After you`ve set your initial stop loss, chosen your method for calculating your trailing stop loss, and implemented all your money management rules, there is one last thing you should do; you should begin back testing your system.With out back testing you will be headed in the right direction, but you won`t know what to expect from your system. Back testing will also give you the confidence to keep going when you begin to experience the doubt...more
In Part 1 of Designing a Trading System in MetaStock, I had discussed the major components you needed to be able to track to create a mechanical entry system. These were measures of price, liquidity, trend, and volatility. The question now is, how do we code this into MetaStock?First, let me offer you the most valuable piece of knowledge I have acquired over the years about MetaStock formula writing. This one secret will turn you into a MetaStock...more
One day, while Chicken Little was walking in the woods, an acorn fell and hit him on his head."Goodness gracious me!" said Chicken Little, "The sky is falling, the sky is falling. I must go warn everyone."We see this all the time. The stock market goes straight up for eight or nine months, and if there are 2 or 3 down days in a row, there is hand-wringing and the moaning all over the place.Who are these people that panic at the first sign of a downturn or with the slightest bit of profit taking?The first group are people who get in the near the top and are now worried that their small losses will turn into big losses. Also, people who haven't invested in the stock market are in this same box. For many, many years they were wrong to not have invested, but now that the market has declined very slightly for a few days they would like the point out how smart they are and how dumb everyone else is.Short-sellers are the next group. Short selling is selling a security that the seller does not own but is committed to repurchasing eventually. It is used to take advantage of an expected decline in the security's price.The press comes next. You have heard this before: "bad news sells...more
Humpty Dumpty sat on a wall;Humpty Dumpty had a great fall. All the King's horses And all the King's menCouldn't put Humpty together again!You know this tragic story.During the 45+ years that I have been a financial advisor, I have seen this over and over and over again.A new client comes into my office and asks me to review their old portfolio....more
Once upon a time, there was a young hare, a hotshot rabbit investor who would always brag to anyone that would listen and that he was the smartest, fastest, best performing investor in the world. He would constantly tease the old tortoise about his slow, solid investment style.Then, one day, the annoyed tortoise answered back: "There is no denying...more
The 10 dumbest things investors say to advisors.1} When my investment gets back up to what I paid, get me out.This is surely a big mistake. That stock has absolutely no idea that you're waiting for it to go up so that you can sell.2}The stock is selling at $3.00 a share. How much can I lose?$3 multiplied by the number of shares. Oh yeah, don't forget to add in commission.3} I want to buy shares of XYZ Company. Three years ago, they were selling at $60; now the stock selling at $5.You can actually make a lot of money investing in good companies when their stocks are out of favor (go to dictionary - look up: "Warren Buffett"). You cannot make money buying junk just because it's cheap. (Same dictionary - lookup "cheap junk"). If this creates confusion - please see item 2.4} The stock is up 10 % this past month. It's too high, I can't buy it now. Have you ever heard of a long-term uptrend? Just because you missed the bottom doesn't mean you missed the boat. I've heard that the shortest time measurable by man is the time between when it's too soon to buy a stock and when it's too late.5} I paid $60 for that stock 3 years ago. Today it's selling at $4. I can't afford to sell. I don't...more
Is your home really an asset? Ask this question in any social setting and you will probably be met with puzzled gazes, because it is obvious to anyone that knows anything about anything that your home is not only an asset but it is your most prized...more
Trust is an essential part in managing people and building a high-performance organisation. It's the foundation upon which all relationships are built. As in any relationship, trust is central to stable and productive workplace relations and...more
You are deep in a tunnel. It is so dark and no place to go. You are trying to escape but your brain fools you. So you got stuck. So what does it has to do with finding dream jobs? Do you know why did people start to look for their dream job? Well a...more
In today's climate of change any one can find them selves short on cash and as a result miss a few payments. This can result in a foreclosure process being initiated by the lender. If you ever find yourself in such a situation you should contact your...more
Identity theft is one of the most common crimes in the world today. Unfortunately, identity theft can be devastating to some victims, leaving many with very low credit scores. This can affect their ability to buy a home or a car in the future, along...more
The best Stock Market advice you will ever read is to learn from mistakes when someone else has made them. So, this stock market advice list I made a list of some of the most common trading mistakes that are made. Even I've made some of these. If you...more