Gearing up for an important performance, Beyonce Knowles was seen leaving her hotel in Washington, DC on Wednesday evening (May 19).The "Irreplaceable" singer happened to be heading to
the White House to take part in President Barack Obama's second State Dinner.
Held in honor of Mexico's President Felipe Calderon and first lady Margarita Zavala, Beyonce will take the stage along with Mexican duo Rodrigo y Gabriela and the United States Marine Band.
Drawing plenty of star power, other attendees include "Desparate Housewives" actress Eva Longoria, the lovely Salma Hayek, and talk show hosts Oprah Winfrey and George Lopez.
Beyonce White House State Dinner Performer
Low Rider Cars and Bikes
1940s, 1950s and 1960s. It has a lot of accessories out in the market to cater to the enthusiasts. And because of many modifications in its internal parts, such rides are more prone to damage or obstructions along the road and are not legally allowed to ply the streets.
Low riders started in East Los Angeles as a phenomenon for Mexican-Americans, with majority of its riders being Latinos. A customized hydraulic suspension system is very common features here. They have direct control on the suspension to alter the height, from simple to complex systems. It varies the combination of two battery-powered hydraulic pumps to produce specific movement of the vehicle.
Low riders were popularized and began as part of the Californian and Southwestern American metropolitan civilization. They aim to cruise as slow as possible as what their motto says, "Bajito y Suavecito" or "Low and Slow." Their urban culture became universal in the early 1990s in West Coast hip hop.
In today's new era, low riding outlook varies in many other cultures. Vehicles have new visual styles and appearance but still it is an important thing for the Chicano community. For all intents and purposes, all options in low riders are still available at low rider builders with their styles that vary from coast to coast.
Summertime is the most awaited season as it is the time when they go outside and hang around with their group. Some riders and tavern owners have their weekly gatherings together with their friends. Some will go for a drag race for a more thrilling experience. Low riders are typically seen in a prearranged shows or competitions.
In 1962, one of the most popular low rider was the 1964 Chevy Impala hardtop edition. Another model was the 1958 - 1964 Impalas. Meanwhile, the 1961 - 1964 Chevrolet Impala become the fastest selling car together with the 1978 - 88 GM G-bodies. Also hot in the market were the Chevrolet Monte Carlo, Oldsmobile Cutlass Supreme, Buick Regal and the Pontiac Grand Prix. The 1973 - 1977 relative edition became the entry level low riders.
During intense customization of low rider cars, some go by in restoring stock cars particularly those American cars in 1930s - 1960s. Other countries like the Volvo PV544, VW Beetle, Morris Minor, Ford Zodiac, Vauxhall Cresta, Vauxhall Victor to be their substitutes for American car because of the shortage of imported cars and its costs in producing new vehicles.
Low rider cars were only in for only a year when the bikers were inspired and customized their own bikes for a low ride too. These inspired bicycles, a well modified bike, features long, curved banana seats, upward - swept handlebars, and with sissy bars. It is excessively chromed up with big wheels and velvet use as common accessories of these customized two-wheel rides.
Low rider bikes first came out and were recognized in the 1960s. It was first seen customized by George Barris in America. After that, the Schwinn Co. introduced to the market the new muscle bike or the so-called Sting-Ray that George Barris first used. It was featured in the Munster.
Until now, low rider bikes are famous and popular with its new designs and distinctive looks, fully customized and modified body in addition to its air hydraulic cylinder. Features include a height adjustable suspension, highly refined chrome, metal frame, twisted forks, handlebars or spokes, sissy bars and the mounted 2-seater love seat. Read More Adverti News...
Accent Your Car Or Bike With LED
If you are crazy on car modification, you will surely know the advantages of LED bulbs. This is one aftermarket product, which are used by most of the people to modify their cars. It is not only used for cars, but also for the modification purpose of the bikes. There are different colors of LED lights available in the
market. However, most of the people opt for white LED bulbs.
Fixing an LED bulb to a car is an easy task, but if you need to fix it to a bike, you should also have the LED kit with you. These kits will provide more power focus to the light. Therefore, if you are planning to fix such a bulb to your bike, it is wise to do the work done by an expert. Most of the stores, which will provide you the LED bulbs, will also help you in fixing the lights to your vehicle. The light focus of the Led lights is amazing when it is compared with other bulbs available in the market. This will not only help you by providing more power but also give an elegant look to your vehicle, once it is installed.
