Scroll down to see a list of Internet sites that will provide a free education in money management.
Money management is about understanding ourselves, our psychology, and our attitude towards risk. Investors Internet cannot emphasize enough the importance of investing with good money management, discipline, patience, and the best information.
The majority of Internet sites focus on the direction of the market, methods for picking stocks and stock tips. They advise on picking the time to enter and exit an investment rather than discipline, patience, good money management and the right information.
Even experts’ picks frequently do not behave as predicted. Therefore it is also likely that some of the picks that you make will not work out as planned. You need to remember that picking a stock because you have an entry and exit point is only part of the investment process. Adhering to your investment plan using discipline, patience and good money management is more important, but harder to do, than stock picking. We should learn from experts who focus on how much money could be lost in an investment while new investors look at what could be gained.
The FIFTI™ education, process and information are aimed at profitable investing. The FIFTI™ way to make money in the stock market is to have for each investment, the five essentials:
- right environment for investing
- entry trigger
- profit or target trigger
- stop-loss trigger
- right size of investment.
To learn how to determine these five essentials Subscribers (free) should read The FIFTI™ Process. Premium Members should also read How To Use This Newsletter in the Weekly Newsletter section.
No payment of any kind has been accepted for the inclusion of any Internet site below
The links below will take you to other sites. Investors Internet Inc. does not accept any responsibility for the content of any third party website
When you have explored some of the sites below please give us your comments by sending an email to info@investorsinternet.com
http://www.borsellino.com/ has an article about the five emotional stages of trading – confidence, euphoria, self-doubt, despair and redemption.
http://www.clearstation.com/ in its Portfolio Management PDF in the Education section points out that even experts pick a large percentage of losing stocks, but make money because of their better risk management.
http://www.coldstocks.com/ sums up the major points we need to know about trade management in its Visitor’s Section under Stock Picking Strategies. It enumerates four points: 1) limit losses, 2) put only a small part of the portfolio in any one trade, 3) invest when the estimated reward to risk ratio is greater than 2 to 1, 4) have more than 50% winners. The site also introduces Technical Analysis, options and other topics.
http://daytrading.about.com/ includes articles on Money Management and Discipline in its introductory articles on Becoming a Day Trader.
http://www.day-trading-mind.com/ has a free ebook and a few very short articles that offer useful advice.
http://www.getfolio.com/ has a couple of dozen helpful articles including one titled "Diversification" on money management. It starts that one by saying “The most important aspect to your investing is money management”.
http://www.mrswing.com/ enunciates his money management principles in four easy rules on his The Master Plan page. His rule of selling half of his investment when he has gained 7% or more is a good one and many experts use a similar rule, with different percentages, to protect their gains.
http://www.nybotlive.com/ the New York Board of Trade, has an audio-visual tutorial on “How To Trade Futures”. It deals with discipline, money management, and the psychology of trading which is equally applicable to stock market investors.
http://www.pring.com/ in its Traders Den – Educational Editorials and Excerpts section has several articles on topics such as “Knowing Yourself”, “How to be Objective” and “Staying the Course”, which all relate to money and risk management. It also has a diagram of the six stages of the business cycle and whether stocks, bonds or commodities are the most appropriate investment class for each part of the cycle.
http://www.realitytrader.com/ has interesting observations related to money management in its Position Trading Tutorial.
http://www.schaeffersresearch.com/ has plenty of interesting and educational articles, including some on the topic of money management. One article on money management describes how to win even though less than half of the investments made are winners.
http://stta.server101.com/ has a page of Trading Tips that includes some on managing an investment.
http://www.tradingarticles.com/ has several articles on money management and related subjects. In particular the article “Aiming For The Right Target in Trading” by Walter T. Downs that answers the question “What is the difference between a winning trader and a losing trader?” with 11 observations is worth reading.
http://www.turtletrader.com/ has plenty of brief articles covering a broad range of subjects similar to money management - trend following, psychology and behavioral finance, trading systems and market wizards being among them. In the article on indicators James Bryant Conant points out that money management makes up the bulk of a winning trade system.
http://www.turtletradingsoftware.com/ has more on money management, as well as psychology, newbies corner and other discussion threads. The site also gives away the original turtles’ trading rules.
http://www.walterbressert.com/ has a good article on money management under Free Stuff.
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