A Secret Revealed: Why Most (Day) Traders Fail
The following perspective on (day) trading comes from my many years of experience of active day trading or being the moderator of one of the largest day trading chat rooms on the Internet.
One of the biggest problems I see with new traders (and even some old ones) has nothing to do with the software or the broker they are using. Nor is the problem a result of buying too high or selling to low; or not having enough money. The problem isn''t any of those things.
It has to do with not having a trading plan. A good trading plan will go a long way towards solving the problems mentioned above.
Ted Williams was once asked how he hit the baseball so much better then everyone else. He said he had no idea and that he just went up to the plate and swung at the ball. There has only been one Ted Williams and as great as he was at hitting a baseball, I don''t think he would have made a great day trader with that approach. Most great hitters have an idea what they are going to do every time they step up to the plate. Traders need to know exactly what they expect every time they enter a trade.
Everyone should start out with a basic trading plan and use it. As the old saying goes, "Plan your work and work your plan". However, you also have to be ready to be flexible. That has to be part of your planning. As Clint Eastwood said as his character in "Heartbreak Ridge", "You got to adjust, you got to learn to improvise. And if all else fails, you to learn to survive!" Traders that are not able to make adjustments, improvise and survive will experience their own Heartbreak Ridge.
Your trading plan can''t be one where you simply figure you are just going to follow someone else. That may be one way to get a start and a bit of experience, and it can be a part of a much bigger overall plan. But it cannot start and end there. You have to learn to trade on your own so you don''t accidentally follow someone off a cliff. You have to know who to follow and who not to follow.
When I was trading I made a lot of good trades knowing who to follow and who not to follow. Yet, in the long run, I do not believe you can make a living doing that. The biggest problem in following other traders is being too far behind the trade because you are "following" and not leading. I think each and every trader has to become the very best trader he can possibly be, on his own. He needs to get there as fast as he can. Following more experienced traders can be a means to this end and can help get you started, but it cannot be the end. This takes planning.
A basic trading plan will take in your long-term goals and objectives as a trader. You''ll have to decide if you want to try to make a career out of trading, or just be a part time trader. Once you have decided this you can make other decisions such as how much money you would like to make at either full time or part time trading. Your money goals have to be realistic. They can''t just be, "I want to make as much money as I can". These basic decisions will determine the time and money you will have to commit.
Your trading plan should be on going, constantly evolving and eventually contain things like how many days, weeks, and hours you will need to trade to meet your goals. If it is as detailed as I think it should be, you would know how many trades per day and how much profit per trade you will have to average. Of course, these things will have to be developed over time and added to your plan as you go and as you gain more knowledge.
There are many excellent books on learning to day trade. My favorites are found at http://www.TraderAide.com/books
No permission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and included. We do request that we be informed of where it is posted and reciprocal links will be considered. Email floyd@sbmag.org.
Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept nation back in late 1990''s both as a trader and later as the moderator of one of the Internet''s largest real time trading rooms.
Floyd is also the owner of http://www.TraderAide.com, Strictly Business Magazine at http://www.sbmag.org, FrameHouseGallery.com and EducationResourcesNetwork.com', 169, 'A Secret Revealed: Why Most (Day) Traders Fail, Investing, Investing articles, Investing information, about Investing, what is Investing, Investing Information', 'A Secret Revealed: Why Most (Day) Traders Fail plus articles and information on Investing
What is SSL (the little padlock)?
SSL ("Secured Socket Layer") is a protocol used to encrypt the communication between the user''s browser and the web server. When SSL is active, a "little padlock" appears on the user''s browser, usually in the status line at the bottom (at the top for Mac/Safari users.)
This assures the user that sensitive data (such as credit card numbers) can''t be viewed by anyone "sniffing" the network connection (which is an increasing risk as more people use wireless networking).
Common web site owner questions about SSL:
How do I get the little padlock on my site?
To get the little padlock, your site must have an SSL Certificate from a Certificate Authority. Once an SSL Certificate has been purchased and installed, it provides three things:
Once obtained, the certificate must be installed on the web server by your web host. Since your web host also has to generate an initial cypher key to obtain the certificate, very often they will offer to handle the process of obtaining the certificate for you.
My web host has a "shared certificate" that I can use. Should I?
It''s still fairly common for small sites to use a shared certificate from the host. In this circumstance, when a page needs to be shown in secured mode, the user is actually sent to a domain owned by the web host, and then back to the originating domain afterwards.
A few years ago, when SSL Certificates were quite expensive (around $400 per year), this was real attractive for new sites just getting their feet wet in e-commerce. Today, with a number of perfectly functional SSL certificates available for under $100 (exclusive of installation, etc.), it is a lot less attractive. Since your user can look a the address line of his or her web browser and see that the site asking for the credit card number is not the site he or she thought they were on, the cost savings is probably not worth the risk of scaring off a sale.