If you want to know the real advantages of these bulbs, you should ride your car or bike after installing it. Fully utilize the online resources to buy the right bulbs by comparing the different models and the prices. Be very careful in choosing the right bulb for your vehicle for long-term effect.
Good Article Writing Is Really All About
Article writing is easy once you know how. Online article writing is very different to magazine article writing. Article writing is something that gets tedious to the publisher who sends out an ezine every week, but it doesn't have to be like that.
Article Writing is the one significant forms of marketing and promotion that guarantees your credibility. Article writing is one of the best marketing strategies to obtain free, natural search listings within Google, Yahoo and other search engines.
Another goal of article writing is to make your article search engine friendly. One of the main purposes of article writing is to obtain a one way link and generate traffic to your site. This is achieved by the Bio Box at the end of your article, with your link in it.
Because of this, the value of article writing is immeasurable. Article writing is the life line of creating credibility and generating free traffic. Imagine having thousands of back links from people who have your article on their site.
What sets people apart from others when it comes to article writing is when they are prepared and they have a set procedure in writing them. Article writing is the absolute best and the cheapest way to generate that traffic, which converts to making money.
Article writing is like building a website, you have to start at the Headline, then the opening and then put all the parts together. Perhaps the most important thing about article writing is what you do with your articles once you've completed them. That's why you should submit them to credible article sites, like Ezine Articles to get them displayed for the world to look at.
How does writing articles or publishing to an ezine boost your business? It does it by hopefully people picking up your article and using it on their site, because they think your article is worthwhile and has substance for their topic.
No matter how many times a person has done it, writing articles has proven to be a task many have continuously avoided, because it can be hard to find your content. Then trying to get it all together.
Writing Articles for your business can pay off considerably, you just submit them to article sites for them to be accepted. Remember, they must be informative and be targeted to the subject your writing about.
While it is true that writing articles is a well known link baiting technique most website owners don't do article writing for that. Because I have a proven formula for writing 'killer' articles that will get you listed in the major search engines rapidly.
If you don't have the time to write articles yourself, you can outsource the job of article writing; this will cost you quite a bit. You could be up for anywhere "between $4 - $15 "per article.
Article writing is also used to create content by webmasters to create value for visitors. Well, the good news for article writers is that the measure of your success is not weighed by one article or even by article writing itself, it will be by providing informative, content-rich and valuable thoughts, research, expert advice and other proven tips and info that people want.
Article writing is one of the best ways to get consistent traffic to a website -- free. Article writing is one of the best marketing strategies to obtain free, natural search listings within Google, Yahoo and other search engines. Another goal of article writing is to make your article search engine friendly.
Why use Article Writing Software?
If you don't have the time to write articles yourself, you can outsource the job of article writing if you want to pay big $$$. Or you could automate the whole process for yourself, saving hours and hours of researching, compiling, and then getting it altogether.
No matter how many times a person has done it, writing articles has proven to be a task many have continuously avoided. How does writing articles or publishing to an ezine boost your business?
But sometimes writers wonder why their articles do not generate the traffic they need or do not work at its best. How do I write articles that increase my publicity and sales? Do you have a well thought out reason for writing articles?
Are Articles the Secret to Niche Marketing? It's not that hard to get your articles being published online instantly. There are many benefits to writing articles and submitting them to other ezines. Articles have more benefits than you can imagine.
People search for articles, read them, and try what they say. The resource box is the medium through which you generate traffic from you articles. You Need the Amazing Power of Articles to Become Successful Online - Jim Green. Are you a beginner to writing articles, and would like to know more about SEO article writing.
It's what good article writing is really all about, providing excellent information to people who will hopefully use it for themselves on their site.
Article writing is one of the best ways to increase your traffic and get more sales. Article writing is now a major weapon in search engine optimization. Well, SEO article writing is very much like that. Article writing is easy once you know how.
Have you ever considered that most all online article writing is opinion?.
Article Writing is the one significant form of marketing and promotion that guarantees your credibility. The first step to article writing is identifying what question you wish to answer, or which problem you wish to solve.
So how can you automate this task of writing articles?
