Greed Versus Fear

When the market is going up investors and traders that actively participate in it are said to be motivated by greed. When those same investors refuse to participate when the market is going down, by either cashing out or not adding to current positions, those same traders and investors are said to be motivated by fear. Contrarians are told to buy when everyone else is fearful and sell when everyone else is greedy.

Is all of this investing behavior correct, incorrect, or a mixture of both? If it's a mixture, then which part is correct, and which is incorrect? Everyone must admit that greed has paid off, but so is afraid, and contrarianism. So, buy and hold is the strategy that is recommended to take advantage of all of the ups and all of the downs in the market.

Buy And Hold

Since the stock market averages up over time the wisdom is stay in it for the long-haul and don't worry about its price fluctuations.

Experts say "if an investor were to have held an S&P 500 index fund between Jan. 1, 1995 and Dec. 31, 2014, they'd have netted a cumulative return of 555%, or 9.9% a year. This includes holding through both the dot-com bubble and the Great Recession. But had they missed just the 10-best trading days over this 20-year period because they'd scurried to the sidelines out of fear, their aggregate return would have been more than halved to 191%."

But isn't the reverse also true? What if an active trading investor hadn't been in the market for just the 10-worst trading days over a 20-year period where would their portfolio have been? Wouldn't the aggregate return be far-higher than the average return over that period?

Timing The Market

All experts agree that this can't be done. While it is true that it can't be done with 100% accuracy is it possible for an informed trader to be right more often than he or she is wrong? Thus, maximizing participation in the market on it's best days and minimizing the damage done on it's worst days? Sure, sure that's a better way but only professional trading gurus and large analytical staffs could ever hope to succeed at this strategy, right?

Research To the Rescue?

The internet has opened up information to retail investors that used to only be available to experts. Gurus used to process this financial information and come up with indicators that could give them an advantage in knowing when to limit or maximize trading in particular stocks. But now with the internet, and the research available at various trading services, even retail investors (non-experts) can improve their ability to trade in and out of stocks manifesting trading signals for price increases and decreases. Technical indicators combined with the financial news now available for stocks that trade on the US stock exchanges can warn retail traders as to which stocks to avoid and give a heads-up regarding stocks to buy because they are poised to move up in price.

Now it comes down to choosing which stock research site to use. There are a prolific amount of research sites to choose from and success at the use of any will be dependent on the skill of the individual trader to execute on the information given. With care and attention to detail the right stock research site combined with timely news about stocks on a watch list can result in an above average success rate on choosing and timing the buying and selling of winning stocks.

Resources for financial news on stocks:
Yahoo Finance
CNBC
Bloomberg
MSN Money
Zacks

Resources for easy trading research and signals:
Most Excellent Investor - our site

Non-Professional Stock Traders Beware

Non-professional stock traders are told to leave the intraday stock trading to the professionals. This warning is a protection for the unprepared stock trader but a well prepared (and disciplined) amateur can still win trading stocks by holding very short-term (less than a day) positions in the stock market.

Why Intraday Stock Trading Is Risky

It's a given that high reward brings high risk.  There is very high reward from high returns that Intraday trading brings. When the market, or even an individual stock, has a down day often times there are times during the trading day that a profit can be made as stock price(s) dip and recover. Get it right and a trader can win during the day even when the market is down.  But get it wrong and an trader could lose intra day even when the market is up. But the trader who is prepared ahead of time for the day's trading can jump on an opportunity when it appears.

Prepared How?

Besides real-time stock trading information something else must be added to the arsenal of the intraday stock trader. We like to refer to it as ahead-of-time analytics. Specific stock trading opportunities based on trading indicators gathered on researched watch lists ahead of time can be used in conjunction with real-time analytics as the trading day progresses toward the pivot time(s) indicated by the ahead-of-time watch list.

Where Can You Find the Stock Analytics Necessary for Intraday Success?

The internet is a wonder. Expert information on a variety of subjects are found at your fingertips. But to be successful at trading stocks intraday requires actionable information. There are high-cost stock trading services that can provide actionable trading information. This website is one stock trading resource that provides specific watch lists based on trading indicators that ensure the stocks listed are volatile enough, have the proper market interest and technical signals for the time(s) indicated.

A daily snippet of a sample from one of our watch lists is provided for free. Use of the stocks with the research that has gone into the ones chosen for our watch lists can help even non-professionals trade stocks intraday with consistent success.

Short term or day trading is a highly speculative endeavor. Speculation in the stock market is not the ability to know the future since no one can know the future. So how do you speculate with any success?

Develop strategies with winning advantages, when the odds are on your side you have the chance to win more often than you lose. Work the odds correctly and you will lose less often (but be warned that you can still lose).

Take heart, short-term trading is how most traders and would be traders play the markets. For individual stock traders short-term trading offers the greatest financial rewards. But on the flip side short-term also presents the greatest challenge, requiring constant attention and vigilance and a strict plan.

This website offers hourly stock watch lists containing stocks that have the odds stacked in their favor for a rise in price. The analytics used are based on the proprietary use of technical indicators such as price and volume, price convergence/divergence, supply and demand, and trending. All watch lists presented on this site are used best for determining short-term stock positions.

The 7 Day FREE Trial period is so that all new members have the opportunity to back test and paper trade while looking at the performance of the stocks in our watch lists without risking any money (not even the price of our subscription since if cancelled within the 7 Days you won't be billed).

