Tag Archive | "Stock"

Stock Research – Another Hedge Fund Warns- Basis Capital – This Is Just The Beginning!!!!

Stock Research – Another Hedge Fund Warns- Basis Capital – This Is Just The Beginning!!!!

Wow, it’s just starting and it’s not going to stop. Basis Capital is an Australian hedge fund. They run about a billion dollars under management. What you have to keep in mind however is that hedge funds use LEVERAGE, big leverage. The average hedge fund manager in the United States is using 6 times the capital base of the money he is managing, as leverage. In the race for performance or the elusive alpha, some hedge fund managers are pushing the envelope and using as much as 10 times leverage. This can cause serious problems because when leverage goes against you, it’s DEADLY.

An example is now the latest announcements coming out of Basis Capital. Apparently this hedge fund was invested in the US home loans to investors are less than creditworthy. The hedge fund claims that the collateral in their portfolio is sound, but sound is a matter of judgment. Unfortunately for Basis Capital, the prime broker clearing for the hedge fund doesn’t agree with them. The prime broker has re-priced this so-called sound collateral.

What does it mean?

The hedge fund now has to go into a crisis mode to survive. Immediately many investors will ask for their money back. This is the step that kills off the hedge fund. In order to prevent a run on the bank, as they like to say, the hedge fund has announced that they may restrict redemptions, which is the right of the investor to withdraw their money at, will. If investors are allowed to withdraw their funds, the collateral securing the underlying investments usually collapses because other smart money knows that that collateral has to be sold in order to fund the redemptions.

Prior to originating a hedge fund, most hedge funds will install restrictive covenants in their investor agreement that build in what are called gates. These gates limit by quarter what can be withdrawn from the fund. It’s about self-preservation. In this case Basis Capital and its two hedge funds require 90 days notice before capital can be withdrawn. Once again this policy attempts to prevent a forced liquidation of the underlying collateral securing the hedge funds’ investments.

Basis Capital has warned that the true extent of their problems might not become evident until September. What does that mean? These people mark to market every day. They have the finest computer pricing systems in the world. PhD’s in mathematical modeling are a dime a dozen in the hedge fund industry, and yet this hedge fund doesn’t know where it stands financially. This is a breakdown in the system, and it has great meaning to the rest of the hedge fund industry.

What happened to Basis Capital is very simple. In the range of assumptions they used to make their bets they determined normal risk parameters. They did not give any consideration to the possibility that the investments they were making might, just might move outside their normal variability ranges. In other words they excluded worst-case possibilities from their consideration. The melt down of the sub prime lending market is such a possibility and it has HAPPENED. For an elaboration of this article, please see our website.

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Stock Trading Psychology

Stock Trading Psychology

Many of today’s highly successful traders will tell you that the general key to success in trading is to be able to comfortably take a loss. It is general knowledge among experts in the trading psychology field and among traders that the market is not predictable and it is safe to say that it never will be. In the world of trading, it is expected to take a loss; even those who are highly skilled traders know that it is inevitable. With that said, let us have a look at things you as a trader should be aware of, how you can take a loss effectively and use it towards the greater good of your trading world.

Trading psychology tells us that when a trader loses he begins to become somewhat of a perfectionist in his dealing. Many traders think that in trading, a good day will always be one that is profitable. Trading psychology experts tells us this is not true. A trader should define a good day as one where they have extensively researched and planned with discipline and focus, and have followed through to the entire extent of the plan. Yes, when a trader has mastered the art of accepting losses and working through them with a well thought out plan then good days will become profitable in time.

Because the art of trading in an unpredictable market fluctuates so greatly from one day to the next, experts in trading psychology believe that it is important that you concentrate on what you can control, instead of things that are beyond your control. Looking into the short-term you cannot expect to be able to control the profits of your trading. With that said, look at what you do you have ability to control.

You do have the ability to control the difference between good and bad days. You are able to control this factor by extensively researching the strategies you implement within your trading experiences. By learning to research your chosen strategies, thus controlling the amount of good and bad trading days you experience, you will, in the long-term begin to generate profits, which is the ultimate goal of every trader.

Trading psychology experts tell us that it is important to become realistic in trading instead of becoming a perfectionist. Perfectionist traders, relate a loss with failure, and will become obsessed with the failure, focusing only upon it. Realistic traders understand the unpredictability of the market and taking a loss is simply part of the art. The main key you must remember in trading psychology to be able to effectively limit your losses, instead of becoming obsessed with them. A common thing seen within the trading psychology world is that traders who are obsessed with their losses often have a hard time bouncing back from them, thus losing in the end.