What''s the difference between the expensive SSL Certificates and the inexpensive ones?
Usually, mostly price. Some expensive certificates have specific functions, like securing a number of different subdomains simultaneously (a "wildcard" certificate), but the effective differences between basic single site certificates are very slight, despite the wide range of prices:
The encryption mechanism used by all of them is the same, and most use the same key length (which is an indicator of the strength of the encryption) common to most browsers (128 bit).
Some of them ("chained root" certificates) are slightly more of a pain for your web host to install than others ("single root" certificates), but this is pretty much invisible to the site owner.
The amount of actual checking on the ownership of the domain varies wildly between vendors, with some (usually the more expensive) wanting significant documentation (like a D&B number), and others handling it with an automated phone call ("press #123 if you''ve just ordered a certificate").
Some of them offer massive monetary guarantees as to their security (we''ll pay you oodles of dollars if someone cracks this code), but since it''s all the same encryption mechanism, if someone comes up with a crack, all e-commerce sites will be scrambling, and the odds of that vendor actually having enough cash to pay all of its customers their oodle is probably slim.
The fact is that you are buying the certificate to insure the safety of the user''s data, and to make the user confident that his or her data is secure. For the vast majority of users, simply having the little padlock show up is all they are looking for. There are exceptions (I have a client in the bank software business, and they feel that their customers (bank officers) are looking for a specific premier name on the SSL certificate, so are happy to continue using the expensive one), but most e-commerce customers do not pick their sellers based on who issued their SSL Certificates.
My advice is to buy the cheaper one.
I have an SSL certificate -- why shouldn''t I serve all my pages in "Secured" mode?
Because SSL has an overhead -- more data is sent with a page that is encrypted than a page that isn''t. This translates to your site appearing to run slower, particularly for users who are on dial-up or other slow connections. Since this also increases the total amount of data transfered by your site, if your web host charges by transfer volume (or has an overage fee, as most do), this can increase the size of your monthly hosting bill.
The server should go into secure mode when asking a user for financial or other sensitive data (which may well be "name, address and phone number", with today''s risk of identity theft), and operate in normal mode otherwise.
Updates to this article, and many other great articles and tutorials for small business web site owners can be found at Insanely Great Sites!', 140, 'What is SSL (the little padlock)?, Ecommerce, Ecommerce articles, Ecommerce information, about Ecommerce, what is Ecommerce, E-commerce Information', 'What is SSL (the little padlock)? plus articles and information on Ecommerce
Creating A Work Home Business Internet Online
Within this article today, we're going to look at creating a work at home business that focuses on the Internet and online. There are many different businesses that you can focus on and we will look at what you should look for within a particular business that you want to do.
There are great many opportunities for you in creating a work at home business that focus on the Internet and online. One of the best resources for you to find information about this is at www.affiliateprograms.com. You'll want to spend a great deal of time visiting this website because you can find many different affiliate programs that you can market in many different categories. Some of the categories that they have that you can market include finance and investment, food and beverage, automotive, and health and fitness. Take the time to read because each affiliate program will list their website as well as a small description on what they do and you will want to visit the website as well. If you are going to be spending a great deal of your time promoting a particular website and program, you'll want to make sure that this is worth your while. Also, with each of these particular programs, you should look at how much money you would be making by selling each of these. You'll probably find several programs that seem interesting to you so see which one peaks your interest and pays well and head for that opportunity.
As far as fair warning for what seems to be opportunities on the Web for other things, there are many different websites that promise that you can make money through either taking surveys or through posting on free forums for several hours day. This sounded good and many people have signed up and found that they have wasted a great deal of time and money in the end when trying out these so-called "opportunities. Remember to listen to your gut when you're thinking about this. There are many work-at-home scams out there so make sure to take your time in reading about what the different websites have to offer.
Another great work home business that has an online focus can be eBay. This is stressed throughout some articles on this website but it is a great tool for you to begin your career. You can learn how to write sales copy for your auctions as well as how to properly promote yourself. If you take the lessons to be learned on eBay and apply them to other Internet marketing areas, you will find yourself ready to tackle almost anything out there.
Hopefully this article on creating a work at home business that focuses on the Internet and online has been beneficial to you. When we designed this article and wrote it, we want you to know what to look for within a particular business as well as what to do for it. It is important to know what to look for as well as what to avoid.
Tags : ebay, small bussiness, bussiness cards, bussiness online, starting bussiness, new bussiness, home bussiness
Benefits of Buying on eBay
Are you one of the millions of Americans who prefers to shop online? Shopping online is popular because it is quick, easy, and convenient. It is also popular because, when shopping online, you have a number of different options, as there are a number of different retailers that you can choose to shop online with. One of those is eBay. If you aren’t already shopping on eBay, you may want to look into it, as there are a number of benefits to doing so.
