www.CandleStickForums.com Basic Stock Trading Basic stock trading is a recipe for success, even in today's complicated stock market . Basic stock trading requires both fundamental and technical analysis of stocks. Technical analysis of stocks using Candlestick stock charts provides traders with clear and accurate signals. Candlestick analysis allows traders to identify known stock price patterns to a volatile market. By doing so traders are able to profitably anticipate the upward and downward movement of stock prices , options prices, and futures prices on stocks . Fundamental analysis in basic stock trading provides traders with a clear view of a stock’s potential, both upward and downward. However, the market discounts stock fundamentals as soon as they are known, leaving technical analysis as the tool of choice for basic stock trading. Regarding basic stock trading we mean the basics of buying stock and selling stock . Traders can use the tools of basic stock trading like both technical and fundamental analysis in trading derivatives, for example. However, no matter how complicated a trading strategy is, it is based on sound basic stock trading. Besides analyzing when to buy or sell stocks with Candlestick patterns , basic trading relies upon tactics for management of investment risk , diversifying a stock portfolio whether for short or long term trades, as well as the use of stop loss orders and limit orders in general.

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Basic stock trading is a recipe for
success, even in today's complicated
stock market.

3. www.CandleStickForums.com
Basic stock trading requires both
fundamental and technical analysis of
stocks.

4. www.CandleStickForums.com
Technical analysis of stocks using
Candlestick stock charts provides
traders with clear and accurate signals.

5. www.CandleStickForums.com
Candlestick analysis allows traders to
identify known stock price patterns to a
volatile market.

6. www.CandleStickForums.com
By doing so traders are able to
profitably anticipate the upward and
downward movement of stock prices,
options prices, and futures prices on
stocks.

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Fundamental analysis in basic stock
trading provides traders with a clear
view of a stock’s potential, both upward
and downward.

8. www.CandleStickForums.com
However, the market discounts stock
fundamentals as soon as they are
known, leaving technical analysis as the
tool of choice for basic stock trading.

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Regarding basic stock trading we mean
the basics of buying stock and selling
stock.

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Traders can use the tools of basic stock
trading like both technical and
fundamental analysis in trading
derivatives, for example.

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However, no matter how complicated a
trading strategy is, it is based on sound
basic stock trading.

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Besides analyzing when to buy or sell
stocks with Candlestick patterns, basic
trading relies upon tactics for
management of investment risk,
diversifying a stock portfolio whether
for short or long term trades, as well as
the use of stop loss orders and limit
orders in general.

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Traders limit risk in basic stock trading
by limiting the amount put a risk in
each stock trade.

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Traders limit the risk of trading by
diversifying their trades over several
stocks or stocks in several market
sectors.

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This trading strategy is similar to
diversifying a stock portfolio in long
term investing.

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In doing so a trader may miss out on
having all of his money in the trade of
the year and may also avoid losing all of
his trading and investment capital in in
one bad day of trading.

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However, the best way to limit risk in
stock trading is to have a clear picture
of what stocks are likely to do next.

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Traders using Candlestick pattern
formations as their guide can have a
clear view of market trends and when a
market reversal is likely to occur.

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Basic stock trading online includes the
use of trailing stops and basic stock
trading through a broker includes the
use of limit orders.

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When a trader uses a well-defined and
well executed trading strategy he avoids
falling prey to greed and fear in his
trading.

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By setting limits at which he will buy
stock or sell stock he limits his risk.

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By using trailing stops in online trading
he protects himself from a rapid stock
price turn around.

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When a stock opens the trading day it
may gap up or down from its closing
price on the previous day.

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In this case limit orders may be useless
as the stock price may start the day past
the limit given by the trader.

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This is a good reason for day traders
looking to profit from short term
market moves to close out positions at
the end of the day.

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The use of technical analysis tools like
Candlestick signals allows traders to
enter and exit the potentially most
lucrative trades as fundamental to basic
stock trading.