Mutual Funds

Team Building – 7 Steps to Success

“We are going to build a team”. Replace the word “team” with the word “house” – or any other noun that can be built and will take more than just a few minutes – and most sensible people will want to adopt a structured approach.
Plans will be drawn up and approved. People will receive copies of the plan and efforts will be made to ensure everyone understands it. Progress will be monitored against the plan. Lessons will be learned along the way that will be used to improve the next phase. Anything less will lead at best to mediocrity and underachievement.
So why is team building so often treated in an ad hoc manner? You wouldn’t take bricks and mortar out, show them a good time and expect them to rearrange themselves into something better just because they had a nice break. So why expect a group of people to do any better?
The only answer to that question with any merit is that bricks can’t think and people can. Which sounds like management by abdication. Or perhaps management by trusting to luck. It certainly doesn’t sound like a structured approach.
So if taking people off for some fun is not team building – what is it?
Traditional away day options are team bonding exercises – and that is different. Take a group quad-biking, paint-balling etc and it will help bond the participants through a shared experience. You can even justify its use of some of the training budget if you like by claiming it has helped them develop as a team. Just don’t believe it – or you’ll be disappointed to discover that while the group is closer it is no more effective.
No – if you want to build a team rather than just bond the individuals closer, you need a structured process. You need to decide before you start what improvements you want and can realistically expect the team to achieve. Next you can decide how long it will take to achieve those results.
Often, fun remains a key objective for such a session. If it is the only one – or is only combined with a desire to get the team to become closer – organising a team bonding session is an ideal solution. If, however, your expectations are set higher than that – then you need something more structured.
So what are the key characteristics of a genuine team building session? I suggest the following 7 steps will lead to success:
1) Have definite session and longer-term goals and know how the session goals lead to the longer term ones.
2) Use an engaging and varied base activity that involves each participant in something that he or she enjoys doing.
3) Use an activity that achieves that engagement while having genuine parallels to the workplace and has relevance with the session goals.
4) Select an activity that requires the same kind of skill sets and team approaches that are needed at work – albeit one that is removed from the work itself.
5) Consider using an independent (internal or external) facilitator – to allow all levels to join in as equals and to avoid it feeling like a “sermon from above”.
6) Debrief using a predefined process that highlights the workplace parallels and allows the participants to extract their own learning rather than be preached to.
7) Use a proven mechanism to transfer the learning back to the workplace, ideally integrated within the debriefing process itself.
If none of these seem important, you are probably looking at a pure fun bonding session. Whether that is a trip to the nearest (or furthest!) bar or something that offers the group an experience that all of its members will enjoy doesn’t matter too much.
But if any of them do seem important, then I’d suggest that they all are. If one or more are missing then your team building session will be compromised. And that’s a word that sits well alongside mediocrity and underachievement.
Copyright 2005 Sandstone Limited

Alan is Managing Director of Sandstone, a leading UK team building company. He enjoys creating innovative activities that combine fun with genuine team development. In his spare time, he does voluntary work for the RNIB.

