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Saturday, 12 January 2013

SMALL BUT CONSISTENT RETURNS


Most traders always dealing problem with big expectations and for unrealistic returns. Even most of those who claim to have made big returns have only done so in simulated environments or in trading competitions using game accounts where real money was not involved.
For most of us, a safe investment are limited to the rate of return that we can earn on our savings accounts or long-term deposits. The return would depend on the interest rate applicable in each country.
A novice trader usually will puts on a winning trade and gains between ten to fifty percent of his trading account. He forms a belief that, by trading, he can quickly become a millionaire. Indeed, they usually assume a 20% return per month to an estimate of 50% return per month.
But do you realize that fund money managers who were consistently profitable only make money returns of 15% or 25% a year? The key for their success is Small but Consistent Returns.

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