Making Money from Share Trading and Investing Through Using Stop Losses

By Sam McNeill

Even the best trading techniques struggle to deliver a success rate of more than 70%. Therefore even using some of the best trading techniques we will still end up with two or three losing trades out of every ten. For these losing trades we must keep our losses really really small. To do this we use a stop loss. This is a pre-determined price that we use as the trigger to sell out of a losing trade.

There are only five possible outcomes from any trade:

Breakeven

A large profit.

A small loss.

A large loss.

A small loss.

That's it. Five possible outcomes, no more, no less. Every single trade will result in one of these five outcomes. Now if we could eliminate one of these five outcomes, which one would we choose? That's right - the large loss. If we eliminate the large loss we are only left with the other four possible outcomes. If our small losses, breakeven trades and small profits even out over a period of time we will only be left with the rather pleasing occasional large profit.

By now you should be in no doubt about the wisdom of eliminating large losses. The Stop Loss is what we use in every trade in order to eliminate any large losses.

We use a Stop Loss Rule. The stop loss rule has three parts to it:

1. With every single trade that you do you must have a Stop Loss in place.

2. Your Stop Loss price is set at the level where your loss will be 2% of total trading capital.

3. When your Stop Loss price is hit then you must sell. No waiting one more day hoping that your trade turns into an "overnight success".

The most difficult part of this rule is part 3, selling when your stop loss price is hit. It's the most difficult part of the rule because most of us hate admitting that we are wrong about anything! Despite this huge emotional drag not to sell - sell we must. When your stop loss price is hit you sell. Sticking to this simple and straight forward rule will protect your hard earned cash when you trade. - 23210

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Want to find out more about sharetrading, then visit the Just Shares site on how to choose the best share trading course for your needs.

Is Gold Investing For You?

By Michael Swanson

The world economy cannot take much more when it comes to currency. The value of a dollar is going down everyday and there is no hope in sight of that situation getting better. Gold mining companies are becoming very popular for this reason for stock picks. People are looking to invest in a sure thing in case their money become useless.

Since gold used to represent paper money, many people have been investing in gold for years. When the bank collapsed during the depression, the law was changed to paper money no longer represents the amount of gold you have in the bank.

People that invest in gold buy it because the money in fairly constant. It doesn't go down so you won't lose money when you invest in gold. The trick is just being patient so you give the gold some time to increase in value so that you can make money off of it.

Gold comes in different forms to invest in. You can invest in coins, bullion, shares, account or certificates. It doesn't really matter which one you choose, it just depends on your preference.

The price of gold is constantly increasing at a pretty level rate. A lot of research needs to be done before you start investing, though. There is really so much to learn and know. You want to be fully educated so that you do not get ripped off and you know what you are buying. It really does make the entire process a lot easier.

Gold investing is really the way to go. Go online and read more about it and where you can buy it for less. You will be glad that you did as the value of gold continues to go up. You won't regret investing in gold. - 23210

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One good way to start our in gold investing is to subscribe to my free gold stocks newsletter.

Basic Elements Of Foreign Exchange Trading And More

By Liam Nelson

Trading in Foreign Exchange is trading the many world currencies against each other. Currency trading can be regarded as the trading currencies. The forex market is a daily trade, which amounts to about three trillion dollars a a day in value. Trading Currencies is trading that is very similar to the stock market trading, leaving aside the fact that there is no market where the trade takes place. Trading takes place over the interbank's market, which can be regarded as on the counter market. Here are the basic elements of Curency Trading and more.

Curency Trading is the trading of currencies simultaneously against each other. The spot market is another important one. This is a place where all the deals are taken care of on the place at the same time. This is a volatile market.

Forward in the N. H. L trades is instantly completed, but there is no need to calculate any interest, as you've chosen to trade in future. For example, you do trading between U. S. Dollar and N. O. K where you do borrow in the US (low interest) and do the trade at Norway (interest is high) it means you could get a positive sign that you could gain more money. But will be charged if you are having a minus interest rate differential.

Second concept is that of margin trading. Margin trading is a concept which means you trade more on the stock market than there the money there in the account. If you are having a stock of one %, and the account balance of hundred dollars, you can trade for hundred thousand dollars on the market at hundred is one % of hundred thousand. This will work the favor of the trader, but also can turn against him, and can lead to great losses if the difference is set too high.

This can be to your advantage, but can mean huge losses if the actual margin is high. The next important part is the commercial market. As a sample consider that the euro will become stronger against the United States dollar, so you decide want to start buying in Euros and will sell it in future. Suppose that the price is 0. 98 and 0. 95.

This means you can trade at 0. 98 euro from 0. 95. Suppose you purchase a million Euros at 0. 98. Later market turns to favor Euros and the EUR American dollar is now at Bid 0. 98 and too asks 0. 95 and sells it.

This implies that you have a profit of 0. 95 minus 0. 98 multiplied with a million = $140. The same is true vice verse Here you sell Euro and you fall back to buy at lower prices.

These are the foundation courses on Foreign Exchange Trading. This may seem fairly easy, but for making good profit you have to make your own strategy for investing. To do so, explore the stock market and see for any trend changes and other stuff. Implement them into your strategy. It is not so easy for new beginners; you can take help of automated Forex trader. Be ready for any dangers as this is a really fluctuating market and is prone to risks. - 23210

About the Author:

The temptation to begin forex trading is extremely strong once the possibilities have been investigated. The potential profits are vast. But so are the risks and it is vital to find the best forex broker for your needs.

