Increase Your Trading Profits

Do You Want Increased Profits? Then Go After Decreased Losses!

Hello, this is Bob Eldridge and I'd like to share with you a frequently overlooked source of profits from your trading. It's a simple concept yet so very important if you expect to be able to continue trading for any length of time! The concept is that of controlling both the number of losses you have and the dollar amount of those losses. I realize that statement sounds so obvious that you might be tempted to put this article away in favor of a night of bad television, but please stick with me here. I'll share some things with you that you probably don't expect to find here!

To better visualize the concept I'm describing, picture a large washtub, the kind you probably remember from your childhood. Now imagine the difficulty of filling the washtub if it has several 'six-inch' holes in the bottom! No matter HOW MANY garden hoses you have filling it up, the water is running out faster than it's going in!! Now imagine plugging each of the holes, one at a time. Plug the first one and the difference is almost imperceptible. Plug the second hole and you begin to notice that there is less water splashing on the ground. Plug the third and you actually may see the water level in the tub begin to rise ... just slightly, perhaps, but rise nonetheless! Plug ALL the holes but one and the difference becomes measurable! Now that you're down to one hole, let's begin to repair it a piece at a time. First we cover HALF the hole ... while the tub still leaks, you can now tell there's more water going INTO the tub than running out the bottom. Patch half the remaining leak and you begin to adapt to the idea that it's OKAY if a little water comes out, just as long as there's more going in than coming out!

Our trading accounts are something like that. Most new traders have HUGE trading account "holes" and the money is draining out faster than they can replace it! No matter how profitable they are on some of thier trades, they just seem to give it all BACK! If we're smart about our trading when we notice that, we'll STOP trading until we find the challenge and FIX it! What I'm describing are the DIRECT results of FOCUSING on the profits and almost totally forgetting about controlling the losses. There are many reasons for that but despite the reason, the results are the same. Left unchecked, such a situation will take us totally out of the trading business in a very short period of time! Does this describe you and your trading account? Would you like to know how to 'FIX' it? Let me share with you four RULES for trading which directly address losses and if followed, can 'plug' many of your profit leaks!

RULE 1. Wait for the stock to CONFIRM the anticipated direction before entering the trade

This rule can decrease the NUMBER of losses you experience. As simple as that sounds, it's one of the most often violated principles of good trading habits. So often is this rule broken that we are all familiar with cute little descriptions such as "catching a falling piano", or "reaching for a falling knife." What you use for this confirmation is your own affair; price rise or fall, momentum, frequency of trades or bid / ask "size" are just a few ways. Personally I combine them all (more or less), developing a 'feeling' about the confirmation, rather than a measurable quantity. However you choose to define confirmation, let experience be your best teacher here and do NOT enter the trade until you're convinced the stock is moving your direction!

RULE 2. When you are filled on the entry, place a STOP loss to minimize your potential for loss.

This rule controls the AMOUNT you can lose on any one trade. I like to use about 1/2 of the stock daily movement for my stop loss amount. For example, if a stock price moves on average, say $1 every trading day, then I'll back off 1/2 of that, or 50 cents and place my stop loss there, limiting the losses possibly incurred on that trade. Whatever you use, be FAITHFUL in adhering to the protection afforded by the stop. In other words, DON'T CHANGE IT. If you're stopped, you're stopped. He who trades and runs away lives to trade another day!

So much for minimizing the NUMBER and dollar amount of losses. Equally important is allowing your profits to maximize AT THE SAME TIME! Here's how to do that.


RULE 3. When you become profitable in a trade, replace the stop loss with a TRAILING stop, trailing by that amount of profit.

This one is so important that I believe it should be the 22nd amendment to our Constitution! Say you're up 25 cents in a trade and you have your stop loss in at 50 cents below your entry (on long positions). Replace the stop loss with a 25 cent trailing stop. At THIS point, you WORST CASE outcome for the trade is BREAKEVEN (give or take a couple of pennies)!!! In my live trading lab on my website, I often refer to this as the MAGIC point in the trade. You have virtually NOTHING to lose and EVERYTHING to gain from that point on!

Finally, for the 'do-it-yourself- traders ...

RULE 4. Leave the trade alone from this point on!

The market overall will do a much better job of managing the trade (with the above rules observed) than you or I EVER could! Once you've reached the MAGIC POINT in your trade, just go away and do something else. Your trade is on autopilot!

I'm glad to have been able to spend the last few minutes sharing this with you. I hope it helps you to trade more profitably!!

Bob with Better Trades


Check out our Stock Trading System

Cleaning your hearing aids

Hearing aids which fit in the ear.

When removing your hearing aid before you go to bed you should carefully wipe down with a soft dry cloth or tissue. You should also spend some time inspecting the part of the hearing aid that fits into the ear canal as it is likely that a accumulation of ear wax may have occurred. If this is the case then you will have to remove the wax. When you purchased the hearing aids you should receive a cleaning tool which can be used to do this which usually takes the form of a wire pick or a brush or you could also use a toothbrush.

Hearing aids which fir behind the ear.

As with the above, the procedure is similar. However, the main difference being that the ear mould which fits into the ear which is usually made of Lucite or silicone which is non-electrical and therefore can be washed in mild soapy water. Before washing it is important to ensure the earpiece is disconnected from the behind the ear section to ensure the electrical part of the hearing aid does not get wet. Dry the ear piece correctly before using and also ensure that the tube is clear of water. Please note that the tube may need to be replaced after a period of time usually 3 to 6 months as the flexibility may be lost.

Things not to do…

1. Wash the hearing aid with solvents or alcohol as this may cause the materials from which the aid is made to break down. You can purchase special cleaning fluids designed to clean hearing aids.

