Day Trading Systems - 1 Tip You Need To Find a Profitable One by sacha tarkovsky

So, you're thinking of buying a day trading system? Well there is one way to find out if it works and here it is:
Ask for the real time track record.
That's how many real dollars has it made, in the market for the seller, over the long term 2 years.
Ask for it and we can guarantee you won't get one.
Why?
Because day trading doesn't work and is based upon logic that is flawed.
You may get some testimonials (lucky traders after a couple of trades or friends) or a hypothetical track record of the day trading system.
Let's consider what hypothetical means - In hindsight.
That's right, you can look at previous price history and make a track record up knowing where prices have been!
Well that's really hard, a child could do that
If I knew the closing prices would I make money?
UMM Hard question.
Why are there so many day trading systems sold?
Because, they appeal to the greed and ignorance of people and who don't ask the obvious question:
Have you ( the vendor) made money?
Of course they haven't, why would they sell it? For 50 - 100 dollars?
Day trading system vendors tend to fall into 2 categories:
1. Good writers (they know how to write great copy but have never traded) and know how to appeal to greed.
2. Failed traders or brokers, who know the language, sound knowledgeable, but can't make money.
Why don't day traders make money longer term?
Well the logic it is based on is dumb.
Let's see.
We have trillions of dollars traded everyday and yet they think they can pinpoint ranges within a day or a few hours when these moves are proven to be random - yeah right.
Stops
Are to close, volatility catches them out and they lose more than they win.
That would not be so bad if they could run their profits to cover the majority of losses they take.
Can they do this?
Of course not!
Their grateful to scalp a few points, however these never make up for the huge losses they incur.
The result with forex day trading systems?
A wipe out of equity.
If you don't believe the above, ask for the real time track record over the longer term, audited, of their own accounts making money and you won't get one.
Conclusion is: Don't use a day trading system.
About the Author
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7 Habits of Highly Effective Investors by J.S. Kim

There are 7 habits that highly effective investors engage in regularly that separate themselves from the thundering sheep herd. These 7 habits, in fact, often lead to highly effective investors acting very differently from the average investor not because he or she believes in contrarian investing, but because the highly effective investor utilizes information that the average investor does not consider in making his or her investment decisions. It is not the behavior that makes someone a highly effective investor, but it is the information a highly effective investor uncovers that makes his or her investing behavior drastically different.
These 7 habits are what drive the behavior of highly effective investors:
(1) Learn how to invest for yourself instead of handing your money to someone else to invest. Self-reliance is the best way to ensure that no one is selling you the highest fee or commission products or worse, stealing from your account or incompetently managing your account (which is almost the same as stealing).
(2) Incorporate buy and sell rules that you do not waver from. In investing, unlike relationships, emotion and hope are both the enemy. Becoming enamored with an investment or a stock and refusing to sell out when you've made enormous gains or minimal losses increases the chances that the investment will turn from a good to bad one or from a bad to worse one. Hoping that an investment will recoup losses that are unforeseen is a dangerous game as opposed to having definite sell rules that you follow no matter how much you love a particular investment.
(3) Having a "rich" life is not just about making money. The most effective investors have an investment system that they have customized to their strengths and that they have spent time to learn so that investing does not consume their lives. Effective investors have loads of success in their investment lives yet still have enough leisure time to spend lots of time with their friends and families.
(4) Don't enter investment opportunities you don't fully understand because someone else, even a close friend, tells you that there is no "downside" with unlimited upside. Anytime you here the phrase there is no downside, it should immediately trigger a red flag. There is no such thing as an investment with no downside. Even U.S. government treasuries, though none have ever defaulted to this date, still have a slim risk of defaulting. In fact, in 2006, the ceiling on the national debt had to be raised to ensure that the U.S. government could continue servicing interest on treasuries. Always take the time to fully understand what you invest in.
(5) Take as much time to understand that volatility does not equal risk.Every truly successful investor has hit some homeruns in their lifetime. This required investing in assets that have some considerable volatility. At the end of the day, only your absolute returns matter. If this requires having to invest 15% of your portfolio in much more volatile assets than the rest of the 85% of your portfolio, and out of that 15% the chances are high that some will lose money but the chances are high that some will end up being enormous home runs, it is much better to invest this way than to invest 100% in assets that you expect to return 8% a year.
Effective investors take very calculated risks in assets that have high levels of volatility to earn returns that blow the average investor out of the water. Again, investing like this is not riskier than the guy that conservatively invests. In fact, the conservative investor is taking the greater risk, because he or she has a much higher probability of never getting rich. Effective investors ensure that not only do they understand this concept, but that they effectively apply it as well. The overwhelming majority of financial consultants employed by large global investment houses do not understand this concept. That is why habit #1, Learn to invest yourself, is so important.
(6) Employ the long tail of investment analysis and the long tail of investment strategies to vastly improve your returns. The flattening of the world and increased accessibility to top-notch financial, corporate, and political information has created a drastic shift in the most effective investment strategies. Just Google "Long tail of investment strategies" and the "Long tail of investment analysis" to find more information about this.
(7) No highly effective investor utilizes diversification to become wealthy. It simply can't be done. Specialize, specialize, specialize. Become an expert in several asset classes and find the best investment opportunities in these asset classes. Join an investment club with other experts and leverage all the expert knowledge to find the best investment opportunities not in your country, but the best investment opportunities in the world.
Please click here to learn how to invest money and for free investment advice and educational resources
About the Author
J.S. Kim is the founder and managing director of SmartKnowledgeU™, LLC. He has earned a degree in Neurobiology from the University of Pennsylvania, a Master in Public Affairs and an MBA with a concentration in finance from the University of Texas at Austin. Please click here to learn how to achieve financial freedom

