Some of us may start trading after attending a trading course in exchange for the knowledge imparted by some amateurs or experts. Some people may start trading after reading several books and paper trading for months. Some regard trading as a way of lifestyle, playing the game of who’s right and who’s wrong on the pricing of the securities. Some regard trading as a self discovery journey on how to deal with innate human emotions. Whatever the case may be, all of us began our own trading career some point in life with many different reasons. We have our unique own way of analysis and looking at things differently, not to mention on how emotions will affect our reactions in different market conditions. That is why we always hear people saying that the market is always in a constant flux of emotions. It is a chaotic place where greed and fear prevail. If there is ever a list of the toughest careers in the world, trading has got to be one of them. This is a career that will require your passion, dedication, full focus, discipline, lots of thinking and reading on your part to constantly upgrade your knowledge and trading skills, and most importantly of all, your ability to control your emotions and not let them affect your judgment. Read the rest of this entry »

Glancing through the financial newspapers, magazines and other publications related to investing and trading, you noticed large advertisements of success stories of people becoming millionaires through trading options. You start to ponder for a few seconds and think whether is it for real? The term “option” seems so foreign to you but yet it seems so familiar at the same time. You know you have heard of this term before but you just could not recall where, as you are too preoccupied with the things you are doing. One thing to be certain, the advertisements mentioning these type of financial instruments, are definitely becoming more and more common in the financial publications. You know you definitely have to find out more. Who doesn’t like to have more options to make decisions on what to invest in when it comes to diversification of your own portfolio?

Welcome to the world of derivatives. Options is just one type of derivative. The term “derivative” means that each kind of financial instruments classified under its category, do not have intrinsic value of their own. Read the rest of this entry »

When i first started out and was exposed to the world of trading in the year 2006, the first most important thing that i was being told repeatedly by experienced traders, was to never trade without a plan. “Trade without one, you are just a naked soldier in the battlefield without your armor”. Read the rest of this entry »

Every now and then, we hear some juicy news about a certain company making huge profits or about to liquidate, that is filing for bankruptcy. These juicy information can be found anywhere on line, from forums, chatting channels to the occasional spam emails we receive …etc While in the reality world, such news are also available in wet markets where housewives flock to, to casual gossips between people at food centers and even a simple conversation between you and the cab driver. The question is, how accurate are these hot tips? Are they reliable? Should i invest now in case i miss out on making huge potential returns to my portfolio? Well, there is no definite right or wrong answer to them. Why? Read the rest of this entry »

The life changing book that has been a personal finance best seller for over a decade written by author Robert T.Kiyosaki. This little book has changed the lives of many people and their perspective on money, who are in misery, not knowing how to make ends meet due to lack of financial education. Read the rest of this entry »