Posts Tagged ‘Investing’
About online trading
Advances in technology have brought a major impact on many sectors, ranging from education, business, and how to interact with others. Technological developments, especially the Internet has changed the way many lives. we can pay some bills online, shop online, bank online and even on to online dating.
As with any online store, with advances in Internet technology, we can sell and buy stocks online, the ability to see the account at any time in want. Many companies that offer online trading.
One thing about the online trasing, it usually costs and commissions are often lower, meanwhile, online trading is very nice and of course also has some drawbacks. If you are one of those people who are new to investing you should be more careful. consult with the experts, because if you do not stock market savvy, online trading may be a dangerous thing for you. If this happens, make sure that you learn as much as possible about trading stocks before you start trading online.
If you are a broker and does not have a computer with Internet access attached. Means you will not always have the ability to get online to trade. You must be sure that you can call and speak with a broker if this happens, use an online broker. This applies whether you are a merchant who has long or beginner.
This is an idea for you to go on an online brokerage company that has good credibility. Online trading is a wonderful thing – but not for everyone. Think carefully before you decide to trade online, and make sure that you really know what you are doing!
Let profits run
This simple rule is the key to being a successful trader. It is three simple words that are very hard to actually implement. When we get a profitable trade our natural fear of losing the unrealized cash kicks in and we truly want to close it out now and take the money. Most trading consists of long periods of small winners and losers followed by a few huge winners that make the difference between overall profitability and simply breaking even or losing due to trading costs(commissions, spread, and slippage).
It is our ability to let the huge winners become just that – huge – that determines how we will perform overall during the year. The key to letting winners run is to have trailing stops that are outside the daily noise of the market so that they are not tight enough to get stopped out during ‘normal’ trading. This means being prepared to give up a significant portion of a winning trade’s open profit and is the thing that makes this so hard to implement. In fact, we should be adding to a winner and widening stops rather than working out how tight our stops can be to capture maximum profit. The trade has already shown you that it intends to be a winner, and the chances are it is a low-risk idea to add to the position now rather than ‘strangle it’ with stops that are too tight.
It is very important that your position management rules allow for large winning trades, and that the rules are pre-defined and understood before you place the trade. This will allow you (if you have confidence in your method and discipline) to stick to your rules when you do get the big winner.
This is the sister rule to the previous one, and is usually just as difficult to implement (although it is very easy to define). In the same way that profitability comes from a few large winning trades, capital preservation comes from avoiding the few large losers that the market will toss your way each year. Setting a maximum loss point before you enter the trade so you know before-hand approximately how much you are risking on this particular position is relatively straightforward. You simply need to have a exit price that says to you ‘this trade is a loser and I will exit before it gets any bigger’. Due to gaps at the open, or limit moves in futures we can never be 100%
certain that we can get out with our maximum loss, but simply having the rules, and always sticking to it will save us from the nasty trades that just keep on going and going against our position until we have lost more than many winning trades can make back.
If you have a losing position that is at you maximum loss point, just get out. Do not hope that it will turn around. Given that trades are either winners or losers, and this one is shouting ‘Loser’ at you, the chances that it will turn around and become a large winner is tiny. Why risk any more money on this losing trade, when you could simply close it out (accept the loss) and move on. This will leave you in a much better place financially and mentally, than holding the position and hoping it will go back your way. Even if it did do this, the mental energy and negative feelings from holding the losing position are not worth it. Always stick to your rules and exit a position if it hits your stop point.
The Golden Rules of Trading
The following sections outline a set of rules that can significantly improve your chances of success if they are understood, practiced, and implemented consistently in your trading. These rules have been learned the hard way, by study, research, trial-and-error, and the inevitable mistakes that everyone makes when they start a trading business.
We hope that you can learn from the work we have done, and benefit from our experience.
Have specific goals and objectives
Few things are more important to your trading success than having set (i.e. written) goals and objective for what you are aiming to achieve. It is amazing to me how often we hit our targets, meet our objectives, and reach our goals only when we articulate them and write them down.
For any business to be successful it must have measurable objectives that are actually achievable. In trading (obviously) the primary objective is to make money, but it is important to have other objectives that are not purely cash-related. We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs).
Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:
o Be measurable (in completion and timeframe)
o Be achievable
o Be worthwhile
o Be positive
As an example, here are some of our current objectives (this is only a partial list):
o Develop 2 new positive-expectancy trading systems each year
o Make fewer errors implementing our trading systems each year
o Achieve a return to maximum draw-down ratio of 1.5:1
o Take 2 weeks vacation each year
Note that only one of them is about making money, and that has a measurable objective that is relative to draw-down, not absolute (i.e. make 100% per year). If you know what you are trying to achieve, and when you are trying to achieve it, the whole business will be focused on meeting
your objectives and help guide you to only pay attention to things you really want to achieve with your limited time and resources. This will also give you a way to measure the success and progress of your trading. Generally traders with well-defined objectives will be much more successful than those that do not have pre-defined goals.
In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do. This takes extreme confidence in your trading systems, good robust reliable technology, and the mental discipline to stick to your trading plan whatever happens (assuming it is complete).
An underlying assumption about being consistent and disciplined is that you have a pre-defined plan for every situation you may face in your trading, so that you know how you are defining what being consistent is. Your plan needs to include at least the following items:
o All your trading rules for entering, adding to, and exiting positions
o What you will do if your trading computer, internet connection, broker, power, telephone
o What you will do if you are unable to trade
o What you will do if you lose X% of your account
o What you will do if all the markets are closed and you can’t exit your positions
Unless you write the answers down to all these issues, you cannot be consistent and disciplined in your approach to trading and if you lose money you will not know whether it is because you didn’t follow your plan, because your plan is incomplete, because your systems do not work, or simply because you are going through a losing period.
If you want to invest in the foreign exchange market with an interest rate of 10% or more per month, so from the beginning of 2007, a Web site offers this option, Finance Forex is 300% per year, immediately solve doubt and right. “However, what I doubt is 2% per year, which is what all banks offer their members savings accounts, you do not? Why we’re used to being out of us, we think hard as iron, that’s impossible, but I have personally experienced? For information about the company, I suggest a visit from his place this address Forex Finance and communicate their experiences and not theories or opinions that are not based on facts and experiences as their own way of thinking was conditioned by the school must live in fear of the new and the slavery of a job. See this page which is the Forex for more information.
Obviously, all kinds of projects make their appearance to try to tap more people, and this attitude is simply the consequence of our education that teaches to be wanting to destroy the middle of the competition. This competition that destroys relationships, then that is something different, again, is to destroy it to better control or dominate our neighbors and satisfy purely selfish desires. Contrary to the competition is cooperation, whether living together and not separate. So companies that understand the importance of relationships, network marketing can bring better things to all systems of teachings on this planet. Do you think it will destroy a person working with you and that gives them a better quality of life?
I placed $ 500 in this new investment tool is Finanzas Forex and thus have personal facts and not opinions useless people want to make without asking a small question: What is my intention to want to say my opinion? “Feeling better than the other? “To be right? “Invent something to look important? “To justify my lack of accomplishment and the other to try to lower my level of unconsciousness? Intelligence is not the accumulation of knowledge and qualifications, is the size of our consciousness through personal experience. 99% of people think like employees or slaves, then use their money to spend and not to invest. Debts are horrible and say their opinion on what the investment on the strength and attitude, but even more ignorant one who listens to this kind of person. They often “know many things”, this knowledge is an encyclopedia of words on the Internet costs nothing, but to act and create something to change your life, then there is the immobility of the people by fear.