Perhaps, the greatest benefit of shopping on eBay is all of the products that you have to choose from. eBay isn’t like a traditional retailer. They are actually an online auction website. eBay has other internet users sell products that they have to consumers, just like you. With this type of set up, eBay has an unlimited number of products to choose from. For instance, you can buy real estate, cars, clothing, toys, pet supplies, home d้cor, entertainment items, and much more on eBay. Basically, anything you are looking for, within reason of course, you should be able to find on eBay.
Another one of the many benefits to shopping on eBay is that you have a number of sellers to do business with. As it was previously mentioned, eBay allows all internet users to sell items that they no longer need or want to own. Over the past few years, the popularity of eBay has reached an all time high. This is what has lead to an unlimited number of eBay sellers. Since many sellers are selling the same products or similar products, you should have the option to choose who you want to do business with. When buying a product online, particularly one that is offered for sale by a number of different sellers, you are advised to examine product costs, shipping and handling costs, as well as each seller’s feedback. Doing so will make shopping on eBay a positive experience for you.
It is also important to note that eBay is easy to use. In fact, ease of use is one of the many other reasons why eBay has become so popular in recent years. As an eBay buyer, you need to create a free eBay account. That account will allow you to buy on eBay. Once you are a registered eBay member, you can easily start searching for products that you are looking for. For instance, if you are looking for a particular music CD, you can just type the artist name and album name into eBay’s search box and you should be presented with a number of auctions which have your CD available for sale. If you are only looking to spend a certain amount of money or purchase a CD that is located in the United States, you can perform an advanced search. An advanced search makes it easier to find what you need.
The above mentioned benefits, to doing your online shopping through eBay, are just a few of the many that exist. In fact, even if you are unsure as to whether or not you want to start shopping on eBay, you are advised to at least examine it. eBay guests can navigate the site to get a taste of what items can commonly be found for sale on eBay. With a large selection of products, a number of sellers to choose from, and ease of use, there is a good chance that you may find yourself doing the bulk of your online shopping on eBay. And, if you end up doing so, you will definitely not be alone.
Tags : ebay, small bussiness, bussiness cards, bussiness online, starting bussiness, new bussiness, home bussinessYou Bored Me at Hello - Top Three Strategies for Networking Your Brand
You had me at hello," those famous words from the movie Jerry McGuire let Tom Cruise know that Rene Zellweger''s character was hooked from that point and the rest of his talking was unnecessary. When in networking situations, many small business owners leave people with a slightly different feeling. If questioned for the truth, what would likely be said is, "you bored me at hello!" That is definitely not a great way to grow your business into a powerful name brand. Networking works, but not if you leave your prospects bored.
Networking opportunities are everywhere. You can find them at Chamber of Commerce and Better Business Bureau events, not to mention when you are in line at the grocery store. There are even groups of people who regularly meet solely for the purpose of networking. Unfortunately, all of the networking opportunities in the world will not help grow your business unless people remember you and your company after you are gone.
Here are three strategies to avoid boring people during your next networking opportunity:
1) Gone in Thirty-Seconds - Attention spans are getting shorter and shorter. Any longer than thirty seconds for your "elevator speech" and you will be tuned out. People cannot sit through a thirty-second commercial without changing the channel on the television. Your business will be treated the same way. They will start thinking about what they need to pick up on the way home or other random thoughts. Many times, they are simply waiting for you to stop talking so they can try to sell you on their business. Your brand message must be short, simple and to the point. If you ramble too much, the person will start feeling like Charlie Brown in school - "wahwah, wah wah wah," "yes ma''am."
2) Red or Black - Pick a color. Roulette gives you the option of betting on red or black. If you bet red, you win when it hits on any red number. Winning is good. If it hits on any black number, you lose. Losing is not so good. However, when you "hedge" and bet on red and black together you are guaranteed to not win. In a networking situation, limit what you talk about. Sure, you are risking leaving out something the prospect would like to hear. However, unless you get lucky and mention it first, the odds are that you will lose their attention by then anyway. Limit the scope of your brand, or say everything and be remembered for nothing.
3) Listen - That''s right, you are remembered more when you listen. Most of us go through our day fighting to be heard. It feels really good to be acknowledged and understood. So good that we automatically think highly of the person listening to us. Listening demonstrates that you value the person talking. Sincerely listen to what the other person has to say and they will leave with high regard for you and your business.
There ya have it, networking success as simple as 1, 2, 3! Follow all three strategies and you are sure to notice a sharp improvement in your networking. Before you know it, you will leave your future clients saying "you sold me at hello!" Now, those types of responses build a powerful brand!