We know that, the value of article writing is immeasurable. Article writing is one of the best ways to get traffic to your site. But it can get tiresome and tedious.
We know that Article writing is one of the best ways to get consistent traffic to a website -- free. Article writing is a sure shot way of web promotion.
Article writing is the life line of creating credibility and generating free traffic. Article writing is the absolute best and the cheapest way to generate that traffic, which converts to making money.
Article writing is the Internet advertising solutions that can get you search engine rankings. So you have to know a bit about writing them. There is lots of info out there to get you started.
Article writing is for you if you want great benefits that don't cost anything.
Article writing is important in a business because creating a decent article is perhaps the greatest way to create interest in your product.
Did you know that you can write your Article in about 15 minutes, remarkable new software has just been release by on of the webs most talented programmers? Read More Adverti News...
Energy to Create Wealth
Some of us even believe that if we have more money than we can be rich in life, yet those who have money are often unhappy and less enriched. We trample people to get what we want, not caring if others are hurt. We feel that money and power is required, yet when we get it we find out differently. Spiritual energy is the only way to have real wealth in the world and to have a true potential and principles.
What to have in Life
We have talked about self image above, and will continue here. If you are questioning what you need in life and what you do not need it all comes down to self image. How do you perceive yourself? Do you think you need wealth to be a whole person? Basically what this paragraph boils down to is that if you want to be a happy, complete person you need to understand that material things are not necessary for this. It is all about how you look at yourself and others. If you believe in faith and a sense of spiritualism you can be happy. It does require a conviction of inner beliefs in which you divest yourself of the material misinterpreted world.
Faith is more than luck. It is a state of mind in which you have the opportunity to achieve whatever you want as long as you can recognize it.
Thoughts
Spirituality, happiness, and everything else will begin with a thought. You must think of what you are now and what you hope to become. Freedom is attained only when you understand that there are no limits to your power to gain happiness in life. If you let the negative thoughts portray you as a victim than that is what you will be in life. However, if you gain positive feelings and ensure that you are who you want to be you will be rich and unlimited. Direct your mind to be open and free of the mundane materials.
Speech
Words are a weapon more so than any actual weapon. If you understand that speech has the power to change your life and way of thinking than you can understand how the positive flow of words can be used against the negative words that are weapons. Let speech by your motivation and be convinced by the words. Read More Adverti News...
Solve the Energy Crisis by Yourself
However, we have known how to beat the energy crisis for many decades through the use of alternative fuels particularly alternative energy ideas or green energy technology. Sadly, government after government have led us along the same path of dependency on other countries' fossil fuel reserves with little or no real regard for the environment.
Happily, there are men and women across the globe who have been fighting to get us all out of this mess whatever the pressures from government or big business dictate. Some have invented and developed alternative energy ideas only to find them bought up and shelved or worse yet, some have mysteriously died prematurely.
However, we no longer need to live under this curse due largely to the free access of information the internet allows us. We have the solutions, we know many ways of how to solve the fuel crisis even if it is only one little step at a time. Solar, wind and wave technology are all familiar to us but not everyone is familiar with the concept of a free energy generator, which will run infinitely and create free electric energy.
These days you can generate your own electric energy, using a magnetic energy generator that you can build yourself with readily available and inexpensive parts. It works by itself and it produces absolutely free eco-friendly energy sufficient to run your whole home.
If enough people know about this technology, pass the information on and most importantly act upon it then the answer to how to solve the energy crisis will be crystal clear - do it yourself. Read More Adverti News...
Automated Trading versus Manual Trading
The Foreign currency Exchange (FOREX) market is the largest and most liquid financial market in the world. The average daily trade in the global FOREX markets exceeds US$1.9 trillion (Source: the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2004, and published in March 2005). These huge funds are traded by governments, banks, and large institutions. For comparison, the biggest stock market on the Earth - NYSE Group (The New York Stock Exchange), has a daily trading volume of approximately $86.8 billion (Source: NYSE Group, Inc. 2006). FOREX has a 18.4% average growth rate per year since 1989. It offers trading 24 hours a day, five days a week, non-stop over Internet. This kind of massively liquid and long uninterrupted trading hours mean that under normal conditions there is no problem entering or exiting a trade.
