:
In anderen Artikeln von mir habe ich bereits darauf hingewiesen, wie wichtig eine gute Aktienstrategie fьr einen langfristig erfolgreichen Aktienhandel ist.
Nach der Leitzinssenkung in der letzten Woche scheint die erste Nervositдt der Anleger vorьber und die Lage nach der Hypothekenkrise entspannt sich an der Bцrse zusehends.
Nun ist es an der Zeit, ein erstes Resьmee zu ziehen und zu ьberprьfen, wie robust Ihre Strategie wirklich ist. Eine gute Aktienstrategie ist nicht auf eine Marktsituation optimiert – sie passt sich der Marktsituation an, d. h. sie hдtte auch in den letzten Wochen funktioniert.
Frage also:
Wie erging es Ihrem Aktiendepot in den letzten zwei Monaten?
Mцglichkeit 1:
Die erzielten Gewinne in den letzten zwei Monaten дhneln denen der Wochen und Monate zuvor.
Herzlichen Glьckwunsch! Sie scheinen ьber eine sehr robuste Aktienstrategie zu verfьgen, die in scheinbar jeder Marktsituation Ihre Funktionalitдt unter Beweis stellt.
Mцglichkeit 2:
Sie erzielten zwar Gewinne, aber deutlich kleinere als die Wochen und Monate zuvor.
Es hдtte Sie schlimmer treffen kцnnen, immerhin sind Sie noch im Plus. Allerdings wьrde ich Ihnen raten, Ihre Aktienstrategie in den nдchsten Wochen und Monaten genauer zu beobachten. Ihre Aktienstrategie scheint in einem Bullenmarkt (stetig steigende Kurse, wie wir sie in Deutschland aus den letzten Jahren kennen) besonders gut zu laufen, doch wird sich dieser Markt fortsetzen? Sie sollten sich evtl. an die zuletzt erzielten kleineren Gewinne gewцhnen…
Mцglichkeit 3:
Sie erlitten Verluste - teilweise recht groЯe Verluste
Allem Anschein nach funktioniert Ihre Aktienstrategie nur in einem Bullenmarkt und ist genau auf diese Marktsituation (ьber-)optimiert. Leider erging es den meisten Anlegern so: Eine kurze Krise und viele bisher mьhsam erzielten Gewinne sind in Rekordtempo zunichte gemacht worden.
In diesem Fall sollten Sie Ihre Aktienstrategie dringend ьberarbeiten, denn langfristig hat eine auf eine Marktsituation optimierte Strategie keine Chance auf Erfolg.
Showing posts with label Investing. Show all posts
Showing posts with label Investing. Show all posts
Saturday, 12 November 2016
Thursday, 3 November 2016
Discount brokers
Discount brokers are stockbrokers who help carry a wide variety of business deals. Generally, they accept orders for stock, stock options and futures trading deals. They are known by different names such as discount commodity brokers, discount stockbrokers and discount real estate brokers. Compared to full-service brokers, discount brokers buy and sell orders at a reduced commission.
Discount brokers allow a person to buy "no-load" mutual funds at a reduced commission. Through an arrangement with a particular fund, free mutual funds are sometimes offered. Discount brokers will often provide (for a small fee) a free 1-page Standard & Poor's Stock report on the stocks you are requesting and a 5-10-page research report. Twenty-four hour telephone stock quotes services are also provided, allowing the person to build trades.
There are four types of discount brokerage firms, “full-service,” “discount,” “deep discount” and “computer or electronic.” Full-service discount brokers offer services that are identical to a full-service broker. They own local branch offices for personal service, newsletters, a personal account representative and considerable literature. Discount firms carry out the same functions as that of the full-service discount firms. The only difference is they don’t have local branches. Their commissions are around 1/3rd the price of a full-service agent.
Deep discount brokers are stock brokers who execute only stock and option trades. They have fixed commissions (flat fee) for any trade of any size. Computer or electronic brokers offer services similar to deep discount brokers. Their service is primarily aimed at computer users who trade via the internet.
Some discount brokers, who cannot be clearly categorized, fall between "discount" and "deep discount." They cater to skilled, high-volume traders with high demands for quality service.
Thursday, 21 April 2016
Financial freedom
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Financial freedom eludes so many people these days who by all logical conclusions and observations should have obtained it. It’s commonly cited as one of the most important and sought after goals in life and yet is rarely attained. This article does not attempt to give you a magic formula for success but I do share with you the choices that made a difference to me and can, if you choose put you well on the path to freedom.
Consumption
You can choose to spend some or all of your money on “consumption” items. These include food, entertainment, holidays, housing, motor cars, hobbies, and so on. These are things we need to live on a day-to-day basis. They also consist of items that service the things we want and so improve lifestyle.
