Vous êtes sur la page 1sur 43

Introduction Pag.

02
Introduction Pag.02

Chapter 1. How does Social Trading works? Pag.05

How does Social Trading works? Pag.06

Chapeter 2. Social Tradings dangers Pag.08


Social Tradings dangers pag.09
Danger 1 Advertisement pag.10
Danger 2 Automation pag.12
Danger 3 Knowledge of the territory Pag.13
Danger 4 Absence of a plan Pag.14
Danger 5 Over signal Pag.16
Danger 6 Investing is not working Pag.17
Danger 7 Under capitalization Pag.18
Danger 8 Overfitting Pag.20
Danger 9 King of finance Pag.21
Danger 10 Relying of the top rated Pag.23

Chapter 3. Martingale Pag.25

The Martingale revealed Pag.27


The Martingale in practice Pag.29

Chapter 4. InvestinGoal Pag.35

What you will find in InvestinGoal Pag.37

Chapter 5. Our winning offer Pag.40

Pag. 1 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Introduction

Welcome and congratulations for downloading our ebook!

Maybe you just came in contact with this new investment reality called Social
Trading, maybe you knew it already, maybe you have already invested for some
time. It doesnt matter, this ebook will be useful.
Social Trading is by far the fastest way that a private investor can use to start
investing.
But what do you mean by fastest?
It means that if you want to, in a day, maybe two, you may have your investment
account ready to go.

Even a person totally unaware


of any notion of Social Trading
(and maybe also of investing),
thanks to a credit card and
the documents, could start investing
real money after just one day.

What does it mean?

It means that many inexperienced people have found themselves, literally from
one day to the next, to face a new challenge, without any idea of what they were
doing.

More importantly, the serious thing is that they were doing it with real money.

That's why we decided to dedicate our first e-book to the most important topic of
all. That is, SURVIVAL.

Pag. 2 of 43
All rights reserved 2015 InvestinGoal www.investingoal.com
Yes, because when you invest, the key thing is not to make money. Of course, that
is the purpose and is very important, but the real important thing is to survive, or
in other words, TO NOT LOSE MONEY, or even better, to not lose them all.

It might seem trivial, but its the first thing to be clear about within Social Trading,
and more generally in investments.


Profit is achieved by giving time to your
investment to generate its profits.

Given this assumption, the first thing to do is to


preserve and protect the capital, so that your
investment will always continue to grow.

We said that Social Trading is the fastest way that a private investor can use to
start investing.
This applies both to the method of entry, and for the speed with which you can
get the first profits.

But here I will not kid yourself. You can start making money very, very quickly, but
if you dont know what you're doing you can, in the same way, lose all you had
deposited in your account.

As you will learn shortly, investing with Social Trading means becoming the
manager of a portfolio in which you will let other professional investors work in
your place.

If you dont know what does it mean and how to become a manager of trader,
then you are running serious risks.

All the content you can find in InvestinGoal are dedicated to this purpose: to make
you become a professional investor, specialized in Social Trading.

Pag. 3 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
With this ebook we want to immediately put you on guard on the main risks you
might encouter when youll decide to try your hand with this tool.

More than the technical and theoretical risks


(about which is dedicated
ample space directly
on the InvestinGoal website),
in this ebook we want to focus
mainly on the psychological
and emotional risks you may
encounter with Social Trading.

In addition, we will put you on guard about the most common traps you could risk
falling into, for simple lack of experience in this field.

Lets start right now!!!

But before we get to the heart of the content, its good to make a presentation
and explain how Social Trading works.

Pag. 4 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
The mechanism of social trading is really simple and intuitive. The revolutionary
idea of social trading is to bring together, through an online platform, professional
traders and private investors.

Obviously, this idea undermines the normal conceptions of investment markets,


which include banks or financial intermediaries interposed between the private
investor and the large investment groups.


With Social Trading you can see directly the
operations of professional traders, talk to
them and make sure that their performance
is replicated directly into your account.

The operation is very simple and its based on the modern information
technologies.

On one side theres the investor (you, also called 'follower'), on the other hand,
the trader (in this case called 'Signal Provider'), and in the middle the Social
Trading company, that connects you through your respective broker.

As you can see from the scheme you can find on the next page, the trader or
traders you have selected enter market orders as they would normally do in any of
their business day.

These orders are communicated by the traders broker to the Social Trading
company which, in turn, send them to your broker, who executes them
automatically in your account.

Once you have chosen the Signal Provider, all operations will be performed
without the need of your presence.

