Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke
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 you're 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?
That's understandable...
You've probably attended seminars, read other newsletters or broker reports telling you to buy this or buy that ..... you've 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.
You've 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 you're 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 don't 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 CFD's, 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':
- Technical Analysis
- 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 he's since learnt to trade profitably and with much better risk control.
In direct contrast, John's 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 Berg's 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. That's 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."
Sharetradingeducation.com includes the Investing Online Newsletter ©, due July 2005 to teach online investors how to find, select & manage which stocks or shares to buy; money & risk management; importantly when to sell; traders' & investors' experiences; psychology, fundamental & technical analysis, articles from leading authors;& a DFS Equities portfolio to track weekly performance of sample selections. The first editions of the Investing Online Newsletter © will also cover how you can draw up your own investment or trading plan.
Also at Sharetradingeducation.com:
* Jim Berg's Trading Strategies with Metastock Home Study Course with one month's email support from Jim Berg
*New Ebook of articles written by John Atkinson for Daryl Guppy's newsletter - 'The Atkinson-Guppy Articles'
* Stock & Share Market Home Study Courses on the work of Jim Berg, Daryl Guppy, Alan Hull, Simon Sherwood & Van Tharp
* Money & Risk Management Portfolio Tools.
* A FREE exclusive online trading & investing stock market club with access to FREE downloads
Visit http://www.sharetradingeducation.com.
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exitingMore Stocks & Mutual Funds Information:
Related Articles
Pathways
During our travel down life's path we come to many places where the trail divides and we must make a decision. Some involve psychological (emotional) choices - marriage, divorce, leaving home, career changes, etc.
Some Good News for A Change
Before we get into all the good news out there, let us first take a look at what the term "news" really means. By definition, the term "news" means the exception to the norm.
The 401(K): How The Insider Has Stolen Your Retirement!
Mutual funds were moderately successful in creating a presence in the stock market until the advent of the investment retirement account and in particular the 401(k). Corporate insiders persuaded the federal government to allow for the 401(k) in lieu of offering employees the traditional pension.
Red, Green, Yellow - or - Stop, Go, Go Very Fast: Which Describes Your Online Trading?
Ever notice how behavior in one area of life can apply to behavior in other areas of life? For example, I've noticed a number of things while driving that apply to online trading. One of them is regarding how people behave toward traffic signals.
Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke
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 you're 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?That's understandable..
Different Ways of Buying Stocks
Let's say you are interested in this one company. You read its annual report, like what you see and your calculation indicates that the stock is trading way below its fair value.
Momentum
One of the basic laws of physics states that a body in motion will continue in motion in the direction it is going until interrupted by another force.That basic physics law also applies to stocks and mutual funds.
Mousetrap
The spring-loaded rat catcher is the ultimate low-tech device invented more than 100 years ago and remains the best demouser in the world. It is so simple anyone can master it and best of all you can keep on using it year in and year out.
What Can Model Airplanes Teach You About Trading?
I was devastated!I just couldn't believe it. I was 10 years old and my dreams were shattered.
Dispelling Illusions of the Stock Market
How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening.
Two for the Money
Look back over the years and try to remember how many different stocks and mutual funds you have owned. Suppose you had owned only 2 different equities during that entire time.
365/7/24
What does it take to be a stock trader? It takes a total mental commitment to the task. It becomes a complete way of life.
Long Term Financial Vehicles
Investing in long-term financial vehicles give you the most gains but it also puts your funds at greater risk. There is much truth to the saying, "there is no gain if there is no risk".
Why Technical Indicators
The fight continues to rage among traders who use technical indicators and those who prefer fundamental information to establish new positions and to exit current positions.The fundamentalist believe in knowing all the facts about a company such as price earnings ratios, sales growth, product margins, management capabilities, cost of production, cash flow, etc.
Stock Trading Secrets?
How often have you come across an advertisement or e-mail proclaiming to "teach" you the stock trading secrets that Wall Street Insiders don't want you to know? Usually included in the descriptions of these trading products are claims such as "Make 10K monthly in minutes per day", or "Learn the secrets of Professional Stock Brokers", etc. etc.
Trading Tips No 8: Picking the Best Stock Market Price
Carefully thinking through your goal as a trader is of prime importance, when picking the best stock market price. It is very difficult if not impossible to meet a goal that is ill defined.
Precision Money Management
This article describes the model of a natural relationship between trading system performance, trade position size, stop loss settings and profit goals. The model consists of algebraic equations that specify the trade size and stop loss settings needed to meet profit goals over a specified time period for any consistently used trading system for which historical performance data is available.
The Seven Mistakes All Novice Traders Make and How to Correct Them
We learnt the following the hard way! If any of these things applies to you, don't worry - there is an easy solution!MISTAKE ONELack of Knowledge and No PlanIt amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course.
On Line Stock Trading: Small Cap & Micro Stocks Go Up and Down - How Can You Profit?
Success in small cap & micro cap stock trading like with any other business in life comes from being able to see the big picture and from paying attention to the small details.Let's say for example that you are a business owner and you have a jewelry store on a given street just like the guy in the other corner does, but still the other guy is making 5 times more profits than you are only because he's doing something different.
Inverted Interest Rates
Inverted interest rates? What's that? Who cares? Even if you don't understand what Mr. Greenspan is saying (and almost nobody does) it is important to you because it could mean you might lose you job next year or have to cut back on some of the things you want to acquire.