Tag Archives: Trading Rules

The UK Stock Market this week (for those learning about stocks and shares)

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The FTSE was slightly down yesterday, closing at 7338.99 (-0.15%)

The west’s leading economic think-tank (OECD) has raised its outlook for the UK this year. The pairs based organisation has predicted the UK economy will grow by 1.6% this year. The forecast has increased from the 1.2% predicted in November 2016. The increase growth percentage is a positive for the Share Market
Research has shown that the most successful investors are those that invest for the long term. Not everybody is going to be like Warren Buffet – the world’s greatest investor; a leaf that should be taken out of his book is that he is a long-term investor.
As we know, we have traders and investors, and I believe a person’s temperament would determine if a person would be an investor or trader or even both.
For people that don’t like to be stressed out, trading should be something that they think about twice . I don’t think trading is the best route for creative people, I would say medium to long term investing, is a better option.
The reason is simple, stress dissipates energy, and energy is needed to be creative. A long term investor would follow the market, research on opportunities and take action, such an individual, would have a long-term mind-set when picking opportunities and making decisions.
Talking about long-term investments, I saw some interesting news today about a company called Just Eat, it’s on the FSTE 250 index, and it is the second best performer, it is currently trading at 545.50 pence up by 5%.
Just Eat are online takeaway delivery, and as we all know, food is something that people can’t do without,  This factor alone could indicate that it could have good long-term prospects. Obviously, other factors have to must be taken into consideration such as competition, but looking at it logically, it should be on people watch list.

It’s pre-tax profit in 2016, more than double by 163.8%, from £34.6 million in 2015 to £ 91.3 million in 2016. Just Eat are based in the UK, and also have an international market, and there is strong growth in both markets.

So do your research, – fundamental analysis, have a look at the appropriate ratios such as Net profit margins, Price to book value, Long-term debt ratio, etc., Then have a look at the Charts to guide you in the right timing in stepping into the market if you so desire. Try to be patient if the stock/share trading in an old bought territory.

Also in the Financial news is General Motors Europe makers of Vauxhall and Opel are being sold to the company that owns Peugeot and Citroen, for £1.9bn.
Vauxhall and Opel have not made a profit since 1999, so it makes sense in a way, that what they have been doing is not working, and they have finally come to that realisation.
Let’s hope that current employees wouldn’t lose out on this new takeover. Peugeot’s chief executive Carlos Tavares has promised not to shut any Opel and Vauxhall plants after the brand’s acquisition.

Until Next time, keep Believing, Keep Hoping & Keep Loving

Peace Daniel

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Daniel Joseph MBA. See Daniel’s Bio here

Futuretrend Training Academy
Financial Training Department.

The World Money Show London 2012 @ Queen Elizabeth II Conference Centre

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38 STEPS TO BECOMING A TRADER

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1. We accumulate information—buying books, going to seminars, attending courses and researching.
2. We begin to trade with our “new” knowledge.
3. We consistently “donate” and then realize that we may need more knowledge or information.
4. We accumulate more information.
5. We switch the currencies or commodities we are currently following.
6. We go back into the market and trade with our “updated” knowledge.
7. We get “beat up” again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to “outside news” and to other traders.
9. We go back into the market and continue to “donate.”
10. We switch currencies and commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get “overconfident,” and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated. Most people will give up at this point, as they realize work is involved.
15. We get serious and start concentrating on learning a “real” methodology.
16. We trade our methodology with some success but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules, and find some success, but overall, we still hesitate when we execute.
20. We add, subtract, and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade, we still have a tendency to violate our rules, and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don’t follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear), and we begin to work on knowing ourselves better.
31. We continue to trade, and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little overconfident, and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring but successful), and our trading account continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of and in return now we are able to help others.