Investment
You can choose to spend some or all of your money on investment items such as revenue producing real estate, shares, interest bearing deposits, businesses that produce revenue, etc.
Consumption or investment
Two important factors need to be understood about the simple concepts of consumption and investment.
The first factor is that spending on “consumption” items results in reducing the total value of your assets (net worth). Spending on investment items aims to increase your net worth. The second factor is that you have choice. You can choose between spending on consumption or investment items.
Of course, the best spending patterns are those that aim to attain a balance between spending on consumption and investment items.
Choosing consumption or investment
You now know the difference between consumption and investment spending and that you can choose between the two.
All you need to do is to think before you spend. Consumption spending can contribute to your lifestyle (driving a new car is fun, even if it was bought on credit and has created a liability of three to five years of payments). Investment spending provides income and wealth.
Shades of Grey
There is, of course, some spending that is not clearly defined as consumption or investment. Buying your own home is considered by many to be an investment. It isn’t! The purchase usually is financed and the repayments are a liability. The upkeep of a house costs money. There are rates and taxes payable on it. You do not get any revenue from it. If you plan to sell it in a few years to make a profit on its increased value, then it may be an investment. However if you have to buy another house to live in are you really any better off?
Investment spending is necessary for building wealth
In order to build wealth, some investment spending is necessary. The more that goes into investment spending, the bigger and quicker your wealth will grow. However, if too much goes into investment spending, and not enough into consumption, then lifestyle can become meagre. But you can choose.
Accumulation over time
Most people are not born rich. Certainly, some inherit wealth, but consequently may not appreciate it. A few win wealth in lotteries, but ironically, perhaps because they have not worked for it, or are not used to it, could end up squandering the temporary riches.
Everyone, however, has one thing in common. The same amount of time goes past for each of us, and at the same rate. How you employ that time is significant.
Imagine that at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and then by the time you reach 65, you would have accumulated over $70,000 without doing anything else.
If at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and each month invested an additional $100, then by the time you reach 65, you would be a millionaire, without doing anything else.
If you did neither of these things, then the same time would pass, and you would not have accumulated any wealth.
These examples of investment, quite deliberately, use amounts of money that are affordable by most, and if spent on investment, rather than consumption, would probably not be missed.
In terms of investing, time is on your side.
Of course, you may not be 21 any more and you may wish to accumulate wealth at a faster rate. This is possible by increasing the amount invested, and the annual rate of return. It is not possible to systematically accumulate significant wealth (millions) without looking at a timeframe of several years (say 5 to 10). If you are trying to make more money in less time, then your objectives may not be realistic. Perhaps a lottery ticket, crossed fingers and large amount of luck could produce your desired result, but don’t hold your breath waiting.
The power of compounding
In the above examples there is an additional factor at work. The entire return was reinvested and participated in earning the same rate of return as the original investment. None of the investment return was withdrawn and spent on consumption items.
Financial freedom eludes so many people these days who by all logical conclusions and observations should have obtained it. It’s commonly cited as one of the most important and sought after goals in life and yet is rarely attained. This article does not attempt to give you a magic formula for success but I do share with you the choices that made a difference to me and can, if you choose put you well on the path to freedom.
Consumption
You can choose to spend some or all of your money on “consumption” items. These include food, entertainment, holidays, housing, motor cars, hobbies, and so on. These are things we need to live on a day-to-day basis. They also consist of items that service the things we want and so improve lifestyle.
Investment
You can choose to spend some or all of your money on investment items such as revenue producing real estate, shares, interest bearing deposits, businesses that produce revenue, etc.
Consumption or investment
Two important factors need to be understood about the simple concepts of consumption and investment.
The first factor is that spending on “consumption” items results in reducing the total value of your assets (net worth). Spending on investment items aims to increase your net worth. The second factor is that you have choice. You can choose between spending on consumption or investment items.
Of course, the best spending patterns are those that aim to attain a balance between spending on consumption and investment items.
Choosing consumption or investment
You now know the difference between consumption and investment spending and that you can choose between the two.
All you need to do is to think before you spend. Consumption spending can contribute to your lifestyle (driving a new car is fun, even if it was bought on credit and has created a liability of three to five years of payments). Investment spending provides income and wealth.
Shades of Grey
There is, of course, some spending that is not clearly defined as consumption or investment. Buying your own home is considered by many to be an investment. It isn’t! The purchase usually is financed and the repayments are a liability. The upkeep of a house costs money. There are rates and taxes payable on it. You do not get any revenue from it. If you plan to sell it in a few years to make a profit on its increased value, then it may be an investment. However if you have to buy another house to live in are you really any better off?
