Can You Day Trade for a Living?

Posted by admin on February 26th, 2010 and filed under forex trading | No Comments »

It is very often that people often ask if is possible to become a day trader, and day trade for a living.. The answer:: “Absolutely yes you can!” However, you must receive professional training to become skilled in online day trading.

There are many very good websites about Day Trading that offer good information about training. Just type “day trading training” into the Google search engine.

Exactly how much do you have to to earn each week to start to day trade for a living? How much would you need to replace what you make from your current profession?

People need to know what they need to earn in order to day trade full time.You need to know what you need to make each week and plan accordingly.

Let’s use an example and say you need to make 100,000 dollars a year to leave your current occupation. Let’s look at whatyou must do to earn this kind of money trading.

100,000 dollars a year is about 8,000 dollars per month, or 2,000 dollars each. We are considering you take a couple weeks off,naturally.

It takes is knowing what you are doing. You learn this by getting yourself trained by a professional day trader that is successful.

Have you not heard that before? Is this not the case in becoming successful in any profession?

Once you learn a professional method, you must practice. Practice on a simulated account until you have complete confidence in your chosen trading strategy, and more importantly in yourself.

Assuming you choose to trade the S&P 500 Emini and your goal is to make just a single point each day. It would be required to execute 10 contracts on every trade. The requirement is around 1000 dollars per contract. Do this and you will reach your goal.

Attaining your goal is the key to trading success. Most importantly, you must have a sound trading strategy, and it must work effectively in the market or markets you trade.

It is imperative to master your day trading system and follow your money management rules.There is no magic. Becoming a professional day trader requires dedication to your education as a trader, and commitment to developing your skills.

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Forex Basics

Posted by Frank Rivera on December 3rd, 2009 and filed under currency trading | No Comments »

The foreign currency exchange market is quickly becoming one of the fastest growing investment choices in the world. More than a trillion dollars each day is exchanged on the forex market. This is a truly global market that operates 24 hours a day. So why is this massive marketplace becoming so popular and what is forex?

Trading on the forex market is simply the act of exchanging the currency from one country for the currency of another. When the values of those currencies alter, you trade back for your original currency again, hopefully with a profit in your hand at the end of the trade.

For example, if you’re beginning with the US Dollar (USD) and trading it for the British Pound (GBP), then you hope that the value of the USD goes up or appreciates in value. When the price does go up, you trade your GBP back for your original USD and you receive the higher amount back again.

The difference between what you bought and sold it for is profit and it is kept track of in a unit of measurement called pips. Pips are the basic unit in trading currencies. Your goal as a forex trader is to gain as many pips as you can.

There are a lot of different strategies available to trade forex including scalping, swing trading, and trending. Scalping is one of the most popular methods of trading and it utilizes a lot of quick, small transactions. You decide to buy a certain currency and then you sell it a few moments later. In this manner, you can gain a lot of small profits and hopefully minimize any risk to your account.

With so much growth in the forex market, there are obviously a lot of different people involved. You will find that there are a lot of products and services that you can purchase to help your forex trading. Everything from coaching programs to robots that trade for you will be pitched and promoted. If you’re new to the market, it is probably a good idea to get some kind of guidance. Without it, you will probably lose a lot of money fairly quickly. However, you want to make sure that you investigate any product thouroughly before you buy it.

Digital products, or informational books that you download to your computer, are a great idea. The only problem is that you can’t verify what’s inside until after you’ve paid your money. Always see if you can find reviews for the product you’re considering. Join forex-related forums and ask questions of actual traders who are using the programs and systems you want.

The same rules apply when it comes to choosing your forex broker. The foreign currency exchange is a global market and the internet is a global medium, so if you don’t check where your broker is located, you may find they’re operating from a country with less-strict regulations. If you can, try to choose a broker operating from the same country in which you live.

The forex market can be very profitable, but at the same time it can also be very volatile. Spend some time learning about how the market works and understand some of the jargon before you jump in.

Heard about an currency trading software? They work amazing and can double your money in only a few months. Check out this automated forex strategy here!

Technorati Tags: careers, computer, currency, currency trading, finance, forex, internet business, investment, money, small business, software, stock market, system, trading

Is Forex for Me?

Posted by Thomas H. Rivera on November 26th, 2009 and filed under currency trading | No Comments »

The forex market has emerged as one of the biggest opportunities for savvy investors in the world. Many people have turned to the market as an alternative to the stock market. While it obviously has some clout behind it, how can you know if it’s right for you? What is in it for you and how can you profit from it?

In a nutshell, forex trading is about taking a pair of currencies and their exchange rate; and playing off how that exchange rate varies on a day by day (or month to month) basis. You’re not betting on the performance of a company, you’re betting on the fiscal reputations of countries. There’s less research involved, and you have the advantage that it’s very difficult for currency values to plummet as rapidly as stocks can and do (and have, recently).

