Learn Stock Trading From Playing Poker

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Picking good stocks is only the first step to become a consistently profitable trader. Those of you that track the performances of stock picks I post on http://www.cisiova.com/analysis.asp know that it is impossible to determine if a stock is good without a good exiting strategy. And for most traders, exit strategy is the hardest part. Many people say that to trade profitably you need to develop the right mentality. Unfortunately, such winning mentality can only be developed …
stock, stocks, stock pick, stock trading, trading, poker, portfolio management
Picking good stocks is only the first step to become a consistently profitable trader. Those of you that track the performances of stock picks I post on http://www.cisiova.com/analysis.asp know that it is impossible to determine if a stock is good without a good exiting strategy. And for most traders, exit strategy is the hardest part. Many people say that to trade profitably you need to develop the right mentality. Unfortunately, such winning mentality can only be developed through experience. However, there is a short cut to get through the learning curve without throwing thousands of dollars in the process. This short cut is playing POKER.

Yes you heard me right. Apparently, playing poker has a lot of similarities with investing in stocks. First of all, they both deal with money, uncertainties, and a keen judgment of potential risk and reward. In this article I will explain the similarities and differences between stock trading and poker. But before proceeding, make sure you know the rules of Texas Holdem and fluent with the terminologies.

Think of stock picking as looking for good hands to play. In Texas Holdem, you can look at the two hole cards and decide whether you can play the hand or not. Similarly, you can analyze the stock before entering a position. Fortunately for you traders, no one will raise pre-flop, so you just pay the commission. Remember to exit the position you also need to pay the commission, which implies that the cost of entering a position is two times the commission. Good poker players only play good hands, so you should do thorough researches before entering a position. One good thing about trading is that you do not have to wait for good stocks like poker players wait for good hands, you can find good stocks on stock picking websites or using screeners to find them yourself.

Once you call the blinds in poker, you get to see the flops and two more cards. Think of these cards as the performance of your stock after you enter the position. In poker, the flop can make a good hand, a medium hand, or a bad hand (by helping your opponents). In trading, you can observe the potential of the stock as well, and you should objectively judge the downside and upside potential of the stock. In poker, there are times that you have a good hand, and your opponent have a better hand, and you know you are beat. These are the times where your mentality matters the most. An experienced poker player will fold his hand regardless of the amount of money he has put into the pot. As a trader, at times that you think the upside potential fails to actualize, you should sell the stock regardless of how much you have lost. On the other hand, when a good poker player knows he has the winning hand, despite the possibility of losing at the river, he would bet aggressively, without fearing the small losing possibility. In trading, this translates to if the stock goes up and manifests higher upside potential, you should not fear that you will lose your recent winnings. Therefore the winning mentality is to ride when the stock is going up, and sell when the stock is losing its heat. This discipline is easily said than done. So many times I have heard people lost all their money because they hold on to losing positions (due to hope) and sell winning positions too early (due to fear).

By playing poker, you would get the chance to master your emotions, learning not to hope when you are beat, and not to fear when you are favorable to win. You want to lose small and win big, not the opposite.

Now go practice. This mentality only develops with experience.

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Day Trading Online in the United States

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Day trading online in the United States has become a powerful trend in recent years.
online day trade trading invest
Day trading online in the United States has become a powerful trend in recent years. And while growth rates in the US have been sluggish in recent years, the US has still maintained a strong dollar, which is still used as the unquestioned international standard.
Unemployment rates have been better than where they are now, but consumer spending is at a normal pace.

But what does all of this have to do with the stock market?-Surprisingly a lot. Macroeconomic trends are quite simply the sum of microeconomic decisions and realities. If the economy overall is suffering, there’s a good chance that most firms are also experiencing slow growth rates, which will be reflected in share prices on the NASDAQ.

This also means that day traders will feel the strain; some may even avoid trading altogether out of a sense of despair, which may further lag growth rates.

Most of stock trading websites are actually based in America. So that means that you will always have a huge selection of companies to choose between for your stock trading services.

