We encourage our investors to trade short term as predictions are easier, risk lower, and amount of time in investment is decreased;however, for those of you who are want to be less involved in the market one can trade long term. We analyzed several stocks in 2008/2009 which have moved sharply from their current levels a few years ago. These two stocks were aapl and bidu which have had strong earnings over the last several quarters which have propelled them to higher highs. The basis for our short term and long term trades is to find fundamental bullish stocks and then a trader will fear the downside much less if he or she is initially wrong on entry. One can always hedge a position in the interim if they believe in their original conviction.
Wednesday, November 16, 2011
Trading and Investing has large potential rewards but there always exists risk whenever one wants to trade and there always exists the possibility to lose money. In order to mitigate risk one needs to understand how to be a risk manager. Sean Seshadri wants student traders to clearly understand the technical setups that work on a repeated basis, but in order to be successful one needs only allocate 1% or less of their account size to an individual trade. All traders want to do well, but the individuals who maintain long term success must be humble and be extremely disciplined. Without controlling a trader’s emotions, Lux Investments can guarantee that a trader will fail if they ignore risk management. Traders have to take responsibility for their own actions and follow their trading plan before they put on their position. Traders need to be consistent in their methodology and to have a system that is better than 50:50, and when a trade moves against you, Sean Seshadri want either novice or experienced traders to stick to their business plan and they will come out on top.
Monday, November 14, 2011
As the market has continued it surge in october it has lifted all markets in general and has had a positive impact in the oil markets which has seen a rise in multi-dollar moves over the last few weeks. A true intraday trader will profit in both long and short irrespective of the overall direction of the market but will have a bias in mind over a weekly or biweekly period. Remember 1 contract of CL requires between 2-5k in a brokerage account depending on who you use. If one is able to make a dollar in a given day that could amount to a 20% return if one uses the higher deposit amount.
Balance of Short and Long Positions by Sean Seshadri
A trader's worst fear is to secure employment as most traders who trade for a living will focus on managing risk first before ever thinking of garnering a profit. The financial markets represent great financial rewards but also have real risk. However, if a trader understands this and trades according to their account size while maximizing profitable trades and cutting losing trades which can occur about 20% of the time. A trader's main problem to achieve consistent gains is fear which can be overcome with experience, trading with discipline, and developing a sound trading plan.
Thursday, November 10, 2011
Seshadri today put forward a blueprint of course for scaling up trading to help stock traders combat expenses. This initiative of this course aims to maximise the chances of getting profits. Sean proposes to provide the best stock picks and more advanced best trading tools on Investing for Solid Long Term Gains.
This could mean traders can use step by step method to help you spot potential winning trades such as Trading indices, stocks, e-minis, commodities, options or forex trade. "This course signals the beginning of a new trading model for online stock traders, and course is a perfect fit for Day-trading, swing trading, position trading and trend trading" said Sean Seshadri, CEO, Lux Investements. "This is a huge opportunity for traders, and we are looking for additional resources to add in this course with extensive information whether the market is up or down.