2. Don’t let the electrical part of the hearing aid get wet. Avoid wearing the aid when showering of bathing.

3. Try not to drop the hearing aid, especially on a hard floor as this may cause the hearing aid to break.


Hearing Aid Styles

How To Clean Hearing Aids

Can an Alcoholic Ever Return to Social Drinking?

Can a person addicted to alcohol turn back the clock and return to social drinking?

Here is the difference between a social drinker and a drinker who has actually developed an addiction to alcohol:

Social Drinker

A social drinker drinks alcohol on occasion, but drinking does not continually occupy their thoughts. They can enjoy a drink or two and take it or leave it, not giving drinking another consideration. Leaving a half finished drink does not bother them even remotely. There are no negative consequences as a result of their drinking (other than possibly an isolated incident) causing them no problems overall. There is no loss of control or consequences related to their drinking. Family and friends have no reason to voice concern about the drinking patterns of a social drinker.

Problem Drinker or Alcoholic

It is inevitable that the use of alcohol will progress to the point where negative consequences begin to occur, such as a DUI or getting involved in other legal problems, possibly an assault charge. There is no question that alcohol was the offender, and a serious consequence occurred that was actually a personal and devastating compromise of the standards of the drinker. A night in jail for someone who, if it wasn't for alcohol, would never have seen the inside of a jail cell.

Drinking starts to occupy your thoughts more frequently now, looking forward to and constantly planning that next drink. Drinking is running interference with family obligations, social obligations, and work.

The problem drinker no longer possesses the ability to set limits on his or her drinking and adhere to them. This is a distinct difference from the social user who doesn't need any limits. When the alcoholic picks up a drink, he or she cannot guarantee the outcome. All bets are off.

Alcoholism and Alcohol Addiction

The primary characteristic of alcoholism is the loss of control over drinking. Therefore, an alcoholic would not be able to successfully return to controlled drinking based on the definition.

One of the dreams of an alcoholic is to be able to go back to social drinking. You would have to be an alcoholic to have that kind of dream. Social drinkers wouldn't think in those terms.

In addition to loss of control, there is an inevitable increase in tolerance, withdrawal, frequency and volume in regard to drinking. The hallmark characteristic is that an alcoholic cannot quit despite his or her most sincere efforts to do so, and continues to drink and continues to experience these devastating consequences.

Can an alcoholic regain control over his or her drinking? Unfortunately, the answer is and will always be no. In fact, many alcoholics will get some clean time in, but when they go back to drinking will either make up for lost time by drinking with a vengeance or start out drinking less for a very short period, but will be right back to the volume and frequency of drinking they were engaging in prior to their success in stopping for that short time. Most alcoholics will try to control their drinking many, many times in their drinking career, never reaching that much coveted title of social drinker.

One reason social drinking is no longer an option may be in no small part due to changes in the brain. There are significant differences between the brain scan of a normal person and a brain scan of an alcoholic.

Any addict's least favorite word is no. But unfortunately, in this case, once a person has become addicted to alcohol, the chances of them being able to return to normal drinking is probably one in a million, if that.

If you have a drinking problem and want help, there is an easier way:

http://HowIStoppedDrinking.org

Living with an alcoholic is very taxing on the non-drinker because it is so all-consuming and stressful, and wears tremendously on your self esteem. Visit http://www.livingwithanalcoholic.org for some dos and don'ts

Bad Credit Card- Offered By Many Companies

Check-books and paying with cash is becoming less frequent as more people are using plastic to pay for purchases. Checkbooks are being replaced by debit cards and the use of credit cards is rising. Online shopping has helped fuel the need for a credit card. Unfortunately people with bad credit are normally not approved for a credit card. It is not hopeless, there are avenues for those with bad credit histories to enter or return to the world of plastic.

Bad credit - credit cards are offered by many companies. This became a necessity since individuals with low incomes or credit problems would be declined for a low interest, no fee credit card. Many of these companies use what is called Risk Based Pricing. What this does is they have several types of offerings with different interest rates. The rate they offer is based on your credit score. So if you apply for one card you may get declined but offered a card with a higher rate. This is an excellent way for someone with a bit of a negative credit history to be approved for a bad credit, credit card.

So what about those individuals with no credit or extremely negative credit? They may need to look at another type of bad credit, credit card. There are several companies that target these types of people. They offer what is called a starter card. This type of card has a very high interest rate and very low credit limit. There are also a substantial amount of fees normally connected with these cards.

These cards pale in comparison to the more normal type of credit card offers but the acceptance rate is high. By using, one of these bad credit, credit cards and keeping with the terms of the agreement, making payments on time in a period of time your credit rating will be more positive. This will allow you the opportunity to apply with a better chance of acceptance for a lower rate and more favorable term credit card.

There are some individuals with such critical credit problems, a recent bankruptcy for instance, that a starter card would not be an option. If this is the case the only solution that would be left is a prepaid credit card which is sometimes called a secured card. The fact they look like a credit card it the only similarity. They need to have funds deposited to use them. You are virtually guaranteed to be accepted for this type of bad credit, credit card.

They work the same as any Mastercard or Visa but you can only spend the amount of money you have deposited. This leaves very little risk to the card issuer since you can not incur any debt with them. Because the issuer of the card will not be making any money on monthly interest rates for the balance they make their money in other ways. The can charge a fee for applying, a annual fee, an administration fee even a small percentage for every time you purchase something with the card. You will want to research several companies before applying for this type of bad credit, credit card since these fees can vary greatly.

Basically what all this means if even with a bad credit rating, nearly everyone can find a bad credit, credit card. It may take some research but it can be accomplished.


credit card imprint machine and merchant credit card machines