Category Archives: business service

Use Stop Losses To Keep Losses Small

The other portfolio manager, the “greater light,” was Elaine Garzarelli. She said that it was no longer a viable strategy to simply buy and hold any stock. Every stock has to be monitored, and is an eligible sell candidate if it “misbehaves” (begins to “break down”). The last market crash should be sufficient evidence of the shortcomings of the former strategy and of the correctness of Garzarelli’s position. In the crash, we saw perfectly good companies decline in value 60% and more. We have also seen volatility soar to unprecedented levels. Under the circumstances, what justification is there for going forward with the attitude that most positions should be held for several years? Typically stocks do not go up non-stop for several years. Over that period of time most stocks will have several serious corrections in which a large portion of previous gains will evaporate.

It makes much better sense to lock in gains when you have them if a stock becomes unusually weak and switch to something else rather than to become a stock market yo-yo (the new “sell on weakness” school of thought). Also, since no one can be sure how far a stock will drop once it begins a decline, the well-considered positioning of protective stop-losses is in order. If the stop-loss is ratcheted up as the stock rises, an increasing amount of the gains will be “locked in” should the stock decline.

The author once spent more than eight hours a day for three years testing tens of thousands of computer-driven investment strategies. The goal was to develop systems that worked well regardless of the state of the market or the general direction of the stock. The systems also had to outperform a “buy and hold” strategy by a wide enough margin to justify their use. The goal was to find strategies that could outperform a “buy and hold” approach by at least 20% a year. Thousands of tests were performed on each of thousands of stocks over a wide variety of market environments covering a period of many years to get a good profile of each strategy.

The more successful of these automated systems had something in common. Each had many losing trades, sometimes far more losing trades than winning trades. This was a surprise. Many gains were expected, not many losses. Their trading patterns over many years revealed several other interesting characteristics. First of all, the systems with the best results were “Nervous Nellies.” That is, they sold at the slightest provocation (usually a downward motion of the stock that satisfied certain pre-established criteria). The fact that there is so much “noise” or non-significant motion in stock behavior is what generated a large number of the small losses. Yet, some of these same systems could generate large annual gains in a severely declining market.

The Best Business Ideas In Finance Industry

1.Audit Firm
We all know that every small and big businesses require auditing every year. Proper networking and marketing is required to pool clients. So, if you are thinking of investing in finance industry, going for an audit firm will be of great advantage. As per the reports stated by experts, an audit firm is the best business to start for, as they handle the majority of the audits both in private as well as public companies.
2.Finance Analyst
Finance analyst is one of the most wanted jobs in the financial industry. They are the people who perform financial analysis for external or internal financial clients as part of their job. They evaluate projects, businesses and other finance related entities to determine the performance and competence in business. So, if you are aspiring to become finance analyst, just move ahead as this can be a profit for your life.
3.Personal Finance Advisor
Another upcoming field in the finance industry is being a personal advisor. A personal advisor is someone who helps people to set and meets their long term financial goals. You can do a great job of helping millions of people to manage their finances by providing advices on money issues such as investments, mortgages, estate planning, tax and retirement; depending on their request. Though, in most States, you require to get a license to work as a personal advisor, but once you own a license, this can benefit your life.
4.Banking Agent
If you have the ability to convince someone and take whatever you expect, then there are more chances for becoming a successful agent. A banking agent is someone who is responsible for processing client’s transactions. Financial institutions are hunting for new customers on contract basis for this purpose and are rewarded based on their performance. Rather than being a branch teller, he can also be the owner of their outlet and avail benefits from the government. So if you are thinking of becoming an entrepreneur, this could be the best option for growing in your business.
5. Asset Management
We all know that every business in the financial service require a proper maintenance and management of their budgets. For this purpose, asset management is of great demand in the market. An asset manager is responsible for managing money and handling the investments of clients. From studying client’s assets to planning and looking after the investments, all things are looked after by the asset managers. As every business has assets that need to be managed in proper way, there are huge opportunities for asset management experts.