Experts in trading psychology have organized three basic strategies you can use to effectively stop losses. These strategies are:

• Price Based
• Time Based
• Indicator Based

Stops that are priced based are generally used when the other two have not functioned. To make this work you will need to make hypothesis’s about the trade and identify a low point in that particular market. Then you will set your trade entries near your points, thus making sure that losses will not be overly excessive if the hypothesis fails.

Time Based stops constitutes making use of your time. Designate a holding period you allow to capture a certain number of points. If you have no achieved your desired profit within that time limit, you should stop the trade. If effectively used you should stop even if the price stop limit has not been achieved.

The Indicator based stop makes use of market indicators. As a trader, you should be aware of these indicators and utilize them extensively within your trading experiences. Look at indicators such as, volume, advances, declines, and new highs and lows.

Experts in trading psychology say that setting stops and rehearsing them mentally is a good psychological tool to use and will help ensure that you follow through.

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Changing Stock Brokers Can Be Dangerous To Your Financial Health

Changing Stock Brokers Can Be Dangerous To Your Financial Health

You need to find a stockbroker,or change brokers…but how do you know if your getting a good deal?.Sure… the salesman said it’s a great deal and you would get 10 free trades…but what’s the catch?.Guess what? The salesman is paid to sign up new accounts not to help you.I can tell you from personal experience…they “bend the truth”as much as any used car salesman,and so much more money is involved !!.

It pays to make sure you understand what you are getting into.you can save yourself from a horror show later.There is no such thing as a free lunch… so they must make up the money they don’t get on 7$ trades somewhere else.Many rules buried in the fine print are as convoluted and devious as the worst cell phone plan…and can cost you just as much!.

But how can changing stock brokers can be hazardous to you financial health?

Learn the pitfalls; do you know what to look for?.

Changing stock brokers can be hazardous to you financial health!!!.

Let’s start with this…it’s not all that fun or easy to change brokers !;unless you have only mutual funds or buy and hold positions.If you are a trader or hold option positions,be very careful before you move accounts that you know all the terms before you move.while it may seem that if you get into a bad deal with a broker you can just relocate to a new broker with the click of a mouse;in practice there is more to it.The system for transferring open stock or option positions is called “ACAT”. This is sometimes represented by salespeople as taking”a few days”.

This seems to be like when the garage says your car will be done by noon..plan on 6;30 or maybe tomorow.In my experience the quickest completion is 10 days.but this will vary by the number of positions in the account,and the brokers back office or “clearing broker”(some sub this work out..some have their own)they come into the new broker in dribbles and drabs over the time period,and the new broker must reconcile the balances /positions with the new broker.

During this time period YOU WILL BE UNABLE TO BUY OR SELL ANY OPEN POSITIONS.

They are in a kind of limbo where they cannot be traded by you at either firm.Is this very dangerous?you bet you life..what if market drops 100 points?ever heard of Murphys law?.what if stock goes up 10 points but you can’t sell,then goes back down the day before position are cleared to new broker?.well anyway.. you had time to practice kicking yourself!!

Here is another complication that can arise in this situation.what if the positions arrive from the prior broker and when the margin department at the new broker calculates you account balances they issue a margin call because they have a different margin policy.Oh you were told that all brokers have the same policy?..wrong!(more about that later).

This nightmare case would have you making forced liquidations as your freshman trade,further delaying access to your account.”welcome to &^$ # trade!!”.How do I know this?.you guessed it ;it happened to me and it cost me 0,000 in losses,in that 12 day period.Sure you can sue..but my advice?….as much as you hate to pay the commissions… or face the tax consequences.liquidate all open positions at the broker you are leaving,and either wire the cash or express mail the check to the new broker. you also save the service fees that many brokers charge for acat transfers by leaving with cash.and starting with cash.If you have spare funds in the bank and are concerned about a position in the old account moving for/against you ,you could open an offsetting position by setting up the new account in advance of your move, and opening the offsetting position BEFORE liquidating the old account .Do it with cash and you will have one less headache!

