Trading Baskets Part I.

This time let's chat a little about trading "baskets". This would be a basket of stem cell stocks. Now we could say you believe the Net stocks look good and, again, you aren't sure which will do the best. In your Web basket you may need to pick up some shares of EBAY, YHOO and AMZN. Glaringly your basket can contain any amount of stocks you need. Many online brokers will actually let you set up baskets in your account, and you can put in a sell order all at the same time on the complete basket or pick and selected which of them you need to sell. I am not suggesting these stocks in any way, shape or form, but only using them as examples.

The examples above would approximately be the kind of baskets you would be thinking about holding for a little time and not day trading. They have studied them and even charted them for intraday movement ( I am hoping ) for a period of time and have learned the trading habits of the individual stocks. They have got a fairly brilliant idea of the way the stock moves on a daily basis with or without reports. As you can see I was able to hold my very own for some years till I found the secret and began to become a successful trader . We all learned that when we took a position either long or short that we better be ready to jump out if the trade wasn't going our way. That suggests they were trading for only a few ticks and each night returned home flat.

The public appears think that exchange members know everything and always made money. Many traders were inaccurate more than half of the time. My account had losses 40% of the time and twenty p.c. were scratch trades ( neither winners nor losers ). How often have you heard that one? BUT how often have you ignored that rule? At the end of the year when you investigate your trades you find that you made $3. 00 you lost you may show a pleasant huge profit. It's a crisis for the little financier today that ! hedge fu nd families are putting in selling limitations to deter speculators from dumping funds that are going down. Many require long holding periods and if you sell previous to that time they charge an additional fee of 2%. I've known traders that traded one stock all day 24x7 and nothing else. And still others were highly delicate to any kind of stories or event. I am only making an attempt to give you an example of what a basket may look like.