Stocks are a wonderful investment but they will not be the right choice for small investors looking at trading for a living. A widely cited figure is that stocks return about 10 percent a year in the long run.
When just starting out, some beginning traders will want to use all of their available funds to trade rather than buying software and data feeds. In this article, we’ll look at how that can be done, using free end of day data and indicators.
In a previous article, I offered details on one way to quantify a bubble, at least for defining a market opinion. In this article, we will test the idea and assess the probability of successfully trading bubbles.
If trading can be reduced to a well defined set of rules, then market forecasting can also be defined by testable rules.
Experience is always the best teacher, but it’s also the most expensive. There are a couple of very important trading lessons to learn from the collapse of MF Global that we can learn at the expense of others.