“A man’s got to know his limitations”

You 70′s movie buffs will know where that line came from!.What’s that got to do with stockbrokers?.The first step in selecting a broker you will be happy with is to be realistic about what you plan on doing in the account .This is because the brokers do vary as to the com commissions,margin policies,and fees they charge.By thoughtfully,and REALISTICALLY thinking about what type of activity will occur in the account you can find a broker who will suit your investment activity.

Don’t go with a broker with minimum activity levels if you are really a buy and hold customer..the fees will add up.If you tend to run margin balances,shop for the lowest margin loan rate..they vary a lot!If you trade options be very careful of the fine print when comparing commissions(more on this later)

Be aware of the brokers limitations.This is the truly hard part,and what I hope to shed light on in this website.Most brokers would rather you did not know this stuff,and they have a huge incentive not to tell you,why?because there mean?…No! ,the brokerage business is intensely competitive.I saw where bank of America is offering free trades.Humanitarians?,you know there is a catch!

Apparently the competition to loss lead;Leads the brokers to come up with hidden fees that(hopefully) will not be noticed.I believe they frequently are not noticed for two main reasons.One; people are intimidated by financial jargon,or are bored by it.Two;brokers have every incentive to…let’s just say accentuate the positive and forget to mention the not so good stuffNot to worry,the detective is here to help point you to the trouble spots!!!.please stick around and visit page two ,where some of the places where the bones are buried lurk.I will show you where to look.

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An Impending Financial Earthquake Is Coming. Is Your Stock Portfolio Prepared?

An Impending Financial Earthquake Is Coming. Is Your Stock Portfolio Prepared?

Your Investment Choices Now Will Determine Whether You Lose Great Wealth or Build Great Wealth in the Near Future.

Within the next 5 to 10 years, there is an extremely strong possibility that a Peak Investment Crisis will hit all regions of the world. I uncovered the likelihood for this crisis because my investment strategies do not rely on crunching numbers or charting technical patterns, but on uncovering money trails among the most powerful political, financial and corporate institutions in the world. Statistics and numbers are constantly manipulated and are frequently less than truthful. That’s why millions of investors that rely solely on fundamental analysis never build wealth.

However, the money trail does not lie. How you position your portfolio now will determine whether you will build wealth beyond your greatest expectations or whether you will have to postpone retirement and struggle for the next couple of decades.

Did you know that immediately before the Great Depression hit the United States, that U.S. stock markets had skyrocketed for about a decade straight and that unemployment was less than 1%? Did you know that immediately prior to the 1997 Asian Financial Crisis that hit the Southeast Asian “tigers”, and in particular, Indonesia, South Korea and Thailand, South East Asian economies were booming with high single to low double-digit growth rates as foreign investment flooded these markets?

In fact, immediately prior to the Great Depression, the outlook for the U.S. economy, at least on the surface, could not possibly have been better back then. But when the tide turned, investors got smacked in the face by a 2,000-pound bear and lost their fortunes overnight. And in Thailand, immediately prior to 1997, economic conditions were so rosy that the overall economic giddiness sparked a real estate boom, the evidence of which can still be seen today, more than a full decade later.

However, despite everyone’s giddiness back then, when the crisis hit, Thai currency lost more than 50% of its value in just six months and businesses failed left and right! Just drive through Bangkok, and you will easily spot empty shells of half-constructed office buildings and luxury residential buildings sprinkled throughout the city. When the crisis hit and funds to complete them dried up, these yet unfinished projects had to be abandoned

In reality, though the conditions that caused both of these crises had been developing steam for many years, all the average investor saw was the result, the loud crash that occurred when the steam blew the head gasket. In both instances, though the great majority of people lost massive amounts of wealth, the very savviest of investors actually built great wealth during these times.

And just like during past economic crises, this Peak Investment Crisis will undoubtedly present one of the best opportunities of our lifetime for savvy investors to also build great wealth in the near future. Clearly, an economic earthquake of great magnitude can happen again, and when many indicators below the surface point to such an occurrence as an extremely high possibility, only the most unwise of investors would do nothing to prepare for it. In fact, I would argue that this brewing Peak Investment Crisis is even more dangerous than either of the two financial crises I have previously mentioned because this one is more likely to affect the global economy on a much more significant scale.

Why?