You'll be able to spend your time for other things, having only care of periodically
checking your investment.

Pag. 6 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Con il Social Trading puoi vedere
direttamente l'operativit di trader
professionisti, dialogare con loro e fare in
modo che le loro performance vengano
replicate direttamente sul tuo conto.

In the InvestinGoal course dedicated to Social Trading you can find explained in
detail all the operation of the replication process. Moreover, you will find two
courses about two different Social Trading company:
- Advanced ZuluTrade Course
- Advanced eToro Course
Here you will find all the instructions about how to set your portfolio and how to
manage it.

Pag. 7 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
As already mentioned in the beginning, the most important secret for making
money with Social Trading, as with any other investment, it is to not lose money.

It might seem trivial, but it is the first thing to be clear about.

Profit is achieved by giving time to the


investment to generate other profits.

Given this assumption, the first thing to do is to preserve your capital, and the first
method is to play defense (we'll explain well all the secrets to generate profits and
preserve capital).

First, it is much more useful to understand the potential risks of the Signal
Providers operation, rather than the possible profits.

Many investors, unfortunately for them, do the opposite, being attracted by the
potential profits, while underestimating the risks. A thing not to be done instead.

Would you prefer a profit equal to the 80% of your investment, with a possible
risk of loss of the 50% of your capital, or would you prefer a profit of the 30%, with
a risk of the 5% of the capital?

It is true that 30%


on the investment, despite
being a very good return,
is a pittance if compared
to a return of the 80%.

But if you have to sleep soundly, devoting your time to other activities, with the
required peace of mind, the risk of losing 5% of the capital is certainly more
reassuring than the risk of losing 50% of the capital.

Pag. 9 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Besides the fact that it would give you more room to allocate your capital to other
signal providers, thus diversifying the risk and lowering it further.

So let's see the 10 dangers


that a novice follower investor
needs to learn to recognize
and avoid, in order to start
making money with Social
Trading.

Because, never forget it,


in order to make money you must first avoid losing it.

2.1 Danger 1 - Advertisement


Advertising campaigns, as you know, by their very nature, tend to emphasize the
strengths of a product or service, neglecting instead the weak points. This logic is
also used for this type of service.


Its surprising to note how people do not pretend
that the precise conditions advertised in one spot
occur, for example as a floor detergents, in the same
way they pretend those of a spot of investment to
occur.

Let me explain the concept.

For sure you have seen an advertisement for a floor cleaning product. With just
one pass, made with no effort (probably from a happy housewife in evening
dress), even the most encrusted dirt is removed.
Its clear that this is not a completely truthful representation.

Pag. 10 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
The reality is that the housewife is neither smiling nor happy, most of the time she
is not rigged nor in evening dress, and the dirt does not come off quickly and in a
single pass.

On the other hand, its still true however, that this product really give the
housewife a hand to clean the floor! This dissonance has been accepted by all
who buy the product after seeing the ad.

They dont expect their wife to become prettier, neither to clean the floor with
just a smiling pass with a rag, they know what they're going into buying that
product, despite having seen the advertisement. A bit of the dear old elbow
grease will always be necessary.

Back to us, Social Trading


can definitely give you
the chance to have
return s on investment
higher than any other
financial instrument, you
can definitely do so by
replicating the actions
of other traders, its definitely fully automatic and you can handle even from a
smartphone or tablet, and definitely you dont need the pc turned on.

This being said, you cannot just randomly choose the top 5 traders in the ranking,
and you have solved your problem, without knowing what a lot or a pip is, or how
to size properly an account.

Not that they are unattainable concepts, indeed, the concepts are very simple and
intuitive, but you need to know them. With us you will not have problems in this
regard.

Quickly and clearly we'll give you all the information you need, and well integrate
it all with the tools that will facilitate your analysis and amplify and enhance your
experience with Social Trading.
Therefore, always give advertising the right weight, even in this case.

Pag. 11 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Consider it only as the mean that made you discover Social Trading, giving you the
chance to exploit the potential of this innovative investment instrument.

2.2 Danger 2 - Automation.


Zulutrade and eToro, which are among the best Social Trading companies, are
focusing a lot on the automation of its systems.

Automation is a wonderful thing when it eliminates unnecessary work, but its not
that much useful when it eliminates the work that needs to be done to optimize
the risk management of your investments.

For their part, the Social Trading companies do everything they can to make you
use the service as soon as possible, and give you way to start investing
immediately, even if you lack the basics.

