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REVELATION TO THE WORLD OF FINANCIAL FREEDOM
Education for online trading is the best way a trader can start to get involved in any market. With the evolution of software and technology, it is now much easier for individuals to seek guidance before investing, and it usually leads to two types of programs: Automated systems, and rule-based trading applications like ThinSlice Trading.
Trading systems are technology based programs centered on software to assist the investor in identifying opportunities for trading. The common misconception that most new traders have is thinking that technology is going to be the answer for their online trading.
They expect to pay a few thousand dollars for the latest software, install it on their computer, and wait for the application to analyze the market and identify entry points and potential trades. Those individuals are typically looking for a quick way to make a profit, and it is easy to follow the many infomercials on television and the advertising on the internet that promises the latest trading software will consistently identify profitable trades.
These traders soon realize that technology is not the correct answer for trading, and that there is a specific path to correctly trade in an online exchange. Technology does have its place in trading, but it only work in precise, unique market conditions; it evaluates months or years of market data on a regular basis, looking for a price anomaly or infrequent price activity that is typically reflected in trending markets.
The concern is that trending occurs only 20% of the time (which was a key aspect on the development of ThinSlice Trading) but new traders believe that the software will consistently find trending patterns. Software applications perform best in larger time frames such as, one hour, four hour, or daily charts, and these time frames require more investment.
The larger the time frame, the larger the capital requirement, the larger the risk, the larger the profit potential, and the less frequent the opportunities to trade are. When technology finds a good trading opportunity, the position is usually held for weeks or months; even though the trade might actually work out, during the trade there is usually a retracement showing the trader’s account with a negative balance for a few days, which most traders cannot handle and subsequently close the trade; the market then regains its momentum, and the initial trade works out.
Most of the traders cannot effectively trade technology given that they are usually looking for a short term profit.
Rule-based trading applications can be utilized in all time frames and all market conditions. ThinSlice Trading, developed by Steve Rising and The Forex Trading Institute, is a proven rule-based trading application, which consists of a set of rules that are easy to apply and can consistently generate profitable trades in trending or sideways markets.
The shorter the time frame, the smaller the risk, the smaller the capital requirement, the smaller the profit potential, and the more frequent the opportunities to trade are. ThinSlice Trading is specially designed to find the best trading opportunities in these shorter time frames.
For a new trader looking to generate residual income, the program offered by The Forex Trading Institute can generate the most consistent profits. It requires more attention from the trader since there is no software identifying any entry points, but it yields a much more reliable approach to online trading.
Obtain this training in one of the best online forex trading/education company.
| High Yield Investment programs usually involve in a variety of high risk and volatile field of investment such as Forex trading, Stock exchange, Sports betting, metal trading etc. There are also HYIPs that do not invest at all, scammers. From these facts, you can easily realize that there is always a risk associated with investment in HYIPs. If you are not able to control these risks, you will lose your hard earned money badly. For that reason, you should be able to implement a mechanism to manage and minimize these risks to the smallest possible. The most effective way of minimizing these risks is Diversification. What is Diversification as applied to HYIPs? Diversification is a technique that reduces the risk by spreading your portfolio over many programs to avoid excessive risk imposed by HYIPs. In simple English this means “ do not put all your eggs in one basket”. There are certain issues you should consider on how to diversify you portofolio over different programs. Let’s see these issues one by one: Determining how many Programs You should have Obviously diversifying over 10 programs is better than investing into 2 programs. It is even better to have 20 programs instead of 10. But, it is hard to find 20 solid programs. There fore , The bottom line for diversification , as far as HYIPs is concerned is that , you have to diversify you portfolio over researched programs as maximum as possible. But, I want to clarify one thing; Diversification does not mean spreading your portfolio over scam programs. Always make a diligent research before you diversify you portfolio. To put it briefly, diversify your portfolio to at least 5 to 10 well researched programs. Mixing between Old and New Programs You may have favorite programs performing well for long time, programs which you have more confidence, well researched and what you think are reliable. But there is a concern in HYIPs arena; there is always a calculated risk even with the most solid program. It is hard or impossible to exactly determine the age of a particular HYIP. For this reason, it is always recommended to mix your favorite HYIPs with new programs. How much to Invest between each programs It is obvious that you should spread your portfolio over different programs proportional to the programs credibility. But, you should be careful not to over invest in a particular program. Let’s see what does this mean, say you have 8 programs and your portofolio is $1,000. It is not advisable to put $450 in a single program while investing $50 each between the rest 7 programs. You should make a balanced investment. Balanced in a sense, spread your portfolio proportional to the credibility of the programs. Let’s how you can do this with your favorite 8 programs and $1,000. To Star with, First group and grade your favorite programs based on their performance and credibility. Say you have grouped your programs as follows: • Class “A” (Top performers) programs – 3 Programs • Class “B” (Good Choice) programs – 2 Programs • Class “C” programs (Programs with less credibility than class “B”) – 3 Programs And your grading for each class is: • Class “A” is 1.5 • Class “B” is 1.25 • Class “C” is 1 (3 x 1.5) + (2 x 1.25) + (3 x 1) = 10 Now, let’s see how to distribute your portofolio over each class; > For Class “A” programs: (1.5/10) x $1,000 = $150 > For Class “B” programs: (1.25/10) x $1,000 = $ 125 > For Class “C” Programs: (1/10) x $ 1,000= $ 100 Which means, invest $ 150 for each class “A” programs, $125 for Class “B” and $100 for Class “C” Programs. Note that each number given is only for demonstration purposes; actual numbers are determined based on the number of your favorite programs and you grading. You should also understand that the amount of investment for each program depends on other issues, such as the minimum investment of each program. Some programs have minimum investment of $10, $50, $100, $200; even there are programs with minimum investment of $1,000. I would like to point out that you should always follow-up each of your favorite programs, make evaluations and adjust them accordingly. In conclusion, there is no ideal diversification formula that is right for every investor- it depends on each program, your financial situation and tolerance of risk. But, if you diversify you portofolio over different programs, you money will always be safe even under the worst case. |