Tag Archives: losses

General Business

Stop Losses

Every trader should have a risk management plan in place before they start trading. A stop loss is a simple risk management tool that every trader should know and be able to use. There are several ways to implement stop losses into your daily trading. Depending on your goals and trading plan, not all stop loss methods might be the right one. Here we look at several stop loss methods so you can figure out which one is right for you.

A stop loss is a handy risk management tool that many traders use in their day to day trading. A stop loss helps to limit risk because it helps the trader see a limit that they have set for themselves. It is generally a number that a trader sets that tells them when they should exit a market. There are a few different ways to set this number.

The easiest way to use a stop loss is to use a fixed dollar amount. For example, a trader trading the E-mini S&P 500 might set a loss of $200 for his trading strategy. If one point on the S&P 500 was equal to $50, then this trader would know to exit the market after four losses. Four losses would mean a $200 loss on the overall account, and when the stop loss was reached the trader would know to stop trading and evaluate.

Another way to set a stop loss is to set a percentage of price as your loss. This is very popular with stock traders. Here is how it works: A stock trader might set a 10% stop loss on a given stock. Let’s say this particular trader buys a stock at $100. Because they are using a 10% stop loss, their stop is set at $90. Now they will look to participate in a move. If they are wrong, they know that they are going to get out with a 10% loss.

Other traders prefer to set technical stops. This kind of stop can be based on support or resistance patterns in the market. Imagine you are looking for a market to move up and you see there is a support level. Using a technical stop would mean that you would place your stop just below that support level. This kind of stop would allow you to participate in the trade and move to the upside. On the other hand, if you were expecting the market to drop, you would place your stop just above the resistance level.

The final method of setting stop losses was invented by Markus Heitkoetter, CEO of Rockwell Trading. In this method, traders place stops based on percentage of volatility. This method is very popular with traders who look at the average daily range of a market. A trader using this kind of stop will look at the average daily range, take the seven day average between the high and low, the session high band low, and use these numbers to determine the stop loss.

Stop losses are one of the best risk management tools a trader can incorporate into their trading. Not all stop loss methods might be right for every trader, but every trader should find a stop loss method that works for them.

Market Analysis

Can Marketing Research Save a Business from Losses

Not every business thinks positive impact of doing marketing research till they suffer losses. Yes, this is quite true in the sense when we read many businesses going in losses, shutting their offices or decreasing manpower. And the main reason that has been seen is either due to lack of planning which obviously requires market analysis and other factors can be low market demand. Though low market demand can’t be seen as a major reason of business loss. If the demand is low companies do take of their expenses of decreasing man power and other overhead expenses.

Only reason that compels a business to shut down is not doing the best possible marketing research analysis that helps in determining the market trend for another 5-7 years. This can be done in many ways, either by recruiting a marketing research analyst in your company or by hiring a company who does market surveys and research on regular basis. Recruiting an analyst though is not a smart decision when you don’t his/her services quite often. The best way to get this done is hiring a company which has been working for some time in this sector and have a qualified team to deliver what you need.

When a market research report is prepared it must contain a market analysis report as well that predicts the market trend for another 5 years at least. This not only helps in planning your finances but helps you in deciding on the viability of the business. Not many companies agree to this but the logic applies is simple. Here is a simple example, when you or your wife runs a household it runs smoothly when planned for each month and some months ahead. If you have a family income of $10000 per month it’s quite obvious you plan what to spend on food articles, weekend holidays or festive spending. Then only you come to know what you save for future.

The same way this needs to be applied to any business we run. Marketing research helps us in understanding how that business will run, how it has been, what competitors do and what’s new in the market. The important part of any market research report is market analysis trend. This is what not all businesses think of getting done and stress on. Any business either small or big which is looking to run for a long time need to get market trend of the business for coming years. It is quite right nobody know what the future will be but this where role of marketing research companies comes to play. They predict the future of a business keeping various factors in mind. They are the experts in this and know how they can help their clients know the future of their business.

Hire a marketing research company and see the difference that actually shows the fact between your flourishing business and the one that is going into losses. If you are serious in getting involved into your business with positive signs visit a premier marketing research company, Visha Consultants right away.

Forex Trading Articles

Start Liking Trade Losses

The trader need to learn to like losses and how to manage the trade losses occurred at the forex trading platform. This learning about carrying the losses is one of the most significant lessons that the traders must learn if you want to endure as the successful trader at the trading platform to win over the currency pairs.

Although it is the most difficult task as well to take the losses easily and bear them intelligently to take it seriously keep in mind that nobody is hundred percent perfect but there are people who dictate and rap one song of perfection that too except form others and found it very easy to boost their pride with this feeling that they are the perfect ones.

