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:
Thursday 30 January 2014
Investing & Online Stock & Share Trading - The Stock & Share Markets are Booming But Be Warned
I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking corporate executive from one of Australia's largest banks, who we'll call 'Phil' here for the purpose of this article. After the race ended and after being told of mIk had het genoegen om te worden uitgenodigd op jacht van een vriend om te varen in een race op de haven van Sydney gisteren. Aan boord, als een van onze zootje ongeregeld, ontmoette ik een top ranking corporate executive van een van de grootste banken van Australië, die we 'Phil' hier pleiten voor de toepassing van dit artikel. Na afloop van de race en na te horen van mijn ervaring met de handel, vertelde hij me dat hij een grote aandelenportefeuille, waarvan vele speculatieve grondstofaandelen. Hij zei dat hij opgewonden door al het geld dat hij maakt en vroeg me af hoe lang dit al aan de gang?
Zoals te verwachten, 'Phil' vroeg me ook voor wat "hot tips" voor meer aandelen te kopen. Hij was verrast met mijn antwoord toen ik hem vertelde Daryl Guppy's standaard reactie van "Tips zijn voor obers" en dat ik dacht dat hij de verkeerde vragen. (Daryl Guppy is een bekende Stock Trader en internationale bestseller auteur - zie
Integendeel, ik legde hij zou moeten vragen:
* Hoe lang zal dit duren?
* Wanneer het klaar is hoe weet ik en wat zal ik doen?
* Hoe kan ik te weten komen over technische analyse en Money & Risk Management?
* Wat is een Trading Plan en hoe zet ik een samen en volgen?
* Hoe en wanneer moet ik toevoegen aan de voorraden ik al bezit?
* Hoe moet ik mijn portfolio te structureren betreffende individuele voorraad risico, sector risico en het totale risico van de portefeuille?
* Wat is mijn exit-strategie voor elk aandeel bezit ik?
* Wat is mijn exit-strategie voor mijn gehele portefeuille?
* Hoe houd ik nauwkeurige administratie en toezicht op mijn prestaties?
* Wat moet ik doen om meer te leren over mezelf en mijn eigen psychologische zwakheden (veel van wat ik mag niet eens beseffen dat ik heb) die het verschil of ik win of verlies op lange termijn kan maken?
'Phil' was oprecht verbaasd dat ik de wind van zijn zeilen genomen had - gelukkig was het na onze zeilrace elkaar, maar hopelijk voordat hij zijn eigen financiële wedstrijd verliest.
In januari op Ik gaf een wereldwijd persbericht naar onvoorbereid beginnende beleggers en handelaren van de mogelijke valkuilen vooruit in de markt te waarschuwen. Mijn vrouw Angela en ik verloren onze waterkant thuis op Sydney Harbour in de 'Tech wrak' van 2000, zodat we van de harde persoonlijke ervaring spreken.
Als complete beginners in de markt in 1999, hebben we verdubbeld op papier een grote aandelenportefeuille in slechts zes maanden. Vervolgens in minder dan een jaar geleden hebben we katastrofisch verliezen in de tech voorraad crash van 2000 en daarna:
* We waren terug te zetten meer dan 15 jaar financieel en emotioneel
* We werden gedwongen om onze waterkant huis te verkopen - het zelfde huis dat we al snel na aankomst in Australië als nieuw en straatarme immigranten in 1979 had ingesteld als een doel. We begonnen met het huren van wat ik een 'dog box' - als de huizenmarkt dan explosief.
* Angela werkte als retail assistent
Ik heb een First Class Honors Degree in Civiele Techniek dat hielp niet. In feite heb ik sindsdien gaan begrijpen dat het eigenlijk geholpen om te werken tegen mij. Met onze ervaring van het rijden een aantal van de grootste golven (omhoog en omlaag) in de markt en hebben verloren honderdduizenden dollars in het proces, hebben we meer dan de meeste voorraad handelaren weten in de wereld van de valkuilen die nietsvermoedende beginnende handelaren en beleggers wachten .
Sindsdien hebben we zeer gewaardeerd wordt blootgesteld aan de succesvolle methoden onderwezen door deskundige handelaren Alan Hull, Daryl Guppy, Jim Berg, Dr Van Tharp en anderen om winstgevend en met een betere risicobeheersing handel.
Het forum voor serieuze beleggers http://www.stockmeetingplace.com is de enige chatroom waar je Daryl Guppy vindt. We hebben onlangs kreeg de volgende reactie van een collega-Australische handelaar Nathan Unger op die site (zie hieronder):
"... Dank je wel voor het delen. Uw commentaar over dit onderwerp zijn zeer inzichtelijke, en terecht overweegt uw buurt trading dood ervaring, per se. Falen is altijd zo'n moeilijke naam om te worden gebrandmerkt met, want het gaat om ons te hoeven erkennen . dat we verkeerd waren Natuurlijk erkennen onze fouten betekent dat we onze trots moeten slikken -. een weliswaar huzarenstukje voor veel handelaren Grappling met onze eigen motieven te midden van de psychologische matrix die de beurs is, op zijn zachtst gezegd, een verbijsterende worstelen.
