Could You Be Trading For a Living?

How To Trade For A Living

If there is so much money to be made with day trading for a living, why don’t more people invest in the strategy? This is a common question many people on the proverbial fence about day trading will ask.

For the most part, this question is asked simply because it’s a convenient and easy way out of having to make a decision as to whether or not you should start day trading for a living. If on the other hand you do indeed want to find a proper answer, then you need to know that there is a massive flaw present when it comes to day trading for a living. Believe it or not, but that huge flaw is none other than the misuse of the word “invest”.

Right off the bat, it is critical that those interested in this type of revenue generating understand that day trading is most definitely not a form of investing. It is trading. There is a huge difference between the two. Investing is all about the value of money over time.

While there are certainly high risk and aggressive investments one can make, they all deal with the notion of holding onto the investment for at least a short while. (Conservative, long term investments will be held for significantly lengthy periods of time.)

Unlike investing, day trading for a living doesn’t involve trying to hold onto your cash. In fact, if you’re day trading for a living you need to be buying and selling on the same day, and no matter what anyone has told you, it’s not an easy process. Of course there is plenty of money to be made with day trading, but there’s also a chance that you could end up losing a great deal of money.

Okay, so why don’t more people become involved with day trading for a living? The simple answer is that not everyone is cut out for it. Remember, everyone is different, and while some people may be highly successful when it comes to day trading for a living, others simply fail to grasp the concept altogether.

Considering the large amount of money that is on the line when day trading as well as the amount of effort involved with being successful, it is no secret that some individuals would be better off not trying to do this for a living.

If you feel you have a knack for the markets and you’re confident enough to begin trading, then of course it is possible for you to make a huge amount of money. You can be rest assured that there are some people who have begun day trading with virtually no money at all, only to end up making millions of dollars. Admittedly, this is certain not the case for everybody, but at least you can look to these people for inspiration if you’re currently sitting on the fence with regards to becoming involved with day trading.

Contrary to what you may have heard, you can start day trading with a very small amount of money, and in fact, this is actually advisable, irrespective of how wealthy you are, so that you can first gain some experience.

By no means is day trading for a living for everyone, but for those with find it to be a rewarding adventure, there’s a lot of money to be made. The bottom line is; if in your heart you don’t believe that day trading for a living is for you, then you should walk away. On the other hand, if you have a feeling that might enjoy it, then by all means go ahead and give it a go.

Are you tired of scraping by at your job? Why not get into the stock trading and make some money the easy way… with the guidance of artificial intelligence! Get more info about trading for a living… You should also check the very best stock picking software.

Free Top Dog Trading Course

Here is a great free gift from Top Dog Trading, they have just finished creating a new course that gives you the most important things that turned Barry Burns own trading.

At first they were going to charge for it … but they have decided to start
the New Year by giving it away to all of their students, subscribers and readers.

Ot is just their way of saying “thank you” for your friendship, and to help you make this your best trading year.

There are no strings attached and you don’t have to “opt-in” to anything. Simply go to the site, download the PDF outline and then follow along with it as you watch the 3 videos (there is about one hour of training in all).

It’s there for you at the Top Dog Trading Blog

To access the course, just go to the front page of the blog and you’ll see the most recent post at the top of the page gives a quick introduction and then gives you the link to the course.

The post is entitled: “Top 20 Daytrader Secrets for Day Trading Stocks, Emini Day Trading, Forex and Other Markets.”

Just go to  Top Dog Trading Blog

How To Use An ETF Trading System

How To Use An ETF Trading System

Exchange trading fines also known as ETFs maybe bought or sold just as any other stock. ETFs are sold at any brokerage firm. The ETF trading system consists of a set of rules that dictate when to buy and sell ETFs that allows you to trade without emotion. By following the rules, even market downturns do not prevent you from making money.

Many systems pose a risk that is between a mid-low and a a medium risk. Many are easy to use.

The one key thought of an ETF trading system is never stray from the rules. That souds easy enough, but wait till a buddy brings a tip or the market becomes unstable. Then the emotions can get pretty strong.

Even in an unstable market, you can consistently out perform the buy and hold people. You can count on a steady annual return.

Time travel back to 1928. The market was going big guns. You did not have to have a plan to make money, just drop money into the stock market. And all was well until one day when the market crashed the next year. People followed their emotions and feelings to financial ruin. Emotions are a poor guide for making investments.

