Investment Trading – What Should You Trade?

There is a lot of information about investment trading. If this is an area that you would like to explore on your own, one of the first points you need to address from the beginning is what you will be trading. Dealing with this is the only way to take the right steps to isolate the best resources to help you get started.

There are several popular markets that you can enter. You can trade stocks, currencies, options, commodities and contracts for differences. If you do your own research, you will notice that many experienced traders are involved in more than one market. This may not be the best option for you if you are just starting out.

You may think that the best investments are those that are diversified. You probably think that the more diverse your portfolio, the lower the risk of loss. At first, this may seem logical, as different markets have different levels of risk. One loophole in these considerations, however, is that understandably you will not be able to gain power over any market.

Let’s understand things. Trading in any market is not easy at all. In addition to the various technical elements you need to learn, you also need to develop a sense of proper entry and exit. In other words, you need to invest your energy in learning the intricacies of your market and how you can navigate through them. If you go on a diversified investment trade, you are likely to lose your entire trading flow due to lack of mastery.

This raises the question of which market is best to enter first. The most sensible answer is to go to the market that is most convenient for you. Read resources for each of your options and then agree on the one that makes the most sense to you and is the easiest to understand.

From an expert’s point of view, it may be easiest to start with stocks. Of course, there is nothing simple about making stock deals. Of all the markets, however, the stock market is the clearest. Plus, there’s so much information you can get your hands on. You will find one hundred and one useful and legitimate resources to help you understand what the market is and identify the best tools to facilitate the best investment.

The stock market is also the least risky to invest your money. Although no one is exempt from the possibility of huge losses in this market, especially if you follow the wrong system, you get some level of additional protection from the fact that the shares are not leveraged. Unlike currencies, you can’t earn that much in small capital trading. However, this is good because lower leverage potential means lower risks of losing a lot quickly.

The real secret of earthly wealth is really in the investment trade. You can only make big profits if you are sure you have made the right choice in the market. Don’t trade everything. Settle on only one market and master it.

Tips for choosing the best investment company

As for the best investment, most people do not know exactly where to start. Keep in mind that investing is a fierce industry. Those who are not fully aware of what they are doing may lose their hard-earned money. For this reason, most investors would like to receive help from a reputable investment company.

3 important factors

If you are looking for an investment company, you need to identify the 3 main factors. First, you need to clearly identify your goals. These experts can’t really help you if you don’t have a clear goal. Second, the new investment needs to do some background research as well as the reputation of the company it wants to work with. You need to make sure that he has an excellent experience and has received optimistic feedback from other investors. And third, you need to know what kind of relationship you want with the investment firm. Identifying these factors will greatly help you increase your chances of success.

Choosing your goals – Your goals will have a huge impact on what kind of investment company to work with. Most people today invest with 3 goals in mind: to increase their wealth with minimal start-up funds, to reduce their chances of risk or loss, and to hire experts who can take advantage of all the great opportunities available to them. In fact, it’s good to have different goals; however, these objectives must be clearly set out in a list before an expert is selected to work with.

Perform research – Due to the fact that most people do not invest, they do not really know how to conduct research in an investment company. Well, there are 3 things to consider – marketing materials, public trading records and financial statements. All these elements will give a broader idea of ​​how well the investment company is doing. It is important for you to look at how the company has performed over the last 5 years. Also observe how the group performed while the market was both down and up. This information will help you properly assess your capabilities.

Think brokers – Few brokers are well known in most markets. New investors like you need to learn about the careers of the most effective brokers. Keep in mind that it is normal for brokers to change companies from time to time. You need to know how companies perform when such brokers have worked with them. In addition, you need to be aware of how companies perform after leaving.

If you want to increase your finances, consider investing. However, don’t forget to work with the best investment company to ensure success.

Investing and Online Stock Trading and Stock: Money and Risk Management – Atkinson Portfolio Planner (1)

This article was originally included in Daryl Guppy’s Lessons in Applied Technical Analysis, voted for the res1 bulletin for Australian trade by Shares magazine and the №4 worldwide in US Stocks & Commodities magazine, and was reprinted here with Daryl’s permission.