But if you want to preserve your capital, you have to understand exactly
everything that is around you, identifying where and how your money will be
invested, what will occur at any time, for any set up you have implemented on
your trading account.

This does not mean that you have to constantly follow every single development
of your portfolio, but you'll have to necessarily be aware of the possible scenarios
before they will begin to occur.

Therefore, being clear


that theres nothing
wrong with trying
to facilitate the user
experience, you can
be sure that reading
this ebook and
subscribing to
InvestinGoal, you are destined to pass from being a "facilitated investor " to an
"evolved investor."

Pag. 12 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com

You wont spare yourself with curing the setting
of your signal provider, and all the protection
you need to put your capital in safety.

Once you have followed precisely these initial settings, then you can dedicate
yourself to your interests, and the account will work automatically. But this will be
possible as a result of a precise work on the initial settings.

2.3 Danger 3 - Knowledge of the territory


If you decide to invest in Social Trading you will replicate the trades made by
professional traders mainly on the forex market.

So, for translation, you will work indirectly on the Forex market.

I state that you do not have either to be or become a trader.

You will not need


a thorough
knowledge of the
forex market, nor to
have the same skills
of a professional
trader.

However, you must at least know the theater in which the negotiations will take
place. Its always good to speak the same language of the environment in which
you will invest your money, like knowing what a pip is or what is meant when we
speak of standard lots.

They are all resources that will be very useful and that can make a difference.

Pag. 13 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com

Knowing the basics and the terms used in the
forex market will be important when youll have
to evaluate the profile of a trader to make
concious choices.

Several terms will also be used to set up the Signal Provider youll choose to
connect inside your account.

In InvestinGoal theres an entire course dedicated to the forex market. (link)

Its a very easy and fast course, where you can find all the basics that will be useful
for knowing what you're reading when you'll see a profile of a Signal Provider, or
for managing your Social Trading account.

The reason why many follower investors find themselves in trouble with Social
Trading is precisely because they do not have the right knowledge of Forex, the
market in which they are indirectly investing.

2.4 Danger 4 - Absence of a plan


The inexperience, or lack of knowledge, leads many investors to not have a
precise investment idea, seen as an objective of risk and of profit.

By not having these concepts clear upstream, it turns out to be difficult, through
proper settings, to go to recreate the conditions of the account that will allow you
to achieve them.

As you will see, much of the work youll have to do will be of planning and setting
the strategy, and this will be done initially.

Pag. 14 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com

Youll need to have an investment project to be
implemented, that is a plan to use a certain
amount of capital, with a certain level of risk,
with the aim of achieving a certain percentage
of income.

Having established this, you will need to decide what will be the type of signal
providers suited to reach your investment goals, in the manner and within the
time most satisfying for you.

So, youll have to look for them, find them and then connect them in your account
for the replication operations, going to set the lot size, the protections and the
automatisms, that will allow you to have full control on your investment.

As you can see, the work of planning and setting is crucial, and should be done
early and accurately. If you do it correctly, following there will be only the
inspection and maintenance, and you will enjoy the profits of Social Trading.

Often instead it happens that novice investors, attracted by the performance,


connect quickly and without reason one or more Signal Provider, in the hope that
they can replicate their performance on their account.

It happens too frequently, however, that, not having assessed at the beginning all
the characteristics of the Signal Provider, and not having a clear idea of the
investment objective, they get to realize, with the process already began, that the
choices made initially were not optimal.

Thus begins the ordeal of additions, replacements, second thoughts, changes,


etc...
This increases stress, makes them lose lucidity and leads the investor to commit
many errors, as well as do a lot of work in the course of work, instead of just at
the beginning.

Pag. 15 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
2.5 Danger 5 - Over Signal
Greed is a very common sentiment among investors. Its not necessarily a
negative characteristic, but its necessary to know how to use it to your
advantage.

The over-signal is the


phenomenon by which the
follower investor, regardless
of the size of his account,
tends to connect more and
more Signal Provider.

There are several reason:


The curiosity to try a new one;
He has read about him somewhere in some forum;
He was recommended by a friend.

So, for one reason or another, they will use any excuse to connect a new signal
provider without disconnecting others.

If you fall into this trap, at the end you will find yourself with a mountain of signal
providers, hoping to earn daily profits, but without considering the enormous
risks to which you are submitting your account. In many cases, when you will
realize that, it will be too late.


