Risk vs. Reward Last week I wrote an article titled Trading Math and received quite a bit of positive response from it. The article discussed the importance of keeping your losses small and letting your winners run. This week, I want to follow up with a brief introduction to risk and reward in capital markets….
How To Limit Your Losses There is an old maxim on Wall Street that says successful traders limit their losses and let their winners run. Simple enough, right? But knowing how to actually do that consistently is not easy. Why? Because it is counter-intuitive in nature and goes against what comes “natural” for most people. How…
How To Let Your Money Work For You Money is a highly emotional and sensitive topic for most people. That’s why most people have a hard time consistently making money on Wall Street (primarily because they are making emotional, not rational, decisions). Two Schools Of Thought: Work For Your Money Or Have Your Money Work…
I look at capital markets (stocks, bonds, currencies, and commodities) as the last economic frontier. For the purpose of this article, I’ll focus on Wall Street but the same concepts apply to other markets. It is the one place on earth where anyone can make (or loss) a fortune- regardless of their background, skill-set, formal…
Immediate Gratification: Profits are a function of time. By definition any trade that is exited with a profit requires a certain element of time. The problem is that most people have a natural tendency to seek immediate gratification at the expense of long term gratification. That is why most people lose money on Wall Street….
Market States & Cycles 04.29.14 The stock market is constantly changing but the one constant throughout history is (has always and will always be ) human nature. The stories, stocks, centuries, asset class, bubbles, busts, change, but people don’t. That is why it is important to understand market cycles not just from a technical level…
LIKE THIS? JOIN OUR FREE NEWSLETTER Has copper lost its importance? The basic premise is that for the past few years, copper and other industrial metals, no longer play a critical role for global economic growth. Don’t take my word for it; the proof is in the charts. Since 2011, copper prices have been…
LIKE THIS? SIGN UP FOR OUR FREE NEWSLETTER Attention is the brain’s currency. We all have a limited amount of it (scarce resource) and we are all free to use it anyway we like. Most people don’t think about how they “use” their attention and end up spending it, instead of investing it. Invest, Don’t Spend…
Absolutely Brilliant & Wonderful! His wisdom/advice is timeless & priceless! Source: http://www.youtube.com/watch?v=8EQWhQt9OQo FindLeadingStocks.com Provides The “R” in ROI. You Provide The “I” Click Here To Learn More: JOIN OUR FREE NEWSLETTER & GET POWERFUL IDEAS DIRECTLY TO YOUR INBOX
The same is true for trading/investing, not just business: Guest Post: Jan 2014 by Peter Shallard The entrepreneur stereotype has permanently changed. The old school business archetype is all about smooth talking, pinstripe-suited, cigar smoking, deal brokering, power tycoons. These captains of industry weren’t afraid to scream at subordinates, drown their sorrows in mid-afternoon whiskey…