But, in this huge market, as the story goes, at least 90% of new FOREX traders lose all their money within their first 3 months of trading. Why? Most losing traders who inquire about FOREX trading are quite intelligent, they just lack the right tools, the "Secret Weapons" to win. They are not beaten by other traders, they simply are beaten by themselves, by humans' weaknesses.
Talking about humans' weaknesses, let us list some as follows:
# 1. What is the first big weakness of human beings? if I say it should be "greed", is there anybody will disagree? Many times we have got 1% profit, but we feel it is not fat enough. We want more, 2% or 3% will be better. While the profit really goes to 3%, we will think how about 10%? Not enough forever. But the market is so volatile, especially in Forex market, we often encounter this depressive situation: profit turns into negative from positive. and this kind of depression happens again and again.
# 2. Fear. All people have fear. In Forex trading, currency rate is easily jumping or dropping hundreds of pips. Few of people can make sure how the market will go. In Forex market, people all use leverage to trade, from 50:1 to 500:1, leverage will enlarge the profit or loss from 50 times to 500 times. Leverage is the wonderful feature of Forex, and it lead fear into people's heart too. If the market goes against people, big drawdown comes, their fear comes too. Is there anybody not scary to lose money? Under the pressure of fear, people easily and often make wrong decisions, stop loss too early, then regret soon.
# 3. Lack of confidence. Seems better than fear, huh? But it is still not a good thing. Many times human traders are so happy once they see a little bit profit in their accounts. They are worrying what if the profit turns into loss? People always take a tiny profit and run, then regret while they see the market goes further and further along the right track. If they were confident, they would have made ten times or even a hundred times of profit.
# 4. Hesitation. Not only newbies, but also old-hands easily hesitate to act in Forex market. You've probably heard the saying "past performance does not predict future performance". Even a very experienced trader who has made many successful trades in his/her history, while he or she is facing a new situation, needs thinking twice before making a so simple decision: Buy or Sell? For new traders or amateurs, they need longer time to think, and this kind of hesitation always leads them to confusion and missing the best and fleeting chance.
# 5. Weariness. How many people can keep working for 24 hours? No sleep, no rest? How about 48 hours, 72 hours, etc? Even an iron man can not use his eyes watching computer monitor, his brain thinking fast changing questions and his hands calculating complex formulas, day and night, 24 hours a day, 6 days a week, non stop. Especially, no mistakes allowed!
Nobody can!
None!
No doubt!
Don't mention the Super Man. He has weariness too.
# 6. Negligence. Have you ever got trouble just because of a small negligence? such as took a wrong bus, missed an exit on highway, dialed a wrong number, misunderstood boss' order, ignored a no-parking sign, omitted a whole page of questions in an examination, left resume at home while a vital interview, misspelled a keyword in a quote form for a VIP customer, etc. Hi, man, when was the last time you forgot your mama's birthday, or worse, the wife's, or the worst, girl friend's? Mama always forgive your negligence. Wife... well, it depends. Girl friend? Huh, wish you good luck.
But unfortunately, in Forex market, no one will forgive your negligence, even yourself. Any negligence must be punished! You could get a margin call, only pennies left in account, may just because a tiny negligence.
# 7. Lack of discipline. Humans always think that we are smarter than machines. Sure we are. Not only we are smarter, we have freedom too. But everything has its nature, character, and rules. Rule means discipline. If we just feel smart and free in Forex trading, making decisions based on our feelings or knowledge only, and ignore discipline, there will be endless disasters waiting us ahead. Forex trading is like fighting in war, soldiers can not survive in war without discipline, neither can traders in Forex market. While we have to stop loss we must cut off and run, in spite of how bloody and painful it is, when we must take profit we can not hate the profit is too small. Discipline is discipline, perhaps some smarties can win a while, but only those people can keep obeying discipline forever can win forever.
# 8. Inconsistency. Long term or short term? buy or sell? prosperity or depression? over bought or over sold? high or low? support level or resistance level? fundamental analysis or technical analysis? including automated trading or manual trading? etc. There are too many inconsistent news, facts, information and methods, strategies in Forex market, easily cause human traders make inconsistent judgments and decisions. And these inconsistencies will cause only one same result: failure!
