The Investor's Coach is an innovative system which combines 4 strategic elements to provide highly accurate and reliable trading information. Technical Stock Analysis and Portfolio Management along with Risk and Money Management provide a robust platform for traders.
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Technical stock analysis, developed by Mr A. Charles Dow in 1897, has been continuously refined for more than a century. The basic principle of technical analysis is: all necessary information about a stock is contained in its chart. Other sources of information are unnecessary or even objectionable. Technical analysis examines the charts of the past, interprets them and from these past characteristics calculates the likely |
future trend. Stock prices behave similarly to oil tankers, it is quite possible to get them moving in one direction, but once in motion, it is difficult to stop or reverse them. Technical analysis makes use of this fact: Sell and Buy orders are not given until an up- or downtrend has stopped. The trend is your friend that is the world from a technical analysis point of view. » Read more here |
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Portfolio Management analyzes the composition of the whole portfolio and thus accounts for the correlation of stocks as well. Markets are complexly interrelated to each other. Consequently the fall of stocks in one market segment can result in the rise of stocks in another segment. Portfolio Management |
incorporates these interrelations in order to reduce the risk of the overall portfolio to a minimum. Portfolio Management controls the composition of the portfolio, looking at which stocks are included to what proportion, in order to maximize return and minimize risk of the total portfolio. » Read more here
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Basically the Risk Management of the Investor's Coach calculates the point in time at which it is best to exit a trade. While the other three components of the system Technical Analysis, Money Management and Portfolio Management are mainly concerned |
with determining where and how much to invest. Risk Management is the module that tells the investor when to sell in order to secure made profits and reduce loss. » Read more here
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Each trade on the stock market carries a certain amount of risk. Even if the trade looks very profitable, there is always the possibility of losing money. In a system where winning games have the lead, but losses are still possible (as is the case at the stock market), hefty short term losses could leave the player unable to continue and recover losses (e.g. if too little capital is left for another investment). |
The aim of Money Management is to keep the stock holder in the market and also to prevent them from bankruptcy.
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