Read More: http://www.lewrockwell.com/orig12/russell-r4.1.1.html
Showing posts with label Education. Show all posts
Showing posts with label Education. Show all posts
Thursday, April 7, 2011
Rich Man, Poor Man (The Power of Compounding)
MAKING MONEY: The most popular piece I've published in 40 years of writing these Letters was entitled, "Rich Man, Poor Man." I have had dozens of requests to run this piece again or for permission to reprint it for various business organizations.
Read More: http://www.lewrockwell.com/orig12/russell-r4.1.1.html
Read More: http://www.lewrockwell.com/orig12/russell-r4.1.1.html
Tuesday, April 5, 2011
A Word-Problem World: A World of Mathematical Meaning
Previously by Jeremiah Dyke: Math by Hand, Math by Calculator
Homeschoolers have a rare and terrific opportunity denied to most math students throughout the country. Homeschoolers possess the ability to finally relate to mathematics in both a meaningful and instructive way by creating applications to which a solution has relevance to the student; a solution worth deriving.
Read More: http://www.lewrockwell.com/orig10/dyke9.1.1.html
Homeschoolers have a rare and terrific opportunity denied to most math students throughout the country. Homeschoolers possess the ability to finally relate to mathematics in both a meaningful and instructive way by creating applications to which a solution has relevance to the student; a solution worth deriving.
Read More: http://www.lewrockwell.com/orig10/dyke9.1.1.html
Sunday, July 18, 2010
The Seven Rules for New Normal Markets
By Shah Gilani
By The push to make trading Wall Street’s biggest money-making business, while narrowing spreads to reduce risk (especially for active professional traders), and simultaneously gaming the inside track by managing and trading against order flow, is the New Reality.
And for retail investors, that’s what creates the “New Normal” - stock market returns that are much lower than the oft-quoted long-term averages of 10% or more. To avoid getting whipsawed in the New Normal markets, investors need to copy the insiders who play the game they created with these seven New Golden Rules of investing:
1. Shorten hold periods for all investments, other than those “held to maturity.”
2. Invest like a trader: Take profits regularly, and cut losses sooner.
3. Don’t be afraid to step in front of standing orders by lowering your offer price a penny, or raising your bid price a penny, to get your orders executed.
4. Trade and invest where you can find the deepest quotes, meaning where volume is more substantial on the bid and offer side of quotes. More is always better. If your brokerage facility doesn’t offer market quotes that are transparent, switch to one that does.
5. Whichever brokerage facility you use, find out what their execution policy is. They must have a “best practices” policy regarding execution. Make sure to get it in writing.
6. Ask what your brokerage’s policy is regarding stop-loss orders. It is critical to know how they will handle the next “flash crash,” when it comes. And believe us … it is coming.
7. Complain about bad executions. It sounds cliché, but the squeaky wheel gets the grease. The pros squawk all the time, and sometimes they get better fills.
http://moneymorning.com/
By The push to make trading Wall Street’s biggest money-making business, while narrowing spreads to reduce risk (especially for active professional traders), and simultaneously gaming the inside track by managing and trading against order flow, is the New Reality.
And for retail investors, that’s what creates the “New Normal” - stock market returns that are much lower than the oft-quoted long-term averages of 10% or more. To avoid getting whipsawed in the New Normal markets, investors need to copy the insiders who play the game they created with these seven New Golden Rules of investing:
1. Shorten hold periods for all investments, other than those “held to maturity.”
2. Invest like a trader: Take profits regularly, and cut losses sooner.
3. Don’t be afraid to step in front of standing orders by lowering your offer price a penny, or raising your bid price a penny, to get your orders executed.
4. Trade and invest where you can find the deepest quotes, meaning where volume is more substantial on the bid and offer side of quotes. More is always better. If your brokerage facility doesn’t offer market quotes that are transparent, switch to one that does.
5. Whichever brokerage facility you use, find out what their execution policy is. They must have a “best practices” policy regarding execution. Make sure to get it in writing.
6. Ask what your brokerage’s policy is regarding stop-loss orders. It is critical to know how they will handle the next “flash crash,” when it comes. And believe us … it is coming.
