The Story of a Wise Man Investor

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A wise investor would on a timely basis review investments done in his portfolio. Investments especially in stocks need to be diversified as just investing all of one’s funds in just one stock would be critically dangerous given the volatile nature of markets. The phrase Don’t Invest all of one’s eggs in one basket is probably derived from this experience, eggs here are referred to stocks and if an investor invests all his eggs in the same basket (industry/sector) he would be taking a big risk and could would suffer huge setbacks should that chosen industry crash due to any factor. What you should do is start trading and diversifying at an early age.
I would further like to explain this example citing a recent example in India. Last year the aviation industry went through a lot of churn and volatility due to a host of factors, which had a domino effect on the respective airline stocks. In this case if an investor has a large composition of his investments pertaining to airline stocks, he would have a tough time as the prices of share stocks would surely have dived sharply due to volatility across the industry.
Had the investor been a little wise taking cues from what is happening to his stocks and revalued the stock composition of his portfolio, he could have made corrections before suffering more losses.
Portfolio diversification when trading futures refers to the diversification of one’s portfolio so that one can minimize the chances of loss especially when the share prices fluctuate due to market volatility in a particular industry. Here ideally the investor would be investing in a wide variety of stocks from varied sectors, and again ideally he would be doing additions and subtractions of stocks after carefully reviewing them on a periodic basis.

So in the earlier cited example, had the investor spread his risk across different industries and not just concentrated on the aviation sector he would probably have profited or his losses would have minimized considerably. There are scores of investors today, who have done the same mistake as referred above wherein they had heavily invested into just one company or stock in the hope that the concerned stock or company would do well dramatically in the short or long run.

In the scenario that an investor has only limited knowledge about how to go about portfolio diversification, it would be prudent to take the guidance of a financial planner.
A financial planner from a reputed financial services provider would be able to better understand your current investments and would be able to give a practical road map on how you can achieve your financial goals in a particular time frame.
Also a financial planner being trained on financial advisory would be able to offer you more options for fund investment. Earlier availing the services of a financial planner was considered to be the privilege of only the HNI’s and super HNI’s, but in the last 5 years this has changed considerably with investors understanding the fact that the charges charged by the right financial advisor minuscule if he is able to guide them on how to go about sharpening their portfolio towards their financial goals.

portfolio diversification is an essential need for wealth creation, dear investor ponder over the examples cited above if your portfolio still has a larger composition of just stocks from just one company or sector, it would be highly advisable that you diversify it for your own good.

Disclaimer:
1. Views as are mentioned in the article are personal views of Author and nothing to link with Co., its Director and Employees.
2. All investments are subject to market risk and you need to consult your financial advisor/consultant before investment.

At What Age Should You Start Investing?

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Many are times when young people ask this question. At what age should you start investing? Anyone from the age of 18 years should consider himself or herself a person who can take care of himself. In some countries a person who is eighteen years and above is recognized as an adult. Therefore this is an ideal age when one should start investing.

Many will ask the question as to where a young person of eighteen years will get money for investing. Investing starts with management of the resources that one has. If you cannot manage the little money your parent gives you as pocket money, and you end up spending more that you budgeted for, then this is an alarm that you are a poor investor.

What you really need is someone to mange your investments carefully!

Many young people also reason that at their twenties, its very early to start investing. My advice is that the earlier you start the better. You may never know about tomorrow. Assuming by age of 35 you become crippled and you cant work, you automatically become a burden to your people. However if you had invested something, you can use this a start up to start a business or give it to your family to support you. Another reason why its is wise to start investing early is that , once you start it becomes a habit and you will not find it hard to set aside something from each earnings that you get. For those who start late they find it very hard since they have never been used to the idea of saving.

One also gets more time for saving. If you start saving when you are twenty years, by the time you reach fifty years you will have accumulated a lot and your assets will have appreciated in value. Young people should also be advised on the difference between saving and investing. Keeping money in a bank is saving, and those savings can be used for investing. For instance one can save a certain amount and after a certain duration use those savings to purchase an asset such as a piece of land or a house. If one purchases a house, he can let it out and use the income from it to invest in another project.

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At young age many people are not aware of the basics that are involved in investing. Its therefore important they get advice from financial consultants on the best way to invest their money so that they don’t end up losing everything that they have saved if they invest in wrong projects. On way that I would encourage young people to invest in is first by saving on fixed deposits so that their money can gain compound interests. They can acquire loans and use the money to purchase property that can be able to repay the loans . If you plan to start saving early and you are under eighteen, parents are the best option to consult. All in all, never wait till you start having grey hair, time will not be on your side.

