the nature of this page is 100% private, and just to share some insights.
starting 2 September 2017 I do provide Trading details on a dedicated project called SwingFish
It can be reached under www.swingfish.trade everything offered is Free of charge. (no memberships or any other fees),
this project is financially supported by EnFoid Pte. Ltd. without any editorial influence over the content created by the firm.
Let’s define Trading
Generally speaking, everything is some sort of trade, if you move boxes, trade financial markets, run a convenience store, it’s all the same!
In all the mentioned scenarios above only one thing really matters RISK!
Selling Banana as an example, your “risk” is defined by the product you are unable to sell before it goes bad.
in financial markets, it’s defined by “when your idea of how things may go not working out”.
as you can see, those things are not too far apart from each other, buying a truckload of bananas hoping you can sell them while standing on a corner with almost no traffic is just asking for taking the loss. so is in trading when hoping for something good may happen to your positions.
RISK IS THE ONLY THING YOU CAN CONTROL IN MOST BUSINESSES!
in terms of trading, Risk can be controlled very precisely which gives a Trader an ultimate advantage.
Using Leverage is a tool, it’s basically credit granted by the broker to you to use the money you do not have.
using this tool wisely, can be a great advantage, and lead to massive returns in a short time, using it wrong can however lead to bankruptcy.
a “real live” example of how to use Leverage.
you buy 100 Pieces of a thing at a huge discount as it presented itself.
once back home you put those items for sale on eBay for a higher price. the difference between what you paid for + expenses and the income created is your profit.
Applying leverage to this transaction is easy: Pay the stuff you buy at the discount with your Creditcard.
once you have sold enough to pay 100% of the credit card transaction back to the bank, you do so.
anything that is left or comes after in sales is 100% profit.
you essentially just made money using the Banks money. meaning your own investment in this transaction was ZERO.
this is how leverage works in the real world, and this is why this is one of the greatest inventions ever.
this practice does however fail when one starts to use more of the credit money than they are able to return in full, and this is exactly where things go bad.
same in Trading, when your positions get too large or create too much of a loss (even not closed/floating) this is when things go bad really fast!
Keeping those two things in mind at all times, and using them just like in any other marketplace, your path to success is going to be much much shorter.