Trading can be an exciting alternative to "traditional" work, but in this industry there are a lot of publicity - with a predominance of stories about wealth and happiness associated with trade. Perhaps this is true for the lucky few, but many traders lose money and face difficulties when exiting this business. Knowing when to enter - and when to go - out of business as important as any other trading lesson.
ROBERT GREEN, Certified Public Accountants
Tax planning is extremely important for traders, but the tax savings that you can create, will not do you much good if you can not make a profit on a continuous basis. Reduced loss through tax rebates will not bring you much good - you need to stop yourself losses.
There are a lot of information about when to enter and exit from the deal, but little guidance about when to enter and exit from the trading business. However, some of the axioms, which traders followed in the performance of transactions - quickly sell losses and allowing profits to grow - you can apply to commercial business as a whole.
If you continually lose money - that is, your trading capital decreases with time - perhaps trading business for you does not fit.
I'm not a loser
Success in trade is not necessarily associated with how smart you are, how hard you work, and how much time you devoted to business. People who previously achieved brilliant results in the field of medicine, law and engineering, often lose significant amounts of money in stock trading.
Like any important decision, leaving the retail business should not be taken hastily. If you go too early, you may be depriving themselves of the opportunity to achieve in this business skill. In addition, you (or others) may think that you are a loser. But sooner or later realize that you're losing money, can not be set aside.
Gambling - whether it be a casino, or card, or sports betting, or buying lottery tickets - have fun and an opportunity (sometimes substantial) income, but do this as a permanent career is not realistic. And although trading is certainly not a gamble, there are some common traits that should be noted, and the lessons to be learned.
Many do not have a large capital and beginning traders try their hand at retail and private trading firms, using small amounts of capital. They have an idea of what a career in the business of selling, but they do not have special training and support. They often risk their relatively small, but so important for their savings. Many of these traders, unfortunately, in the end lose their money. Most of them are in this business without far-reaching plans, not having a special capital or training. Continuation of this activity - and the continuous infusion of money in trade - can be painful for the trader and his family. So the question remains: when they should go out of business?
The decision is not easy to take care of yourself - and do not do this. Talk with family and friends, as well as successful traders, who can understand your problems, and other professionals who understand your finances.
Trading can not be called an unhealthy activity, such as smoking or drinking, but it may drag. In the commercial industry uses all the necessary safeguards required by regulators, who warn traders about the risk. However, they are usually printed in small type, and most traders do not pay attention to these warnings.
In fact, quit trading may be more difficult than to quit smoking and gambling, because for many people it is really a viable career.
New Work
Many people are beginning to engage in trade because of the progressive destruction of the U.S. labor market. Millions of jobs in America - and in the category of white, and in the category of blue-collar - are disappearing because of downsizing, restructuring, transition to outsourcing and to homeworkers. Also reduced wages, health programs, pensions and other benefits.
So many people, instead of having to deal with capricious labor market, the switch to open their own business, and for many commercial business - the easiest things you can do. You can be the boss of yourself, and you do not need customers, employees and noticeable overhead. Since the outbreak of the online trading revolution, waiters, taxi drivers and members of other professions where not found high wages, throw their work, to find happiness in trading.
Even highly skilled cast their career for the sake of trading. They started with self-management of their accounts at brokerage houses, accumulating significant savings. Some professionals liked attractiveness and intellectual challenge of active trade, as well as enjoy the taste of success outside its core career.
Doctors have always loved to talk about money for cocktails, and now, when tax shelters are no longer in vogue, their new on-line trading has become a passion. I know many doctors who were engaged in trading business but, unfortunately, most of them suffered great losses. This axiom is the word "need money to lose money" and not "need money to make money."
Similarly, competition is fierce, forcing many lawyers billing by 70-80 hours per week, as well as other difficulties associated with this work, often pushing them to dream of another career. For some, this means for trading. In the end, some believe that they can use their intellectual skills to analyze corporate documents, information about the risks, industry trends and much more. But trade - is much more than just the fundamental information.
Engineers - an exemplary example of self-conduct. They are reclusive by nature (this is good) and can build anything you want. They well know how to handle computers and tools, and online trading business suits them perfectly. Engineers like to create their own trading systems and algorithms, but whether they are good traders?
Corporate managers are closely monitoring their industries, and most also is aware of the general state of the economy. They may not have the right to trade shares of their companies, but why not make transactions in shares of competitors - those companies that they know very well?
Even "ordinary" people think that he has all that is necessary for trade. Perhaps these people were early customers Costco and saw the magic of the process or stocked up on Google long before the IPO. And if we invest, why not try to actively buy and sell for profit? This is a simple enterprise, for which all the necessary modern tools and services.
But ...