http://www.sandstone.co.uk

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Corporate Profit Recession

Last week, the yield curve inverted, when the 10-year Treasury bond yield fell below the two-year Treasury bond yield. An inverted yield curve has always predicted a profits recession. Moreover, yield curve inversions have always predicted slower economic growth or recession.
The first chart below is an SPX 2 1/2 year weekly chart. Major support levels are the previous four-year high at 1,246, middle of weekly Bollinger Band at 1,230, and there are several support levels around 1,200, i.e. Price-by-Volume bar, lower line of the rising wedge, and lower weekly Bollinger Band. Also, 1,200 may be psychological support.
Major resistance is the multi-year Fibonacci level at 1,253, and the falling 20-day MA, currently at 1,262. Also, SPX fell below the December low at 1,249 Friday and that became resistance throughout the day. The chart suggests SPX will fall to the lower line of the rising wedge within three months, i.e. to 1,200.
Normally, the first two days in January are bullish (although, the market fell sharply over the first two days of last January). So, if SPX rises to around 1,260, next week, that may be an opportunity to buy SPX puts. However, a break below 1,246 may accelerate selling to 1,230, which may be an opportunity to buy calls.
Monday is a holiday. Economic reports next week are: Tuesday–Construction Spending, ISM Index, and FOMC Minutes, Wednesday–Factory Orders, and Auto Sales, Thursday–Unemployment Claims, ISM Services, and Oil Inventories, and Friday–Nonfarm Payrolls, Hourly Earnings, and the Unemployment Rate.
Some holiday retail sales data will be reported next week. Earnings season starts the week after next. However, the inverted yield curve may dampen optimism about future earnings. Also, the FOMC meets January 31st and Bernanke will replace Greenspan. Moreover, OPEC meets in late January.
The next FOMC meeting will be critical for both the stock and bond markets. If the FOMC tightens again January 31st, I suspect, the stock market will fall and the yield curve will invert further, i.e. short-term yields will rise more than long-term yields, since bond yields are not much higher than the Fed Funds Rate.
However, if the FOMC pauses, that would immediately boost the stock market, while the yield curve would steepen, i.e. short-term yields will rise less than long-term yields. Regardless, after the next FOMC meeting, bond yields should rise. So, TLT (long-bond ETF) may be a short. The similar same period second chart indicates resistance at upper Bollinger Band.
If low and inverted yields persist in January, the stock market may fall into the FOMC meeting, while TLT rises (and bond yields fall further). Consequently, the performance of TLT (and long-bond yields) may predict the stock market, over the next few months. However, it may be a rocky January for financial markets, until there’s greater clarity from the Fed.
Charts available at PeakTrader.com Forum Index Market Overview section.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.

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Time To Sell Your Winners

Happy New Year. 2005 is a wonderful ride for some and a horrible one for others. Now, it is time to sell your winners. Now? Yes, now. 2005 has brought some of these winners to incredible gains. It is time to sell these stocks. Check this out:
NutriSystem (NTRI), up 1,308%
GeoGlobal Resources (GGR), up 1,032%
Peerless Systems (PRLS), up 535%
ViroPharma (VPHM), up 517%
Fieldpoint Petroleum (FPP), up 512%
These are the best performing stocks according to MSN.com. You might argue that these stocks have more rooms to run. You might be right. But history is not in your favor. What does history tells us? History tells us that the best performing stocks of the previous year will not do well this year. Want more proof? Here are several examples:
Qualcomm Inc. (QCOM) up 1131% in 1999, down 47.7% in 2000.
Taser International (TASR) up 2040% in 2003, down 61.5% in 2004.
Travelzoo Inc. (TZOO) up 1056% in 2004, down 75.8% in 2005.
So, what causes their price to fall in the subsequent year? No. They do not make major misstep and become bankrupt. They are still delivering outstanding profit growth compared to their peers. But their stock price merely went up too much and too fast. Reality finally sets in and stock prices took a breather on the following year.
If you own the best performing stock for 2005, it is prudent to re-evaluate the fundamental of the company. If stock price went ahead of its fundamental, you’ll be better off to sell them now and wait until they get cheaper. Historically, it has been a wise decision for most of these stocks.

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Technical Indicators – How to Use the Adx Indicator

The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. High readings indicate a strong trend and low readings indicate a weak trend. When this indicator is showing a low reading then a trading range is likely to develop. Avoid stocks with low readings! You want to be trading stocks that have high readings.
This indicator stands for Average Directional Index. On some charting packages there are two other lines on the chart, +DI and –DI (the DI part stands for Directional Indicator). Ignore these lines. Trying to trade according to these two lines is a great way to lose money! The only thing that we are concerned with is the ADX itself.
Note: This indicator measures strong or weak trends. This can be either a strong uptrend or a strong downtrend. It does not tell you if the trend is up or down, it just tells you how strong the current trend is!
If ADX is between 0 and 25 then the stock is in a trading range. It is likely just chopping around sideways. Avoid these weak, pathetic stocks! Once ADX gets above 25 then you will begin to see the beginning of a trend. Big moves (up or down) tend to happen when ADX is right around this number.
When the ADX indicator gets above 30 then you are staring at a stock that is in a strong trend! These are the stocks that you want to be trading! You won’t see very many stocks with the ADX indicator above 50. Once it gets that high, you start to see trends coming to an end and trading ranges developing again.
So what is the ADX indicator good for?
This indicator is best used for screening stocks and writing scans. By adding this indicator to your scanning software, you can eliminate all of the stocks that are in trading ranges. You can then set up your scan to find only those stocks that are in strong uptrends or strong downtrends.
The ADX indicator does not give buy or sell signals. It does, however, give you some perspective on where the stock is in the trend. Low readings and you have a trading range or the beginning of a trend. Extremely high readings tell you that the trend will likely come to an end.

