One illuminating investment discussion about stock trading for dummy is given by MaoXian, a renowned guru in the industry. The best techniques on how to trade are discussed in his article titled ‘Trading for Dummies.’

The series of discussion given by MaoXian is simple and could be easily understood even by amateurs in investing. Though there are several styles in trading and it’s not advisable to advocate one style for the reason that an investor should stick to a style that personally fits him, it is still good to consider other styles to bolster trading potentials.

Trading could be complicated. But trading could also be simple. The demarcation lies on the knowledge and expertise of the investor. Only a small percentage could be attributed to luck. MaoXian epitomizes several traits of the best traders. Throughout his site, he has discussed many of the concepts about stock trading for dummy.

Noteworthy is MaoXian very simple approach. Price, volume and a moving average of price are the indicators that serve his magic formula. As the aphorism goes, less is more. Anyway, all other indicators are just derivatives of price and volume.

Other techniques employed by MaoXian include following the trend, trading active, liquid stocks; entering protective stop loss order; using Japanese Candlestick charts; as well as defining and managing risks.

This entry was posted on Wednesday, April 18th, 2007 at 2:43 am and is filed under Stock Investing Basics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.