Add it all - reduction of the labor market, the ease of entry into online retail business, dreams about how to get rich quickly, the difficulty of perceiving reality and non-obtrusive activities - and you have a recipe for potential disaster.
Before you enter into trade business, you should consult with their spouse (and, if necessary, with other family members) about how much you're willing to lose, and what factors will mean that you should get out of this business.
We have many customers who tell us how they got divorced because of the fact that their spouse is upset because of their trading losses. They told us that they will continue to trade. Rather than abandon this business, they chose to destroy their marriage.
Family counselors often say that finances are a major cause of family problems. Listen, that says your spouse about your trading business. If you are not married or are engaged in trading business with his wife, then ask for advice from their parents, relatives and children. Do not turn away from reality.
Should I take the first step?
Is it wise to give up your career for the sake of complete immersion in the trading business? There are two somewhat conflicting scientific schools responding to this question.
Trade full time increases your chances of success, because the trade - a very difficult job and requires only your time and effort. However, if the trade does not succeed, not whether you should retain their previous profession so that you can return to his former place of work?
Try to find a solution that suits your specific circumstances. You may be able to facilitate entry into the world trade, lowering risk, but increasing the level of education, while maintaining their former jobs. But it is very difficult to sit on two chairs.
If you managed to achieve some initial success, think about how to stop his former work, not throwing it completely, and some time make transactions full-time. Do not give up his old profession and do not burn the bridges that connect you with partners, or employers. There are different ways to maintain his former profession - via the Internet, as a consultant or as something else. Use every opportunity, because maybe then they will save your life.
Many traders in a particular market environment initially luck, but when conditions change, they lose not only its initial gains, but more. The market can change quickly from bearish to bullish, and vice versa, but also such things as increasing the risk profile can also be "upset your cart. It is difficult to market constantly to make money. Complete failure of your previous career is rarely a good solution.
But what if you have nothing left from the past, and you not even to spend their money? You may have retired or left without work or are stewards or participate in another company, which has no hope of bringing good profits?
It's all just more reasons to protect your capital and to exercise common sense at the entrance and exit from the trading business.
Findings
Trade as a business is tempting now only a small percentage of traders. Most lose money. Ask yourself this important question: if the traders on Wall Street make up the lion's share of winners (and the way it is), then who the losers?
If you carefully think things through and discuss these matters with my family, and do not give up completely on their previous work, then you can seriously think about what to dive into online trading. However, if necessary, have sufficient discipline to abandon the trade, before it is too late.
ROBERT GREEN, Certified Public Accountants
Tax planning is extremely important for traders, but the tax savings that you can create, will not do you much good if you can not make a profit on a continuous basis. Reduced loss through tax rebates will not bring you much good - you need to stop yourself losses.
There are a lot of information about when to enter and exit from the deal, but little guidance about when to enter and exit from the trading business. However, some of the axioms, which traders followed in the performance of transactions - quickly sell losses and allowing profits to grow - you can apply to commercial business as a whole.
If you continually lose money - that is, your trading capital decreases with time - perhaps trading business for you does not fit.
I'm not a loser
Success in trade is not necessarily associated with how smart you are, how hard you work, and how much time you devoted to business. People who previously achieved brilliant results in the field of medicine, law and engineering, often lose significant amounts of money in stock trading.
Like any important decision, leaving the retail business should not be taken hastily. If you go too early, you may be depriving themselves of the opportunity to achieve in this business skill. In addition, you (or others) may think that you are a loser. But sooner or later realize that you're losing money, can not be set aside.
Gambling - whether it be a casino, or card, or sports betting, or buying lottery tickets - have fun and an opportunity (sometimes substantial) income, but do this as a permanent career is not realistic. And although trading is certainly not a gamble, there are some common traits that should be noted, and the lessons to be learned.
Many do not have a large capital and beginning traders try their hand at retail and private trading firms, using small amounts of capital. They have an idea of what a career in the business of selling, but they do not have special training and support. They often risk their relatively small, but so important for their savings. Many of these traders, unfortunately, in the end lose their money. Most of them are in this business without far-reaching plans, not having a special capital or training. Continuation of this activity - and the continuous infusion of money in trade - can be painful for the trader and his family. So the question remains: when they should go out of business?
The decision is not easy to take care of yourself - and do not do this. Talk with family and friends, as well as successful traders, who can understand your problems, and other professionals who understand your finances.
Trading can not be called an unhealthy activity, such as smoking or drinking, but it may drag. In the commercial industry uses all the necessary safeguards required by regulators, who warn traders about the risk. However, they are usually printed in small type, and most traders do not pay attention to these warnings.
In fact, quit trading may be more difficult than to quit smoking and gambling, because for many people it is really a viable career.