Since 1997, hedge funds and financial derivative instruments have exploded, growing into cumulative market sizes that exceed hundreds of trillions of dollars. During the 1997 crisis, the total global scale of these financial instruments was like a baby monkey back then compared to their King Kong-size today. This explosive growth in financial instruments has linked asset classes, industries, and global markets like never before, allowing a fiscal crisis in one region to have a much more pronounced domino effect in global markets today. So whereby in the past, a small rock that dropped on top of a snowdrift might have caused a local financial disaster that trickled down to other economies, this same rock today is capable of creating an epic global financial avalanche. And what makes this crisis near inevitable is that the rock that is about to drop is no small stone, but instead a massive boulder.

How to Ensure that You Build a Great Fortune in the Stock Market Instead of Losing it When This Crisis Hits

For the reasons discussed in this article, 90% of investors will fall into one of two categories over the next 5 to 10 years and beyond. They will either build great wealth or lose much of their wealth. Due to the global scale of this imminent crisis, there will be very few investors that won’t fall into one of the two extreme categories of building great wealth or being mired in financial catastrophe. How do you ensure that you are on the proper side of the fence?

The answer is to manage your own money, period. No ifs, ands, or buts.

Handing your money to a global investment firm is fine if you have already built your wealth and are no longer interested in continuing to build it, but even then, you are still likely to lose great amounts of wealth when this crisis hits. And what if this crisis never materializes? Even though we strongly believe that conditions today make this crisis near inevitable, even if by some miraculous intervention of various world governments, it does not happen, learning how to manage your own money will still give you a great chance of achieving 20% to 25% or more annual returns year after year. And if this crisis materializes as we expect, well then, during this time, your returns should leave 20% to 25% annual returns in the dust.

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Stock Investing – Midterm Elections Make Drug Companies A Sale

Stock Investing – Midterm Elections Make Drug Companies A Sale

Stock investing is tough enough when you have to deal with the specifics of a company and an industry. When you throw politics into the equation it becomes a whole new ball game. Now stock investing can be a crap shoot at best. Let’s take a look at what’s going on currently, and you decide. First let’s look at a little history.

For the better part of 50 years, the drug industry has been nothing short of a fabulous stock investment. Whether it was Johnson & Johnson, Pfizer, Merck, or any one of a dozen other drug companies that developed into giants, you would have made a killing with these stocks. One of these companies Johnson and Johnson is the best performing publicly traded stock of the last 100 years with a compounded growth history surpassing 15% per year.

It was a simple concept, but yet difficult to execute. These companies created drugs and then marketed them via advertising to a captive audience of doctors, and their captive audience the patients. As a stock investment, the industry was basically unsurpassed. The reason is that every other high tech investment as a rule had a longevity of about 7 years. Technology can obsolete technology very easily as you know.

This was not true of drug manufacturers, where it takes a long time to bring a drug to market. You then have a long patent life, and usually you can extend that patent life at least once. Big Pharma as the drug companies came to be called were making a fortune, and the stockholders with them. When it came to stock investing, you couldn’t own enough of these wonderful companies.

It all started to change in the 1980’s. A marvelous new, but small industry started to emerge called the biotech industry. Rates of growth for Big Pharma started to slow down. Something was needed to kick-start the drug industry once again, and the Federal government was more than willing to lend a helping hand.

By the 1980’s government had become big sponsors of drug research. Our government had poured billions of tax payer dollars into supporting basic and applied research at the college, and university level. Myriad PhD’s were hired, laboratories built, and graduate students employed to go find, and develop the next marvelous drug.

Congress then passed a law that mandated that the discoveries taking place in these government sponsored research labs (usually the top 50 colleges in the United States) would have to be given to the giant drug companies for final testing, and distribution. This meant that Big Pharma would be the recipient of all this largess bestowed on the government labs. The giant drug companies would be the direct beneficiaries of tens of billions of dollars of citizen sponsored research. It was the best of all worlds.

Throughout the 1980’s, and 1990’s, these actions sustained the growth of the major drug companies. Unbeknownst to the general citizen, the major drug companies come up with less than 5% of all the major drugs sold in this country. The real creators have been those government sponsored labs, and the small bio-tech companies that have been spawned everywhere.

Even with the giant government outlays, by the beginning of the 21st century, we started once again to see a slow-down in growth rates for Big Pharma. What was needed was a shot in the arm. In 2003, the federal government supplied the adrenalin, and the drug companies were only too glad to accept it. Congress passed a new part III to the Medicare law which meant that the government was going to start picking up prescription drugs for citizens 65 years of age and older. This program would cost tens of billions of dollars.

