soffit installation grayslake siding companies painting aluminum siding siding replacement crane siding .. Chicago Drug testing

Red, Green, Yellow - or - Stop, Go, Go Very Fast: Which Describes Your Online Trading?

Ever notice how behavior in one area of life can apply to behavior in other areas of life? For example, I've noticed a number of things while driving that apply to online trading. One of them is regarding how people behave toward traffic signals.

In the USA, where I live, all the traffic lights are red, yellow, green - red for stop, yellow for slow down or caution and green for go. The lights always change in order from red to yellow to green and back again to red after a time.

How drivers relate to the changing lights is NOT always the same. There are three types of drivers and responses to seeing a green light:

Type one drivers believe the light will change to red at any moment. In anticipation of the change, they begin to slow down far in advance. I call them "Red Lighters."

Type two drivers know green means it's ok to go. They continue on their present course and speed, making no changes at all as they approach the light. I call them "Green Lighters."

Type three drivers know the light could turn yellow at any moment, so they step on the accelerator to catch up to the light as quickly as possible, not wanting to miss it. I call them the "Yellow Lighters."

Many people apply these same approaches to most of life's opportunities, including online trading. Maybe you do the same thing.

If you see an opportunity approaching, do you slow down, believing that since it won't last you shouldn't be too hasty or you could be stuck in a bad deal? "Red Lighter."

Or, do you see the opportunity coming, and just let it come at its own pace, taking your time and accepting whatever happens when it reaches you? "Green Lighter."

Or, do you rush to it, knowing that it could be gone at any moment so best to jump on it immediately so you don't miss out? "Yellow Lighter."

Each of these approaches has its risks, and its rewards. Red Lighters take no risks, and therefore never "push their luck" by hurrying into anything. On the other hand, what risks are they actually taking by potentially missing out on opportunity?

Green Lighters just want to travel safely and smoothly. They don't mind what happens along the way so they just keep going with the flow of traffic. Sounds smart, doesn't it? Yet, what real gain is there in being "just like everyone else"?

Yellow Lighters don't want to miss any opportunity so will do whatever is needed to capture the potential reward. But how big is their risk in being first?

Each is going the same direction, and could even be in the exact same type of vehicle, but none is actually any more guaranteed to arrive at their destination than the other. The Yellow Lighter will probably get there the fastest, but could also get into an accident along the way from so much speeding. The Green Lighter will arrive safely in a reasonable time, but will likely arrive with the rest of the crowd and never be early. The Red Lighter will probably always be late, and will typically spend so much time on the road that they never get to fully enjoy their destination.

Which are you? Which do you want to be? How do you assess risk and reward in your financial decisions, your daily activities, your life? Like it or not, everything we do every day has a risk and an associated reward.

Getting in a car each day and driving to work carries with it the very real risk of death from a traffic accident, with the reward on the other side of the commute being a paycheck. Everyone must assess the risks and rewards in their life for themselves on an ongoing basis, something that I myself do constantly every day and that I encourage you to do as well. You just might be surprised at the trades you find yourself making unconsciously.

I invite you to notice your trading style and adjust it according to the results you wish to achieve. Being conscious of our behavior patterns and changing them when appropriate can make all the difference in online trading success.

Jonathan van Clute is a full time investor, educator, speaker, and online options and sports arbitrage trader. In addition to his business activities, he is also a musician, video editor/animator, and one of the world's greatest Segway Polo athletes. He can be reached via email at jonathan@PMLinvestments.com and is speaking at an upcoming teleseminar, visit http://snurl.com/vclights for details.

In The News:

Frog In The Pot

You remember the story about the frog that was put... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor.... Read More

Low Expense Ratio

One of the big advertising kicks today from mutual funds... Read More

My Neighbor Got A New Car

I don't know what kind it is, but I saw... Read More

Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips

Day trading is all about making buy and sell decisions.... Read More

Good News?

As the man said, "I've got some good news and... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Making Outsized Returns in the Stock Market - Using the Dow Theory

The Dow TheoryCharles H. Dow... Read More

Inertia

One of the basic laws of physics is that a... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Mr. Market

I constantly hear the talking heads on CNBC-TV, the radio... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

Option Trading Basics

Options trading can increase the profits you make when trading... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Advisory Service for You?

It depends on your level of understanding of the market... Read More

Hedge Funds: the Good, the Bad, and the Ugly

Alfred Winslow Jones started hedge funds in 1949. He was... Read More

An Old Proverb for Investing

"If you don't know where you are going, any road... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

No Load Mutual Funds or Exchange Traded Funds (ETFs)?

If you are fed up with early redemption charges and... Read More

Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??

Well maybe that's overstating it a little, but it's certainly... Read More

Stocks: Understand What You Buy!

"There is nothing more frightful than ignorance in action!" Johann... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

street lights video street lighting suppliers Pete's produce ..
street lights video street lighting suppliers Pete's produce ..