In this day and age of online brokers for virtually every market out there, there are some very useful tools that will help protect your account and lock in profits if you have them you. It is our recommendation that you use a good online broker and take advantage of not only the low commissions they offer, but also the automated tools that are available. These tools are almost idiot proof if you use them. The number one reason that the accounts of people go belly up in the markets because they lack the discipline to stick with their business plans and let emotions drive their trading decisions. This approach is a guaranteed way to lose in the markets. Oh, you might get lucky occasionally, but eventually the market will take your money. Let's discuss some of the trading tools we are talking about.
Stop Loss - Also called a "stop", this is the price at which your position is automatically closed. If you buy IBM at $ 50 per share, and then enter $ 45 as your stop level, then your position will be sold when the price hits $ 45. So this allows you to protect a great loss your account. Keep in mind, however, that this stop level only "triggers" closing the position and is no guarantee you'll get off at that price. A rapid decline could mean that your order is executed at $ 42 instead of $ 45 because of market volatility - but this would be an extreme case. Even if you wear at night and IBM's position opened at $ 40, then the price would be sold. Keep in mind that if you "shorted" IBM had $ 50, then your stop would be placed above the $ 50 to protect your account. When the stop is activated on a short position, you would buy to cover the position.
Buy Stop - The above description refers to a "sell stop", but there are also "buy stops" that can be very helpful. These are used to specify the position at some point. Suppose you use a trading system requires that you buy from a stock breaks above a certain price level. Let's say you wait for IBM to break out of a channel and to do that, it should reach $ 51. In this case, you only have a buy stop at $ 51 for the number of shares you wish and the system of your online broker will buy that for you automatically when IBM gets $ 51. The only thing you should do and check back occasionally to see if the order is filled.
These two instruments, to stop the sale and purchase stop are invaluable for traders - especially those just starting out. Make this a habit from day one in your trading - ALWAYS place a stop loss filled immediately after getting an order. Obey this rule and the market will never hurt very badly - you'll have a hard sting every now and then, but you'll stay alive to come back another day!
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate a new idea stock trading visit his website, Online Stock Trading Reviews
Thursday 15 May 2014
Wednesday 30 April 2014
Success Trading - More Basic Terminology For New Traders
An important aspect of trading in the markets is to understand how to feel. It is generally wrist At the fair, this is measured by measuring the movements of selected stocks to let you know how the market is doing in general in various sectors. A man by the name of Dow came up with this concept and we still use his Dow Index for measuring the pulse of the market today. There are also a number of others out there, but another popular index of mostly technical reserves, the NASDAQ.
Bull Market - This describes a market where the overall market is rising. Typically, this is measured by the Nasdaq and the Dow Indexes. Experts recommend that you buy only during Bull Markets because the odds are more in your favor - this is true, but keep in mind there are plenty of shares plummet during Bull Markets also.
Bear Market - This describes a market where the overall market declines. As with Bull Markets, again we measure this by the Nasdaq and the Dow Indexes. Experts recommend that you use only short during Bear Markets because the odds are more in your favor - this is true, but keep in mind there are plenty of stocks that rise during Bear Markets also.
The main thing about using indexes to help your trading has been mentioned before. During Bull Markets, you can expect that 65% or more of all shares to rise - so if you're looking to buy during Bull Markets, the odds are very much in your favor. Of course, the opposite is true with Bear Markets. Another feature of these two markets is that Bull markets generally last 2-3 years, while Bear Markets last only 1-1 ½ years. So it's a very good idea for new traders to get into the habit indexes after the beginning of their learning. This gives give you a huge advantage.
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate a new idea stock trading visit his website, Online Stock Trading Reviews
Bull Market - This describes a market where the overall market is rising. Typically, this is measured by the Nasdaq and the Dow Indexes. Experts recommend that you buy only during Bull Markets because the odds are more in your favor - this is true, but keep in mind there are plenty of shares plummet during Bull Markets also.
Bear Market - This describes a market where the overall market declines. As with Bull Markets, again we measure this by the Nasdaq and the Dow Indexes. Experts recommend that you use only short during Bear Markets because the odds are more in your favor - this is true, but keep in mind there are plenty of stocks that rise during Bear Markets also.
