Money in the stock market
Money can come and go very easily at the stock market.Take the following stock market chart for example with mentioned DryShips, Inc.(NASDAQ:DRYS) stock.Yes the shipping industry has financial problems for many years but this stock activity is very strange.A spike in volume and price could make a lot of money but recently the stock has lost almost 88% of this high price of about $100 per share.This is not investing,it is gambling.And money can come and go very quickly.To make money in the stock market you need a solid investing and risk management plan.This speculative move did not last long,but could have made a lot of money in a very short time if someone could jump early in the rally.
Money and financial markets online trading
There are no stupid trades, trading is risky with no guarantees of success and profits.Simplicity in online trading is one of the most effective financial advice that a trader, financial analyst can apply.A daily trading plan need not be too complicated to confront financial markets opportunities
There are many steps to a daily trading plan. But simplicity is one of the best advice to apply in online trading. Here are 5 steps that I personally apply to my trading and financial analysis for stock market and forex market.
1.Read latest fundamental and economic news, and daily calendar with news releases that may cause volatility and significant price action.
2.Form your own objective view based on your analysis and arguments about what side of the market will you open any positions, long and bullish or short and bearish. Be an independent thinker.
3.Set up your trades with well-established levels of profit, loss and open or close positions if they meet any of your risk/reward criteria. If not any good trade setups appear it is ok to pass on and do not trade at all.
4.Have a positive mood and state of mind, affirmations can help a lot on that, think of success only.
5. Apply your risk management plan and review at the end of day your performance appraisal and attribution. Even if you made a loss as long as it was within your defined risks limits and not an excessive one, it is not a failure.
Finally remember that stock market and forex market are both risky and to make money consistency is very important as great risk management is also. One month of great profitability is not enough to make you a great trader, financial analyst or portfolio manager. Same rule applies to a month of losses. It is the long run performance that matters in online trading, and statistics are not always indicative of whole truth.
Avoiding large drawdowns in returns is both challenging and tough to achieve. But at the end numbers only matter, and effort or time spent plus stress that was felt to achieve those numbers are ignored.
Have a daily positive attitude for facing the financial markets, each day is almost unique, this makes them exciting and do not set boundaries, then just apply your trading plan and be satisfied and happy you approached trading as an investment professional.
What is one of the most important trading and investing features you must focus on?
Some may say it is profitability.It is correct.Some may say it is winning.Also correct.But there is also another feature often neglected.It is a statistical ratio and although statistics do not tell always the whole truth this ratio does all the time.
The statistical ratio we refer to is the win to loss ratio.It does not matter what is the winning ratio.It would be great to have a 100% win ratio but it is not a logical one.What is important is a ratio that will help consistency and profitability over time.There is a very simple rule.Win more than you lose each time to grow your trading account and capital.
With that said a minimum 1:1 risk reward ratio should be the minimum one to consider placing any trade.The higher risk/reward ratio the better and there is no golden rule what is the best ratio.But we mainly like a 1:2 risk/reward ratio meaning you risk for example $500 to win $1000.With this ratio you can be profitable even if you lose almost 55 to 60 percent of your trades.
Having in mind that trading often does not mean profitability always then a focus on quality and well researched trades is vital.Should you skip a trade with a risk/reward less than 1/2?Not always.It depends on your trading style and risk aversion.But the ultimate trading goal should be to stay as an investor in the financial markets for many years to come.A good risk reward ratio will help a lot on this.To make money over time.
Investing and money management
What to do when you miss a big trading move in any financial market?In forex market or stock market or in futures,options?How to use your money wisely?
The answer depends on your risk averse measurement.If you like risk a lot you can follow the trend,but it may have little more room for gains.The most reasonable action is to wait,be patient and realize that trading and investing will exist also not today,but the days in the future.Opportunities to make money appear often.And also many bad trades lead to lose money and capital.
Money and finance
Investing and preparing a trading plan.When you invest or trade online or offline have a trading plan with clear goals of profit,stop loss and why you take the trade.it is very important to have very clear mind as smart money investing.