In addition to developing solid technical analysis skills, a strong trading psychology combined with well-thought-out money and risk management are also vital key secrets to trading or investing in the market.

From real-life experiences and portfolio management lessons learned in a very difficult way, John Atkinson initially designed his series of three money and risk management spreadsheets to help his own trading. With the help of programmers Stephen Parsons and Peter Tamset, he recently added several user-friendly macros and now makes them available as easy-to-use and very affordable tools to help traders and investors plan and manage their portfolios.

They are designed to support the planning and development of profitable portfolio growth by introducing structured money control and risk management and as a means of keeping simple and accurate records.

Many investors and traders spend less time planning the risk of individual transactions and their overall portfolio to create wealth than when planning grocery shopping. Many do not plan at all, accurately track or review their progress.

Some believe that spreading or “diversifying” their portfolio into several large positions in “safe” blue chips is their way of dealing with money and risk management. They do not realize that overloading too many positions or too many positions can put their portfolio at serious risk.

Without proper planning, one can end up with a portfolio, which is a disaster waiting to happen. We know. We were there and we didn’t want you to go through sleepless nights and pull out the fear, the financial and emotional losses that we and a few traders we know have experienced as a result.

The main reason we lost our home in Sydney in 2000 and beyond was because we didn’t develop or stick to the right risk and money management rules – so our series of three portfolio tools was created by our personal very difficult experience of tapping into a very real financial cost of literally hundreds of thousands of dollars and with huge emotional costs.

Subsequently, we went looking for the information we would have liked to have sought or been advised before. These tools are based on various principles and strategies of “best practices in the world” taught by this newsletter, books by Daryl Guppy and other authors of traders such as Alan Hull, Louise Bedford, Dr. Alexander Elder and Dr. Van Tarp.

They consist of:

o Atkinson Portfolio Planner © – for advance planning of stock selection and overall risk for the sector and portfolio

o Atkinson Trade Optimizer © – Which stocks to buy when you have several to choose from and the funds available are only for one?

o Atkinson Portfolio Manager © – stop losses, targets, individual criteria for stocks and combined portfolios, expected duration of closed trades and much more

In the coming weeks, we will discuss each of these tools in detail.

We start this week with Atkinson Portfolio Planner ©.

This tool is designed to help you plan your portfolio properly so that you can sleep through the night knowing that you have a balanced portfolio and are not overly exposed in any trading, grouping hesitation or sector.

Also, that you have planned the correct number and size of open positions to make sure that your total portfolio risk does not exceed the criteria you specify.

This easy-to-use tool allows you to check the planned distribution of:

A combination of stocks with high, medium and low volatility

Combination of shares between sectors

Individual risk for each position as a% of your portfolio

Maximum% of your portfolio in any position

Total risk of your combined portfolio

Once you enter your requirements, Atkinson Portfolio Planner © will calculate the above key factors and even signal red warnings if any of your planned or open positions exceed your personal risk profile.

This allows the user to ensure that at the planning stages, your hard-earned capital will be allocated properly to match the risk levels selected by your own trading plan.

It is the user’s responsibility to research and select the criteria to be applied to his / her trading plan and as a key contribution to the portfolio planner © e.g. Instability and distribution by sectors, levels of loss suspension and% risk factors; and the final choice of which shares to buy and the applicable amounts of the position.

Putting all or most of your available funds in one stock or sector; exposing a large% of the portfolio to a single position or too many open positions with an unacceptable total% of the portfolio at risk are recipes for a potential disaster.

The experience of other traders shows that it is also prudent to diversify their capital in a chosen ratio between a set of high, medium and low levels of volatility in order to maximize the annual growth of their portfolio.

Experienced traders and investors have different rules for managing money and risk.