Kevin Kearns is a small business branding coach. He holds a Master of Science degree in Organization Development and is a member of the Coachville Graduate School of Coaching. With a mixture of hands-on experience, research, and FUN, Kevin helps small businesses become the only choice. Visit http://www.kevinkearns.com to join The Branding Bunch - a community made up of small business owners that want to grow their business the easy way.', 114, 'You Bored Me at Hello - Top Three Strategies for Networking Your Brand, Branding, Branding articles, Branding information, about Branding, what is Branding, Branding Information', 'You Bored Me at Hello - Top Three Strategies for Networking Your Brand plus articles and information on Branding
Build Customer Loyalty by Promoting Your Customers
Do you want to attract new customers while building greater loyalty among your current customers? Include your customers in your marketing and promotions. By creating greater awareness of your customers (and their businesses) you may help to build their businesses and increase their demand for your products and services. Whether or not using customers in your marketing causes them to buy more from you, your willingness to showcase them will cause them to feel more attachment to you and will encourage them to remain customers for a long time to come. Here are a few ways you can make this work for you.
Ask your customers to share their success stories and get their permission to use them. How have they benefitted from their association with you? Have them share their stories on audio or video or in print and use them in your marketing. In their ads, Sterling Bank in Houston has their small business customers tell how they grew their businesses with the help of their Sterling bankers. It sends a great message about the bank, and increases awareness of the featured businesses.
Tell your customers'' stories in your newsletter. If you publish a print or online newsletter, include profiles of your customers and tell how you worked with them to help them succeed. Or, use the stories in your print ads. A photo of a happy customer accompanied by the story of what you did for them is very persuasive.
Audio and video recordings of customer stories can be incorporated into your television and radio advertising. Hearing customers in their own words is a powerful way to communicate the benefits of doing business with you, and your customers will appreciate the visibility they get when they are featured in your ads. You can also use streaming audio and video files at your web site.
Feature links to your customers'' web sites from yours. It doesn''t cost anything to add a few links, and customers will appreciate the extra visibility. It may also help improve the search engine rankings, not only for your customers'' web sites, but for yours as well.
Make connections between customers. Do you have customers who could benefit from knowing other customers? Perhaps you could make referrals to bring them together. Or, host a networking event where they can get to know each other.
Include customers in your publicity. The media like to have multiple sources for stories, perhaps to back up what you are saying or to provide another point of view. In one case, I was able to get a client included in a story and she was able to get one of her clients into the story, too! Your clients will not only appreciate that you got them publicity, they will be impressed with your media "pull."
Promoting your customers as well as yourself is a great win-win for your business. Look for opportunities to create a greater bond between yourself and your customers by including them in your marketing and promotions.
Copyright Cathy Stucker. As the Idea Lady, Cathy Stucker can help you attract customers and make yourself famous with inexpensive and free marketing ideas. Get free marketing tips, articles and more at http://www.IdeaLady.com/.', 114, 'Build Customer Loyalty by Promoting Your Customers, Branding, Branding articles, Branding information, about Branding, what is Branding, Branding Information', 'Build Customer Loyalty by Promoting Your Customers plus articles and information on Branding
Setting the Right Price
One of the ways people get to know you is by the identity you project. Your company name, the way you present yourself, your business card and brochure, where you work, and other ways you conduct your business create an image that gives your customers information about you.
Pricing is a part of your image, too. Many entrepreneurs make the mistake of underpricing. They believe that the only way to attract customers is to have the lowest possible price. But this attitude can damage your business.
First of all, when you underprice you won''t be adequately compensated for your time. You must be able to make enough money to pay your bills and grow your business, or you won''t be in business very long.
Ironically, underpricing can actually result in getting fewer customers, not more. Think about this from the customer''s perspective. Let''s say you are looking for someone to do a job for you. You contact five companies, and get prices of $4000, $2700, $2500, $2400, and $1000. Which one would you select?
Assuming that the quotes are all based on the same specifications, most people would immediately eliminate the $4000 quote as being way out of line; however, they would also be suspicious of the $1000 quote. Why is it so much less than the others? Do they use substandard materials? Are their workers less skilled? Will they do a poor job--if they do the job at all?
Price isn''t the only factor people consider when making a purchase. You might choose the $2700 quote because you decide the price is reasonable, and someone from the company called you back quickly. You get a good feeling from their responsiveness, and decide they may be worth a few dollars more than the lowest bidder.
Some markets are more price sensitive than others, and there is probably a price point you can''t exceed for your product or service. But coming in far below the "going rate" can be just as harmful to your business as overpricing.
Copyright Cathy Stucker. As the Idea Lady, Cathy Stucker can help you attract customers and make yourself famous with inexpensive and free marketing ideas. Get free tips, articles and more at http://www.IdeaLady.com/.', 114, 'Setting the Right Price, Branding, Branding articles, Branding information, about Branding, what is Branding, Branding Information', 'Setting the Right Price plus articles and information on Branding