![]() | |
![]() | |
![]() |
Investing Information |
|
![]() |
Learn How to Lose and Risk Management
One of the leading traders on Chicago Mercantile Exchange, because of a single trade lost everything! For all of his years of experience and money, he had failed to master the most important concept in trading: Risk Management! Each trader seems to have his own unique way of identifying market opportunities. One buys a stock in the hopes of never having to sell it, while another might hold a position in the market for a day or even just a few hours. Yet both individuals might be immensely successful in the markets. How can that be? It's because every trader who has been consistently successful in the markets has mastered the concepts of risk management. Warren Buffet's two rules of investing are: 1. Never lose money and 2. Never forget rule number 1! Paul Tudor Jones says that he is always thinking about losing money as opposed to making money. He does not focus on making money; he is focusing on protecting what he has! Jim Rogers, who for years was a partner with legendary hedge fund investor George Soros, said "My basic advice is don't lose money!" Bernard Baruch, the renowned investor from the first half of the 20th century advised "Learn how to take losses quickly and cleanly." Yet, when most people start trading, the only thing they think about is the profit objective. Countless hours are spent on discovering how to buy and sell the market with unwavering accuracy. Once they buy a market, the amateur trader only thinks about how high is the market going to go. Little effort is put into considering how low the market could go, and where they should get out in order to control their losses. These thoughts, which are so distant from the minds of most traders, are what separate the winners from the losers. Risk management is the practice of determining what percentage of your account to risk for each and every trade in order to maximize the expected profit potential of your trading strategy. Once this amount is determined, this percentage must be translated into an absolute value and stop loss orders must be placed once a trade is entered in order to control potential losses at this value. There is no guarantee that such efforts will control your losses, since the market can gap in price beyond your stop loss order, resulting in losses greater than planned. Ioannis - Evangelos C. Haramis was born in Greece in 1951 and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the editor of http://www.greekshares.com/ To learn how to profit with your investments read: http://www.greekshares.com/orderbook.asp Copyright © 2005 I.E.C. Haramis
MORE RESOURCES: Up 125%, This Blue Chip Stock Has 1 Key Advantage That's Helping Investors Become Richer The Motley Fool Huge News for Disney Stock Investors The Motley Fool SAFE Banking Act Hits a 'Sweet Spot': This Week in Cannabis Investing - Kiplinger's Personal Finance SAFE Banking Act Hits a 'Sweet Spot': This Week in Cannabis Investing Kiplinger's Personal Finance America's Billionaires Love Japanese Stocks. Why Don't the Japanese? The Wall Street Journal Chinese investors in scramble to offload overseas property portfolios South China Morning Post Investing in India's Stock Market and More | White Coat Investor The White Coat Investor 3 Mistakes High Net Worth Clients Make When Investing The Motley Fool President's Investing in America Agenda Provides Resources for ... US Department of the Interior SEC Brings Much-Needed Transparency to Sustainable Investing Environmental Defense Fund Identifying Untapped Opportunities & Properties Abroad East End Taste Magazine Palliative Care Remains 'Wild West,' But Home Health Providers Are ... Home Health Care News 10 Best Blue-Chip Stocks to Buy for 2023 | Investing | U.S. News U.S News & World Report Money Lithium Stocks Down 38% to 49%: What Investors Should Do Now The Motley Fool A More Impactful Strategy for Sustainable Investing HBR.org Daily Legislature deserves thanks for investing in NH's youngest learners ... New Hampshire Bulletin Massive News for Nio Stock Investors The Motley Fool Kresge joins Quality Jobs Fund in investing millions in The 22 Fund ... The Kresge Foundation 10 Best Investments for 2023 | Investing | U.S. News U.S News & World Report Money How to Invest in Carnival Cruise Lines The Motley Fool Neal Logan: Should you invest … or speculate? | Business ... Cleburne Times-Review The Week in Impact Investing: Legacy ImpactAlpha How Panama Canal Supply Chain Issues Impact Shipping Stocks U.S News & World Report Money Finding emerging opportunities in sustainable investing PitchBook News & Analysis Opinion: United Way leaders call for investing in change Akron Beacon Journal Stripe, Instacart show perils of secondary investing PitchBook News & Analysis The Gulf Sovereign Wealth Funds: Accumulating Wealth and ... DBRS Morningstar How to Coach Investors Through Choice Overload Morningstar Just Started Investing? Here's 1 Solid Company to Buy With $200 The Motley Fool Farming Investing Outlook EisnerAmper Harry Domash, Online Investing | Exchange-traded funds offer positive returns in down market Santa Cruz Sentinel 5 Stocks You Can Confidently Invest $500 In Right Now The Motley Fool 'Magnificent Seven' investing playbook: Amazon's opportunities 'the same as its challenges,' analyst says Yahoo Finance Investing in the radical reorientation of health systems towards ... World Health Organization The Impact of Investing in Faculty · Babson Thought & Action Babson Thought & Action Is Now a Good Time to Buy Stocks? Warren Buffett's Sensible ... The Motley Fool A local company is investing $10 million in an East Tennessee ... Knoxville News Sentinel 8 Top-Rated Income Funds | Investing | U.S. News U.S News & World Report Money Got $3,000? 3 Tech Stocks to Buy and Hold for the Long Term The Motley Fool Investing in Emerging Tech GovernmentCIO Media & Research Where to Invest $10,000 in a Bear Market The Motley Fool These 2 Dividend Stocks Are Investing in This Niche Industry ... The Motley Fool 3 Unrivaled Stocks That Can Generate Life-Changing Money by 2040 The Motley Fool Data Driven Investing in America: New Tools Help Advance ... Economic Development Administration |
