Digg it UP - Finance

Niche Marketing Strategy - Monetization
If you've been following our series on niche marketing, in our first installment, we got started by finding our niche. You can refer back to that article to see how it's done. In this installment, we're going to focus on how to decide how to monetize that niche. In other words, how are we going to make our money from it? This will greatly depend on the niche itself. This article will present a few examples of how to go about this process.Let's start right off with a niche and see how we can go about earning an income from it. Let's for argument sake say that you've decided that you're going to tackle the niche of gardening. Now, in a real case scenario, you wouldn't tackle such a broad niche, but we're going to use a broad one to show you how many different ways there are to make money from a niche.t from my first post. Please note that these examples don’t consider other variables such as slippage, expectancy, commissions, compounding, etc. Please read the book by Van K. Tharp to study the detailed models of position sizing. I will also note that it is very difficult to employ this position sizing strategy with only a $5,000 stake. In my own experiences, I only bought one or two stocks when my portfolio was starting out with less than $10,000. Besides, I didn’t know about position sizing ten years ago!

Example #1:
Stock XYZ is trading at $25 per share
Portfolio size of $10,000
Risk Model of 3% per trade (due to a small account)
The stop loss is 7%

Risk will be $300 = ($10,000*3%)
Amount to Trade at 7% stop: $4,285 = ($300 / 7%)
Shares to be bought: 171

Example #2:
Stock XYZ is trading at $25 per share
Portfolio size of $10,000
Risk Model of 3% per trade (due to a small account)
The stop loss is 15%<

Before Starting a New Website Project
There are currently more than a billion websites on the internet and this is growing at 25-30% per year with more than a million websites being added each month with new content sorting millions of search queries each day.Of these websites on the internet one can quickly see that some are professionally designed and others need some serious refining and fine tuning. As every person should do before a taking on a new website project, a website design needs analysis should be outlined that are specific on the purpose and intent.For example, if the site is meant to be a sales website then appropriate ecommerce applications, hosting and security need to be considered. If the website is an information or “brochure” type website, then less expensive hosting environments can be considered. Once the

A “so-called” investor questioned my trading methods and claimed I would lose 76% if I took 8 consecutive 8% losses. Knowing me, I had to breathe deeply, release the anger from a person who knows nothing about position sizing and teach him a simple math lesson. The following example is simplified to allow you to understand what is happening. In the real world, things are a bit more complicated with commissions, emotions, slippage and the like.

What is position sizing?
Position sizing tells you “how much” to risk on any one trade.

Here I will show you how position sizing can allow you to lose 80% of the time while risking a worse case scenario of 3% equity (I typically risk 1% of equity); yet still come out a slight winner.

If I start with $100,000 and lose 8 consecutive trades at 8% (only risking 3% of capital with 8% stop loss), this is what it looks like:
$100,000 portfolio
3% risk per trade (I am being extreme here to prove a valid point)
8% stop loss

1st Trade:
Risk will be $3000 = ($100,000*3%)
Amount to Trade at 8% stop: $37,500 = ($3000 / 8%)
An 8% stop loss will cost me $3000

2nd Trade:
Risk will be $2,910 = ($97,000*3%)
Amount to Trade at 8% stop: $36,375 = ($2,910 / 8%)
An 8% stop loss will cost me $2,910

3rd Trade:
Risk will be $2,822 = ($94,090*3%)
Amount to Trade at 8% stop: $35,283 = ($2,822 / 8%)
An 8% stop loss will cost me $2,822

4th Trade:
Risk will be $2,738 = ($91,267*3%)
Amount to Trade at 8% stop: $34,225 = ($2,738 / 8%)
An 8% stop loss will cost me $2,738

5th Trade:
Risk will be $2,655 = ($88,525*3%)
Amount to Trade at 8% stop: $33,198 = ($2,655 / 8%)
An 8% stop loss will cost me $2,655

6th Trade:
Risk will be $2,576 = ($85,873*3%)
Amount to Trade at 8% stop: $32,202 = ($2,576 / 8%)
An 8% stop loss will cost me $2,576

7th Trade:
Risk will be $2,498 = ($83,297*3%)
Amount to Trade at 8% stop: $31,236 = ($2,498 / 8%)
An 8% stop loss will cost me $2,498

8th Trade:
Risk will be $2,423 = ($80,798*3%)
Amount to Trade at 8% stop: $30,299 = ($2,423 / 8%)
An 8% stop loss will cost me $2,423

Total loss after 8 trades: $19,201
This loss totals 19% (minus commissions etc…)

TRADE #9:
Risk will be $2,351 = ($78,374*3%)
Amount to Trade at 8% stop: $29,390 = ($2,351 / 8%)
An 8% stop loss will cost me $2,351
**This trade ends with a 40% gain: $11,756 = ($29,390*40%)**

Original amount: $78,374 + $11,756 = $90,130

TRADE #10:
Risk will be $2,703 = ($90,130*3%)
Amount to Trade at 8% stop: $33,787 = ($2,703 / 8%)
An 8% stop loss will cost me $2,703
**This trade ends with a 30% gain: $10,136 = ($33,787*30%)**

Total portfolio worth: $100,266

WOW – a profit with 8 consecutive losing trades and 2 winning trades! That is a 20% winning percentage but it gave me an end result of a slight profit!

This is how money management works! Please realize that I was using extreme examples to stress the important point of position sizing.

Now just imagine have a winning percentage of 40% or greater and cutting some of those losses at less than 8%, your portfolio could easily gain 50% or more in one year with a 40% winning percentage based on simple position sizing!

This is how TRUE investors and traders take money out of Wall Street.

What does position sizing do when you alter the sell stop?

Here are several examples of buying the same stock with a 7%, 15% and 25% sell stop in place with two different size portfolios. The number of shares change but the risk stays the same.

In the first set of examples I will use $10,000 and then $5,000 for the second set of examples. In these examples, I will use the simplified approach discussed by Brian Hunt from my first post. Please note that these examples don’t consider other variables such as slippage, expectancy, commissions, compounding, etc. Please read the book by Van K. Tharp to study the detailed models of position sizing. I will also note that it is very difficult to employ this position sizing strategy with only a $5,000 stake. In my own experiences, I only bought one or two stocks when my portfolio was starting out with less than $10,000. Besides, I didn’t know about position sizing ten years ago!

Example #1:
Stock XYZ is trading at $25 per share
Portfolio size of $10,000
Risk Model of 3% per trade (due to a small account)
The stop loss is 7%

Risk will be $300 = ($10,000*3%)
Amount to Trade at 7% stop: $4,285 = ($300 / 7%)
Shares to be bought: 171

Example #2:
Stock XYZ is trading at $25 per share
Portfolio size of $10,000
Risk Model of 3% per trade (due to a small account)
The stop loss is 15%<

Website Design Mishaps - How to Avoid Costly Errors That Can Crush Your Chances of Success
Designing your website can be a difficult task especially if you decide to do it on your own and you have no experience. There are many websites and web hosts that provide tools to allow you to build your website, but if you have no knowledge of what works and what does not work in web design, you could be setting yourself up for a big fall. Review the following suggestions, implement them into your web design, and forget about being the guy with a badly designed web page.Suggestion #1 - Not Providing InformationOne of the biggest design flaws of many different websites is the lack of information. The best websites have tons of information as well as FAQ sections where you can have the majority of your questions answered immediately without having to worry about contacting anybody.Suggest

8% stop loss