Stock trading

Why trade stock instead of futures or commodities? One important reason is that the "time frame" involves in stock trading can be much longer and slower than trading futures, commodities or currencies. Also there are probably over 500 stock to choose from in every stock market.

Why "time frame" is so important?
Research shows that in any successful trading, there is a 20/80 rule, the same as most events in business. So what is that...? A winning trade depends 80% on psychological skill and only 20% on skill (that may have change a bit now due to the high tech computer facilities).

Therefore if the "timeframe' is moving too fast (where greed, hope or fear fluctuated in a larger scale) that a trader cannot handle, we are risking the mental capital... and risking monetary lost.

>> History shows that currency and commodities tend to fluctuate a lot:

• high risk
• high emotional change

The basic economic theory - supply and demand, applies in here as well...competition and competitor are normal events in any business world. While there are strong traders and weak traders in the trading game, with the money pool being the same, whoever beat their competitors most will take the bigger share of the pool...also known as zero sum game.

The question is why fight the strong guy while there are many weak boys around for you to pick upon? The answer is I'll choose to fight the weak boys - in trading stock you have a better chance to spot them and win more. Trading stocks in fact give you more advantage in analysis due to the information available in the S&P, Dow and individual industrial index. Therefore a better fundamental and technical analysis can be performed to achieve better and more accurate analysis.

The System-Traders website is a new project so we have not yet accomplished the target quantity of information data in stock trading; nevertheless we are advancing and making headway. But what we have achieved to this point in time is studied and filters out the outstanding stock trading sites from the normal crowd on the internet.

As the Internet online technology improve and develop in lightening speed, trading system software combine with computer hardware technology, trading system should deserve another chance to be considered from traders.

Profits in trading stock shares could diminished if not balance with a good currency hedge position in a diversified portfolio financial investment. Forex positioning can strengthen your risk management level in the whole portfolio in a long term investment growth. In forex trades, you can trade more with less money; needs lower margin than stock trading or futures trading margin. With the huge margin benefit also means if the market goes against you, you have to be prepared to take the risk.

Successful stock trading are based on the supposition that people will behave the same way (in trade) in the future and will make the same mistakes that they have in the past. Hope, fear and greed will come in almost always at the same situation in trading, this type of behaviours can be identify only if you keep a record of your trades and the feeling and behaviours with them. Changing these negative behaviours will improve your profit level. you can do it in a subconscious level with training in Trading Mind.