Neural networks mathematical functions

Tough Lessons on Money Management in Forex Trading
forex 18 Tough Lessons on Money Management in <strong><a href=Forex Trading"> Beginner Forex traders often blame the market or unpredictable events for why they have come up with a loss. However, put an experienced trader in the exact same situation and dealing with the exact same currency pair, and the trader is likely to come up with a profit. The difference is that the experience Forex trader knows how to manage money. Unfortunately, money management habits are something which most Forex traders neglect.
The reason that money management is so important with Forex trading is because a small loss requires a larger gain in order to recoup. For example, if you lose 25% of your equity, you would need to gain 33% of your equity just to recoup the loss. If you lose 50% of your equity, then you would need to gain 100% of your equity just to recoup the loss! By the time you have lost 75% of your equity, you would need a 400% return in order to recoup your losses. Despite the reality of this situation, it is common for traders to ignore money management techniques and lose their entire Forex profits in a few bad trades.

Source: FOREX Daniella*

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Stock market analysts on trial

2002-02-09 14:24:25 by on-trial

The amount of poor and self-interested advice that is being issued by brokerages and their analysts. To this day, the majority of stockbrokers are compensated on the number of trades their customers make, not on the returns they generate for them or on the quality of the advice they provide. We believe that the price targets and analyst ratings are made with several masters in mind, none of whom are the individual investor. In a similar fashion, sell-side stock analysts are generally compensated based upon the overall profitability of their firms, not the quality or accuracy of their analysis. In the end, analysts have minimal structural incentive to be accurate in their predictions; rather their built-in incentive is to be as favorable to their corporate clients as possible. It is a...

Gurus' Results Stay Consistently Bad  — Forbes
Investment gurus make their money selling market predictions, not following them. Their overall performance has been historically and consistently dismal. Why people pay for market predictions is a one of Wall Street's biggest mysteries.


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