Skip to main content

The Odds against You!!

The Odds against You!!

Why do most traders lose and wash out of the markets? Emotional and mindless
trading are big reasons, but there is another. Markets are actually set up so that most
traders must lose money. The trading industry slowly kills traders with commissions
and slippage.

You pay commissions for entering and exiting trades. Slippage is the difference
between the price at which you place your order and the price at which it gets filled.
When you place a limit order, it is filled at your price or better, or not at all. When
you feel eager to enter or exit and place a market order, it’s often filled at a worse
price than prevailed when you placed it.

Most amateurs are unaware of the harm done by commissions and slippage, just
as medieval peasants could not imagine that tiny invisible germs could kill them. If
you ignore slippage and deal with a broker who charges high commissions, you’re
acting like a peasant who drinks from a communal pool during a cholera epidemic.
The trading industry keeps draining huge amounts of money from the markets.
Exchanges, regulators, brokers, and advisors live off the markets, while generations
of traders keep washing out. Markets need a fresh supply of losers just as builders
of the ancient pyramids needed a fresh supply of slaves. Losers bring money into the
markets, which is necessary for the prosperity of the trading industry.

I let you know about commissions
and slippage in further post.Keep reading!!

Comments

  1. Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
    SBC Exports Limited IPO

    ReplyDelete

Post a Comment

Popular posts from this blog

Building Your Go to Market Strategy When you introduce a product or service to a new market, there’s always going to be some risk. Over 30,000 new products are introduced every year, but 95% of new products fail. You don’t want to spend time and resources on a go to market plan that’s going to fall flat. A comprehensive go to market strategy acts as a roadmap, helping you research your market, position your brand, and unveil your new product or service. But before we look at how to build a go to market strategy framework, just what is “go to market” and how do you build a strategy around it? What Is a Go to Market Strategy? So, what does “go to market” mean? A go to market strategy (sometimes called a GTM strategy) is a plan of action that lays out how your company will reach customers in a new target market and gain a competitive advantage over other players in that market. It can also refer to how you’ll reach customers in an existing market with a new produ...

Things you should know before investing in IPO

If you have bought an IPO for the company, you are exposed to the fortunes of that company. You bear a direct impact on its success and loss It is this asset of your portfolio which has the highest potential to reward the returns. On the flip side, it can sink your investment without a sign. Remember stocks are subjected to the volatility of the markets You should know that a company which offers its shares to the public is not indebted to reimburse the capital to the public investors You should weigh up your potential risks and rewards before investing in an IPO. If you are a novice, read up an account from an expert or a wealth management firm. If still in doubt, talk to your personal financial adviser.                                                                             ...

Why Choose Angel Broking

  Why we have to ( I Choose ) Angel Broking.Please go through the below video.(time 2:58sec) https://youtu.be/5429fAjAJS8