Long-term Investment management, WinAccounts

There are many reasons for unsuccess of the vast majority. Wrong assumptions, analysis and following decision-making procedures. The lack of professional approach. Emotions, especially fear and greed. Ignorance of any kind. Desire to make money fast. Desire to have the Stock Exchange as a source of regular income. Risk-taking, hazard, lack of mental qualities and many other reasons. We are glad, that this majority of unsuccessful speculators exists. Someone has to give money into markets. But why should we be the ones... One of the main reasons of unsuccess is a misunderstanding of tke fact, that investing on Stock Exchange is a type of business. Businesses need visions, goals and planing. Furthermore, they need rules, methods, accounting, controlling... This is really underestimated by all amateur traders.

10% of winners on the Stock Exchange take it all. They differ from losers just by knowing how to put vision, concept, system and approaches to their business on Stock Exchange. They plan their cash-flow, have their risks under control. Risk little to be able to earn money steadily and for a long period of time. Rich people don"t make high bets. They don"t trade because they want to have the Stock Exchange as an occupation and a monthly source of income. They usually understand the Stock Exchange as an investment process. They use the accumulation of profits to capitalize their accounts with a possibility to increase the capacity of trading still with the same low risk. Winners take trading on Stock Exchange as a long-term business.

Concept of WinAccounts.

Demand to have your real accounts on Stock Exchange as a Win accounts. WinAccounts concept is a concept of long-term profitable Investment management on the Stock Exchange with the possibility to use a financial leverage, and especially with the possibility of compound interests. Compound interest enables increasing of trades from already earned money with maintaining the same ratio of trades to the current account size. It works with the same level of risk. One can even open new positions (trades) on the Stock Exchange from currently earned money (Equity), without being credited to final Account balance (Balance). Also, it is possible increase trading volumes on the Stock Exchange without using the money as you go along. The money does not even have to pass through the tax treatment (simply, the capital rotates...).

If you want want to earn a lot of money and fast, you have to increase the level of risk (in money or percentage). This can disproportionately increase the risks, cause volatility in Equity on the trading account and make trading unstable. If I accept the concept of safe trading, I work with technologically lowest possible risk (1-5%). This approach enables to have the risks under control and effectively manage open Stock Exchange positions. Trading can become emotionally and financially more stable. This approach enables me to close even more than 90% of positions in the profit and reduce the Loss management to relatively small number of trades. This is the Win approach.

Try to make your own calculations with a calculator in your hand, what are the possibilities, if you manage your speculations on the Stock Exchange long-term by Win approach. With a financial leverage, it is no problem to appreciate a trading account on Stock Exchange by tenths but also by whole percents at one time. Within the Forex, there is no problem, with a leverage of 1:200, to make 1,2 but also 5, 10%... even 50-100% on one trade. More I want to earn, more I have to risk. Big risks don"t have to pay off. By the way, if we make one small trade on the Stock Exchange a day with ambition to earn 1%, it will be an amazing result. In principle, if I want to earn one percent, I adequately risk one percent. It means that it is enough to give only a small amount into trading. Potentional volatility in Equity on account will be adequately small, not stressing. It won"t be problem to hold, compensate etc. any temporary losses. None of this will be possible if you give a lot into trading from the beginning (many Lots = overloaded account = overtading = it won"t be possible to have the risks under control and there will be a problem with management of open Stock Exchange positions). Winners on the Stock Exchange differ from losers by knowing these facts.

Make your own "Case studies for getting rich :-)". Now a couple of theoretical assumptions (practise will be always different, worse or better). Let"s think about 20 trades per month with ambition to earn 0,5% of account volume on one trade (we do that normally in conditions of CFDs and Forex). You risk adequately little, let"s say 0.5, 1-2% of account volume. Let"s think about continuous 80-90% success rate. Then the real appreciation of an account is 4, 5 even 8-10%. 4 percents may seem little for someone. Especially for beginners with small accounts, which want to make a living from the Stock Exchange (and then literally eat up their profit potential). In the context of 1 year, it is 60 % p.a., which would be great result, which would make financial insitutions or Funds to drag you. Try to calculate potentional result e.g. in the horizont of several years...

Take your calculator and calculate, how much would you make in 7 years, if you would appreciate you account by 8% every month. It would be about 100% in a year. On twice as large account you could trade twice as large number of Lots, with twice as large efficiency. And you could work with the same relative risk. Risk stays, money grows twice as fast. The second year, again 100%. In the third year, you could work with four-times larger capital within the same risk...! That is the principle of using the compound interests in investment. How much would it be in 7 years? Approximately 128 times more. Out of 10 000E EUR - 1 280 000 EUR. Totaly great amount. Out of 25 000, within the same counting, you would reach 1 million EUR in about 5,5 years. In 7 years, it is 6 400 000 EUR. It is certainly worth concerning to add the principles of safe trading and compound interests into the concept of long-term profitable Investment management. Especially, if the investor is legal entity owned by you in more tax-friendly country with ongoing taxation of zero :-). But that is a different issue, if you are interested in it, contact us. We will advise you...

You think it is just a theory? Yes, it partially is. Development in Equity on trading account will be always different. Sometimes, the profits grow faster, sometimes slower. It is also necessary to count with losses. Losses in this case need to be considered as certain "costs" into business. What is important is the concept, idea and realization. Only 10% of winners on the Stock Exchanges, or maybe even less, can think about their investments in the long term and with the view ahead. The vast majority of speculators can"t see beyond the tip of their nose. Where will you belong?

Speculation on the Stock Exchange and long-term ivnestment management is the only business in the world, where it is theoretically, legally, techologically, easily, without any additional costs, marketing, taxes etc., possible to earn 128 times of the original capital in 7 years, from 10 000 to 1 280 000 EUR. The numbers are just theory, the practise is always different. But just the technologicall availibility is quite tempting. It takes just the Win approach and building your WinAccounts on Stock Exchanges :-).