In een bijna paradoxale manier kan de beurs welpen maken uit ons door zowel onze verliezen als onze overwinningen. We zijn zenuwachtig als we verliezen en moeten een of andere manier de moed om voorlopig opnieuw op de markten. Toch potentieel nog gevaarlijker zijn de ongebreidelde successen die vaak vervormen perceptie van een handelaar over hun vermogen om verder succes te reguleren - successen die werken aan de toekomst brevet van onvermogen berispen.
Wie had gedacht dat het winnen kon eigenlijk een setup voor het verliezen geworden - een raadsel van de ergste soort? Ik ken geen andere bezigheid die de mogelijkheid om maskerade als vriend en vijand heeft en maak dan je denkt dat je het verschil kan vertellen.
Uw ervaring is, geloof ik, een schat ter waarde van misschien wel meer dan de som van uw verliezen. Het doet me denken aan hoe de meest zeewaardige schepen zijn doorgaans bekend als degenen die de meest verwoestende stormen hebben doorstaan. Yours is een geweldige prestatie, mijn vriend. Ik zal zeker de aankoop van uw boek.
Dank ook aan Daryl en Alan voor hun hulp en aanmoediging in het helpen om schimmel John's ontmoeting in de beste trading tool van alle - praktische ervaring ... "
In 2001, niet lang na het verliezen van ons huis, hebben we contact opgenomen met Daryl en ik neem deze gelegenheid hier te erkennen en dank hem nogmaals voor zijn wijsheid en steun sinds die tijd en ook om Alan Hull en dr. Van Tharp sindsdien. Daryl me vervolgens uitgenodigd om een kort artikel te schrijven voor zijn normale wekelijkse nieuwsbrief (Tutorials Toegepaste Technische Analyse), die werd de eerste van vele artikelen zoals mijn vrouw Angela en ik begon onze zoektocht naar het onderwijs.
Hij maakte een sterk punt dat door zich te concentreren op het onderzoek nodig om de artikelen die we zouden ophalen van goede gewoonten en door het delen met anderen, dat we onszelf zouden meer geneigd aan de stok met de discipline die betrokken zijn bij het onderwerp dat wordt behandeld tegen schrijven.
We hebben onlangs verzameld de artikelen die ik heb geschreven voor zijn nieuwsbrief en ze zijn nu verkrijgbaar als 'The Atkinson - Guppy Artikelen - Stock Market Onderwijs Opties voor het investeren Online & Online Trading - Gelegenheid voor een Home Based Business'. De meeste van deze artikelen omgaan met concepten en trading vaardigheden die nog steeds aan de lezers relevant zijn vandaag en omvatten het volgende:
* VOORWAARDELIJKE stop-loss orders: Een echte vergelijking tussen het gebruik van twee makelaars voor bewaking stop-loss orders - de werkelijke kosten van ontsporing
* BESTUURDERS HANDELINGEN: Een momentopname studie van de Australische marktaandeel te bepalen, als bij het toezicht op de aan-en verkopen van bedrijfsleiders met hun eigen aandelen, of het mogelijk is om een inzicht te krijgen in de toekomstige richting van de prijs en meeliften aandeel in de juiste richting - of spring schip met hen.
* Levensverwachting - de netto winst of verlies die u kunt verwachten over een groot aantal enkelvoudige eenheid trades. Een serie artikelen met dank aan het werk van Dr Van Tharp, auteur van 'Handel je weg naar financiële vrijheid'
* Overnames: Een kort overzicht van enkele van de strategieën handelaren gelden voor-overs te nemen.
* LAWINE STERKE en KANGAROO TAILS: Een serie artikelen over de recente fenomeen in de Australische aandelenmarkt veroorzaakt door geautomatiseerde geautomatiseerde conditionele stop loss makelaars savagely trapsgewijze verkooporders in de markt, met de prijzen vaak terugkaatsen enkele procenten in enkele minuten
Door mijn schrijven van artikelen en via onze site, mijn vrouw Angela en ik nu streven naar een 'routekaart van Discovery naar de Stock Market' hulp bieden aan nieuwe en bestaande online beleggers en handelaren de handel in het onderwijs informatie die ze nodig hebben om te overleven in eerste instantie de valkuilen vinden vooruit, dan om te gedijen in de markt.
Wij wensen u veel succes in 2005 en daarna, en vertrouw erop dat als je dit nog niet hebt gedaan, wordt u op zoek naar de antwoorden op de vragen die ik aangeboden om mijn zeilen teamlid 'Phil'.
Dit artikel werd gedrukt in wekelijkse nieuwsbrief Alan Hull's 'ActVest' voor Active Investors in maart 2005 en wordt hier met toestemming overgenomen Alan's.