How to Be Your Own Investor by Arthur Andersen

How To Be Your Own Investor
If you want to learn how to be your own investor, you'll need some strategies. Up to about 20 years ago, share investing was purely in the domain of the wealthy. For most people it was difficult to trade in overseas stock exchanges, there were no such thing as cash management trusts, installment warrants, exchange traded options, dividend imputation, reset preference shares and endowment warrants - to name a few. Now about 50% of investors are "mums and dads" investors who either own shares directly or in managed funds. Unfortunately, in recent years many investors have been "burnt" because they did not understand the risks of investing in financial markets.
The ground rule is that if you want to be a successful investor in financial markets, you must educate yourself about investing. Even if you put your faith in a licensed investment advisor, not all are competent. It is essential that you understand how the financial markets work so that you do not put your hard earned money in the hands of an incompetent advisor who is only interested in the commissions available. How can you tell whether a particular investment is right for you? The only sure way is to become familiar with the language used in the financial industry and to have a sound investment strategy. Does this mean that you should keep you money safe by putting it under the bed or keeping it in the bank? No - but you do need to understand the risks involved and set ground rules for successful investing.
There are a number of ground rules in investing that haves stood the test of time. With time, patience and effort you can become a successful investor in all the areas that are open to you. This will not come overnight and you will have to be prepared for that fact there will be times you lose money. However, perseverance is a virtue above all others. The road is not always easy, but nothing worthwhile is.
Here are the ground rules for successful investing:
1. Be your own investment manager. No advisor or stockbroker should do it for you. Only you know what your real needs are, what your temperament is - and only you are motivated by your own best interests, not sales commissions. It is also more fun to do it yourself.
2. Confront risk and then reduce it through spreading your investments.
3. Take a contrarians view to investment markets. That is, look for opportunities and do the opposite of what everyone else is doing.
4. Do not be put off by investment jargon. Master it instead.
5. NOW is the best time to start investing. Do not wait for the markets to improve. If the share market is filled with gloom, that is the time to buy.
6. Make good quality shares the core of your investment strategy. Then you can rest easy when you invest in more speculative areas.
7. Always consider tax implications of making investments but never let tax minimization be the main objective. The fundamental rule is to think in terms of after-tax returns.
8. Keep up to date through reading the financial papers and searching independent investment research websites.
9. Discussing investments is stimulating. Condition your mind to talk to others about investing, especially people who are more experienced and knowledgeable than you are.
10. Do not be greedy. Discipline yourself to cut your losses with bad investments and cash in when you have made a reasonable profit.
11. Be patient. Rome was not built in a day. Similarly, you may not become wealthy overnight, but you will over time.
12. Never invest in anything you do not understand. If a particular investment sounds too good to be true, it usually is.
13. Pay yourself first. Most people invest money they have left over after paying the bills. Allocate yourself the first 10% of your monthly income to build up your investment capital. By doing this you will force yourself to become an investor and the long term benefits will be enormous.
If you master these 13 ground rules on how to be your own investor, you will be a successful investor. You will rival so-called professionals and will sleep easily at night knowing that money is the least of your worries.
About the Author
For more successful investment strategies, visit:
http://investing-re.blogspot.com/
http://www.keep-you-informed.com/how-to-invest/