by: Harvey Walsh |
| Ever dreamt of giving up the daily grind? Want to strike out on your own and work from home, but don�t know what you could possibly do to make a living? Full time Nasdaq trader Harvey Walsh wondered just that, and now he asks �Is day trading the ultimate work from home job�? We�ve probably all had the same thought at some time or another, as we trudge off towards another day at work � the same work we�ve been doing day in day out for years � �surely there has to be a better way?� Slaving away to make somebody else rich just doesn�t seem right somehow, but what alternative? Setting up a new business, or buying an established one, are both expensive and risky prospects. So how can the disenchanted employee ever hope to make the switch from wage-slave to total independence? Those are thoughts I had almost every day, before I quit the safety of full time employment and decided to strike out on my own. I asked myself the same question day in and day out; surely there has to be a better way. What about the internet, I wondered, isn�t that supposed to be bringing new and exciting opportunities to all? I researched a lot of so-called work-from-home opportunities that promised untold riches, apparently mine for the taking just by sitting in front of my PC. Needless to say, in reality those schemes turned out to be about as fulfilling as, well, filling envelopes for a living. No, I knew there had to be another way � something real � something where I could be in control of my own destiny. And then one morning on the train to work, I read about a couple of Wall Street boys who had struck it rich thanks to some huge bonuses, and were now going it alone setting up their own day trading shop. That was when I discovered day trading, and I realised that this was exactly the opportunity I had been searching for. I decided there and then that I was going to make a full time living from the stock markets, whatever it took to succeed. The advantages of day trading as a job are numerous to say the least; there is no boss to answer to, no customers to satisfy, no suppliers to let you down, no waiting for invoices to be paid, I could go on. In fact, I will: trading is a location-independent activity � I can work from anywhere with an internet connection, which effectively means anywhere in the world with a telephone line. I regularly trade from my laptop whilst travelling. I can trade when I feel like it, and take time off when I like, which means I can spend quality time with my family. Now let�s get this straight, trading can be a risky activity, there is no doubt about that. So is driving a car to work, but the risks of getting from A to B on four wheels are well understood and are managed accordingly, to the point where we don�t think twice about getting behind the wheel. And in the same way, provided a trader is disciplined in their approach to the job at hand, and understands the associated risks of the work, so those risks can be managed. On the subject of risk, day trading is almost unique in that it can be learnt and practised with absolutely no financial risk at all, by means of paper-trading � that is - trading using freely available simulation software. Thus in the same way a trainee airline pilot won�t be let loose into the skies without having learnt and rehearsed their skills in a simulator, so a new trader can employ the same technique before they start trading real money. I �sim-traded� before I gave up the day-job; it made it easy to leave the safety-net of a monthly pay check knowing from my simulated trading sessions that I could already make money in the markets. And that brings me to the most satisfying aspect of trading for a living; money. On an average day trading the Nasdaq, it is not unusual to make more money in a couple of hours than I used to make in a whole month working full time as a wage-slave. There are bad days of course, days where things just don�t work out, but they pale into insignificance over the course of a week or a month. It certainly took some intensive studying and a lot of practise before becoming a consistently profitable trader. But the end result of that hard work is an immensely valuable life skill that nobody can take away, and which allows for incredible freedom. Since I first started trading, the learning curve has become even easier for the aspiring day trader, with a multitude of new websites, training courses, and books all covering the subject. I envy anyone starting out in this business today � they certainly have many more learning aids available to them than I had at the same point in my own career. So is day trading the ultimate work-from-home job? No. I firmly believe it�s the ultimate work-from ANYWHERE job! About the author: Harvey Walsh is a full time Nasdaq day trader, and part time trading tutor. He trades from his home, or indeed wherever he happens to be when travelling. He can be contacted via his website: http://www.day-trading-freedom.com Circulated by Article Emporium |
miercuri, 31 martie 2010
Day Trading � The Ultimate Work-From-Home Job?
