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


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Tips To Clean Silver Jewelry - A Complete How -To Guide

Silver jewelry is not only attractive but also reasonably priced. In fact a number of men and women prefer silver as an alternative to gold.

For those who purchase silver jewelry may not often think about taking care of it. On the other hand, if you clean silver jewelry it can stay vibrant and beautiful for years and years.

There are a number of different methods that you can use to clean silver jewelry. Of course, when you decide to purchase silver jewelry the sales clerk might ask you if you would be interested in buying a solution that is specially made to clean it. Generally this consists of a plastic bottle which holds a liquid that has been designed to clean silver jewelry. This type of solution works well to clean silver jewelry that doesn't contain gemstones.

One needs to be particularly careful with the gemstones as they can get damaged if placed in one of the chemical solution that is meant to clean silver jewelry. It's sheen can be worn away and after you've cleaned them they will have lost some of their luster too.

One can simply use a soft cloth as another method to clean silver jewelry. For this, one must ensure to rub the silver piece cautiously with the cloth to clear off any dust or residue. This not only helps to polish the jewelry but also to restore its shimmer.

Another option to clean silver jewelry that incorporates both methods are specially designed cloths that have a cleaning solution. One of the benefits of using one of these cloths to clean your silver jewelry is that you can control what the solution touches. Thus if the piece does contain gemstones you can ensure that the solution only comes in contact with the silver. For those who would like to clean silver jewelry in this manner you can find out at your local jewelry retailer about the availability and pricing of the cloths.

You do not need to clean silver jewelry after each wearing. Items such as silver earrings, you may want to disinfect before each use. As for other items, such as necklaces or bracelets only need to be cleaned in case you notice them becoming dirty.

If you take the time to clean silver jewelry, it not only keeps it looking its absolute best but also it extends the life of the jewelry piece. In spite the value of silver being lesser than gold, one needs to take proper care as it is still an investment.

Perhaps you can talk to your jeweler about the best method to clean silver jewelry and with a little time and effort; for sure no one will be able to tell if your bracelet, necklace or earrings are brand new or if you've bought them several years back.

Glen B. Porter provides readers with up-to-date commentaries, articles, and reviews for fashion [http://www.your-fashion-journal.com], recreation [http://www.recreation-and-fun.com] as well as other related information.

Article Source: http://EzineArticles.com/?expert=Glen_B._Porte

If you're a woman who loves Silver Rings check out Silver Jewelry Emporium!

Digital Hearing aids: Why Do They Cost So Much?

The cost of one digital hearing aid can range from $1700 to $4,750 at the retail level. The costs are no doubt high but let's take a look on why digital hearing aids have such a high price tag especially compared to their analog cousins. One of the reasons that digital hearing aids bring high prices is because of all the time that is invested into research and development. Another reason for the high price is that these devices contain miniaturized computer chips, which makes them more expensive. You can always expect to pay more when you are buying the latest electronic gadgets and hearing aids are no different unfortunately.

Don't worry though; deals on digital hearing aids are available to a thrifty shopper. Keep in mind that there is a lot of competition between hearing aid suppliers. Also, the internet is allowing people to get much better deal. It is easy to save money if you take your time and shop around.

We all know that hearing aids are insanely expensive. However, if you look around you will be able to find some low cost alternatives out there. The Cost of digital hearing aids is based on the brand and model of hearing aid and what features it has.

For those people that have already wear analog devices, an upgrade to a digital model will provide stunning sound quality in normal day to day situations. A drastic improvement in hearing of normal everyday sounds is just the start. Where digital hearing aids really earn their money is eliminating background noise. Adjustments can be made without having to mess with the volume control.

The more money you are willing to spend the more you'll be impressed with the detail and quality of the sounds you can hear. If you are willing to get into the high end of digital hearing aids, you will be totally impressed with the things you can hear. Users report that they can hear even the faintest noises, and perhaps the most talked about results are the way these high end models are able to eliminate all feedback. These high tech devices also have a directional microphone which can be directed at the users front which will eliminate any surrounding noises.

If you decide that a digital hearing aid is for you then consult an audiologist. The audiologist will run test to find the degree and cause of your hearing impairment. Digital hearing aids are programmable so don't be surprised if you have to return to the doctor's office a number of times to get the device tuned in just to your liking. It might take some patience on your part but the advantages are very much worth it. Hearing aids are expensive, but you should not cut corners with something as important as your hearing.

Best of luck!


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