Craig Ferguson is a part-time swing trader. Visit Swing-Trade-Stocks.com to learn his complete swing trading strategy using candlestick charts.

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American Eagle Could Soar Again

When investors look ahead to what may be great investments for the next year, they much too often focus on what were big winners from the previous year. For example, shares of Google (GOOG) more than doubled in price during 2005. So, quite naturally, Google gets a lot of attention these days as a good investment choice.
But investing in what’s currently popular isn’t usually the most profitable move. The big winners in the future are much more likely to be stocks that are unpopular right now but happen to represent ownership in great businesses.
One such business may be American Eagle Outfitters (AEOS). American Eagle caters to teenage shoppers who tend to change preferences in clothing retailers based on which way the wind is blowing.
The stock is down about 30% in the last five months. However, American Eagle happens to be a very good business that can be bought at a bargain price. A high return on capital virtually guarantees that a business is a good one. And American Eagle certain qualifies on that count. By my calculations, its return on capital (earnings before interest and taxes divided by net working capital and net fixed assets) is 48%.
And shares of American Eagle can be bought at a bargain price right now. Its earnings yield (earnings before interest and taxes divided by enterprise value) appears to be about 17%.
A good company at a cheap price. That’s a combination that makes money for patient investors. American Eagle may be flying low right now. But look for the eagle to soar again.
This article is for education purposes only and should not be considered to be investment advice.
(C) Larry Holmes

Larry Holmes invites you to visit http://www.Money-Management-Wisdom.com/
You will learn how to become debt-free, save and invest money, cut taxes, manage risk, and achieve financial freedom in a much shorter time than you dreamed possible.

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Delaware Incorporation

Delaware appears to be the place to be if you are a publicly traded company or desire to be a member of the Fortune 500. The state of Delaware has modern laws, a Court of Chancery, and a business savvy government that makes Delaware incorporation easier and more beneficial to the organization. Still, it is important to follow laws and procedures when completing your Delaware incorporation process.
Delaware is home to more than half of all the United States’ publicly traded companies and approximately sixty percent of all the Fortune 500 companies. It is, therefore, not an exaggeration that Delaware seems to be the home to business. Though each company chooses a Delaware incorporation for different reasons, the state prides itself on its “complete package of incorporation services.”
If you choose Delaware incorporation you will be subject to law that is advanced and flexible enough to increase your chances to build a successful business. One unique aspect to Delaware incorporation is that you have access to the 210 year old Delaware Court of Chancery, which is the entity that wrote a significant portion of the U.S. Corporation case law. Plus, you do not have to live in Delaware in order to complete a Delaware incorporation. As long as you have a registered agent in Delaware, you can complete at Delaware incorporation.
One of the first things you need to in your Delaware incorporation process is to reserve an entity name. The state of Delaware makes the Delaware incorporation process easy by allowing you to complete portions of it online, like making name reservations. To reserve a corporate name, you will need to pay $10 per name. However, if you are to purchase a Limited Liability Company, Limited Partnership, Statutory Trust, General Partnership, or Limited Liability Partnership for $75 each.
The next step you will need to take in the Delaware incorporation process is to determine what type of business you will be running. If you will be completing a Delaware incorporation for a general partnership corporation, limited partnership, or limited liability corporation, you will then need to fill out the appropriate forms with the Delaware Secretary of State for Delaware incorporation. Again, Delaware seems to understand the need of business owners that items be convenient and easy to understand, so finding the forms for your Delaware incorporation is made easy through the internet. All the forms you need for Delaware incorporation are on the Secretary of State website.
If you are in a hurry to complete your Delaware incorporation, you can contact the Division of Corporations to use their expedited services. In Delaware, there are a number of services available for 1-hour, 2-hour, Same Day, and 24-hour completion. However, to expedite your Delaware incorporation, it will cost you between $50 to $100 extra.
Read the rest of the article here: Delaware Incorporation.