John Atkinson is de co-redacteur van de wereldberoemde 'Investing & Online Trading' beurs nieuwsbrief, met wekelijkse aandelenhandel onderwijs voor beginners en ervaren traders en investeerders door high profile handelaar auteurs Jim Berg, Daryl Guppy, Dr Brett Steenbarger & Dr van Tharp.
Zijn vorige ebooks bevatten '7 geheimen om winstgevende Online Stock & Share Trading 'en de' Atkinson-Guppy artikelen '- een serie artikelen geschreven voor Daryl Guppy's nieuwsbrief' Tutorials Toegepaste Technische Analyse ', die eerder geen 1 trading nieuwsbrief in Australië door gestemd 'Aandelen' & nr 4 in de wereld door de 'voorraden en grondstoffen. "
John's co-auteurs van het nieuwe boek The Stock Trading Template die handelaren hoe ze hun Trading Plan bouwen toont, met inbreng van Tim Wilcox Jim Berg, Daryl Guppy & Dr Brett Steenbarger.
Een gratis exemplaar zal worden voor alle 'Investing & Online Trading' beurs nieuwsbrief Leden toen uitgebracht in februari 2006.
Bron van het artikel:..y trading experience, he told me he has a large stock portfolio, many of which are speculative resources stocks. He said that he's excited by all the money he's making and wondering how long this has been going on?
As would be expected, 'Phil' also asked me for some "hot tips" for more stocks to buy. He was surprised with my reply when I told him Daryl Guppy's standard response of "Tips are for waiters" and that I thought he was asking the wrong questions. (Daryl Guppy is a well known Stock Trader and International bestselling author - see
Rather, I explained he should be asking:
* How much longer will this last?
* When it finishes how will I know & what will I do?
* How do I find out about Technical Analysis and Money & Risk Management?
* What's a Trading Plan and how do I put one together and follow it?
* How and when do I add to the stocks I already own?
* How should I structure my portfolio regarding individual stock risk, sector risk and total portfolio risk?
* What's my exit strategy for each stock I own?
* What's my exit strategy for my whole portfolio?
* How do I keep accurate records and monitor my performance?
* What am I going to do to learn more about myself and my own psychological weaknesses (many of which I may not even realise I have) that can make all the difference as to whether I win or lose long term?
'Phil' was genuinely surprised that I had taken the wind out of his sails - luckily it was after our sailing race together, but hopefully before he loses his own financial race.
I issued a worldwide press release to caution unprepared novice investors and traders of the potential pitfalls ahead in the market. My wife Angela and I lost our waterfront home on Sydney Harbour in the 'Tech wreck' of 2000, so we speak from hard personal experience.
As complete novices in the market in 1999, we doubled on paper a large stock portfolio in only six months. Then in less than a year we suffered catastrophic losses in the tech stock crash of 2000 and beyond:
* We were set back more than 15 years financially and emotionally
* We were forced to sell our waterfront home - the very same house we had set as a goal soon after arriving in Australia as new and penniless immigrants in 1979. We began renting what I called a 'dog box' - as the housing market then rocketed.
* Angela was working as a retail assistant
I have a First Class Honors Degree in Civil Engineering that didn't help. In fact I have since come to understand that it actually helped to work against me. With our experience of riding some of the largest waves (up and down) in the market and having lost hundreds of thousands of dollars in the process, we know more than most stock traders in the world of the pitfalls that await unsuspecting novice traders and investors.
We have since greatly appreciated being exposed to the successful methods taught by expert traders Alan Hull, Daryl Guppy, Jim Berg, Dr Van Tharp and others to trade profitably and with better risk control.
The forum for serious investors is the only chatroom where you will find Daryl Guppy. We recently received the following response from a fellow Australian trader Nathan Unger on that site (see below):
"...thank you for sharing. Your comments on this subject are very insightful, and rightfully so considering your near trading death experience, per se. Failure is always such a difficult moniker to be branded with, for it involves us having to acknowledge that we were wrong. Of course, acknowledging our mistakes means that we must swallow our pride - an admittedly difficult feat for many traders. Grappling with our own motives amidst the psychological matrix that is the stock market is, to say the least, a bewildering struggle.
In an almost paradoxical fashion the stock market can create whelps out of us through both our losses as well as our victories. We are unnerved when we lose and must somehow muster the courage to tentatively re-enter the markets. Yet, potentially even more dangerous are the unbridled successes that often distort a trader's perception about their ability to regulate further success - successes that work to chide the future admission of failure.
Who would have thought that winning could actually become a setup for losing - a conundrum of the worst kind? I know of no other occupation that has the ability to masquerade as both friend and foe and then make you think that you can tell the difference.
Your experience is, I believe, a treasure worth perhaps more than the sum of your losses. It reminds me of how the most seaworthy vessels have typically been known to be the ones that have weathered the most devastating storms. Yours is a stellar effort, my friend. I will most certainly be purchasing your book.
Thanks also to Daryl and Alan for their assistance and encouragement in helping to mould John's encounter into the best trading tool of all - practical experience..."