Investors who did not follow their emotions, but followed their rules, may have had short term losses, but continued to make an overall profit. By following the rules, investors could have had a fourteen percent annual return over the next twenty years, even though the market did not return to its peak from just before the fall during that time.

It could take the market another fifty to eighty years to recover to its highs of a few years ago. Unfortunately, most of us cannot wait that long. We need something that will give us that same consistent annual return. ETF trading system can do just that. They will help you to avoid the pitfalls of sharp market downturns. They help you to make money year after year.

Stop following the heard. You probably learned that lesson a couple of years ago when you were trampled. Followers always get trampled in the stock market, it is only the leaders that win. They know to sell before the everyone else and to buy before everyone else. That is why they win.

If you want to be a leader and win, get a proven ETF trading system and start following your rules and not your emotions. If you follow the ETF trading system you will come out in the lead every time.

Understanding The ETF Definition In Simple Terms

ETF Definitions Used In Trading

Many investors are jumping on board and investing in ETFs. If you are new to the investment world here is an etf definition that will give you an idea of what you may be missing. Investing in ETFs has become quite popular on the AMEX. It has a tracked index that has the flexibility of being also traded like a stock. There are many pros to investing in this up and coming favorite.

If you’re familiar with index funds you’ll find that ETfs are in the same neighborhood but better. The beauty of the etf is they can be bought and sold exactly like you would a stock on the stock exchange. The only difference is instead of investing in one company you get diversity.

If you’re looking for diversity in your portfolio and mixing up options, you’ll easily get that with an investment in an ETF. It provides a variety of funds to help increase profit margins favorably in many cases. The best news is you don’t have to make multiple buys, you get diversity with one simple purchase.

Understanding the etf definition is quite easy when it’s put in layman’s terms. Not only do you get a very good mix of funds to buy and sell in one single scoop, the duration of the ownership does not come into play one bit. You can hang on to them forever if you choose or you can sell them to another investor the same day you buy them.

If you dig just a little deeper to learn more about the orchestration of ETfs, you will understand the mix. You will also find that some will offer dividends per quarters. Etfs track foreign markets on the cutting edge of technology and other significant developments and much more.

There are over one hundred or so, close to one hundred and fifty ETFs which include tracked oil prices, tracked gold prices, commodities, and a variety of lucrative bonds sold on the exchange market. This lends to the popularity, allowing investors to broaden their investment.

The biggest attraction which is an important element in understanding the etf definition is that it only takes a low amount of money to invest in them. They are extremely cheap and have a smaller risk. The tax advantages are great too.

What investors love in relationship to the tax benefits is the low capital gains realized when the etf is sold. The only disadvantage is since etfs are purchases so cheap, the brokerage fees associated can eat into profit margins.

Commodity Markets Trading Strategies For Starters

The best way to learn how to trade in the commodity markets is to take lessons directly from a successful trader. However, even if you found the right persons, and they taught you all they know, this in itself does not guarantee that you will make money the way they do. For this, you need to keep a good trading strategy yourself, if you are to succeed in doing commodity futures trading.

Trade Correctly Or Not At All

A lot of people don’t realize it, but they end up learning through trial and error. However, you are unlikely to become a good trader if you use this method. The first thing you need to do to trade the right way is to read as much as possible about commodity trading. This may not give you the best trading plan, but it will definitely prepare you for the trades you might want to take in the future. You will gain more knowledge about the risks you are about to take, and how to limit them. You will also have the benefit of learning from mistakes made by experts, rather than having to go through them yourself.

Essentials Of A Sound Trading Strategy

The first decision you need to take while formulating a trading strategy is to decide how much capital you want to invest, as this will greatly determine how much you will end up making as profit. The more you invest, the better your chances of making money. It provides more lasting power in the markets if you have more ‘risk capital’. Risk Capital is the amount of money you are willing to lose without it affecting your way of life. The next step is to decide what your average trade investment will be – as in the value of each trade taken.

The four essentials of any good trading strategy are as follows. Firstly, always remember to trade in the direction of the market trend. Remember, the market trend is your only friend. Secondly, always keep stops in place. They will determine how much capital you will lose. Thirdly, let your profits run as deep as you can. Don’t be in a hurry to exit a trade if you are making only a little money. This sounds like it is easy to do, but is perhaps the most difficult of all the four principals. Lastly, manage your risk wisely and carefully. Make sure that the risk reward ratio is always leaning in your favor when you are taking a trade.

