Posts Tagged ‘risk’
Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.
You know the old joke:
“How do you make a million in the stock market? Start with two million?”
There is no way around it, risk and stock market fees are a part of trading that you can`t avoid. But, you can manage your risk. You can also manage the brokerage stock trading fees that eat away at your trading float. All it takes is some planning and making good choices.
If you think you`re ready to start trading, look carefully at where you`re getting your money from. Maybe you`ve been considering trading for a while and built up some savings. That`s good planning. Or maybe you`re considering borrowing money. This is generally a bad idea. Maxing out your credit cards is a quick and easy way to get cash, but the effects can be devastating.
It`s hard enough to worry about making trading profits along with the stock market fees you have to pay. But, worrying about the debt servicing on your credit cards builds too much stress. You will be too concerned with making payments to be concerned about good trading. Don Miller talks about this in Trading Markets World Meet the Traders when he tells new traders to worry about trading well, not making money. One of the best ways to learn trading is to begin on a part-time basis. This allows you to hone your skills while you still have an income stream. As a trader, you need to realize the risk you`re taking by simply putting your money into the market.
With good money management, you`ll be able to limit your risk. But, there is a kind of risk that can`t be minimized, and that`s “market risk”. This is the risk that the market might not be there tomorrow. Just by putting money in the market you are putting it at risk, so make sure you only trade with money you are willing to lose. This isn`t to say that you are going to lose all your capital – it`s just to say that you need to be able to focus on trading well, not trading to make money. See, you can only do this if you work with money you can afford to lose.
Once you`ve got your capital together, you can consider the next barrier to trading, stock trading fees. Although there is no perfect amount of capital to start trading with it`s no secret that the bigger the trading float you begin with, the easier it is to trade and the less percentage of stock trading fees you will have to pay. This is because of the single biggest expense in trading – brokerage stock trading fees.
Every broker has many different stock trading fees, but many charge flat stock trading fees per trade. These flat stock trading fees are easier on traders with larger fund sizes. For example, to obtain a better understanding on how stock trading fees work, let`s consider two traders. One is starting with an opening position of $1,000 and the second is starting with an opening position of $10,000. All traders are charged flat stock market fees of $100. So, our first trader, with a position of $1,000 has to make back ten percent of his float on each trade before he breaks even. But, our second trader only has to realize a one percent gain to reach his break-even point. This doesn`t mean that you can`t start trading with a smaller float, but if you do you are at a bit of a disadvantage.
However, you can use your trading float size to help determine your trading system. If you have a very small trading float, it`s recommended that you look at a long-term system. With a long-term system, you will be incurring far fewer stock trading fees. A short-term system, where you are receiving lots of buy and sell signals will chew up your trading float very quickly with the cost of the different stock trading fees.
This is why short-term systems, such as day-trading, are best suited to larger trading sizes – it is easier on the stock trading fees. I actually recommend that when you begin trading that you look at a longer-term system. You can manage a long-term system while still working full-time. Once you are successful with the long-term time frame, you might look at moving to a shorter-term system and focussing more time on your trading.
You can mange both risk and stock trading fees with planning, and by making good choices. Your level of capital will be set by what you can afford, and what you are comfortable risking. How that capital grows will be set by the time-frame of the systems your planning to trade, and the instruments you trade with. from winter’s barrenness, they desert us too quickly!
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Conflicts With Your Boss Are Inevitable, But Can Be Healthy
If you are a pro-active, get-things-done type, sooner or later you will come in conflict with your boss. The same sort of assertiveness and confidence that leads you to have a mind of your own has helped him to earn his position.
Another reality is that if you do not have some periodic disagreements with your supervisors you are probably not being as assertive as you should be in moving your career ahead.
These conflicts can prove to be hazardous to the health of your career if they are not handled with common sense, says Ramon Greenwood, senior career counselor, www.CommonSenseAtWork.com>
No one enjoys conflict, especially with the boss. But when you have an honest difference of opinion, it is better to pay the price of discomfort and take the risk of some penalty than to bottle up the frustration and nagging conscience that results from not meeting what you see as your responsibilities.
Knowing you will have conflicts, you can be prepared to handle them so there are no individual losers.