The main thing about using indexes to help your trading has been mentioned before. During Bull Markets, you can expect that 65% or more of all shares to rise - so if you're looking to buy during Bull Markets, the odds are very much in your favor. Of course, the opposite is true with Bear Markets. Another feature of these two markets is that Bull markets generally last 2-3 years, while Bear Markets last only 1-1 ½ years. So it's a very good idea for new traders to get into the habit indexes after the beginning of their learning. This gives give you a huge advantage.
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate a new idea stock trading visit his website, Online Stock Trading Reviews
Tuesday 15 April 2014
Success Trading - Some Basic Terminology For New Traders
The world of trading can be very complex because the financial markets are complex. There are thousands and thousands of successful traders out there today. The amazing thing is that they all have their own niches carved and approach the market in a unique way. This would be great news for novice traders, because it shows that there are thousands and thousands of different ways to get a good in the markets. It's just a matter of discipline and find the approach that suits your style and personality. With all that being said, new traders start somewhere, so let's look at some basic concepts and approaches to the markets.
Going Long - This means that you bet on the instrument (stock, future, option, etc) to go up and you want to buy. You buy the financial instrument, watch rise and then sell it for a profit. Profits are realized when you buy low and sell high. It is also known as taking a long position.
Going Short - This means that you are betting on the instrument to go down and you want to sell or take a "short position". A short position is performed by buying those shares or "that" closed your position. This concept is very confusing for new traders because you have something that you do not even have to sell yourself. The thing is that you're still trying to buy low and sell high, you're just selling high and buying low first later. Think of it this way - you go to a car dealer and buy a new car, it charges you $ 20k and then looks to buy it for a lower price. This dealer has a "short position" on the transaction between you and taken him. We do not recommend new traders to take short positions until they know more about the market.
One thing to keep short and long positions in mind is that they are totally different in nature. There are far more traders out there to take over those short long positions. Human nature tells us that we buy with the expectation of rising prices. The concept of wanting prices fall is against human nature and short positions may be more erratic due.
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate, visit his website, Stock Trading Reviews a new stock trading idea
Going Long - This means that you bet on the instrument (stock, future, option, etc) to go up and you want to buy. You buy the financial instrument, watch rise and then sell it for a profit. Profits are realized when you buy low and sell high. It is also known as taking a long position.
Going Short - This means that you are betting on the instrument to go down and you want to sell or take a "short position". A short position is performed by buying those shares or "that" closed your position. This concept is very confusing for new traders because you have something that you do not even have to sell yourself. The thing is that you're still trying to buy low and sell high, you're just selling high and buying low first later. Think of it this way - you go to a car dealer and buy a new car, it charges you $ 20k and then looks to buy it for a lower price. This dealer has a "short position" on the transaction between you and taken him. We do not recommend new traders to take short positions until they know more about the market.
One thing to keep short and long positions in mind is that they are totally different in nature. There are far more traders out there to take over those short long positions. Human nature tells us that we buy with the expectation of rising prices. The concept of wanting prices fall is against human nature and short positions may be more erratic due.
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate, visit his website, Stock Trading Reviews a new stock trading idea
Sunday 30 March 2014
Success Trading For New Traders - What Does Bid and Ask Mean?
Have you ever wondered what exactly is going on in the trading pits after you have sent to purchasing shares an order? You've undoubtedly seen online market quotations or even in the newspaper. Have you noticed that there are always two sets of prices given? What do these mean and where my order will get filled? Let's talk about the basics of the two prices you see.
Let's say you are trading stocks. The first prize (usually the one on the left) is a "bid". This is the price at which the market is offering to buy the shares. If you sell your stock on the market, this is the price you get. The second prize (usually on the right) is the "demand". This is the price at which the market will sell the stock. If you have an open to buy in the market to submit shares will get them for the asking price. Another element that comes into play sometimes the size of the bid and ask. Usually there is an order size that comes with the bid and ask. If this size is exceeded then the price will usually change - and, in general, will move slightly against you because you are creating a demand for that file small price change.