7. Complain about bad executions. It sounds cliché, but the squeaky wheel gets the grease. The pros squawk all the time, and sometimes they get better fills.
http://moneymorning.com/
Thursday, July 30, 2009
Trend Following Success- Intelligence or Discipline
By: Andrew_Abraham
InvestorEducation
seem to have this discussion quit often. In order to achieve success in the commodity markets or forex markets does one need to have a higher level of intelligence than most. Past experience has proven this not to be the case. Example after example both public as well as in our brokerage have proven this to me.
The best example of how great intelligence did not assist in results is Long Term Capital. Their offices were full of PHDs. This did not seem to help them. They forgot the holy grail of trading, RISK MANAGEMENT. They blew up not once… but I think they blew up a second time. In our brokerage I have seen some very smart people and 1 PHD who had the most complicated (and interesting) ideas but they did not make any money. My goal is to compound money…and I learned what works and what does not.
Trend following a large basket over time offers the best potential. It is not rocket science…The real deal is Discipline and Patience. Our model in which we have traded real time for more than 2 years does not need our intellectual capabilities. The reason our model works is very simple, our risk and money management.We know that no one ..not CNBC or Bloomberg can know in advance what will happen in any market. Even more interesting is that …even if they did…the markets can react in a way no one even expects. None of the daily noise in the markets or news effects our model. More so…our egos… pride… opinions do not come into play.The irony is people expect successful traders to know the future. Due to this, it is hard for them to like trend following. I have heard a myriad of reasons such as it takes too much time, you are not having a good period or the best one.. it is boring. Understanding these statements is what makes a difference between a successful investor and not a successful investor. Another example is, after earning double digits last year for us and our clients…had a client say… you really have not done really well this year… nothing has happened.
Taking this into context… he was asked.. how did your mutual funds do over the last 10 years…duh… How about nothing..how about down..This is an example of patience and discipline in trend following in the commodity markets and forex markets. More so… we did not graduate ***** Laude from Harvard nor any of us work for Goldman Sachs. We are not on Wall Street.Some investors don’t like these facts. Again it is funny when one of the most successful trend followers last year was a taxi driver… now managing $4 billion dollars, or there is the ex policeman from Vienna Christian Baha, let alone the offsprings of the turtle traders.The key to successful investing in the commodity markets and forex markets are plain and simple. Simple ideas that have stood the test of time… with a strong measure of risk and money management… Discipline and Patience. The rest is empty ego…and not the way to compound your way to wealth.
Andrew Abraham
www.myinvestorsplace.com
InvestorEducation
seem to have this discussion quit often. In order to achieve success in the commodity markets or forex markets does one need to have a higher level of intelligence than most. Past experience has proven this not to be the case. Example after example both public as well as in our brokerage have proven this to me.
The best example of how great intelligence did not assist in results is Long Term Capital. Their offices were full of PHDs. This did not seem to help them. They forgot the holy grail of trading, RISK MANAGEMENT. They blew up not once… but I think they blew up a second time. In our brokerage I have seen some very smart people and 1 PHD who had the most complicated (and interesting) ideas but they did not make any money. My goal is to compound money…and I learned what works and what does not.
Trend following a large basket over time offers the best potential. It is not rocket science…The real deal is Discipline and Patience. Our model in which we have traded real time for more than 2 years does not need our intellectual capabilities. The reason our model works is very simple, our risk and money management.We know that no one ..not CNBC or Bloomberg can know in advance what will happen in any market. Even more interesting is that …even if they did…the markets can react in a way no one even expects. None of the daily noise in the markets or news effects our model. More so…our egos… pride… opinions do not come into play.The irony is people expect successful traders to know the future. Due to this, it is hard for them to like trend following. I have heard a myriad of reasons such as it takes too much time, you are not having a good period or the best one.. it is boring. Understanding these statements is what makes a difference between a successful investor and not a successful investor. Another example is, after earning double digits last year for us and our clients…had a client say… you really have not done really well this year… nothing has happened.