As an evolved investor, you must be able, in
relation to your investment project and the size of
the account, to understand the space you have
available in order to follow the Signal Provider, also
according to their operating characteristics.

Pag. 16 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
This being done, you will need to maintain an iron discipline to comply with the
conditions you have set. Of course you can replace one or more, but you will need
to stay within a precise basket of Signal Provider.

2.6 Danger 6 - Investing is not working


In many cases, investors are attracted by advertisement that, as I pointed out
before, highlights a lot this new investment opportunity.

Those who approaches this instrument are often unprepared and believe they can
make big profits very quickly. A thing, obviously, not necessarily wrong. With
Social Trading is indeed possible.

What we believe to be incorrect, is comparing an investment with a traditional


job.

In many cases it's as


if these investors
thought that following
more signal providers
or following those who
work a lot and have
always some trade open in the market is the right thing to do, because it respects
the logic of "more work means more money."

Nothing could be more wrong. In finance what is certain is this: more operations
just want to say more costs of commissions, but by no means the certainty of
having more profit.

The realization of profits is not absolutely related to how many Signal Provider you
are replicating or to how many operations they do on a daily basis.

Pag. 17 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
In finance you don't work at piece rates.


In the world of investments is necessary to wait
for the favorable market moment in order to have
a return on the investment.

So your choice should be directed towards those Signal Provider that enter at
market when there are the right conditions to make big profits.

The mindset should be aimed at identifying a strategy that, ultimately, brings


profits, not at one that makes the account work more, in the vain hope that this
can be translated into more profit.

Not following this basic rule may also lead you to encounter Signal Provider with
very dangerous investment techniques, called "martingale". We will talk about it
in detail in this e-book and, given the importance of the topic, we have also
dedicated some lessons on the site.

2.7 Danger 7 - Under capitalization


I believe that also this type of problem stems always from advertising about
investing with Forex in general.
You often find information on how the Forex is easy, fast and above all accessible
with a minimal investment.

Again, we confirm all. It's absolutely easy, quick, and accessible, even with a
minimum investment. In some cases it's possible to start with an initial deposit of
$ 50.

Such low deposit gives two kinds of problems: one psychological, the other
practical.

Pag. 18 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Psychological:
As you will realize reading our content and our training, one of the first things we
say is to only invest the capital that you are prepared to lose.

The investment must be done with a calm and relaxed approach. The first way to
do so in this sense it's certainly not to invest the capital that you need to sustain
the daily expenses, but rather that capital reserve that, even if lost, would not
damage your finances.

In many cases, investing a small


amount that you can lose without
problems, especially if of small size,
leads the investor to think, "I put
on the plate $ 200 and I try to
double or triple it quickly, in the
worst case I only lose $ 200."

If your mental approach has to be this, we strongly recommend you try the
nearest casino to your home. You'll be more comfortable, and you will not even
engage in opening an account with a broker.

If you think so, and you have no respect and care of your own money, it will be
very difficult to double it. Viewed on the other hand, it will be much easier to
halve or lose them altogether.

Practical:
The practical reason is related to the fact that little equity allows investors much
less flexibility in choosing more signal providers, in addition to the fact that
definitely gives less error margin and less space to retrieve the error made.

The capital will be exposed to a greater risk, for the simple fact that the
diversification can be smaller.

These are the two main reasons that can knock out an account for the under
capitalization.

Pag. 19 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Of course, you can still start with small accounts. It's not forbidden, rather it is one
of the strengths of this form of investment. What you have to do is learn how to
size the risk according to the capital and understand that with minimal capital, you
probably will not be able to connect all the signal providers you want.


The small size accounts, exactely for the
impossibility to follow different signal providers
and distribute the risk on them by making full use
of statistical mathematical logic, basically are more
difficult to manage than accounts more capacious.

So if you want to start with 50 we dont recommend it. Keep them in your
pocket and paid for a dinner.

2.8 Danger 8 - Overfitting


Overfitting is the practice of optimizing the settings of Social Trading pushed to
the extreme, becoming an over-optimization.

The beauty of Social Trading is precisely the possibility, once you set up the
account in a precisely manner, to just:
monitor the signal providers and verify their operation maintain the historic
values;
withdraw or re-invest the capital earned;
at certain times, manage and optimize certain aspects of the portfolio, replacing
some of the signal provider connected with the new discoveries, that best
represent your risk-return objectives.

We often see investors who are continually modifying the account settings in an
attempt to maximize profits.

