6 Myths that Weaken Your Trading Profits
No commentsBy Bruce Shaw
Below you will find the six common beliefs followed by the bulk of traders - and if you believe these myths as well, then they will restrict your chances of making significant currency trading profits.
Ninety percent of currency traders believe at least one or more of these myths - which explains why ninety percent of traders don’t make much profit by trading currencies!
1. You should always be in the Market in Case you Miss a Move
Traders love excitement, and their view is, if they are in the market they may catch the big move. Well they may - but chances are they won’t.
The big trends only come a few times a year in each currency - and you should stay out the market until they come, otherwise you will take losses, and run up commissions that will deplete your account.
Wait for the big trades - patience is a virtue in trading.
2. Diversification Reduces Risk, and Increases Profit Potential
Diversification simply dilutes your profits.
You hit a big move, and your other trades that lose, or give you only marginal profits, eat up all your currency-trading profits.
You need to have confidence to go for the big moves, when they occur, and load up these trades.
Currency trading is about calculated risks - if the trade looks good, hit it hard for big profits.
3. Day Trading is Better than Long Term Trend Following, as it’s Less Risky.
Many brokers spread this myth - and why not? - They make more commission if you believe it!
You will end up having more losses than profits in your trading. You will never make enough money in a day to cover your inevitable losses. When you add in commission and slippage, it’s inevitable that you will lose.
You need to hold longer-term trends, as these yield the big profits to cover your smaller losses.
4. Timing the Market is the Correct Way to Make Profits
Timing the market means you are trying to PREDICT where prices are going to top and bottom - this is not a good way to trade and the odds are against you.
A better way to trade is to wait for the market to CONFIRM a trend is under way, and jump on board. You may not buy the bottom or sell the high, but you can catch the major chunk in between - and with currency trends lasting for many months or years, you can still get plenty of profits from the trend.
5. Markets are the Same Today as they Were Hundreds of Years Ago
Rubbish! Trends now are much more volatile than they were even 50 years ago. Why? Today, with the Internet, price information reaches every corner of the globe in a split second. This increases volatility as everyone has the same information at once - and everyone tries to enter the market at the same time.
This was not the case even 50 years ago - the trends are still there, but volatility is much higher - traders get the direction of the trend right, but they find themselves stopped out by the volatility. How often has this happened to you? - It happens to all traders. Look at using options to give you staying power.
6. You can use a Black Box System to Make Money
You can buy a system from a vendor for a few thousand dollars - and it can make 50 to 100% profit per annum.
These systems normally have a hypothetical track record - and use price information where the results are already known, and of course, the logic of the system remains hidden from you - as it’s unlikely to have a sound basis.
Have you ever wondered why these vendors sell systems, when they could simply get a bank loan and trade their own systems?
Enough said on this one!
How about some Positive Advice?
If you want to make big currency trading profits, you need to do it for yourself.
Get a plan you have confidence in, and execute the plan with discipline - and have the courage to trade for large gains when they occur.
Good luck!
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The Benefits of Attorney Marketing
By Mason Hinton
Attorney marketing can encompass a number of areas. You might have a media campaign; direct mail, educational marketing, PR, Internet or you might focus your legal marketing on building a referral network. Whatever your attorney marketing approaches, you can focus, assure and enhance your positive results with an effective weekly planning meeting and appropriate delegation.
If you start out attorney marketing without any sort of direction or plan, it is also likely you will be wasting money, right? In target shooting it is “ready, aim, and then fire - so too with attorney marketing. Well, the trick is to continue this thinking throughout the marketing life of your firm. The need for focused lawyer marketing does not run out like a warranty. The marketplace, strengths, weaknesses, opportunities and threats of your circumstances change over time and so should your legal marketing stance.
How To Do An Effective Weekly Planning Meeting:
Each week, it is imperative that you sit down with yourself and some paper and get focused on your lawyer marketing. This is your time to think about the practice and where it is going, to consider your mission and goals and what you can do to make them real, and to take a good look at the status of your attorney marketing.
The meeting itself should be scheduled on your calendar as at least a thirty-minute block of time. You should have no interruptions and be able to hold the meeting each Friday towards the end of the day or perhaps early Monday morning. Out of this meeting, you will come up with a fully prioritized to do list as well as a clearer picture of where the practice stands and what you need to do to meet the long term goals of the firm, in your personal life, and in attorney marketing.
How to Make/Prioritize Your Empowering List:
For the first part of your meeting pull out your firm mission and 1, 5, 10-year goals (if you have them - if not do make them) and review them. Next put something on your “weekly to do list” that will further at least one of your firm one year goals (you can put more of course). Next, put down the items of all types that must (or it would be best if completed) get done during the upcoming week. Now, for each task, you need to rank it using the letters A, B, and C. To do this ranking A = important and must be done by a lawyer; B = less important and does not require a lawyer (although you personally might have to do it); C = not very important and does not require a lawyer (although you personally might have to do it).
Next, among the A’s, rank each item with either a 1, 2, or 3. The items marked with a 1 must be done within two days. The items marked with a 2 must be done in three to five days, and the items marked with a 3 can wait until next week if necessary. Do the same with the Bs and Cs.
For example, if you have some attorney marketing task that needs to be done by Monday, then you would mark it an A1. If you have a client that needs specific information from their file by Friday, you would probably mark it a B2 and delegate that to a paralegal. If you have a doctor’s appointment on Friday it would also be a C2 since it does not require a lawyer but you need to do it although you could reschedule it if necessary.
Delegating Tasks:
Delegate any tasks that are B or C level of importance if you possibly can. If you can’t delegate it ask yourself why? No staff? Not enough staff? Not trained the staff? Staff not effective? Fix these issues so you can delegate. Create a form to use that you can give to each team member. Include the following information for each task:
Today’s date
Due date for task
What is to be done
Who is responsible for this task
Why the task is important
How often to report to you on progress or status
Further instructions
The goal here is to stop doing as many B and C tasks as you possibly can. You make your money doing things lawyers do (associate, partner and managing partner lawyer things) not other things. This will free up your time to do more A tasks, and you can attend to important matters like growing your practice through attorney marketing. If you have associates now you can do less technical work and do more legal marketing that is the lifeblood of any practice.
You should always keep your marketing goals in mind as you prioritize your list and delegate tasks. The success of your attorney marketing will grow as the skill and effectiveness of your managerial and entrepreneurial time and skills grow.
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