Online Stock Trading Tips

A rich man (or a person with enough money) can enter the trading markets in either two ways:

a. As an investor
b. As a gambler

Unluckily if you enter or like to participate in commodity markets/ stock markets, you will not certainly make a lifetime career “as a gambler”.

The primary reason is simple mathematics. If you have $ 1,000,000 net worth assets (personal) and will trade like a gambler, this is how it happens (figures are example only):

Probability of winning: 50% (this can even be considered as the best case scenario, some trades winning percentage can have below 50% realistically)

Probability of Loss = 1 – Probability of winning
Probability of Loss = 1- 50% = 50%

Average win per trade = $100
Average loss per trade = $500 (more…)

Sadly, only rich person knows about effective money management. This is not only true in trading but can be applicable to personal financial management. A lot of families were torn out because of endless battles with money and a lot of lives are lost due to debts. This is why it is always important to pay attention on how you manage your money NO MATTER HOW SMALL. First let tell you that there is some cash flow in every persons lives. A cash flow can be simply described as input/income –> % savings –> output/spend. For a typical day time worker (80 to 95% of all persons), the cash flow can be described as below:

Salary(income) —–> 80% to 95% cost, 20% to 5% savings —> spend

(more…)