Pag. 20 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
I can guarantee that if the initial settings have been made with principle, this type
of management is completely wrong, and denotes an inability to planning and
managing the account, as well as being a dangerous signal.

Optimization anxiety, the fact of always wanting to put your hand on the settings
of your account is not positive. You should relax and enjoy the process.

In other cases, overfitting occurs as a continuous attempt to remedy a negative


operation moments: one for all, allocating more capital to a signal provider in the
attempt to settle a drawdown (loss).


There will always be drawdowns, and you have to
learn to accept them. You'll only have to worry if
they will be superior or very close to the historical
highs, otherwise you have to give your investment
time to make profits, going over the various
negative moments.

Doubling the levers properly set just because some operations were closed at a
loss and you want to recover them at all costs in the shortest possible time is not a
wise action, and exposes the account to significant risks, because it unbalances
the weights previously calculated.

To become an evolved investor, we will teach you to manage your account only
when this is strictly necessary, in order to taste the pleasure of doing Social
Trading. We'll explain exactly what needs to be monitored and when this should
be done.

2.9 Danger 9 - King of finance


One of the main reasons that leads investors to choose Social Trading is trying to
get the returns of a professional trader, avoiding to spend the time necessary to
become one. Strangely, however, it happens to witness some forms of "Hypnosis
by Japanese candle."

Pag. 21 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
In these cases, the inexperienced investor, after several days in which he has
devoted a few minutes of the day to analyzing and monitoring the activities of his
Signal Provider, begins to convince himself to be better than them and that he can
do better than what they are doing .

"I would have done so", "Why in that moment he did sold when instead everything
was about to go up?", Etc etc.

It happens then that they start to manually manage the operations that have
been opened by the Signal Provider, or that they even open some personally.

You have to consider


that the choice you
will make among
the Signal Providers,
will be the result of
your conscious analysis
of their operation. If you
liked the results enough
to start replicating them in your account, remember that these are probably the
result of years of study and statistical simulation, which led the trader to
determine that, in the long run, a stop of a given size is better than another, and a
take profit positioned in one point bring statistically better results than put
somewhere else.


Our advice is:
everyone should do his part!
Make your part, choose the Signal Provider
and follow them, control them and eventually
replace them.
The trader will make its operation.

If you decide to play as a trader nobody can forbids it to you, but surely you will
find better performing and cheaper platforms with which dedicate yourself to this
activity.

Pag. 22 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
2.10 Danger 10 - Relying of the top rated
Almost every Social Trading company has this type of risk. Lets look at ZuluTrade
for example, you can take a look at the home page, in the bottom right corner (for
eToro you can think about the promising investor).

You will find a chart that is called


"Top Traders". For many follower
investors, this was just the chart that
has convinced them to invest with
Social Trading without having the right
foundation.
What does in fact the note on the
chart say?
"Combined top 5 trader's
performance," and we would add
"in a year", with the relative amount
of pips that these traders have gained
together, and the money that you
would have earned if you would had
followed them with a lot (you'll learn all this terminology in the Forex course,
don't worry. Now you just have to understand the danger of this graph).

So, at first glance, a novice user could easily think that by going to the page with
the traders list, and beginning to follow the first 5 present at that time, soon he
will find himself making money like those five traders put together.

We follow the Zulutrade


ranking since years, and
we can assure you that
the top five positions
change very frequently,
often several times a week.

Pag. 23 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
The main reason why a trader usually comes out of the top 5 is because it has
suffered serious losses. But you can not see these losses on this chart, because
that trader now has been replaced by another who has taken his place in the top
5.

This chart is a beautiful illusion. It only and always shows the performance of
those who are first in that moment, but it doesn't show you if who was first
yesterday, today maybe is losing thousands of pips, and you cannot see him
because he went out of the Top 5.

What if I would have started to follow him without knowing why and how, and
now I was losing thousands of pips like him?

There's another thing to say. Unfortunately, the ranking system of Zulutrade and
eToro tend to reward too much those traders that use strategies that have big
profits in the short term, very quickly and steadily.

This type of strategies, bluntly, are very risky. So, if for a short time the strategy
worked, the trader will be found quickly in the first positions in the ranking. But,
as soon as the strategy begins to falter and to lose, because of the risk, the trader
will collapse in the ranking just as quickly.

Now you have clear the danger of relying on the Zulutrade and eToro rankings
without knowledge of the facts, choosing Signal Providers or Popular Investors just
because of an automatic ranking system.


Often, the Signal Provider, to get those types of
performance and quickly reach the top
positions, use strategies called "martingale".

