How to Pick a Trading Guru in 3 Easy Steps

We love GURU’s, don’t we? I mean, we just LOVE them. In all walks of life we seek out experts in their field to guide us onto the right path for success and ultimately happiness. Working out, romance, money management, debt management, religion, and of course, the topic here today — trading!

When it comes to trading we might love our Guru’s more than anywhere else. Whether self touted or legitimately gifted, we flock to Trading Guru’s looking for help on how to navigate the tricky waters of online trading.

If you’ve spent anytime around the online trading industry, you know that these Trading Guru’s can run the gamut from advice to education to cheerleading to stock picks. These guys can be cheap (free) or expensive (some over $1,000.00 a month) and for this monthly fee they promise to fill your trading account with that ever valuable commodity — cash!

With so many different Trading Guru’s out there and more than a fair amount of snake oil, I thought I’d put together an article describing 3 of the most important things you should be considering when seeking out your trading Guru.

1. Style of Trading

The first thing you’ll want to note is what method or style of trading does your prospective Trading Guru practice. Scalping? Day trading? Swing trading? Position trading? Investing? These are very different and separate trading disciplines, each requiring their own, unique skill set.

As trading is a highly psychological endeavor, aligning your personality to your style of trading is job one. For instance, if you have the attention span of teenage flea playing X-Box then it would be next to nearly impossible for you ro follow a position trading guru who holds trades from weeks to months. It just wouldn’t feel comfortable. Who cares if the guru in question has a killer track record? It needs to feel right for you or you’re not going to be able to follow it.

2. Track Record

Yes, these can be fabricated. Yes, some Guru’s do fabricate them. But if all you have to go on is the actual trades this Guru has made then I would have to say that any track record is better than no track record. And once you’ve looked at a few you will be able to separate the honest from the scam artists. A good Guru, if he is worth his weight in Guru-ness, will have this history readily available and will be willing to share it with you.

Now, when it comes time to view the track record you want to look at two things — Winning % and Average win compared to average loss. Why both of these things? Because a Guru can have a 90% win rate, but if all those winning trades are 2% and his losing trades are -40% then you will have a losing method on your hands and you want to RUN as fast as you can.

Another good thing to look at is frequency of trades. This falls under style of trading for the most part, but if the Guru makes 10 calls a day and you only have enough money to trade 2-3 of those calls then you will not be able to mirror his or her performance.

In reference to track record it’s also important to look at your prospective trading Guru’s recent performance. Have they been on a hot streak lately? If so you might be buying in at the top? Have they been on a cold streak lately? Just like the market, these eventually turn around.

Finally, how long have they been in business. If they have a track record of 15 trades, this is obviously not as good as someone with a track record of thousand’s of trades who’s been in business for years.

3. Cost

“It takes money to make money.” “You have to pay for education.” “Either you pay me or you pay the market.” “Less than one round trade per day.”

These are just a few of the pitches you can hear coming from those ever persistent Trading Guru’s regarding the cost of their services. These services — trading education, tips, strategies, stock picks delivered via Tweet, Text Message, Email — range anywhere from free to over $1,000.00 a month and anywhere in-between.

What you, a potential customer, should be thinking is: with my capital base, can this subscription pay for itself AND still make me money? If not, will it provide me with an education that I can use to make myself money after I cancel the service? If not, what am I doing here?

Let’s say, for example, you have an equity account of $5,000.00. Your guru charges $100.00 a month and offers about 5 trades per week (20 trades per month). You have a discount brokerage that charges $7 per trade for a total of $14.00 for each round turn. If you’re going to take each trade you would have a monthly cost of $380.00 just to trade these picks. $100.00 for service and $280.00 in commissions. That’s a 7.6% hurdle right out of the gate. That’s fine if you believe think your Guru can deliver more than 7.6% a month — but remember, that’s just to break even. And that’s on total equity. Of course, if your account is bigger the percentage cost gets smaller which might make the Guru worthwhile.

So there you have it. my three most important factors to consider when choosing a Trading Guru. 1. Trading style. 2. Track record. 3. Cost.

One other important factor here that’s worth noting is your Guru’s personality. Some are brash and brazen even to the point of mocking their subscribers, some are more of the cheerleading type giving you many whoop-whooop-s and Boooooooom’s throughout the day, and others still are very direct and professional in their approach. Be sure to get one that matches your personality. And above all, remember, the market should be treated with respect at all times. It’s not the lotto and it takes time, effort and commitment to learn. But who knows, with the right online trading Guru, you just might shave years off the learning curve.

Your Business and B2B Marketplace – Buy, Sell, Promote

B2B Marketplace- An alternative name for a comprehensive business directory whose membership is made up of buyers and sellers. Traders often flock to an international business directory (in simple terms, a b2b website) that gives them access to newer and numerous markets than locally available.

