Make Money Trading Online

Archive for February 9th, 2010

There are a couple of cardinal successful stock market trading rules that I am sure you are quite familiar with by now.

The first of the two most common stock market trading rules are to cut your losses short. The second of the two most common successful stock market trading rules are to let your profits run. However, you can take it one-step further by fine-tuning your trailing stop losses, and becoming more risk seeking once your stock is in profit. Increasing your risks, at the right time, can allow you to get all the profit you possibly can out of your system. You may wish to test the effects of these successful stock market trading rules by having a wider trailing stop loss than your initial stop, and see how this is reflected in your system. For example, you could set your initial stop loss at two ATR but set your trailing stop loss as three ATR. This allows the stock, once it`s in profit, a little bit more room to move. You`re still limiting your risk at the beginning of the trade by keeping a tight stop loss; however you`re going to become risk seeking in a profitable situation. That is to say you`ll be willing to risk more once you`re already in profit.

Personally, I think this is one of the many successful stock market trading rules you can use to take it a step further than most people are willing to go. With this strategy, I also mix and match my stop loss methods. For example, in one of my stock market trading rules, I set my initial stop loss at 2.5 ATR, but my trailing stop loss is measured using a completely different method. I use what`s known as the lowest low stop. The way this stop loss works is you find the lowest low in the last X number of periods, and base your trailing stop loss on it.

Now, for that trend following system, I actually find the lowest low in the last 40 days. I then position my stop one cent below this low. It`s almost as though it`s consulting the price action itself by identifying where the lowest low is, and this can be highly effective. Many times my stop has been set one cent below a support line. The way this trailing stop loss works is that on each day a new trading day is added to the chart, and one of the old days drop off. I then find the lowest low in the last 40 days, and reposition my stop at that point, if it needs to be repositioned. This stop has been extremely valuable for me, and it may be a stop loss that you may want to consider testing.

But, before you go looking for that perfect trailing stop loss, realize that in it`s own way, it`s very similar to the initial stop. There is no perfect stop that will guarantee to get you out of the stock at the perfect time, and save you the most profit. Sometimes it will work for you. Other times it won`t. The real key and secret of having a stop loss and an initial stop do their best for you is not how you calculate it, it`s just having them in place.

You need to find an initial and a trailing stop loss that you`re comfortable with. You also need to understand how they work so that the actions they direct you to take makes sense to you. How do you find a stop that you`re comfortable with? Test them. Pick out a whole lot of charts of stocks that you`ve been looking to trade, and marking where you would receive an entry signal, set various initial stops and trailing stop losses. Progress through the trade, revaluing your trailing stop loss and see which one works the best.

Oftentimes successful stock market trading rules are designed with simple concepts that works best at this point. When you base your system on understanding, rather than optimization, you are more likely to stick with it. If you can come up with a good, straightforward set of your own stock market trading rules, you will be able to apply it across a number of markets on most trading instruments. Really, when designing any system around a set of stock market trading rules, all components should apply to this same principle. You want to keep things as simple as possible, that way it`s robust and can be applied to any market. As long as you follow this underlying principle, you`ll be on the right track.

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When you are attempting to rank a site, there are several levels to go through. First, when you have some content, you need to get the thing indexed and build up some initial links using social book marking and RSS submissions. You then move into leveraged link acquisition. I think Web 2.0 is the thing that you logically pursue probably shortly after that leveraged stuff. I wouldn’t call it level three, maybe level two and a half.

There is a level three, but there is no panacea for level three. Level three is just finding good quality places to get links back from. That’s when you or someone you’re paying is going out there and finding links manually, building rank links from high quality sites.

For me personally it really doesn’t make a lot of sense. From a time perspective, I know there are companies out there that do it. I would much prefer to own my own assets and build them up over time and then point those assets at my own sites. The fundamental of business strategy is the word control. You need to be able to control your destiny and be able to influence things. To the degree that you are reliant on getting links from those other sources, in some way you have less control.