Comments on Forex Trading Account Sizes, Lots and Margin Calls.
by: Adrian Pablo |
| Forex trading is one of the best business opportunities you can think of joining these days. No other market in the world allows the �Leverage� that the profitable world of currency-trading does. Leverage is all about margin trading. In the Forex market, it is essentially the ratio of the amount used in a trade to the required security deposit needed, by the particular broker you chose to use, for that trade. Normally, for most brokerages, a margin deposit of just $1,000 allows you to control a $100,000 position in the Forex market. That's 100:1 leverage, or 1%. Or, said in a different way, a �regular full-sized account�, sometimes referred to as a 100k account, allows you to trade with lot sizes equal to $100,000. Each lot is worth $100,000 in currency. So It would only require $1,000 to trade one lot. This great feature in Forex trading is what makes this market the hottest market to trade in right now. The Forex broker has given you a loan of $99,000 dollars secured only by your $1,000! This is a huge loan and, as you may know by now, this is what allows traders to make extraordinary incomes in this market. And, as you also are probably used to hearing , "leverage is a two-edged sword" , it is what can cause you to lose a lot of money if you trade without rules or Stop-loss orders. But just as an example, let's say you were a person that likes to trade with reckless abandon, i.e., with no strategy, no common sense, no money- management principles, etc. That�s never recommended for anyone, but being a Forex trader has such great advantages, that even someone with a trading mind like the one described before, will never lose more than what he has placed into a trade. Unlike Futures (Commodity Trading), the market that most people associate with High leverage, you can never have a debit balance when trading Forex. So, despite the greater leverage associated with FX trading, it is still arguably less risky than futures trading. Futures markets are often prone to sudden and dramatic moves, against which you can�t protect yourself, even by trading with protective stops. Your position may be liquidated at a loss, and you�ll be liable for any resulting deficit in the account. But because of the Forex markets great liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are very unprobable. Orders are executed quickly, without slippage or partial fills, which is just great. And as it was not enough, there are no margin calls, for your protection, the forex broker's trading platform will automatically close out some or all of your open positions if your account equity, meaning the total floating value of the account, falls below the level required to hold the positions. Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance. About the author: Adrian Pablo; Forex trader and freelance writer. You can download a free Fibonacci trading report at his website: http://www.1-forex.com Circulated by Article Emporium |
Boost Your Income With Financial Spread Betting
by: Gary Anderson |
| About 6 years ago I started to notice that certain friends of mine had quit their jobs but continued to live very luxurious lifestyles - seemingly without doing very much. I thought they must just be using up their savings until I discovered they were all making a fantastic living by spending just a few hours a week doing something I had never heard of before - �financial spread betting� More and more people are now becoming familiar with the phrase �financial spread betting�. Once, the sole preserve of City Whiz kids or sophisticated gamblers, financial spread betting is now gaining in popularity as a great way to earn a very sizeable tax-free income without the risk of losing the shirt off your back! So why is financial spread betting becoming so popular. Well, with a bit of understanding and practice, ordinary people, with no prior experience, can earn enormous sums whilst controlling their risks and limiting their losses. You do not even need a stockbroker or a city dealing account to do get involved. An on-line account is very simple to open and anyone with web access can do it. Spread betting, aka futures trading, is easy to understand if you stick to a simple index like the FTSE 100 or the DOW JONES. In basic terms, this is how it works: When you buy a �future� you take a position on what you think the index (e.g. the FTSE 100, or the DOW ) will be at some future date - e.g. June 2005. Let�s say the FTSE is currently at 5200 and you think it will rise over the next three months as �terrorist fever� abates. You would buy the June FTSE at (say) �10 per point. For every point it rises, you make �10. If it goes up 100 points, you make �1000. Of course, if you get it wrong and the index falls by fifty points (say), you lose �500.00. You need of course to be very aware of the risks before you get involved. As with any investment or business, you can lose money. If, by nature, you are a timid, cautious person, then it is definitely not for you. But if you have some money to play with, and aren�t risk adverse, then financial spread betting is the one of the best possible ways you can make a great deal of money completely tax free� and there are clever ways of limiting your losses so you never lose more than you can afford. Unlike most businesses, it is possible to get involved with an absolute minimal outlay and take a position without buying a single thing. You do have to �back� your position with a certain amount of cash, but this is �insurance� money, NOT stake money. The best thing is you can try it for free without any risk at all. You can �dry trade� with �monopoly� money until you get a feel for how it works and are confident enough to start using real money. Financial spread betting has become so popular primarily because of the relationship between risk and capital. It is highly leveraged and you can make huge profits with only a limited amount of capital and risk. The fact that there is (unlike with most investments) no stamp duty or tax also helps make it extremely attractive. So if you are of the right temperament, spread betting can be a very lucrative way of making an amazing income in your spare time. But be warned, if used recklessly or without the correct knowledge it can result in large losses. About the author: Gary Anderson. http://www.spreadbettingsecrets.com Gary Anderson is the author of �Betting On A Fortune� the best selling book on how to make money from financial spread betting. To get a FREE COPY of Gary�s course �7 Steps To Successful Spread Betting�, visit http://www.spreadbettingsecrets.com Circulated by Article Emporium |
