Beginner is hoping that good analysis and tons of stock knowledge will serve him a good service. He is stay tuned for searching for effective price movement methods for a long, long time. Day by day; he?s keeping spending time and money. Those of beginners who hold line gets it - there is no common sense Order at market. The market behaves itself quite like what you think it will; but all rest is Pure Chaos. Well, our beginner cannot make effective prognosis. And now he's maturing and he?s not trying to fight this analysis? limitations. He follows plan and he enters market only when it is time for follow plan.

MECHANICAL AND NON-MECHANICAL APPROACHES TO MARKET ANALYSIS

There are two types of approaches on trading strategy selection - either mechanical or subjective. If trader's got a mechanical one he doesn't need to make investment decisions - everything makes everything. MTS is always knows what to do and more important - when to do. The trader is only to follow market, system signals and to make orders to his brokers.

At other hand if trader doesn't have clear trading system he is to make subjective decisions. These decisions are impulsive and often made by impression. Often it is not based on analysis - but greed and fear. Human nature is not free from errors and pros are differ from beginners by strict emotional control.

Practice shows that absolute majority of successful traders is using mechanical approach to trading. Beginners and 'traders just for trade' are inclined to subjective analysis.

Well, what does it mean - 'mechanical trading system'? We're choosing market, configure system to it, choosing formulas based on historical data, entry points, exit points for profit and loss positions. System is running and there is no need to sit day by day before monitor hoping to cry: "All got it!" Practice shows that hour by hour 'monitor duty' is good only for starting stages of learning market and stage of choosing optimal strategy. Once started, system will work autonomously and trader may rest or do something else without worrying about anything.

RISK MANAGEMENT WHEN USING MTS

Unfortunately, that’s not how real world works. If you are like most people, you will change careers, or at least companies, several times. Each time, you'll be faced with question of what to do with your accumulated 401k benefits.

You will likely have a few choices: keep your 401k with your old employer (sometimes possible), roll proceeds into your new employer's 401k plan, or put them directly into a self-directed IRA at a brokerage firm of your choice.

Since leaving your 401k with your ex-employer has no benefits whatsoever and most employers will prefer you transfer out anyway, that leaves only last two as viable options:

1. Roll your 401k proceeds into new employer's 401k plan of (if allowed)

This is most painless solution and one that does not require much decision making. While this is certainly acceptable, there is a bigger picture.

The ultimate goal of having a 401k plan is to provide you with a comfortable retirement. To accomplish this you really need a wide variety of investment choices and opportunity to move among them in response to market variations.

Most 401ks are limited to maybe 15 mutual fund choices which rarely change, even if market behavior dictates they should. Additionally, canned advice provided through plan sponsors is generally not terribly useful.

The only benefit to this type of rollover is that if your plan has a loan provision, you’ll be able to borrow funds easily.

2. Roll your 401k proceeds into a self directed IRA