The secret to successful short-term trading is choosing stocks that follow the trend of your trading style, and strictly following the trading plan you developed before hand - when to get in, how long to stay, when to get out - that limits loss of principal (amount invested), and maximizes profits.

This is not a set-it-and-forget-it endeavor. It's more of a set-it-and-watch-it so as to be ready to get out of a trade endeavor. The analytics behind the hourly watch lists presented on this site provide a head start in picking day trade winning stocks. After back testing and paper trading you can determine the best time of day to make and duration to stay in your trades.

Here's to your fruitful day trading!

Owning very good stock trading software can be very handy for making faster and easier transactions in the stock exchange. It is a great way to analyze the market with the use of an computerized solution that is capable of examining important indexes as well as giving you a preview of which shares you should consider trading.

Stock trading software is basically a computer program (sometimes its an internet service) that sits on your computer integrated with a brokerage account allowing you a certain degree of access to the stocks of any exchange in the world. The program may have the ability to analyze movements within international markets too.

Traders often use this kind of software to perform both buying and selling in the stock exchange. It  offers investors various benefits that can help them in successfully engaging in the stock market. Here are some of the ways that the software helps you:

Time Saving

One of the major benefits in using stock trading software is that it saves you a lot of time. After all, time is a very essential factor in stock trading for you to be able to make the best deals in the most timely manner.

Through the use of trading software, you can forego having to spend a long time trying to interpret data for your stocks through printed reports or online stock pages. Through a single click of the mouse, the software can download the necessary information and will process all the data for you so you can make your decisions faster.

Objective Guidance

Another great benefit for using trading software is that it can give you great trading guidance, especially if you are a beginner. Because the program is not based on emotions when presenting its selections to you, a more objective and truthful judgment on which stocks will be best to invest in can be delivered. And so, there is a better chance that you will be guided to making a better and unbiased decision.

More Control

Using stock trading software also gives you more access and control over your own accounts. Instead of relying only on brokers to negotiate deals for you, you are now empowered to handle a lot of the work yourself, and you can even check on how your investments are doing in the market at anytime. This way, you can monitor your stocks more effectively.

Broadening Of Your Portfolio

Finally, the use of trading software can also allow you to make international trades easier and this may broaden your portfolio. Because the program is based on information technology and a vast online network, it would be easier for you to make global transactions without having to leave your own home. This can pave way to broaden your stock portfolio and even make it more secure.

Indeed, the use of trading software is a great way to maximize what modern technology has to offer and incorporate it into your profit making. By saving you a lot of time, giving you more objective advice, empowering you to have more control and broadening your portfolio, these programs have proven very useful for anyone interested in trading stocks.

And so, if you are interested in making your stock transactions faster and easier, or if you are merely new to the market and want very good assistance in your decision making, then you can invest in a good stock trading software package.

How To Use A Watch List

Stock trading watch lists are just what the name suggests, a list of stocks to keep an eye on. An investor is watching either the price or the volume action for a particular stock, or a particular group of stocks, in a list.

The Most Excellent Investor website is based on stock research for taking long positions - buying stocks and selling them. So the researched watch lists on this site are geared toward establishing long positions. (Note: in this context the word long does not indicate a length of time but instead indicates the practice of buying shares of stocks first, then selling them; as opposed to shorting/selling shares first then buying to cover later.)

What Are You Watching For?

You are watching for stocks to approach some pivot point that will indicate that they are ready to make a move in price up or down. If you are looking to establish a long position - buy a stock first then sell it after the price rises - then you are watching for signs indicating the stock price is ready to make a move up. If you are looking to short a stock - sell shares you don't own at a high price then buy shares to cover your short when the stock price later drops - then you are watching for signs indicating the stock price is ready to make a move down.

Remember, Most Excellent Investor watch lists have a long bias, and are researched for investors with short-term long positions in mind (buy shares then sell the shares at a higher price).

What To Do When What You Watched For Happens?

Once a stock reaches the pivot point you anticipated then it is time to act - buy and take your position in a trade or sell and take profits from your long position already held.

The research behind MostExcellentInvestor.com's watch lists are based on well known indicators (such as MACD - moving average convergence divergence, OBV - on balance volume, EMA - exponential moving average, and others) plus our proprietary algorithms.

Our hourly watch lists give the approximate timing of the minute you can expect a stock to make a move up. If it seems you missed a move on a particular stock, it's best to let it go; no worries because there is another stock that hour that will make a move. Just check our watch list for that hour, or the next.

When Do You Get Out?

Once your anticipated price movement has taken place then you should close your position and move to the next trade that you have been watching out for.

If you entered into a long position by buying shares of a stock, then when you've made the profit you anticipated then it is time to sell. For short-term trades usually a 2% - 2.5% gain is all that you can expect. But since you have the potential to do this multiple times a day the ROI is great for many small gains.

Bottom Line: Take advantage of our $1 14 Day Trial, which will usually give you 10 trading days no matter which day you sign-up.  Use the first day or two to "back test" our watch lists - after the market closes compare the stock positions outlined on our watch lists with actual stock charts for those same stocks.  Then paper trade - don't actually make trades but see what would happen if you made them. - do this in real time. You will see how valuable our watch lists are without taking any risks. After you find them valuable then start trading for real.  If you don't find them valuable you can cancel your membership before 14 days and not be charged.  Click here to give us a try!