Your Questions About Successful Trading Strategy

Sharon asks…

Which Job Killing strategy of the Democrats has been most successful?

the threat of new taxes
keeping everyone guessing if their taxes are going up in two short months
unknown new health care costs
threat of much higher energy costs from cap and trade
re-introducing the estate tax so small businessmen and farmers cant pass their operations onto the next generation
huge new paperwork requirements on employees health care
unneeded oil drilling moratorium

Those are just a few I can think of…what other ones can you come up with?
Onlooker how many people would you hire if you ran a small business and had no idea what your tax rate would be in just two months?

What kind of incompetent moron government would wait this late to set the tax rate?

By the way the CBO predicts Obama care will cost trillions extra and there are no savings for electronic medical records because they are already in use in every hospital and MD’s office in the United States. THey have been for years.

John answers:

You seem to have most of their “Greatest Hits” covered. I am astonished to find how few Americans understand the workings of business. Another great failing of our Educational System, once the envy of the World. When are we going to stop listening to College Professors and Ivy League Elitist politicians who have never run a business or worked a day in their lives?

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Mary asks…

strategy?? check this and comment on it?

ok i just read a book by Curtis Faith the best turtle trader… i have been trading for about 3 1/2 years and i found out that me and him use about the same strategy.. What i do is look for patterns on a weekly chart… i see where the lows and high are and make a bet so to say.. i put in a trailing stop order for 3% that way if the stock goes up i make money but as soon as i drops 3% it sells… sometimes i just let it run for a week or 2 as long as it dosent start a reversal in the pattern as soon as it does i short the stock and cover when a reversal is reached but by cutting loses at 3 – 5% and letting the profits run you can be wrong 7/10 trades and still come out ahead… i have been doing this consistantly my average annual return is now 192%! i am up 392.2% YTD before the crash i was up 350% then during the crash my account went down to about 330% and now im up!!! do you think i could become a hedge fund manager with this strategy??? im gonna practice it for the next 10 years and if successful i should have atleast XX millions to start a fund.. but will investors invest in a fund like this??? i mean technically im taking little risks right?? i never put more than 30% of my capital in anyone trade if i did tho i would make even more!!
however im not an ivy league grad im a simple trader with no life LOL
would hedge fund investors love to invest in my fund could i be the next like paulson
but im mostly right like 6 or 7 times out of 10 trades
i do it with real money and as a turtle trader we trade without emotions we dont care if we lose or win as long as we stick to the strategy and cut the loses and let profits run and yes i do it both long and short

John answers:

Listen, good investment returns don’t care where you went to school, neither will your investors. It isn’t a strategy I use cause I rarely short sell. I’m a gutsy holder/trader. Trading on the volatility you mentioned, I’d fall asleep crunching numbers and paying Uncle Sam taxes. I trade 7% of a position on about a 10% price move, history bears out around 50-60% top-bottom cycles. Cash is king. I’ve been trading 20 years, I’m 42, and I’ve made a few people very happy. It’s good to hear someone else be positive and realistic about this downturn.

Sandra asks…

Marketing problem…..Urgent ! Can somebody help me please?

Write one or more paragraphs to explain the market segmentation by using this example of a British painter. Here’s the information.

The experience of a paint manufacturer in England illutrates the strategy planning process—and how strategic decisions help decide how the plan is carried out.
First, this paint manufacturer’s marketing manager interviewed many potential customers and studies their needs for the products he could offer, By combining several kinds of customer needs and some available demographic data, he came up with the view of the market. In the following description of these markets, note that useful marketing mixes come to mind immediately.
There turned out to be a large market for ‘general-purpose paint’ products, The manufacturer didn’t consider this market–because he didn’t want to compete with the many companies already in this market. The other four markets are called Helpless Homemaker, Handy Helper, Crafty Craftman, and Cost-Conscious Couple.
The Helpless Homemaker–the manufacturer found–really didn’t know much about home painting or specific products, This customers bedded a helpful paint retailer who could supply not only paint and pther supplies–but also much advice, And the retailer who sold the paint would want it to be of fairly good quality–so that the homemaker would be satisfied with the results.
The Handy Helper was a jack-of-all trades who knew a lot about paint and painting. He wanted a good-quality product and liked to buy from and old-fashioned hardware store or lumber yard–which usually sells mainly to men. The Crafty Craftman had similiar needs. But these older men didn’t want to buy paint at all. They wanted pigments, oils, and other things to mix their own paint.
Finally, the Cost-Conscious Couple was young, had low income, and lived in an apartment. In England, an apartment renter must paint the apartment during the course of the lease. This is an important factor for some tenants as they choose their paint. If you were a young apartment renter with limited income, what sort of paint would you want ? Some couples in England—the manufacturer found—didn’t want very good paint ! In fact, something not much better than whitewash would do fine.
The paint manufacturer decided to cater Cost-Conscious Couple with a marketing mix flowing from the description of that market. That is, knowing what he did about them, he offered a low-quality paint (Product), made it conveniently available in lower-income neighborhoods (Place), aimed his price-oriented ads at these areas (Promotion), and of course, offered an attractive low price (Price0. The manufacturer has been extremely successful with this strategy—giving his customers what really want—even though the pruduct is of low quality.