During 2001, not long after losing our home, we made contact with Daryl and I take this opportunity here to acknowledge and thank him once again for his wisdom and support since that time and also to Alan Hull and Dr Van Tharp since then. Daryl subsequently invited me to write a short article for his regular weekly newsletter (Tutorials in Applied Technical Analysis) which became the first of many articles as my wife Angela and I began our search for education.
He made a strong point that by concentrating on the research needed to write the articles we would pick up good habits and through sharing with others, we ourselves would be more inclined to stick with the discipline involved in the subject being covered.
We have recently collated the articles I have written for his newsletter and they are now available as 'The Atkinson - Guppy Articles - Stock Market Educational Options for Investing Online & Online Trading - Opportunity for a Home Based Business'. Most of these articles deal with concepts and trading skills which are still relevant to readers today and include the following:
* CONDITIONAL STOP LOSS ORDERS: A real life comparison between using two brokers for monitoring stop loss orders - the true cost of slippage
* DIRECTORS DEALINGS: A snapshot study of the Australian share market to determine, if by monitoring the purchases and sales of company directors with their own shares, whether it is possible to obtain an insight into the future direction of the share price and hitch a ride in the right direction - or jump ship with them.
* EXPECTANCY - the net profit or loss that you can expect over a large number of single unit trades. A series of articles with thanks to the work of Dr Van Tharp, author of 'Trade Your Way to Financial Freedom'
* TAKE-OVERS: A brief overview of some of the strategies traders apply to take-overs.
* AVALANCHE SELLING and KANGAROO TAILS: A series of articles on the recent phenomenon in the Australian share market caused by computerised automated conditional stop loss brokers savagely cascading sell orders into the market, with prices often rebounding several percent within minutes
Through my writing articles and through our site, my wife Angela and I now aim to provide a 'Road Map of Discovery to the Stock Market' to help new and existing online investors and traders find the trading education information they need to initially survive the pitfalls ahead, then to thrive in the market.
We wish you every success in 2005 and beyond and trust that if you haven't done so already, you will be seeking out the answers to the questions I offered to my sailing team member 'Phil'.
This article was printed in Alan Hull's weekly newsletter 'ActVest' for Active Investors in March 2005 and is reprinted here with Alan's permission.
John Atkinson is the co-editor of the world famous 'Investing & Online Trading' stock market newsletter, featuring weekly stock trading education for novices & experienced traders & investors by high profile trader authors Jim Berg, Daryl Guppy, Dr Brett Steenbarger & Dr van Tharp.
His previous ebooks include '7 Secrets to Profitable Online Stock & Share Trading' and the 'Atkinson -Guppy Articles' - a series of articles written for Daryl Guppy's newsletter 'Tutorials in Applied Technical Analysis', previously voted no 1 trading newsletter in Australia by 'Shares' & no 4 in the world by 'Stocks and Commodities.'
John's co-authors the new ebook The Stock Trading Template which shows traders how to build their Trading Plan, with input from Tim Wilcox Jim Berg, Daryl Guppy & Dr Brett Steenbarger.
A free copy will be give to all 'Investing & Online Trading' stock market newsletter Members when released in February 2006.
Zoals te verwachten, 'Phil' vroeg me ook voor wat "hot tips" voor meer aandelen te kopen. Hij was verrast met mijn antwoord toen ik hem vertelde Daryl Guppy's standaard reactie van "Tips zijn voor obers" en dat ik dacht dat hij de verkeerde vragen. (Daryl Guppy is een bekende Stock Trader en internationale bestseller auteur - zie
Integendeel, ik legde hij zou moeten vragen:
* Hoe lang zal dit duren?
* Wanneer het klaar is hoe weet ik en wat zal ik doen?
* Hoe kan ik te weten komen over technische analyse en Money & Risk Management?
* Wat is een Trading Plan en hoe zet ik een samen en volgen?
* Hoe en wanneer moet ik toevoegen aan de voorraden ik al bezit?
* Hoe moet ik mijn portfolio te structureren betreffende individuele voorraad risico, sector risico en het totale risico van de portefeuille?
* Wat is mijn exit-strategie voor elk aandeel bezit ik?
* Wat is mijn exit-strategie voor mijn gehele portefeuille?
* Hoe houd ik nauwkeurige administratie en toezicht op mijn prestaties?
* Wat moet ik doen om meer te leren over mezelf en mijn eigen psychologische zwakheden (veel van wat ik mag niet eens beseffen dat ik heb) die het verschil of ik win of verlies op lange termijn kan maken?
'Phil' was oprecht verbaasd dat ik de wind van zijn zeilen genomen had - gelukkig was het na onze zeilrace elkaar, maar hopelijk voordat hij zijn eigen financiële wedstrijd verliest.
In januari op Ik gaf een wereldwijd persbericht naar onvoorbereid beginnende beleggers en handelaren van de mogelijke valkuilen vooruit in de markt te waarschuwen. Mijn vrouw Angela en ik verloren onze waterkant thuis op Sydney Harbour in de 'Tech wrak' van 2000, zodat we van de harde persoonlijke ervaring spreken.
