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Based on my observation and experience, you can draw support and resistance lines based on moving averages. For example, say you have a chart with 200 day moving average and 50 day moving average. And also assuming that the trend reverses from bear to bull trend. So you can expect that...

In my trading experience with the pros, they emphasized the importance of very high speed internet connection and a fast online stock broker internet trunkline. It is because when you do some orders, it might not get filled accurately because it takes a long time to reach that order from your...

Risk management is still important whether at stocks and portfolio level. Whether you need a portfolio of trading strategies, you are still evaluating the risk isn't it? Money management is very important to trading success and even more important than picking the right stocks or securities...

When I was still practicing trading 4 years ago, I am using MS Excel to track my paper trades. The objective of my paper trade is to simulate my trading and money management system in preparatory to real trading environment. I compute useful stats such as trading expectancy (average profit per...

Hi Mizhael, Just hit on these two great videos on risk and portfolio management: <a href="http://www.youtube.com/watch?v=UkwVRZ_KLlk">Risk management</a> <a href="http://www.youtube.com/watch?v=5CToJunoTNs">Portfolio Risk management</a> Tutorial on Kelly Criterion if you want to...

Hi, If you graduated on a program that deals with quantitative finance/risk management. Then you can have a bright future in stock trading. If I were you, I will start reading <a href="http://www.stock-trading.me/2008/03/stock-trading-101-basic-definitions/">stock trading 101: Basic...

One reason is the "volatility" of the market. A high volatile stocks tends to have large stock price variation (up and down). So if you set stop randomly below your entry (which is not advisable by money management), the higher chances you will get stop as early if the market is volatile...

Entry management is not only important but you have to manage how to grab profits for your ongoing trades, in this case you will need to learn <a href="http://www.stock-trading.me/2010/03/how-do-trailing-stops-work/">how to set your own trailing stops</a>. This is not only an important part...

I believe based on the data I am seeing right now that in overall there is still no clear of bull trend where any trader can trade long in S&P500. I will wait until there is a strong bull confirmation of the market which can "possibly" happen next month or the next 2 months from now. As you...

Warren Buffett even started investing from his own money (personal savings).Though it appears to be risky and not all of his ventures worked as planned, he learned from every investing experiences , leverages it and made himself a billionaire. <a...

One of the most important aspect in the success of day trading is money management. I mean it is less of the actual trading strategy(technicals or fundamentals) but it is more of how you manage your money in trading and calculating the risks. I suggest you will read this free <a...

One of the things that could go wrong in the real trade is overtrading. Of course, if backtesting works, it is purely in theory and done entirely in your own computer. If you do real trading, you need to pay commissions to the broker, if you did not factor in the commission costs during back...