Why your Business needs a B2B Marketplace?- If someone offered you an amazing business solution- reliable and 24×7 access to a wide range of prospective trade partners, fully automated and streamlined approach to buying and selling, significant reduction in your buying and selling overheads and an exponential increment in your ROI. Would you take such an option? What kind of business minded trader will refuse such an offer? Membership on a professional business directory equates to all this and more.

Wait, there’s more- Your b2b marketplace helps you avoid huge expenses in setting up a sales and marketing infrastructure, no need to employ a dedicated team of sales professionals nor invest in hardware and software components that help in your Sales and Marketing efforts.

What’s the Problem? – The b2b marketplace operates over the internet. Are you not comfortable conducting business over this media? Note that the internet has leveled the playing field between your business and that large corporation that sells the same products or services as you do. Members of the business directory identify your business for its quality and advantages in pricing. Why say NO to that? In terms of Investment versus returns, the b2b marketplace is your best marketing bet.

Read some Stats; agree with the Facts- Currently, Forester Research estimates that roughly 80% of buyers and sellers utilise some form of online medium to assist them in their Sales and Marketing efforts. Of this, roughly 60% utilize the services of a b2b marketplace. AMR Research expects that by 2014, about $3 trillion in business will be directly affected by b2b marketplaces. What does this mean for your business? You have an established chance, as part of a good business directory, to capture a sizable portion of your overall sales from the b2b marketplace while simultaneously profiting from the likely exodus of your fellow buyers and sellers onto these lucrative platforms.

More Savings, More Profits- Analysts predict that b2b marketplaces will help Companies save anywhere from $180 to $480 billion in operational costs annually. A very easily perceivable difference will be felt by businesses that invest their time and energies trying to perform as part of a good business directory- the losers will be buyers who fail to profit from the choice of lower purchasing rates, and sellers who don’t have the options to sell at higher rates than locally available margins, simply because they aren’t part of the b2b marketplace. Time to move is now!

B2B Marketplaces are here to Stay- The encouraging pointer in the b2b marketplace saga is that its fortunes are directly dependent on the developments in the reach and accessibility of the Internet. And it’s no secret that the ‘World Wide Web’ is growing rapidly to snare more of the World’s people and giving them reliable options to conduct their lives online. Businesses too are serious about their online presence- What business can afford to ignore the greatest universal platform wherein open speech is encouraged, skilled marketing is welcome and all their prospective trade partners and customers are neatly arranged according to individual requirements and availability.

Online Trading Guide – Everything You Need to Know

Online trading offers great benefits to financial investors. The buying and selling processes are very convenient and time-saving. The development of online tools has created an enormous possibility for simplified and effortless business trading online. Transactions are becoming effortlessly available at the very doorstep of an online trader. With an online demat account, all dealings are made possible without the help of any stock broker or intermediary. Updates on derivatives, trading of stocks, currencies and other relevant information have become available with just the click of the mouse.

To start up an online trading business, one should first create an account. Online trading guides always suggest novice traders to first get hold of accounts from reliable and official trading portals. Such portals would then require the trader some the authorization contract on doing trading. Upon accomplishing this contract, certain conditions would be required from the prospective trader. These conditions include sets of rules and propositions that should be agreed upon by both the trading portal and the trader. After all the formalities, the person is then allowed to start trading.

Online trading portals have servers that track relevant trading exchanges. Such tracking makes trading guides updated even to the specific timing of the exchange. This then enables the user to easily gather information regarding market movements. Business then becomes easier to deal. Simultaneous information gets handier for reference of the traders.

More so, the person gets updated with numerous facets of the trading business. Minute by minute updates on the changes of the sectors also adds to an advantage. Thus, in-depth analysis of specific formats and necessary techniques by trade experts becomes more efficient; wherein crucial decisions become less risky for various transactions. The trading process then becomes more smooth and profitable.

Confirmation emails of all transactions and deals are often sent in real time. Such information is sent round the clock to ensure that updates reach the trader just on time for critical changes or decision making.

There are various services that trading guides provide. Most of them include assistance in derivatives and equity trading, stock trading, mutual fund trading, loan schemes, portfolio management, transactions for commodities and insurance schemes. These are pertinent services in the trading that helps investors be at pace in the business. Trading plans and designs provided are also tailored according to the needs, preferences, and even lifestyle of the online trader.

With a dependable online trading guide, one is never lost in his online trading venture. Profitability of the business is readily realized as the resources show concrete possibilities of financial gain. Needless to say, in the online trading business, what an investor would know depends on his or her aid. The guide should always be like an open book that gets updated every time changes occur. It should be like a trading portal that offers more than just a bank of resources for tools and online information. The guide should continue to keep the business’ progress as changes happen.