essential for traders to hire brokers

Forex is the largest market for traders willing to achieve success in market. Trade volume worth over 3 trillions of dollars are exchanged between traders in the world. Aspirants and seasoned traders compete in the market to achieve success in marketing. Traders need to learn about procedures of trading to achieve success and increase profits. But, Forex market is a complex system of trading that get influenced by different economies of the world. It is essential to get expertise in trading with analysis of market value and conditions. Several strategies are essential for traders to surpassed competition from others and emerge victories with more profits. But, it is possible to achieve to achieve success in trading with right procedures taking from experts. This is why help of brokers and other experts need to be taken by traders to achieve success. Let us look at special procedures to trade and achieve higher profits in forex.
Forex has attracted traders from different regions of the world now. It has emerged the largest online trading platform with numerous options to trade. But, it is never easy for traders to achieve success in market due to competition from other traders. Many times traders can’t cope with competition and make strategies that stand out in market. This is why aspirant traders need to learn about trading principles and achieve success in platform quickly. Investment need to be made according analysis of market conditions and risks involved in it. This is why success in online forex trading is possible with the help of experts. It is really essential for traders to analyze market condition before investment in platform. Expert trader’s guidance and advise would be useful in achieving higher profits and avoid loss. Success in forex trading doesn’t depend upon luck but strategies of the traders.
Monitoring of market condition is really essential for traders to achieve success in Forex market. Indicators of trading depends upon fluctuations of different economies around the globe. It is essential for traders to monitor fluctuations of economies to achieve success in trading. Practically, it is impossible to monitor ever-changing market of different economies. This is why automated software are deployed by companies to monitor changes and provide information to traders. Forex trading advisors are really helpful in achieving success in trading immediately. Advisors need to smart and accurate not affected due to high end fluctuations in the market. Reliable advisors are really useful for traders to achieve success in forex trading quickly. Advisors should have smart technology with constant support to adapt with market changes.

Trading Strategies To Earn Profits

Forex market is an important place to invest and gain lots of profits during trade. It has become a favorite place for money minded people to create investment and earn a steady income. Though, it is really easy to join forex trading but need lots of strategies and plan to succeed. Knowledge about the market in advance is essential to achieve success. Principles of trading need to be learned by traders before joining in the profession quickly. Both risk and reward of the trade need to be analyzed first before investing in the trade. In this way, traders can invest in right area and achieve success in forex market. But, it is never possible without getting help from brokers. Expert brokers are real asset for traders willing to achieve success in trading quickly. This is because traders can get guidance and suggestion in making good investment in trading to earn profits. Let us look at top strategies essential to achieve success in trading.
Forex is the largest trading platform for traders with over 3 trillion dollar of trade are exchanged on trade everyday globally. Seasoned to new traders compete in same platform in different trades to earn profits. But, traders with best strategies win and achieve success in forex market quickly. This is why aspirants need to follow special strategies that are useful to earn profits. Online forex trader needs to acquire skills of trading successfully in competitive market. Good strategies, planning, and waiting for favorable time help traders to win constantly in the trading. Investment in random field without taking measures and analysis of market condition will lead to loss of money. This is why traders need special planning and strategies that are useful in achieving success quickly. Otherwise, it would be simply waste of money and time without getting desired result in trading.
Brokers are real asset for traders looking to trade successfully in forex market. Brokers keep information about trading and forex market in detail to help novice trader quickly. It won’t be wrong to say that success of traders in forex depends upon strategies and guidance from brokers. This is why expert brokers need to be hired by traders to succeed quickly. Online forex brokers are really helpful in guiding traders to achieve success. As brokers monitor market condition and practice best trading principles, traders are bound to get profits. This is why traders need to hire expert brokers with knowledge about market and trading principles to achieve success.
Traders can invest money in different trading option to get steady income. But, it is essential for traders to choose trading option in which one is expert and know market better. Investment in wrong trading option will lead to loss of money without getting desired result. Trade precious metals online is an ideal option for traders to earn profits as metal has higher liquidity than other option. But, it is essential for traders to look at market condition before investing in trade. Monitoring of market condition will help traders to invest in right areas under guidance of qualified traders. Take help of our expert traders to help in investing in right area to achieve success in forex trading quickly.

