Trading Software – Profit Machines or Losers?

496

Thousands of people every day trade on the worlds stock markets, with the majority now using software to aid them, but does it help them make more money?

trading software,gambling,betting,exchange,horseracing,horse racing,football,soccer,sport,rugby,cricket,darts,snooker,formula,bot

Thousands of people every day trade on the worlds stock markets, with the majority now using software to aid them, but does it help them make more money?

This software is known as a ‘bot? short for robot, but it is only ever as good as the user. If the user does not know how to trade successfully on his own in the first place then he is unlikely to get instant profit from a bot. New users have to understand that it will take weeks to learn how to use a bot correctly.

I use the ‘new?bots on the block on a daily basis. Any professional trader should at least be aware of the existence of betting exchanges, and the fact they can turn over $Millions per horse race within a few minutes, and with the betting exchange allowing you to back (buy), and lay (sell) a horses odds, many new traders are springing up to take advantage of this with the use of betting bots. And the best thing is, you do not need any knowledge of the sport you are trading in. You can also trade on the majority of the worlds financial markets, such as the FTSE, NASDQ, etc, as well as currencies.

So are these new bots a license to print money? Depending on which one you use, as some are useless, and will see you lose money faster than if you were using a pin, but others stand out, and are put together by professional stock market traders. It is these bots that have the potential to make you money, and if handled correctly, plenty of it.

Most of the bots on sale focus on one aspect, whether it is trading, arbing, hedging or dutching, but there are a small number that focus on them all, and compared to the single function bots, are much better value for money. These multi-function bots allow you to find your niche in a competitive market, without emptying your bank balance.

It is also a misconception that you will start making a lot of money instantly. Even if the bot produced profits on a daily basis (which by the way, will never happen), you still have to limit trades to a fixed percentage of your betting bank, otherwise you will find yourself having no control over trading stakes. It is always best to start small, get the mistakes out of the way while it is cheap to do so, and when your stakes increase, you will have learnt enough from your mistakes to save money.

Some people click with trading straight away, others it can take weeks of staring at the graphs on the screen until the penny drops. Those that stick with it though, usually succeed, and a bot makes life so much easier.

So if you have the capabilities to profit from trading, then a betting bot may be for you, if you are looking for a quick buck, forget it.

Why Not Earn Money From Your Talents Mom?

471

I come across talented Moms all the time. Moms who sew baby slings, nursing clothing, cloth diapers…. Moms who make their own herbal skin care, healing balms, and the like. (I’m pretty envious of women who are crafty like this!)

Or maybe they are really good at designing their home school curriculum or writing interesting lesson plans. I know Moms with large families of grown children who could make a million bucks if they wrote a book with their parenting success secret…

wahm, work at home mom, online business, starting business

I come across talented Moms all the time. Moms who sew baby slings, nursing clothing, cloth diapers…. Moms who make their own herbal skin care, healing balms, and the like. (I’m pretty envious of women who are crafty like this!)

Or maybe they are really good at designing their home school curriculum or writing interesting lesson plans. I know Moms with large families of grown children who could make a million bucks if they wrote a book with their parenting success secrets!

Sometimes I will ask these women if they’ve ever thought about taking their interest or hobby to the Internet to earn some income with it. I usually get responses like: “I don’t know the first thing about how to build a website.?or “I wouldn’t have any idea how to market my business online.?
Yet, you may have a ton of knowledge in your head that could make you money on the world wide web. Or maybe you have a creative skill like sewing. Even if you don’t have a physical product to sell, you can still make money online marketing other people’s products, either through Direct Sales, Affiliate Marketing or Drop Shipping.

Why not get the knowledge out of your head and into a business that could earn you some cash!

Building a business on the Internet isn’t difficult like many Moms assume. If you don’t know how to build a website, you can use a “What you see is what you get” html editor. HTML is the coding language of web designers. But you don’t have to learn it in order to build a site. WYSIWYG html editors are as easy to use as word processing software. If you can write a fancy email or draft a nice letter, you can build a website.