The difference between the bid price and the ask price is the "spread". If you look at the distribution of a large cap stocks that deals with one million shares per day, and compare that with a small cap stocks acting alone thousand shares per day, you can see see a big difference. Shares are more liquid (or more activity) will have much smaller spreads than those with less activity. Thus, you will get a more liquid. Better filling (or deal) for a stock market order A tool that you can use to possibly improve your price is to use. Limit orders If you want to buy more than $ 12 and the bid is $ 11.50 and the ask is $ 12.50, XYZ, you can place an order with a limit of $ 12. This means that the order is not completed, unless you can get it for $ 12 or better.
A word of caution with limit orders is that the market could walk away without you using a purchase order. And if your order is filled, you are buying the shares of a relapse, which means it could make a major step down. As a general rule, it is not a good idea to use in the sale of shares and the market could make without ever hitting your limit price and you would be stuck with a big loss. A great move against you limit orders
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate, visit his website, Stock Trading Reviews a new stock trading idea
Let's say you are trading stocks. The first prize (usually the one on the left) is a "bid". This is the price at which the market is offering to buy the shares. If you sell your stock on the market, this is the price you get. The second prize (usually on the right) is the "demand". This is the price at which the market will sell the stock. If you have an open to buy in the market to submit shares will get them for the asking price. Another element that comes into play sometimes the size of the bid and ask. Usually there is an order size that comes with the bid and ask. If this size is exceeded then the price will usually change - and, in general, will move slightly against you because you are creating a demand for that file small price change.
The difference between the bid price and the ask price is the "spread". If you look at the distribution of a large cap stocks that deals with one million shares per day, and compare that with a small cap stocks acting alone thousand shares per day, you can see see a big difference. Shares are more liquid (or more activity) will have much smaller spreads than those with less activity. Thus, you will get a more liquid. Better filling (or deal) for a stock market order A tool that you can use to possibly improve your price is to use. Limit orders If you want to buy more than $ 12 and the bid is $ 11.50 and the ask is $ 12.50, XYZ, you can place an order with a limit of $ 12. This means that the order is not completed, unless you can get it for $ 12 or better.
A word of caution with limit orders is that the market could walk away without you using a purchase order. And if your order is filled, you are buying the shares of a relapse, which means it could make a major step down. As a general rule, it is not a good idea to use in the sale of shares and the market could make without ever hitting your limit price and you would be stuck with a big loss. A great move against you limit orders
Chuck Cox is a technical writer and Industrial Scientist by professional with a background in statistics. He used mathematical and statistical methods to invest and trade in the stock, futures and options markets. Chuck has several companies owned and currently operates several websites. To investigate, visit his website, Stock Trading Reviews a new stock trading idea
Saturday 15 March 2014
Diversify
The best way to avoid severely affected by a stock market crash or another Enron / Worldcom fiasco is to ensure that you do not put all your eggs in one basket. Diversification helps to ensure steady growth of your net worth as you accumulate more power.
This idea is not limited to the stocks in your portfolio, but should include all of the components that are part of your net worth. For example, it is OK to take $ 5,000 and put it in a stock you want, as long as you have enough equity in other areas, such as home or property value, mutual funds, savings, etc. ..
However, if you are still in the early stages of building wealth, and you only have $ 500 in savings, and you rent an apartment and lease your car, you probably do not want to put in a stock. To $ 5,000 A good guideline is to keep from having more than 20% of your net worth in a particular asset, unless it is your home.
Here is a good example of a diversified portfolio wealthy for someone in their 30's:
Payment: $ 2,000
Emergency savings: $ 5,000
Regular savings: $ 3,000
CDs or T-Bills: $ 5,000
Growth stocks: $ 5,000
Net value of vehicles: $ 7,500
401 (k) plan: $ 15,000
Equity in house: $ 20,000
Other tangible net assets: $ 10,000
Of course, the amounts more or less, depending on your age and situation in life.
