Entries tagged as trading

Remember the times when you were told to master your three R's--Reading, wRiting and aRithmetic. Mastering them leads to literacy, the older folks would say.

The dictionary defines literacy as "the quality or state of being literate, especially the ability to read and write" or "a person's knowledge of a particular subject or field".

So if literacy means a person's knowledge of a particular subject, do trading beginner ever ask themselves how financially literate they are?    Continue reading ...

The phrase "diversifying your portfolio" is often thrown around by stock traders when explaining strategies to those who are about to get their feet wet in investments. Some folks merely nod their heads as the trader continues with even more technical jargon without truly understanding what the explanation was all about.

Portfolio diversification is basically a trading strategy meant to minimize your risks. The higher the risks, the more the potential for losses. This is basically a non-technical way of saying "do not put all your eggs in one basket".    Continue reading ...

As you can probably tell from our articles here that we often emphasize the use of news, information and data when trading. Having the information at your fingertips can easily spell the difference between making a profit and throwing your money away.

With information so freely available through the internet and cable television, it's a wonder why statistics like "70% of all day traders fail" still exist. The truth is, there is good information and there is wrong information. For beginners, it is quite important for you to be able to discern them.    Continue reading ...

Telling it as it is!!!!!

Trading is not for everyone, you can lose lots of money trading and trading can make you lots of money, if you plan, study and work hard.

The appeal of day-trading and its overwhelming popularity of late stems from its easy accessibility, and promises of easy money.

Trading is a game of probabilities and at any given point in time a move may happen out of nowhere that was totally unforeseeable.

There are few jobs at which it is more difficult to make a living than trading!

Estimates are that 80% to 90% of all those who begin trading today will lose their trading capital within the next 12 months.    Continue reading ...

Trading in the stock market is appealing to many people. Oftentimes, their curiosity is aroused when they hear success stories from friends and/or relatives. These anecdotes create a sense that investing in stocks is simple and easy. In a way, that may be true but before one dives in, they should understand the amount of experience the person telling the stories has in stock trading.

Experience has taught these people what to do and what not to do. More than that, experience has taught them that diving right unprepared will only lead to failure. In order to avoid failure, one should set a goal first before taking that first step into the world of stocks trading. The equation isn't very difficult--experience plus realistic goals equals better chance of success.    Continue reading ...