|
Monday, May 25, 2009
What do most individual trader's do wrong? Doing market research during the writing of our book, ChartSmith-Forging Your
Financial Future, we discovered alarming data that cited over 80% of individual (general public) traders lose money in the
commodity markets. At first this number seemed a bit overdone to me...but then I began browsing back
through some of the interviews with top traders in Jack D. Schwager's book, Market Wizards, and it gave me a blatant reminder of why so many individual traders lose money in
the markets.
I'll list a few of the reasons here and when you have a chance I recommend picking
up a copy of Market Wizards at your local book store or you can check it out on our Trader Resources page.
Here's what some of the top traders had to say about
the average trader...
1. They trade too much. 2. They are not selective enough when choosing markets to invest
in. 3. Lack of patience--they force the trade rather than waiting patiently for the right setup. And one more; They're
afraid of losing their money--and it's that fear that causes a chain reaction of other problems in their approach
to trading decisions.
Have a great weekend! Scott
1:40 am est
Wednesday, May 20, 2009
Market Study--why it's important! Here's why we keep saying a little study every day is so important...
Once You Really "Get" Trading, You'll Be Surprised At How Easy It Is To Make Money! ~Larry Levin
To your trading success, Scott
3:26 pm est
Tuesday, May 19, 2009
Truth in Humor?This SNL skit is hilarious--but could there be truth here?
We've seen some scandalous stories in the news this past year about people loosing their life's savings
to unscrupulous "professional" money managers. Many of the wealthy families that were taken advantage
of by the likes of Madoff, Stanford, and Israel III, trusted these men to watch over their fortunes.
It's sad that they didn't take some time on a consistent basis to study the marketplace and gain
an understanding of how money can safely and consistently grow.
Sometimes the mainstream media makes investing seem
like it's too complex for the average individual to make his/her own decisions when in reality just about anyone can learn
to make sound financial decisions if they'll invest a little time to increase their knowledge on the subject. Keep studying every day--even if it's only 30 minutes and before long you'll have a solid understanding of natural
cycles in the marketplace, what constitutes a trending bull or bear market, and how to multiply your investment dollars safely...it's
a lot of fun and it really isn't that complex.
Take care, Scott
12:53 am est
Friday, May 15, 2009
American Love Affair Gone Cold? My first car was a cherry-red
1965 Mustang 280 V8. My dad and I took evening auto body classes at my high school; kind of a father/daughter
thing to restore it to mint condition. I loved that car. This started my love affair
with American Made Cars.
When my husband and I first
met it was a match made in heaven on many levels; one of which being a shared love of American Cars. Scott
drove a brand new, chestnut-brown, special order, F150 regular cab pick-up. What a great truck.
As we started our family the Mustang was sold for a more sensible vehicle, a Jeep Grand Cherokee. When
our second child arrived, the regular cab truck was upgraded to a ¾ Ton Ford Crew Cab. Our family
enjoyed many camping trips in our F250 and overhead camper. As time progressed and camping became RVing;
the perfect tow vehicle was a chili pepper red Jeep Wrangler. Nothing would be better than an afternoon
with the top down, kids in the back, and a picnic in the mountains. Even our RV’s have all been American
Made. Our love affair didn’t
stop there. At work, when offered to choose a company vehicle to use, we insisted on a GMC Envoy.
Scott and I were the only people at our corporate office to drive an American made car. Time moved
forward, our business horizons expanded, and again we needed a vehicle only American ingenuity could provide; a 2005 GMC 2500
Sierra Crew Cab; perfect for renovating houses but classy enough for a night on the town. Then in 2007 gasoline prices were going through the roof with no end in sight. We
knew it was time to park the big truck and purchase a more fuel efficient vehicle. Naturally we instantly
turned to our faithful American Auto Makers… but no luck. We couldn’t find anything that offered
the room we needed, the luxury we wanted, the quality we expected, the fuel efficiency that the economy and the environment
demanded, but most of all at a price that was competitive to foreign counterparts. So we did the unthinkable;
we looked at a foreign car maker renowned for innovation, Volkswagen. They had a wide selection of gorgeous,
fuel efficient cars at 20-30% less than American car dealers. But we still felt loyal to American products
so we farmed bids from every dealer in our area. We explained what we wanted. The closest
match was a Ford Fusion that compared to the VW Passat. They were close on almost everything until we got
to the pricing, the Ford Fusion didn’t even compare with the VW price. Every dealer was the same.
Some didn’t even try, they just said, “Sorry can’t help you.” After 17 years
of American Car purchasing, we purchased a foreign vehicle. My first foreign car is a 2007, metallic black, 2.0 Turbo Wolfsburg Special Edition, Volkswagen
Passat. I’m in love; beautiful car, affordable luxury, great gas mileage. Everyday
it seems I read another news article on an American Car Maker asking for more taxpayer handouts, bailout money needed because
of the “bad” economy. I say it’s not the economy boys; you dropped the ball and the foreign
team was there to pick up the fumble and run it into the end zone. If American Car Makers want my business back, stop reaching into my pocket and start building
better cars. Woo me, who knows, I just might fall in love all over again. Shawna Jones
6:56 pm est
Thursday, May 14, 2009
Welcome from the ChartSmith Team! Thank you for joining us here!
One of our passions is commodity futures investing. We enjoy it and want to share some of our success and learnings
with you.
Everyone has been touched in one way or another by the global economic downturn--but we at ChartSmith
want you to know that the downturn does not have to be "all bad". What's "bad" or "good"
is more an element of our own perception towards the thing or event...It's a choice of how we choose to label the event
that gives it positive or negative power over our attitude and the attitude we consistently hold can and often does have a
profound effect on the longer term unfolding of our life's direction.
The events around us don't
have to dictate to us. It's our knowledge and understanding that empowers us to make decisions that allow us to
benefit from these very events that so many tend to label as "bad".
Our enthusiasm for commodity futures
trading and the cash flow and time freedom our family is realizing from it is continually growing and we're grateful for
this and honored to be sharing this with you. Another thing that is continually growing is the commodity markets
themselves, with literally billions of dollars transitioning through them each day. This is a great opportunity for
people like you and I and our families and friends. An opportunity to benefit financially from our awareness.
It's our awareness of what is going on around us that brings us to the point where we can look at events that
the masses and the media label as "good" or "bad" and we find ourselves thinking "it is what
it is". We can then embrace the moment and begin making progress by using this awareness (as opposed to being fearful,
which does nothing to strengthen our faith), knowledge, and understanding to benefit in the global commodity marketplace--the
"stuff" the world runs on.
With that said, we want to say "welcome" to the exciting
world of commodity futures trading and wish you and yours the very best.
Scott and the ChartSmith
Team
4:55 pm est
|