martes, 22 de febrero de 2011

Six clues to detect an action that goes down

There are as many stock market trading strategies as their are traders. To give you a sense of the methods that are working, here are the stock trading strategies of some of the greatest investors and traders of all time. These traders have made millions and even billions on the financial markets, and they are not shy about showing you how they do it.
They have stock market trading tips that they have offered to the public. It’s up to you to take their time tested investment advice.  A lot of this is just stock market basics that you may need a refresher on.  Some are more advanced methods.
Steven Ickow - Millionaire Trader
Let’s start off with an average joe day trader so that I can show you it’s possible to be a normal guy and make millions on with online stock market trading.  He does day trading for a living and he does it successfully.
Steven Ickow trades off of the NASDAQ Level II and watches all of the bids and offers coming in from large institutional investors like Goldman Sachs and Morgan Stanley.
What does Steven Ickow attribute to his great success at day trading?  He says discipline, focus and patience is what’s needed to become a successful day trader.  Ickow mentions in this interview that he doesn’t chase trades, he waits for them to get setup.  That basically means he waits until he sees an trading opportunity instead of blindly speculating.  He also mentions that he only watches a few stocks at a time.
Warren Buffett – Oracle of Omaha, Value Investor
I can’t talk about great investors without talking about Warren Buffett.  He is called the Oracle of Omaha because he has made some huge calls on the stock market that came true.  Not least of which was the 1987 crash, the tech bubble and the housing market bubble.
He is estimated to be worth around $40 billion.  That is amazing seeing that he only started off his investing career with a few thousand dollars.
Buffett’s style is called value investing and he really just uses
stock market basics to do it.  This is where is finds good companies at bargain stock prices.  After reading through annual reports, he will do his own business valuation.  If his valuation is significantly higher than the market cap, he buys up the company.
George Soros – Speculator
George Soros is the complete contrast to Warren Buffett.  Although he is valued at a measly $8 billion.  But if you consider the fact that Soros has given away roughly the same amount, he might well have the same net worth as Buffett.
Soros owns a hedge fund that relies on pure speculation.  He is most famous for speculating correctly that the British Pound would decline in 1992 and shorted it making him a cool $1 billion dollars.
Soros’ stock market trading strategies involve something called Global Macro strategy.  It is a trading strategy that is based on finding mis-priced assets according to macroeconomic information.  Using this strategy, not only can he make money from stocks, he can also invest in just about any asset anywhere in the world, unlike Buffett.  And also unlike Buffett, he can short assets while Buffett will usually go long most of the time.

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