To overcome these terrible weaknesses of humans, people have developed many methods. One of them is called "Automated Trading". Automated (or Automatic) Forex Trading means to trade Forex (Foreign Currencies) using some trading systems, programs, software or robots (on Metatrader MT4 platform it is called as Expert Advisors - EA), without needing a human to physically trade. An automated trading system is a group of specific rules and parameters, governing entry and exit points, having the ability to both generate signals and execute trades automatically. An EA is an automated trading "robot". Robots can beat human beings at chess games, EA robots can beat humans at FOREX trading also.
Programmers consider many components synthesize while they are developing an automated trading system or EA robot, including: Nature of Market, Math Modeling, Time Frame, Entry and Exit Signals, Stop Loss Trigger, and Profit Target, etc. After the system is created, they do back testing and forward testing rigorously both in demo and live accounts. A fully automatic trading system created like this way is able to analyze the market independently, work completely on its own and constantly generate signals, auto-execute in a trading platform. Alternatively, programmers can design the system as a kind of 'semi-automated' whereby users can be alerted when the Entry, Exit, Stop Loss or Take Profit trigger occurs. Alerts can be audible through computer, sent to E-mail address or even sent as a message to cell phone. Once the user confirms, the robot will obey the order to finish the trade.
There are many advantages in Automated Forex Trading, such as:
# 1. Automated trading is executed by computer. Today, computer science and information technology have been developed to a very high level. Computer can perform calculations thousands of times faster than humans, workout logical computations without error and store memory at incredible speeds with flawless accuracy.
# 2. Taking the emotion out of trading. Unlike humans, an automated trading system will never be misguided by greed, fear, hesitation, and inconsistency. It just trade mechanically (but fully programmable), unaffected by a trader's psychology. It performs based on the set criteria and disciplines. Obviously, this reduces the risk of panic trading.
# 3. Automated trading can take trades day and night, non-stop, no weariness and negligence. EA robots free their owners of the necessity of sticking in front of the computer at all times. Once an effective system is developed and optimized, it can be left to run full automatically and independently. A successful automated trading EA robot will allow its owner to focus on optimizing strategies and money management rules rather than having to constantly watch the market.
# 4. Computer can run multiple programs simultaneously, so we can use automatic trading EA robots to take multiple trades synchronously. That means we can include multiple conditional entries and exits, profit targets, protective stops, trailing stops, and more in our strategies, and have them all automated at the same time. This powerful function can help us to maximize our return of investment, and reduce risk.
# 5. For day traders or other short term trading fans, automated trading robots are very helpful tools to deal with high frequency of trades using tick data. Day trading keeps traders exposed in market very shortly, so sometimes it is safer than long term trading, but it is really difficult for a human to handle. However, for automated trading EA robots , it is just a piece of cake.
# 6. No matter long or short term trading, Forex market always is volatile and waves fast, only automated trading can afford faster identification of signals and reaction to them. No doubt, computers will typically beat human beings in the speed of identifying a trading signal and the entry and execution of the corresponding orders. No more missing a trading opportunity.
Automated trading is not perfect yet, and EA robots can not think instead of humans. If the programmer's skills are at a low level, or the strategy idea is untenable or nonlogical, the corresponding product will not succeed. However, the practical experience shows that a high quality automated trading system always guaranties some kind of financial success for its owner working on Forex market. The latest fact is: in the Automated Trading Championship 2007, a world competition, all participants use EA robots, the champion won 1204.75% profit, the runner-up won 450.42%, and the third place won 299.45%, just within 12 weeks.
Golden Rules of Trading
The rules we cover are:
o Have specific goals and objectives
o Be consistent and disciplined
o Let profits run
o Cut losses short
o Never add to a losing trade
o Don't take too much risk
o Only trade positive expectancy systems
o Minimize all trading business costs
o Be well educated
o Don't trade scared money
Each of the rules will now be discussed.
2 The Golden Rules of Trading
The following sections outline a set of rules that can significantly improve your chances of success if they are understood, practiced, and implemented consistently in your trading. These rules have been learned the hard way, by study, research, trial-and-error, and the inevitable mistakes that everyone makes when they start a trading business.
We hope that you can learn from the work we have done, and benefit from our experience. The rules will now be discussed.
2.1 Have specific goals and objectives
Few things are more important to your trading success than having set (i.e. written) goals and objective for what you are aiming to achieve. It is amazing to me how often we hit our targets, meet our objectives, and reach our goals only when we articulate them and write them down.