Some website hosts even include professional looking website templates and beautiful stock photos, so you don’t even have to hire a web designer to get a great looking site online anymore.

What is more, there are resources online that can teach you what you need to know in order to get traffic to your site and market yourself. Why not ask around at a work at home Moms message board and see what other Moms in business recommend for learning these techniques?

Don’t let a small budget deter you from starting a website. For less than $25, you can buy a domain name and website hosting for one year. As you start to earn income, you can reinvest in other tools and learning that will help you grow your profits.

Building a business on the Internet has never been easier. Don’t let fear or a lack of technical know-how stop you from meeting your income goals. Reach out and ask for help and you’ll soon be up and running.

Use the Power of Autosuggestion in the Stock Market

597

Self-Confidence is an essential starting point for any business venture, especially in stock trading. Learn how to build your self-confidence through the power of autosuggestion. This might change your life.

autosuggestion,self-confidence,trading software, day trading, swing trading, stock trading, online trading, trading systems, trading logs, trading software, stock market, day trading courses

Self-Confidence is an essential starting point for any business venture. This is true even more if the business is trading in the stock market because psychology plays such a major role. Keep reading, this might change your life!

About 10 years ago, I received a copy of the book “Think and Grow Rich!” written by Napoleon Hill. Today, I credit most of my success in business (including trading) to this book.

At first applying some of the principles described in this book appears a bit crazy – for example reading a Self-Confidence formula and a Definite Plan aloud every day. But you really have to look at it with an opened mind and believe me (and many peoples who have made millions) this stuff works:

Here is a brief overview (you really need to get the book):

– First – you must have a burning desire – for a trader this desire should be “to become a consistent winner in the stock market“.

– Second – you have to have a definite goal including the amount you want to make and the date by which you want this money to be in your account.

– Third – You need a definite plan, or what you will do in exchange for this money.

Here is an example of a plan – it is generic enough to be applied to most trading styles. Items specific to your style should be added. Your plan should be read aloud first thing in the morning and right before going to bed.

By December 31st 2006, I will make $200,000 dollars with my trading. In return for this money I will do the following:

– I will follow a trading plan to guide my trading – therefore my job will be one of patience and discipline

– I will plan each trade carefully – I will not jump into trades by fear of missing out

– I will monitor the market’s current picture

– I will monitor the current picture for each industry

– I will manage my trades to protect my capital and my profits

– I will protect my capital through good money management

– I will take responsibility for all my actions.

– I will trade to trade well and for the love of trading, not to trade often and not for the money. The money will come as a result of trading well.

– I will not be influenced by the opinions of others. I will reach my own decisions and follow them.

– I will build the self-trust necessary to operate in an unlimited environment which has no rules.

– I will be rigid in my rules and flexible in my expectations.

-I will never think that taking money from the market is easy and I will never assume that I know enough.

-I will have no particular expectation when I place a trade because I know that anything can happen.

-I will treat trading as a probability game in which I don’t need to know what is going to happen next in order to make money. All I need to know

is that the odds are in my favor before I put a trade

– I believe that I deserve this money. I believe that I will have this money in my possession. My faith is so strong that I can now see this money before my eyes. I can touch it with my hands. It is now awaiting transfer into my account. I am awaiting a plan by which to accumulate this money, and I will follow that plan when it is received.

Read (and reread) this book and apply its principles to your life – and notice the difference in your Self-Confidence.

Trading Software – Profit Machines or Losers?

496

Thousands of people every day trade on the worlds stock markets, with the majority now using software to aid them, but does it help them make more money?

trading software,gambling,betting,exchange,horseracing,horse racing,football,soccer,sport,rugby,cricket,darts,snooker,formula,bot

Thousands of people every day trade on the worlds stock markets, with the majority now using software to aid them, but does it help them make more money?

This software is known as a ‘bot? short for robot, but it is only ever as good as the user. If the user does not know how to trade successfully on his own in the first place then he is unlikely to get instant profit from a bot. New users have to understand that it will take weeks to learn how to use a bot correctly.

