Sunday, November 6, 2011

The Pattern that broke me for 8 straight hours...

Oi , Que Passa , fun Friday cuz I got to see me mates after 2 weeks and went out for a drink in the city, it was a blast. Then came Saturday where I saw my beloved Newcastle United gets a very hard well earned win against Everton and stick to the 3rd place in the EPL for this season.

Today am gonna blog about trading stocks. Am not gonna write anything big or complicated, because am a small timers, with some low experience cuz am trading from home with a fine capital for a student like me, so am not gonna talk like am big baller and don't be hating just read the next..


If you are interested in making some easy money off the market, even with a very small amount of capital I am more than happy to share an effective strategy that I am following for a quite some time.

First thing you have to know that trading in market need "Patience" Alot of it. An amount of patience that you can sit in-front of your screen and watch yourself lose money and be able to control yourself and do not panic and sell on a loose. Because Stock markets are based on 2 things a selling order (Ask) and a buying order (Bid) if they meet , then that's a trade , this is in it's most simplified way.. And what you about to read should make you believe that you will reach your required price, maybe not today, maybe tomorrow, maybe in 4 days but it won't be more than a week :) so chill..

Second thing you have to be smart about your believe, and gain your confidence from you preparations and your pre-invest stock study that you SHOULD preform before you start buying the share.
Bare in mind that you are not a big investment bank that controls the market and can manipulate it, and you can't afford to take risks that costs you 10% of your money because it's hard for you to retrieve what you lost. Don't be reckless and believe in yourself.

3- Now to the most important thing. Search for the most traded stocks on your country market, because the most traded stocks means you can buy and sell in the same day due to the extensive sell-buy offers.
From these stocks chose the one that has been traded on a fraction bases, it can be 1 cent difference, 2 cent, 5 cents, 10 cents, and that depends on how much money you are investing with. For my trades I like to go with 1 cent trades, because you are trading safely because of the Pattern.

The Pattern in this case is; Stock $WAKAWAKA trades daily at high 0.02$ and low 0.01$ . Sometimes they go up to 0.03$ and that is in very very very rare occasions. Now place a bid for 10000 shares at a price of 0.01$ for the share and wait till someone sells you that amount, After that put your ask for 10000 shares at a price of 0.02$ and wait until someone buys it. After you sell them, you will make a 100% profit on you invested amount (minus some brokerage fees off-course) .. That is just an example on the Pattern so don't take it seriously and go buy a one cent stocks, am making this line as a disclaimer :). the once cent stocks are dead beat, drop them if you need the money, if you don't need the money for months - think about it and stay away from it after that.

The Pattern in these fraction high traded stocks, is that these stocks are traded by the same traders in a certain way, most of the time, because this is very profitable and for an experience trader a loose in 1 trade has to be covered by the profits of the next trade. It is a non stop money making operations in fact. As long as they are around and trading, there are chances to make some money off their trades. Because one thing I've learned in these past 3 years.. Your Lose Is My Profit

Now, I've been trying to break the pattern for a stock that am interested in trading starting Monday but I couldn't keep up with the difficulties. I used 1 3 months back trading history to figure out the frequent asks and bids but it was too much data that I made a mistake and it made everything goes bust... Next time I'll try to break a pattern I'll buy a freaking case of redbulls and do an all nighter on it.. It's not easy so be cautious in this world.

Peace 

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