December, 2008

I remember the 201k joke very well from the last stock market dive back in 2001-02. It’s a term used for when your 401k gets chopped in half, and it goes from a 401k to a “201k”    It certainly wasn’t used in the 1929 crash, because 401k’s did not exist. Today they very much do exist and are a huge part of people’s financial future and still a great tool regardless of this painful market.   I am not being a dipster here, (a dipster is a term for people that just mindlessly buy any investments just because they are down) I see this market as an opportunity to get smarter about your investing and your finances in general. 

While you’re spending all that money on holiday shopping, don’t forget to consider a couple of year end tax saving strategies for perhaps a larger tax refund or smaller liability depending upon your withholding.

In the years that I’ve spent being an instructor to currency students all around the world, I’ve realized that the names and faces change but the same mistakes tend to happen.

 I think it’s because its human nature to be drawn to the same errors. So let’s talk about a few of the biggest ones so we can “put out a few of these fires” and get you on the road to success in your trading.

 The biggest mistake I see is that traders always say, “How little (dollar wise) can I get started with?” rather than saying how much SHOULD I start with?

 Being undercapitalized is one of the biggest mistakes in any market but particularly in a higher leveraged market like currencies. In my opinion, a trader ought to have at least $2,000 to $3,000 in their account per mini lot traded minimally.