You probably know that emotions are an investor's worst enemy. So in order to invest profitably in shares, you need to have an investment strategy in place that overrides them.
You might have heard of a trailing stop losses. Trailing stop losses are a great way to keep your emotions at bay by having strict levels that you sell a stock at.
But what if you could improve this strategy?
Read ... ››› more
Running a stop loss is one of the easiest ways for investors to keep a lid on their losses when investing in shares. Trailing stop losses also have their benefits as they lock in profits when a share price rises.
But what should you do when it comes to stop losses with your dividend paying shares? After all, you bought them for their dividend payments, not capital appreciation.
Here's one wa... ››› more
Last week, markets across the world were extremely volatile. Concerns over growth of the world's economy dented investor confidence. The swings on the market were hard to keep up with.
It's when the markets are like this that risk management becomes ever more important. When markets are trending upwards, it's easy to forget about vital strategies such as stop losses.
So why are stop losses s... ››› more
Every single Forex trader out there wants to be profitable, the most basic measure of which comes in the form of net profits and losses.
And so, it's common to see traders not pay attention to their break-even trades.
What many traders don't realise though is that there's more to break-even trades than just the zeroes they register in their trading journals.
Before we get ahead of ou... ››› more
When any shares you own have gone through a rough patch, are you on the phone to your stockbroker selling them?
If this is something you would do, what sort of methodology did you use to justify selling?
Knowing when you'll sell a share is just as important as knowing when to buy a share. It has a huge impact on your investment portfolio.
So what sort of exit strategy should you use to kn... ››› more
Risk management is a vital part of investing and trading. If you have discipline and stick to the risk management strategies you have in place, your portfolio will perform better.
Take stop losses for instance. It's easy to set a stop loss when you buy shares, but it's another thing when it comes to sticking to them. You might want to hold on just that little bit longer just in case the share p... ››› more
It's been said that the single most important influence in building equity in your trading account is the size of the position you take in your trades. I disagree.
Let me explain why diversification will keep you poor and the one surprising key you should focus on instead for real trading profits.
Learn from the successful investors in the world
In the book "The Zurich Axioms" (2... ››› more
After a rocky start at the beginning of the year, the market has continued to climb. Again the Johannesburg Stock Exchange has been hitting new highs. Could a correction of say 10% to 20% be around the corner? It's always a possibility. So it's crucial to protect your investments, especially those you have earmarked for your retirement. And the closer you are to retirement age, the even more cruci... ››› more
It might surprise you to hear that there are commonalities between tennis and investing. If you can apply the rules of playing defensive tennis to your investments, you'll prevent yourself from making the biggest mistake in investing. Here's what you need to know…
Investors and tennis players
Retail investors are like amateur tennis players. They make a lot more mistakes than points.
In h... ››› more
Large financial institutions and traders are out there looking for retail forex traders to wipe out in the market. It's a great way for these larger traders to make a profit. You put a trade on. Your trade hits its stop. You're out your trade. Then the market swings the way you thought it would. Typical. So what can you do to protect yourself falling victim to a stop loss hunter? Read on to find o... ››› more
If you've been trading forex for a while, you might have fallen victim to stop loss hunting. This is when the big traders take out the small players in the market and gain from it. If you've seen the market move against you only enough to trigger your stop then for it to correct and move the way you wanted it too, you could have been a victim too. So what is stop loss hunting? And how can you prot... ››› more
Investing in shares comes with risks. And to take care of the downside risk, stop losses are a must. You decide how much of your initial investment you're prepared to lose and set your stop loss at that. Then if the share price falls and hits that level, you sell. Simple as that. But using stop losses also comes with its issues. Read on to find out more…
Setting a stop loss level
Using a ... ››› more
All investors have their bad habits. Some of these bad habits are more costly than others. One expensive bad habits is holding onto a share that's not performing. You're determined not to sell until the share price rises back up to the level you bought it at. So what's so bad about holding onto shares like these? And what can you do to make sure you get rid of shares at the right time? Read on to ... ››› more
Any decision you make when it comes to your investments should follow a clear plan. Unfortunately the vast majority of investors make investment decisions without a plan. They just do it, with no or little methodology behind their decision. But if you can apply a clear plan to your investments and stick to it, you're in a far better position to profit. Let's take a look at how to achieve this…
... ››› more
When you trade contracts for difference (CFDs), or any other financial product, it's crucial you manage your losses. No-one enters a trade thinking it's going to turn against them, but it's something you have to be prepared for. Otherwise you're not going to survive very long as a trader. So what can you do to minimise your losses? You can opt for a stop loss or a trailing stop loss. Let's take a ... ››› more
Today I'm going to show you something that I've never shown anyone before!
It's a little known secret that I recently used to bag a 20% trading gain for my subscribers.
A simple trick which can minimise your losing trades, maximise your profits and give you more room to find higher profitable trades.
Make sure your trading gains don’t go stale!
On the 31st March 2014, I told my Red Hot... ››› more
Investing in the stock market is a learning curve. From the first investment you make, you start learning more and more. But there are a few golden rules that can stand you in good stead for when you invest. Some of them may seem common sense, but it's surprising how you can forget some crucial aspects when an investment opportunity presents itself. Read on to uncover what these are…
*********... ››› more
If you invest in penny shares, there's a chance you'll let the dream of making massive gains drive your decisions. And in the process you'll throw any type of risk management out of the window. That's one way to ensure you don't make any decent money investing in penny shares. But there is a strategy that can limit your risk. Read on to find out what it's all about…
Don’t invest in penny sha... ››› more
“I entered an ALSI trade the other day at 40,000. I wanted to protect my portfolio, so I set a stop loss at 39,910. The problem is, the market went below my stop loss (39,910) and I LOST even more than I should have. Please explain why?”- Roxy
Every good trader and trading book tells you how crucial it is to put in a stop loss when you trade.
But if you don't know HOW to put a stop loss... ››› more
Many investors will be familiar with hanging onto a losing share in the hope it's going to bounce back and the market simply got it wrong. This may surprise you, but trading and investing psychology is the strongest indicator of stock market profits and losses. And how everyone reacts to it can be slightly different. You need to lose any overconfidence you have. Here's why…
Overconfidence is a... ››› more
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