Use Of Technical Analysis

Most traders use technical analysis as part of their trading strategy. Technical analysis provides many vital tools that allow you to be more informed about the trades you are taking, and help to decide which ones to ignore. Among other things, indicators used in technical analysis allow you to determine trends, entry points, stops, target prices, supports, resistances, possible breakouts and breakdowns. It would be wise to use these indicators when you are formulating a strategy to trade in the commodity markets and also with commodity options.

Remember, it is wise to always trade a commodity that you are knowledgeable about. Try to master one commodity and know the factors that affect its movements. Know what you are trading, and you will find your self on the winning side more often.

Can Sure Fire Trading Make You Rich?

Sure Fire Trading Reviewed

If a product has moved up by about 20 places in under a week in the ClickBank top product list, it actually is good – that’s a fact.

Sure Fire Trading has done precisely that, and is now said to be among the most promising trading systems available on the internet now.  One bizarre thing about Sure Fire Trading is that the ideas and elements aren’t restricted to any one mode of trading – they’re equally useful in foreign exchange, Stocks, Commodities, and Futures trading.  Nice, right?

The system looks highly easy, but be assured that there was a large amount of tough work which has gone into making the system so good.  From Fibonacci to trading samples from different states and time-zones, they have all been researched for a period of virtually 5 years, and that it probably why the system is sheer genius.

Though there are separate chapters for futures, stocks, currency exchange, and commodities, the essential guidelines are the same.  And the beauty is that you don’t need to buy the program in order to benefit from their data.  There is a column that pops up ( and is really extraordinarily persistent ) asking for your name and e-mail id ; or at the end of each page you have a place to leave your e-mail id and name to add on to the Sure Fire Trading mail list.  Doing so will put a newsletter in your mailbox at regular intervals, and the tips mentioned in them are quite enough to get you off the ground as a trader.  When you start believing in the middle, you can take up the premium membership and buy the e-book.

If you check the Page Rank of Sure Fire Trading, you may notice the PR is 3.  That implies the site has been around for quite a while now, and is also reasonably popular.  If you’re significant about trading online, this is a program that might come in very handy.  Try it.

 

Fundamental versus Technical Analysis Methods

 

When you are interested in investing or index trading, one of many questions you must answer is whether you are interested in fundamental or technical analysis as your trading strategy. These are the two primary investing methodologies, and each system has its own characteristic advantages and disadvantages. The strategy you choose will depend largely on your goals and the current financial markets.

In general, technical analysis is a trading strategy that looks at the past price movements of a particular security in order to predict future price movements. In contrast, fundamental analysis focuses on the fundamentals, which are economic factors directly affecting the company, when making trading decisions.

A Closer Look at Fundamental Analysis

Fundamental analysis looks closely at a business, analyzing its cash flow statement, income statement, and other financial records to determine the intrinsic value for that particular company. When the stock price is below this supposed intrinsic value, the asset is considered a good buy. A stock is considered a poor investment if the purchase price is greater than its intrinsic value. Of course, there are many other economic factors considered by the fundamental analysis trading strategy, but this gives a basic idea of how the analysis works.

Fundamental analysis requires that investors take a long term approach to looking at a company or an asset. Most fundamental analysts want many years’ worth of information from the companies they are considering investing with in order to make a decision. Also, the investments are considered long-term investments, as it takes a while for the company’s actual value in the market to reach its intrinsic value as stated by the analyst. This can result in low returns for the buy and hold investor in a down economy, as assets stagnate instead of increasing in value. The investor is assuming that the increase will come later and that the stock will eventually have the same value as the company’s intrinsic value.

Fundamental analysis has a longer history of use by investors. This has been a tried and true investing method for years. Many financial “experts” tout it as being the most fundamentally sound way to invest money. However, in order to succeed in long-term investing using fundamental analysis, you must have a thorough understanding of economics, the resources necessary to find the economic statistics about a particular company, and a sound company in which to invest. In some cases, investors have lost money when companies that seemed to have solid financials suddenly filed for bankruptcy protection. In the long term, some losses like this may not affect an overall investment plan, but for many seeing them is discouraging in the short term. This has led to a growth in the popularity of technical analysis and index trading.

A Closer Look at Technical Analysis

Those who are interested in swing trading often take the technical analysis approach. This involves analyzing the stock alone and not focusing on the economic factors affecting the company. The technical analyst feels that it does not matter how much intrinsic value a particular company has if that value is not reflected in the stock market, because the value may never be felt by the investor. Everything someone who is index trading using a technical approach needs to know is found in the stock charts.