TURN CONFLICTS TO ADVANTAGES
Greenwood says there are nine steps you can take to lessen the damage that can result from conflicts with your boss. In fact, you can turn these conflicts to your advantage.
1. The first step is to concisely define the issue– preferably in writing– so that you have a clear understanding as to what the controversy is all about. Determine how important it is to the parties involved and to the organization.
If it is not truly important beyond your personal feelings, forget it. Save your energies for another time when the stakes are significant.
2. Give full consideration to the points of view of all parties concerned, especially the boss. His responsibilities are different than yours. He may have a legitimate reason for his opinion, which you are not aware of at the moment. The conflict you see may disappear with an explanation.
3. Weigh your reasons and objectives against the good of the organization. Before you “go to the mat” on an issue, be sure you are motivated by what you believe to be the larger interest and not just your own narrowly defined agenda.
4. Ask for a face-to-face discussion with your boss if, after due consideration, you still feel the difference is worth pursuing. If the matter is not resolved with a meeting, ask permission to leave a written explanation with your boss for his further consideration.
5. Never push your boss into a corner where he has no room for compromise. Do not air the conflict with your boss in the presence of others.
6. Avoid letting the matter be positioned on a personal basis. Emotions and personalities have no place in a confrontation with the boss.
7. Be tactful. Show respect for the boss’s position and responsibilities. Whatever the outcome of your differences with him, he is still your boss.
8. Keep the matter in perspective. It is good to remember that win, lose or draw, it is a rare situation when the resolution of an issue results in a pot of gold at the end of the rainbow or the world coming to an end.
9. Don’t pin a medal on your chest if you prevail or wear the black of mourning if the decision goes the other way. Get on with the job. If you have been heard and the boss still doesn’t agree, be a good trooper, support his decision, openly and aggressively. If the outlook is contrary to your basic values look for another job.
If you can’t discuss the inevitable conflicts with your boss in a free and open manner so as to arrive at acceptable resolutions, or if such disagreements are so frequent and painful that your life and career are being disrupted, recognize you have a problem larger than any single issue. It may be that you are at odds with the standards and objectives of the boss or the organization. Or the personal chemistry between you and your boss may be out of balance.
If you can’t resolve the conflicts or live with them, locate another opportunity. Life is too short to exist in a world of turmoil and confrontations, in the opinion of Greenwood.
Senior career counselor for http://www.CommonSenseAtWork.com, Ramon Greenwood is a former senior vice president of American Express; a professional director for various businesses; a consultant; a published author of career related books and a syndicated column
Three Tips To Help You Benefit From Golf Video Instruction
Golf video instruction can be a powerful tool in helping any golfer improve their handicap. Yet many golfers do not fully benefit from them.
The reason is that their approach is wrong and they are therefore unable to benefit from the practical advice and tips received through golf video instruction.
Here I carry three tips to help you benefit and reap the full rewards from golf video instruction tapes.
A) Watch the whole golf video instruction tape to the end first and then slowly review it starting from the beginning. Quite as you enjoy watching the golf video for the very first time, most of the instructions and tips will hardly be remembered.
Exactly the same thing happens when you read a book whose contents you want to retain. This is why it is very important to go through the golf video a second time carefully taking note of the all the instruction and tips. It is not a bade idea to record it all in a note book.
B) Apply only one golf video instruction tip at a time to your game.
Usually you will end up with a huge volume of instruction and tips from the golf video. It is therefore advisable to apply one at a time, rather than try to apply several and when you do not seem to get any result, you simply abandon everything.
This is exactly what most golfers do. Be patient and apply the tips one at a time. You will find that some do not work for you. Do not get discouraged, move to the next one and patiently work your way through your entire list.
C) Combine you application of the golf video instruction with a golf-specific exercise program.
There are many things in golf which will be extremely difficult to apply to your game if you are not physically fit. Or at least golf-fit. Some techniques can even increase the risk of injury if you are not involved in any golf exercise program.
Ensuring that you are golf fit is a very important requirement for reaping maximum benefits from golf video instruction tapes.
About The Author:
Mike Pedersen is one of the top golf fitness experts in the country, author of the Ultimate Golf Fitness Guide, and founder of several cutting-edge online golf fitness sites. Visit his new golf fitness training site at Perform Better Golf.