Pag. 24 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
We decided to devote a separate chapter to what we believe is the most common
and insidious danger for a follower investor, especially if novice.

We're talking about those traders who operate with martingale logic. We talk
extensively about that also in the lessons you will find on our website, due to the
importance of the topic.

Frequent:
It is very easy to find this type of Signal Provider when you do Social Trading, for
two reasons:

1. The Social Trading company earn (and thus reward the trader) on the basis of
the amount of open trades replicated by the followers with live accounts. The
martingale traders really open a lot of trades per day. More operations, more
commissions for the Signal Provider.

2. The evaluation of a trader operation style made by these companies, which is


what allows him to climb the rankings, unfortunately tends to reward traders
who have a market approach of this kind.

To tell the truth, we must recognize that at the first error the disqualification from
the first position is just as fast, but by then the damage is done.

Underhand:
These Signal Providers, to the untrained eye, look very good:
very high percentage of winning trades;
profits on a daily basis;
equity line in steady rise without major shocks;
rapid rise of the rankings.

Of course, knowing where to look, they are easy to track down, but for those not
able to recognize them they are real traps.

We don't want to say that the martingale operation is the absolute evil. If there is
a sound business strategy that is supported by a reasoned and not too much
strong martingale, you can get really good results.

Pag. 26 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
The problem occurs when the martingale is itself the only "winning" component
of the traders operations, who therefore does not have a solid, reasoned and
statistically tested strategy, but relies on a formula that wins 90% of the time, and
in the remaining 10% of cases it threatens to blow up the account for having
exposed it too much.

3.1 The Martingale revealed


The tipical equity line of a martingale trader is usually like this.

It's evident a gradual and steady growth of the account capital, nearly a line at 45
degrees. In some points you find heavy drawdown shocks, that most of the times
retrieve are in very short times.

The martingale
operation is
usually
supported,
rather than by a
statistically robust
strategy, by a statistically robust mathematical formula.

Pag. 27 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Let me explain the crucial difference:

A statistically robust strategy aims to achieve a profit result.

Therefore, it usually say:


if at the occurrence of certain market conditions, I behave in a certain way, I get a
profit in 70% of cases, a loss in 20% and in the remaining cases I close the
transaction at break even.
Since is a for-profit strategy, it also says that in the 20% of the cases where I close
the losing position, my losses will be lower than the profits that I have earned
with that 70% of transactions in profit.

This is crucial.


The strategy is built to give opportunity to
the trader of making a profit from the
market.

The pure martingale operation aims however, unlike the previouse one, at the
achievement of a result of profit for each trading setup (by setup I mean
whenever the strategy of the trader indicates that it's time to enter the market).

This will obviously change a lot of the operational logic and strategy of the trader.


The goal is no longer to achieve gains from a
statistically robust strategy, but is to ALWAYS
get profit from every single setup of trading,
thanks to the application of a mathematical
formula.

Pag. 28 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
This moves dangerously the operation focus.

Although always getting profits may seem like a very tempting thing, we can
assure you that in the world of trading the word 'always' does not exist.

If to get this 'always' you have to put your account at serious risk, then it's not a
winning strategy.
Soon we will explain in detail.

On one hand you have a trader who knows that it's not important if some
operation will not go into profit, because he knows that his whole strategy will
make him gain. So, if the open trade does not go as hoped, he closes at a loss and
he gets ready for the next one.

On the other hand you have a trader who tries to be right on every operation he
opens (this is not possible, unless he's a clairvoyant). So, if a transaction goes in
the opposite direction to that which was pictured, he uses the capital in the
account in order to mediate the price, going to open other positions.

In some cases, being some of these mathematical formulas very valid, he manages
to be right on the market. In many cases, however, the liquidity in the account is
not sufficient to put things back in place, and the account suffers strong shocks,
even a margin call. You begin to realize how dangerous a trader who uses a
martingale operation can be.

3.2 The Martingale in practice


Trading operation managed in a traditional way:

There are two possibile scenarios:

1. It gets the target and it collects a profit, as in the first image of the next page;

2. It gets a stop and it collects a loss, as you can see in the second image on the
next page.

Pag. 29 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Trading operation managed with a Martingale logic:

Here the scenarios are always two, but different:

1. The operation goes in profit and, as you can see from the picture below,
the management is the same as the classical operation, it's closed at the
achievement of the target.

