Archive | Stock Trading

What is the Best Stock Market Trading Strategy?

Stock market trading strategy refers to a set of objective rules that spell out the conditions that need to be met prior to trade entries and exits. This set of objective rules would include trade filters and triggers, and specifications for trade entries. Trading strategy will also include rules for trade exits, timeframes, money management, […]

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How to Avoid Analysis Paralysis in Trading

In trading, you can see analysis paralysis as information overload. It is a scenario where a trader gets overwhelmed by tons of possibilities of price movement in action, and each scenario tends to present an opposing view in the trader’s mind. These opposing views create conflict and confusion, so that the trader finds it very […]

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Bloodletting in Investing

In stock trading or other investments, bloodletting refers to a period characterized by intense investment losses. This phenomenon can take place in the course of a bear market when the value of securities in several sectors is likely to depreciate heavily and rapidly. Blood letting concept is derived from a historic medical practice where physicians […]

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Bandwagon Effect and Its Implication in the Investment World

In its simplest definition, bandwagon effect refers to situation where people do certain things because many others are going the same direction, even when their instinct tells them otherwise. Perhaps you’ve witnessed the case of several people ‘getting on the bandwagon’ of popularly demanded products. This concept also affects our investment decisions. An Example of […]

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