Dictionary Term Of The Day. A reduction in the ownership percentage of a share of stock caused by the issuance Broker Reviews Find the best broker for your trading or investing needs See Reviews. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A celebration of the most influential advisors and their contributions to critical conversations on finance.
Become a day trader. Introduction Forex Trading Rules: This is the most common - and yet also the most violated - rule in trading and goes a long way toward explaining why most traders lose money. Trading books are littered with stories of traders losing one, two, even five years' worth of profits in a single trade gone terribly wrong. No matter how certain the trader may be about a particular outcome, the market, as the well known economist John Maynard Keynes , said, "can stay irrational far longer that you can remain solvent.
Swinging for the Fences Most traders begin their trading careers, whether consciously or subconsciously, by visualizing "The Big One" - the one trade that will make them millions and allow them to retire young and live carefree for the rest of their lives. In FX , this fantasy is further reinforced by the folklore of the markets. But the cold hard truth of the markets is that instead of winning "The Big One", most traders fall victim to a single catastrophic loss that knocks them out of the game forever.
Large losses, as the following table demonstrates, are extremely difficult to overcome. Getting into this kind of trouble as a trader means that, most likely, you have reached the point of no return and are at risk for blowing your account. The best way to avoid such a fate is to never suffer a large loss.
The art of trading is not about winning as much as it is about not losing. By controlling your losses, much like a business that contains its costs, you can withstand the tough market environment and will be ready and able to take advantage of profitable opportunities once they appear. Whether you're a novice or an expert, these 10 rules should be the backbone of your trading career.
Currency trading offers far more flexibility than other markets, but long-term success requires discipline in money management. It's impossible to avoid disaster without trading rules - make sure you know how to devise them for yourself. It is impossible to avoid them completely, but there is a systematic method you can use to control them. We will look at five common mistakes that day traders often make in an attempt to ramp up returns.
Learn how this overlooked area of trading can help improve your gains. Even a small pip profit can mean substantial percentage returns over time. Agents, brokers and realtors are often considered the same. In reality, these real estate positions have different responsibilities Understand the difference between active portfolio management and passive portfolio management, and how each strategy benefits Identify the differences between federal and private student loans, and what Sallie Mae does and doesn't do nowadays.
Before investing in a company with multiple share classes, be sure to learn the difference between them. Get Free Newsletters Newsletters. Amount of Return Necessary to Restore to Original.More...