Investment spending is necessary for building wealth
In order to build wealth, some investment spending is necessary. The more that goes into investment spending, the bigger and quicker your wealth will grow. However, if too much goes into investment spending, and not enough into consumption, then lifestyle can become meagre. But you can choose.
Accumulation over time
Most people are not born rich. Certainly, some inherit wealth, but consequently may not appreciate it. A few win wealth in lotteries, but ironically, perhaps because they have not worked for it, or are not used to it, could end up squandering the temporary riches.
Everyone, however, has one thing in common. The same amount of time goes past for each of us, and at the same rate. How you employ that time is significant.
Imagine that at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and then by the time you reach 65, you would have accumulated over $70,000 without doing anything else.
If at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and each month invested an additional $100, then by the time you reach 65, you would be a millionaire, without doing anything else.
If you did neither of these things, then the same time would pass, and you would not have accumulated any wealth.
These examples of investment, quite deliberately, use amounts of money that are affordable by most, and if spent on investment, rather than consumption, would probably not be missed.
In terms of investing, time is on your side.
Of course, you may not be 21 any more and you may wish to accumulate wealth at a faster rate. This is possible by increasing the amount invested, and the annual rate of return. It is not possible to systematically accumulate significant wealth (millions) without looking at a timeframe of several years (say 5 to 10). If you are trying to make more money in less time, then your objectives may not be realistic. Perhaps a lottery ticket, crossed fingers and large amount of luck could produce your desired result, but don’t hold your breath waiting.
The power of compounding
In the above examples there is an additional factor at work. The entire return was reinvested and participated in earning the same rate of return as the original investment. None of the investment return was withdrawn and spent on consumption items.
Saturday, 12 March 2016
Finding a system to day trade the futures market
When I first became interested in trading Futures I had no idea as to where to go to get information about trading. I didn't know anyone that traded the Futures Market. In fact when I talked to anyone about Futures all I heard was "don't trade Futures, it's way too dangerous, you will lose everything you own". Indeed you can lose money fast in the Futures market, but you can also make money fast because the leverage is fantastic and that's what interested me. I knew I had to have a good system, but where would I go to find one.
At that time brokers would send you information, and maybe they still do, from various Exchanges about different trading strategies and how one might use them in a particular Futures Market. Well, this information looked pretty good! All I had to do was get a charting service and I was on my way.
I guess I wasn't as bright as the person that gathered the information for the booklets because I simply could not make these indicators work for me. Surely someone was trading successfully using this information I thought, otherwise why would they publish the booklets. With this thought in mind I felt I just needed more information.
Books had to be the answer. Like I said previously, I guess I was not very bright because after reading thirty or forty books thoroughly, some two and three times, and having applied the techniques learned from the books, I was not able to trade profitably on a consistent basis. I'm sure some are capable of using these techniques to trade successfully, but I was not able to do so. While having a book burning party a few years ago, I decided to keep one book to remind me of my experience. It's on my bookshelf and I glance at it once or twice a year to keep this experience fresh in my memory. There may be some great books out there that show you how to trade successfully on a consistent basis, but unfortunately I never found one. I wasted years on this endeavor.
By this time computer trading was getting popular. I received an advertisement about a program where I could actually write my own system and back test it to get results before actually trading it. Wow! This was great and it was only $4,500.00. They advertised anyone would be able to program this thing. Well they must have meant anyone with the exception of me. I wasted hundreds of hours trying to write programs unsuccessfully. I didn't know the program language and I wasn't able to get enough information to learn it so I decided to be intelligent about this situation and bought another program at only half the price of the first one. I was able to write a few programs that produced very well in back testing, if one could stand twenty point stops in the S&P. I really liked this idea but finally had to admit that it was not going to give me what I was searching for.
For years now I had been studying charts every single day plus weekends and evenings. Of course I was aware that all indicators, strategies, systems etc. started with price. None of these things can be made without price moving first. Price can't be wrong because it is what it is, therefore it is always right. So I decided to put all of my energy into the study of charts, or price and its movement, and finally I found it. It was right there in front of me all these years and I just didn't see it. After another year or so of perfecting entries and exits and how to read where price should go, and if it would continue on or turn at that point, I finally had a system. This system will give you profits consistently. I found that price will tell you where it is going and where it is likely to turn, and if it doesn't turn there it will tell you in advance that it will likely continue.
I had a hard time learning to trade without a mentor. It actually took years of commitment, hard work, and a lot of wasted money. If you are new to trading Futures, or any market, and you don't have a mentor with a good system that will give you consistent profits, then by all means that should be your first endeavor. It is said that 90 of everyone trading in the futures market loses. Make sure you're in the 5 that are winners.
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