No matter what trading strategy you have, there's no escaping the fact that you're going to lose money at some time or another in your trading career.
But how much money you lose is entirely up to you!
You see, the problem that most beginner traders have is that, they get into a trade and have no idea what they can lose compared to what they can make…
And that's why today I'm going to ... ››› more
I have a confession.
During Easter, I took full advantage and decided to pig out on all the chocolate and fast food I could possibly find.
I put on two pathetic kilograms.
If you put on that weight, do you think it will take you a week to lose those two kilograms of fat?
You'll need to diet and exercise for at least a few months, to lose those two kilograms, which took just o... ››› more
When you trade, you need sound money management principles in place. Otherwise one big trade that doesn't go your way could leave you out of trading funds. That's where position sizing comes in. It ensures that you don't risk too much on one trade. And if the trade flops, you'll still have enough money in your trading pot to continue. Let's take a closer look at position sizing…
What is positi... ››› more
In a number of ways, buying shares is the easy part. The hard part is knowing when to sell. But to protect yourself against losses and not banking gains, you need to have an exit strategy in place. And you should make sure you do this as soon as you buy a share. Let's take a closer look at why you should have an exit strategy in place…
A good investment consists of two things: A good entry pri... ››› more
I've spent over R100,000 worth of products, market newsletters, financial losses and terrible financial advice from executive traders…
All I used to hear were false promises, ego driven incentives and chauvinism where they guaranteed huge returns in a short period of time.
Most of the guys who tell you they have a holy grail for trading has either an inferiority complex or the need to be right... ››› more
Traders love to find ways to limit their losses and protect their winning trades.
But the problem is this:
They feel the need to work on convoluted methods with plenty of formulas, numbers and unnecessary
calculations to find ways to limit their losses.
But it doesn't have to be so complicated.
I'm going to share with you a simple method that will cut your number of losing Forex tr... ››› more
There are plenty of trading myths out there which generally scare potential traders.
Here's one of them…
"Day-trading in the stock market is the most dangerous way to trade!”
Quite simply, day-trading is a style of trading where you'll take one or more positions within one trading day!
So you'll trade anywhere between the open and the close of the trading day.
Many novice trader... ››› more
"Timon, I've read a few trading books and now I'm ready to try and make an extra income from trading.
I just wanted to know why you think most people fail at trading?"
This was a question asked by D.G on investorsclub.co.za.
To answer D.G., I’m going to tell you three tips that it takes, to be a failure of a trader, so you know what NOT to do!
Failure Tip #1 Lack of a trading strate... ››› more
There are so many trading books on stock market strategies, money management and general knowledge on trading the markets.
And funny enough, you could read every single strategy in every trading book and still fail as a trader!
Text-books often forget to mention the three vital emotions that can either make you or break you as a trader!
Let me show you how to overcome these emotions so y... ››› more
"Why do over 80% of Forex traders lose money?"
This is a common question I'm asked on a monthly basis!
Let me tell you three main reasons why so many Forex traders lose money...
Reason #1: Media hype gets them in!
Traders tend to jump straight into the Forex market based on what they see and hear on Bloomberg, CNBC and what they read in the newspaper.
Remember, when you read a news ... ››› more
When it comes to trading, even the world's best traders are happy when they call the market right just 60% of the time.
After all, with good money management, that weighting of more winning trades than losers is enough to make you a fortune.
So you can imagine how excited traders get when they have an opportunity to call the market right 80% of the time.
And today, I want to tell you how ... ››› more
This free tool will help you to calculate how many Single Stock Futures contracts you should trade in any one share.
This will help you keep strict money management rules using the percentage rule.
Here it is...
So, simply click here for your free Single Stock Futures risk calculator tool...
Always keep in mind,
“Wisdom Yields Wealth”
PS: Click here today to... ››› more
Every month, I like to see what the markets are doing worldwide. I analyse the price charts of the biggest stock markets in the world.
So, last week I was sitting down at my desk at around 11pm, casually doing analyses, until I came across a very frightening chart.
It told me that the next stock market crash could be coming, and it's not going to be a small one.
Here we go... ››› more
It can take the average person years, if not decades, to learn (if ever) how to save, invest, minimise taxes and enjoy a measure of financial independence. Yet in a new study out of Texas Tech University in the States, Dr Michael Finke and his colleagues reveal that financial literacy actually worsens as we get older. The study shows that knowledge of basic concepts essential to effective money ma... ››› more
Many traders who come into the market, blow their trading account to smithereens.
Simply, because they are not aware of the essential money management rules that they need to keep their portfolio balance afloat.
Well, I'm about to introduce to you to a rule, that could save your trading account!
It's a rule I've been following for almost a decade, and has helped my portfolio stay on a c... ››› more
Trading is riskier than ‘standard' buying and selling of shares. If you're not careful, one bad trade could easily wipe out your entire starting capital (and more) and end your trading career before it starts. Read on to find out three key money management rules for trading…
Good money management is about avoiding exposing yourself to this scale of risk in the first place, explains John Burf... ››› more
Most people tend to make excuses why they haven't started trading, saying things like:
“I don't have enough money to trade”, “I'm not smart enough”, “I don't have enough time in the day to think about trading.”
Have you said the above sometime in your life?
If you have don't worry, most traders think these things at one stage or another.
But one thing to remember is that ea... ››› more
How many times have you heard that, in order to make money, you only have to follow one simple rule?
Buy low, sell high!
But here's the thing…
This trading myth is busted.
The reality is, this rule works well in theory, but more often than not fails in practice.
And to demonstrate this, I've turned to self-made millionaire Vince Stanzione's three simple principles which fly in th... ››› more
Did you know that 97% of amateur traders lose money on the stock market?
And only 3% get to enjoy any gains?
To tell you the truth, I used to be part of that 97% during my first few years of trading... Until I developed my M&M principles that is!
My M&M principles have resulted in a turnaround in my trading fortunes.
So what are these secret principles I have learned over the years?
... ››› more
Good money management is one of the most valuable skills you can pass on to your children. It's never too early to start teaching them about money. Doing this means they'll know how to put their money to work for them and will be less financially dependent on you. You can teach your children how to be more money smart in three practical ways. It’s a myth that it takes money to make money, says ... ››› more
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