For any business to be successful it must have measurable objectives that are actually achievable. In trading (obviously) the primary objective is to make money, but it is important to have other objectives that are not purely cash-related. We must always remember that reward and risk go hand-in-hand in trading and that we cannot expect to achieve high returns without planning for high risk (i.e. draw-downs).
Your objectives and goals will be very specific to you, but they must have the following characteristics to be useful:
o Be measurable (in completion and timeframe)
o Be achievable
o Be worthwhile
o Be positive
As an example, here are some of our current objectives (this is only a partial list):
o Develop 2 new positive-expectancy trading systems each year
o Make fewer errors implementing our trading systems each year
o Achieve a return to maximum draw-down ratio of 1.5:1
o Take 2 weeks vacation each year
Note that only one of them is about making money, and that has a measurable objective that is relative to draw-down, not absolute (i.e. make 100% per year). If you know what you are trying to achieve, and when you are trying to achieve it, the whole business will be focused on meeting
your objectives and help guide you to only pay attention to things you really want to achieve with your limited time and resources. This will also give you a way to measure the success and progress of your trading. Generally traders with well-defined objectives will be much more successful than those that do not have pre-defined goals.
2.2 Be consistent and disciplined
In order to realize the full potential of your trading systems it is critical that you take every trading entry, adjust every stop, and close out every trade as and when your system says you should do. This takes extreme confidence in your trading systems, good robust reliable technology, and the mental discipline to stick to your trading plan whatever happens (assuming it is complete).
An underlying assumption about being consistent and disciplined is that you have a pre-defined plan for every situation you may face in your trading, so that you know how you are defining what being consistent is. Your plan needs to include at least the following items:
o All your trading rules for entering, adding to, and exiting positions
o What you will do if your trading computer, internet connection, broker, power, telephone
etc. fails
o What you will do if you are unable to trade
o What you will do if you lose X% of your account
o What you will do if all the markets are closed and you can't exit your positions
Unless you write the answers down to all these issues, you cannot be consistent and disciplined in your approach to trading and if you lose money you will not know whether it is because you didn't follow your plan, because your plan is incomplete, because your systems do not work, or simply because you are going through a losing period.
2.3 Let profits run
This simple rule is the key to being a successful trader. It is three simple words that are very hard to actually implement. When we get a profitable trade our natural fear of losing the unrealized cash kicks in and we truly want to close it out now and take the money. Most trading consists of long periods of small winners and losers followed by a few huge winners that make the difference between overall profitability and simply breaking even or losing due to trading costs(commissions, spread, and slippage).
It is our ability to let the huge winners become just that - huge - that determines how we will perform overall during the year. The key to letting winners run is to have trailing stops that are outside the daily noise of the market so that they are not tight enough to get stopped out during 'normal' trading. This means being prepared to give up a significant portion of a winning trade's open profit and is the thing that makes this so hard to implement. In fact, we should be adding to a winner and widening stops rather than working out how tight our stops can be to capture maximum profit. The trade has already shown you that it intends to be a winner, and the chances are it is a low-risk idea to add to the position now rather than 'strangle it' with stops that are too tight.
It is very important that your position management rules allow for large winning trades, and that the rules are pre-defined and understood before you place the trade. This will allow you (if you have confidence in your method and discipline) to stick to your rules when you do get the big
winner.
2.4 Cut losses short
This is the sister rule to the previous one, and is usually just as difficult to implement (although it
is very easy to define). In the same way that profitability comes from a few large winning trades, capital preservation comes from avoiding the few large losers that the market will toss your way each year. Setting a maximum loss point before you enter the trade so you know before-hand approximately how much you are risking on this particular position is relatively straightforward. You simply need to have a exit price that says to you 'this trade is a loser and I will exit before it gets any bigger'. Due to gaps at the open, or limit moves in futures we can never be 100%
certain that we can get out with our maximum loss, but simply having the rules, and always sticking to it will save us from the nasty trades that just keep on going and going against our position until we have lost more than many winning trades can make back.