Money Management In Futures Trading Systems

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Kids are told that they need to learn how to handle money properly. This basic fact is also true when it comes to futures trading, however, it takes on greater importance when it comes to developing a viable and profitable trading profession. What sets winners and losers apart are futures trading software capabilities is understanding and implementing effective money management.
Establishing Proper Money Management When Trading Futures
A basic “point and click” method for choosing precision entries and exits based on a moving average crossover system can become a “killer method” when proper money management is implemented. Remember the old adage “It’s not how much money you make, but how much money you keep.” The key components of money management will allow you to compound small profits into big rewards.
Start by considering risk control; futures trading works well because of the enormous leverage built into the trading process. Traders can win big on comparatively little capital investment, however, they can also lose more than the balance of their account. The key here is to control risk throughout the trading process.
Balancing Minimums and Maximums for Profit
Think about the rules surrounding margins for a moment. Most of the rules apply to minimums, but little or no constraints are set for maximum margins. Many traders apply more capital as a means of hedging against potential losses of the market. Although this might seem like a reduction in overall returns, it acts as an insurance policy.
Many successful futures traders limit their risk to around 5 to 7% of individual trades. This practice may require precise entry and exit points and ironclad discipline or larger capital investment to secure their position. Less conservative traders may consider a 12% risk on a given trade, which allows for taking on a bit more leverage and wider swings in the market. In the end it is still going to boil down to establishing ROI.
Implementing Stops and Managing Trading Capital
Although entry points and exit points, stop-loss and take-profit trading points are part of the rules of risk management, they go hand in hand with money management as well. Keep the maximum drawdowns to 20 to 25% and avoid using mental stops. In these days of electronic trading, establishing and implementing hard and fast margin rules is not difficult.
Consider limiting your total portfolio risk to roughly 20%. Imagine if every open position in your account stopped out at the same time; the result would still be an 80% retention in your original trading capital. Establish the risk percentage for each market and plan in which you intend to trade. Take a look at the big picture and remember portfolio diversification plays a big part.
There is quite a range in terms of margins when it comes to different markets, therefore one size does not necessarily fits all. Many experienced traders will use this method especially when holding a trading position overnight in a potentially volatile market such as the S&P futures. Taking a realistic position on risk management is also psychologically sound.

Our Favorite Stock Trading Tools

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The craving to stock trading stocks alone is insufficient to make you rich, or even beneficial. The dedication to completely see how value markets function is vital. On the other hand, having the right tools and utilizing them sagaciously gives keen moguls a complete edge. Recorded underneath is a percentage of the best stock trading tools that everybody can exploit without burning up all available resources.

 

Stock Trading Training Courses

 

A great stock-trading course holds its esteem significantly after the project has finished. Fledgling brokers will discover these courses key in making a great understanding of the stock business sector. These courses give incredible materials and preparing that can at present be utilized as aides and references later on. They additionally assist prepared gurus realign themselves to the best procedures and stock trading practices. These courses make for phenomenal, long haul tools for merchants.

 

Online Stock Trading Services

 

This is one of the best stock trading tools to have. Assembled around electronic stages, these frameworks are a mixof pace and comfort. You can exchange stocks at lightning pace without the need for dealer administrations and unreasonable expenses. Functional tools are likewise given to help speculators stay informed concerning the business movement. Exchange anyplace as long as businesses are open. E*trade, Charles Schwab and Ameritrade are phenomenal cases of moderate online stock trading administrations.

 

Ongoing Streaming Charting and Quote Services

 

Administrations like Quote Tracker and Stocktickr permit moguls non-stop access to the most recent, crude stock business sector information… much the same as the tickers you see at the lowest part of the budgetary reporting channels on TV. Convenient and correct information is basic to winning a benefit on your stocks. Without this playing point, speculators will have some major snags settling on the right buying/selling choices. Botches in the stock business sector could be expensive.

 

Committed Stock Market Websites and Resources

 

Stockshaven.com, Philsstockworld.com, and Inthemoneystocks.com are great illustrations of committed money related sites. They offer colossal worth to anybody taking part in the stock business sector. These sites screen every day market examination, combine huge measures of information, and give tips/strategies to fruitful stock trading. Adding these assets to your gathering of stock trading tools could be very useful.