As such, the technical analysis approach is a more short-term investing style. The goal is not to buy an investment and hold on to it for a long time, but rather to buy an asset when it has a low price and sell it as soon as it has gained enough to make the trade worthwhile. These investors are constantly making trades back and forth, which is why this type of trading is often called swing trading. The charts they use are also short-term in scope. They may cover a few days or a few hours, depending on the type of trading being done, but they rarely cover several years. The goal of the index trading investor is to see what the stock is likely to do in the short term, in order to decide whether or not there will be some increase in the near future.

Technical analysis often produces outsized returns in the short term, as compared to fundamental analysis methods.  Traders using technical analysis need a reliable trading strategy in order to cement their gains over the long term.

When the economy has stagnated, technical analysis can continue to produce significant returns.  When markets as a whole hold steady or drop, there will always be days when a particular stock will do very well, and others when it will do very poorly.  Index trading allows the investor to analyze past trends and predict when these spikes and drops will occur.  This means that the investor can sell when the price jumps up and buy when the price goes down, creating a return even in a time when buy and hold investors are not seeing any.  When trades are done well, nearly every movement in the market earns a return, even if it is just a small one. Fundamental analysis and buy and hold investing styles rely on a company’s performance to generate returns.  If that company’s product or service stops selling well, the investor will lose significant amounts of money.

Which is Right For You~Which Trading System is Best for You}~{Which Method is For You}~Which Trading System is Best for You}?

Determining which investment style is right for your financial needs is something you alone can do. Are you looking for a long-term investment option, or do you want a short-term option to get you through the current economic downturn without significant losses? Do you need to see an increase in your investment soon for an upcoming expense, or do you have the luxury of time to wait for future increases? A mixed approach utilizing both methods of trading may help balance your portfolio and meet your financial and risk management goals. Regardless, understanding both schools of thought and how they play out in an economic downturn is crucial to your investing success.

 

Share Trading Course: Top Dog Trading Review

Search for ‘Technical Analysis’ on the internet and you will be overwhelmed with material, but after much digging and researching I found Top Dog Trading.

When I began trading Share markets, I realised that fundamental analysis was not a system I could use, but analysing share charts was something I could get my head around.

What helped my decision to take the Top Dog Trading course to learn Share trading?…. A variety of things besides the desire to improve my trading and stop entering too many loosing positions; was that I had a good feel for what Dr Barry Burns was imparting on his website and a significant amount of the teaching is explained on the detailed videos which makes it much easier to understand and see what he is saying. A further qualifier was Barry’s CV; it is impressive, a business man who treats trading as a business, he is also a accomplished speaker and writer.

So I started with his free 5 video course on learning to trade to see if I felt good about his analysis systems.

Prior to this, I had studied several other courses on technical analysis for Share trading but even after all of these I still felt there were gaps in my knowledge that would allow me to become a successful trader, all this changed once I came across Dr Barry Burns, now I am comfortable with the share trading strategies I have learnt.

In his courses Barry explains the principals simply and clearly, then gives real chart examples with all their erratic moves showing how to make the rules work profitably. This is all explained via a vast selection of videos.

Having completed Barry’s courses I have not only learnt how to execute his methods but also embraced a far deeper knowledge of the Share market & the associated charts but more critically the money management and personal philosophies that are such an important part of becoming a professional Share trader.

Barry’s teachings are the best Share trading courses that I have come across and I would highly recommend that you give his FREE course a try. This freebie has 5 videos that walk you through some of the most powerful trading material I’ve ever come across.

Barry teaches methods, which when stuck to, provide a good ratio of winning trades with tight control on the losses, so when one does have a losing trade (which all traders do) the financial pain is not too severe.

I have completed the course, loved it, and gained a vast amount from it and have gone on to Barry’s more advanced courses. My want to delve more into the world of Share trading has turned out to be very profitable.

Try Barry’s Free Video Course for yourself, it’ll be the best thing you’ll do!

How To Trade Commodity Futures

A lot of people have made a lot of money trading commodity futures and commodity options. It offers a person scope to earn a huge sum of money with a very limited trading capital investment. How have these people done it? Well, I don’t know if I can answer that question just yet, but here are your beginner’s guidelines to commodity trading.