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Copyright © Charles Fuchs is an established online marketer who specializes in helping people start their very own Home Based Business. He specializes in showing people how Business Leads can help your business.

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The Indian Stock Market

The working of stock exchanges in India started in 1875. BSE is the oldest stock market in India. The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock Brokers Association, which we now know by the name Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition from the Government of India. National Stock Exchange comes second to BSE in terms of popularity. BSE and NSE represent themselves as synonyms of Indian stock market. The history of Indian stock market is almost the same as the history of BSE.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled based on the performance of the stocks of 30 financially sound benchmark companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was the liberal financial policies announced by the then financial minister Dr. Man Mohan Singh.
The up-beat mood of the market was suddenly lost with Harshad Mehta scam. It came to public knowledge that Mr. Mehta, also known as the big-bull of Indian stock market diverted huge funds from banks through fraudulent means. He played with 270 million shares of about 90 companies. Millions of small-scale investors became victims to the fraud as the Sensex fell flat shedding 570 points.
To prevent such frauds, the Government formed The Securities and Exchange Board of India, through an Act in 1992. SEBI is the statutory body that controls and regulates the functioning of stock exchanges, brokers, sub-brokers, portfolio managers investment advisors etc. SEBI oblige several rigid measures to protect the interest of investors. Now with the inception of online trading and daily settlements the chances for a fraud is nil, says top officials of SEBI.
Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was crossed in June and the 8000 mark on September 8 in 2005. Many foreign institutional investors (FII) are investing in Indian stock markets on a very large scale. The liberal economic policies pursued by successive Governments attracted foreign institutional investors to a large scale. Experts now believe the sensex can soar past 14000 mark before 2010.
The unpredictable behavior of the market gave it a tag – ‘a volatile market.’ The factors that affected the market in the past were good monsoon, Bharatiya Janatha Party’s rise to power etc. The result of a cricket match between India and Pakistan also affected the movements in Indian stock market. The National Democratic Alliance led by BJP, during 2004 public elections unsuccessfully tried to ride on the market sentiments to power. NDA was voted out of power and the sensex recorded the biggest fall in a day amidst fears that the Congress-Communist coalition would stall economic reforms. Later prime minister Man Mohan Singh’s assurance of ‘reforms with a human face’ cast off the fears and market reacted sharply to touch the highest ever mark of 8500.
India, after United States hosts the largest number of listed companies. Global investors now ardently seek India as their preferred location for investment. Once viewed with skepticism, stock market now appeals to middle class Indians also. Many Indians working in foreign countries now divert their savings to stocks. This recent phenomenon is the result of opening up of online trading and diminished interest rates from banks. The stockbrokers based in India are opening offices in different countries mainly to cater the needs of Non Resident Indians. The time factor also works for the NRIs. They can buy or sell stock online after returning from their work places.
The recent incidents that led to growing interest among Indian middle class are the initial public offers announced by Tata Consultancy Services, Maruti Udyog Limited, ONGC and big names like that. Good monsoons always raise the market sentiments. A good monsoon means improved agricultural produce and more spending capacity among rural folk.
The bullish run of the stock market can be associated with a steady growth of around 6% in GDP, the growth of Indian companies to MNCs, large potential of growth in the fields of telecommunication, mass media, education, tourism and IT sectors backed by economic reforms ensure that Indian stock market continues its bull run.

Read more about the booming Indian stock market or perhaps about something a little more sad like the stock market crash of 1929