Pag. 30 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
2. Things change in the event that the transaction does not go into profit. In
contrast to the classical management, here the operation is not closed, but the
mathematical formula is applied.


The used formulas may be different, they
vary depending on the instrument on which
they operates, and depending on the
strategy being used.

In our example, to simplify, let's assume an operation of the same weight (lot size)
will be open every time the price will go against us of 100 pips.

So, assuming a trade is opened at point A, at the price of 1.2500, when the price
reaches point B at a price of 1.2400, the trader will be with a position in loss of -
100 pips he will not be closed, but Instead, to mediate the price, he will open
another one, that at the moment has a value of 0, so not gaining nor losing.

It goes without saying that, by doing this operation, the loading price is lowered,
from 1.25 for the operation opened at point A, to 1.2450 with the two open trade.

Pag. 31 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
This is because if the price would go up from point B, the trader would gain from
the operation opened at point B, and would lose less from the operation opened
at point A, until he finds a break-even point at 1.2450, where A operation would
be at a loss of 50 pips, and the B one will be in gain of 50 pips.

A trader works in this way


because, once the price
is arrived at B, the path
that should be done to
return to the situation in
which the sum of the losses
and profits of the trade
Is equal to zero, is shorter. Having mediated, then added a trade at price B, that
condition is statistically more likely to occur.

But let's imagine the scenario, not infrequent, when the price, instead of going up,
goes down for another 100 pips, until he reaches 1.2300, the point C. In order to
keep faith with the martingale logic, the trader opens another trade at that price
level. The average entry price at this point becomes 1.2400. It has been lowered
by another 50 pips.

If the price would go up to 1.24 (point B), the first operation opened at point A
would be at a loss of 100 pips, that opened in point B, the second, would be equal
to "0", that opened in point C, at 1.23, would be in profit of 100 pips. So -100, 0
and +100 give us back again 0.

Pag. 32 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
By working this way, it's easier for the trader to close all the positions as soon as a
big enough retracement occurs, even just to make a small profit, because the
average entry price would be lower thus more accessible.

This, however, considerably increases the exposure to the market, and


consequently the risks. If, for assumptions, the price would come down of another
100 pips to 1.2200, the trader would be with 3 positions at a loss, and with a
fourth just opened.

Now I want you to understand what we mean with increasing the exposure of the
account. Let's assume the trader in the first example, the one that don't mediate,
has left the single position going in loss up to the price of 1.21, and then he has
closed it. The result would be an accounting of a loss of 400 pips.
In case the martingale was applied, as in the previous example, we would rather
have 4 open positions. The first in loss of 400 pips, the second of 300 pips, the
third of 200 pips, the fourth of 100 pips, for a total of 1000 pips, more than
double.

Pag. 33 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Is it clear now what I mean when talking about increasing the account exposure?!

Now that you know all this, does it makes sense to jeopardize so much your
account to increase the possibility of closing any position in profit?

Much better to find


traders who have
some robust strategies,
and do not avail
themselves with these
methods, unless the
martingale is used in an appropriate manner.

Pag. 34 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
There are many dangers that a novice follower investor has to know and deal with
in order to profit in Social Trading. A combination of these causes, or even one of
these, it's enough to block the path to success.

If you have already practiced Social Trading, maybe you noticed you have already
experienced some of these dangers. Or maybe you started with the right foot by
finding us before.

Although diverse, and some even difficult to recognize, with minimal but
adequate training you will be able to avoid all these dangers.
But, in reality, we'll give you even more ...

InvestiGoal has been designed to give you


the training and support needed to make
profits with Social Trading.

All our contents are unpublished and professional. They derive from a decade of
experience in the trading world as professional traders, and multiannual as
followers in Social Trading.

We have structured the whole InvestinGoal training in a professional and simple


manner, with a full understanding of the market, and the actors who participate.

We are follower and we are trader, so in our considerations we put both our point
of view, which can not help but being complete, since we have both the
experiences on our side.

All the training you will find on InvestinGoal will be free. At least for the moment.
We don't exclude, given the high level of content and the uniqueness of the
material, that in the future there can be a fee for the non-members.

Pag. 36 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
4.1 What you will find in InvestinGoal
Investing for Dummies course:
This course is part of a package of basic training, designed to give you all the
knowledge needed to learn the logic behind investing and the modus operandi of
an evolved investor. In ten lessons you'll get an overview of the investing world,
the ways to generate income, the most common types of investment and their
characteristics.

