Читать книгу Common Sense Methods to Inexpensively Get Started In Trading the Financial Markets - Dave Ph.D Walters - Страница 4

REALISTIC TRADING REQUIREMENTS

Many courses being sold out there don't and won't tell you up front that you generally need a well-funded trading account in order for their system to work. Some may require several thousands of dollars to offer any profit potential. If you are using leverage in any way, you may also need a decent credit rating which may vary between brokers.

All the course sellers care about is getting your check and maybe doing some chat assistance until you give up. They will offer a "money back guarantee" but it's usually so convoluted with restrictions that most people give up. Or they will say you didn't follow the rules properly. Maybe after a while they will close down, and reappear with a new name and sell the same old stuff.

The more money you can start with, the better . When you are trading with small accounts, $3000 or so (if the broker even lets you, depending on the trade), often times the costs of trading (margins, round trip brokerage fees) really add up quickly. Even if you are a decent natural trader and doing small profit trades (scalping) depending on what you are trading, you often times make little or no money due to profits being eaten up by fees. That's why you need to get the best broker with the best rates.

The other things the course hawkers won't tell you is the very high failure rate of those who try trading. It ranges anywhere from 95% failure in certain instruments to 80% in others. Why? There are many varied reasons such as:

•Emotional trading

•Failing to notice details

•Lack of a plan

•Poor self-discipline

•Poor risk/money management

•Poor memory

But another reason which is beyond your control is insider trading and after hours trading (we are not included in these goodies enjoyed by Wall Street) and the fact that you are competing against banks, highly trained professionals with degrees, hedge funds, huge multi-national corporations, and sharks like myself.

For example,you may have spent a few hours researching the news and markets and have decided that a currency, stock, or whatever will rise in price. So you get in, hoping to do well… and it drops like a stone. What may have happened is a hedge fund may have sold a few million shares, or a huge corporation repatriated a few billion dollars, or some unexpected bad news changed the market.

And you can beat yourself up, think you're an idiot, but there's nothing you could have done-and you have to understand that. Also, the markets change in their behaviour, often from hour to hour, day to day, or even over weeks and months. We all know what happened in the latter half of 2008… the markets as a rule dropped, the US dollar dropped, and gold skyrocketed. If positioned correctly as I was,this was a fabulous opportunity.

In times of uncertainty (daily, weekly, or monthly) the market may very well jump all over the place with no rhyme or reason. A wise trader takes the day or week off and enjoys a holiday.