Day trading online in the USA is a big business and a lot of people setting up online companies are making a lot of money, often through sign-up and service fees. But the real winner can be the consumer–the one who signs up for the website: these people get into the online stock trading world and can make a real killing when they are buying and selling all the right kinds of stock.

But you do need to have some kind of knowledge about buying and selling stocks when you are taking part in online stock trading. Brokers are available to give you any advice when you need it; and if you are always failing to earn, then you should really give a broker a call, just to see if they can help you out of your losing streak.

USA is recognized by many as the home of the strongest and largest stock market. This is why foreign investors from around the world choose to invest a good amount of their money in US-based business. For you to make the most out of the US stock market, you need to be able to know when to buy and sell. If you do not know when to say that enough is enough for that share, then you should not be trading at all. A lot of people have exact strategies-technical or fundamental-to determine exactly when to buy and to trade and exactly how much to diversify to manage risk appropriately; and these are the people who are usually earning a steady income.

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Go Stock Trade . com Primer: What is the stock market all about?

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Thousands of people who have money in any type of account for their retirement can consider ourselves participating in the Stock market. But have you pondered about the functionality of how this interesting market works? Imagine being at a regular auction, where instead of nice bits such as cars and antiques are being bidded away, think of bits of public companies being auctioned away.
stock market, ETF, 401K, learn how to trade stock, gostocktrade, gostocktrade.com, go stock trade, stock trading blogs, thomas howell, equities trade
Thousands of people who have money in any type of account for their retirement can consider ourselves participating in the Stock market. But have you pondered about the functionality of how this interesting market works? Imagine being at a regular auction, where instead of nice bits such as cars and antiques are being bidded away, think of bits of public companies being auctioned away.

To make a less confusing analogy, think about the role of an auctioneer. The auctioneer’s role is to get the highest and best price for each product. Well, the stock exchanges around the globe kinda operate in the same fashion. The auctioneer role, is called a Market Maker. In a stock sale, there is no stable, set price for stocks, but instead, setting the price is the role of the Market Maker.

The price will fluctuate greatly, because the ying and yang of the market, the buyers and sellers, will bid on either the stock going lower, or higher. Usually when you see a stock price go up, it means that the buy price of a stock has increased. This is vice versa when a stock declines in value.

Now I am sure you have seen visuals on the major news networks of how a stock floor looks. You know, the floor where tons of stark raving mad folks, scream numbers and look at monitors and make trades all day. The trading day starts at 9:30 in the morning Eastern Time, and stops at 4:00 in the afternoon Easter Time. Depending on business news, market forecasts, world events, and a few other things thrown in between, can dictate how much volume a market can have in a day.

The last couple of paragraphs have mentioned all of the particulars of two major markets, the New York Stock Exchange(NYSE) and the lesser known American Stock Exchange. But there is a third one too! It is called NASDAQ.
Now what makes NASDAQ quite unique from the other two, is that this market is controlled by computers. Despite the technological advances of this stock market, NASDAQ still has the conventional bidding water of NYSE and American Stock Exchange. The buyers and sellers have their own areas to buy and sell stock, and bid through a quote system called Level II.

The great thing with stock trading, is that in order to be successful with trading stocks, you do not have to be in the pit, bidding like a madman on the hunt for their lives. Not at all! You can now use the very computer in your house, or go to a trading office if you live in a big city and trade stocks. Many different internet based brokerages are out there, and have plenty of materials to get you started on your way to becoming a great stocktrader!

PROFIT ON!

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How Risky is Stocks And Other Relative Investments?

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Just as the saying goes, we live in a risky world. Almost everything we do involves some degree of risk. Generally, to invest is to risk… since one is not certain about the outcome of the investment.
Stock Investing, Stock Investment, Stocks, Stock Market, Stock Trading, Penny Stocks, Buy Stocks, How To Pick Stocks, Bear Share,Share, Investment Risk, Risk Free, Business Risk,Investing Risk.
Just as the saying goes, we live in a risky world. Almost everything we do involves some degree of risk. Generally, to invest is to risk… since one is not certain about the outcome of the investment.

