"How Much do I Invest"
We need to tighten up our act. Too much left to chance is the recipe for a dangerous result. Tightening up means we make rules as to "How we will play this game" and we stick to them.
Money Management - Your Ticket to Profits
-----------------------------------------------------------------
If your account is $10 000 then you will have a very good idea as to how much you will place on any (one) trade. A rule I've adopted for a small account is an allowance of 10% on any one trade.
You will trade in parcels of $1000 and you will only suffer a maximum loss of 10% of that trade.
Thus you will trade with a $1000 and you will cap your loss at$100. You will quit the trade if you lose $100. Now you need to be comfortable with your rules so I offer mine as your guide - you decide what your rule will be.
In other issues I have mentioned the sort of return you need if you make a 10% loss or a 50% loss.
Look at the returns needed just to get your money back:
10% loss.....................11% profit required
50% loss.....................100% profit required
A wonderful resource by David Jenyns will help you fine tune your trading tactics and help you adjust the size of your trading positions.
Click the link: http://tinyurl.com/4xml6
I also suggest you start buying and selling shares(stocks) to get some experience in trading without the volatility of other instruments like - options, warrants and futures. Work on profitable stock trading and then learn how to trade other things. This gives you confidence and also gives you time to learn and experiment without too much damage.
To prevent serious loss don't trade unless someone is ableand willing to provide you with a "stop loss". It is hard toget the ideal broker but you do want to increase your chances of success and "stop losses" are VERY IMPORTANT part of your system.
Ring the brokers and ask them whether they provide the service. Discount brokers are preferable if you have a small account otherwise the cost will eat your profit. You don't want circumstance to push you into placing MORE than your 10% into the trade. So do the numbers and don't worry about broker's advice - your system is your advisor..got it?
I've mentioned it before and I'll give you the link here. MarkMcRae has created, "Trading For Beginners". He gives a very good explanation of trading basics. I love my copy! He is onthe ball with his introduction into technical analysis.
Understand, if we were rational and unemotional the stock market probably wouldn't exist. Instead we are blessed with a means to earn a superior living, without the 9-5 routine!
Now you make sure you get your copy and read it..okay! Just before I give you the link make sure that when you get your copy you don't skip - "stop losses" on page 70.
Click here:
http://tinyurl.com/2k29q
This resource is essential for starters. I wouldn't stop with this one, but I mention it because it's easy to read and understand. The next one to read is this one:
"The Way to Trade"
http://tinyurl.com/2fgrv
We are going from learning the basics to the nitty-gritty of applying what we learn. Take your time. If you know your stuff and feel comfortable with it you can make your cash very quickly - believe me. So don't neglect these resources if you really want to succeed.
"The way to Trade" has been a huge hit! Remember when you study any of this material you are benefiting from many years of experience and a great volume of trades conducted by these traders. You will never be able to replace experience so thatis what you are really paying for.
The basics remain basics unless you learn How to apply the information. Knowlegde is useful, followed by a trading system you understand and is easy enough for you to use. Test every concept on paper first without"risk".
You will need a way to get end of day prices either from the paper or some data provider and then chart by hand or use computer charting packages to draw your price charts, with technical indicators to help you analyze the price chart.
Find a system - something you are comfortable using and build your skills over time. I have been doing my own swing charts and also using Metastock with technical indicators. I use a variation of the "123 System" to time my writing strategies. (You can get the "123 System" and 20 other bonuses bonus bytaking up the offer - see the author bio link.)
Now if you are following a stock make sure you get to know it's every move. I would suggest you only follow ONE stock.The reason is that you will start to understand it better and you will become more successful trading that stock. The same goes for any other trading instrument.
You should be paper-trading before you put any money on the line. Don't choose specs for this exercise....trade big companies...top 20, top 50, top 100. You need volume and liquidity so check the numbers and makesure your chosen stock has a BIG following and is a profitable company.
Build Your Trading Skills Use The Resource List:
1*Knowledge of the basics - not just technical analysis
"Trading Secrets Revealed" is a step-by-step trading road map that designs excellent money management.
http://tinyurl.com/4xml6
"Trading For Beginners" Reducing risk via position sizing(how much do I invest)and applying stop lossess.
http://www.surefire-trading.com/sft.php?offer=tutorxt007&pid=1
2* Using a trading system you feel comfortable with - testingit out thoroughly before investing money.
Learn About Trading Systems http://tinyurl.com/2fgrv
Get Trading Plans http://tinyurl.com/4ehhs
3*Starting off with stocks and building your skills and your knowledge and then trying out other instruments.
"How to Trade the Futures Market" http://tinyurl.com/2rcxz
Regards,
Joseph Sgro,
THE 10 Simple Rules Ezine
http://www.tutorhelp.com.au/ezine.html
P.S. Happy reading!!
http://www.tutorhelp.com.au/BLOG.html
==================================================
Copyright(C) Joseph Sgro 2005
Further this discussion by reading: "10 Simple Rules to Make Serious Money in
the Sharemarket and Keep it!"
http://www.tutorhelp.com.au/sharemarket.html
For more articles:
http://www.tutorhelp.com.au/articles.html
==================================================
Money Management - Your Ticket to Profits
-----------------------------------------------------------------
If your account is $10 000 then you will have a very good idea as to how much you will place on any (one) trade. A rule I've adopted for a small account is an allowance of 10% on any one trade.
