The Bull Hunters Guide

Hello Fellow Bull Hunters,

Today I want to establish some of the reasons why we even choose to trade on the Stock Market. I would first like to share with you an opinion from one of my mentors, 21st Century Academy presenter Nik Halik, who if you have had the opportunity to see in a live seminar always asks the question Why does the Stock Market exist?

The answer is simple:
It’s to transfer wealth from the uneducated to the educated

Primarily, trading is a good way to produce a cashflow. When we trade the financial markets we create short term profits or that is our aim. I am not saying that every trade will produce profits, sometimes they will be donations. By donations I mean a loss. Using this terminology sounds better for our psychology. This is something that Jamie McIntyre taught me.

Bull Hunters, with any trading there are risks involved that need to be managed and you must be aware of what these risks are. This is the single biggest reason that keeps many of us away from the stockmarket. There is no point in having all your capital tied up in one trade. It is always a good idea to divide what money you have set aside for trading into equal parts so you may have a few trades, or no trades, going at the one time. This minimizes your risk and spreads the opportunity around.

For example, if you had a trading bank of $20,000 to start with, you could divide this into 10 parts of $2000 each. Therefore, only $2000 would be spent on each trade. Or if you want to be more conservative, divide it up into 20 parts of $1000 each.

When we minimize risk and maximize profits, we will make additional income and create wealth.

Jamie McIntyre is also a big believer in setting goals. It is always a good idea before you begin, to establish some goals and also write a list of what your expectations will be. Make a commitment to yourself to continue with your education and to set aside a time for trading everyday. Whether it be to do some backtesting of stocks, doing some paper trading, or educating yourself on technical analysis. Whatever it is that you choose to do, make the time count.

I look forward to your comments so that I know that you got it and tell me if this article was helpful for you. How are you going to use this information? Tell me what you are aiming for.

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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This entry was posted on Thursday, March 8th, 2007 at 2:34 pm and is filed under 21st Century Academy, Cashflow, Jamie McIntyre, Paper Trading, Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.