According to Wikipedia, investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it.

Today, many don’t like to hear the word investment merely because it involves risks. Apparently, to invest is to risk; but we should not because of the risk avoid investing.

It will be much better for one to learn how to manage risks associated with investment rather than avoiding investing totally. A good investor should learn how to manage the various risks associated with every investment. It will not be wise for one to avoid investing merely because of the risks associated with investment.

A potential investor should also know that the risks associated with every investment varies. For instance the risk associated with Stock Investment or Stock Trading is not the same with that associated with forex trading. Likewise, the risk associated with real estate investment also defers from the risk associated with transport business. Every business we do, no matter how small has its own risk.

What is the major fear an investor faces? The major fright investors face is the fear of losing money. Each time you give investment a second thought, the next thing that may come to your mind is that you may be losing your money.

Also, if the assets you invest in are held in another currency there is a risk that currency movements alone may affect the value. This is called currency risk. To venture is to risk and it is very difficult for one to do without risk in life, since every thing in life is all about risk… even life its self is quite very risky as well.

Finally, to invest is to risk, look for a good financial adviser before embarking on any investment, or read more on how to avoid some mistakes in the investments through the author’s links below:-

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Of Stocks, Stockholders And Stock Market

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A copper mining enterprise Stora Kopparberg first introduced the system of stock in the 13th century. The financial backers and owners felt the need to raise money for investment in the new projects of the same company so they started the method of stock and shares. It was also required in order to ward off the threat to the ownership rights if the company was sold, which would mean complete loss of control.

The investors got the monetary support they were looking for and…
stock,stock trading,mutual funds,dividends,
A copper mining enterprise Stora Kopparberg first introduced the system of stock in the 13th century. The financial backers and owners felt the need to raise money for investment in the new projects of the same company so they started the method of stock and shares. It was also required in order to ward off the threat to the ownership rights if the company was sold, which would mean complete loss of control.

The investors got the monetary support they were looking for and at the same time solved ownership issues in case the company was sold by granting stocks to the people. Plus, they sold a part to people and still retained control over the company. Thus, the owner had some portion of the assets, some power to make decision conditionally. In return, they shared a part of the profit with the stockowner as dividend.

Financially, stock implies the ownership or share in a corporation. It gives the stockowner the right to claim a share in the assets and income of the corporation. The two types of stocks, preferred and common differ in many respects. The common stock owners can vote at the shareholders’ meetings whereas the preferred stockowners cannot vote. Common stockowners get dividends declared by the company, whereas preferred stock owners have higher claim in assets and income of the company. Preferred stock entitles the owner to have his dividends earlier than the common stock owner. Preferred stock owner gets the priority when the company goes bankrupt. Besides these two, the other types of stock are dual class shares and treasury stock.

A stockowner is not liable to losses in case the company closes and has loans to pay back. The loss of the stockholders is limited to the money that would have been made by converting the assets into cash since all the money would be used to repay the loans to the creditors.

A stock exchange is the place where trading of shares is carried out. Individuals and companies sell and purchase shares on a large scale. Generally, a particular company trades only in one specific market and is said to be on the list of that particular stock exchange. However, big multinational companies can be listed on many stock exchanges. This is called inter-listed shares.

There are various methods to buy or sell finance stocks, but the commonest among them is through the mediator called stockbroker, who actually transfers the shares from one owner to another. Stocks can be bought directly from the company also.

The stock market of a country is an indicator of its economy, which just goes to show the growth and power of the stock market.

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How Profitable is Online Penny Stock Trading – By An Expert

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Did you know that Penny Stocks can go up percentage wise faster than any other type of share? Either with your own resource, or with the guidance of a specialist web site, turns cents into loads of dollars fast! For more info, read on?
online penny stocks, penny stocks, profitable investments
Copyright 2006 Geoff Morris

If you don’t want to risk vast sums of money on speculative stock market adventures, then Online Penny Stock Trading could be the solution you are looking for to provide quite profitable investments.