More importantly, the government would not be allowed to negotiate the prices of the drugs that they would pay for under the act. This meant that the drug companies would be able to charge BILLIONS OF DOLLARS more than if they had to negotiate. It was the ultimate bonanza for the drug companies, and their profits were inflated by billions. As an aside, the program also called for insurance companies to come in between the user which was the senior citizen, and the Medicare program. This was a successful attempt to also reward the insurance industry with billions in profits.

Democrats may have last laugh?

The problem is that it seems likely that the Democrats will take over the House of Representatives in November. If successful, they have already stated their intent to change the program immediately. The Democrats want the federal government to now have the right to negotiate lower drug prices on behalf of the senior citizens. This will result in lowering drug company profits to the tune of billions of dollars.

Here’s the wild part of the whole deal. For decades the Democrats wanted to create a prescription drug coverage program as part of the Medicare Program. They couldn’t get it done. They tried, and tried, and failed, and failed. It took the Republicans to do it, but they only did it, to benefit the drug companies, and the insurance companies as well. Now that the Democrats may take control, they will have the opportunity to roll back the drug companies participation in the outlandish profits they are making. At the same time, the Democrats will be able to keep a program in effect, that they desperately wanted, but could never make happen on their own.

It’s fascinating how what seems to come around, always goes around. Our advice is don’t be caught dead owning drug stocks if the Democrats take over the House in the November election. They are in for some ride on the downside, as we all will be watching the granddaddy of federal giveaways get taken away.

Goodbye and Good Luck

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Online Stock- Swing Or Stay The Day

Online Stock- Swing Or Stay The Day

Perhaps one the best perks to being an online trader is the convenience of being able to buy or sell with just the click of a mouse. The more the traders get educated they can decide if the want to swing trade or day trade. It seems that the main issue they are up against is timeframe. They need to decide if they like the longer term investing or the rapid fire trades.

The day traders are groomed to do the instant desperation or the instant gratification which depends on the outcome of the transaction. The day trader can move around and watch different stocks in the same industry so he can take advantage of sudden swings in the market for profits. By using the technique you eliminate your exposure from holds. This can be a tiring task as you have to sit in front of your computer for hours on end. If you do frequent trading you run the risk of stacking up large bills for your trading fees. So it goes without says that for day traders, trading fast also means to trade smart.

When a day trader has to leave the comfort of his or her computer you can be sure that they are still connected via cell phone or some other mobile device as they can get updates wired directly to them. Day traders are much like hunters in a sense much like the thrill of the hunt. They are driven by the rush of the excitement just as much as the profits from beating the other traders out on a winning score.

The swing trader has it a bit different. They look for cycles and they always hope that they are in the right one to get the most profits. The swing traders use technical analysis when making their trading decisions. They may even use such things as options and the future. They increase their risks when they wait for the right moment. Part of their strategy is to wait out the fluctuations rather then move on the trends. They also do not have to pay as much in fees as they trade less often.

There is also the long term swing strategy. This type of trader depends on the information that they get from the indexes coupled with the fundamental and technical analysis to make their trading decisions. The longer the time span is of weeks or even months can help the long term swing trader in giving him or her some protection against the quirks or blips in the market day which usually are not real trends. There are just some stocks that need time to level out, which the day traders may miss. The thing that the swing traders miss out on is the fast break day trading style. This can be recovered with some patience and perseverance. When the long term swing traders wins it is usually a big win which make it all worth while.

When you go from the day trading to the swing trading it can be like cutting teeth. It moves slowly at first but it gives the trader time to learn the ropes and they can become an expert in one or more industries. The new long term swing traders can take the slower pace which is preferred as they have a chance to make good profits from the online trading.

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Critical Small Business Decision #7: Stock Inventory Or Dropship Product For Your Online Store

Critical Small Business Decision #7: Stock Inventory Or Dropship Product For Your Online Store

Starting a business online could be much quicker than starting one offline. However, as a small business owner, you need to be prepared to spend a fair amount of time and energy to make your business profitable. After all, that is why you’re going into business isn’t it?

An online business is still one of the greatest work from home business opportunities on the planet. You may even have a grand vision for an online store, but find yourself struggling to handle the basic details of getting your store up and running. One essential detail is selecting the products you will use to “stock” your store. You will also have to decide if you want to keep an inventory or want to use dropshipping. Starting a store online can be as challenging as starting one offline, but it if you understand what’s involved, this doesn’t necessarily have to be the case. By identifying and using the right resources, you can make your start-up a smooth one.

