The Bull Hunters Guide

Hello Fellow Bullhunters

This week in Australia and New Zealand we have commemorated the Anzacs and have honoured them by paying our respects for their bravery. For this reason we have had a short week which will be even shorter for me as I am heading off to Chris Howards NLP Breakthrough to Success seminar for the next three days.

I am writing this brief post and promise that I will deliver more for you next week.

For those of you who have downloaded Sean’s ebook The Bullhunters Guide to the US Stock Market you will remember on about page 19 or 20 - depending on how your computer counts the pages - Sean suggested that you form an Investment Club with about five friends and you each pick 5 or 6 stocks. This is a way for you to learn about the 30 stocks found in the Dow Jones (DJIA). If you have six players then each player will have five stocks. If you have five players then each will have six stocks.

In doing it this way you don’t have to do all the work yourself. I know there were a few interested parties when the book was first released and if you have followed through I was wondering if you can perhaps comment to let us know how it worked out.

For those who have recently come onboard and are interested in this would you set it up and come back and tell us about it. Make it so you put in a few dollars (or more) each and then you can award a prize to the winner of the game. The winner is the one whose stocks have risen the most as you can invest an imaginary $1000 on each stock.

It is interesting that in the past, I have always heard of groups of mainly women who get together and learn about the stock market and trading in this way.

I have been doing some research into trading platforms where you will be able to trial a free account just to get an idea of how to trade US stocks online. But more on that one next week.

For now let me know if any of you have formed an Investment Club and are willing to tell us about it. Every body learns from experience and that is what we are here to learn.

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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Your biggest enemy, when trading, is within yourself. Success will only come when you learn to control your emotions.
Edwin Lefevre’s Reminiscences of a stock operative (1923) offers advice that still applies today.

Hello Fellow Bullhunters

A little about the psychology of trading is our topic for today. What happens when you begin to trade is that it becomes an expression of your own personality. You take it on originally thinking it is all black and white when instead, as you become more involved with the process, you start to form a kind of love affair with the market and find your favorite stocks and treat them as your very own. STOP RIGHT THERE…

In fact, when this happens, your emotions start to come out and rule how you trade. Becoming emotionally intelligent is a very important step to take at the very beginning. You see, good trading is not a question of doing, rather, it is a way of being. To learn more about Emotional Intelligence, go here to explore Jamie McIntyres ebook: What I Didn’t Learn At School But Wish I Had.

When you trade with your emotions you enter into a downward spiral so do not put yourself under too much pressure because you will fail. It’s important to learn to risk because without risk there is no reward. The minute you become risk orientated you are in the right frame of mind for trading the market.

Develop your own style of trading in a way that you stay detached from it. It is a good idea to start with small trades i.e. one contract at a time. See where this takes you and always, always record every step of what you are doing. This will tell the story of your trading personality.

A trading register will have your buy and sell price, the date you entered and exited. Also write down if the dog next door was barking at the time you chose to do that trade. Why you decided to take the trade. The profit/loss you made. Where you set your stop loss at. All these things and more will reveal your trading personality once again so review your register at any time and you will know straight away whether or not you are an emotional trader.

Wait for the right market conditions before trading. There are times when it is wise to stay out of the market and observe from the sidelines. Do not enter every single trade you see. Do not become a screen watcher and get up to the minute prices of your stock. Set yourself up so that there will be no need for this. You have a life to live… don’t you?

Have the courage of your convictions: Take steps to protect your profits when you see that a trend is weakening, but sit tight and don’t let fear of losing part of your profit cloud your judgment. There is a good chance that the trend will resume its upward climb if you are bullish in a trade, or downward spiral if you are bearish in a trade.

I would like to acknowledge Hans Kujat, a fellow 21st Century Academy Graduate who made the suggestion for this weeks topic.

There is plenty to learn about trading and I am here to help you on that journey. For those of you who wanted to leave me a comment last week and couldn”t because of the challenge of a technical hitch with the software, I invite you back now and look forward to hearing from you.

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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Hello Fellow Bullhunters

What I would like to give you today is a brief overview of the different types of analysis you can use to help you in selecting shares. The methods most commonly used to select shares to invest in are:

1. Fundamental Analysis is when we use the history of a company, combined with their financial status and the management of the company as a whole. Basically, what we hear on the news and read in the papers gives us this information.

2. Technical Analysis is charting the stocks and backtesting historical data to look for various patterns that the stock might be producing. By using this method, we see that history has a way of repeating itself. Especially in the blue chip stocks.

3. A combination of both.

These methods are widely used. In fact, Warren Buffet, the second richest man on the planet uses just fundamental analysis. He has been doing this for many, many years.

Personally, I like to use technical analysis. Reading charts is a simple method of learning about a stock. The more practice you do, the better you get at it.

Bullhunters, I learnt how to chart stocks by hand when I was first interested in trading the stock market. Drawing candlestick charts took plenty of discipline, but it was well worth it for me. It has given me a background in understanding charts.

The software available today makes it unnecessary to chart stocks by hand as you have it all at the click of a button now. There is a vast array of charts available to you on the internet as well. You can have a look at bigcharts.com, marketwatch.com and finance.yahoo.com.

I would like to recommend for those of you who are here to learn about trading that you start to look at some charts to get an idea of some of the trends that certain stocks have.

Has this article helped you?

Are you getting what you need from this blog? Let me know how I can best help you to learn about the US Stock Market.

I have just returned from Barbados… I enjoyed a little R & R, and got in with the locals and all that Calypso music. Unfortunately, there wasn’t any cricket in town while I was there… they certainly love their cricket… there are signs up everywhere you go about how much they love their cricket. Everybody should get there at least once… it really is a nice place to visit.

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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