I use the ‘new?bots on the block on a daily basis. Any professional trader should at least be aware of the existence of betting exchanges, and the fact they can turn over $Millions per horse race within a few minutes, and with the betting exchange allowing you to back (buy), and lay (sell) a horses odds, many new traders are springing up to take advantage of this with the use of betting bots. And the best thing is, you do not need any knowledge of the sport you are trading in. You can also trade on the majority of the worlds financial markets, such as the FTSE, NASDQ, etc, as well as currencies.

So are these new bots a license to print money? Depending on which one you use, as some are useless, and will see you lose money faster than if you were using a pin, but others stand out, and are put together by professional stock market traders. It is these bots that have the potential to make you money, and if handled correctly, plenty of it.

Most of the bots on sale focus on one aspect, whether it is trading, arbing, hedging or dutching, but there are a small number that focus on them all, and compared to the single function bots, are much better value for money. These multi-function bots allow you to find your niche in a competitive market, without emptying your bank balance.

It is also a misconception that you will start making a lot of money instantly. Even if the bot produced profits on a daily basis (which by the way, will never happen), you still have to limit trades to a fixed percentage of your betting bank, otherwise you will find yourself having no control over trading stakes. It is always best to start small, get the mistakes out of the way while it is cheap to do so, and when your stakes increase, you will have learnt enough from your mistakes to save money.

Some people click with trading straight away, others it can take weeks of staring at the graphs on the screen until the penny drops. Those that stick with it though, usually succeed, and a bot makes life so much easier.

So if you have the capabilities to profit from trading, then a betting bot may be for you, if you are looking for a quick buck, forget it.

Stock Trading Profit, Earnings Can Still Be Had Today

673

Day trading most commonly refers to the practice of buying and selling stocks during the day so that at the end of the day you don’t hold any shares overnight; you sell as many shares as you buy. You make money on the difference between the purchase and sales prices.

The main motivation for this style of trading is to make money every day so you don’t sit on the shares , plus of course you eliminate the risk that the shares go down in value overnight. the motivation of thi…

day trading, stock trading, stock market

Day trading most commonly refers to the practice of buying and selling stocks during the day so that at the end of the day you don’t hold any shares overnight; you sell as many shares as you buy. You make money on the difference between the purchase and sales prices.

The main motivation for this style of trading is to make money every day so you don’t sit on the shares , plus of course you eliminate the risk that the shares go down in value overnight. the motivation of this style of trading is to reduce the risk of holding a position overnight where the open price may have significantly changed from the previous day’s closing price.

NASDAQ defined day trading by saying somebody is a Daytrader if he makes more than four buy and sell orders over a five-day period.

Prior to the year 2000 it was not uncommon for some of the most successful Daytraders to make more than a million dollars in a single day.

There were dozens of Daytrading Chatrooms where people were “told” what to buy and when to buy it.
Some Chatrooms had more than 500 members.

And most Daytraders, it is estimated as high as 99%, lost their shirt.
One of the reasons they lost their shirt is because they could trade on Margin.

Trading on Margin means that the brokerage firm which executes your trades will lend you up to 5 times your investment.
So if you had $10,000 in your trading account you could in some cases trade with $50,000.

However, if you lost on your trades, repayment was due immediately.

Since the heady dot com days of the year 2000 DayTrading has gone out of style and out of range.

Most brokerage firms have gone under or have consolidated, and staff has been reduced in the remaining firms by about 80%.

Trades that used to cost $35 to execute can now be had for as low as $4.-

Initially it happened because President Bush talked the economy down and Mr Greenspan kept on raising the interest rate to such a level that all optimism disappeared from the Market.

Up until this time like clockwork 2 or 3 days a week there were Stocks, mainly Internet Stocks, that would rise more than 30% early in the morning and then fall the same amount five minutes before closing so people could take profit.

If you were on the ball you could make a lot of money as a DayTrader.

You could also lose a lot of money.

Those days no longer exist.