Consequently you should be trying to build up your own assets so that you can influence the results and get the results that you want. Level three is, what I tell people, is going to be manually getting links from people. Level four is really moving to the next level moving to build up your own assets. Level four would include building your own network.

There is no level five. I mean you becoming the platform that people are getting links from. You, being the next Wikipedia or something like that, you being the next Web 2.0 site, potentially.

There are a number of different strategies you use going from the initial, let’s get it indexed to some leveraged methods and then also we use Web 2.0 and the next level up, going out searching for those really good quality links through some sort of content exchange or providing articles to have published. The next level obviously, level four is building the network and really owning those links. For what it is that we do, there’s quite a bit of work there. Some of it we outsource and some we keep in house. We have our network of blog sites. In all honesty we don’t use them for ourselves. It’s our testing bed, our laboratory so that we can test strategies just for the development of our own SEO techniques and product. We know that whatever we’re doing is working, or when we hear of something, we can test that it works. The reality is that for our own business, we do very little SEO. It’s the cobbler’s son with no shoes sort of thing. It’s quite funny.

For us we do very little of that. What it boils down to is a discussion between SEO and business. I think the basic question to ask is, most people are asking what is the minimum I can do to get the biggest impact in my life, and while it’s a good question to ask from a technical perspective, it’s a bad mentality to have. It’s a much better mindset to say, how can I serve the maximum amount of people? What we say is, making content should be part of every single business regardless of what your strategy is. Creating content, having conversation, creating fantastic value, serving as many people as you can through the value that you’re delivering through blog posts, through videos, through audios, through whatever form it takes, through software, put as much value out there as possible.

Now you’re going to put that content out there anyway. So why not put that content out there in the most leveraged optimized way possible? If you just put that content out on your own website and you don’t link to it and no one ever finds it, you’re not creating value for people. Value is attained when people see the stuff that you’re putting out there. Observe at everything you do and make sure if you’re going to do the work once, with a little bit of extra work you can receive a hundred times the reward, particularly if you’re disciplined about doing it with every single piece of content that you put out there.

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The aim of the game when starting an online campaign is how many pages you can create rather than really sculpting these pages. When you create a page, you’re creating a page rank out of nothing. A brand new page with no links to it has some PR value in it, and it is between zero and one, there is some value there however minor. The best way to think about page rank is looking at it as continually evolving. The more constant you can provide content for your site, the better PR it will have. Even when Matt Cutts joined the internet marketing scene, he said it was very different to what the published patented algorithm among search engines was some time ago.

But aside from that, the original idea for page ranking was measuring the likelihood that a random guy surfing the web would land on your web page. So if you had more content out there, it does makes sense if you link it well and you have external links to those pages, you have a higher probability of stumbling on the page if there are more pages out there. Proper SEO techniques are important here.

Obviously if there are more keywords out there you can potentially rank for as well. Once we start to create some of these pages and we’re testing it, we do a little bit of on page stuff and then start on our off page campaign.

The primary challenge when you have some content is to get the thing indexed and build up some initial links to that content so that content gets discovered ideally with those keywords in the links linking to your web page. That makes a difference. So the first thing is using social book marking, RSS submission whether or not you do it manually. We use Traffic Bug.

That is basically to build that first set of links. Each of those links is relatively low value. At that stage of the process, it’s about getting indexed, getting relevant links for a bunch of low competition pages. Now that might be enough to see some good rankings based on those initial set of low ranking links that you’re building into your content. But that is certainly where I would start, because it’s so easy and it has become part of our publishing process and that’s why we’ve built it into our product Market Samurai.

After you’ve finished your blog, you just click a button and use the keyword and write some description about what your content’s about and you’ve got a couple of hundred links being built over time from social book marks and site directories and RSS submissions. It’s quite low value but it’s enough to kick start the process.

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