Als complete beginners in de markt in 1999, hebben we verdubbeld op papier een grote aandelenportefeuille in slechts zes maanden. Vervolgens in minder dan een jaar geleden hebben we katastrofisch verliezen in de tech voorraad crash van 2000 en daarna:
* We waren terug te zetten meer dan 15 jaar financieel en emotioneel
* We werden gedwongen om onze waterkant huis te verkopen - het zelfde huis dat we al snel na aankomst in Australië als nieuw en straatarme immigranten in 1979 had ingesteld als een doel. We begonnen met het huren van wat ik een 'dog box' - als de huizenmarkt dan explosief.
* Angela werkte als retail assistent
Ik heb een First Class Honors Degree in Civiele Techniek dat hielp niet. In feite heb ik sindsdien gaan begrijpen dat het eigenlijk geholpen om te werken tegen mij. Met onze ervaring van het rijden een aantal van de grootste golven (omhoog en omlaag) in de markt en hebben verloren honderdduizenden dollars in het proces, hebben we meer dan de meeste voorraad handelaren weten in de wereld van de valkuilen die nietsvermoedende beginnende handelaren en beleggers wachten .
Sindsdien hebben we zeer gewaardeerd wordt blootgesteld aan de succesvolle methoden onderwezen door deskundige handelaren Alan Hull, Daryl Guppy, Jim Berg, Dr Van Tharp en anderen om winstgevend en met een betere risicobeheersing handel.
Het forum voor serieuze beleggers http://www.stockmeetingplace.com is de enige chatroom waar je Daryl Guppy vindt. We hebben onlangs kreeg de volgende reactie van een collega-Australische handelaar Nathan Unger op die site (zie hieronder):
"... Dank je wel voor het delen. Uw commentaar over dit onderwerp zijn zeer inzichtelijke, en terecht overweegt uw buurt trading dood ervaring, per se. Falen is altijd zo'n moeilijke naam om te worden gebrandmerkt met, want het gaat om ons te hoeven erkennen . dat we verkeerd waren Natuurlijk erkennen onze fouten betekent dat we onze trots moeten slikken -. een weliswaar huzarenstukje voor veel handelaren Grappling met onze eigen motieven te midden van de psychologische matrix die de beurs is, op zijn zachtst gezegd, een verbijsterende worstelen.
In een bijna paradoxale manier kan de beurs welpen maken uit ons door zowel onze verliezen als onze overwinningen. We zijn zenuwachtig als we verliezen en moeten een of andere manier de moed om voorlopig opnieuw op de markten. Toch potentieel nog gevaarlijker zijn de ongebreidelde successen die vaak vervormen perceptie van een handelaar over hun vermogen om verder succes te reguleren - successen die werken aan de toekomst brevet van onvermogen berispen.
Wie had gedacht dat het winnen kon eigenlijk een setup voor het verliezen geworden - een raadsel van de ergste soort? Ik ken geen andere bezigheid die de mogelijkheid om maskerade als vriend en vijand heeft en maak dan je denkt dat je het verschil kan vertellen.
Uw ervaring is, geloof ik, een schat ter waarde van misschien wel meer dan de som van uw verliezen. Het doet me denken aan hoe de meest zeewaardige schepen zijn doorgaans bekend als degenen die de meest verwoestende stormen hebben doorstaan. Yours is een geweldige prestatie, mijn vriend. Ik zal zeker de aankoop van uw boek.
Dank ook aan Daryl en Alan voor hun hulp en aanmoediging in het helpen om schimmel John's ontmoeting in de beste trading tool van alle - praktische ervaring ... "
In 2001, niet lang na het verliezen van ons huis, hebben we contact opgenomen met Daryl en ik neem deze gelegenheid hier te erkennen en dank hem nogmaals voor zijn wijsheid en steun sinds die tijd en ook om Alan Hull en dr. Van Tharp sindsdien. Daryl me vervolgens uitgenodigd om een kort artikel te schrijven voor zijn normale wekelijkse nieuwsbrief (Tutorials Toegepaste Technische Analyse), die werd de eerste van vele artikelen zoals mijn vrouw Angela en ik begon onze zoektocht naar het onderwijs.
Hij maakte een sterk punt dat door zich te concentreren op het onderzoek nodig om de artikelen die we zouden ophalen van goede gewoonten en door het delen met anderen, dat we onszelf zouden meer geneigd aan de stok met de discipline die betrokken zijn bij het onderwerp dat wordt behandeld tegen schrijven.
