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Momentum Trading Tips

We are recieving an ever increasing amount of mail from members who are new to online trading. So we thought we would lay out some general rules and guidelines to help you to avoid some costly mistakes.

There are many websites that are releasing Stock of the Week picks, including our own website... As a new investor, keep in mind that these so called Stock of the Week picks will almost certainly have an artificial rise in price soon after their publication, and then come back down from their intra-day high as the momentum fades and profit taking begins. These Stock of the week picks are the most popular type of quick investing on the internet today, but are profitable only to those who buy the stock of the week before it is released, and to those who are fast enough to buy it on the way up. There is a very good chance that you will get caught buying at a higher price than you wanted and then being stuck with a stock that is losing value quickly. We suggest that you always use limit buy orders on these type of trades, so that you know exactly what price you will get on the trade!

We will add to this page as issues arise, Please also see the Momentum Guidelines Page for more ways to avoid pitfalls and S.E.C. tips for daytrading and avoiding fraudulent investing scams.