Hi there!
What have I learned this week on my journey to financial freedom?
Let's focus on the stock market.
Having done Marcus de Maria's course, I would like to stress that there are many, many techniques for making money on the Stock market. Just learn one or two, and stick to those - and stick to the rules!
This week I really learned of the power of the trailing stop loss. If you look at the Bigcharts site (http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=hlys) and put in "pot" as the symbol or keyword (on interactive charts - these allow you to plot the support and resistance), you will see the amazing vertical rolling stock for Potash Corporation.
Using my virtual account on Options express (https://www.optionsxpress.eu/login.asp) I bought into these shares in March at $150.07 per share. They are now valued at $181.9.
Now to use the technique that I learned with Marcus (click on the link to Investment Mastery to find out more), you start setting a stop loss below the low of that period - in this case it started at $104.46. If I hadn't been moving the stop loss up with the share price every few days, then I could have lost all those gains if there was a sudden drop in the market. It could still happen, but I have just reset the stop loss at $178.53, so should retain some of the gain.
With the technique that I have learned, we trade on the US stock market, where there is no stamp duty to pay. It is best to trade with a minimum of $2000 for each share, as each transaction carries with it a $14.95 fee (virtual money too at present)...
This trade has risen by $445.62 on an initial investment of $2100.98 - a ROI of 21.2% in 4 weeks! Beats the bank rates, doesn't it! This is an unusual stock though...
I'll tell you next week of my adventures with CORS - Corus Bankshares Inc - where I invested without following the rules! Just too keen to get practising (but I wouldn't have done so if it had not been a virtual account!).
Have fun with your investments! I am!
KR
Alison
Financial Freedom for Doctors can help you to work out how soon you can be financially free, enabling you to work part time, take better holidays or plan for an earlier retirement. Find financial freedom through property investment, the stock market and the internet.
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