We hebben onlangs verzameld de artikelen die ik heb geschreven voor zijn nieuwsbrief en ze zijn nu verkrijgbaar als 'The Atkinson - Guppy Artikelen - Stock Market Onderwijs Opties voor het investeren Online & Online Trading - Gelegenheid voor een Home Based Business'. De meeste van deze artikelen omgaan met concepten en trading vaardigheden die nog steeds aan de lezers relevant zijn vandaag en omvatten het volgende:
* VOORWAARDELIJKE stop-loss orders: Een echte vergelijking tussen het gebruik van twee makelaars voor bewaking stop-loss orders - de werkelijke kosten van ontsporing
* BESTUURDERS HANDELINGEN: Een momentopname studie van de Australische marktaandeel te bepalen, als bij het toezicht op de aan-en verkopen van bedrijfsleiders met hun eigen aandelen, of het mogelijk is om een inzicht te krijgen in de toekomstige richting van de prijs en meeliften aandeel in de juiste richting - of spring schip met hen.
* Levensverwachting - de netto winst of verlies die u kunt verwachten over een groot aantal enkelvoudige eenheid trades. Een serie artikelen met dank aan het werk van Dr Van Tharp, auteur van 'Handel je weg naar financiële vrijheid'
* Overnames: Een kort overzicht van enkele van de strategieën handelaren gelden voor-overs te nemen.
* LAWINE STERKE en KANGAROO TAILS: Een serie artikelen over de recente fenomeen in de Australische aandelenmarkt veroorzaakt door geautomatiseerde geautomatiseerde conditionele stop loss makelaars savagely trapsgewijze verkooporders in de markt, met de prijzen vaak terugkaatsen enkele procenten in enkele minuten
Door mijn schrijven van artikelen en via onze site, mijn vrouw Angela en ik nu streven naar een 'routekaart van Discovery naar de Stock Market' hulp bieden aan nieuwe en bestaande online beleggers en handelaren de handel in het onderwijs informatie die ze nodig hebben om te overleven in eerste instantie de valkuilen vinden vooruit, dan om te gedijen in de markt.
Wij wensen u veel succes in 2005 en daarna, en vertrouw erop dat als je dit nog niet hebt gedaan, wordt u op zoek naar de antwoorden op de vragen die ik aangeboden om mijn zeilen teamlid 'Phil'.
Dit artikel werd gedrukt in wekelijkse nieuwsbrief Alan Hull's 'ActVest' voor Active Investors in maart 2005 en wordt hier met toestemming overgenomen Alan's.
John Atkinson is de co-redacteur van de wereldberoemde 'Investing & Online Trading' beurs nieuwsbrief, met wekelijkse aandelenhandel onderwijs voor beginners en ervaren traders en investeerders door high profile handelaar auteurs Jim Berg, Daryl Guppy, Dr Brett Steenbarger & Dr van Tharp.
Zijn vorige ebooks bevatten '7 geheimen om winstgevende Online Stock & Share Trading 'en de' Atkinson-Guppy artikelen '- een serie artikelen geschreven voor Daryl Guppy's nieuwsbrief' Tutorials Toegepaste Technische Analyse ', die eerder geen 1 trading nieuwsbrief in Australië door gestemd 'Aandelen' & nr 4 in de wereld door de 'voorraden en grondstoffen. "
John's co-auteurs van het nieuwe boek The Stock Trading Template die handelaren hoe ze hun Trading Plan bouwen toont, met inbreng van Tim Wilcox Jim Berg, Daryl Guppy & Dr Brett Steenbarger.
Een gratis exemplaar zal worden voor alle 'Investing & Online Trading' beurs nieuwsbrief Leden toen uitgebracht in februari 2006.
Bron van het artikel:..y trading experience, he told me he has a large stock portfolio, many of which are speculative resources stocks. He said that he's excited by all the money he's making and wondering how long this has been going on?
As would be expected, 'Phil' also asked me for some "hot tips" for more stocks to buy. He was surprised with my reply when I told him Daryl Guppy's standard response of "Tips are for waiters" and that I thought he was asking the wrong questions. (Daryl Guppy is a well known Stock Trader and International bestselling author - see
Rather, I explained he should be asking:
* How much longer will this last?
* When it finishes how will I know & what will I do?
* How do I find out about Technical Analysis and Money & Risk Management?
* What's a Trading Plan and how do I put one together and follow it?
* How and when do I add to the stocks I already own?
* How should I structure my portfolio regarding individual stock risk, sector risk and total portfolio risk?
* What's my exit strategy for each stock I own?
* What's my exit strategy for my whole portfolio?
* How do I keep accurate records and monitor my performance?
* What am I going to do to learn more about myself and my own psychological weaknesses (many of which I may not even realise I have) that can make all the difference as to whether I win or lose long term?
'Phil' was genuinely surprised that I had taken the wind out of his sails - luckily it was after our sailing race together, but hopefully before he loses his own financial race.
I issued a worldwide press release to caution unprepared novice investors and traders of the potential pitfalls ahead in the market. My wife Angela and I lost our waterfront home on Sydney Harbour in the 'Tech wreck' of 2000, so we speak from hard personal experience.
