Posts Tagged ‘stock trader’

Investor trading and the tradeoffs between investment returns and investment portfolio risk

When you make family investment choices and financial investment decisions, individuals should deal with the historical fact that, historically, conservative financial investments have yielded significantly lower investment portfolio returns than riskier investments have delivered.

With returns adjusted for risk, you simply cannot get high returns with low risk. As people take on more investment risk, you could be able to invest more and save less, due to the fact that the investment return on assets you hold historically has been greater than a lower risk set of personal investments. On the contrary, you need to realize that the expected financial outcomes are less certain.

On the other hand, when persons undertake lower portfolio risk, persons need to expect to increase savings and to have a higher investment contribution rate. However, the expected results are more likely to have a more sure outcome. The choice about how to select a personally appropriate balance comparing investment portfolio returns and risk is part science and part art. However, this is not easy, because the future is completely hidden, until it arrives.

Investors must carefully select a retirement investment strategies based upon their individual risk preferences.

A person can test these alternative strategies by modeling scenario projections with a comprehensive financial planning software tool. With historical asset return data, a sophisticated financial planning software tool with a future value calculator demonstrates that a selection of investment assets that emphasizes bond and cash assets will usually appreciate at a slower rate than an asset allocation favoring equities.

Long-term success with less risky assets will depend far more on continued high rates of saving rather than on higher hoped for investment returns. This requires much more personal financial planning discipline to sustain as the years go by and decade-after-decade. In contrast, stock heavy asset portfolios are more dependent upon investment portfolio capital gains. Neverthess, these stock focused strategies will also require significant savings — just at lower rates than a less risky allocation of investment assets would.

Sophisticated financial planning software with a personal finance program is needed to produce a fully comprehensive family financial strategy

To generate a very high quality long-term money management strategy demands that you use the top financial software with the leading financial investment software and the best financial planning software program. Look here to choose the top all-in-one personal finance software tool home PC program with excellent roth ira calculator software, excellent financial budgeting software, and the leading investment calculators for your do-it-yourself lifetime personal finance planning activities.

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Make Money Trading Even When the Market is Down

 

One of the core questions my coaching clients have asked me over the past few months is: “Can I still make money in stocks with the market down like its been?” The answer is yes, or no, depending on the type of investments you have.

 

If you hold stocks, stock mutual funds, or your investment is in the standard asset allocation accounts the answer is probably no. The reason for this is that these large accounts are regulated and do not allow short stock positions. Therefore, if the market declines in the next 3-5 years, as it most likely will, your account will lose money year after year.

 

Short positions, however, will allow you to make money whether or not the market goes down. But you can only take advantage of short positions if you trade through an individual account.

 

If you trade through your individual account rather than a fund, it is possible to for you to take charge of your own investment and make money in the stock market almost every day. This is because regardless of the direction a stock is moving, you can make money, by buying if you expect it to go up, or selling short if you expect it to go down.

 

If it’s that easy, why isn’t everyone doing it? For one thing, it requires approximately $25,000 to set up an individual account. Some people don’t have the funds, or are reluctant to risk it in an individual account. And, it is true that stock trading for a novice can be very challenging. If you do not know what you are doing, you can lose all your money very quickly.

 

There are tactics to alleviate these two concerns of the novice trader.

 

First, find a trading program that gives you low risk trade picks. The program I use and that I recommend to my coaching clients has a 31 year average experience level for its trade pickers. This means that you can just follow their suggestions and are fairly assured that you will make a profit. And, if you also set your stops at a low risk level, your loss over time will be small.

 

Secondly, it’s important to find a program that walks you through every step to success. To illustrate, I teach a nine day course where my students are taught each and every step needed to successfully trade stocks on their own, no matter if the market is up or down.

 

Regardless of the system you choose, if you make sure that it has experienced advisors and a program that walks you through every step of the way, you can be smiling all the way to the bank while everyone around you is moaning about the poor performing stock market.

 

To read about other lessons I learned in my fifteen years as a day trader and coach, as well as tips and techniques for becoming successful at stock trading, even in a bad economy, read my free report “From Video Junkie to Day Trader,” and learn more about how you could be trading stocks profitably in as little as two weeks.

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Getting to the Truths of Stock Trading

There are a lot of wrong ideas buzzing around about the field of stock trading that arouse new trader’s doubts and keep others from pursuing the field at all. As a successful trader for over 15 years, I prefer to take a more positive approach and deal with the prevailing truths that exist in the field of stock trading.  Here are just a few. 

 

1.  You will be successful at stock trading if you can keep your trades consistently low risk over time. Sure, you might miss out on some of those too good to be true, windfall trades that all the movies are centered around.However, I have discovered that searching for that godsend trade does nothing but result in a horrendous loss that can completely demolish the portfolio you have been working so hard to build.Better to stay lower risk with steady profits over time if you are looking to make stock trading more than a hobby.

 

2.  You don’t have to spend all day trading to be extremely successful.It does not have to be a nine to five job.Now, don’t misunderstand.I’m not implying that stock trading is another make money while you sleep angle.  It takes time and effort to learn the systems needed to achieve success at stock trading. But, by using GAP trading capably, I trade for two to four hours per day, plus one more hour of prep time.And, I earn a great living.You can too, if you can find the right process to do so. 

 

3.advantage of the experiences and knowledge of other successful traders can quicken your accomplishments a great deal.  Don’t start from scratch because it will take you 10 or more years and a lot of money to make all the mistakes others have already made.It is just resourceful business sense to build on the knowledge of others.Don’t reinvent the wheel?  Instead, read books by successful traders, take classes, find mentors, and use the wisdom of others to make your road more pleasurable and secure. 

 

Stock trading is often portrayed as mysterious and hard for “regular guys” to understand.Take it from a regular guy, that idea is not correct.  With the right systems in place and a working knowledge of the basic truths of stock trading, anyone can be successful. 

 

To read about other lessons I learned in my fifteen years as a day trader and coach, as well as tips and techniques for becoming successful at stock trading, read my free report “From Video Junkie to Day Trader,” and learn more about how you could be trading stocks profitably in as little as two weeks. 

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September 2010
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