Monday, June 29, 2009
Traditionally, an inexperienced trader will exit a position once they see a little bit of a profit in their trading account. They want to crystallize that profit immediately. People don`t like to lose, and they believe that those profits, made in the Stock Market, are their profits, and once they have them, they don`t want to risk giving them back to the Stock market.
Is the Stock market strategy written about in this article doomed to failure, since it breaks one of the cardinal rules of trading; to let your profits run? It is always wise to implement cardinal rules like this, but how do you implement this in the Stock market? Well, after you`ve defined your trading float, set your maximum loss, calculated your stop losses, and also calculated your position sizing â you can determine how to handle profits.
Once you`ve set your initial stop loss, you`ve ensured a mechanism to cut your losses short. Now you need to introduce a rule that allows your profits to run. By simply setting these two rules, you can control two important variables - whether or not you make a profit, and how much profit you`re going to make.
Of the two types of exits you use in the Stock market, hopefully it`s the ones we`re about to discuss now that you`ll get to implement more often, as these are the ones that are implemented once you`re in a profitable situation. Trailing stop losses will allow you to follow a trend as it develops in the Stock market, and exit the position at the point where you can realistically maximize your profits.
A simple example can illustrate the importance of a trailing stop loss. If you received a buy signal and purchased XYZ, and set your initial stop loss, you`d be sure to keep your losses small. But, your initial stop does not move. What happens if, after purchasing XYZ, the asset runs up a few hundred percent?
Unless you have a way to lock in the profit, you could keep that position until the share reverts all the way back down to your stop loss, where you would exit the trade. You would end up losing money even though there`s potential for some fantastic gains.
Obviously, you need to have a way to keep a situation like this from ever happening, and that`s exactly what a trailing stop does. This form of stop is adjusted on a periodic basis according to a mathematical formula that keeps it moving upward as the price moves upward.
After the first day of trading, if the price moves in your favour, or even if the shares volatility shrinks, then the trailing stop is moved in your favour. If the Stock Market then moved against you enough for your stop to be triggered, you would still take a loss, but it would not be as large as your initial stop loss.
The key to the trailing stop loss in the Stock market is that you need to adjust the asset continually to make sure that the stop is moved in your favour. A trailing stop loss is calculated in a way that is very similar to the way we calculated our initial stop loss. The only difference being rather than calculating our trailing stop loss from the entry price, we`re calculating our stop loss from the highest price since entry.
With a trailing stop loss in place, you will be able to let your profits run, and let your trading system deliver the maximum profit in the Stock Market.
How to Maintain Your Income Stream If You Are Laid Off?
The world has entered into a recession, many corporations and companies had announced their job cutting news. If you are an employee for any of the companies that have plan to reduce their company's headcounts; then, your job will not be guaranteed. The question is how you are going to maintain your income stream just in case you are being laid off and unable to find a new job due to the job opportunities have been cutting down tremendously by most companies. It's time for you to think of setting up a second income source.
If you are thinking of getting a part-time job from other company, and go to work after your day job, then you probably will have a hard time find one in today's recession situation. Then, what other ways to source for income if you can't find a part-time job?
What if you create one for yourself? There are a few ways to make your own business without the need to investment a lot of money. By using the advantages of internet and online business features that allow you to work from home, here are the 2 common ways of earning money online:
1. Affiliate marketing
Affiliate marketing is a business model that enables you to make money online without the need to have your own product. There are many online merchants looking for marketing outsourcing. They make their products available for online freelance agents, called affiliates who will be given commission based on their sales. You can set up a website to sell a few selected affiliate products. Your role as an affiliate is to drive web traffic to your website or directly to merchant's website through a unique link that will identify you as the affiliate who makes the sale.
Affiliate marketing has been a good income source for many people either as the part-time job or a full-time income. You may consider to set up a second income source through affiliate marketing while you still with your day job. Invest some time and efforts to make it successful; it can become your main income source just in case you are being laid off.
2. Set up an online store
Unlike traditional business, you don't need to invest a lot of money to have your own business on internet. You can choose to become your own boss by opening an online store to sell physical or downloadable products. In addition, you don't need to own a product for an online business. There is a business called dropshipping where you can easily find the products you are interested in selling at your online store; buy it at wholesale price and sell it at retail price at your online store. Under the dropshipping business model, dropshippers will sell you their product at wholesale price for individual item and they will deliver the ordered items to your customers on your behalf.
You don't need to quit your day job to start an online business. In fact, you can do it in parallel and work it out for a success. The income from online store can replace your main income just in case you have lost your job due to being laid off.
Under the bad economy situation where companies are looking for potential cost cutting and headcounts reduction, no job is guaranteed. As a working individual, you need to start to think of how to maintain your income stream if you are hit by the recession wave. Internet can be the best source to set up an income online and be the back up income stream while you are still with your day job.
Saturday, June 27, 2009
Michael Jackson, the legendary singer, songwriter and dancer, died in Los Angeles on Thursday.
Friday, June 26, 2009
with Michael Cheney from AdSense Videos
Q. So what made
you get started with AdSense?
was looking for a way to monetize some of my websites. AdSense
is such an easy thing to get started with the eye for it would
be a great way to start earning more money without actually putting
into much more effort. I think as soon as you see the first earnings
coming into your account you get addicted to AdSense. I know is
what happened to me and since then I've just spent time working
out how to earn more and more each day.
Q. How much do
you make with AdSense?
A. Some days I can earn
close to $1000 and others it's less than that. But it all comes
down to how much time and effort you devote to creating a quality
site that people like visiting. AdSense is not what my business
is based on by any means - but it is a great way to earn revenue
almost on autopilot.
Q. What is the
biggest mistake people making with AdSense?
the biggest mistake people make is thinking the AdSense earnings
are easy to achieve. It is very easy to get started but as I learned
it takes a lot of effort to increase your earnings. I got really
downhearted whenever I would log in to my account to see that
I had only made a few dollars. And that's when I decided to spend
months and months of my time learning everything I could about
I basically buried myself
away and devoured every single piece of AdSense information I
could find. I ran thousands of AdSense tests and started to see
a dramatic effect on my click through ratio and therefore on my
This is why I'd decided
to record the videos - because I knew that it would help people
who were in my position to also increase their earnings. I've
read an absolute ton of AdSense e-book's but they take so long
to go through and always seem to keep information back.
With AdSense Videos I
knew that I had to tell the story exactly as it is and actually
show people and lead them by the hand through the exact techniques
that I use to generate large earnings from AdSense.
Q. In your videos
you show people how to increase their AdSense earnings - can you
give us a taster of this advice?
don't want to give away my biggest secrets as you can understand!
But some of the more basic things that you can do to increase
your revenues include using ads that blend in rather than stand
out from your content. Flat out the worst thing you can do with
an AdSense ad is make it look like the standard Google ad. What
you need to realise is that you will get more clicks if your ad
actually appears part of your site rather than something that's
just been dropped into the page.
Q. What would
you recommend that someone do right now to increase their AdSense
created a totally free AdSense minicourse that people can go through
to learn some of my techniques. It takes you through the four
cornerstone principles that I've used to build up my AdSense empire.
You can check it out, as well as all the AdSense Videos, here:
CLICK HERE FOR THE VIDEOS
Thursday, June 25, 2009
January 30, 2009 C-SPAN