The following are some typical examples from the literature:

1. In his books and this bulletin, Daryl Gupi chooses 1/7 (14.3%) with high volatility (eg “Speculative”); 2/7 (28.6%) at medium volatility (eg “medium caps”) and 4/7 (57.1%) at low volatility (eg “blue chips”). Others may choose a maximum of 10% at high volatility. The final choice is the responsibility of the user

2. For small wallets, in her book Share Trading #, Daryl Guppy gives an example of building from $ 6k to $ 21k, starting with $ 2k (ie 1/3) with high volatility and $ 4k. 2 / 3rd) for stocks with low volatility; then divide this back by 1/7; 2/7 and 4/7 when the portfolio grew to $ 14k.

3. Maximum position size as% of the total portfolio: usually 20-25% absolute max; some are reduced to 15% or less for large portfolios or speculative stocks.

4. Maximum equity risk: No more than 2% of the portfolio to be exposed to risk in any transaction – some choose to reduce this 1% or 0.5% for larger portfolios or for more – very unstable positions.

5. In my book, 10 Ways to Not Lose Your Home in the Stock Market (2005), I wrote, “What we also failed to realize was that instead of spreading our risk, we increased our risk. For example, using a stop loss of 2% portfolio risk, let’s say a trader has ten positions. This means that if the market takes a sudden dive and all the stops are triggered, they risk losing 20% ​​of their total portfolio value. Expand this to twenty positions, then 20 x 2% = 40% of their portfolio is at risk. It can happen – it has happened. If you freeze or have margin loans, the destruction can be far worse ….

Dr. Elder refers to the 2% risk rule as protection against shark attack and extends the concept further to a 6% rule to protect against piranha attack, ie. to close the entire portfolio if it falls by 6% in the last month.

Accepting this to its logical extension, Dr. Elder describes how, using this strategy, it also limits traders to three positions (2% risk) to start until some of them rise to a profit before opening additional ones. positions. “

(Readers may wish to refer to my module of the home money and risk management training course, which is based on and includes Daryl Guppy’s books on share trading and better trading and includes my portfolio tools – available at Also refer to books by Louise Bedford (eg Trade Secrets) and Dr. Alexander the Elder (eg Come to My Trade Room) for further explanations.)

In the following article, I discuss how we use the Atkinson Portfolio Planner to ensure that the following criteria for planned risk and money management are met:

1. The maximum total value spent in each grouping of variability

2. The maximum total value spent in each sector

3. The maximum size of the position as% of the total portfolio

4. Capital risk for each position

5. The combined total portfolio risk exposure

Statistical expectation for risk calculation

The world does not work with absolute certainty, but the strategic decisions we choose have some impact on future results. The irony seems to be heightened by those who do not understand much of statistical duration. Adequate understanding of this topic makes the investor more informed about any business or personal desires.

The concept is simple.

E = expected duration

P (w) = Probability of winners

S (w) = Average size of the winner

P (l) = Probability of losers

S (l) = Average size of the loser

E = [P(w)*S(w)]-[P(l)S(l)]

For example, let’s look at New Zealand financial companies. They are committed to providing retail investors with just over the interest rate on government bonds, as long as their own investments are not subject to adjustments or utilization. Historically, credit markets have a positive relationship with the general economy, and the world has experienced at least two years of recession every decade, or two out of every 10 years. From this we can conclude that these companies will not end every year profitably.

Ie the rough probability of losing a year then is 2/10 = 0.2 or 20%, and the probability that they will end each year profitably is 1-2 / 10 = 0.8 or 80% at best. They offer retail investors annual rates of approximately 9x% (I will round them to 10%) in the years in which they set targets, and in the sword year the average investor seems to lose from 30% to 70%, an average of 50%.

So can the average retail investor “expect” to make a profit in the long run using these companies?

Probability of a winning year: (80% or 0.8)

Average profit of the investor: (10% or 0.1)

Probability of a bad year: (20% or 0.2)

Average loss of the investor: (50% or 0.5)

E = (0.8) (0.1) – (0.2) (0.5)

E = 0.08-0.1

E = -0.02

The negative expected duration suggests that a net loss is likely to occur in the long run. In fact, the average roulette player has a less negative expected duration than the upper; in other words, you will probably lose less money playing roulette in the casino than investing in financial companies.

To make a profit or get a bigger prize consistently, you need your country’s chances. Positive expected duration is one of the few ways to verify this. So learn the math and make wiser decisions.