Best Stock Market Simulation Games
by: scott morris |
| A stock market simulation game is a great way to practice your investment skills before actually investing any "real" money in the stock market. Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision. Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join. This is how stock market simulation games usually work: First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data. The objective of most stock market simulation games is simple: To increase the value of your portfolio of stocks so that it is greater than that of the other game players. Below are some tips on choosing a stock market simulation game: � Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide. � Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets. � Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies. � Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have. � Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience. About the author: Scott Morris manages his personal site on stocks investments and venture capital investments http://ceoinvestments.comfor more information, you can visit http://ceoinvestments.com Circulated by Article Emporium |
Benefits of Forex Trading
by: Cynthia Macy |
| There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market as a business opportunity: 1. LEVERAGE: In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Some Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. 2. LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid. This means that with a click of a mouse you can instantaneously buy and sell at will. You are never 'stuck' in a trade. You can even set the online trading platform to automatically close your position at your desired profit level (limit order), and/or close a trade if a trade is going against you (stop order). 3. PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stock markets, you can only make money if shares are rising, but in economic recession and falling 'bear' markets, there is little chance of making big money. Forex is different. One of the most exciting advantages of FX trading is the ability to generate profits whether a currency pair is 'up' or 'down'. A trader can profit by taking a 'long' position, (buying the currency pair at one price and selling it later at a higher price), or a 'short' position, (selling the currency pair and buying it back at a lower price). For example, if you think the US dollar will increase in value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If you think the Yen will increase in value against the Dollar then you will sell Dollars and buy yen (go short). As long as the trader picks the right direction, a potential for profit always exists. 4. 24 HRS: From Sunday evening to Friday Afternoon EST the Forex market never sleeps. This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night. 5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online Forex firms offer free 'Demo' accounts to practice trading, along with breaking Forex news and charting services. These are very valuable resources for traders who would like to hone their trading skills with 'virtual' money before opening a live trading account. 6. 'MINI' TRADING: One might think that getting started as a currency trader would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer 'mini' trading accounts with a minimum account deposit of only $200-$500 with no commission trading. This makes Forex much more accessible to the average individual, without large, start-up capital. Please visit the author's other trading sites to learn more about forex trading: http://www.daytrade-forex.com http://www.daytradeforex.com http://www.daytradeforex.com/products.htm http://www.professionalforextrading.info http://www.professionalforextradingonline.info http://www.successtrading2000.com http://www.successtrading2000.com/forex http://www.tradecurrency.ca/education.htm http://www.shortterminvestingsite.com About the author: My name is Cynthia Macy and I've been trading various markets for over 12 years. I now concentrate on the forex market, as it has several advantages over trading other markets. If you'd like to learn more about forex trading, visit: http://www.daytrade-forex.com Request the 'Trade of the Week' to see actual trades using our trading methods and strategies. Circulated by Article Emporium |
All About Stock Market
by: scott morris |