3 Rules For Successful Trading

Rule #1 Become A Student Of The Markets

Constantly educating yourself on how the markets work is a key step in becoming a good trader. The best traders are students first. They understand the importance of knowledge. The market is an extremely dynamic and volatile environment. Things can change from one second to the next. The more you understand about the past and current markets, the better off you will be when it’s time to make a trade.

Every day you should take time to research and study the markets. Doing so will give you a significant competitive advantage.

Rule #2 Always Follow A Trading Plan

A trading plan is basically a set of rules you will follow when making trades. Your trading plan should clearly state your entry, exit and money management guidelines. Though writing out a trading plan can be very time consuming, it is by far one of the most important things you can ever do. Especially if you are serious about becoming a better trader.

Thanks to today’s technology, you can quickly and easily test your trading plan without risking any money. Once you have tested your plan and it shows good results, then and only then should you use it in real trading.

Rule #3 Approach Trading As A Real Business

You will never become a good trader if you treat it like a hobby. Hobbies are for fun. When you treat something as a hobby there is no real commitment. It’s something you only do when you feel like doing it. Trading on the other hand is something that requires a real commitment. When you trade you incur expenses just like you would if you were running a business. You will have to pay taxes, you will lose money, and you will be forced to deal with a lot of uncertainty.

That’s why it is vital you approach it with a business mindset. You must be willing to do research and come up with strategies to maximize your earning potential.

And there you have it, 3 rules for successful trading. Follow these 3 rules and you will increase your odds of becoming a great trader.

About the Sentiment Trader: Sentiment Trader’s premium ELITE VIP Membership with Chip is a Sunday through Thursday evening extended membership, which include charts, news, data & video also. Chip dissects the Futures, and Stock market. If you’re a new member you can join the premium ELITE membership for free.

Trading Strategy That Consistently Beats All Major Indexes

Do You Hate Research? . . I do!

I have always wanted to find an investment strategy that made sense. An investment strategy in which I do not need to know the intricacies of the market, predict market trends or follow specific stocks. How can I get the inside information of what is hot before the rest of the market knows? I can’t. Nor do I need to.

Plus, I don’t have that kind of time to commit to in-depth research. Like you, I have a regular job that I need to devote my time to. I am not a day trader; nor do I want to spend all of my free time on the computer doing research. Always following the stock market and getting stock quotes is not how I want to spend my free time.

I Avoid Individual Stocks . . . they are too unreliable!

Everybody wants to buy low and sell high. While millions of people do make money this way (and many millions loose money), I have found an easier and more effective way to use the market to my advantage. I do not trade in stocks. I do what I can to avoid individual stocks. And I consistently beat the market . . . month after month after month.

If not stocks, what’s the alternative?

Like many people, I got heavily involved in the stock market in the mid to late Nineties. Tech stocks were going through the roof and I, like everybody else, wanted a part of the action. It seemed an easy way to make money. Everybody was getting rich. You did not need a special investment strategy to beat the market.

During this time, I engrossed myself in the financial markets. I wanted to learn as much as I could without giving up my day job. I was trying to find the next best tech stock, IPOs and the occasional pre-IPO offering. But it was not until I discovered options trading that I discovered an investment strategy (The Yager Trading Strategy) that can work in any kind of market . . . Bull, Bear or stagnant.

That’s right…OPTION trading!

And I am not talking about stock options or writing covered calls. Options trading…I started selling options on S&P futures, using different methods and trading strategies. And I did well. VERY well.

Between July 1998 and January 2000 (a span of 18 months), from my option trading system, I turned an initial $25,000 investment into $167,615. That’s over 670% increase. And this was not paper money where you buy a stock and it has a certain listed value. This was real, taxed income. Profits collected on a monthly basis.

Market fluctuations and volatility have diminished greatly since then…reducing the premiums. Those types of returns are no longer available, but the options trading strategy is still very sound. I still consistently beat the market. Even the years the DJIA, Nasdaq, and S&P were all down, I posted more than a 22% gain.

Learn the options trading strategy or see how to make money with this strategy. I describe the strategy and show actual recent trades on YagerInvesting. The information is FREE. No subscription required. This is a method for risk capital only.