As complete novices in the market in 1999, we doubled on paper a large stock portfolio in only six months. Then in less than a year we suffered catastrophic losses in the tech stock crash of 2000 and beyond:
* We were set back more than 15 years financially and emotionally
* We were forced to sell our waterfront home - the very same house we had set as a goal soon after arriving in Australia as new and penniless immigrants in 1979. We began renting what I called a 'dog box' - as the housing market then rocketed.
* Angela was working as a retail assistant
I have a First Class Honors Degree in Civil Engineering that didn't help. In fact I have since come to understand that it actually helped to work against me. With our experience of riding some of the largest waves (up and down) in the market and having lost hundreds of thousands of dollars in the process, we know more than most stock traders in the world of the pitfalls that await unsuspecting novice traders and investors.
We have since greatly appreciated being exposed to the successful methods taught by expert traders Alan Hull, Daryl Guppy, Jim Berg, Dr Van Tharp and others to trade profitably and with better risk control.
The forum for serious investors is the only chatroom where you will find Daryl Guppy. We recently received the following response from a fellow Australian trader Nathan Unger on that site (see below):
"...thank you for sharing. Your comments on this subject are very insightful, and rightfully so considering your near trading death experience, per se. Failure is always such a difficult moniker to be branded with, for it involves us having to acknowledge that we were wrong. Of course, acknowledging our mistakes means that we must swallow our pride - an admittedly difficult feat for many traders. Grappling with our own motives amidst the psychological matrix that is the stock market is, to say the least, a bewildering struggle.
In an almost paradoxical fashion the stock market can create whelps out of us through both our losses as well as our victories. We are unnerved when we lose and must somehow muster the courage to tentatively re-enter the markets. Yet, potentially even more dangerous are the unbridled successes that often distort a trader's perception about their ability to regulate further success - successes that work to chide the future admission of failure.
Who would have thought that winning could actually become a setup for losing - a conundrum of the worst kind? I know of no other occupation that has the ability to masquerade as both friend and foe and then make you think that you can tell the difference.
Your experience is, I believe, a treasure worth perhaps more than the sum of your losses. It reminds me of how the most seaworthy vessels have typically been known to be the ones that have weathered the most devastating storms. Yours is a stellar effort, my friend. I will most certainly be purchasing your book.
Thanks also to Daryl and Alan for their assistance and encouragement in helping to mould John's encounter into the best trading tool of all - practical experience..."
During 2001, not long after losing our home, we made contact with Daryl and I take this opportunity here to acknowledge and thank him once again for his wisdom and support since that time and also to Alan Hull and Dr Van Tharp since then. Daryl subsequently invited me to write a short article for his regular weekly newsletter (Tutorials in Applied Technical Analysis) which became the first of many articles as my wife Angela and I began our search for education.
He made a strong point that by concentrating on the research needed to write the articles we would pick up good habits and through sharing with others, we ourselves would be more inclined to stick with the discipline involved in the subject being covered.
We have recently collated the articles I have written for his newsletter and they are now available as 'The Atkinson - Guppy Articles - Stock Market Educational Options for Investing Online & Online Trading - Opportunity for a Home Based Business'. Most of these articles deal with concepts and trading skills which are still relevant to readers today and include the following:
* CONDITIONAL STOP LOSS ORDERS: A real life comparison between using two brokers for monitoring stop loss orders - the true cost of slippage
* DIRECTORS DEALINGS: A snapshot study of the Australian share market to determine, if by monitoring the purchases and sales of company directors with their own shares, whether it is possible to obtain an insight into the future direction of the share price and hitch a ride in the right direction - or jump ship with them.
* EXPECTANCY - the net profit or loss that you can expect over a large number of single unit trades. A series of articles with thanks to the work of Dr Van Tharp, author of 'Trade Your Way to Financial Freedom'
* TAKE-OVERS: A brief overview of some of the strategies traders apply to take-overs.
* AVALANCHE SELLING and KANGAROO TAILS: A series of articles on the recent phenomenon in the Australian share market caused by computerised automated conditional stop loss brokers savagely cascading sell orders into the market, with prices often rebounding several percent within minutes
Through my writing articles and through our site, my wife Angela and I now aim to provide a 'Road Map of Discovery to the Stock Market' to help new and existing online investors and traders find the trading education information they need to initially survive the pitfalls ahead, then to thrive in the market.
We wish you every success in 2005 and beyond and trust that if you haven't done so already, you will be seeking out the answers to the questions I offered to my sailing team member 'Phil'.
This article was printed in Alan Hull's weekly newsletter 'ActVest' for Active Investors in March 2005 and is reprinted here with Alan's permission.
John Atkinson is the co-editor of the world famous 'Investing & Online Trading' stock market newsletter, featuring weekly stock trading education for novices & experienced traders & investors by high profile trader authors Jim Berg, Daryl Guppy, Dr Brett Steenbarger & Dr van Tharp.
His previous ebooks include '7 Secrets to Profitable Online Stock & Share Trading' and the 'Atkinson -Guppy Articles' - a series of articles written for Daryl Guppy's newsletter 'Tutorials in Applied Technical Analysis', previously voted no 1 trading newsletter in Australia by 'Shares' & no 4 in the world by 'Stocks and Commodities.'