You will trade in parcels of $1000 and you will only suffer a maximum loss of 10% of that trade.
Thus you will trade with a $1000 and you will cap your loss at$100. You will quit the trade if you lose $100. Now you need to be comfortable with your rules so I offer mine as your guide - you decide what your rule will be.
In other issues I have mentioned the sort of return you need if you make a 10% loss or a 50% loss.
Look at the returns needed just to get your money back:
10% loss.....................11% profit required
50% loss.....................100% profit required
A wonderful resource by David Jenyns will help you fine tune your trading tactics and help you adjust the size of your trading positions.
Click the link: http://tinyurl.com/4xml6
I also suggest you start buying and selling shares(stocks) to get some experience in trading without the volatility of other instruments like - options, warrants and futures. Work on profitable stock trading and then learn how to trade other things. This gives you confidence and also gives you time to learn and experiment without too much damage.
To prevent serious loss don't trade unless someone is ableand willing to provide you with a "stop loss". It is hard toget the ideal broker but you do want to increase your chances of success and "stop losses" are VERY IMPORTANT part of your system.
Ring the brokers and ask them whether they provide the service. Discount brokers are preferable if you have a small account otherwise the cost will eat your profit. You don't want circumstance to push you into placing MORE than your 10% into the trade. So do the numbers and don't worry about broker's advice - your system is your advisor..got it?
I've mentioned it before and I'll give you the link here. MarkMcRae has created, "Trading For Beginners". He gives a very good explanation of trading basics. I love my copy! He is onthe ball with his introduction into technical analysis.
Understand, if we were rational and unemotional the stock market probably wouldn't exist. Instead we are blessed with a means to earn a superior living, without the 9-5 routine!
Now you make sure you get your copy and read it..okay! Just before I give you the link make sure that when you get your copy you don't skip - "stop losses" on page 70.
Click here:
http://tinyurl.com/2k29q
This resource is essential for starters. I wouldn't stop with this one, but I mention it because it's easy to read and understand. The next one to read is this one:
"The Way to Trade"
http://tinyurl.com/2fgrv
We are going from learning the basics to the nitty-gritty of applying what we learn. Take your time. If you know your stuff and feel comfortable with it you can make your cash very quickly - believe me. So don't neglect these resources if you really want to succeed.
"The way to Trade" has been a huge hit! Remember when you study any of this material you are benefiting from many years of experience and a great volume of trades conducted by these traders. You will never be able to replace experience so thatis what you are really paying for.
The basics remain basics unless you learn How to apply the information. Knowlegde is useful, followed by a trading system you understand and is easy enough for you to use. Test every concept on paper first without"risk".
You will need a way to get end of day prices either from the paper or some data provider and then chart by hand or use computer charting packages to draw your price charts, with technical indicators to help you analyze the price chart.
Find a system - something you are comfortable using and build your skills over time. I have been doing my own swing charts and also using Metastock with technical indicators. I use a variation of the "123 System" to time my writing strategies. (You can get the "123 System" and 20 other bonuses bonus bytaking up the offer - see the author bio link.)
Now if you are following a stock make sure you get to know it's every move. I would suggest you only follow ONE stock.The reason is that you will start to understand it better and you will become more successful trading that stock. The same goes for any other trading instrument.
You should be paper-trading before you put any money on the line. Don't choose specs for this exercise....trade big companies...top 20, top 50, top 100. You need volume and liquidity so check the numbers and makesure your chosen stock has a BIG following and is a profitable company.
Build Your Trading Skills Use The Resource List:
1*Knowledge of the basics - not just technical analysis
"Trading Secrets Revealed" is a step-by-step trading road map that designs excellent money management.
http://tinyurl.com/4xml6
"Trading For Beginners" Reducing risk via position sizing(how much do I invest)and applying stop lossess.
http://www.surefire-trading.com/sft.php?offer=tutorxt007&pid=1
2* Using a trading system you feel comfortable with - testingit out thoroughly before investing money.
Learn About Trading Systems http://tinyurl.com/2fgrv
Get Trading Plans http://tinyurl.com/4ehhs
3*Starting off with stocks and building your skills and your knowledge and then trying out other instruments.
"How to Trade the Futures Market" http://tinyurl.com/2rcxz
Regards,
Joseph Sgro,
THE 10 Simple Rules Ezine
http://www.tutorhelp.com.au/ezine.html
P.S. Happy reading!!
http://www.tutorhelp.com.au/BLOG.html
==================================================
Copyright(C) Joseph Sgro 2005
Further this discussion by reading: "10 Simple Rules to Make Serious Money in
the Sharemarket and Keep it!"
http://www.tutorhelp.com.au/sharemarket.html
For more articles:
http://www.tutorhelp.com.au/articles.html
==================================================
posted by Learning Coach | 11:38 PM
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