| A stock market simulation game is a great way to practice your investment skills before actually investing any "real" money in the stock market. Simulation games are usually played on the internet, where people can experience the thrill of investing in the stock market without any risks, costs or any fear of losing money when and if they make a poor investment decision. Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. Most stock market simulation games come with a fee to get started, but there are some that are free of any charge. One does not need have prior knowledge about the stock market to join. This is how stock market simulation games usually work: First, players must register. After registration, players are given an initial sum of "virtual" money to invest in companies of their choice. Players build a portfolio of stocks by buying and selling shares in companies. Most stock market simulation games use real-time market data. The objective of most stock market simulation games is simple: To increase the value of your portfolio of stocks so that it is greater than that of the other game players. Below are some tips on choosing a stock market simulation game: � Choose a stock market simulation game that is used and recommended by reputable colleges, high schools, middle school, investment clubs, brokers in training, corporate education courses and any other group of individuals studying markets in the U.S. and worldwide. � Choose a stock market simulation game that is comprehensive and easy to implement in any Finance, Economics, or Investments class. A good stock market simulation game should feature trading of stocks, options, futures, mutual funds, bonds from the U.S. and many of the world's major markets. � Choose a stock market simulation game that provides a valuable, reliable, and realistic trading simulation at a reasonable price to members and other individuals who are interested in learning more about investing and trading. The simulation game should also have some capability for testing a variety for investment strategies. � Choose a stock market simulation game that has a toll-free customer service phone number and excellent e-mail support for members. The support function should be able to quickly answer any questions that members/players may have. � Choose a stock market simulation game that is easy to use and easy to teach even to those who have never had any real hands-on investment experience. About the author: Morris gathers information about simple trading systemsimple trading system. Circulated by Article Emporium |
A Critical Review of Metastock 8.0: Is Upgrading Worth the Money
by: David Jenyns |
| If you are like many other traders, you have been eagerly waiting for the release of Metastock 8.0 for one reason, and one reason only, the reportedly redeveloped system tester. Metastock`s one major flaw has always been its lack of back testing capabilities, though previous versions of Metastock are head and shoulders above the competition on other fronts. But whatever criteria you use to trade with, be it moving averages, candle sticks, fibonacci retracements, or any other trading system, you`re going to need to back test it. Everyone needs to thoroughly back test, or simulate, their trading system in ways that can match the conditions you will be trading in. It`s something all serious traders do. Consequently, when Equis International (the makers of Metastock 8.0) announced "an all-new type of exploration that emulates running system tests over an entire database of securities", I could hardly wait to get the Metastock 8.0 release. While waiting to receiving my copy of Metastock 8.0 I began building trading systems. By the time my copy of Metastock 8.0 finally arrived, I had around 20 systems ready for testing, and couldn`t wait to try them out. However, when I loaded up the software, I was in for a surprise. It looked like nothing had changed. I thought maybe Equis International had kept the same interface and added in greater flexibility and some more features, but after searching in every nook and cranny, I found next to nothing that was new. It looked the same and, except for a couple of small changes, it was the same! Then I came to the System tester - now called the "Enhanced System Tester". This was my major reason for upgrading from version 7.22. This is what appeared to be only real difference between Metastock 7.22 and Metastock 8.0. After fiddling around with the Metastock 8.0 Enhanced System Tester for a few hours, and testing my 20 systems, I reached the verdict that I wasted my money on the new version of Metastock 8.0. Despite the supposed improvements to the Enhanced System Tester it, like it`s predecessor, left a lot to be desired. Even though the Metastock 8.0 Enhanced System Tester tests multiple securities in one batch, it treats each security independently of the others. Therefore, when Metastock 8.0 tests the first security, it uses your predefined float and takes the trade over the test period selected. Once that is completed, it repeats the same process for the second security, using the same initial float, with no reference to the first security. In the end, you receive the same result that you would have if you simply tested each security individually and added the results together. Not only is this process dreadfully slow, but the entire reason for testing your system is side-stepped. When your finished all the explorations, the performance of your trading system is still unknown! The moral of the story is that if you already own Metastock 7, don`t worry about upgrading to Metastock 8.0. Simply stick with the version you have and keep your fingers crossed that Equis International gets it right for Metastock 9.0. About the author: David Jenyns, leading expert in designing profitable trading systems, MetaStock website offers a huge free collection of trading related tips and tricks. http://www.meta-formula.com/subscribe Circulated by Article Emporium |
9 Deadly Mistakes of the Stock Trader:
by: Mark Crisp |