John's co-authors the new ebook The Stock Trading Template which shows traders how to build their Trading Plan, with input from Tim Wilcox Jim Berg, Daryl Guppy & Dr Brett Steenbarger.
A free copy will be give to all 'Investing & Online Trading' stock market newsletter Members when released in February 2006.
Wednesday 15 January 2014
Well Managed Investing Risks Bring Rewards!
"Risk comes from not knowing what you're doing!" Warren Buffett (1930 -)
We often listen to people who are reluctant to invest in the stock market because they are afraid of risk. There are elderly people who fear that a stock crash could leave them. Destitute There are young couples who yearn for a new home, but worry that losing an investment could kill their chances.
For an investor, the risk is a fact of life!
When opening an opportunity for you to make, you also have to do with the fear of the possibility of suffering an investment loss. Investment earnings Even with "safe" types of investments, such as bank deposits, there is a risk that the rate you earn will not exceed the rate of inflation higher.
Often these fears rooted in a misunderstanding of what the risk is. Those who understand the market risks - and their ability to tolerate to properly evaluate them - to their investment portfolios to choose a degree of uncertainty boost by!
In finance, risk reflects the uncertainty and it is measured by the standard deviation of the norm.
Many people would say the riskier investment is the first, because their would be. Important in greater danger But to professionals, the initial investment is just stupid - not dangerous - because it is sure to lose a thing!
However, what worries many is that you never know when the stock market dive. What if it falls well before you need to sell?
Most people measure their risk and potential for loss, but the risk is measured by the variability of returns!
In other words, because the stocks have higher average returns, you can lose and still end up suffering some enormous progress in the long run.
There is only one situation where adding files to your portfolio does not make sense - if you do not have time to let the market work for you.
In a given year, you have about a 1 in 4 chance of taking a loss on the stock market. If one year or less, as long as you are planning to invest, stocks down on a gamble.
But if your time horizon is five years or more, there is a very good chance that putting at least a portion of your money in shares, to raise the performance of your investments
One question you have to solve is the kind of investment risk you pick comfortable. The choice ranges from conservative to aggressive, with a wide middle between the extremes.
Conservative Investing: Does money stabbing where there is little risk to principal.
Moderate Investment: Does taking risks by stabbing money in growth stocks and bonds.
Aggressive or Speculative Investment: Does taking a potential risk of losing part of your investment in exchange for the possibility of making a larger profit.
The equalizer is a good chance that you have to work for the balance between the different risk categories.
One of your concerns should be that if you invest conservatively, you will not have enough money on the way to afford your goals, even if you have been diligent in following your plan.
Another concern is that by taking too many chances you risk losing too much of your capital.
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
We often listen to people who are reluctant to invest in the stock market because they are afraid of risk. There are elderly people who fear that a stock crash could leave them. Destitute There are young couples who yearn for a new home, but worry that losing an investment could kill their chances.
For an investor, the risk is a fact of life!
When opening an opportunity for you to make, you also have to do with the fear of the possibility of suffering an investment loss. Investment earnings Even with "safe" types of investments, such as bank deposits, there is a risk that the rate you earn will not exceed the rate of inflation higher.
Often these fears rooted in a misunderstanding of what the risk is. Those who understand the market risks - and their ability to tolerate to properly evaluate them - to their investment portfolios to choose a degree of uncertainty boost by!
In finance, risk reflects the uncertainty and it is measured by the standard deviation of the norm.
Many people would say the riskier investment is the first, because their would be. Important in greater danger But to professionals, the initial investment is just stupid - not dangerous - because it is sure to lose a thing!
However, what worries many is that you never know when the stock market dive. What if it falls well before you need to sell?
Most people measure their risk and potential for loss, but the risk is measured by the variability of returns!
In other words, because the stocks have higher average returns, you can lose and still end up suffering some enormous progress in the long run.
There is only one situation where adding files to your portfolio does not make sense - if you do not have time to let the market work for you.
In a given year, you have about a 1 in 4 chance of taking a loss on the stock market. If one year or less, as long as you are planning to invest, stocks down on a gamble.
But if your time horizon is five years or more, there is a very good chance that putting at least a portion of your money in shares, to raise the performance of your investments
One question you have to solve is the kind of investment risk you pick comfortable. The choice ranges from conservative to aggressive, with a wide middle between the extremes.
Conservative Investing: Does money stabbing where there is little risk to principal.
Moderate Investment: Does taking risks by stabbing money in growth stocks and bonds.
Aggressive or Speculative Investment: Does taking a potential risk of losing part of your investment in exchange for the possibility of making a larger profit.
The equalizer is a good chance that you have to work for the balance between the different risk categories.
One of your concerns should be that if you invest conservatively, you will not have enough money on the way to afford your goals, even if you have been diligent in following your plan.
Another concern is that by taking too many chances you risk losing too much of your capital.
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
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