Trading Baskets Part I.

What's a basket? A basket is a bunch of up to 50 stocks that you can trade, manage and track as one entity. See : "A Triple Dipper : a way to Make three Profits on one Stock" at day trading course . This time let's rap a little about trading "baskets". The definition above perhaps must be expanded just a little. A basket of stocks is nothing else then any group of stocks that somebody has grouped together for any of a number of reasons. An example of some baskets could look like what's sited below. To avoid wasting time and space I will use the stock symbols only. Shall we say you see stem cell research as the thing of the future and needed to be invested in it.

In your Net basket you may need to pick up some shares of EBAY, YHOO and AMZN. Obviously your basket can contain any quantity of stocks you need. I am not suggesting these stocks in any way, shape or form, but simply using them as examples. The examples above would approximately be the sort of baskets you would probably be thinking about holding for a period of time and not day trading. A trader could have any quantity of stocks in his trading basket that she or he has been become really acquainted with. You learn fast there or you go broke in a rush. As you can see I was able to hold my personal for some years till I found the secret and began to become a successful trader .

The public appears think that exchange members know everything and always made cash. Many traders were inaccurate more than half of the time. 00 you lost you may show a pleasant large profit. It's a crisis for the little financier today that fund families are putting in selling limitations to deter stockholders from dumping funds that are heading down. When I was trading I had a basket of roughly 75 stocks. Some I knew were only going to be in play on stories or when reporting earnings.

You've got to decide yourself what ! stocks y ou would add to you your basket based primarily on your own information gained thru experience and research on each stock. Having your own basket of stocks will lower your exposure to risk. They may not move any better under slow market conditions, but at least you'll have some understanding of how they move.