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The American Stock Market

A stock is a legally binding symbol of ownership in a company. When you purchase a stock, you actually become the owner of a part of a company – a share holder. Since one company can release a lot of stocks, the ownership is typically spread over hundreds or thousands or owners. Selling shares in a company is a way for that company to bring cash to the company. If you start up a new small company, you typically own 100 % of the shares yourself. When you need to invest a lot of money in necessary equipment, you can allow people to purchase parts of your company. This will provide the company with enough cash to buy equipment.
To gain any real influence over a company, you must own a lot of the stocks or work together with a lot of the smaller owners. Today, people often buy stocks not in order to gain control over a company, but as an investment. They hope for the value of the stock to increase over time. A company can also decide to give a part of its annual earnings to the stock owners. This way, you can make money from your stock without selling it.
To put it simple, a stock market is a place where stocks are traded, just like a fruit market is a place where fruit is traded. The New York Stock Exchange, the American Stock Exchange and Nasdaq are three important stock markets in the United States. Unlike the fruit market, it would be impractical for you to stroll down to the New York Stock Exchange and purchase a bag of stocks from a vendor. Stocks are instead typically bought and sold via a stock broker or through Direct Investment Plans and Dividend Reinvestment Plans. If you purchase stocks via a Direct Investment Plans or a Dividend Reinvestment Plans, you will not actually buy stocks at the stock market; you will purchase them directly from companies.
Wall Street is very important place in the history of the American stock market. During the 17th century, Dutch settlers in New York built a high fence to defend themselves from attacks. The wall only lasted until 1685, but the Englishmen continued to call the street near the former wall Wall Street. The history of the American stock market does however begin in Philadelphia, not in New York. The very first stock exchange in America was created in Philadelphia, in 1790. The first stock exchange in New York was created only two years later, but it didn’t do as well as the Philadelphian stock exchange. In 1817, representatives from the New York stock exchanged travelled to Philadelphia in order to find the key behind the Philadelphian success.
The result of the trip was the creation of a more formal and disciplined New York Stock and Exchange Board. One of the more notable incidents in the history of the American stock market is naturally the stock market crash of 1929. During the early years of the 20th, vast amounts of money had been made on the booming stock exchange markets. This boom came to a rapid end when the stock market plummeted in 1929 and triggered the Great Depression in American.

Read more about the American stock market as well as other International stock markets

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SPX to VIX Ratio

The SPX to VIX ratio indicates SPX will be much lower within a month (see last week’s article “Will the Cyclical Bull Market End in 2006″ for more information on volatility ratios). However, over the next week or two, SPX may stay high, because of end of the year window dressing, new money at beginning of the year, and the start of earnings season in early January.
The first two charts below are same period daily year-to-date charts of the SPX to VIX ratio and SPX. The ratio closed above 123 Friday, which is an all-time high. Consequently, SPX is severely overbought, and on the verge of a steep pullback or correction, since the ratio is mean-reverting.
SPX rose above and held the 20-day MA throughout the recent two-month rally. However, last week, it closed below that MA. Consequently, a level just below the recent high at 1,276 is resistance, i.e. around 1,270. The next two weeks is a seasonally bullish period. So, the possibility of SPX rising to its upper weekly Bollinger Band or the upper line of the rising wedge, both around 1,285, should be taken into account.
Major support is 1,246, i.e. previous four-year high. If that level fails, then the middle of the (rising) weekly Bollinger Band, currently at 1,230, is next major support. There are many minor support levels, including several open gaps. However, the third chart suggests when SPX closes below the middle of the monthly Bollinger Band (which is also the 20-month MA), currently just above 1,180, then the cyclical bull market will be over.
Economic reports next week are: Wednesday–Consumer Confidence, and Thursday–Unemployment Claims, Existing Home Sales, Chicago PMI, and Oil Inventories. Financial markets will be closed Monday, December 26th. The final trading day of the year is Friday, December 30th. Also, markets will be closed Monday, January 2nd.
Over the first two days of January 2005, SPX fell over 30 points, from 1,218 to 1,186, and was in a general downtrend, until late January, hitting a low at 1,163. There may be a similar fall next month. However, the SPX to VIX ratio is much further above the 200-day MA, which may indicate a more severe downtrend. Consequently, SPX could fall to the (rising) 200-day MA, currently about 1,210, in a month.
Charts available at PeakTrader.com Forum Index Market Overview section.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.