New Work
Many people are beginning to engage in trade because of the progressive destruction of the U.S. labor market. Millions of jobs in America - and in the category of white, and in the category of blue-collar - are disappearing because of downsizing, restructuring, transition to outsourcing and to homeworkers. Also reduced wages, health programs, pensions and other benefits.
So many people, instead of having to deal with capricious labor market, the switch to open their own business, and for many commercial business - the easiest things you can do. You can be the boss of yourself, and you do not need customers, employees and noticeable overhead. Since the outbreak of the online trading revolution, waiters, taxi drivers and members of other professions where not found high wages, throw their work, to find happiness in trading.
Even highly skilled cast their career for the sake of trading. They started with self-management of their accounts at brokerage houses, accumulating significant savings. Some professionals liked attractiveness and intellectual challenge of active trade, as well as enjoy the taste of success outside its core career.
Doctors have always loved to talk about money for cocktails, and now, when tax shelters are no longer in vogue, their new on-line trading has become a passion. I know many doctors who were engaged in trading business but, unfortunately, most of them suffered great losses. This axiom is the word "need money to lose money" and not "need money to make money."
Similarly, competition is fierce, forcing many lawyers billing by 70-80 hours per week, as well as other difficulties associated with this work, often pushing them to dream of another career. For some, this means for trading. In the end, some believe that they can use their intellectual skills to analyze corporate documents, information about the risks, industry trends and much more. But trade - is much more than just the fundamental information.
Engineers - an exemplary example of self-conduct. They are reclusive by nature (this is good) and can build anything you want. They well know how to handle computers and tools, and online trading business suits them perfectly. Engineers like to create their own trading systems and algorithms, but whether they are good traders?
Corporate managers are closely monitoring their industries, and most also is aware of the general state of the economy. They may not have the right to trade shares of their companies, but why not make transactions in shares of competitors - those companies that they know very well?
Even "ordinary" people think that he has all that is necessary for trade. Perhaps these people were early customers Costco and saw the magic of the process or stocked up on Google long before the IPO. And if we invest, why not try to actively buy and sell for profit? This is a simple enterprise, for which all the necessary modern tools and services.
But ...
Add it all - reduction of the labor market, the ease of entry into online retail business, dreams about how to get rich quickly, the difficulty of perceiving reality and non-obtrusive activities - and you have a recipe for potential disaster.
Before you enter into trade business, you should consult with their spouse (and, if necessary, with other family members) about how much you're willing to lose, and what factors will mean that you should get out of this business.
We have many customers who tell us how they got divorced because of the fact that their spouse is upset because of their trading losses. They told us that they will continue to trade. Rather than abandon this business, they chose to destroy their marriage.
Family counselors often say that finances are a major cause of family problems. Listen, that says your spouse about your trading business. If you are not married or are engaged in trading business with his wife, then ask for advice from their parents, relatives and children. Do not turn away from reality.
Should I take the first step?
Is it wise to give up your career for the sake of complete immersion in the trading business? There are two somewhat conflicting scientific schools responding to this question.
Trade full time increases your chances of success, because the trade - a very difficult job and requires only your time and effort. However, if the trade does not succeed, not whether you should retain their previous profession so that you can return to his former place of work?
Try to find a solution that suits your specific circumstances. You may be able to facilitate entry into the world trade, lowering risk, but increasing the level of education, while maintaining their former jobs. But it is very difficult to sit on two chairs.
If you managed to achieve some initial success, think about how to stop his former work, not throwing it completely, and some time make transactions full-time. Do not give up his old profession and do not burn the bridges that connect you with partners, or employers. There are different ways to maintain his former profession - via the Internet, as a consultant or as something else. Use every opportunity, because maybe then they will save your life.
Many traders in a particular market environment initially luck, but when conditions change, they lose not only its initial gains, but more. The market can change quickly from bearish to bullish, and vice versa, but also such things as increasing the risk profile can also be "upset your cart. It is difficult to market constantly to make money. Complete failure of your previous career is rarely a good solution.
But what if you have nothing left from the past, and you not even to spend their money? You may have retired or left without work or are stewards or participate in another company, which has no hope of bringing good profits?
It's all just more reasons to protect your capital and to exercise common sense at the entrance and exit from the trading business.
Findings
Trade as a business is tempting now only a small percentage of traders. Most lose money. Ask yourself this important question: if the traders on Wall Street make up the lion's share of winners (and the way it is), then who the losers?
If you carefully think things through and discuss these matters with my family, and do not give up completely on their previous work, then you can seriously think about what to dive into online trading. However, if necessary, have sufficient discipline to abandon the trade, before it is too late.
No comments:
Post a Comment