10 basic tips for investors for a successful investment

Trading and investing in the financial markets have never been more popular. More and more people are beginning to see the benefits of spending some time, first investing in themselves through trading and investing in education, but also using this knowledge in the financial markets.

While traders can take faster positions and the investor is likely to hold positions much longer, maybe months or even years. So, if you want to invest successfully in the financial markets and profit from companies you already know about, such as Google, Facebook or Microsoft, these are the ten basic things an investor should do and know before starting. Let’s take a look …

1. What are your goals?

It sounds simple, but many people are starting to invest in a trillion-dollar market without any plan, which, let’s face it, is essentially gambling. While it can be very easy to invest profitably in the long run, you need to define your goals, as this will properly meet your expectations so that you do not kick your teeth if you do not reach a million dollars in one day. For example, knowing whether you are investing in the next five or twenty-five years can make a huge difference in the way you decide to invest.

2. Start early for compound interest

The biggest reason for the success of most billionaires is the power of “compound interest”. Even Albert Einstein considers this the “eighth wonder of the world.” In essence, this means that money makes you money, because all the profits you make are returned to the investment so that they can be combined and built over time. Sounds good, right? Definitely! The earlier you start, the better, but no matter how old you are, it’s never too late to start, but it’s a must to start!

3. Every little bit helps

No matter how little or how much you can invest, it is worth investing regularly. It sounds so simple, but most people don’t see the point in investing just $ 10 a month. However, if you are looking to the future when you are very old, that is a lot, especially if you have parked it in some good investments over the years. Of course, most people have a “spend today and save tomorrow” mentality, and that’s the trap. Save and invest regularly to reap the benefits in the long run – you’ll be glad you did.

4. Diversify

It is imperative that you allocate your capital to a wide range of investments to reduce risk and increase potential returns in the long run. While some investments perform poorly, others may do well, thus balancing it. However, if you have invested entirely in only one thing, it is 100% right or wrong. There are thousands of markets in currencies, stocks, commodities and indices, so the opportunity is there.

5. Educate yourself

Undoubtedly the most important piece of advice. You have to educate yourself and learn your craft. After all, if you are investing hard-earned capital, it makes sense to do your homework. Even if you’ve read all the articles here and watched all the videos, you’ll do far better than most investors who just give their money away in the markets.

6. Have practical expectations

Of course, we all want this million-dollar investment, and for many it will come at some point. But you can’t plan this if it happens great, if not, you still need a plan to survive and achieve your goals, as discussed in the first piece of advice. Remember that travel is the most beautiful part and what you do every day matters.

7. But don’t limit yourself

It is important to remain conservative when deciding which investment to take. However, this should not limit you to what you know. Be creative and find opportunities, no matter how inconvenient they may be. After all, if it was that convenient, everyone would do it. Be adventurous in finding opportunities, but be conservative in deciding which ones to take.

8. Manage risk

Successful investment involves risk management. If you have $ 1000 to invest, then there is no point in putting it all on just one investment. In essence, you say that there is 100% success … which, of course, is unlikely. If you follow the steps above, such as making sure you diversify, then you will be on the right track.

9. Review constantly

A very simple step to achieving more than what you are already doing is to review your investments constantly. However, this does not mean looking at your profit and loss from a five-year investment every day – you will never reach the fifth year as markets move up and down. But it is important to review what investments have worked and not worked. Concentrate on doing more things that have worked and find out where you are wrong with those that have not.

10. Have fun!

It sounds simple, but most people forget that the best work comes when we enjoy the process. Although investing is a serious process, you can also enjoy it. In fact, the noise of finding an opportunity, researching, investing in it, and then seeing the result is exciting in itself.

Here are ten important tips for successful investing.

Investing in a bank guarantee (BG) or SBLC – Choose the best one

There are many businessmen who invest in various banking instruments such as bank guarantees or standby letters of credit and receive many benefits with these types of banking instruments. However, there are so many people or businessmen who still have no idea about investing in banking instruments like BG OR SBLC.

Let’s first understand what SBLC and bank guarantee are used for?

