Share Trading Blogs

Market Cycles

The world operates on a cyclical engine. The earth year is an annual cycle; humans and animals have a lifetime cycle where they are born, procreate, live a little more and die. Similarly, industrialised economies ride the wave of cycles of expansion, peaking, contraction and trough. Economists say that industries within those industrialised economies undertake their own cycle of birth, growth, maturity and decline.

Success in Stock Trading is Success in Your Mindset

So you’ve mastered your skill set in trading: reading stock charts in a technical manner and perhaps understanding the stock performance using an understanding of sound company fundamentals. While you continue to grow your knowledge of these essential skill sets of trading through the actual practise of trading, there is another factor to consider developing: your psychology whilst trading the markets. Have you ever told yourself, after seeing a stock move in your favour: “I saw that coming (but I didn’t have any money invested in that trading idea).” Have you ever wondered what stopped you from taking that trade?

Puppets

Control. We like to control things. We like to control things to a certain extent. To have some grasp of the environment around us. Most people like things to be predictable. For example: waking at the same time each day, having control of the choice of breakfast, a train or bus arriving at a certain time. Work which is predictable... controllable, where certain actions you take would produce certain results. Everyone operates within their own parameters. Whenever the unexpected arrives, it could be a pleasant or horrible surprise. The market can be predictable but it also can be an unpredictable beast. Only YOU can control your trading.

Global Markets: Think Big Picture

You are insignificant to the market. Remember that. The market does not care about you. Nor does it knowingly give or take money from you. The market is its own beast. A great trading genre writer, Mark Douglas once wrote in “The Disciplined Trader” that “The markets are always in motion; they never stop, only pause.” The market is in constant motion, open or closed, the field of market participants have perceptions which change with each new input of data.

So, you've decided to part with some of your cash and invest it into trading stocks. Share trading is like a business. Your primary purpose is to make a profit. You're not a charity freely giving money back into the markets. Like any successful business formulating a business plan, successful traders also need to have a well thought out trading plan. Remember the traditional goal setting maxims: Goals should be SMART: Specific, Measureable, Attainable, Realistic, Timely.

No one can go on trading at top speed all the time! Sometimes, you need to change gear and slightly push on the brake. Similarly, you cannot stare at the quote screen and focusing heavily on your trading all day. Take a breather and learn to relax. Learn to take time to relax from trading. You can learn to practice some yoga exercises that would prove to be beneficial to you. These would also help you to focus on your trading practices throughout the day. One of the most efficient techniques is take a long, deep breathe and hold it for 10 seconds.

We've seen a new milestone, light sweet crude for July delivery, New York's main oil futures contract has jumped on Friday (6/6/08) by $US10.75 a barrel which is the biggest one-day jump ever - to close at a record price at $US138.54 per barrel. The reason for the record-setting surge was a result of fears of a new Middle East conflict occurring from a comment made by a top Israeli official about Iran. While the closing price for the crude oil was at $US138.54, the high of the day was set at the all time high of $US139.12.