There are websites that pick penny stocks that are trading under $5.00 on both the NYSE, the NASDAQ, and other major Exchanges such as the London Stock Exchange. You have the chance to become a penny stock trading winner at any time. But the risks are very big and if you do take the advice, you could become a big winner in the penny shares market.

Simply looking at raw numerical data is not going to help you if you are new to the stock market. But you can get the advice that you need from almost any penny stocks trading website; these companies do not want to see you fail in the stock trading world. Instead they would rather see you succeed, so that they can then add another success story to their website and so they can continue to collect commissions on your trades.

There are hundreds of penny stocks trading websites available all over the Internet and you can sign up for any one of them. You get all the usual services that you would expect from a stock trading website. You get the portfolio management tools and the updated stock prices.

But some of these penny stocks trading websites will offer you the chance to sign-up to their weekly newsletter, which will contain which companies they believe will be the next big winner on the stock market.

One of the best that I have come across is the Red Hot Penny Share system, by Fleet Street Publications. Some years ago, I drew all of my various employment pensions ( which were sinking in value fast) and put them into a Self Invested Pension Plan (SIPP) , which is only available to UK taxpayers, although there may well be equivalents in the US.

By enjoying periods of very profitable online Penny Stocks Trading I actually managed to transform my $122,000 pension fund into an amount approaching $430,000 – and in less than 3 years.

The other major benefit of using the SIPP as an investment vehicle of course was that all the profitable investment returns were tax free – no capital gains tax due.

In this facility, you can actually act as you very own Pension Fund manager, only unlike the usual City Fat Cats, you have a real and determined desire to make your money work at its hardest for you.

As long as you are willing to subscribe to this sort of service, and when they say BUY you buy and when they say SELL you sell, you can make quite an improvement to what may probably be a pathetic little pension nest egg. And the further beauty is that with SIPP’s, you don’t have to cash it in at age 65 for some hit and miss annuity – you can continue to trade profitably until you are 75.

Take your time when you are looking for a penny stocks trading website. There are many websites that won’t actually offer as much services as other stock trading websites. So take your time and choose the site that best suits your needs as a trader.

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Online Stock Trading, Is It Here To Stay?

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Trading stocks on the internet is a relatively new thing for most people but it won’t be for long. The only reason that it is new in the first place is that the internet is new relatively speaking. In 1999 a little under 3 million people traded over the internet, now online stock trading has ballooned with more than 10 times that number of people trading daily.

So why have people begun to do this? Why is it so popular? Well there are several reasons and some are good and s…
online, stock, trading, stock trading, online stock trading
Trading stocks on the internet is a relatively new thing for most people but it won’t be for long. The only reason that it is new in the first place is that the internet is new relatively speaking. In 1999 a little under 3 million people traded over the internet, now online stock trading has ballooned with more than 10 times that number of people trading daily.

So why have people begun to do this? Why is it so popular? Well there are several reasons and some are good and some are not as sound when you think critically. The most popular reason cited for online stock trading is that they no longer have to forfeit some of their earnings to brokers in fees charged per trade. This doesn’t get them out of being charged fees per trade but it does cost a lot less to do it yourself with one of the dozens of day trading companies that there are available on the internet.

People are often trying to get away from brokers all together for more than just the fees they charged. Many people are fed up with brokers who did poorly in the recent downturn in the market. Their performances were sub par and people lost a lot of money so you can’t blame them. However the word of caution is to not lump all brokers into the overpaid and under skilled group. There are many brokers who are well worth their weight in gold because they know the market so well and have such good instincts-this shouldn’t be your only draw to online stock trading.

Other reasons people left their jobs to go into full time trading on the internet because they think that they can do better at it than at their real job and it will be more fun to boot. There is a certain romantic idea that people have about sitting in their beautiful home sipping gourmet coffee and checking in on their online stock trading portfolios a few times a day while making hundreds of thousands of dollars. This is a dangerous move for lots of people because they have no idea what they are getting into.

