Pyramid Schemes
Mar18

Pyramid Schemes

Have you or your friends ever entered a pyramid scheme? I set off explain Ponzi chemes, but felt compelled to write a bit about pyramid schemes as well, since they are both similar in their promise of great returns, and their inevitable collapses. First of all a pyramid scheme is never usually called a pyramid scheme when the idea is being sold to people. A pyramid scheme is a fraudulent investment plan based on a hierarchy. A pyramid...

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Paper Trading – Not for everyone, but it’s for you!
Jan13

Paper Trading – Not for everyone, but it’s for you!

  Paper trading is the practice of choosing and tracking stocks without actually using real money. Some people literally paper trade by writing their trades on paper, while others use paper trading services offered by trading websites. A while back I was going through a few blogs and articles on the subject of paper trading. Some of the writers were for the practice, while others didn’t seem convinced of its practicality. Those...

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Trading in The Zone, by Mark Douglas
Oct29

Trading in The Zone, by Mark Douglas

Trading in the Zone[i] in an excellent book on the topic of discipline in trading. It introduces the importance of setting goals and exit strategies before entering a trade so that you’ll have a plan in place for when things start to “get real.” Mark Douglas addresses psychological impulses and issues that must be acknowledged before entering a field where you have to be your own boss and are responsible for all outcomes. You have to...

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Boomerang, by Michael Lewis
Oct28

Boomerang, by Michael Lewis

What you do comes back to you. That’s what I took as the underlying theme of Boomerang[i]. I’ve tried to throw one a few times myself, but could never get the thing to work. Boomerang highlights the circumstances leading up to and following the financial turmoil of 2008. Michael Lewis interviews people in Greece, Ireland, Germany, and the United States. I found the sections on Greece and California particularly interesting. The...

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Trend Following, by Michael Covel
Oct28

Trend Following, by Michael Covel

Trend Following, By Michael Covel   Trend Following[i] Explains the concept of trend following as a trading method. The book clarifies the idea, for those who don’t understand what trend following is. It goes the extra step of providing a compelling argument for the benefit of using trend following in bull and bear markets.   The book profiles various traders and hedge fund managers who follow this methodology. We can see...

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What Is Trend Following? | Trading the Trend
Oct27

What Is Trend Following? | Trading the Trend

What Is Trend Following? | Trading the Trend What is trend following? Many of us follow fashion trends. In some places, coloring your dog’s fur may be trendy. In other places and times, we follow popular hairstyles. How does one follow a trend? To do this, you see a guy say, wearing a mullet haircut. You take notice, saying to yourself, I like how he combines the short front with the long back. You like it, but not enough to grow one...

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Occupy Wall Street
Oct05

Occupy Wall Street

the past few weeks we’ve seen the “Occupy Wall Street” protests growing in size and notoriety. Occupy Wall Street started with a small group of college students staying in Zuccotti Park, which is located near New York City’s financial district.[i] After numbers exploded, and the group endured 700 arrests in New York last weekend, the hundreds grew stronger in their determination to hold their ground. The movement is said by some to be...

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Helping Your Kids Save Money
Sep25

Helping Your Kids Save Money

Some of us have been blessed with the finances of our parents, giving us a jump start as we entered adulthood. Many of us haven’t. Starting off with a decent nest egg and starting off from scratch can make a tremendous difference, especially when considering the effects of compound interest. When looking at it this way, there are few substitutes for an early start when considering building wealth. As adults, we accept the tools we...

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Be Debt Free (that rhymes!) | Loan Debt
Sep21

Be Debt Free (that rhymes!) | Loan Debt

So, you’ve decided you’d like to trade and invest. Bear in mind, trading is no get rich quick scheme. Unless of course you have that drug the guy had in the movie limitless that allowed him to become a trading genius. You could take months to reach your goals. In the meantime, you may have your funds tied up for a while. This means your trading money and grocery money should be separate. If grocery money is the only money that you...

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Size Matters
Sep11

Size Matters

We’ve already touched on the importance of your account size when I talked about money hungry service charges, but I’m about to beat a dead horse a little more here, and focus on account size alone. Account size is a big issue when it comes to trading.  A larger account gives you more freedom as far as trade frequency. On the other hand, a large account can also just mean more money to lose over a longer period of time if your risks...

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