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