason.

Question everything you read, hear, and think. Validate every piece of information. Find source and question its reliability, its objectiveness

We saw people making and losing money on the same price targets and strategies because they don’t have balance in trade quantities. They always say what I bought in small quantity goes well but if I do buy in bulk, I got massive losses then I take several days to recover it.

The simple answer is divided portions of money and uses same quantity for different trades you do and try to learn stock behavior every day as greed kills sometimes. Never ever over trade.

• Look for sectors with long term growth potential and sustainability. Finding a good business to bet on is more important than betting on particular stocks. Even a mediocre company performs well in a growing sector, whilst a great company may still suffer when its main sector is in trouble.

• Adopt a set of rules to assess the quality of stock listed companies, from fundamentals to valuation to performance. Look for proofs for sustainable growth in the past and foundation to continue this growth such as AAPL BABA etc.

• Diversify stocks portfolio between innovations, Divide risk ratio and passive income. You want to catch rising stars which may take many years, but you also want to receive dividends regularly. Last but not the least, you should have some small quantity momentum stocks too for quick spike and diversify with blue chips to balance the risk.

• Follow long term trends of prices. Every stock price has a higher probability to continue the current short term, long term or momentum trend than to break it. You should never speculate on reverting trend without a reason such as NEWS or something.

• Easy to say, harder to make. During strong bear market, nearly every share fell regardless of their fundamentals. It’s the perfect time for buying value companies at a bargain price, but you need to be able to pick fundamentally strong stocks. Only such will survive the crisis and revert to flourishing after it has ended.

• One on hand there’s upside if you buy shares of strong companies during short term troubles, which do not affect their fundamentals in long term. But you can also leverage someone’s troubles as an ultimate benchmark. First look for companies that struggle e.g. because of scandals or internal difficulties, then find their healthy peers in the industry. If a healthy one is still cheaper than the struggling one, perhaps that’s the real bargain to go they present good value, you may have found perfect occasion to buy example PDS.

• Our memory is imperfect and often creates false memories, so rely on notes and comments made as stuff happens. Otherwise, you may forget vital factors or internalize a distorted version of what happened and previous version of you.

• You may still want to pick stock yourself and that’s the beauty of trading. Don’t forget then to track not only stock price, but also the price of its futures. It is a great tool to look into the perception of future prospects of the underlying asset. You can also reverse the approach: screen for commodities in strong trends and try to find shares which price didn’t fully discount it.

• It’s not easy to stop overthinking and worrying when investing, but this leads to trouble. Overthinking ignites overreacting, worrying damages your assessment and rational decision making. If you fall into emotional loopholes, stop trading and take time off stock exchange. It has been there for a long time, and will stay even longer. Relax and come back when you feel you’re ready again. This is not a full-time job. One good trade per year can bring you millions, so make sure it’s really the best you can do.

• Why some people lose money on the same alerts while some of then make money on them??
• Answer is Simple RAISE SL
• Always raise SL at every step
• From Buying>Cost>Profits

• One may think that short selling is a mirror of long buying, but it’s not. Firstly, there are only short periods of downtrend, as shares tend to grow most of the time. Secondly, the max you can gain is 100%, while the maximum loss in unlimited.

• You should become very familiar with stop-loss order, and implement it into your routine. It needs to be placed on your brokerage account every time you buy stocks, setting a safety margin to automatically sell it once it started going down. Some investors though talk of mental stop-losses, being their intention to sell the stock themselves but not ordering it yet. Indeed the only thing mental stop-loss will do is destroying your brain. Even if you decide to go long forever, you want to protect your capital.

Having a mental stop-loss instead of a real one will only make you stick to stock quotes every minute of every day, give you enormous doses of stress and raise panic when has approached your mental SL level. Make your life easier and set an ordered SL placed on non-random level such as a strong support line

• Do not chase any stock if you missed, wait for another opportunity. You can chase if you’re sure due to momentum or other solid reason.
• You will always get another opportunity with same or different stock.

• If you have seen The Wolf of Wall Street, it’s actually not that far from reality. A recipe for penny stock is always the same: launch a product, grow hype, grow more hype, make promises, sell it and disappear.
• You as an trader are the one to be cheated off your money. Staying away from penny stocks in highly recommended for long term period but small amounts will be ok Example:
• LFIN 9 TO 18 IS GOOD BUT THEREAFTER RISKY AS WELL.

• Supposedly the markets are effective in long term despite its short-term irrational moves. Trends tend to continue; fundamentals play in long term. It’s all true but there’s a catch. The biggest movements of shares prices are caused by unpredictable events, and turn the situation upside down. Even the best research, strong fundamentals and glorious dividend history may turn your investment into shambles because of a random event. And it won’t be your fault. You can only be prepared to the unexpected by adopting rules such as diversification, patience, alternative investing, lowering your costs, pursuing extras, and reduce such risk, but you will never get rid of it.

• One of the defining characteristics of successful traders is their ability to take a small loss quickly if a trade is not working out and move on to the next trade idea. In addition to tying up trading capital for an inordinate period of time in a losing trade, such action may result in mounting losses and severe depletion of capital.