| The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals! 1. Trading with money you can't afford to lose. One of the greatest obstacles to successful trading is using money that you really can�t afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child�s college tuition. This is sometimes referred to as �trading with scared money� and there is a very good reason for that. Ultimately what happens is that when someone knows in the back of their mind that they are risking the rent money, they trade out of fear and emotion versus logic and no emotion. If you are in this situation I highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks. You can start with as little as $2000 and trade stocks under $30. 2. The need to be "certain". We all have the need to make sure that the trade we want to make is going to be a good one. Therefore we look for signs that will give us a confirmation to enter. This can come in several forms, for example� Tuning into CNBC or the Wall Street Journal to give us news that our stock is on the move or waiting for a couple of extra days to make sure that the stock is really flying and just not on a false breakout. Other traders will get opinions from friends, family or broker. Others will wait for ten technical indicators to line up and give the �green light�. All of these are okay to a point, however the big mistake to avoid is taking so much time that you let the trade take off without you. Interestingly, what ends up happening as a result of waiting too long is that you actually increase your risk. This is because as a stock moves higher and higher there are fewer buyers left in the market and it can come tumbling down until more buyers step in. It is like a game of musical chairs; eventually someone gets caught without a chair. Traders who wait and wait and wait to make extra sure are usually the ones buying the top tick just before the stocks sells off. They then beat themselves up thinking they picked the wrong stock. Odds are it had nothing to do with their selection, just bad timing. The thing to keep in mind is that there can be no absolute certainty in any given trade. All we ever can do is take a very educated risk along with a leap of faith! 3. Spending profits before you make them. Nothing is more exciting then getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. You say �Wow I�m already up 15% in two days; I�ll be up 50% in a week and probably double my money in no time!� Then the next thing that happens is you are deciding on the great new car you are going to buy or perhaps telling your boss that he can stick it� Well you get the idea! The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market sells off and eats up your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation. The simple remedy for this is to know where and how you will take profits once you enter the trade. Also, realize that the market will only go up as long as it wants and not how high you think it should go. 4. Forming an opinion. I�m here to tell you that the market does not give a damn about you or your opinions. Even if they are based on painstaking research or from a �Wall Street Guru�, it doesn�t matter! 5. Three 4-letter words that will kill you! HOPE---WISH---PRAY If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! As I have already said, the market doesn�t give a damn. All the hoping, wishing and praying in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-SELL! 6. Not sticking to your plan A big source of trouble arises when a trader starts to deviate from their strategy. Maybe for a week they will trade according to one set of rules and the next use something entirely different. This flying by the seat of the pants always ends up backfiring. This is because the trader can never be certain what is working and what is not. You must never deviate from your methodology once you start. As long as it is a good one statistically there is absolutely no reason to change it. The way to make money from it is to trade it over and over again to exploit the edge it gives you. One thing to also be aware of is that a trader is most vulnerable to switching approaches after a few loses. So, pay special attention at these times. 7. Not knowing how to get out of a losing trade. It�s amazing how many people I have talked to who don�t have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. As I keep saying the market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out. You can use a dollar amount or at some target point such as the low of the previous 15-minute bar. ***Make sure you don�t get the �stunned deer in the headlights syndrome�. This is where you see the stock fall to your stop loss point, but you are unable to take action. Maybe this is due to fear or disbelief that you are wrong, but unless you get out ASAP you could end up I major financial trouble! 8. Having an ego. I have seen a number of individuals enter the trading game that were extremely successful in other business ventures. Because of this they had a fairly big ego and thought they couldn�t fail. Their egos became their downfall because they couldn�t except that they were wrong and refused to bail out of bad trades. Once again, whoever or wherever you came from does not concern the markets. All the charm, powers of persuasion, number of diplomas on the wall or business savvy will not budge the market when you are wrong. 9. Falling in love with a stock or trade. Let me give you an example of what I mean. Back in the spring of 1999 EFAX was a really hot stock. I waited to buy it on a dip and did so at $19/share. It started to move up strongly and life was great! After a while though, it started to come back to my entry point and then below it. Here�s the problem. For some reason I really liked EFAX and sort of became attached to it. Ultimately I couldn�t let go of it even though I knew I should. I justified and rationalized why my dear friend should bounce back, but it never did. I finally had to break off my love affair when the stock hit $9. (Ouch!) The moral of this story is never fall in love, let alone get married to any stock. It can cost you dearly! About the author: Mark Crisp The Momentum Stock Trader Circulated by Article Emporium |
Abonați-vă la:
Postări (Atom)