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Don?t Push A Trade Too Hard

Have you ever started an exercise regimen, only to see that you aren’t getting the results you wanted? It’s awful common, yet sometimes the real reason eludes the person. I remember being in a gym, where a young man of about 30 was trying to add some muscle and definition. He’d do three sets of this, and three sets of that. He’d split train his upper half one day, then his lower half the next. He worked so hard, and yet he wasn’t getting the results he wanted. He was getting stronger, and tighter, but his muscles wouldn’t grow in size the way he wanted.
This guy was indeed becoming frustrated, and of course because everyone seems to be an expert when you’re at the gym, I heard people telling him to do carbo loading, protein loading, work more on the “negative” side of the exercise, do super sets, you name it. The one thing I didn’t hear anyone suggest was that maybe he was over training. He was taking his routines from magazines like Muscle and Fitness, written by world class body builders. Was he a world class body builder? No, he was “Mike” a painter. I didn’t find it surprising that he wasn’t getting the results he wanted, he was training his body as if he was a true world class body builder, but in all reality he wasn’t.
I am not an expert on body building, but I’ve done my share, and I have a fairly good dose of common sense. So, one day I mentioned to him that maybe he was pushing too hard. His body didn’t have the years of recuperative experience that the guys in the muscle mags have. I suggested that he was stressing his muscles to the point where they should have been rebuilding even bigger and stronger, but before they could do any growing he was pounding them again. For what ever reason, he figured he had nothing else to lose, so he scaled back his intensity, and frequency of workouts. Almost immediately the results were noticeable. Within a month of his more laid back regimen, his arms, chest and legs had grown measurably. Doing less got him more.
Sometimes it’s the same thing in the market. Sometimes we push so hard, over analyze so much, that we find ourself doing more harm than good. Staring at a screen watching every tick higher or lower, starts to get your mind racing about every conceivable possibility on earth. Pretty soon a small downdraft has you mashing the sell button for a loss, and then five minutes later it’s back above where you bought it. Sometimes you can do so much research that you get information overload and then you do absolutely nothing instead of making a play. Because we are humans, our emotions usually rule us. But, in the investing game, emotions will rip you to shreds. The best traders and investors I have ever met have mastered the art of removing emotion from their investing.
This is not an easy thing to do. When you hit the buy button, money, real money that you’ve worked, for is now on the line. We don’t like to lose money, so our brain kicks into high gear. Instantly a completely normal ten cent downdraft is the end of the world. Panic sets in. You are convinced that you just bought the evil stock from hell, determined to see to it that you lose all your money. You sell out with a loss and sit back trembling. Whew, glad that’s over, you say. But more times than not, you look later and the stock is comfortably higher than it was when you bought it. You lost money, on a winning trade because you “over did it”. You over analyzed. You pushed too hard.
In a trending market, you want to look for reasons to leave a stock in play. If there is a sound reason for it to weaken, then certainly you have to bail out and move on. But sometimes a stocks weakness is not because the stock did anything wrong, it’s some outside factor that influenced the problem. That’s what happened one Wed to a lot of traders. The market was supposed to be up. But even after tremendously strong numbers it was weak. So, it stands to reason that individual stocks were weak too. But was that a reason to sell out? Or would the appropriate thing to do, be trying to find out why the overall market was weak, and then make a decision as to what to do? Obviously the second choice makes the most sense.
The moral of this story folks is that sometimes it’s better to take a more relaxed approach. We aren’t in the business of scalping for pennies here. We are trying to enter stocks that are breaking out, showing momentum, or moving on news or product development. Sure there are going to be times when you enter a trade that seems to make sense and it will go haywire on you. Absolutely. But if the reason for the trade was sound, and all of a sudden you see the stock going the wrong way, it’s often best to sit back and try and find out if it’s stock specific or there is a wider situation going on. That Wed the market weakness was the result of a rumor that there had been some form of “incident” concerning a subway. Terror fears flared up. Stocks sold a bit. It would have been easy to just hit the sell buttons and bail out. It took some discipline to sit back, survey the overall land scape and decide that the trend was still intact.
Try your best not to over do it folks. Don’t stare at every tick. Don’t over analyze. This isn’t easy to do by any means. But I absolutely believe that you can all increase your winning percentages if you do indeed take a more relaxed stance. Sure you still want stops in case there is some calamity going down. But even stops aren’t written in stone. If something is about to stop you out, sit back a moment, look at the overall market, was there a rumor? Was there a report? Are the other stocks in the sector weak too? Downdrafts happen. Sell programs happen. They key is not panicking when they do. Don’t over think it. It’s not easy, but it’s necessary.

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