What is SBLC?

A standby letter of credit or SBLC is a payment guarantee, also called a documentary letter of credit, issued by a bank on behalf of a client if he / she does not fulfill a contractual obligation with a third party in accordance with the terms and conditions of the letter of credit. SBLC is known to be the savior for people in great distress. Unless the situation is extremely critical, no one usually uses SBLC. This is the reason why it is called a last resort payment.

SBLC can help you stay away from bankruptcy and can be a great tool for trust. Keeping SBLC helps you from a business perspective on both a national and international platform, as it means you have a good financial history with the bank and the bank trusts you. This trust helps you strengthen your business to a great level.

What is a bank guarantee or BG?

Bank guarantees (BG) are credit products to ensure the successful fulfillment of the commitments they have made from their clients to future international exchanges (as a debtor or a buyer) that if something happens that you cannot pay their money for, the bank will influence payment in case of non-fulfillment of an obligation against submission of a written request in the guarantee. With a bank guarantee you can improve your business endeavors by choosing financial services from reliable banking institutions.

You can also increase your profits and make your business more successful.

In both cases, however, you need to make sure that you know all the conditions and understand all the needs of the investment. Investing in the wrong way will only cause you problems.

Now the question is, does investing in SBLC or a bank guarantee actually serve any purpose?

Investing in SBLC or BG really depends on the providers of SBLC and BG, which give you different opportunities to invest in these instruments. This means that the most important thing you need to do is find a legitimate provider to help you with the same.

Why Washington "Privatization of profits-socializing losses" Politics is so bullish for gold

Since when does American business work with a network?

From now on, obviously.

Our entire system of free enterprise, the two sides of the coin, has always been a chance to succeed beyond our wildest dreams … as well as to fail like never before. This is a dynamic market that works surprisingly well, and success and failure remain extremely strong motivators.

In fact, when it comes down to it, the fear of failure on this day from the mindless media attention can actually stimulate the most person or company.

But that fear, at least for the elite few, has already gone the way of 8-tape cassettes, slide rules, and great big cell phones. Today, Washington has hit the label “too big to fail” on some large corporations … though nowhere does it say that American taxpayers are also involved in their profitability when those companies finally get back on their feet.

Not that we would actually accept a corporate flyer. For most red-blooded Americans, this would be terribly close to socialism. But the inequality of “privatizing profits while socializing losses” must strike anyone who has a family, a mortgage, gasoline to buy, food to put on the table, and no assurance that their success will always be borne by a rich uncle.

Using socialism to save capitalism?

The insightful phrase “privatizing profits while socializing losses” comes from someone who knows a lot about it. Nouriel Roubini, a former senior adviser to the US Treasury Department, noted that Washington’s rescue plan for Freddie Mack and Fanny May is “socialism for the rich, well-connected and Wall Street; it is a continuation of a corrupt system.” where profits are privatized and losses are socialized.

Rubini is not alone when he strikes an alarm. “When I picked up my paper yesterday, I thought I woke up in France,” said Senator Jim Banning of Kentucky. “But no, it turns out that socialism is alive and well in America. The Secretary of the Treasury wants a blank check to buy as many debts or shares of Fanny and Freddie as he wants. The purchase of Bear Stearns’ assets by the Fed it was amateur socialism until then. “

However, the prospect of Fanny and Freddie failing is imaginative. The two represent about $ 5 trillion in mortgages, which, in the long run, is close to those of Washington whole debt. Both companies may have actually mutated into something that is “too big to fail,” and could deserve special attention. Yet the federal government has not hesitated at all to put us in the hands of taxpayers for at least $ 1 trillion of their problems.

Let’s try to frame this picture more clearly. As private companies, Fanny and Freddie were able to make money unscrupulously on your way up by making easy mortgage money available to unqualified home buyers (thus inflating the real estate bubble) …today, after the rescue, both corporations enjoy business almost as usual, as if nothing ever happened … and because you and I are actually fair co-signed for them, these people will not have to lie awake at night, worried about their losses on their possible way down.

This is how several private companies live the American dream.

