There are millions of News sites on the web but a lot of them just repeat content from other sites, so which one is original and comes up with ideas that can really be traded? Here are a few we like a lot since these websites all have something we need for our trading style.
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Days like these are most interesting as far as risk management goes. Most of the times stock prices follow a chaotic pattern. Forecasting them is not easy if at all impossible but sometimes subtil changes in the surroundings make things forcastable. This happens when Bruce Watson of the Daily Finance Blog posted the article: Food Shortages Coming? Famed Investor Jim Rogers Thinks So The Article deals mostly with Jim Rogers opinion about the rise of commodity Futures because of an upcoming shortage in Food. But that´s not the point that caught my eye.
What can I say about the book? The reason is very simple. When people start out as traders they always have one goal. And that is to make money - preferably lots of it. People have different ideas but most often we hear something along the line: “..i want to be able to make a living trading…”, and “…i have this amount x right now but at the end of the year i would like to have doubled it…”. Now this is all fine but how do you reach such a lofty goal? Let´s have a look at a few ways: Today I want to show you how I create overnight positions in trending stocks. Like in every investment you first have to choose an initial risk stop that doesn’t threaten your account, but unlike intraday trades it is important for overnight positions to stretch the trading range. Phil Town reminded us in his last post about an important market fact: “The price of a business is all about the buyer and seller’s joint agreement on the near term future. If it looks rosy to both, the price will be high. If not, not so much.”
Investing in the markets is hard work, at least if you want to be profitable in the long run. It does not help to be lucky on your next trade, you need to be “lucky” on your next 100 trades. In order to achieve a goal that lofty you need to make sure that you keep your losses small. Idealy you always hit the exit button just below zero. In the real world this doesn´t happen to often, sometimes because the trader is emotional, hopes that the stock comes back or just wants to keep the stock for sentimental reasons. If you want to improve your trading substantially, then make sure that your losses are tamed. For that i have put together the 10 most important steps to do this: Especially in the beginning it is not always easy to deal with risk management. You have to find out the exposure to risk, your portfolio bears and for a beginner that is no easy task. If you don´t do it, you will most probably lose money in the longrun, so you have to find a way of doing it.
Up to now it was a tedious process that required skills and knowledge. Well, the bad news is, it still does, but the task got easier. Mere mortals like us have no business competing with this guy, thats why we calmly sit down and listen when he talks. This is a real pro and he has been right about the markets at numerous occasions, so we listen again and adjust our risk management accordingly. |
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