http://toms-shoes23.webs.comClearly,toms shoes sale, anyone who trades does so with the expectation of making profits,borse alviero martini. We take risks to gain rewards,cheap toms online. The question each trader must answer,alviero martini outlet, however, is what kind of return he or she expects to make,polo ralph lauren? This is a very important consideration,toms womens shoes, as it speaks directly to what kind of trading will take place,longchamp le pliage outlet, what market or markets are best suited to the purpose,borse alviero martini, and the kinds of risks required.

Let s start with a very simple example. Suppose a trader would like to make 10% per year on a very consistent basis with little variance. There are any number of options available,polo ralph lauren. If interest rates are sufficiently high, the trader could simply put the money in a fixed income instrument like a CD or a bond of some kind and take relatively little risk,oakley frogskins. Should interest rates not be sufficient,louis vuitton borse, the trader could use one or more of any number of other markets (stocks, commodities, currencies,alviero martini outlet, etc.) with varying risk profiles and structures to find one or more (perhaps in combination) which suits the need,longchamp borse. The trader may not even have to make many actual transactions each year to accomplish the objective.

A trader looking for 100% returns each year would have a very different situation. This individual will not be looking at the cash fixed income market,toms shoes, but could do so via the leverage offered in the futures market,longchamp outlet. Similarly,alviero martini portafogli, other leverage based markets are more likely candidates than cash ones,toms cheap, perhaps including equities,Expectations And Timeframe In Investments,alviero martini outlet. The trader will almost certainly require greater market exposure to achieve the goal,discount toms, and most likely will have to execute a larger number of transactions than in the previous scenario,longchamp borse.

As you can see,longchamp shop online, your goal dictates the methods by which you achieve it,cheap toms. The end certainly dictates the means to a great degree.

There is one other consideration in this particular assessment, though,cheap toms,Expectations And Timeframe In Investments, and it is one which harks back to the earlier discussion of willingness to lose,toms shoes sale. Trading systems have what are commonly referred to as drawdowns,occhiali oakley uomo. A drawdown is the distance (measured in % or account/portfolio value terms) from an equity peak to the lowest point immediately following it. For example, say a trader’s portfolio rose from $10,discount toms,000 to $15,toms shoes,000,toms shoes, fell to $12,000,occhiali oakley, then rose to $20,000,borse alviero martini. The drop from the $15,longchamp borse,000 peak to the $12,ralph lauren milano,000 trough would be considered a drawdown,oakley radar, in this case of $3000 or 20%,louis vuitton outlet.

Each trader must determine how large a drawdown (in this case generally thought of in percentage terms) he or she is willing to accept,cheap toms. It is very much a risk/reward decision,oakley radar. On one extreme are trading systems with very,longchamp prezzi, very small drawdowns,occhiali oakley, but also with low returns (low risk – low reward),abbigliamento online. On the other extreme are the trading systems with large returns,cheap toms, but similarly large drawdowns (high risk – high reward),Expectations And Timeframe In Investments,longchamp outlet. Of course,cheap toms, every trader’s dream is a system with high returns and small drawdowns,longchamp outlet,Expectations And Timeframe In Investments. The reality of trading,toms shoes sale, however,alviero martini prima classe, is often less pleasantly somewhere in between,toms uk.

The question might be asked what it matters if high returns in the objective. It is quite simple,alviero martini prima classe. The more the account value falls,toms sale, the bigger the return required to make that loss back up,discount toms shoes online. That means time,abbigliamento online. Large drawdowns tend to mean long periods between equity peaks,borse louis vuitton online. The combination of sharp drops in equity value and lengthy time spans making the money back can potentially be emotionally destabilizing,occhiali oakley, leading to the trader abandoning the system at exactly the wrong time,cheap toms. In short,vendita polo ralph lauren, the trader must be able to accept, without concern,occhiali oakley, the draw-downs expected to occur in the system being used.

It is also important to match one’s expectations up with one’s trading timeframe. It was noted earlier that in some cases more frequent trading can be required to achieve the risk/return profile sought. If the expectations and timeframe conflict, a resolution must be found, and it must be the questions from this expectations assesment which have to be reconsidered, since the time frames determined in the previous one are probably not very flexible (especially going from longer-term trading to shorter-term participation).

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