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Globalization Winners And Losers

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Optimizing trade performance starts with analyzing past trade data.It is very important to track every trade and its characteristics. After building a database the analysis can begin. The first step is to sort the trades. An important first sort is by winning and losing trades. Winners and losers share characteristics and careful analysis will unlock better overall system performance.



Two prominent characteristics of winning trades are time and price. One of the most important goals after a trade has been executed is defining it's likely outcome. Sorting previous trades can help accomplish this goal. Isolate all the winning trades and sort by length of time in the trade until closeout. Find the average time in the trade. Compare that number to the same calculation with the losing trades. The winners have a longer average time than the losers. Losers will tend to be quick.

It seems like this piece of information is minor. But, it can be a powerful tool to the daytrader. If you delve deeper into the data in excel you can isolate a time frame that defines when only winners survive. Create a histogram that gives the winning probability by elapsed time in the trade.

Using this piece of information can improve your performance in a couple of ways. Consider different trade entry rules that don't commit your entire capital on the initial signal. Use simple time checkins to add size to your trade to reach your optimal trade size. It can be a simple as buying every five minutes as long as the trade is alive. By staggering the entry, the quick losing trades will automatically have lower size than your long winning trades. The average winner will improve as the average loser will decrease. This lowers the overall drawdown potential . It will also raise your expected return.

An old trading maxim is to cut winners short and let winners run. Knowing your time performance data helps accomplish this goal. If you track the PL of your trades on every bar, it leads to another discovery. Graph the results and look at the chart. The winning trades not only last longer but have an upward slope. The losers will have a downward slope. Employing a trailing stop will cut the losers off but allow the winners to run by having a trailing stop below the winning slope.

Analyzing past trades is the key to improving results.
Globalization Winners And Losers
If you've been around the promotion circle long enough and even if you have not, you probably heard this one before, test, test, test! But before you embark into a promotional odyssey for your evolving publication full speed ahead, it is a good idea and very essential that you market test your offer (s), if you want a full fledge promotion to give you the best results.

For those who feel this to be utterly unnecessary consider for a moment all the possible missed - opportunities:

A) What if this or that approach could have worked better?

B) If only I would of have used a stronger or more conservative angle.

C) Made the overall offer more appealing?

D) The message better understood?

E) What if, we would have provided a more value driven premium?

F) Lowered/raised prices... or included a better response vehicle?

The alternatives? A more sound, efficient mailing - less wasted resources, money better allocated, greater savings and bigger profits!

Testing your offer involves extra efforts and perhaps a few additional dollars, but the end results is a much more informed, and profitable campaign but... that's not all.. a learning experience as well. A learning experience because through the process of implementing different promotional approaches you are constantly learning the mechanics that separate a winner from a loser and discovering other much more successful approaches that otherwise would have remained hidden.

Okay, so how do I go about finding my offer true potentials you ask? Much obliged, first you must truly understand all the pieces that make up your promotional package, much like going back to basics.

You are probably familiar with the old saying "an ounce of prevention is worth a pound of cure" well, in this case, "the best approach is worth many dollars saved, thousands earned", should fit the bill (no pun intended).

More to the point and to start you off here is a non-inclusive list of some familiar promo, components and terms, feel free to add others as necessary to conform to your specific offer (s), one word though... it is in your marketing - promotional best interest not to undermine any of these elements, as basic and redundant as they may appear to be:

Program-Format, what is the goal... best aesthetics?

Typestyle-Size, does it convey meaning by itself, is it attractive, consistent throughout?

Headline-Subhead, does it grab your attention, pulls you into the rest of the copy/letter?

Opening-Closing Copy, are your P.S.' and P.P.S.' effective?

Illustration (s)-Line Art, Photo, can it translate into a thousand words on it's own or does it need text for support?

Pricing-Low, Competitive, why?

Premium-Incentive, is that the best you can do?

Ordering-Urgency, Deadline, future price increase?

Mode of Payment-Immediate, Conventional (Money Order, Check etc.), Credit Cards, Internet alternatives?

Response Vehicle (1)-Form, Card, Postpaid?

Response Vehicle (2)-Plain Envelope, Postpaid?

Now reach deep down within your marketing/ promotional well of knowledge (however broad or limited it might be), and ask yourself... do I really understand this offer from my target (consumer/B to B/ recipient) point of view, is this program well thought out and the message properly structured? How will the message be perceived... is it plain enough for the average consumer - smart enough for B to B or could it be improved and where?

One thing we learned over the years is that, when it comes to promoting your wares, no matter what they may be, there is always room for improvements.. without exceptions.

Okay, still with me? Now that you had a chance to reflect on how well your program is put together, pick any, a group or all of the above listed key components and make changes.

For example, change part of, or the whole sales letter... use a different approach, headline. Change the premium/incentive or give additional ones. Your end product should reflect a new concept for the same offer.

Once you are satisfied and your new concept is finished it is time to put it to the test (there goes that word again). Get both new and previous concepts into the market as affordably as possible, (e.g., if using a Card Pack and only one format but testing different pricing, and circulation reaches an audience upward of a hundred thousand or whatever the allowed mailing minimum is, key - code one format with a number, and or different address).

Have your Card Pack rep. Direct Response Agency etc., mail half to a group of prospects and the remainder to another group. Ad testing follows basically the same procedure as for Direct Marketing (change heading/subhead, typestyle, copy, graphic - if any - offer/ premium or incentive), but with one notable exception. Have Ads placed "split-run" or alternate each other in the same publication, in different areas within that publication or just run both Ads at the same time in different publications even exchanging target publications after so many runs.

What is important, is to test different approaches or angles against each other to see which does better.. One thing is certain, you will be pleasantly surprise at how much more one concept pulls vs. the other. How many more orders - larger profits. You most likely will also be baffled at how well... however higher a price, does vs. the other or, whether a price is more widely accepted than another (when testing prices).

Whichever route you are exploring, allow the campaign to run long enough to really be able to see comparative results. Once you have a chance to assess why and which approach did better, go ahead... and start over again. Against your best campaign producer, if time, and your budget allows it. You'll be surprised at the results and at how crucial Market Testing is, it will save you hundreds.. and earn you thousands!

All rights reserved. Free reprint rights allowed as long as the originating site/source (http://golden-quill.com/golden-quill-TradeMagazines-index.htm) and this copyrighted notice: Copyright 2006 Ralphy© ™ Golden Quill-Trade Magazines is included.

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Both Michael Gentleman & Rafael Valderrama are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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