If you have a losing position that is at you maximum loss point, just get out. Do not hope that it will turn around. Given that trades are either winners or losers, and this one is shouting 'Loser' at you, the chances that it will turn around and become a large winner is tiny. Why risk any more money on this losing trade, when you could simply close it out (accept the loss) and move on. This will leave you in a much better place financially and mentally, than holding the position and hoping it will go back your way. Even if it did do this, the mental energy and negative feelings from holding the losing position are not worth it. Always stick to your rules and exit a position if it hits your stop point.
2.5 Never add to a losing trade
One of the few trade management rules that we can state we never break is 'Never add to a losing trade'. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If indeed it is a winner disguised as a loser, why not wait until it shows it's true colors (and becomes a winner)before you add to it.
If you do this you will notice that nearly always the trade ends up hitting your stop loss and does not look back. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very fortunate. Sometimes the trade hits your stop loss and then
turns around and becomes a winner and you can count yourself unlucky. Whatever the result, it is never worth adding to a loser, hoping that it will become a winner. The odds of success are just too low to risk more capital in addition to the initial risk.
2.6 Don't take too much risk
One of the most devastating mistakes any trader can make is risking too much of their capital on a single trade. One thing is certain in trading and that is if you lose all your capital you are out of the game. Why risk so much you could be prevented from continuing? There is a saying in
poker than going all-in (risking all your chips) works every time but once. This is true of trading.
If you risk all your account on every trade it only takes one loser to wipe you out (and no trading method is 100% accurate), so you will be out of the game at some point - it is only a question of time.
In general, we only risk 1-3% of the available capital allocated to a system on any individual trade. This is calculated using the size and, the difference between our entry price and our maximum stop price, and the amount of capital allocated to the system. With the win probability
and ratio of size of winning trades to losing trades we are almost certain never to lose all of our trading capital. In fact, the chance of us hitting our maximum drawdown for the year is tiny.
All trades should be of a size that almost seems insignificant. If you are worried about the size of a trade then it is too big and you should reduce the size immediately. Remember that longevity is the key to making money by trading - slowly over a long time with minimal risk, is always preferable to rapidly with too much risk.
2.7 Only trade positive expectancy systems
If you have a positive expectancy trading system, the only factors that determine how much money you will make per year are the number of trades the system generates, how much capital you allocate to the system, and how accurately you implement the trading signals. If you do not know whether your trading system is positive expectancy then why are you trading it? Expectancy is calculated using the profit or loss on each trade (net of trading implementation
costs) divided by the initial risk (using your stop loss) and then taking the average of this number of a series of trades. Systems that have positive expectancy will make money on average and those with negative expectancy will lose money.
Successful traders only trade systems where the odds of success are in their favor (i.e. the system is positive expectancy) so they know that making money is the result of accurately implementing the system and not just pure luck.
2.8 Minimize all trading business costs
Some trading systems have only marginal profitability, and trading implementation costs (commission, spread, and slippage) can be the difference between profitability and making a loss. With the easy availability of modern electronic brokers, and fully-automated trade processing and
execution, it is definitely worthwhile looking for a very low cost way to implement your trading system. High commission, wide spreads, and large amount of slippage can be reduced considerably simply by carefully choosing a broker. This can be the difference between a system
(especially a high frequency one) being useable or not. Paying too much for trade implementation is an avoidable way to lose money.
2.9 Be educated
In order to compete at the highest level in the trading business and be one of the few truly successful participants you must be well-educated about what you are doing. This does not mean having a degree from a well-respected university - the market doesn't care where you were educated.
Being well-educated means that you have thoroughly researched and tested your trading ideas and know why your trading system worked in the past and is continuing to work now. It means understanding all the technology and applications that your system needs to perform accurately.
It means understanding your goal and objectives and how trading will achieve these. It means understanding yourself and how your personality affects your results. It means understanding the markets and instruments you trade.
In order to succeed you really need to become an expert in your own trading business to understand how it all fits together, when it is broken, and how it can be improved. As with all worthwhile endeavors, this takes commitment, hard work, dedication, and more hard work.
2.10 Don't trade scared money
Lastly, no one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and
leads quickly to disaster.
Trading is about taking a reasonable risk in order to achieve a good reward. The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by
another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.
3 Summary
In this article we have covered the rules that we believe should never be broken in trading. If you work on never breaking them, your trading should improve dramatically. Read More Adverti News...
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