Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke
Why do most traders actually lose money? Well, it could be a lack of information or lack of ability to apply sensible rules. Here's an overview of what makes traders likely to succeed. Protecting your capital and good money management rules are important as mentioned by John. Here's his article:
Are you attracted to the idea of being in control of your financial future, but confused about how to start investing in the stock or share market, while avoiding costly mistakes?
Or maybe youre disappointed with your performance so far? Does it sometimes feel like every time you take the plunge and buy into the market, the price goes down?
Youve probably attended seminars, read other newsletters or broker reports telling you to buy this or buy that ..... youve probably heard or read a lot of confusing and sometimes conflicting information?
The real surprising facts are that very few online investors actually make money long term.
Youve worked hard in your life to get your investment nest egg together so far - but now where to from here?
Maybe you want to develop some extra income or even manage your own superannuation retirement fund? For instance, from 1 July 2005, as a result of new rules on choice of superannuation fund, for the first time millions more Australian employees will be able to choose a fund for their future superannuation guarantee contributions.
Maybe youre attracted to the charts you've seen showing the power of compounding investments & have worked out the benefits to you of having a higher percentage return?
If you dont want to be saddled with a "do-nothing" portfolio that adds nothing to your bottom line or even worse, goes backwards, then please take a moment to read on.....
The reality is that only the very few achieve long term success by online trading or investing in the stock or share markets around the world. Even less for those who are online trading in the highly leveraged CFDs, futures, options, FX & other commodities markets.
The good news is that the skills can be learned from expert investors and traders who have gone before you and can lead you across the minefield. You will still lose - and may lose regularly sometimes - but the key difference between those who win or those who lose overall is to keep the value of your total losses low compared with your profits gained.
In his definitive book Trade Your way to Financial Freedom, Dr Van Tharp calls this expectancy.
Improving your own online investing or trading performance in the stock or share market & developing your own home based business requires investors and traders to learn how to strengthen each of the three legs of your investing or trading stool, as first described by Dr Alexander Elder in his books Trading for a Living & Come Into my Trading Room:
•Money & Risk Management and •Your own personal Psychology
At the very least, you need all three legs to be very strong - in order to survive, then thrive to successfully make money & outperform in the stock or share market. As Dr Elder says, the stool will not stand on just two legs.
Very experienced online traders and investors John Atkinson and Jim Berg, authors of the soon to be released Investing Online Newsletter© and the Online Trading Report©, prefer to add a fourth leg when they invest in the stock & share markets - that of fundamental analysis.
This allows them to find the most fundamentally sound and the technically strongest up trending stocks and shares to increase the odds in their favour.
As part of his overall money & risk management, John Atkinson has designed and developed his own Portfolio Management tools to plan and track individual stock selection, optimization and portfolio growth. John Atkinson knows first hand what it means to lose enormously, both financially and emotionally in the stock or share market. He lost his Sydney Harbour waterfront home in the technology stock crash of 2000 and beyond. He was set back fifteen years financially and had to start almost over again.
John then searched the finance education world for the best investing online & online trading information to learn how to trade and invest online successfully.
With his experience learnt from the school of very hard knocks, John Atkinson now aims to help online investors and traders avoid the pitfalls that await unsuspecting novices and teach them some of the methods hes since learnt to trade profitably and with much better risk control.
In direct contrast, Johns partner, Jim Berg is a former broker, private trader and lecturer with over 20 years experience in the investment industry. He has appeared on CNBC Asia and Market Wrap and is a regular guest speaker at the Australian Stock Exchange (ASX), Sydney Futures Exchange (SFE), Australian Technical Analysts Association (ATAA) & Traders Expos in capital cities. The first edition of his book The Share Traders Handbook, Fundamental & Technical Analysis Combined has literally been a sell-out success.
Using the tools and trading strategies from his workshops and seminars, Jim Berg won the 2002 Personal Investor Magazine Trading Competition.
The first step is to protect your capital and survive in the market long enough before you can profit. Instead of giving you a fish (e.g. stock tips), Jim Berg and John Atkinson teach online stock & share investors and traders how to fish (invest) for life. With the knowledge gained, you will know where the ledge is - to be able to protect yourself initially from the pitfalls of the markets that lay ahead to trap unprepared investors.
The second step is learning how you can grow your portfolio and thrive in the stock or share market. Jim Bergs investment strategies have achieved breakthrough results and are very different to the way the majority of investors operate.
Jim has also recently been invited to write regular articles for the ASX own newsletter.
Author Jim Berg says:
"We heard from several people who came out of investing & online trading seminars with some education but wondered what to do next? Others contacted us wondering where to begin or how to improve their current portfolio performance.
We realised many online stock and share market investors and traders are looking for on-going support to help lead them through the stock or share market minefield, dodge the pitfalls and actually profit long term. Thats why John and I decided to team up together to provide weekly guidance, with easy to follow step-by-step investment strategies for everyone who is looking to invest in any of the stock or share markets around the world today.
Our aim is to help people from all walks of life develop into the best online investor or trader that you can become and to generate the returns from your investments that you deserve."
The Investing Online Newsletter © will teach investors how to find, select & manage which stocks or shares to buy; money & risk management; when to sell; traders & investors experiences; psychology, fundamental & technical analysis, & portfolio to track weekly performance of sample selections. Visit www.sharetradingeducation.com now & register to a FREE exclusive online trading & investing stock market club with access to FREE downloads
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