kingkitty

What is a Profit Factor: it is simply defined as gross profits divided by gross losses. That’s it in a nutshell, but sometimes the simplest things hold the most value. So let’s imagine your trading system’s gross profit for the past year was $40,000 and your gross losses were $20,000. Your Profit Factor would be 2. ($40k / $20k = 2). The formula is simply giving you a reading as to the difference between your system’s gains as opposed to its losses. A Profit Factor above 2 is outstanding. Obviously, the larger the number is, the better. For example: a Profit Factor of 3 means your net gains were 3 times greater than your net losses, and anything above 3 is unheard of. Do you now see how important a component Profit Factor is when devising a valid trading system? This information can literally make or break a strategy and should always be considered before trading. Here’s an assignment for you: go back and research your current trading strategy and figure out its Profit Factor for the past year. You should shoot for a number above 1. The closer your number is to 2 the better, with anything above 2 being excellent.

Join now or log in to leave a comment
kingkitty

Note to self: how ever next time i think buy just after the stock gets above the .50 AS CONFIRMATION mark as sometimes, these stocks just wash out further below THE 5 min pull back which may seem like resistance, its super annoying as it breaks through risk and then corrects ryt after stopping out, which is trash

Join now or log in to leave a comment
kingkitty

after 3 years of failing, and blowing up my accountS, i think this maybe it, i think i finally have a good idea of what im doing

Join now or log in to leave a comment
kingkitty

One thing that should be noted about trading stocks is that the world of Wall Street is actually worlds away from what stock traders earn in other parts of the country. Those who work on other stock exchanges, including those in San Francisco in Philadelphia, tend to earn about half as much as their Wall Street counterparts. Salary.com pegs the lower 10 percent of stock traders’ salaries at about $43,200 per year. Those in the middle 50 percent earn a slightly higher salary, often around $57,600 each year. The highest earners nationwide, on average, take home $66,600 per year. Those numbers are nothing to sneeze at, since they’re between $10,000 and $20,000 more than the median American wage. Even so, they pale in comparison to the wages earned by those who work in the country’s foremost stock exchanges, including the New York Stock Exchange, the NASDAQ, and Standard & Poor’s. Wall Street Salaries: A Bubble All Their Own There’s a reason that each stock trading opening on Wall Street attracts not hundreds, but actually thousands, of highly qualified applicants: The median wage for these positions starts at about $134,000 per year. That salary is often paid to traders who are less experienced and newer to the field. For those who have been in the industry for quite some time, salaries easily average about $224,000 per year. The top 10 percent of traders who work on Wall Street have salaries that approach $300,000 per year. That’s nearly 3 times as high as the median executive wage according to the Bureau of Labor and Statistics.

Join now or log in to leave a comment
kingkitty

Traders and Portfolio Managers are two career choices within the investment field. Traders and portfolio managers both deal with stocks, bonds and other investment vehicles, but they do so in very different ways. Traders work for themselves or for a company to place and monitor trades of individual securities, whereas portfolio managers work to develop strategies that allow them to maintain profits or to develop profits over the long term. What a Trader Does The job of a securities trader is to buy and sell investment vehicles, either for a short term profit or on the advice of a portfolio manager. The vehicles that are bought and sold may include stocks, bonds, futures, options, currencies, or other types of securities. The trader may place buy and sell trades very quickly, often many times a day, or may buy and hold the securities for days or weeks. What a Portfolio Manager Does The goal of a portfolio manager is to select a set of investment securities that will provide income for a client over a long period of time. The portfolio manager wants to be sure that the portfolio maintains its value, and if possible increases value over time. The portfolio manager will choose from a variety of investments, but normally will focus on stocks, mutual funds, and bonds. Differences between a Trader and a Portfolio Manager The differences between the trader and the portfolio manager include differences in the timing of trades, the number of trades, and in some cases the focus on risk versus reward. Traders are often primarily focused on reward. They want to be sure to make a profit quickly for the client. They will get in and out of trades fast, sometimes on a daily basis, to be sure to seek out all possible profits. Portfolio managers work more slowly. They do a lot of research on their investments and may only trade several times a year, as they rebalance their portfolios. What Traders and Portfolio Managers have in Common Both traders and portfolio managers must be able to select investments wisely and carefully without letting their emotions get the best of them. They must be informed about the products that they are buying and selling and be ready to accept some losses. Both traders and portfolio managers must understand basic principles of supply and demand and economics. Trader or Portfolio Manager Whether you will prefer to be a trader or a portfolio manager will depend upon your energy level, your emotional state, your personality, and your goals. A person who is comfortable making quick decisions, who is ready to be on the job every minute, and who can focus from second to second without getting flustered will make a good trader. A person who is comfortable researching different options and making decisions that will take time to play out will make a good portfolio manager.

Join now or log in to leave a comment
Page
of 1