There are no set “weighting” exercises to evaluate a stock, in the end it comes down to your feelings and the risk you’re willing to take, the direction you want to go. Fundamental analysis: A dispassionate look at a stock. This stresses economic conditions, examines a firm’s earning capacity, its growth potential, and its sources [...]
Wins and Losses (Every lesson within the Trading Tips link is a full tutorial, click on each preview to expand).
Wins and Losses - anyone trading will experience that, ANYONE! That is true of the most experienced professional as well as the greenest novice on the globe. Even the snake oil vendors who promise trading success “worth $150,000 with a 30 minute effort one night a week,” admit something less than 100% success from their [...]
Guest Editorial by Super Trader, Van K. Tharp Traders and Mistakes by Van K. Tharp, Ph.D. I’ve always said that trading is mostly psychological and that traders should spend a lot of time working on their core issues. In fact, most of my Super Traders spend at least a year working on psychological issues before [...]
www.providentinvesting.com Congratulations for taking this first step to assess your own risk tolerance. Brave people want to know what’s inside! Often, you don’t know how you’ll react under different conditions, but this little exercise will open your eyes to what might be! AND, to where a better understanding of market principles and strategies can take you. Whenever [...]
www.providentinvesting.com What is the Reward/Risk Ratio? We all face risk every day of our lives, driving to work, flying to destinations, drinking the water provided by our cities, investing in the market… In some cases the risk is so high we avoid the experience. We all have our own level of risk tolerance, the [...]
www.providentinvesting.com When you become aware of market risk, you will see the value of caution and control, features that can be learned! I was asked by a participant in an investing class if the statistics were as bad as reported, that is, regarding winners and losers among investors and traders in the [...]