monkey trade
500 rupee note
Though familiar to many Londoners, the term “monkey” is actually Indian slang for a 500 rupee note, which used to have a monkey on it. When the British Empire occupied India in the 19th century, some Indian slang words made it over to the UK, with “monkey” being one of them.
When most people think of economics, they probably conjure images of inflation charts or currency rates rather than monkeys and marshmallows. But economics is increasingly being recognized as a science whose statistical tools can be put to work on nearly any aspect of modern life. That’s because economics is in essence the study of incentives, and how people — perhaps even monkeys — respond to those incentives. publish When most people think of economics, they probably conjure images of inflation charts or currency rates rather than monkeys and marshmallows.”By Stephen J. Dubner and Steven D. Levitt.
Still have the urge to ride the stock market? Like any potentially dangerous sport, do so with extreme caution.
Practice. If you still have delusions of stock-picking grandeur… do what they do in the stock picking contests and use “pretend” money for awhile, practicing trades while following the results you would be having. Then start and stay small, with an amount of money that you could afford to lose.
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Be realistic. The stock market is merely a socially approved game of luck, albeit rigged more kindly than an all-or-nothing game of roulette. When you purchase stocks or mutual funds, you are not saving or even investing in the most traditional sense, regardless of what you have been told. You are actually using your money to make bets that prices will go up instead of down. The odds may be with you, but you should be very aware that investing is a risky game with no guarantees.
Get an experienced broker or mentor. Beginner’s luck can turn too quickly into large beginner’s losses. Don’t go it alone. Look for a broker or mentor with decades of experience and a good track record of their own investments.
Limit your losses. Set up a stop loss order to prevent excessive losses. Then set up a trailing stop order if stocks begin to gain rapidly. If a stocks starts going down beyond a pre-determined point or percentage or point, the account automatically sells, helping you preventing further losses.
Limit your exposure. Like a weekend in Vegas, if you can afford the take the risk and find fulfillment in the entertainment value of the adventure and the stories you can trade at cocktail parties later, well, who’s to judge? But you wouldn’t take your nest egg to Vegas (hopefully!) — or delegate your portfolio to monkeys picking stocks. Likewise, you shouldn’t rely on Wall Street stocks as a safe, sustainable, or complete investment strategy.
Is your money already in the market?
The great majority of investors with 401ks and other qualified plans have their assets in mutual funds, which of course are comprised of many stocks and reflect market ups and downs. Employee-sponsored retirement programs limit investment options and preclude even common choices such as individual stocks and cash value life insurance.
Want to expand your choices? We can help you consider some ways to limit your risk, diversify your investments and increase your odds for growth. Contact Partners for Prosperity today!
