Trading Smarts with the Exchanges
I can’t hide the fact that one way of making money or linden dollars is through the SL Capital Exchange or World Stock Exchange. However, it’s only me who will give you tips on how to trade smart through this exchanges.
Capital Preservation
Most investors and traders would say that their first goal in investment is to make lots of money. Well, that’s not the case for some people like me. The number 1 priority should be Capital Preservation.
It is very important not to lose money. Remember that it is very easy to lose money from the exchanges and VERY HARD to make profits. I bet anyone doesn’t want to lose money in the first place. Also, it will really really take some time to recover what you’ve lost.
Here’s a quote from a popular Foreign Exchange (ForEx) icon: “Investing Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.” – Warren Buffett
Risk Management
According to Grace Cheng, there is risk in doing and not doing everything in life. Risk is something we cannot avoid and something we can just pass through. People tend to think that investing and/or trading is a very risky thing to do. This statement reeks of an absolute bias and contains an assumption. First of all, risk is not absolute; it is relative to the individual undertaking the activity. Second, it assumes that in order to make above-average profits, you must expose yourself to bigger risks.
As for taking big risks in order to make big profits, that may not necessarily the case when it comes to trading or investing. You can reduce risk by aiming for high probability trades that have a high reward : risk ratio, or actively manage risk by monitoring and closing out your open positions if it seems that the market is not going your way. You can even completely avoid risk if there seems to be no good trades.
Just to share, there are lots of risks done in what I do. Especially in advertising Chino Yray dot com. Will I get enough traffic in what I pay? Is my advertising budget and campaign enough for me to recover my expenses? These questions are some of how will I be able to get what I want from the risks I created for myself.
Applicable to first life
These theories are from the tradings in the first life exchanges. Since the concept of profit, losing money and risks in both first and second life are almost the same, they are applicable to both.
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Posted in Business | 4 Comments »
It’s the same in real life. But with money, unlike my sl side, I am not a risk taker. My real money money, therefore, is in deposits.
But I would hightlight that it is currently more easier to operate a rogue financial institution in sl than in rl. Just think of ginko
Well, just like Buaya am not a risk taker.
And I use SL for entertainment purposes only.
It is a good de-stresser for me.
Should i go broke in RL, maybe i’ll consider..^^
In Real Life there are so many tools to help make the decisions in stocks or other trades. It takes the risk factor way down when investing. I am fairly new to the whole idea, but have been investing, and those tools help develop skills you can cross into something like this.
Its so worth it in RL to learn, even if it was just for retirement purposes.
Then take that information and put it to good use on this!
MK…
I would have to disagree ,but Forex Robots: The Good, The Bad and The Ugly! Part 1 : MarketClub … is definately a good read……