For example, it is fairly well-known that election year stock markets perform very well. If we step back, and analyze the performance of the stock market through out its documented history, we will see a very predictable pattern of performance.

For example, years ending with 0 through 5 are poorly performing or negative stock market years. Years ending with 6 are generally transition years, with years 7 through 9 being strong to extremely strong. There are, of course, other factors affecting investment seasons, such as interest-rate cycle and peak spending cycles, and there are no guarantees that any particular year will achieve a specific performance target. However, rather than simply looking for a strategy (which obviously would have worked for the author during an appropriate cycle), it is important to match strategy with the broad trends.

While it is obviously no guarantee of success, your odds will increase that a long stock strategy will be successful in the last part of the decade, while selling options or purchasing money market instruments may be a better strategy for the early part of a decade.

Regardless, always keep in mind the protection of your capital, and always invest accordingly.
kiloache
_________________
I am an options Trader

Last edited by K on Fri Nov 25, 2006 5:26 pm; edited 2 times in total

P asked:Free Swing trading video lessons

does anybody know where I can find free swing trading video lessons? thx

R replied: Free Swing trading video lessons.

>> I found some really good ones here

kiloache
_________________
I am a Forex Trader

Last edited by k on Sat Dec 5, 2006 5:26 pm; edited 2 times in total

R replied: Proper Trading Less is more

When it comes to trading, many people have the mistaken belief that to be successful you must do as much as possible, and hence, trained as much as possible. In reality, however, nothing could be further from the truth.

In order to explain this, I will use an example from my own life:

When I first entered the workforce as a young man, I was working in a warehouse loading filthy boxes onto a conveyor belt. I got up every morning at five o'clock in the morning and usually got home after dark. My net paycheck at the end of a week of this was for $125. A while later, a friend of mine told me about a pizza joint that was hiring delivery drivers. Immediately I changed careers, and found myself working for $5.25 per hour plus tips (a significant increase from my warehouse job), even though I was working considerably less. The next breakthrough in when I decided to give some neighborhood children piano lessons. Suddenly, I was working much less than ever before, and making $15 per hour without even getting my hands dirty!

Some years later, I took my teaching skills and applied them to the new computer training industry. Suddenly my rate soared to over $40 per hour. Sometime after this, I took the skills I had as a computer trainer and specialized into consulting corporations and modifying computers for people with injuries and disabilities. My building rate: $125 per hour. Now, I am taking my skills and knowledge and moving on to the Internet where, once again, I expect my earnings to grow significantly, while working less.

The point is this is not to brag about my accomplishments. Rather, it is to illustrate a principal. This principle is that successful life does not consist in applying the war effort, but rather by applying less effort and greater knowledge. This applies to a broad spectrum of life areas, but nowhere more so than trading.

While I am of the opinion that people can make trading a success using many different methods and time frames, I believe that the deck is stacked against those that trade often, and favors those who trade less. As Warren Buffett once said, if you were only allowed to invest in three stocks in your entire life, you would probably end up being a multimillionaire. This is because would naturally wait until the absolute best opportunities before investing your cash. This is the goal of my investing, and I think one that most people would do well to take to heart.

R replied: Free Swing trading video lessons

Where is the common sense?

Whether I turn on radio broadcasts, watch MS NBC, or view chat groups on the Internet, I am constantly amazed by both the bad information that I see blared on a constant basis, and by the masses of people who seek and fall with this information.

I see so-called gurus giving conflicting and nonsensical explanations for minor movements in markets, only to make a 180° turn and give an alternate explanation on the following day. I see people jumping in to investments on the basis of rumors.

People: if you want to make a success of your investments, you must take the time to learn properly! Read as much as you can. Read the chat groups. See what people use that works and doesn't work. (But don't follow their rumors!) Learn a trading method with proper rules, entry points, and exit points. Start small, learn from your mistakes and gradually invest more as you become successful. Set realistic monthly goals for your account, and don't overtrade. Don't risk more than one over two percent of your account on any position. And NEVER trade with money that you cannot afford to lose!

If you can, find somebody who actually earns their money by trading and learn as much as possible from them.

Remember, in the investment world, and since it's not all that common. If you can exercise a discipline you will be many steps ahead trading quest.

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