That said, the opportunities in forex don’t allow quite as much growth potential as a stock program can, and forex trading is more vulnerable to inflation and currency devaluation moves by governments. Unlike a stockholder, you don’t get a vote (or proxy vote) in the operations of the nation whose currency you buy. Forex trading is a 24 hour a day opportunity to make trades, with a span running from the London open to the Hong Kong close, meaning it spans more than five working days if you let it.

There is endless opportunity for profit in this business. You can set up huge manual trades when you notice a trend starting that can net you 1000’s of pips in profit. This can amount to you making 1000’s of dollars in a matter of minutes or hours. Anytime there is that much potential in one place, people start to take notice.

A lot of traders try to automate the grind it out aspects of forex trading; these are automated trades that are programmed with ranges of acceptable values and buy and sell orders queued up if a condition is met. This is no experience for doing accurate research on your own, but can let you have the freedom of mind to, say, get out of your chair and use the bathroom without panicking that a market shift will wipe you out. There are some who take the (decidedly unwise) view of not even learning much about forex markets and letting the computer software do this for them.

Forex is a good way to pull in a decent income working from home. It’s not the road to automatic easy riches, it’s an investment. Like other investments you have to pay attention to it to avoid disasters, and the risk of disasters in forex is as large as the potential gains, especially with leveraged brokerage accounts. Still, it’s a good way to make a lot of money working from home with nobody breathing on your neck.

The earning potential for good forex trading starts at about 40K a year, and can easily exceed 500K a year for a decent private investor. We recommend starting out small, and using conservative strategies to get the basics out of the way first. Think of them as training wheels before you start trying to swing 30,000 dollar trades on borrowed money.

If you’re the sort of person who lives for being wired on coffee, staying inside for a– hour trading day, and staring at a computer screen, forex trading may be for you – even if only temporarily. The real secret of forex day traders is that the successful ones get out of it and retire, and retire early.

Wanna see an automated forex trading system? It works absolutely fantastic and can double your money in only a few months. See this forex trading software here and turn a big profit!

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Trading Systems: Money Management

Posted by Maclin Vestor on September 10th, 2009 and filed under forex trading | No Comments »

How to manage money when buying stocks, futures, or options — what you must know before you buy.

Many people have a very crucial problem, they take on more risk than they can. It really doesn’t matter if you’re very young, if you take risk to the extreme and continue down that path, you will by mathematical law in all probability lose money.

Lets say you had an almost sure investment that was 85% likely to succeed. When it succeeded you double your money. You put all your money on it. The problem is, when the investment fails, you lose everything. Now it is just a fact that you will eventually lose everything if you continue to invest everything. You only need one trade and you are wiped out completely. Now, even if you invested 90% of your money on an investment that would win 80% of the time, you still are taking on too much risk to win in the long run. If you lose once, you will need a 1000% return just to get back to even. That simply will not happen forever, and even if it did, the large loss would limit your potential for gain so much, that you’d be better off not taking on the maximum risk.

Now, your risk of losing everything can never be completely 100% eliminated, even with conservative strategies. If you flip enough coins, eventually you’ll get a very rare event such as 100 heads in a row. However, you’ll also get 100 tails in a row. The idea is that you have a strategy that yields you more when you win, and/or wins more than it loses. in this case there will be several losses in a row, but there will also be several wins in a row. If you manage your money properly, you will still have enough money if you get several losses in a row, to be able to more than make up for it when you get several wins in a row. If you are forced to limit the amount of capital after so many losses, that you cannot invest with the same amount after the losses, you may be unable to win enough to make up for those losses. The idea is to keep your investments small enough to limit the chances of that happening. Although almost nothing is a sure thing, by using proper money management, you tip the odds in your favor.

Even if you have a profitable method, if you do not manage your risk, your profitable method becomes unprofitable. It’s not usually the investment vehicle, it’s the investor that ultimately determines how quickly you fail, and ultimately whether you are able to succeed. Under the same context, it’s not usually the type of car, but the driver that determines whether you cause an accident. In order to protect yourself, you must keep your positions at a manageable level, and make sure to keep yourself limited by these rules that will limit your risk of ruin and keep the odds in your favor so you can stay in the game.

So how exactly does one manage money in a trading system? You need to determine probability of a move taking place. If you buy OTM option, the stock will have to move larger for success to occur. Of course if it does, the reward will be greater. There are probability curves based on a random walk theory that will assist you in determining the probability of a move taking place, until you know any better, use these. However, you also should use your own records of your system Determine both your risk/reward (your average % win divided by your average percentage losses, and in addition figure out your likelihood of success. When you do this, you can use what’s known as the Kelly Criterion By using the formula as follows Kelly % = W – [(1 - W) / R] Kelly % = The maximum percentage of your capital you should invest per position. W = Winning probability R = Win/loss ratio

A trading system that contains good money management rules will not only outperform one without, but it will also help protect your capital, and keep you in the game.

Maclin Vestor teaches about stock market investment advice. You can even learn about finance, money management, and figuring out finance at his blog.

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