For the last few weeks, I have been focusing on learning how to trade stocks. And, I have found some outstanding resources that I want to share with you. One of the best is Stockbee, which I wrote about last time.
I think that one of the hardest things about learning to trade successfully is knowing where to get information. There is too much information available in books, newspapers and the internet. 99% of it is useless noise. I look for information that is clear, easy to understand, and also actionable.
One interesting site I found is the Kirk Report. After reading about Charles’ struggle to learn to trade, I was really interested in what he had learned. I read about his story, and I like how his goal is to help other people learn to trade. I haven’t yet signed up for his service, but if any subscribers have any comments please share them.
For those of you who are not members, there is plenty of free information available as well. It is listed as “free reports”.
Another new favorite of mine is the Patient Fisherman. Why the Patent Fisherman? Because Dan, the author, likens trading stocks to fishing. You have to go to the right fishing hole. You have to get the right bait. You learn how to fish by watching expert fisherman. You have to wait until the right moment.
I think this fishing paradigm is a powerful tool that we can use to become a better trader. Most people approach trading using their instincts and their emotions. It’s like fighting with a lion using a club. I guess you have a small chance of winning, but that chance is pretty small. 90% of investors lose money, and the number 1 reason is that they are using their emotions to make trading decisions.
The Patient Fisherman’s trading paradigm solves this problem. Another interesting thing about the site is that Dan works closely with Pradeep (from Stockbee). Dan has extended some of the Stockbee approaches and created tools to find the stocks that they believe make good trading opportunities.
Like the Kirk Report, the Patient Fisherman is a paid membership site. However, there is a ton of free information available as well. Just browse blog and the “Popular Articles” to find it.
One site that I found last week which was particularly fascinating is My Simple Quant. I found the author’s openness and attitude both refreshing and inspiring. He writes,
I am here to show that it does not take an advanced degree from MIT, a supercomputer and years of programming experience to be a “quant”. I believe that the strategies I implement are not overly complicated and most people can apply them with a little work.
I feel quite similar about the technology required to be a successful trader or “quant”. Wall Street wants the public to think that you need to have a huge sum of money or be a genius to succeed in the markets. I think that nothing could be farther from the truth. I think it is possible for anyone to succeed, and learning from people like Chris is a great way to do it.
The objective of the study is to answer the following question: “What makes a stock go up 200% + in a year?”
So, the whole blog is analyzing a few stocks that went up 200% in a year. I think that is a worthwhile study. It is a refreshing change from the endless “news” about unemployment and the day’s market index changes. Like the other sources in this post, the author freely shares everything that he uncovers, so that we can learn and profit as well.
Finally, the last and perhaps most entertaining site that I want to share with you is the Chartgame. The site allows you to trade through the history of a stock, to see if you would have made or lost money. Think that you have mastered technical analysis? Now you can find out. Want to have some fun without risking any money? Here’s a great way to do it.
Well, that’s the cool sites I have found in the last week or two about stock trading. Hope you enjoy them!