Also, do not forget to protect a number of long-term disability and / or life insurance, even when you're young. Your net worth Following these simple guidelines will hopefully help to achieve a decent age. Your retirement goals
Scott is in his mid-thirties and has a Bachelor's Degree in Accounting, with a minor in Decision Science. He entered the accounting field ten years ago when he started working for a software company, where he stayed for seven years. He is now the Inventory Control Manager for a large winery, and maintains his own blog on financial
This idea is not limited to the stocks in your portfolio, but should include all of the components that are part of your net worth. For example, it is OK to take $ 5,000 and put it in a stock you want, as long as you have enough equity in other areas, such as home or property value, mutual funds, savings, etc. ..
However, if you are still in the early stages of building wealth, and you only have $ 500 in savings, and you rent an apartment and lease your car, you probably do not want to put in a stock. To $ 5,000 A good guideline is to keep from having more than 20% of your net worth in a particular asset, unless it is your home.
Here is a good example of a diversified portfolio wealthy for someone in their 30's:
Payment: $ 2,000
Emergency savings: $ 5,000
Regular savings: $ 3,000
CDs or T-Bills: $ 5,000
Growth stocks: $ 5,000
Net value of vehicles: $ 7,500
401 (k) plan: $ 15,000
Equity in house: $ 20,000
Other tangible net assets: $ 10,000
Of course, the amounts more or less, depending on your age and situation in life.
Also, do not forget to protect a number of long-term disability and / or life insurance, even when you're young. Your net worth Following these simple guidelines will hopefully help to achieve a decent age. Your retirement goals
Scott is in his mid-thirties and has a Bachelor's Degree in Accounting, with a minor in Decision Science. He entered the accounting field ten years ago when he started working for a software company, where he stayed for seven years. He is now the Inventory Control Manager for a large winery, and maintains his own blog on financial
Saturday 1 March 2014
My Way Or The Highway: Give Your Financial Professionals A Good Talking To!
All this talk about Investing is encouraging lately. In recent years, more people have become interested in the duty to invest money, than ever there. However, when you follow most investment offers to their logical conclusion, they are disgusting pointless.
Yet, many people take these "offers" anyway. Why?
As I said in the opening remarks. We are really not interested in investing, the compounding we want. The composition of our seed capital over a certain amount of time that produces results for us. When most people refer to investing, they really mean compounding their money.
The government approved investment advisors and other financial instruments paper hawkers offer 7% compounding wherever you go. Do not tell anyone we dont live for 200 years? That's how long it would take to see all reasonably attractive return. Even then, in 200 years, inflation would eat half of the profits. Why so much pleasure with this performance?
Maybe a lack of choice. But I think we have just swallowed the rule "the higher the reward, the higher the risk" Therefore, the logic goes, to settle for a very small 7% compounder, and my money will be safe. (Whether or not, is a matter of the Gods)
It's just not so. Many low-yielding investments are highly risky.
Want to know what they really mean by that statement? "The more in control of your own investments you are, the higher the reward and the higher the risk TO US-our work, our profit" (the investment advisors jobs, investment advisers profits)
CONTROL is the financial key to a rapid growth of assets ... compounding. It's just so confusing to most people. They see the polished brochures, and marble floor offices, and the pristinely manicured secretaries, and believe that these guys must be good. Yes, they are good, they are good in business for themselves. So we work very hard in our jobs / small businesses, trying to aggregate together to hand over to them. Several funds
Well, those of us who refuse to professional investors anyway.
YOUR control of your money
The absolute truth. Completely unbiased, pristine, honest sacred, highest accuracy truth is that you are 100 times better than what is on offer can do. It is possible, it happens and you can also happen.
Risk is a doable factor, which can be denied to almost zero.
"Low returns and risks in relation to the exact degree we relinquish control of our assets to another". (I hope you know that last statement, hear his key phrase on this page.)
The further we get from the composite control of our assets (money), the higher the risk, the lower the return ..... guaranteed.
If you could compound at a rate of ten times, (or 1.000%) for 48 months, starting with only $ 1,000 money would 10 million dollars in four years. (Try it yourself, just a calculator and multiply $ 1,000 by ten, then multiply the result by ten to four times.)
At 7% over 48 months, you would end up with the total of $ 1,310.79 (Try it yourself, but instead of ten, multiply by 1.07 representing 7%)
It's a big difference is not it?
What is necessary to multiply by 10 per year, consistently your money? Or even 5 for that matter would be very acceptable 3 times? Yes, yes, and yes. They are possible and available to you.