It is very rare to see stocks vary more than 30% in one day so the profit potential first of all is not as great, and the ability to catch a percentage of the increase in the price of a stock has also lessened.

One of the reasons also is that Internet Stocks which were totally overvalued are no longer overvalued and as a matter of fact have risen much less than any other type of Stock.

Another reason is that there are very few IPO’s and even Google’s IPO did not take off for quite some time.

If it was not for the spectacular performance of Google , Internet Stocks lost more than 8% in 2005.

Even Ebay lost more than a quarter of its value.

However, if you are shrewd, you can still make money as a DayTrader but it ain’t easy.

What do you think happens when a company invents a car that runs on water?

If you could get news about this company very early you could make a lot of money.

Not many people know that you can trade the NASDAQ Stock Market as early as 6 AM.

So if you are a Stock Market News Hound and like to get up really early in the morning and have nerves of steel you could buy the stock at 6 AM and sell it at 9.29 AM to everybody else starting a regular trading day.

This will not happen very often, the fact that there is spectacular news.

But if you are patient it may happen once a month.

Looking To Get Started With Penny Stocks?

491

If you are looking are thinking that Penny Stocks are a “Get Rich Quick Scheme? I’m sorry to disappoint you. Although great fortunes can be made from penny stocks, people can also lose everything they invest in Penny Stocks. The most important investment you can make at the start of your investment career is to invest in education.

Why Education and not stock?

Diving head first into the stock market is a great way of losing your money which is why we don’t recommend i…

penny stocks, investing, investments, stocks, shares

If you are looking are thinking that Penny Stocks are a “Get Rich Quick Scheme? I’m sorry to disappoint you. Although great fortunes can be made from penny stocks, people can also lose everything they invest in Penny Stocks. The most important investment you can make at the start of your investment career is to invest in education.

Why Education and not stock?

Diving head first into the stock market is a great way of losing your money which is why we don’t recommend it. The best thing to do is to read, read and read some more before investing. One of the best places to get free information on penny stocks and trading methods is from the internet.

Forums, websites, news sites and eBooks are a great way to improve your penny stock investment education. There are some great books that you can borrow from libraries or purchase cheaply from shops.

When reading on the internet, please be cautious of stock recommendations and strategies and methods. Stock recommendations and opinions from internet forums can be biased and cannot be fully trusted without doing your own research. Similarly, eBooks with strategies which promise great returns usually do not work as suggested. The reason for this is, even if the strategy worked well for the author, there is no guarantee that it will work for everyone else because everyone is different although you may learn something that you did not already know.

Google News has a business section which is group for free up-to-date information on stocks. Yahoo Finance also has good news section and also provides free charts and company information.

No matter who you get advice from, whether it’s from a financial consultant or friend, you should always carry out your own additional research. You should make decisions based on facts rather than opinions.

When you feel confident enough you can try some “test trades? You can either keep a record of your trades on paper or you can use a stocks simulator website where you invest with “fake?money. There is a website called Champion Investor (ChampInvest.com) which is great for this purpose as it also calculates profits and losses automatically. Also, if you the top performer of the month, you will be rewarded with ?000.

Using a stock simulator means that you will not lose your hard-earned cash if you make a bad investment. Instead, you will learn not to do it again without losing your money.

If you are consistently able to make a profit with your “test trades?then you can move onto the real thing. Keep your investment strategy exactly as it was when you were making profitable test trades, but instead of using “fake?money, you will be using your own money through a stock broker.

So, to summarise – if you are looking to get started in penny stocks, please do not dive in head first without investing your education first.

You buy and price falls,you sell and price rises.

337

You buy and price falls,you sell and price rises.Its a common investor problem.Doesi t always happen with you?…Then read.

Stock market,Investing.

One say’s “I bought “XYZ Company” at Rs.2200 and immediately after I bought the stock price dropped to Rs.2000.” I feel sad. Another comes with a different version “I sold “XYZ Company” at Rs.2000 and it went up to Rs.2400 same evening” I made an imaginary loss of Rs.400 per share.