This kind of ideology is difficult to continue for long but yes, of course if some attributes of the one personality are carried accurately that would definitely help the person to attain perfection up to some extent then too it should be kept in mind that attaining perfection is easy but maintain it for long in the attributes is a difficult task and can be carried out with simplicity.

This is an aspect of the forex trader psychology that should be analyzed in order to understand the persons’ capabilities to bear the losses and how the person percepts about these trade losses at the Forex trading platform.

Losses can be managed by keeping your head calm, take a break, calm down and relax and one more thing to maintain the temper is to stay back from the trading if it is difficult to digest and resist making trades.

The key to manage the losses is to cut short them immediately before it turned up into big losses that hard to recover. Do not made up a mind set that you will never face the losses instead get yourself prepared about the losses that would sure to occur once at forex trading platform. Because losses are inevitable and best thing that we can do is to get over these losses and move on the next trade.

Forex Trading Articles

How to Manage Losses in The Forex Trading

When the people creep into any kind of business or trade they go with the aim of earning huge profits as any rational person would like to and this is quite logical. The same is true with the forex trading as well that some day they will have huge profits and the next day they have to incur losses too. That is bit of a leveler in itself. To suffer losses is natural but having them on a regular basis can be fatal for your trading and the company. One of the basic rules of the forex trading is to keep the losses to a small extent. With the small amount of losses the forex traders can survive the tough times of the forex market and the situations when the forex market moves in the unfavorable manner. One of the way through which you can minimize your losses is to set up the maximum losses before opening or starting up the forex trading position.

The good thing in declaring the maximum losses is that it is the highest sum of capital with which you are ease at losing in the trade forex market. This also allows you to trade easily and taking your independent decisions without need to bothering of the losses suffered at the forex market. A major portion of the forex traders lose their money on a regular basis because they do not have a very good money management program. The people can never succeed at the forex trading if they neglect this very important issue of money management. You will see that there are many examples of the people who have suffered losses because of the faulty and irresponsive ways of trading.

In many of the cases the forex traders fails to make profits and the reason behind this is the risk factor. Taking too much risk at the initial point can be risky and can break your growing career. So, we should apply the good money management program in our schedule as a necessity. Always remember one thing that our main motive here in the forex market is to minimize the losses and to capitalize more on the profits.

General Forex

Forex Trading Systems and Tips

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With millions of people and institutions making money in the foreign exchange market everyday, you should be making money there too. Forex trading doesn’t require hundreds of thousands of dollars, in fact with the leverage offered by most brokerage firms, you can begin your career in forex trading with as little as $1,000. Before you begin however, there is so much information you need to know. Although you will need to conduct in-depth research on the market to learn forex, we have compiled a list of forex trading tips to help you succeed.

Don’t Break the Bank – Successful forex trading doesn’t mean making giant sweeping gains everyday. Your goal should be to watch the forex indicators to enter and exit the market when you can. Incremental increases are fine and big gains are great, but successful forex trading requires you to find a balance in the middle.

Do Your Homework – Reading up on world news is a good way to give yourself an edge in the forex market, as currency value is related to global events. When financial reports for each nation are released, take advantage of the forex trading tips right in those reports. Don’t assume the worst and close your positions; use the information to maximize profits. If you really want to learn forex, start with reading about factors that affect the market.

Trade without Fear – Don’t choose a forex trading system that requires tight stop-losses. You want to give each position a chance to work for you, and you can’t do that if you close positions before they are in profit. The most important thing to remember about the forex market is that the beauty is in the volatility, not the tranquility.

No Strategy, No Profits – Many who begin forex trading soon quit because they’ve lost their initial investment. Most traders who lose their initial investment do so because they refuse to stick to the rules of their forex trading system. The system you choose will act as your blueprint for success. Your strategy will tell you what currency to trade, when to trade it, and how to minimize your risks. Without a forex trading strategy, you risk losing everything.

Avoid OPH (off-peak hours) – As an individual forex trader, you may want to attempt to limit your risk by taking advantage of the 24-hour schedule of the forex market. Offpeak hours are 17:00 EST to 05:00 EST. This is not a strategy that will prove successful for small-scale or individual forex investors. Learn forex and trade during peak hours in an effort to maximize gains as much as possible.

Beware Wary of the News – Although you will rely on world news as part of your forex trading system, keep in mind that the 24-hour news cycle means that you may hear the same information more than once. Don’t let constant doomsday scenarios to affect your trading; listen to and read financial professionals you trust, not journalists who rely on bad news for ratings. Big swings in trade often come on the heels of important information; use that information and find a way to make it work for you. Although the news won’t always give you winning information, you may just find out something that saves you a ton of money.