If control is the key, how can we physically make concrete these results? If it is not in the "closed shop" of the worlds stock markets, where?
Are all around you. Spare value is everywhere, waiting to be scooped and resold for a profit. At every price imaginable. You can start with $ 20 or you can start with $ 20,000 your account size and comfort zone, your only limitations.
There is a lot to all of this. It is beyond the scope of this short article. The key point here is that the "professionals" in charge, so they get paid first, and in some cases-the most. You gave them power over your money by signing their forms. She scooped the cream off, even though ARE YOUR MONEY who did the work.
Its easy to understand if you will just have to be honest with yourself. Prepared Investing is a lot of fun. Especially when you know a few things about it.
I have much to say about these matters, so keep an eye on my articles here, or visit our website now for a lot of free insights and open content pages.
(C) Martin Thomson 2005.
Martin is an investor who is also part of a team that has a website for ordinary people to have a quick source to find ways to preserve wealth. With quality content heavily slanted toward common sense, risk-investor.com is the exclusive place on the web to get the acclaimed work by Millionaire Investor Hayden Muller. "The Trade Secrets of an Ethical Opportunity Investor: A Step-by-Step Guide." copyright 2005 revised edition. Hayden Muller.
Yet, many people take these "offers" anyway. Why?
As I said in the opening remarks. We are really not interested in investing, the compounding we want. The composition of our seed capital over a certain amount of time that produces results for us. When most people refer to investing, they really mean compounding their money.
The government approved investment advisors and other financial instruments paper hawkers offer 7% compounding wherever you go. Do not tell anyone we dont live for 200 years? That's how long it would take to see all reasonably attractive return. Even then, in 200 years, inflation would eat half of the profits. Why so much pleasure with this performance?
Maybe a lack of choice. But I think we have just swallowed the rule "the higher the reward, the higher the risk" Therefore, the logic goes, to settle for a very small 7% compounder, and my money will be safe. (Whether or not, is a matter of the Gods)
It's just not so. Many low-yielding investments are highly risky.
Want to know what they really mean by that statement? "The more in control of your own investments you are, the higher the reward and the higher the risk TO US-our work, our profit" (the investment advisors jobs, investment advisers profits)
CONTROL is the financial key to a rapid growth of assets ... compounding. It's just so confusing to most people. They see the polished brochures, and marble floor offices, and the pristinely manicured secretaries, and believe that these guys must be good. Yes, they are good, they are good in business for themselves. So we work very hard in our jobs / small businesses, trying to aggregate together to hand over to them. Several funds
Well, those of us who refuse to professional investors anyway.
YOUR control of your money
The absolute truth. Completely unbiased, pristine, honest sacred, highest accuracy truth is that you are 100 times better than what is on offer can do. It is possible, it happens and you can also happen.
Risk is a doable factor, which can be denied to almost zero.
"Low returns and risks in relation to the exact degree we relinquish control of our assets to another". (I hope you know that last statement, hear his key phrase on this page.)
The further we get from the composite control of our assets (money), the higher the risk, the lower the return ..... guaranteed.
If you could compound at a rate of ten times, (or 1.000%) for 48 months, starting with only $ 1,000 money would 10 million dollars in four years. (Try it yourself, just a calculator and multiply $ 1,000 by ten, then multiply the result by ten to four times.)
At 7% over 48 months, you would end up with the total of $ 1,310.79 (Try it yourself, but instead of ten, multiply by 1.07 representing 7%)
It's a big difference is not it?
What is necessary to multiply by 10 per year, consistently your money? Or even 5 for that matter would be very acceptable 3 times? Yes, yes, and yes. They are possible and available to you.
If control is the key, how can we physically make concrete these results? If it is not in the "closed shop" of the worlds stock markets, where?
Are all around you. Spare value is everywhere, waiting to be scooped and resold for a profit. At every price imaginable. You can start with $ 20 or you can start with $ 20,000 your account size and comfort zone, your only limitations.
There is a lot to all of this. It is beyond the scope of this short article. The key point here is that the "professionals" in charge, so they get paid first, and in some cases-the most. You gave them power over your money by signing their forms. She scooped the cream off, even though ARE YOUR MONEY who did the work.