Solution:

You can buy more shares @ Rs.2000 and reduce your overall buying cost. This has to be done only if believe in the fundamentals,management and the future prospects of the company.

To do this you need to keep money ready.whatever money you have and want to invest,split it into two parts. Then keep 50% cash aside, only invest with other 50%.So if need to buy more of any stock when the price falls you have ready cash.

Also now if you have 200 shares of XYZ Company 100@Rs.2200 and 100@Rs.2000.Then the price goes up to Rs.2400. Sell only 100 of the shares.Then if the price further shot up, you have some shares to sell And participate in the rally to make money.

Next You sold the share and the price went up. The solutoion to this is never sell all the shares at one time.Sell only 50% of your shares.So if he price goes up later you still have the other 50% to sell and make profit.

The golden Rule is to first do your own analysis of the stock before investing and buy on tips. Also invest only in companies which declare dividends every year. To be sure that you are not investing in loss making companies.

Every Market expert advices to do your stock analysis before investind in the stock market.
But nobody tells you how.

Well in my next article I will write about how to do stock anaysis using various tools such as financial ratios and by checking the track records of the comapnies you plan to invest in.

P.S: If you are not Indian then replace the Rs. into your own local curreny to understand the artilce 🙂

Why Buy Stocks on Margin?

450

Buying on margin means that you are buying your stocks with borrowed money.

stock,stock margin

Buying on margin means that you are buying your stocks with borrowed money.

If you are buying stocks outright, you pay $5,000 for 100 shares of a stock that costs $50 a share. They are yours. You’ve paid for them free and clear.

But when you buy on margin, you are borrowing the money to purchase the stock. For example, you don’t have $5,000 for those 100 shares. A brokerage firm could lend you up to 50% of that in order to purchase the stock. All you need is $2,500 to buy the 100 shares of stock.

Most brokerage firms set a minimum amount of equity at $2,000. This means that you have to put in at least $2,000 for the purchase of stocks.

In return for the loan, you pay interest. The brokerage is making money on your loan. They will also hold your stock as the collateral against the loan. If you default, they will take the stock. They have very little risk in the deal.

One way to think of buying on margin is that it is often comparable to buying a home with a mortgage. You are taking out the loan in the hopes that the value will go up and you will make money. You are in control of twice the amount of shares. All you have to see is the additional profit exceed the interest you have paid the brokerage.

However, there are risks to buying stock on margin. The price of your stock could always go down. By law, the brokerage will not be allowed to let the value of the collateral (the price of your stock) go down below a certain percentage of the loan value. If the stock drops below that set amount, the brokerage will issue a margin call on your stock.

The margin call means that you will have to pay the brokerage the amount of money necessary to bring the brokerage firms risk down to the allowed level. If you don’t have the money, your stock will be sold to pay off the loan. If there is any money left, you will be sent it. In most cases, there is little of your original investment remaining after the stock is sold.

Buying on margin could mean a huge return. But there is the risk that you could lose your original investment. As with any stock purchase there are risks, but when you are using borrowed money, the risk is increased.

Buying on margin is usually not a good idea for the beginner or normal, every day investor. It is something that sophisticated investors even have issues with. The risk can be high. Make sure that you understand all of the possible scenarios that could happen, good and bad.

Retirement Calculator: How Much Will It Cost You to Retire?

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Retirement Calculator: How Much Will It Cost You to Retire?

retirement planning finance personal

Many people have imagined a secured future by the time they have reached their retirement age.

However, only a few have truly worked out the estimated amount of that they need to hit the sack happily. This is because most people are not aware about the importance of using retirement calculators.

With retirement calculators, you can easily foresee the probable amount that you will earn by the time you retire. In this way, you can easily plan the necessary savings that you have to make to achieve your desired amount in the future.

Getting to know how much to save to arrive at your desired amount is easily computed on a yearly investment. From there, you can work towards a more achievable goal.

