Replies to post #2 on Investing 101

[uneven]

"There will Always be opportunities to trade"
Very true bbgold, not understanding this will lead to "falling in love" with a stock when taking profit is in order.

What I am trying to understand right now is debentures and warrants, insider trading mostly. Any elaboration on these topics would be welcomed by me. In the meantime I will dig up some specific case studies on this. I think this is one aspect to DD that "warrants" attention.

[Bob Zumbrunnen]

Yes, volumes could be written just about setting and moving stops. Actually, this board is not only for making sure new investors/traders understand things like that, but can also ask "What's a stop?" and "What does 'I got stopped out' mean?".

Geez, it's actually been so long that I can't remember all the types of orders off the top of my head. I know "Hold and Hope" sure isn't one of them. hehe

Someone want to post them all with brief, simple explanations?

And I want to repeat here what you said in shorter form so it doesn't get missed and also to add extra emphasis to it:

"Pay your dues" with pencil and paper first, not with real money. If you want to trade stocks short-term, that's the single best way to test your ideas.

I don't invest anymore and haven't for at least a year, but by the time I was done with the market, my own method had evolved into simply learning the patterns of a small number of stocks. Between 10 and 20. And I would just buy, sell, short, cover those few stocks as they went through what I felt I'd identified as their normal rhythms. I looked for moderate but predictable movements. Not high volatility.

And even then, after more than 10 years in the market, if I was looking at another candidate company to add to the group I'd trade it on paper for several weeks before I'd commit any real money to it.

Besides, paper-trading is really quite a bit of fun. No fear. And when you're consistently making more than you're losing, then it could be time to start using real money.

You also mentioned "discipline". I'm sure a LOT of posts will be written about that word itself. Discipline to get out of a position while the loss is still acceptable and recoupable elsewhere if need be. Discipline to sell when the time is right. Discipline to not only know at which two prices (low and high) you'll sell your stock *before* you buy it, but to actually enter those orders right after you get the shares bought if you can't sit at the computer all day.

Edit: You mentioned the MKTSS board. Definitely a good place to learn about the market and trading/investing methodologies, as are many boards here. This one's for people who know *nothing* about the market but want to learn.