| If you are serious about succeeding at online | | | | the same people who were averaging down will |
| stock trading and by succeeding I mean making | | | | load up on it or value investors will step in and say |
| tons and tons of money then this may be the | | | | the stock is cheap, it's time to buy. Also at this |
| most important article you read today. | | | | time, those who shorted the stock may cover |
| Here's why: there's a little-known but extremely | | | | their short and take their profits. |
| accurate stock market investment technique that | | | | All of these types of investor behaviors often |
| actually eliminates the guesswork and uncertainty | | | | work together to keep a stock channeling back |
| that accompanies online stock trading by telling | | | | and forth in price. However, channels don't last |
| exact stocks to buy, at what price you should | | | | forever. Eventually a channel will be broken and |
| buy them, and the exact price you should sell | | | | probably a new one will be formed. |
| these stocks to ensure that you make a profit | | | | But until that happens, a channel can last for |
| off of each and every trade that you make. | | | | years and provide an investor with tremendous |
| What's this technique called? It's called stock | | | | profits in the meantime. The key is finding stocks |
| channeling and it may quite simply be one of the | | | | that are channeling so that you can invest in them |
| best ways to be truly successful at online stock | | | | and profit from them over and over again. Here is |
| trading. | | | | an example trade that shows the profit potential |
| Here's how stock channeling works: When a stock | | | | of investing in channeling stocks: |
| repeatedly moves up and down in waves | | | | Let's say that an investor knows the stock of |
| between two parallel lines it is said to be a | | | | ABC Company is currently channeling so he buys |
| channeling stock. The upper trend line, or high | | | | 100 shares at the low price of $15 and then sells |
| price point, acts as resistance, and the lower | | | | it at the high price of $18. Then this investor |
| trend line, or low price point, acts as support. The | | | | waits for the price to go back down to $15, |
| area between the two trend lines is the channel. | | | | where he buys it again and then he sells it again |
| So all an investor has to do is buy a channeling | | | | at $18. He does this two more times and in no |
| stock when its price is near the bottom of the | | | | time he's made a nice little profit of $1,200! |
| channel and sell it when its price rises to near the | | | | I'm sure I don't have to tell you that greed and |
| top of the channel. And since channeling stocks | | | | fear are two of an investor's worst enemies and |
| repeat their movements, investors can buy and | | | | to be truly successful in the stock market you |
| sell and profit from a stock over and over again. | | | | need to be able to keep your emotions out of it. |
| So why is stock channeling such a reliable | | | | Stock Channeling helps investors profit from the |
| investment technique? Because it relies on the | | | | stock market by giving them strict buy and sell |
| market's natural tendency to trend. You see, | | | | signals to follow for specific stocks that are |
| when a stock starts to go up in price, some | | | | channeling. |
| investors will always say that the stock price has | | | | Stock channeling is by far one of the best ways |
| gotten too high and they will sell their shares and | | | | to consistently profit from the stock market |
| take their profits. At the same time, other | | | | regardless of what kind of condition the market is |
| investors will also be inclined to say a stock is too | | | | in. It is the only investment strategy in existence |
| high and they will decide to short the stock. | | | | that provides a clear and concise road map to |
| Then when a stock starts to go down, some | | | | exact stocks that you can profit from over and |
| investors will decide to start adding to their | | | | over again. |
| position and if it really goes down in price either | | | | |