The computation, however, is greatly dependent on several factors. It does not necessarily mean that using retirement calculators will guarantee your future. Here is the list of the items that you have to consider when using retirement calculator:

1. Your present age and your desired retirement age

This will greatly affect the results in the retirement calculator. The available years from your current age up to your desired retirement age will determine the amount of savings you have to accumulate in order to reach your goal.

For instance, if you have lesser years to save, then your retirement calculator will tell you that to invest more money if you want to retire with considerable amount of disbursements.

2. Life expectancy

Your expected life expectancy will also affect the result in your calculator.

3. Inflation rate

4. Total Social Security Disbursements

5. Rate of ROI (return of investment)

These are just some of the probable factors that you have to consider when using retirement calculators. All of these things will have individual effects on the results. In the end, people tend to mix everything up and errors on computations are expected.

Financial experts recommend some feasible solutions to avoid possible confusions and errors in using the retirement calculator. Here’s how:

1. Be careful in choosing factors

Some people tend to choose some factors when using retirement calculator. Any considerable errors in the selection will constitute clear negative effects on the results.

Hence, it is important to be cautious in choosing a particular factor. Try to give some allowances as well.

For instance, if you will be using the “rate of return of investment,?it would be better if you will use a lower rate than what the current or even the best possible rate available. Things like this will not put your computation in a negative light.

2. Do not stop at a single computation

Experts recommend that you evaluate the factors that you have used during your first computation. Keep in mind that these factors may vary as the time pass by. Hence, it is best that you keep up with the flow.

3. Experiment

Do not stop from where you have started. In order to reach your desired retirement goal, it is best that you experiment on the variable factors that will greatly affect the results.

For example, inflation rate is highly changeable. Hence, experimenting on its different rates will provide you considerable low and high rates.

4. Always seek a professional

Do not depend on the tool alone. It is always important to seek the help of a professional. In this way, you can understand the use of retirement calculator better.

Knowing its pros and cons will help you understand the viability of retirement calculator. In turn, securing your future will be relatively easy.

Profitable Trading System

449

After you have found a profitable trading system that you already back-tested, how can you be sure that this system will produce the same gains in future ?

trading systems,stock market,trading,profitable,backtest

After you have found a profitable trading system that you already back-tested, how can you be sure that this system will produce the same gains in future?
Nobody can predict the future, your system can easily make losses in next years or can be no tradable.
There are some tests you must do before accepting a trading system, these tests swill show the robustness of your system and when passing these tests, it will be more likely to show gain in future.

Test 1 : Make sure that you put liquidity rule, that your entry and exit prices are realizable.

Test 2: Examine again your trading systems and your rules (This is very important).
I made dozen of trading systems that showed great results but after more examination, it showed that i cannot follow them in real life.
Check if there is one stock that made very big gain, the system will maybe become no profitable without this stock.

Test 3: Change twice or 3 times the date of begin for the simulation, if it still show good results then it has passed the test 3.

Test 4: Change values of some parameters or variables you have in your trading system rules, you must change one value and then back-test, change another and then back-test…
If the results are not affected very badly then it passed the test 4.

Test 5: Try to restrict the system from buying 20% or more of stocks you previously bought when doing the back-test. Then re-run the back-test. To pass this test, system must show pretty the same results as before.

Test 6: Equity chart must have a good look, check some statistic values like sharpe ratio, sortino ratio, standard deviation, maximum drawdown, average day for gains recovery…
It depends on the risk you are willing to take but choose only systems that have : higher sharpe ratio, higher sortino ratio, lower standard deviation, lower maximum drawdown…
Exclude systems that have very big max drawdown, standard deviation and average day for gains recovery.
The must important factor i think is average day for gains recovery.
Its the average number of day that you must wait until your equity value will goes back to the same level before the drawdown happen.
Big values will let you wait for long times before recovering gains and for sure many traders will abandon their trading system, and that’s the worse thing that can happen to a trader because just after that, the system will show excellent results. (That’s always happen)

Theses tests are very restrictive and you will reject maybe all your trading systems, but when trading you will put your money, real money, so i think you must be very selective to make all chance in your side.