Proper Allocation of Your Assets Is Critical Factor for Successful Trading

Dec 22, 2010 | Uncategorized

Stock moves are based on fear and greed. Unfortunately, basing buying decisions on greed and selling decisions on fear leads to bad decisions. Buying greed and selling fear leads to buying high and selling low. It’s not just the execution price that is the problem, however. Being controlled by fear and greed leads to bad money management decisions. Nearly all investors can state a case where they were extremely confident about a stock — and whether it was based on a strong technical or fundamental picture, greed takes over and money management decisions are ignored.

The stock may be at $10 and you are certain that it will hit $20. As a result, you load up on the stock with a large portion of your assets. Unfortunately, before hitting $20 the stock falls to $7. You were right about the move but wrong on the timing. Because you had too much money invested, you couldn’t stomach the drawdown and the stock was sold for a loss.

The lesson to long-term success is proper allocation of your assets. In our example, if the investor had not loaded up on the stock trade, he could have ridden out the short-term decline and enjoyed the benefits of his correct projection.

Many traders lose everything in the markets because they wager an inappropriate percentage of their trading capital on a single position. Unfortunately, that single position invariably turns out to be the worse of all the holdings. When the trade goes badly, the adverse effect is crippling.

Staying power is important in successful trading. While valuation, trend direction, and timing are all important, proper position sizing is the most critical. With proper position sizing you can be wrong and play another day. With bad position sizing, you’ll end up with big losses and little hope of recovery.

Instead of buying from greed, treat every position like it could be a loser. Yes, there is power in positive thinking but overconfidence leads to bad results. Recall that 80% of all motorists think they are above average behind the wheel. Shun your pride and you will make better decisions. Don’t attribute winning positions to smarts and losing positions to bad luck.

Having a positive attitude about your trading system and your longterm goals are important. However, overconfidence in any single trade can cause you to mismanage it by taking on an undue amount of risk. If you believe every trade will be a winner, the need to confirm that belief may cause you to stay too long in a trade that has moved against you.

It may also prompt you to take a position size that is simply too large. Staying in a trade longer than you should or having too much money at risk is the surest road to disaster.

FREE WEBINAR – Modeling Success Qualities of Top Traders – with Adrienne Toghraie

Dec 21, 2010 | Uncategorized

01/13/2011 4:30 PM Eastern Time, register at http://prowebinars.na5.acrobat.com/modelingsuccess/event/event_info.html

ADRIENNE is considered an expert by her peers in the financial community for coaching traders, brokers, and investors to their next level of success. Her 11books on the psychology of trading have been highly praised by financial magazines. Adrienne’s public seminars and private counseling have achieved a wide level of recognition and popularity, as well as her television appearances and keynote addresses at major industry conferences. Adrienne has coached some of the most success- ful people in the world. What makes these great people unique? What makes them so success- ful? The answers to these and other questions are explored in her seminars, books, CDs, and DVDs, which form the core of Adrienne’s Modeling Excellence work with professionals who want to reach higher levels of success.

Five recorded sessions from the 21st Annual Traders Seminar in Las Vegas RAW AND UNCUT

Nov 13, 2010 | Uncategorized

Finally it’s happened. After much lobbying from our clients, we’ve been persuaded to release the raw and uncut recordings from 5 of the sessions at the October seminar in Las Vegas.

The attendees who joined us this year all agreed; this year’s seminar was one of the best ever. With these recorded sessions, you hear the speaker and see the presentation or live charts the speaker showed the attendees.

This is the raw and uncut recordings, no editing, it is what it is. Check out the speakers and topic below, then at the bottom of the page, you’ll see the price. Attendees for the 2-day seminar paid up to $996 for 2 full days of sessions, so I think you’ll agree you’re getting a good deal.

Intermarket analysis – Profitable trading strategies for commodities, stocks, bonds and currencies.

I’m exhausted – How to identify when a ticker has exhausted a move up or down and what to do next.

Around the world in 80 minutes – Global equity investment opportunities to capitalize on future trends.

The relationship between commodities and currencies in the context of the MACDI divergence strategy.

The Band wagon – AIQ Bands, Bollinger Bands, Keltner Bands; Effective use of Bands in trading decisions.

More info on speakers and topics at http://aiqsystems.com/vegas2010webinarrecord.htm

5 SESSIONS BUNDLED PACKAGE

Delivered streaming from our high speed server.
Watch them as often as you want, as many times as you want.
ONLY $279



or call 1-800-332-2999

en_GBEnglish
en_GBEnglish