In order to be successful you have to have knowledge of the world economies and how that can be affected by the current events of the day. You also have to be good at evaluation of companies as far as potential for profit and so on. The third thing that you must have is nerves of steel and a loose grip on the money that you are trading with. Many day traders (or former thereof) will tell you of the “hits?they have taken totaling many thousands of dollars in a few hours for a wrong move.

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Buy To Cover Orders With Stock Trading

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If you have always wanted to know more about this topic, then get ready because we have all the information you can handle.

Within the buy to cover orders, there are four options in which to place against your stock purchases. When you buy to cover on a stock order, you are in agreement that you will buy the stock at the latest share price; however, because there is a lag between the time you approve to buy the stock and the actual transaction, a price difference may occur…
buy to cover orders, stock trading, stock market
If you have always wanted to know more about this topic, then get ready because we have all the information you can handle.

Within the buy to cover orders, there are four options in which to place against your stock purchases. When you buy to cover on a stock order, you are in agreement that you will buy the stock at the latest share price; however, because there is a lag between the time you approve to buy the stock and the actual transaction, a price difference may occur. You could end up paying more than anticipated for each stock, or a considerably lesser amount per stock, which is what you are eager for. You can also buy to cover limit orders, which guarantees that you pay no more than the set limit price. However, if stock prices hold above the limit buy price, this type of buy to cover order will never be executed.

This type of transaction is mainly used by investors who want to get into a certain market. You may also want to buy, to cover stop orders in which case the stop orders become simple stock orders as soon as the value is at or above the stop price. This type of order is used to get you out of an unfavourable stock so that you will not have lost any profits. And, finally, you may want to buy to cover a limit order that converts to limit order only when the share value is at or above the stop price. You have to know each of the buy to cover orders so that you can make educated decisions about your investments.

From one decision period to the next in the stock market game, the markets can move up and down non-stop, which means that prices of shares are at a frequent changing point. You may think about purchasing a certain stock that is at $5 per share, and in the next day, the value per share has risen to $15 per share.

This is where the betting of the stock market comes into play. By erudition the advantages of the buy to cover orders, you can multiply your odds of earning money on the stock exchange rather than of losing money. The most obvious benefit to the entire buy to cover options is that they are in place to make you money, when executed properly. For example, you would not perform a stop loss on a stock that has steadily increased over a 5 month period. If you did this, you would force yourself to squander money to buy the stock in order to cover your mistake. You choose to buy 175 shares of stocks from Albertson’s, a grocery store chain, at $75 each, for an entire investment of $13,125. Over a four month period, you observe that the stocks have gained in profit, and you would like to do something to guarantee that you keep this earned profit. Not knowing better, you put a stop loss of $45 per stock without consulting with your stockbroker. From that position forward, if your stock decreases to $45 per stock, you have to sell it, and any earlier earned profit is null and void. The only chance you have in getting back that profit is if you are swift enough in the non-stop stock market game, to buy the Albertson’s stocks before somebody else does. However, even if you are able to do this, you have still suffered a great loss monetarily.

Educate yourself in the stock market game.

As with any game, there is some form of jeopardy involved, however, when you play the stock market game, you can avert a great deal of distress by simply taking the time to acquire knowledge about all types of orders you are able to place on your stocks. If you require help educating yourself about the types of orders to place on your stocks, you should consult your stockbroker in order to take professional advice before taking matters into your own hands, inevitably forcing yourself to lose some of your invested money’s profit. Thus, it is absurd to invest your hard earned money into any program before you know all the data necessary to make a well-informed, educated judgment.

If you could take the main ideas from this article and put them into a list, you would a great overview of what we have learned.

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Before you start stock trading: first think if it is worth your time and money.

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Today people are bombarded with lucrative offers from various trading companies offering $10, $7 or even $4 per stock trade. It looks very tempting to sign up and start trading since the terms are much better than it was before the Internet trading was possible.
That was the good news. The bad news is that those companies are selling you the tools and service only. They do not sell you any guarantees of success. It does not matter if you profit or lose money, the trading company will get its fee for each trade anyway.

