If you are new to trading, then you should definitely take a look at trading systems.
Here's why:
Every minute more than 150 Million Dollars change hands in the electronic index futures markets like the e-mini S&P and e-mini NQ. You can win or lose thousands of dollars in a few minutes; the futures markets can make you rich in a few weeks or months or wipe out your account with no mercy.
If you want to compete in the “game of games” and play against the best traders in the world, then you need to get ready. Too many gamblers are entering the arena without any plan or strategy, completely unprepared, and that's why they lose.
Trading a system will dramatically increase your chances to succeed in trading, because it eliminates five of the top six reasons why unprepared traders fail.
Here are the top six reasons why traders fail,
and how a trading system eliminates them
Let's take a look at the reasons why traders lose money:
1. Lack of a Trading Plan
2. Lack of Discipline to Follow the Plan
3. Failure to Control Emotions
4. Failure to Accept and Limit Losses
5. Lack of Commitment
6. Over-Trading
By all means you have to avoid these mistakes if you want to win.
Here's how a trading system eliminates 5 of the 6 top reasons why traders fail:
Solution #1: Having a trading plan
Having a trading system means having a pre-defined set of rules you have developed to guide your trading. Therefore you HAVE a trading plan, eliminating the No.1 cause for failure.
Solution #2: Following the trading plan
The easiest way to follow a trading plan is to automate it. Almost every trading system can be automated, and you could let the computer trade for you. You won't have to worry about your discipline any longer, as the computer mechanically trades every setup for you.
Solution #3: Controlling emotions
Trading with a system removes emotions from trading. If you don't have a strategy and you try to make decisions when the market is moving, you are liable to become emotionally attached to positions. You may experience panic and indecision when the market does not move in your favor, as you do not have a prepared response. That's when most traders lose their money. If you follow a system you will know what to do no matter what the market does.
Solution #4: Controlling your losses
You probably have heard the saying “Let your profits run”. Unfortunately most traders let their losses run. A trading system will get you out of a position when the predefined stop is hit. Unless you override the system to “give the trade a little bit more room” it will stop the loss and therefore limit your losses.
Solution #5: Commitment
You won't believe how many traders show a lack of commitment and therefore lose money. Lack of commitment means that they stop trading after the first loss, and don't give their system a chance to make back the money they lost. Trading is not a one-way street, and losses are part of our business. If you can't accept the fact that there will be losses, you shouldn't trade. Fortunately a trading system can help you to overcome this problem; an automated trading system continues trading according to the rules, and therefore adds much more consistency to your trading.
As you can see, five of the six top reasons why traders lose money in the markets are simply eliminated when you start trading with a system.
Without any guarantee, your chances of making money rise incredibly when starting with a profitable trading system.
Hope that helps.
For the beginners which one will be better… Intra-day trading or Long term trading..??
But you also need to ask yourself how much could you lose.
If you ignore the risks you'll be taking you won't last too much time on the market.
About the intraday or long term trading: basically the best trading strategy is the one that fits your personality. But keep in mind that for short term trading you would need much more than Rs5000.
Good luck on your trading
Seriously, that is how most stock tips work – so be very careful.
PS – MSTR is a very good stock, I bought at $108 in October, and it has hit $130 several times since then.
If some make this a Career or job on the side How do they make money fast enough?
OH YEAH uh How much Cash do you need minimum to get started really?
A model portfolio of winning stocks would look like this:
1. Financial Stock: Goldman Sachs
2. Energy Stock: General Electric
3. Biomedical Stock: Teva Pharmaceutical
4. Technology Stock: Google
5. Retail/Consumer Stock: Coldwater Creek \
This is just my opinion about how to begin investing in a conservative, winning way.
Here is also the link to a great website that is very comprehensive in teaching novices how to invest:
http://investopedia.com/
Learn how to invest:
1. Do not chase past returns. People that buy stocks or funds because they have done well in the past are doing exactly that.
2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.
3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.
5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund. Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.
6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.
Though I understand that my retirement is important, I don't see how riding in a fund that tanking is logical. Why not go into stable when the market is down and go back in when it's up? Can I rely on the fund manager to do this? My goal is to get 15% return and keep it there. I want to retire comfortably, but I want my money to work harder than it is now at 9-10%.
If you dislike the 401(k) restrictions (placed on you by a company that are apparently trying to protect you from yourself!) then go work somewhere else!
Presumably you have all the data for what you've been TRYING to accomplish, so try this: get the historical data for all the funds that are available to you, and actually SEE if the way you think you can make more money actually works! Don't forget, you pay a FEE inside the fund every time you switch from one investment to another, the folks executing your trades are doing it to pay their rent, not to maximize your return!
To get the "most out of your money", if you are a "young person" (just a wild guess), put 100% of it in the MOST volatile fund option you have: that way, your payroll deducted contributions will buy more when the price is down, and less when it's up. Assuming the trend is up (long-term), you'll make out like a bandit without playing silly-buggers.
(P.S. My 401(k) is currently invested 55% in Fidelity Contrafund, 20% in Genesis Bond Fund, 15% in International, and 10% in a junk bond fund. I've had the same allocation for 3 years, and YTD I'm up 19.2%….with no transfers & without a single trade other than the "buys"!)
Quit trying so hard, you are only hurting yourself!
they required a min cap contribution so they cashed out my check, and
now they are playing dodge ball, if the firm does not return your
capital,where can you file a complaint aganist them,they are LLC, and
members of PHLX,SIPC
http://www.saveyournestegg.com/scam.html
You say you are doing OK – are you comparing your returns to their proper benchmark?
I recommend Vanguard for several reasons. They are client-owned so they do not have conflicts of interest with clients. They stayed out of the scandals. Their costs are very low. They are set up so that active trading is not allowed (so you don't pay the costs for active traders). They have excellent funds. Their philosophy is 'buy and hold'. They have a wide selection of mutual funds and ETFs. Their index funds are very well-managed (often the expense ratio is partially offset). They have excellent customer service.
The thing is if you are trying to day-trade with $2,500, the commissions are going to eat up your entire investment. It will probably cost you $25 to buy and sell. The less money you put in, the higher your break-even point becomes. I never put less than $3,000 into a single stock or you just can't make any money off of it.
You also picked a terrible time to start trading my friend. Wait until the recession is over. Things are going to drop at least another 15% in the coming weeks. Your "day trading" will become "month trading" while you sit and wait for your stocks to come out of their loss positions.