 

Robotized Stock Trading Robotic Systems

 

To put these assets together, mechanized automated trading frameworks are situated to be the following best thing in stock business today. These frameworks can anticipate cutting-edge, high return stocks precisely. They do this by examining for business variables, patterns and examples that generally drives stock costs to ascent. With this playing point, moguls can rapidly recognize the high-potential stocks and offer them at a much higher cost later on. The ability to gain many dollars in a short compass of time is tremendous.

 

Altavest has a futures trading platform or apparatus that is solid and simple to utilize could be a troublesome errand. You need to attempt every one for yourself or depend on a suggestion from an obscure source; this can squander your significant time, also your hard earned money. This article will depict what you have to know keeping in mind the end goal to verify you have the best trading apparatus to aid you in making predictable benefits from stock trading.

 

Verify you comprehend the nuts and bolts about the stock trading before you pick a significant trading apparatus. This can mean a little work included, however in the event that you hit the nail on the head from the beginning, you will commit less errors. Indeed superstar merchants set aside a few minutes to time, we can’t control what happens, and we can just control how we react to what happens.

 

Researching specialized investigation appears a touch of overwhelming, however there is a great deal of free data accessible on the web that can help you take in this craft. Understanding the fundamentals of stock trading is the required establishment to succeed in this intense field.

 

Initially you need to choose what markets you need to exchange and which timeline? It is safe to say that you are going to exchange stocks, prospects, and alternatives, wares, outside trade or cfd’s? It is safe to say that you are going to day exchange, swing exchange, position exchange or contribute for the long haul? Characterize what you are attempting to attain and after that think equitably to what steps you have to take to start on this way.

Verify you are just utilizing danger money to exchange and have a solid danger administration arrange set up to secure and develop this capital. An Altavest trading apparatus will let you know when to purchase and offer stocks; it’s at last up to you to make it succeed by not setting excessively of your record in each one exchange.

 

When you have characterized your trading goals and composed an arrangement, you have to pick the right trading instrument to support in your choice making. In this day and age, you can’t go only it; you have to have a product system provide for you trading indicators to make gainful exchanges.

 

The best trading instrument will be planned by expert merchants, taking into account a demonstrated and productive trading framework, and have a back analyzer consolidated with the goal that you can see it working and provide for you the certainty to exchange it. The trading apparatus should likewise have the capacity to provide for you trading signs continuously by means of email or sms, so when the inexorable time comes when you’re not before the workstation, you can even now accept your exchanges and execute them on the fly with one of the a lot of people free portable trading requisitions offered by online representatives.

 

Today is genuinely the brilliant age for web trading, with refined tools that were once just accessible to speculative stock investments are currently open for utilization by customary online merchants with little record equalizations. This is permitting individuals to supplement their pay with the boundless upside of stock trading benefits.

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Online futures trading tips

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My big success

When I started using online futures trading I got very successful for a beginner and all that thanks to some tips that I followed during my trades. I am person that wants to shear my experience in order to help to the new comers and for those who had bad luck in online futures trading. I followed the trends. Even that this is probably one of the hardest advice for a trader to follow because the personality of the typical futures trader is not one of the others. Futures traders and futures brokers as well, the markets seem to attract those who are individualistic. It is very simply, it takes only a special kind of person, and of course not “one of the crowd,” to earn enough risk capital in order to get involved in the futures markets. So the typical trader and the typical broker must be highly individualistic, to buck the trend.

Here are some tips

- Know why you are trading the commodity markets. To relieve boredom? To hit it big? When you can honestly answer these questions, then you are probably on the way to successful futures trading.
- Use a trading system, any system that you like, and stick to it.
- Apply money management techniques to your trading.
- Do not overtrade.
- Take a position only when you know where your profit goal is and where you are going to get out if the market goes against you.
- Trade with the trends, rather than trying to pick tops and bottoms.
- Don’t trade many markets with little capital.
- Don’t just trade the volatile contracts.
- Always Calculate the risk/reward ratio before putting a trade, and then you should guard it against holding it too long.
- Before market opening you should establish your trading plans in order to eliminate emotional reactions.

Decide on entry points, exit points, and objectives and do not change during the session unless there is a very good reason for it.

- Follow your plan;
- Use technical signals – charts to maintain disciplineth; without some technical tools the trades aren’t emotionally equipped to stay disciplined.
- Use discipline to eliminate impulse trading.
- Have a disciplined, detailed trading plan for each trade; i.e., entry, objective, exit, with no changes unless hard data changes.
- When you rich a successful trade, fight with the natural tendency to give some of it back.
- Use a disciplined trade selection system: an organized, systematic process to eliminate impulse or emotional trading.
- Trade with a plan – not with hope, greed, or fear. Plan how much you will risk on the trade, where you will get in the market, and where you will take your profits.

