Selasa, 05 Maret 2013


Losing to Win: The New Investment Strategy

There is a bit of a learning curve in the world of stock markets, particularly when it comes to higher risk investments such as day trading. This means that you must give some devotion and lose in order to win. Such a method is usually so much appreciated since it gives you a future experience to learn from.

What this means therefore is the fact that for you to invest and become a good investor, you have to be open for some losses especially in the initial stages of your investment. This usually happens when you are still trying to get a footing of your own in the market.

The good thing about these losses is the fact that you will be in a good position to learn so much from them, and you will use the lessons learnt to gain some real experience in trading in the financial markets. The main idea about losing to win is that this spent money in learning the ropes will turn to a well spent investment once you learn the ins and outs of trading. This lost money will not be lost in reality, but will be obtained in the future as money earned in a different way. And you will learn how to earn money and make great investments from just some dollars that you will lose.

About 95% of traders fail. And those who earn good money, they have lost some money in the run up to their gains and as a result they have ended up gaining more and more. This is one of the trading standards that though not popularly mentioned, usually works for most people. Nobody wants to get into an investment where they are sure they will make losses, while at the same time we all want to invest and get the money running in so fast.

In order to succeed, you must pay attention to details, make observations and analysis for the long term. This will help you to make a balance of what you are earning and what you are losing, and at the same time you are making different analysis to get better and better toward success.
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Senin, 04 Maret 2013


Before Starting to Trade, Do You Know Your Broker?

In order for people to start trading, they need to research on their investment broker. The investment broker is someone whom you shall be sharing important information with. Therefore, people require knowing more on their investment brokers before trusting them. In earlier times, it was easy to do so because the investment broker had their achievements well arrayed in books and the clients they serve. However, with the current age of online investment, there are things that have changed. Online trading has simplified trading, but also there has been an information explosion that makes it hard for all information to be accessed. Therefore, ask yourself the following questions before taking in a broker. The broker can answer some of these questions.

• Brokers have tools that they use to perform their duties. These tools are necessary in order to make wise investment decisions. They will include news, charting, quotes, advanced order types, and level 11 data. These specific tools are a must and the broker has to produce complete evidence of having such tools.

• The speed of execution is important because the of online trading. The orders need to be placed at a reasonable speed because the trading is being done online. Therefore, the person who requires to have their stock traded has an advantage when the transaction is fast.

• The broker needs to explain how they shall give you control over your shares. There are methods used such that you can choose the destination of your investment through online means.

• There are payments that are given for directing payment to a certain sector in the market. This may prompt the broker to make biased investment decisions. Therefore, make sure that the broker does not go for such options.

• The brokers should have a trading demo. The demo is required to teach people about how the trading site operates. Therefore, you will need the demo to learn how to trade your stocks.

• The software that they use should be easy to use and handle. Sites that are heavy and take time to load even when you have a very fast internet connection may be detrimental to your investment

• Is it possible to trade after hours? It is important for people to continue trade when the brokers have closed their offices.

• Look for all the fees adjustments that need to be paid. The broker should disclose all fees including hidden fees.
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Minggu, 03 Maret 2013


Investment Strategy: The Investor's Principles

It is fascinating how the stock market is unpredictable. It is filled with a lot of mellow drama such that people are always seeking predictability, scapegoats and blame. The investors add to the melodrama by being controlled by the media.

However, the Stock market should be viewed differently. It is a place where every person is entitled to reasonable returns. Investors should understand that there is no market with, which has consistent rising prices. Even the bond market has no continuous rising interests. Therefore, this is a mythology of investing.

However, the strategy of investing is simple. Even Wall Street cannot let out the secret. An investor should be careful not to be controlled by the media. They should follow the prices of the market. When there is an increase in the prices, you should sell the prices to make a profit. However, at one point the prices will fall. It is at this point that an investor buys the stock to replenish his portfolio. This strategy requires patience because investment is long term.

What is important to note is the working capital. You should take care to reposition the working capital and your portfolio to achieve the goal of making profits in the future. You should manage your portfolio, unlike DJIA. DJIA did not manage its portfolio leaving to become unproductive investments for a long period. This is a pace that no investor can afford. An investor will need to have highs and lows. At the different moments, the investor should counterbalance this stock to ensure that he is maximizing on the opportunities.

Therefore, there are five simple Asset Allocation plans for your investment. These are known as "The Investor Creed".

• I need an investment that fully utilizes my equity/ fixed income asset allocation.
• All the securities that I have acquired should be for sale generating a cash flow for a later investment.
• I am not worried with a zero cash balance, because it is invested.
• I am happy when my cash is at 100% balance for I know that I have made a huge profit from the sale.
• I shall always take advantage of a profitable investment.

Manage your portfolio properly and see you cash position rise. Sell your overpriced stock and get profits along with everyone else that managed their cash. Do these before Wall Street starts putting counter measures. This is "smart cash" from interests, dividends and profits waiting to make more cash.
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