This is the information……Help me to explain market segmentation by using this British painter’s case…..Please…..Urgent !!!….Thanks !!!! >..<~

John answers:

You can segment a market based on demographics, geographics, psycographics and behavioristics. Demographics is the most practical, and the most common done by people who don’t want to dig deeper (managers who think they know marketing). Demo includes age, income, job, sex, kids?, stuff like that. Geo is simply dividing the group based on location, such as cities vs suburbs, location proximity to business. Behaivor is based on their BUYING behavior (not actual behavior). Do they buy once a year, once a week, bulk or one at a time, straight from manufacture or from store. Psycographics is the most powerful one to use because it can trigger emotional responses better. Examples are beliefs, lifestyles, political views, etc. The crafty crafsman and jack of all trades would be would be a segment that was determined by this (lifestyles). The couple would be based mostly on demographics (income). Segmenting is just splitting up a group into as many different types of categories as possible, determining their profitablility, and then you have your target market
(assuming it is profitable enough). Like if I was a painter, I could break my market into many different groups (if people say their market is people who need stuff painted, well, they are not too bright). I could target the rich with expensive techniques, or the poor with quick cheap results. I could target the old with traditional techniques, or the young couples with trendy ideas- these were demos. I could target people who live in a certain section of town- geo. I could target homeowners who paint once every couple of years or lanlords who have multiple units and need painters all the time- behavior. I could target people who must have everything nice all the time, want murals on the kids rooms to make them happy, don;t have time to paint themselves, or are really confused when it comes to [painting- psyco. If this was helpful please reply with a testimonial or better yet go to myspace.com/creativecapitalads and put something on there about what a marketing genius I am 🙂 Thanks!!

Donna asks…

Question for successful traders?

When I was new to trading, trading was really exciting, because every market movement seemed to be random and you get excited every time you come up with a new strategy to beat the market. Every new strategy you create fails, and you try harder, and that was fun. Things are getting a little boring now, because most of that market randomness are not so random anymore as I realize that markets move in fixed high probability patterns, and all I have to do as a trader is stick to my rules and trade accordingly and the money will keep rolling in. It feels like a factory job, except you only get a few trades a day. My question would be.. What do you guys do with your life from here on?? Do you guys also find trading to be boring??

John answers:

The only way trading stock is boring and depressing is if your losing money, if your making money then it should never be boring, if it is still boring for you then your suffering from deep depression

Laura asks…

How to reduce risk when trading in any financial market?

I would like to place money in the financial market, don’t know which one yet, preferably one that does not lose me too much money (like in a volatile market), just as a training ground. I would like to know how to reduce your own financial risk, and to protect myself financially? As I understand, there is a feature you got called a “Stop value” that either you or a broker could set. I am more thinking in the way one bets (strategy) in the financial market?

Any help from people who consider themselves successful traders. Thank You for your help and time?

John answers:

Many spread betting companies allow you to ‘practice’ using ‘play money’ (i.e. No real money is at stake …). Unfortunately, because no real money is at risk, you tend to make wild bets, some of which ‘come off’ and teach you the ‘wrong’ lesson (which is that to win big you have to bet your lifes savings ..).

The main reason why you should use a ‘practice’ account is to learn how the ‘mechanics’ of the betting interface & the meanings of the various ‘terms’ they use = once you know what ‘stops’ and ‘limits’ are and how to place them, you can start betting for real. I suggest you start with the smallest amounts they allow … And be prepared to loose the lot for the first few months.

Like all forms of gambling, the ‘odds’ you get depend on the probability of win/loose – the ‘house’ has supercomputers and shed loads of PhD graduate setting the ‘odds’ & you are using ‘gut feel’ plus a balance of fear & greed … ‘fear’ leads you into holding a ‘position’ even when it’s obvious ‘the market’ has gone against you (so you end up loosing a lot more than you should have) .. And ‘greed’ leads you to ‘cash in’ your bets before the market ‘max’s out’ in your favor (so you win less than you could have).

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