Professional Financial Advice-What Do Financial Advisers Do

By James Lostington

The occupation of the individual advisor begins by means of client session. At this point an advisor with obtain note of precise information concerning a clients in progress assets as well as their potential financial goals. Using these to pieces of in sequence, an advisor with then generate a systematic plan that identify troubles as well as offer remedies and solutions.

A private advisor will characteristically meet with the shopper twice a year to provide updates on the clients financial circumstances as well as get updates on any changes to the clients lifestyle, to contain marriage, divorce or retirement. Resting on the clients behalf, the consultant can purchase or sale a huge number of financial products such as insurance and mutual funds or provide a variety of services including will grounding or the conclusion of annual taxes.

The solution to a strong and extensive working relationship with your financial advisor is on the increase and maintaining an organization of mutual trust and respect built on two-way open straightforward communication. A quantity of common businesses financial analysts work for is banks, insurance companies, mutual and pension management companies, as well as securities firms. An analysts profession in these businesses involves the assurance that the companies create sound financial and investment decisions.

Your advisor then will point you in the right direction. In other words he will help decide on how to financially shore up the weaknesses and construct on the strengths. Analysts understand writing the companys financial statements, analyze prices, costs, sales, operating cost and tax rates. All of these rudiments tie into the protuberance of future take-home pay as well as the strength of mind of the value of the company.

Fundamentally, financial advisors are indispensable to every financial aspect of business as well as for giving advice on the personal level. This involves a specialized and purpose look at how you wish for to use your money at the moment and into the potential. in progress needs, future enlightening plans, health care, departure and other long-term goals. - 23210

About the Author:

Developing strategy for your finances can be complicated. Getting the right advice is important in developing a solid strategy. Speaking to an Financial Advisor is very important and if you live in Toronto you should find an Financial Advisor Toronto.

New to Forex? Read This First...

By Ash Naeck

Trading has been around for centuries and plays an even bigger role in nowadays life. Trading is omnipresent in all aspects of life whether it is at work, at the supermarket, in a relationship or a sports game; you end up trading one thing in return of something else.

In the old days, trading was done by exchanging one good for another. One would trade a horse for a cow for example. This was referred to as the barter process and is believed to be the origins of trading itself.

In present time, bartering has evolved and though the principals are the same, trading one good for another is made easy by the use of money. Money is the medium that makes trading possible and without this piece of paper no goods and services may be acquired.

In today's world, trading has taken a far more advanced approach compared to its traditional counterpart. Trading over the years has evolved in such a way that it not only constitutes of goods and services but goes far beyond that. The 21st century has given birth to currency traders who buy/sell the currency of one country to that of another country.

The market which is being referred to is the Forex market. The biggest most traded market on the planet. With a colossal US$ 3.5 Trillion traded every single day, this value is more significant when compared to all the other financial markets put together.

Hundreds of thousands even millions of dollars are made every-day by major financial institutions dealing in the foreign exchange market. They are referred to as the movers and shakers of the currency market. Those corporations deal in millions of dollars at any given time thus causing a stir in the market. If you are not already slightly familiar with the currency quotes, you should know that the value of a currency pair goes through drastic changes every single day. These fluctuations in price allow for major profit and also may result in losses.

The forex market tends to be more attractive than most of the existing markets on the planet. The reason being is because the forex market is a 24-hour open market. A normal trading day starts in Sydney, then Tokyo, Europe, London and ends up in New York City which is the last market to close for the day.

The major pairs which are the EUR/USD, GBP/USD, USD/CHF and USD/JPY are the most traded pair on the market. Next are the YEN pairs namely GBP/JPY and EUR/JPY, the commodity pairs AUD/USD, NZD/USD and USD/CAD which are believed to be the second most traded pairs on the currency market.

My first encounter with forex goes back to when I was in university. I knew nothing about the forex market and the way it operated. I had a mental blockage at a certain point to how the process of buying and selling a currency could actually work. Well after some research, it all made perfect sense. The world of today is not limited to buying/selling goods and services only but had open its doors to the ability to trade in currencies of other countries too.

Buying and selling currencies are undertaken by people known as forex traders. They simply take advantage of a falling currency or the appreciation of another currency to make money. A decent amount of money can be made using the technique of buying and selling currencies. Savvy forex traders make a great living doing just that.

Getting involved in the forex market nowadays has never been easier. Though you will need some understanding of the market, it is still easy to get your feet wet and experience firsthand, how the dealing process works.

Here is what you will need before starting:

- A decent computer

- Internet connection

- A starting capital

- A broker

That's it, simple and sweet!

Education is something that you will need to consider and I strongly recommend that you do educate yourself before jumping in this amazing forex adventure. With 5 years of trading under my belt I still learn new things every single day. Be humble, disciplined and teachable, do not try to make millions in a matter of days. Have a plan and a solid goal setting as this will pave your way to success. - 23210

About the Author:

Learn more about Forex Trading. Stop by Ash Naeck's site where you can find out all about the best Forex Educationproviders out there.