One of our main goals at Bulls to Bears is to get our members to be a great traders, not just teaching them how to make great trades.
Trading is a skill to be learned. The only way a skill can be learned is by doing, not just learning. So whether you are day trading, swing trading or long term buy and hold trading, you must get as much real world experience as you can to become good. "Learning is an active process. We learn by doing. Only knowledge that is used sticks in your mind" - Dale Carnegie
All traders should have a good trading habits. One of the worst habits a trader can have is trading on impulse without direction. Traders who make trading plans are more likely to succeed, but even with a good plan in place you have to develop good trading habits.
Human nature, is human nature and people make impulsive trades even with their outlined plan taped to their forehead. They exit winning trades too quickly or let losses go longer than their plan states they should. In order to break bad trading habits, traders need to base success or failure on each trade by how they stick to their trading plans. Not simply on whether they make or lose money.
That being the case we like to have our students get into the flow and feel of the market.
We do this by asking some of them to do exercises which allows them to feel the market. These trading exercises force you to focus on the market auction process, order handling and other core market components that will enhance your trading skills.
The objective of this assignment is to motivate student interest in financial markets
We do this by asking some of them to do exercises which allows them to feel the market. These trading exercises force you to focus on the market auction process, order handling and other core market components that will enhance your trading skills.
The objective of this assignment is to motivate student interest in financial markets
Complete these exercises when possible.
You will learn a significant amount of practical trading information for the market when you complete these stock trading exercises.
You will learn a significant amount of practical trading information for the market when you complete these stock trading exercises.
Start exercising your trader brain and put it to good use!
Here is how it goes:
1. Pick a stock you are going to track every day.
2. Pick a stock index that relates to that stock.
3. Identify the stocks industry group and what other stocks are in it.
2. Pick a stock index that relates to that stock.
3. Identify the stocks industry group and what other stocks are in it.
Your job is to follow the stock for the next week. We want you to make observations about how the stock acts.
Specifically answer the following questions:
1. When the S&P Index is down, what is the stock doing?
2. If the index has a heavy volume day, how is the volume of the stock?
3. When the stock is up or down significantly, what are the other stocks of the groups sector doing?
2. If the index has a heavy volume day, how is the volume of the stock?
3. When the stock is up or down significantly, what are the other stocks of the groups sector doing?
The goal here is to get a feel for the stock. If you partake in this exercise, We ask that you email us your observations so we can comment and give you pointers. Send your emails to service@bullstobears.com.
If you continue to do this on a long term basis you will start to get a much better feel for the market. You can then pick target stocks and groups and learn to get into the “feel” of the stock market much faster.
Understanding the ebb and flow of a stock compared to the market will make your path to becoming a profitable trader and a much smoother one. Don't forget to Sign up here for BullsToBears.com's free newsletter today for more trading tips!