The key to having a profitable online presence instead of just another online enterprise is creating or locating good quality products that you can sell for a profit. One way to do this is through drop shipping. Drop shipping allows small business owners, like you to establish a professional relationship with vendors who wholesale the products you want to sell. These vendors will ship customer orders directly to them rather than you having to stock inventory and do the product fulfillment yourself.

Prior to opening your store, it is critical to have the foundation of your business firmly established. Organization must be an integral part of this process. As your list of vendors and dropshippers increases, you should have all of their contact information in a convenient location for easy access. Don’t short-circuit this part of the process, it is amazing how much time you can save by being organized and by having established contacts within your product market. Take the time you need to build your store right from the ground up and business will virtually run itself in due time.

A number of factors will contribute to the ultimate success of your business whether that business is online or offline. The Internet, especially, is often viewed as a way to “get rich quick” rather than as a way to build a good business with a greater reach. You will get out of your business what you decide to put into it. Today’s technology allows small business owners to build their businesses faster, but it

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Tell Me About Offshore Stock Trading And Online Banking?

Tell Me About Offshore Stock Trading And Online Banking?

When you are thinking about offshore stock trading and online banking you might consider The Commonwealth of Dominica. Dominica offers one of the best tax havens, and offer offshore banking and asset protection in total secrecy. Dominica has some of the newest offshore legislation in the world and is more advanced than most other jurisdictions, technologically.

All offshore bank accounts will be opened in the name of your offshore company, with help from their law offices and Dominica’s new company formation process. Your International Business Company will be incorporated with the documents sent back to you by courier within a few days. You may have bearer shares with only one director of your company for incorporation.

You will also have your choice of offshore banks in 5 jurisdictions, including Dominica, for offshore stock trading and online banking. You will have internet access to your account from anywhere in the world. You will also receive free brokerage account documents as part of your account package.

Why should you choose an offshore stock trading, online banking, offshore company in Dominica? You will need only one director and one shareholder to get you registered as a company, director and shareholder can be the same person. A company secretary is not required by law. Bearer shares and non par value shares are allowed. There is no limitation to the value of Share Capitol and incorporation and annual fees are not dependant upon the Share Capital amount. The annual fee is due on the day the company was incorporated. Share capital can be in any currency, and the State guarantees tax exemption for a minimum of 20 years. Annual shareholder meetings can be held in any country in the world and there is no need to come to Dominica to incorporate your company or conduct business.

You should choose Offshore Company in Dominica because there are no taxation treaties with other countries so there is no need to exchange information with other tax authorities. You will be able to choose from a wide variety of names for your new company. Dominica offers the lowest prices on the market for IBC incorporations and offshore services. Significant discounts are available for clients who buy package services. You can incorporate online and pay online with Visa, Master Card, Discover or American Express; if you want to remain anonymous, you can pay by Western Union, Wire Transfer, or Money Gram. There is also an option to pay by wire transfer.

The process of incorporation with Dominica will not take more than 24 hours. Your company will be incorporated with the Government Agent with years of experience in offshore services. You will incorporate a company from the country of origin, there will be no middle man. This will save you money and make all of your business activities confidential. If you are serious about becoming incorporated in Dominica, you will be able to choose from many packages they offer for offshore stock trading and online banking.

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What Makes A Successful Stock Trader?

What Makes A Successful Stock Trader?

I’ll be telling you about 15 characteristics of a very successful trader.

Trading in stock isn’t everyone’s cup of tea. Some people can do it and some can’t. Even among the some who can, not everybody can be successful at it. While there are no hard and fast rules on what makes or doesn’t make a successful stock trader, those Wall street Wizards that you hear about who made the most in the least amount of time, all appear to have certain characteristics in common.

1. Successful stock traders are able to go against their natural instincts.

2. Successful traders have a simple system. No matter which technique you use as long as you stick to it. A Successful trader knows their technique and makes trades based ONLY on their system. “The secret to being a winner is consistency of purpose”. You want to improve a separate strategy for getting into a position and for exiting one.

3. Successful traders are risk Adverse. Successful traders don’t like losing money and prohibit themselves before losing too much, even if it means admitting they made a mistake.

4. Successful traders are willing to make mistakes. Successful traders have the right and ability, not to do the right thing, but to do the wrong thing. It’s the ability to make your own mistakes.