“The size of the rescue of Fannie Mae and Freddie Mac could easily exceed $ 1 trillion. But Congress has no idea what will happen,” warned analyst Porter Stansfield.

The antidote to inflation

The effects of this and other devastation on the economy are not easy to calculate. On the one hand, because banks lose a lot of money with default customer money, foreclosures and bankruptcies, powerful deflationary the forces are activated. On the other hand, Washington is flooding banks and the economy with at least as much money as they obviously have inflationary impact.

No matter how things fall, fear, mistrust, doubt, deflation, inflation and war play a role in the power of gold. “Watch gold prices continue to rise, even accelerate, as the US economy goes into recession, then into depression, as inflation and deflationary forces fight each other like two vultures fighting so that one can swallow the juicier part of the carcass, “said Alex Wallenwein of MarketOracle.

The cure for deflation

As a counter-inflationary investment, gold plays an almost legendary role. Witness how it keeps up and even outpaces rising oil and food prices.

But gold can also shine in a deflationary world.

During the Great Depression – the Great Deflationary Depression – the precious metal was in high demand both by banks (which wanted to cover explosive purchases and trading by paper-holding customers) and by people who wanted to secure a valuable store during this terrible economy.

In fact, demand was so hot that Washington decided to end the gold standard at $ 20.67 an ounce (while confiscating private gold and stop issuing gold coins), then again adopted a fixed price of $ 35 an ounce for the precious metal in 1934. d. … all this means that now illegal gold bars have practically risen by 69% in the first five years of the depression. Other forms of gold are also flourishing. For example, shares of Homestake Mining rose from $ 80 in October 1929 to $ 495 per share in December 1935 for a 518% return, another reflection of how people in the Depression era longed for the precious metal.

And the reserves that are not related to precious metals? They went the other way. Those who hold stocks watch the typical $ 10,000 wallet sink to $ 3,600 from the depths of the 1935 depression.

Does this mean that you should avoid gold because the government can simply confiscate it again (thanks to more rebellious demand)? Not if you owned collector’s or rare gold coins. The actual language of Roosevelt’s executive order was that “gold coins of recognized special value to collectors of rare and unusual coins” should be exempt from confiscation. It would be the same today.

So no matter what lies ahead – inflation, deflation or a hell of a combination of the two – it would probably be a good idea to make your portfolio root gold diversification. This is especially true if we find ourselves in the unfortunate position of co-signing for more difficult banks.

What to do after LTCG?

The stock market has become more volatile since the announcement of long-term capital gains (LTCG) in the 2018 budget. The main reason may not be the imposition of LTCG, but global volatility, which has increased over the past two weeks and contributed to increased volatility in India. market.

Such volatility has caused great concern among investors and they are not sure what to do with their investments, which will help them maximize their profits and minimize the tax burden. Although when making investments, the focus should be on making a profit, not on reducing the tax. One can reduce the impact of the tax, but it is not possible to abolish the tax after a certain increase in income.

We believe that you have nothing to worry about, at least for retail investors. This is due to the “grandfather” clause attached to this notice. According to which all your profits, accumulated until January 31, 2018, will remain tax-free. Then all gains up to the amount of Rs. 1 varnish will remain tax-free. This is for FY18, only winnings earned between February 1 and March 31 will be taxed.

If you have a large corps invested in mutual funds, say more than Rs. 1 kroner, then you may definitely have to pay some tax, even if your invested amount has increased by 1%.

From FY19 onwards, you must pay LTCG for all winnings in excess of Rs. 1 nail polish if you keep your investment for more than 12 months. For a shorter duration of holdings, you must pay a short-term capital gains tax of 15 percent.

We believe that this introduction to LTCG has a silver lining. First of all, it is not as bad as it is perceived by investors, especially for retail investors. Our calculation on the back of the envelope shows that you are only required to pay tax if you invest at least Rs. 60,000 every month and you earn at an average annual return of 12 percent. Although 12 percent has a realistic return, Rs. 60,000 is a very high amount for a retail investor.

