Category: ‘GoldRock Insider’
Working Out Your Return On Investment
When it comes to looking at your Trading or Investing Results over a period of time, one of the clearest forms of measurement is your Return On Investment in relation to your Nett Profit.
But how do you work out your Return On Investment for the month?
It’s simple.
Total Profit or Loss divided by Initial Investment * 100 = Your Return On Investment %
For Example:
Your Trading Account starts at $1000 on August 1st. Then by the end of August you have increased your trading account balance to $1100, which is a Nett profit of $100. » Continue Reading »
Do You Understand What You Are Trading…?
I was recently having lunch in a London café in Canary Wharf and I was reading a book written by a top stock market trader.
His name is Lex Van Dam and the book is called ‘How to Make Money Trading’ . I had spotted it on my way back to my hotel the day prior. Lex had recently had a TV show where he took 8 ordinary people off the street, gave them 500,000 pounds to trade and over 6 weeks they had to trade like a banker.
Needless to say they lost about 4% I believe but his professionals over the same period in the bank lost much more. The book was for the most part a very simple read but went into great depth about the success and failure of stock market investors and talked openly about how to win and lose on the stock market. There was one chapter that had me spell bound and I sat bolt upright when he started to explain about why people who don’t have control, lose money trading and investing. He said that most folks who don’t know why they are making an investment decision are usually the losers and he also said that unless you know everything about the company you are investing in and have done the homework yourself then his advice was don’t buy it. It’s the same with Forex Trading. Take the time to understand WHY you are placing a trade, once you understand the WHY then you are one step closer to becoming a successful trader. » Continue Reading »
How to Trade Like a Banker
As Seen on Yahoo Finance!
New individual traders often feel lost and clueless after they spend a few days trading in the foreign exchange market. Specifically, if you are new to the world of Forex, you often feel under-privileged compared with senior traders and financial institutions, especially the banks who seem to have access to market knowledge that individual traders do not. However, what makes the senior traders and banks so successful is no secret; it’s just a matter of experience and resources. The main factors that distinguish them from the rest of the speculating crowd are their superior trading strategies, expertise in fundamental and technical analysis, swift access to financial data releases and command over Forex signals.
Big Players in the Forex Market
Large international banks and foreign exchange banks are the most active traders on the foreign exchange market, accounting for almost 80 percent of currency trading volume. These big players completely dominate the Forex market in terms of trading. The banks participate in currency trading using their huge pool of clients and their own accounts. 2010 Euromoney FX survey revealed that top ten most active traders including Deutsche Bank, UBS AG, Barclays Capital, Citi Bank etc alone account for 77 percent of Forex trading volume. Needless to say, they dictate the bid and ask prices in the Forex market. » Continue Reading »
5 Fundamental Truths of Trading
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If only we all had someone watching over our trading...
Anything can happen
- I don’t need to know what is going to happen next in order to make money
- There is a random distribution between wins and losses for any given set of variables that define an edge
- An edge is nothing more than an indication of a higher probability of one thing happening over another
- Every moment in the market is unique
How successful people make decisions.
Kerwin Rae shared some of his marketing secrets
I recently had the opportunity to speak in Portugal to a group of successful investors and business owners who were at a conference called the Billionaire Boot Camp. During the course of 7 days the attendees effectively studied how Billionaire’s run businesses, how they think, how they act and how they make what seems like consistent successful decisions. I was simply there to share with the attendees the power of learning about the Foreign Currency markets and share with them my views on the current market conditions and how they can best take advantage of learning how to trade Forex.
Now I am not professing to know how all Billionaire’s operate but I did share with the attendees how some of them go about considering financial decisions. What sets successful people apart from the rest is simply the decisions they make in life and business and the ability to make the right decisions at the right time.
This often comes down to a simple set of questions.
- What is the cost?
- What is the return?
- Can the return keep paying me for the same cost?
These are 3 simple questions are what many successful people ask themselves when making a financial decision. » Continue Reading »
London Trader blew £350 million after 4 day bender.
Trading + Alcohol = Not a winning formula...
An oil dealer at PVM Oil Futures called Steve Perkins is reported to like a game of golf and a good drink, or at least he used too. He recently traded with $520 million dollars after a 4 day booze filled bender and figured he’d place a few trades while he was in the mood at 3.41am on his lap top. The story goes that he wanted to move the market and indeed did, substantially. Problem was he blacked out completely after the trades were placed and openly admits he was so drunk he had absolutely no idea what he was doing. What was the upshot of his substantial loss? He was fired and banned from trading in the UK by the Financial Services Authority.
It is alleged that he traded 9 million barrels of oil in the middle of the night and lost £350 million pounds.
Where is he now and what is he doing? It was reported recently in the London Evening Standard that he is now rumoured to be in talks about a new trading job trading energy contracts for a Swiss firm. It was reported that when the Financial Services Authority was asked what they were going to do about it, responded with a statement that said: “Mr Perkins poses an extreme risk to the market when drunk.”
Do you have Realistic Expectations?
It is an absolute fact that we all begin trading because we want more money in our life. Whether that is $50 a week or $5000 a week, the expectation is that we will make money. So what should be a realistic expectation for a trader entering Forex and how much is too much or too little or none at all when you trade Forex.
One thing that I have learnt through the school of hard knocks is that there is no question all budding Forex traders who join LTG GoldRock have a high expectation on their success in the first 12 months. The most common question I get asked is. “How long till I can make my educational investment back”. Ok a fair question however the answer lies in your commitment to learn to trade and becoming a student of the markets. Traders always overestimate how much money they are going to make in the first 12 months however underestimate what they can achieve over 3 to 5 years if they actually learn the skill and art of trading. A high expectation (which is a healthy thing if the expectation is realistic) is often met by disappointment in the first 3 months which dampens the long term opportunity as the money is not coming fast enough. Especially if they are joining to fix a financial situation. If you are considering joining LTG GoldRock for this reason then please don’t join.
I met one of my absolute very best graduates for coffee at my local coffee shop here in Noosa today. His name is Jimmy and he is honestly today living the life of his dreams. I am so proud of him!! » Continue Reading »
Trading Complication
One of the amazing aspects about trading and making money is that humans often think that to make money the system must be complicated and sophisticated. Certainly most people over complicate trading and think that they need to look the goods with a heap of screens, indicators and often alarms. I’ve seen and heard it time and time again that a trader has come up with a new indicator that’s going to blow the market out of the water, only to find that it fails miserably when it comes to trading it with a live account.
One aspect of trading that you must understand and take on board RIGHT NOW is this. The market is only a two horse race. Buyers and Sellers are the only horses in this race and the price is either going up or down. How simple is that. Yeah I know what you are thinking, it has to be more complicated than that, ITS NOT! Simply looking at a trend and placing a trade with a trend has the probability of continuing in the direction of the trend rather than reverse and go the other way. But why is it humans consistently try and build systems and indicators that over complicate things. The more complicated you make things the less likely you will make money, period. » Continue Reading »
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