Taking this into context… he was asked.. how did your mutual funds do over the last 10 years…duh… How about nothing..how about down..This is an example of patience and discipline in trend following in the commodity markets and forex markets. More so… we did not graduate ***** Laude from Harvard nor any of us work for Goldman Sachs. We are not on Wall Street.Some investors don’t like these facts. Again it is funny when one of the most successful trend followers last year was a taxi driver… now managing $4 billion dollars, or there is the ex policeman from Vienna Christian Baha, let alone the offsprings of the turtle traders.The key to successful investing in the commodity markets and forex markets are plain and simple. Simple ideas that have stood the test of time… with a strong measure of risk and money management… Discipline and Patience. The rest is empty ego…and not the way to compound your way to wealth.
Andrew Abraham
www.myinvestorsplace.com
Sunday, April 19, 2009
How to Beat the 10 Pitfalls of Trading Stocks, Commodities and Futures
By: Nazy_Massoud
InvestorEducation
Best Financial Markets Analysis ArticleWe hear staggering statistics that approximately 95% of traders fail in their ability to consistently profit from the markets.
What are the 10 major mistakes that these traders make that cost them dearly?
1. Having no trading plan
When you don’t have a plan, you don’t have a template to follow. It becomes very costly when your emotions are high and you have to make decisions on the fly.
2. Using strategies that do not match your personality
You hear of a trading strategy that has worked very well and you are anxious to follow it. One important factor to consider is: does it match who you are and your lifestyle
3. Having unrealistic expectations
Most traders assume that it is very easy to make money in trading. They have unrealistic expectations with regard to their initial capital, their risk profile and how much money they can expect to make
4. Taking too much risk
Usually when traders are down, they want to make their money back very quickly. Therefore, they increase their position size without thinking about the risk/rewards
5. Not having rules to follow
Most traders think if they have rules to follow, they are restricting themselves. It is on the contrary. Having rules allows you to be more flexible since you have thought about lots of issues beforehand
6. Not being flexible to market conditions
It is very important to see the markets as they are and not as you want them to be or as you assume them to be
7. Failing to take responsibility for your results
When the results are not in your favor, the tendency is to blame the markets, circumstances, advice of others… When you blame things outside of yourself, you become a victim of circumstance. When you take responsibility, you can react differently to your circumstances and become the success you know you can be
8. Being addicted to volatility
One of the reasons that people get into trading is because they like the excitement of it. If there is no excitement, they create it. This is one of the reasons that traders sabotage themselves
9. Not having a process to keep track of your performance
If you don’t keep track of your results, how do you know what has worked and what has not? How can you tweak your process to get the best results that you can
10. Not dealing with your Emotional Risk
When dealing with money, there are lots of emotions involved. Emotions are part of everyday life. What separates the successful traders from others is how they react to their emotions.
So what can you do to become a more consistent trader and increase your profitability?
1. Think of trading as a business and have a trading plan.
2. Make sure that the strategies you select, match your personality so you can follow them.
3. Have a realistic expectation of what your returns are. Include all the costs associated with your trading business.
4. Have an idea for your risk/reward ratio. Don’t confuse trading with gambling. If you are increasing your position, make sure that your strategy warrants it
5. Have trading rules and follow them. Think about them as contingency plans. Because when your emotions are very high, the tendency is that you make very poor decisions that can cost you your account!
6. Be flexible to the market conditions. When you see the market as it is, you have a much better chance of managing your portfolio and increasing your profits.
7. Take responsibility for your results. Taking responsibility does not mean that you have control of everything that happens. It means that you have a choice of how to react to the things that happen.
8. Find out why you are in the trading business. If it is for the excitement of it, find other hobbies or activities that you can get your excitement from.
9. Keep track of your performance. This is a way of objectively looking at how you are doing, what you did right and what you learned. Be gentle with yourself.
10. One of the most important things that people don’t handle is their Emotional Risk. When emotions run high, the quality of decisions goes down. It is very important to learn how to react to your emotions and thus increase your profits.
“At first, something seems impossible. Then it becomes improbable. But with enough conviction and support, it finally becomes inevitable.” Christopher Reeves
Here is to making trading success your habit™,
By Nazy Massoud
PS. For more Mental Edge tips and reports on how to have more profitable trades, go to www.MentalEdgeTrading.com .