![]() |
![]() |
![]() |
RELATED ARTICLES
Making It Second Nature Not long ago I was laying on my son's floor throwing one of his toy balls back and forth in the air to myself and I had a strange revelation. I noticed that as I threw the ball up in the air my left arm automatically started to move to where the ball was going to come down. Why Do You Want to Become a Online Trader? Motivational guru Tony Robbins teaches that the reason for doing something rates much higher than the methods you use to get the job done. In order to make your goal REAL, you need to attach severe, horrifying, intense and profound fear to failure. How to Calculate the Value of Your U.S. Savings Bonds If you're like many Americans over the age of 55, you've probably had money taken out of your paychecks for years and years in order to purchase U. S. Success Trading: More Basic Terminology for New Traders One important aspect of trading the markets is to understand how to feel it's overall pulse. In the stock market, this is measured by measuring the movements of selected stocks across various sectors to let us know how the market is doing in general. Seven Investment Terms Everyone Should Know For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in the financial business. Making Your Investment Dollars Work for You Investments are scary for some people, especially those who have never invested before. We grow up hearing horror stories about how this person or that person lost everything they had on some bad investment some odd years ago and it builds in us a fear of investing so profound that it is sometimes easier to get a confirmed agoraphobic to march in the Macy's Day Parade than it is to get someone to put a few dollars into stocks or mutual funds. Investing 101: Risk Terminology - BETA About thirty years ago, statisticians armed with all of theirstatistical theories began to confront the financial markets. Ahandful of useful tools emerged that the average investor shouldbe familiar with when they look to purchase stocks. The Basics of Tax-Free UK Financial Spread Betting Financial Spread Betting (or Trading) offers a tax free method of speculating on financial markets.Quite simply, if you think a particular index, share, commodity, currency or sector will rise, you place an UP bet. Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did You hear it over and over and over in books, forums, and chatrooms. Fear and greed, fear and greed, fear and greed. An Introduction to Offshore Investing Once upon a time, offshore investment strategies were spoken of in hushed tones. They were conversations restricted to the plush offices of private Swiss bankers, or a dinner table topic in the expensive playgrounds of the multi-millionaires. Building The Foundation For Wealth You wouldn't build your home on anything less than a solid foundation. Similarly, you can't build wealth and financial independence without first having sound foundational principles to build upon. Who Wants To Be A Millionaire? I am sure you have probably read about the power of compound interest. And how if you invested $10,000 at 10% return and let it compound for 50 years you would have a little over 1 million dollars. An Investment Real Estate Strategy Unknown To Most Is A Negative Amortization Loan If you want to make the most of your personal or investment real estate, you should consider a negative amortization loan. Mortgage amortization is basically mortgage balance reduction. Chinas Inscrutable Currency Strategy Purpose: Expose Opportunities for Smart InvestorsThe move by China's central bank to drop the yuan's rigid peg to the dollar on the day of my return after a three-week trip to Asia left a host of questions unanswered. The basket of currencies that will allegedly determine the value of the yuan going forward was not disclosed. Retirement Is A Scary Proposition If Youre Without A Plan, And Running Out Of Time Of the 75 million baby boomers nearing retirement today, many are:* Debt Ridden* Severely unprepared for retirement* Under Funded* Without a StrategyThis is a very serious problem in a country that we can all remember used to assure most people of a retirement where you are taken care of financially.We all know that social security alone is not the answer to this problem. Index Trading Weekly Update Here is a sample of the last newsletter:SP500 Last Signal Comment We just had a new sell signal last friday on june 10th 2005. As expected we faced strong resistance at 1200 and it ended up with a double top as stated in previous issues. Six Principles of Successful Investing 1. Begin investing immediatelyProcrastination is the number one enemy of investing. The Real Cost of a Bad Habit What is the value of a good habit? Think of some daily habits, like brushing your teeth, or buckling a seat belt, or flushing. All of these habits have value important to some part of life. Options Made Easy and Investor Education - Simple Enough for a 10 yr Old Kid How many of you out there think that the market is performing well?How many think the market is performing poorly?And how many feel the markets performance is neutral?Actually none of these answers is correct. You see, learning and reading our options made easy articles, you will realize that the market does not perform, you do. Real Estate Clubs Hot Among Investors Six or seven years ago, the stock market was booming, Internet companies that no one had ever heard of were valued at billions of dollars, and anyone and everyone was investing their money in tech stocks. Then, in 2000, the stock market crashed, the Internet companies closed their doors, investors lost trillions of dollars, and life went back to normal, more or less. ![]() |
home | site map |
© 2006 |