Money and trading
Number 1 rule to make money trading is stick with the trend up or down.
So simple does not work always,does not work 100% but it has high odds of making money.And while trends end someday and reverse it is all about high probabilities when putting money,income,cash,capital into the financial markets.
Money and trading
What is a good trader?How is a trader named good or bad in investing and business?Is it about money only?A good trader may be one with following features :
1.Performs due diligence
2.Applies good risk management always
3.Has a trading plan
4.Makes money consistently
Number four about money is the toughest one.
Money and investing
The revenge trade in investing,money and trading.
The revenge trade.Many types of trades exist.The revenge trade is something I have personally done and are committed to stop doing doing it being a professional.
What is the revenge trade?Simple.When you are being stopped out at a loss and immediately reenter the market with the aim to win now as the market was wrong.
Well the market does not care if you are wrong,handsome or clever.The revenge trade can have 2 results.
1.The good one that I have experienced is to win now.
2.The bad one that also have experienced is to lose again.
But why is it bad?There are no smart trades,stupid trades.The revenge trade is bad as it focuses on emotions like loss aversion,regret aversion,over-confidence etc.Emotional biases are bad for investing and trading as they alter the analysis from being rational and well supported with arguments to being emotional.
If you cannot control emotions at trading or investing especially when having losses then stress and other bad things can happen.
So let revenge trades away completely or at least minimize them.
Money and gold
Gold investing is very popular among investors. Many people trust this precious metal to be a good hedge against inflation. Gold has made some investors very rich because they made the right market decisions at the right time. If you want to find out what gold investing is all about, read the following article for some helpful tips.
Have an understanding of the current market value of gold before you sell it. You can call a jewelry store for this information. Gold value changes often, sometimes from day to day, and you want to make sure your buyer is offering you a fair price for your pieces, based on current market value.
Separate jewelry by their karat values before getting an offer. A lot of times, gold buyers will try to give you a price for the lowest karat and lump everything together. Think of that and make a point of separating your pieces according to karat, so you’ll get a better price.
Regardless of where you are selling your gold, you will be asked for your driver’s license or some other form of identification. Make sure you have it on you when you go to make the transaction. If you are preparing to sell and you don’t get asked for your ID, that should raise a big red flag.
When purchasing gold jewelry, ask the jeweler for a certificate of authenticity. This certificate is proof that you are purchasing a good piece of jewelry made of solid cold. Be sure the certificate indicates the price of the jewelry. Should you ever decide to sell your jewelry, this will be of help.
Learning how to be a smart investor in gold is not hard. However, it does take full understanding of the market in order to make this profitable for you. Good investing techniques take practice and experience. Use what you have learned in this article to give yourself a good start in your gold investment.
Investing tips for beginners
How to start investing?
Something that a lot of people are interested in would be real estate investing. This is a great market to get into to make and spend money. It is, however, not too simple to get into. If this is what you want to learn more about, then keep reading this information.
You must do some market analysis and research prior to becoming a real estate investor. Look at a bunch of properties to get a good idea on what locations are successful, and keep notes on it. Individual facets you need to note are market prices, rent expectations and renovation costs. Doing this will help you get a better picture of the value of each property.
Don’t make a property investment until a professional has inspected it. Sellers may even cover the inspection costs, but always choose an independent inspector. Make sure to have a neutral party take a look, also.
Think long-term when investing in real estate. While some investors seek to make quick turnovers by buying cheap and flipping within weeks or months, your better bet is a longer view. Look for safe properties where you can park a big sum of money and get investment return via monthly income like rent.
Pick one core strategy and get good at it. Your choices range from buying and flipping, buying and rehabbing or buying and renting. It is easier to master one of the three choices than dabble in two or three. In general, you make the most money in the long run by buying and holding.
As is probably clear to you now, getting into real estate investing can be a little tricky. However, now that you have this great advice, things shouldn’t be that hard on you. Just keep what you’ve read here in mind when you get started and you should have an easy time with all of this.