5. Successful traders don’t care about being embarrassed by taking a loss. Successful traders expect to take losses and know when to cut them.

6. Successful traders know, or learn how to explore stocks. Many traders only use precise analysis, but you may want to learn to use fundamental analysis as well.

7. Successful traders lead balanced lives. We all know the pleasure of the pursuit and the stock market can be addicting, a successful trader is one who knows when to move away and can.

8. A successful trader is Patient. A successful trader let’s winning positions run, but is able to back out when proven wrong. Patience can mean resilience, courage, and conviction for when markets go against you.

9. A successful trader has a biting Desire to succeed. Triumph takes steady work not a chaotic effort, a biting desire to succeed can make all the difference in educating yourself about what you want to know and sticking to your strategy when the going gets rough.

10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he isn’t in the mood. Discipline also means Sticking to your strategy, not abruptly buying or selling on a whim, or because of a” hot tip”

11. A successful trader knows the difference between defensive and offensive behaviour, and when to use each. – protect your money first, profit later.

12. Successful traders don’t eavesdrop on rumours or get emotionally involved. To be a successful trader you have to be very hard on yourself. Your have to be able to resist the urge to prove you are right and be ready to make mistakes. . You also want to be able to not let emotions affect your decisions. Setting up stop loss points for every decision you make is something that you are going to have to do. That will mean more than occasionally admitting that you are wrong. You and your portfolio will survive and you will be able to get back into the position again when trends signify that the time is right. You will have to learn to disregard any emotional ties you have to your stock and make quick stock trends your master. You will miss the lowest entry points and the top selling points, but you will be able to sleep at night. You will need to learn to get out of a stock position before your profits turn into losses.

13. A successful trader knows themselves. Successful traders must be attentive of their strengths and weaknesses. Your strengths and weakness will become very important. Play on your strengths when you can.

14. A successful trader knows their investments. Your investments are almost as important as you are. Know the past history of the stock and their strengths and weaknesses as well.

15. A successful trader sticks to the rules. The system is there for a reason. Nothing can ruin a successful stock buyer as quickly, or as certainly as flouting the rules.

Get to know these 15 characteristics and you are on your way to becoming a successful trader.

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Use Your Cupboard As A Stock Picker

Use Your Cupboard As A Stock Picker

There are experts in the field of making predictions on stock performance. Another expert in the field of some stocks may be you the consumer. Think about it, you pick products that for various reasons are your favorites. Your kitchen cupboard or shopping basket may be a very good prediction on the long term performance of the company stock.

Company brand products did not become staples in most homes because of clever packaging and cute commercials. The brands we as consumers rely on are on shopping list because the particular product is tried and true to its word. The household purchaser can make or break a product. The true clout of the American consumer is not to be underestimated in the Stock Market.

On a larger scale, you as the consumer may have a grocery store that over the years you may find carried all the products mentioned above. The convenience of a grocery store that carries all of your favorite items save you time and money in traveling around. The success of Wal-Mart, Target and other big box stores is the convenience of one stop shopping. The prices for brand names in the big box stores are good. Other personal favorites in shopping venues may include Safeway, Albertson’s and Kroger. All of these companies are listed on the stock exchange.

In the brand name product area you may need to look on the packaging to determine the name of the company to find the stock. Some favorites like Clorox, Johnson & Johnson, and others are listed under the familiar company name. Due to mergers and acquisitions many name brand products have become subsidiaries or subsumed in a larger company’s product line. All you need to do is check out the references on the label or customer service information that is located somewhere on the product.

The idea of you as the consumer being the best stock picker extends to larger items. You spent some time looking for an automobile, washing machine, refrigerator and like items. You chose a particular brand for a reason. The factors could be value, reliability or your past experiences. The reason could be a combination of all factors mentioned above. Value your decision process and consider investing in the company that produces the product.

A cautionary note is that even the best company may have a down year. The reasons could be management changes, and other economic pressures. The product is still good, but the internal structure of the company needs a quick fix. In these circumstances make a decision whether you want to weather the storm or wait until the company gets its act together. Sometimes the stormy days of a company can be a buying opportunity.

In conclusion your cupboard or your shopping cart may be a good indicator of the stocks you should consider choosing. The other good aspect of investing using your cupboard is personal satisfaction. As a consumer you have the dual role of being an investor in your product. It is a good feeling to put your dollars into growth instead of simple consumption.

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