investing online

Investing online is the concept of committing capital with the anticipation of a financial return. Even though investing may include short-term stock trading or even day trading, its goal is long term; investors look for a substantial increase in their wealth over time as a reward for locking in their money. There may be a predefined target for investing, such as paying for a child’s education or accumulating a specific sum for retirement. Or, investors may look for a minimum annual percentage rate return on their money, such as 10% or 12% APR. Even if you lack such specific objectives when you start investing, you should make a plan in order to provide a scorecard that tells you how you’re doing. Any plan to invest your money might include a minimum reward-risk ratio that anticipates your winnings will consistently outpace your losses (and you will have losses). At Online Trading Academy we like to use a ratio of 3:1. In other words, we don’t enter a position unless our analysis tells us potential profits are three times potential losses. For example, we might buy a stock at $50 with the expectation it will rise to $65 during a defined timeframe. If it reaches that target we’ll re-evaluate and decide whether to sell or hold for further profits. Meanwhile, we won’t accept a loss of more than $5 (1/3 of the anticipated gain) and we’ll set a stop to sell automatically if its price drops to that level. 81186
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