Since you are considering going into the stock market, most likely you are planning to get a significant return on your investment which should also be better than what you would get buy investing your money into mutual funds (less risky than single stocks) or even no-risk certificate of deposits (CDs) where returns are guaranteed.

Well, how can you get such returns? The answer of course is simple and well known: buy low, sell high. If you do it most of the time you’ll be a successful stock trader. Now the first problem comes: how do you know when to buy? There are probably several ways to do that, we do not discuss this here, let assume that you know somehow or think you do know. Lets say you got lucky and the stock after you bought it is going up, just as you planned.

Now another problem comes: when to sell? After the stock is up 20%, what do you do? Sell now, or wait until it is up 50%, 100% or 200%? Do you listen to investor news and do what everybody else does: selling, buying more, or continue holding the stock? If you choose one of the first two options, how much of the stock you should buy or sell? Or if you hold the stock, are you sure it will continue to go up, or you may end up waiting until the stock price is back to the original and than lose it value resulting in your losses.

The truth is some people actually do know the answers to those questions most of the time and actually make profit. The question is, are you as good as those people? Most people are losing money guessing and trying to time the market. If youe new in this game and not planning to spend much time on research, chances are you will lose. You will be competing with professional traders, big players and insiders who profit mostly because many others keep losing. Plus what are the chances that you can predict the market? The chances are very slim.

Some may argue: “I had that stock, I sold it when it was up 20%, but if I did not sell it at that time, now it would be up 300%. How stupid I was when I sold it, if I did not I’d made a lot of money. I have to do this again. It really proves that I can make a lot of money there and it easy!?That is right you can make a lot of money, but it is not that easy as it looks. Lets assume you did not sell the stock at the time it was up 20%. Then what makes you think you would wait until it is up 300%? You may have sold it when it was up only 25%. Or it may go down several times below 20% increase, you could have thought it was going down forever and sold it even with a lower than 20% profit.

The bottom line is that it is easy to look at the past and see all the mistakes you’ve made. However it is very difficult to do right things for the future. Unless you know market trends well, understand related industries and stock company financials, most likely you will not be able to make profitable trades. Even professional traders do mistakes and lose money. If you are not one of them or not planning to become one, your best bet would be investing into CDs, mutual funds or your own business.

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Greed And Fear

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Greed and fear is what makes the markets move.
stock trading,stock investing,stock market,stocks,trading,investing
Greed and fear are the major players in the stock market. These two emotions are the
driving force behind almost all market participants – Institutional mangers, stockbrokers,
Investors, traders and yourself.

You might be saying to yourself that greed and fear will never get in the way of my trading,
but believe it or not they will be. It is not something to be ashamed of. It is something you
have to admit to, come face to face with, If you are to become a successful stock trader or
investor.

What do greed and fear look like in the stock market trading arena?

You have been watching a particular stock for some time now. It has set up perfectly, so you pull the trigger. You bought it at the perfect price and now it is moving higher just as you thought it would.

Now greed steps up to the plate and says to you, this is going to be a rocket ship. So you buy some more shares. Or your stock moves a few points and goes passed the price that you decided to get out. Greed tells you this baby is going higher tomorrow so you hang on.

When stocks make strong moves to the upside greed from all the cumulative market participants joins the move.

Stock prices usually fall faster then they go up, and when this happens, fear now steps up to the plate.

Lets look at the example above, where your stock went through your get out price and you held on because greed was by your side. The next morning the stock price gaps down. Their is heavy selling all morning long. Greed is telling you to hang in there the price will come back. The price keeps going down, now you get a knot in your gut, and your knuckles are turning white. Fear is now by your side, but by now it is to late, your nice profit has turned into a loss.

Everyone goes through this until they have mastered the ugly faces of greed and fear. Master this and you are well on your way to becoming a successful stock trader.

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