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