Copyright © 2009 Nazy Massoud
Nazy Massoud, a Wall Street Insider, shows traders, investors and hedge funds how to master the “Mental Edge” necessary to manage their Emotional Risk. These principles help them learn how to consistently make more profits. For more tips and a FREE report about "The 3 Biggest Psychological Triggers That Can Make Or Break A Trader" go to www.MentalEdgeTrading.com .
InvestorEducation
Best Financial Markets Analysis ArticleWe hear staggering statistics that approximately 95% of traders fail in their ability to consistently profit from the markets.
What are the 10 major mistakes that these traders make that cost them dearly?
1. Having no trading plan
When you don’t have a plan, you don’t have a template to follow. It becomes very costly when your emotions are high and you have to make decisions on the fly.
2. Using strategies that do not match your personality
You hear of a trading strategy that has worked very well and you are anxious to follow it. One important factor to consider is: does it match who you are and your lifestyle
3. Having unrealistic expectations
Most traders assume that it is very easy to make money in trading. They have unrealistic expectations with regard to their initial capital, their risk profile and how much money they can expect to make
4. Taking too much risk
Usually when traders are down, they want to make their money back very quickly. Therefore, they increase their position size without thinking about the risk/rewards
5. Not having rules to follow
Most traders think if they have rules to follow, they are restricting themselves. It is on the contrary. Having rules allows you to be more flexible since you have thought about lots of issues beforehand
6. Not being flexible to market conditions
It is very important to see the markets as they are and not as you want them to be or as you assume them to be
7. Failing to take responsibility for your results
When the results are not in your favor, the tendency is to blame the markets, circumstances, advice of others… When you blame things outside of yourself, you become a victim of circumstance. When you take responsibility, you can react differently to your circumstances and become the success you know you can be
8. Being addicted to volatility
One of the reasons that people get into trading is because they like the excitement of it. If there is no excitement, they create it. This is one of the reasons that traders sabotage themselves
9. Not having a process to keep track of your performance
If you don’t keep track of your results, how do you know what has worked and what has not? How can you tweak your process to get the best results that you can
10. Not dealing with your Emotional Risk
When dealing with money, there are lots of emotions involved. Emotions are part of everyday life. What separates the successful traders from others is how they react to their emotions.
So what can you do to become a more consistent trader and increase your profitability?
1. Think of trading as a business and have a trading plan.
2. Make sure that the strategies you select, match your personality so you can follow them.
3. Have a realistic expectation of what your returns are. Include all the costs associated with your trading business.
4. Have an idea for your risk/reward ratio. Don’t confuse trading with gambling. If you are increasing your position, make sure that your strategy warrants it
5. Have trading rules and follow them. Think about them as contingency plans. Because when your emotions are very high, the tendency is that you make very poor decisions that can cost you your account!
6. Be flexible to the market conditions. When you see the market as it is, you have a much better chance of managing your portfolio and increasing your profits.
7. Take responsibility for your results. Taking responsibility does not mean that you have control of everything that happens. It means that you have a choice of how to react to the things that happen.
8. Find out why you are in the trading business. If it is for the excitement of it, find other hobbies or activities that you can get your excitement from.
9. Keep track of your performance. This is a way of objectively looking at how you are doing, what you did right and what you learned. Be gentle with yourself.
10. One of the most important things that people don’t handle is their Emotional Risk. When emotions run high, the quality of decisions goes down. It is very important to learn how to react to your emotions and thus increase your profits.
“At first, something seems impossible. Then it becomes improbable. But with enough conviction and support, it finally becomes inevitable.” Christopher Reeves
Here is to making trading success your habit™,
By Nazy Massoud
PS. For more Mental Edge tips and reports on how to have more profitable trades, go to www.MentalEdgeTrading.com .
Copyright © 2009 Nazy Massoud
Nazy Massoud, a Wall Street Insider, shows traders, investors and hedge funds how to master the “Mental Edge” necessary to manage their Emotional Risk. These principles help them learn how to consistently make more profits. For more tips and a FREE report about "The 3 Biggest Psychological Triggers That Can Make Or Break A Trader" go to www.MentalEdgeTrading.com .
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