The Basics

When you trade in the commodity futures markets, you are not actually buying something. Instead you buy its future contract purely on the assumption that the price of the commodity is likely to move upward in the immediate future before the expiry of the contract. You buy to gain profit from this increase in price. For example, if you buy gold futures at $650 now, and the price at the expiry of the contract is $660, you would have made $10 on the commodity futures contract without actually trading in or buying any gold.

People choose to trade in commodity futures and futures options because it offers them an opportunity to get very large leverage on their invested capital. If, for example, you had about $20,000 you would be able to buy an S & P 500 stock future of the index. The same in actual equity stock could cost you $350,000. So, you get leverage of 17 times on your $20,000 if you invest in futures. This has huge ramifications where return on investment is concerned. If you make $20,000 dollars on an upward trend on this contract, you would have ended up with a 100% profit on your investment! This is as opposed to investing in actual stock worth $350,000 and getting $20,000 as return on investment. Puts things in perspective, doesn’t it?

What Are The Risks Involved?

However it’s not all roses out there or everyone would be trading and doing nothing else. The truth is that there are many inherent risks in doing commodity futures trading too. The key is the risk to reward ratio. A lot of people are not as concerned about the return on their money as they are of their invested money returning. Greater the risk, the greater is the return. If you’re wrong, you lose just a few thousand dollars trading carefully over a long period of time, whereas if you don’t have the luxury of patience, you may lose a fortune quickly in just a few large trades.

Hence, one must remember that there is a huge risk of loss in commodity futures trading. To limit this loss, people use what is known as a ‘stop’ or a ‘stoploss’. These are orders placed to square off your position if it turns against you in any trade to limit your loss. These are considered an essential part of futures trading, as you never know what unforeseen event lurks ahead that has the potential to wipe out a large chunk of your invested capital. To make money, one has to accept that you will lose money also. If you have a good trading system, and use stops in your trades, you are sure to succeed over time.

Sometimes markets move so fast that your stop loss will not be hit. This is due to the broker not being able to trade the market for you because of these limit moves. It is for this reason, many only choose futures options. 

Commodity futures hold immense potential in making for you huge amounts of money. However, one needs to be careful, and invest funds wisely and with patience.

Understanding The True Value of Gann Square of Nine

Gann Square of Nine or Gann Pyramid as it is also called, is one of the most useful tools in the investment industry. Though it is somewhat more complicated than other tools, once mastered it is very useful when applied to financial analysis.

The Gann Square of Nine is most often used to confirm the significance of highs and lows in terms of stocks, commodities and other types of investments. Imagine being able to predict when to buy a particular stock and how much to pay. The Gann Square of Nine makes this not only possible, but also a reality that has worked for many investors over the past century.

It is important here to note that Gann Square of Nine should never be used to choose tops and bottoms when selecting stocks, but it can be utilized to provide additional information to confirm how significant a recent high or low point in the market was when a break in a trend occurs. Gann Square of Nine is similar in shape and concept to a wheel or circle, and is often also referred to as the Gann Wheel.

It starts with the number 1 in the center and radiates out to the first square of nine. This begins with the number 2or number 1 to the left of the center, it then spirals clockwise to the number 9 in order to form its first rotation around the square of nine. This rotation then shifts one unit to the left of nine and the next rotation begins at the number 10. It then continues its spiral to the number 20 and so on.

Here is a picture of the Gann Square of nine:

http://www.stock-commodity-trading.com/gannsquare.gif

The Gann Square of Nine is a time and price calculator that figures the square root of numbers, both odd and even and their midpoints as well. It also seeks time and price alignments from a specified starting point or price level. One example of this would be a significant high or low point in a given market.

If you look at the numbers that appear on the grid that run down to the bottom left corner on the Gann Square of Nine, you will find them to be the square root of odd numbers. An example of this would be 5×5 = 25. If, on the other hand, you look at the numbers that run up to the top right corner on the Gann Square of Nine, you will find that they are the square root of even numbers. An example of this is 4×4 = 16.

The numbers that run down to the bottom right corner will show you the midpoint between the squares of odd and even numbers. Let’s use the numbers 25 and 16 mentioned above to illustrate this. Here, the number 21 would represent their midpoint because it falls exactly between them.

The Gann Square of Nine is an arrangement of numbers with a specific order and a used in a number of ways. Further review of Gann Square of Nine will show you how it works and illustrate its usefulness in determining market highs and lows.

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