Forex course:
Another important piece to understand the environment in which you will move is
the Forex course. The Forex is the market in which the traders you will need to
connect to your account operate. It's not a course to become a trader, but a
course that highlights the key issues for the follower who approaches the Social
Trading. It gives you the fundamental and immediately accessible concepts you
will need to find your way in this market, to understand what traders do and know
how to use many of the elements needed to set up your account, like how to
handle the leverage and protect the capital.

Social Trading course:


One of the last pieces of the training necessary to invest with Social Trading is
precisely a course on Social Trading. We'll tell you what it is, who are the actors,
how the replication process works, the types of Signal Provider with whom you
will have to deal with, what are the expected returns, the mental approaches to
be used and other similar things.

Base ZuluTrade course:


One of the main companies involved in social trading is definitely Zulutrade. He
deserves this record because it was one of the first to create the concept of
replicability of the signals and of Social Trading, when it was still called Mirror
Trading or Copy Trading.

In addition to this, Zulutrade provides a range of tools for the Signal Provider
analysis really valid, accurate and precise.

Pag. 37 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
We have created for you a truly complete course, that explains in detail all the
features and tools that Zulutrade provides you, so that you have the utmost
confidence right from the start with the company that will give you access to
Social Trading.

Base eToro Course:


One of the leaders in the world of Social Trading is definitely eToro. Born later
than Zulutrade, it has implemented a particularly user friendly platform for Social
and Copy trading, paying particular attention to all the social aspect of trading and
the investment world.

Given its unusual approach and simplified access to markets, sometimes lacking in
details of analysis, the course we have created will benefit you a lot.

We will clarify the use of all the tools this society has made available by detailing
every aspect, with the first goal to make you confident about its use as soon as
possibile.

Advanced Zulutrade course:


An advanced course in Social Trading with Zulutrade is available for free for all the
users that will use our affiliates Gold Membership.

You will learn:


The differences between being a manager or a trader;
How to analyze the individual parameters and how to put them in correlation
with each other to get important information;
How to extend the analysis using excel and our advanced software that will
automate it;
How to manage the parameters for the capital security to ensure the greatest
possible safety;
How to use the Advanced Search to be able to find the signal provider you want;
How to dimension an account and how to handle it with the techniques of asset
allocation and fund management.

Pag. 38 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
Advanced eToro Course:
An advanced course in Social Trading with eToro is available for all users that will
use our affiliates Gold Membership
You will learn:
The differences between being a manager or a trader;
The details of two parameters known as Average Size and Exposure;
How to analyze individual parameters and how to put them in relation to obtain
important information;
How to analyze properly the investors DrawDown, also using our program that
will automatically calculate the correct one;
All the types of Popular Investor you will have the ability to copy;
How to use the Advanced Search to help find the investors you prefer;
How to set up an account and how to deal with the techniques of asset
allocation and fund manangement;
How to boost your earnings becoming yourself a Popular Investor.

Tools:
To facilitate you in your analysis and account control operations, we have created
some practical and functional software you can use freely.
They are:
Zulutrade Rank;
Signal Style;
Cash Flow;
Refund;
Analyzer;
MaxDD;
Asset Allocation Master.

Pag. 39 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
As already mentioned, at the moment all our current content are free of charge.
To be able to access some, however, is necessary to adhere to our Gold
Membership.

To get it you just have to open a real money account through our affiliate link.
You have to do what you will normally do to open an account with Zulutrade or
eToro, but starting from our link, as explained in this page.
Find out more

Accessing to our new and valuable professional content is possible and is free, do
not waste time. Click on the button below to activate your real account with
ZuluTrade or eToro and start earning with the Social Trading.

Open Your Real Account!

We are here to take you on this journey.

See you soon!

Pag. 41 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com
DISCLAIMER
This ebook, composed of 43 pages, is intended for teaching purpose only.
It shall not be intended as operational advice for investments, nor as an invitation
to public savings raising.
Any real or simulated results shall represent no warranty as to possible future
performances.
The speculative activity in Forex market or with Social Trading, as well as in other
markets, implies considerable economic risks, therefore anyone who carries out
speculative activity does it on his own responsibility. The Authors accept no
responsibility for any possible direct or indirect damage arising from the readers
investment decisions.

All rights reserved. This book or any portion thereof may not be reproduced or used in any
manner whatsoever without the express written permission of the publisher except for the use
of brief quotations in a book review.

Pag. 42 of 42
All rights reserved 2015 InvestinGoal www.investingoal.com

Vous aimerez peut-être aussi