Become a Better Global Macro Trader

Posted by Jeff Johnson | Stock market | Sunday 18 January 2009 1:39 pm
by Jeff Johnson

We have been in this business for a long time and have found these things to be lacking when helping struggling global macro traders improve their performance. In fact we basically look at these not as guidelines but as rules. You may have other problems but these are a few things that will help you to improve your investing results.

Capital Preservation: This goes by other names such as risk management but the same principles apply. You must learn to size your positions on a standalone basis as well as in the context of a portfolio. You also need to learn to use and adhere to stops. If you don’t then you leave yourself open to seemingly never ending losses. By not losing a lot on any trade you will have a better chance at making a lot. Simple but true.

Process is Key: The process is ten times more important then any one trade result. If you focus more on doing the same thing each time and less on the potential gains or losses in each trade your results will be far better and you will make more money. If on the other hand you obsess over each loss you will become destructive and likely try and reinvent the wheel on each new trade.

Look for Real Opportunities: Look for the best risk to reward opportunities. Many traders will stay in a trade at the expense of everything else. Between not learning how to take a loss and just a bad understanding of opportunity cost many global macro traders will stay in a position when they could have made money in a new one. Look for trades with significant upside and minimal downside. The more you do this the lower your hit rate can be.

Outside Services: Traders hesitate to pay money to services because they are usually very skeptical. While that skepticism is well warranted it is also important to keep an open mind. If you are ever lacking for ideas or are just wondering if there is more money out there then you may want to take advantage of some of the many newsletters and other outside services. You will find that some don’t fit your style but others will resonate well with you and by subscribing to 3-6 of these services you will likely plug some holes in your market knowledge.

Read, Read, and Read Some More: Trading is an ongoing pursuit and most of the best global macro traders never stop their education. If you need to learn more about economics then buy a book or take a class. If you want to know more about earnings then read a book, take an accounting class, etc. Bad at reading charts? Join the MTA and look at some technical analysis books. Basically fill in the voids that you have in knowledge.

Your Body: If you neglect your health your trading results will show it. If your mind is not at 90% or higher then there is a great chance that your decision making process will be sorely lacking. If that is the case then you will obviously not be making the kind of money that you should be. Don’t neglect your body and your mind will thank you for it.

If you are able to follow these relatively simple steps then you will be well on your way to improving your trading performance. If you are already working on these weaknesses then good for you. If not then look inside yourself and work at improving your global macro trading performance.

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How Understanding Your Investment Personality Can Make You Rich

Posted by Rahn Naro | Investing | Sunday 18 January 2009 8:35 am
by Rahn Naro

Obviously were all different and have different goals and styles of investing, some enjoy risk, others are adverse to it. Put these factors together and they’ll determine your investment personality, and the way you determine your financial future. There are those among us ready to take a risk plunging in and out of the market at a moment’s notice; while others invest only for retirement, seeking to conserve their capital, but never realizing the upside potential of a good penny stock pick.

When you’ve made the decision to become an investor, either large or small, analyze your own investment personality. If you’re a conservative investor, prone to worry, you’d be better suited for long-term Blue-chip investments. On the flip side, if you have a “Type A” personality, you’d probably enjoy the thrill of the hunt with the potential of watching a penny stock climb 100, 200, even 500% or more.

All of this wish to be part of the American dream, but none want that dream to turn into a nightmare. In order to ensure your success, first determine your own investment personality, your bankroll, your short-term and long-term goals. Understand that no matter who you are, or what you’ve learned, there will always be winners and losers, that is simply the way the market works. If you’re on a loser, get out fast and live to invest another day.

While the American dream sees all of us increasing our wealth and achieving our goals, this dream can only be realized by taking action, and knowing your comfort zone. Take the time to determine the type of investor you are, find an area of the market that you’re comfortable in, and realize no matter your information or methods, no one can bat 1000. This simply means there will always be winners and losers, our objective is to pick more winners over time.

There may be a day when we put careful thought and analysis into a particular stock, only to find it tanking leaving us wondering where we did wrong. In many cases you’ve done nothing wrong, you’re simply a victim of the economic climate. If you find you did make an investment mistake, (something we’ve all done at least once), don’t let it define you, learn from it and move on.

Will you need your money back quickly or are you investing for retirement? No matter the type of investor, we’re all hoping for increase over time, but many would like that increase to happen rapidly. In order to experience a rapid ROI, it’s mandatory you get into the market at the right time with the greatest opporutnity for upside potential. That might seem obvious but not surprisingly many investors get blindsided by the market.

Will you need your money back quickly, or will you let it sit for the long-term? If you’re someone who needs your money quickly, do you have the proper mentality to watch the markets rise and fall on a daily basis? It will often be necessary to jump in and out of a position as trends change, are you prepared for this? If not you might be better suited to buy established stocks and hold for long-term gains?

FACTS CONCERING PENNY STOCKS: Penny stocks have great upside potential and should not be ignored by the investor. While high-pressure salesman have given penny stocks a bad rep in the past, there are many established companies, that began life as penny stocks.

Becoming an investor in today’s market is a challenging enterprise, however using sound strategies and proper picks, your upside potential can be enormous.

Once you’ve taken the time to take a good look at your own investment personality, we’d suggest you subscribe to a quality investment newsletters, seeking to learn as much as possible about your area of interest.

Once you’ve taken the time to decide on your investment strategy, personality, and goals, the first step is to establish and fund your brokerage account. By having this step in place, when the timing is right, you be perfectly positioned to move quickly and decisively.

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How is real estate doing in Miami?

Posted by Maria Juarez | Real estate | Sunday 18 January 2009 7:56 am
by Sandy Kelly

Sunny Miami Florida is one of the hottest markets in the world. It has Pristine Beaches and is one of the best cities in the world.

The best areas of Miami saw huge jumps in value in the early 2000s. Some areas we upwards of 295%. Realtors Loved all the commissions they were earning off these areas.

While values in real estate grew dramatically during this time, Miami still was adding businesses, employment opportunities, and discretionary income. This never stopped and led to Miami becoming an featured city to live in.

Today, the real estate market in Miami has decreased and has become extremely affordable. If you are interested in renting a home or apartment here, you may acquire one that isn’t expensive and is very reasonable. Miami has continued been known for its sunshine and fun, which is why it has become so popular.

Some homes in Miami are taking longer to sell, but that is because it is a buyer’s market and the average investor and homeowner can negotiate low low prices.

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