Stock Trading 101: Selling Winners – Swing vs. Position

This post examines longer term trades, not day trades.

You have just put on a trade and you have sized it according to your risk management strategy, which means you have calculated the downside risk before putting on the trade.  When this trade starts to work in your favor, what do you do next? When do you exit?

This question comes up often in my discussions with fellow retail traders. It’s always best to know the exit strategy before entering the trade, not only from a risk management perspective but also for managing your winners. One way to know this is to define the trade by asking yourself the following question: is this a swing trade or a position trade? Continue reading “Stock Trading 101: Selling Winners – Swing vs. Position”

Stock Trading 101: Learn to Manage Risk with Position Sizing

“If you learn why people lose and thereby control losses, profits will follow” 

 

The above quote comes from the book:  What I Learned Losing a Million Dollars by Jim Paul. The premise of the book is that while there are many ways that people win in the stock market, there are only a few ways that people lose, therefore, rather than study all the disparate “winning systems,” we should seek to understand the small number of ways that market participants lose money and avoid repeating them. It’s a great book and it got me thinking about all the conversations I’ve had with retail traders and investors and how so very few of them talk about their trading plan and how they manage risk…. Guess what! Having no plan and not understanding how to manage risk are two of the ways in which market participants lose money!  Continue reading “Stock Trading 101: Learn to Manage Risk with Position Sizing”

Facebook is Social and Twitter is Media – 5 Reasons Why Twitter and Facebook Are Not the Same

Many investors talk about Twitter (TWTR) and Facebook (FB) as if they are interchangeable investments but as these two social media platforms evolve, it is becoming clear that there are monumental differences between the two and these differences are precisely why investors in Twitter will experience revenue growth that outpaces that of Facebook.

Twitter’s year over year revenue growth in the most recent quarter was 124% while Facebook’s revenue growth stood at 60%. These quarterly reports are a hint of what’s to come as advertisers and users alike begin to realize the stark differences between Facebook and Twitter.  Continue reading “Facebook is Social and Twitter is Media – 5 Reasons Why Twitter and Facebook Are Not the Same”

Verizon Throttling Data of Unlimited Plan Subscribers

If you are on Verizon and have an Unlimited Data Plan, you need to read the article I just published on The Street. You can find it here:

http://www.thestreet.com/story/12827269/1/verizons-decision-to-manage-unlimited-data-subscribers-could-benefit-sprint.html