- Don’t just decide on the amount of money when you open an account with a broker; instead decide on the length of time you should trade.
- Don’t trade on rumors.
- Beware of all tips and inside information. To be sure that the info you’ve obtained is accurate wait for the market’s action and then take the position with the developing trend.
- Don’t trade unless you’re well financed because if you don’t start with enough money, you may not be able to hang in there if the market temporarily turns against you.
- Be 100% more careful if you’re extra smart. Smart people very often put on a position a little too early.

They always see the potential for a price movement before even it becomes actual. They become worn out or “tapped out” and aren’t around when a big move gets underway.

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Advantages from online futures trading

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To keep up with today’s fast-paced technological changes there are online futures trading sites are created and maintains a state-of-the-art online commodities trading system that directs me to the most current information that I need to know to be an effective trader and always gives me the best tools to make the trades and manage my funds.

The online trading platforms

The online trading platforms are easy-to-enter order platforms with drop down menus that are offering me the widest possible variety of online commodity trading options even market orders, market on close, limit orders, stop orders and all futures too.
The vision trading systems allows me to instantly see my account balance, remaining margin, profit/loss in every position, and a lot of other useful information about my current financial position. There is also online trading in foreign markets. I enjoy the online convenience of future trading on American exchanges and other universal markets.
There is one-touch market order. All I need to do is push a button and I am in the market. Or, when I want out, I can also perform instant order cancellations. Trading charts for all markets. With the online futures trading , I have the ability to construct technical analysis tools to support my trading methodology and style.

I have a free time

There is 24/7 telephone dealing when I am away. When I can’t keep an eye on my account when I am on vacation, with my family or on a business trip, the online staff will monitor and review my positions. Under my direction, the appropriate orders will get place on my behalf.

I choose to be an independent online trader, the sites are still happy to provide me with advice and assistance. I can have access to their brokers, risk management monitors, information management personnel, technicians and other supporting personnel around the clock. They stay behind me all the time.

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Online futures trading

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The greatest offer

When I am using online futures trading the orders that I give go directly to the electronic exchanges or filling broker in the pits. They are send directly and also electronically to the various futures exchanges for execution and plus not to a human broker for review and approval. Actually the orders that I make online are in validation and risk screening processes are completely automated so my orders are routed straight through to their destination where there is no human interventions. Trough the same high-speed pipelines fills come back too. Of course that the benefit of the advanced orders routing technology is faster order execution and also fill reporting. I only wait seconds so that the market orders to be executed.

I like the online futures trading because the offer orders executions and fill reports too are electronic and traditional open-outcry futures markets. Not all online futures trading allows using the both executions and fill reports in the electronic futures markets, some of them actually don’t have infrastructure or even the technology to allow the both methods, even though some of the futures trading still takes place in the pits. So you already know that is better to choose the online version where you could use the both ways, why do you need to be limited so find carefully the best online futures trading site.

The online sites for futures trading have order desks ready to assist you with placing orders or to even ask questions about your activity or account. 24 hours a day and 7 days a week they gave me futures professional available that I can contact via toll free number. They offer around the clock a future trading whenever the markets are open and I can trade when I feel is most convenient and I can take advantage of trading opportunities whenever they might arise. The online futures trading are also giving me opportunity to make daily futures reports as well as trade recommendations, like hightower and Helms Reports are available on a daily basis.

For all new users

When I needed to chose the right platform I was assured that every futures and options quote are going to be real-time. Whatever I was viewing quotes were streaming in real-time. I get 24 hours a day real-time futures and options quotes. When trading futures online I am assured that I am offered Exchange Minimum Margins. In fact, for day trading, they give me significantly lower margins.

I can update my online account and review. I am seeing in real time via trading platforms live account balance, orders, position margins and real time profit and loss. I actually know where my account stands at given time and that is one of the best things that you can expect from the online futures trading.
I always get an offer like a competitive commission rate whether I trade online or by phone and by using available discount futures and brokerage services. For everyone that decides to open an account the online futures trading can give discount for new users and if you prefers to trade by phone they can accommodate you and still provide you with a low, competitive futures assisted rate.

Ask questions about trading specifics, the markets, the trading platforms or account question the expert broker will take time to answer all of your questions. They will always give you to feel comfortable if you contact them. They really care about you.