In addition, if you continue to reserve a return on your investment after each year (no more than Rs. 1 varnish) and rebalance your portfolio to align with your investment goal, we do not see LTCG as a burden or depressing return on your investment. . Therefore, instead of waiting for a period in which your investment goal or a particular corpus for which you are investing matures, you should tactfully maintain a regular profit reserve and balance your portfolio and achieve your financial goal.

Have a nice investment!

Stock trading software

Sometimes the objective information provided by good stock trading software can be very useless in making an intelligent stock decision. Stock exchange software offers a reliable comparison of stocks and offers stocks to be bought or sold. Stock trading software is a mandatory requirement for short-term investors.

A variety of stock trading software is available, leaving the choice open to the trader. It depends, for example, on the investment needs of stock traders, whether traders want to track their portfolio or explore new stock opportunities. The stock trading software provides traders with a number of basic functions such as stock quotes in real time, as a result of which a software package for stock trading is formed.

The various key features provided by stock trading software are to establish the direction of the price by offering a starting price in the market and helping stock traders to make a profit by providing signs that show a breakthrough. In addition, stock trading software helps to determine the average price of securities by monitoring a moving average and warnings, such as triggering a movement that helps traders reach specific price targets. In addition to the above features, stock trading software also provides stock traders with model identification.

When stock traders choose stock trading software, it is advisable to take advantage of the free trial options offered by the vendors. This will help traders choose the right stock trading software.

The services provided by stock trading software are commendable, although ultimately consciousness, not emotions, should guide a person’s choice of buying stocks. It is important for stock traders to keep in mind that regardless of the stock trading software they use, stock trading involves buying and selling according to their trading preferences. The clearer their settings, the faster they can make a favorable decision.

Stock trading requires traders to follow a strictly controlled set of rules and tactics. Once adopted, stock traders can hope to replicate profitable trades with uniformity.

Give 100,000?

I recently wrote an article in which I mentioned the economic fact that nothing in the world of perception has any value. The only reason anything in your world has value is because you believe in it and at least one other person. The collective agreement is the only reason something in our world has value.

On a deeper level, you could say that the only reason our world of perception even exists is that all our minds agree that it is. Think about that for a moment. When you are born, a group of other minds constantly persuade you to think consistently, so that in gradual agreement your mind assigns a symbol to each object that has been shown to you how to perceive.

Your entire language, family history, and socialization have constantly taught you in one way or another throughout the formative years of your life. If you were born into another family or even of a different kind as dogs (I am a dog lover), the way you gather the world in your mind and thus your perception of everything would be completely different.

This affects you as a stock investor. In my recent article, How to See the Stock Market Properly, I mentioned that this collective bargaining process also dictates the values ​​we attribute to all goods and services in our economy. If our perception changes in relation to a good or service, then the corresponding value will change. Human perception creates value, not resources, in our modern world.

Think about that for a moment. It is the perception-focused productive efforts of everyone in society that allow you to go to the toilet in the morning, brush your teeth, drive on a well-maintained road to work, and live and work with a roof over your head. The productive efforts of all of us transform the things that seem to be there.

I constantly listen to and read nowadays an economic scumbag about secular bear stock markets for all sorts of macro reasons. I just remind my friends and colleagues when I hear or read such nonsense that macroeconomics is the darkest of sciences because of bad data. It’s like divination without a cheap crystal ball. But there is a phenomenon that people do not pay much attention to, which is very likely to have a huge impact on our global economy, and hence on our stock markets in this century.

People seem to have forgotten that the Soviet Union collapsed. The total population of the Soviet Union at the last census in January 1989 was 286,717,000. Think about this; over a quarter of a million minds and bodies have been added to the collective production pool!

This tells me, as a financial economist, that with so much human capital added to the collective labor fund, the world economy can only expand. This means more quality goods and services for us in the United States. This also means better quality goods and services for them, which are larger export markets for us. The recent opening of huge pools of human capital around the world, I believe, creates the most striking economic expansion in world history in this century. For this reason, I firmly believe that we will enter the largest bull market in world history this century and that eventually the Dow will reach 100,000. I’m not just a “bull across America,” I’m a “bull across the world!”