Archive for Stocks

Best Stocks To Buy

Sunday, February 22nd, 2009

Hi Anna – a simple question for you – what are the best stocks on the market now to buy?

How Stock Markets Work

Sunday, February 22nd, 2009

Anna, I was interested to read your piece on how markets work. The ‘nuts and bolts’ always seem to be skirted over or assumed in other accounts I’ve read, but I’ve always been a bit unsure as to how the price mechanism works. For every seller there must be a buyer, and I couldn’t understand how, in a rapidly falling market, it would always be possible to find a buyer – meaning prices must fall much aster than it appears. If, for instance I have some HBOS shares at £5 and there’s sudden panic – why would someone buy them from me at £4, £3 or £2 . But it seems when markets are falling fast, you can always sell at any point on the way down. I probably haven’t explained that very well, because I’m still a bit bemused by the process! I’d be grateful for a guide to any books or articles that go into this kind of rudimentary ‘idiot’s guide’. Yours, Charlie

European Stock Markets

Sunday, February 22nd, 2009

Hello Anna Thank you very much for your reply. The products I would be interested in would be on European Stock markets, and also SP 500, E-mini, Options, Futures, etc. No Forex, no commodities, no warrants. Initially I was interested with NYSE and NASDAQ, but now the dollar has gone down so much, I could just go around and pick for the best markets??? I once was tested to know whether I would be a good trader, and the result was yes, mostly because I am a very cautious person who hates taking too much risk! (I suppose that is the reason I won’t start without serious tuition!) I prefer day trading, or swing, anyway closing all positions on Friday evening (Swiss time). I don’t think I would like Monday morning surprises… I found a site called http://www.tradingacademy.com/index.htm, an american company, which has premices in London. They offer a week’s tuition in London for about 7’000$, which I find terribly expensive, not counting the trip and hotel fees… It’s as you said! Thank you for any better suggestion, kind regards Semira

Comments (1)
Categories : Stocks

Risk & Money Management

Sunday, February 22nd, 2009

Hi Anna, I am Fernando from Sydney, Australia. I only started to get into the trading stuff. While I was researching on risk management I came across your site. Thank you and great stuff!! Congratulations!! My question is about the 1% risk per trade rule. In your examples you are not considering fees or taxes. However if I have a capital for trading of 50000$ each trade should be of 500$ but the broker alone charges 20$. I have researched and that is the lowest I could get. Therefore Every time I trade I do I am loosing 40$ (20$ to buy and 20$ to sell, more if I start shorting). Only to get back the fees I need to earn 10% per trade if I only risk 500$. Do you have any comments on that? Thank you for the help Regards.

Stock Chart ICI

Sunday, February 22nd, 2009

Anna, Regarding your downthrust example with ICI and given the size of the gap, I would have assumed that professional money had flowed out of the stock, as this action typically suggests a prolonged move lower. In this case, a recovery is highly unusual. Regards David