Its easy to understand if you will just have to be honest with yourself. Prepared Investing is a lot of fun. Especially when you know a few things about it.
I have much to say about these matters, so keep an eye on my articles here, or visit our website now for a lot of free insights and open content pages.
(C) Martin Thomson 2005.
Martin is an investor who is also part of a team that has a website for ordinary people to have a quick source to find ways to preserve wealth. With quality content heavily slanted toward common sense, risk-investor.com is the exclusive place on the web to get the acclaimed work by Millionaire Investor Hayden Muller. "The Trade Secrets of an Ethical Opportunity Investor: A Step-by-Step Guide." copyright 2005 revised edition. Hayden Muller.
Friday 14 February 2014
Learn How to Lose and Risk Management
One of the leading traders on Chicago Mercantile Exchange, as a single trade lost everything!
For all his years of experience and money, he did not master the most important concept in trading: Risk Management!
Seems every trader for its own unique way of identifying market opportunities to have. You buy a stock hoping never to have to sell it, while another can hold for a day or even a few hours. A position in the market But two people would be in the markets. Hugely successful How can that be?
It is because every trader who has been consistently successful in the markets mastered the concepts of risk management.
Warren Buffet's two rules of investing are:
1. Lose money and never
2. Never forget rule number 1!
Paul Tudor Jones says he's always thinking about losing money as opposed to making money. He does not focus on making money, he is focused on protecting what he has!
Jim Rogers, who for years was a partner with legendary hedge fund investor George Soros, said: "My general advice is to not lose money!"
Bernard Baruch, the renowned investor from the first half of the 20th century advised "Learn how to lose. Quickly and clean"
Yet, when most people start trading, the only thing they think about is the profit target. Countless hours are spent discovering how to buy and sell on the market with relentless precision. Once they buy a market, the amateur trader thinks only of how high the market is going to go. Little effort is seen how low the market would bring, and where they should be allowed to check their losses.
These thoughts, so far from the minds of most traders are what separates the winners from the losers.
Risk management is the practice of determining to risk for each trade in order to maximize the expected profit. Potential of your trading strategy what percentage of your account
Once this amount is determined, the rate must be translated into an absolute value and stop loss orders are placed once a course has been introduced to control. For possible losses on these value
There is no guarantee that such efforts will control your losses, as the market may gap in price beyond your stop loss order, resulting in losses greater than planned.
Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the editor of
To learn how to take advantage of your investments to read:
For all his years of experience and money, he did not master the most important concept in trading: Risk Management!
Seems every trader for its own unique way of identifying market opportunities to have. You buy a stock hoping never to have to sell it, while another can hold for a day or even a few hours. A position in the market But two people would be in the markets. Hugely successful How can that be?
It is because every trader who has been consistently successful in the markets mastered the concepts of risk management.
Warren Buffet's two rules of investing are:
1. Lose money and never
2. Never forget rule number 1!
Paul Tudor Jones says he's always thinking about losing money as opposed to making money. He does not focus on making money, he is focused on protecting what he has!
Jim Rogers, who for years was a partner with legendary hedge fund investor George Soros, said: "My general advice is to not lose money!"
Bernard Baruch, the renowned investor from the first half of the 20th century advised "Learn how to lose. Quickly and clean"
Yet, when most people start trading, the only thing they think about is the profit target. Countless hours are spent discovering how to buy and sell on the market with relentless precision. Once they buy a market, the amateur trader thinks only of how high the market is going to go. Little effort is seen how low the market would bring, and where they should be allowed to check their losses.
These thoughts, so far from the minds of most traders are what separates the winners from the losers.
Risk management is the practice of determining to risk for each trade in order to maximize the expected profit. Potential of your trading strategy what percentage of your account
Once this amount is determined, the rate must be translated into an absolute value and stop loss orders are placed once a course has been introduced to control. For possible losses on these value
There is no guarantee that such efforts will control your losses, as the market may gap in price beyond your stop loss order, resulting in losses greater than planned.
Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the editor of
To learn how to take advantage of your investments to read:
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