Traders Toolbox: Money Management Part 1 of 4 Revisited…
At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals — no matter which way the markets move — with objective and unbiased recommendations not available from brokers.
The Trader’s Toolbox posts are just another free resource from MarketClub.
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“Crucial but often overlooked, money management practices can mean the difference between winning and losing in the markets.
Plenty of books, manuals, and software packages will help you form and opinion of a market, but not many will tell you how to trade once you have decided to get long or short. The goal of money management is to increase the odds of high quality trades. And as we’ll see, leaving the money management variable out of your trading equation can lead to ruin, even if you’re correct about the market direction.
In a broad sense, money management can encompass those elements of trading outside the initial decision to get long or short in a given market or markets – that is, how many positions to put on, when to get out, where to place protective stops. More specifically, it refers to the strategic allocation of capital to limit risk and optimize trading performance in the long run. Allocation of capital can refer to how much money to put into any one market or how much money to risk on any one trade. These decision directly affect how many positions to put on and where to place stop orders….”
Revisit the Trader’s Toolbox Post: “Money Management Part 1 of 4″ here.
Poll: GM – Good Move or Goodbye Money?
The General Motors IPO will go down as one of the biggest in history after opening at $33/share, but will GM be the strong stock it once was or is it destined to fail once again? Either way, which side will you be on?
Loading ...We’re curious to know what you think of this stock or GM’s entire situation over that last few years. Did the government reward GM for failing? Let us know in our comments section.
Is The New China The Real McCoy? (Part II)
Last week I wrote about Hong Kong and its ability to pretty much stay a capitalist economy. In fact, in mainland China they refer to their countries economic policies as, “one country, two systems.” Today we’re going to talk about the other system that I call “The New China.”
<<<<< This is the new MarketClub Chop in Mandarin Chinese
Besides seeing the historic sites with my wife, we traveled quite extensively covering over 3,500 miles in the new China. I not only want to share with you my travel thoughts on some of these amazing historic sites, but also my thoughts on the Chinese economy. I am also going to let you in on an easy way to figure out what’s going on in China at any time.
So let’s get started…
Try it … You’ll like it.
Dear Trad
er’s Blog reader,
I hope you enjoyed my recent blog on China and had the opportunity to vote in the poll. If not, the poll is still open and your opinion still counts. You can visit this link to read this post and vote:
I noticed that a lot of folks who are posting questions on our blog are not yet members of MarketClub. Since many of the Trader’s Blog posts revolve around our premium service, I feel as if you’re missing out on the full benefit of the information that is posted.
To solve this problem, I would like to invite you to take a risk-free 30 day trial to our service.
Is It All Over For Gold?
A week ago everyone was cheering as gold and other commodity markets were making new highs. Last week however, things changed as everyone seemed to want to jump through the same door, at the same time, putting a great deal of downside pressure on many markets.
This phenomenon sometimes happens when people have multiple positions in multiple markets in the same direction. When they start to take profits, there is no one left to buy.
Five Lessons China Can Teach The US Economy (NEW POLL)
I just got back from a two week visit to China, to witness for myself what all the buzz is about.
In today’s post I want to share with you the five lessons we could learn from China that would lead America back to being the envy of the world and a powerhouse economy. And guess what? It doesn’t include any bailouts, cheap imports, or a falling dollar.
But first, a brief history of China, specifically Hong Kong, for those who aren’t familiar.
In 1898 the British government signed an agreement with China to lease Hong Kong for 99 years. That lease expired in 1997, some 13 years ago. At the time many Hong Kong residents, especially the wealthy Chinese, were concerned that it would immediately fall into a communist type regime which frowned on individual success and capital. [Read more...]
Gold Alert!
Short-term traders exit long position on a RED Daily “Trade Triangle” @ $1,382.62 today and remain neutral for now. This short-term trade produced a profit of just over $17 dollars an ounce.
Intermediate and long-term traders hold long positions.
If you are not yet a member of MarketClub see what you are missing with our 30 Day Risk Free trial and receive 3 valuable bonuses just for giving us a try.
High Frequency Trading: What’s The Real Story? An Answer to 60 Minutes
Today’s guest post comes from our friends at Lightspeed Trading. In this article, Lightspeed’s CEO, Steve Ehrlich, will share his thoughts and some analysis on high frequency trading inspired by a 60 Minutes episode. Please visit their site to learn more about Lightspeed and Steve Ehrlich.
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By Steve Ehrlich
Lightspeed Financial, CEO
October 27th, 2010 – Where does the blame for the financial meltdown lie? The public is looking for a scapegoat for the financial slowdown and regulators have found one for them… High Frequency Traders. This blame game is very similar to what occurred during the Great Depression of 1929 when short sellers in the stock market were singled out and vilified as the “cause” of the economic woes in the United States. Today, it’s hedge funds, dark pools, and high frequency traders that are being targeted as the prime cause of the financial trouble in the United States and around the world. [Read more...]
Another nice profit in this ETF
We have been trading the ETF FXE for some time now in MarketClub’s Perfect “R” Portfolio and today we exited our long position at $136.64, which produced a profit of $8.14 a share.
This market has performed very well for us and we have only had two major trend changes for the year so far. The FXE is an ETF that mimics the Euro versus the US Dollar, so there’s always plenty movement which equals opportunity in the market. That is one of the principal reasons why we chose to include this ETF in the Perfect “R” Portfolio. [Read more...]
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