• Averaging down on a long position in a blue-chip may work for an investor who has a long investment time horizon, but it may be fraught with peril for a trader who is trading volatile and riskier securities. Some of the biggest trading losses in history have occurred because a trader kept adding to a losing position, and was eventually forced to cut the entire position when the magnitude of the loss made it untenable to hold on to the position

• One of the indicators to check whether the stock is in BULLISH or BEARISH zone is SMA-50, SMA-100 and SMA-200.
• If the STOCK is above SMA-50, SMA-100 and SMA-200 it’s in the BULLISH zone if its below it’s in the BEARISH ZONE.
• You’ll also able to know about the SUPPORT and RESISTANCE zones as well.

There are basic three reasons that leads any stock to gain or lose.

• Below Expectations- Good profit but below industry’s expectations
• Forward Guidance- Future plans

Additional Info – Loans, debts or notices.

• An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance

We also called this 'Simple Moving Average – SMA

Chart showing stock performance with sma-200

There are many factors in order to identify a big intraday or short term runners which are as follows:

• Low floater (10 million or less)
• Hitting new high of the day
• Stock behavior (Former Runner)
• Ideally has a catalyst and people expecting a news
• Should know Support and resistance
• More volume than the average volume

• A bull flag pattern is a indicator in a candlesticks chart that leads a stock to explode.
• It shows a consolidation with little sell off volume and includes sudden volume rise and price starts to explode
• Low floaters with volume can jump way high more than 100% in an intraday.

MSDI bull Pattern where we can identify SUPPORT ZONE as well so that we can set up our STOPLOSS too are as follows:

• Don’t buy early on our alerts on the given price as it’s given due to different calculations, experience and several other factors.
• Always try to trade different alerts rather than sticking to one. If one trade doesn’t go well than another one will cover your previous stop loss.
• If you’re new trader watch for 1-2 days rather than jumping to the trades
• Book or lock profits at every step to stop loss and lock profits.
• Don’t chase or average down a falling knifes. Always wait for next opportunity.
• Delay in execution may kill your capital as well.
• For any questions, suggestions or feedback, Always send me a message.

You may or may not know how to read charts and or somewhat familiar with candlestick formations and other indicators. If not, please do more research as there are various resources for the novice trader on the web.

Key Indicators we look for:

• MACD:  A cross of the MACD Line and Signal is a good indicator that the trend is going into positive divergence which may lead to a bullish breakout. If the line crosses over the 0.0 region, bullish divergence is usually confirmed.

• RSI:  Generally we like to see this on an upward slope around the 50 area.  Between 50-70 is usually what we refer to as the “Power Zone”. Above 70, a stock usually considered “Overbought”, however, RSI can still continue up with the PPS as there is no hard and fast rule to sell at that level.

Fundamental Analysis

In the stock markets, always do your DD (Due Diligence) as you do not want to buy the wrong stock.  We always encourage researching every company you plan to invest in.

Some of the terminologies are as follows:

• Reverse Merger (R/M):  The acquisition of a public company by a private company, allowing the private company to bypass the usually lengthy and complex process of going public.  This is generally considered a good thing as it increases shareholder value – especially if the private company boasts good financials and revenues.

• Reverse Split (R/S): A stock split which reduces the number of outstanding shares and increases the per-share price proportionately. This is usually an attempt by a company to disguise a falling stock price, since the actual market capitalization of the stock does not change at all. For example, if a company declares a (1/20) one for twenty reverse split, then a person who previously held 20 shares valued by the market at $1 each will then have 1 shares worth $20 each.  You will want to stay away from any stock that has recently done an R/S or is preparing to.

• Market Capitalization: The total dollar market value of all of a company’s outstanding shares. Market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determining a company’s size, as opposed to sales or total asset figures.  A high market cap can sometimes be looked at as a negative if the company is not valued equally (ie. by comparing revenues etc) and does not have future potential.

• Outstanding (O/S), Authorized (A/S), Restricted Shares:  Stock currently held by investors, including restricted shares owned by the company’s officers and insiders, as well as those held by the public.  You will want to stay away from a stock with too many outstanding shares relative to its current price.  Restricted shares are shares owned that cannot be sold on the open market until a specified date.
• Float:  The total number of shares publicly owned and available for trading.  The float is calculated by subtracting restricted shares from outstanding shares. For example, a company may have 10 million outstanding shares, but only seven million are trading on the stock market. Therefore, this company’s float would be seven million. Stocks with smaller floats tend to be more volatile and move quicker than those with larger floats.

Options Trading

Contract to buy or sell a stock in the future at a specific price over a specific period of time

• One contract controls 100 shares.
• Price is displayed “per share”.

You must multiply the quoted price by 100

Strike Price

• The price at which the option buyer has the
• right to transact the security

Expiration Month

• The month in which the option expires
• Always expires the 3^rd Friday of the month unless the stock has weekly options

Six Influencing Factors

• Stock Price
• Strike Price
• Time
• Interest Rates
• Dividends

Let’s compare the idea of buying a call option instead of buying the stock.

CALL OPTIONS

• Stock purchasing replacement strategy
• Leverage
• Pay a small amount to benefit from an increase in share value
• Buyer believes the stock is going up
• Can’t lose more than the premium paid
  

PUT OPTIONS

• Buyer believes the stock is going down
• Alternative to short selling the stock
• Leverage
• Can’t lose more than the premium paid
• Can’t short-sell in a registered account, but can buy puts