Online trading is a subject that divides very users because the opinions about his actual ability to truly bring earnings to those who decide to delve in. Many of you seek practical tips for quick cash, although in our view it is very difficult because to build a profit, like any self-respecting intellectual activity, requires time, dedication and ability.
No getting around it: some things are not for everyone, people have different learning abilities and different predispositions. Obviously, this does not mean that those who are not able to operate in both stupid online trading, indeed probably has qualities remarkable in other areas where it can excel. The writer, by choice, not this topic is almost never because it believes it has enough skills to be able to provide a comprehensive guide to readers. It is no coincidence, moreover, that the blog officially promotes two guides related to asset management in a “safe” (no stock exchange and the like) and the optimization of your monthly outgoings. However, given the increase in demand also in private with questions about this subject, we decided to write this article on online trading taking advantage of the valuable collaboration of Patrick Miller, with many years of experience in the field and author of many writings. So, we have thus decided to ask him some questions, in order to obtain clear and easy answers for those who want to approach the subject.
With online trading, you can definitely earn and also good. However, you have a little ‘understand what is meant by “short time”. If to earn in no time we understand that today have to study how to trade and the day after I become fully operational, then the answer is no! You cannot earn so little time. If, instead, for a short time mean a few months of study and practice, then yes! You can start earning in no time. I want to deepen a bit my answer because it is very important that the readers of your blog to understand the fundamental concepts about trading. Online trading is nothing more than an economic activity which consists in applying a series of techniques and the way in a right moment. It is a bit like some sport where to win you very specific techniques are used, designed to overcome the various obstacles that arise during the competition.
If the techniques are applied to perfection, the trading goes your way and then you earn in time. If instead, they are the wrong time, they misinterpret the signals of the market, you tergiversate or dithers, the trade will consequently evil and you will lose money. To learn the sport techniques instructors make them repeat ad, in so that then the athlete will apply them as a reflex without thinking “now I have to do this in this way, something that puts her foot so and so”. In trading activities, it is the same thing! You have to learn the techniques and then testing them out, as long as these do not become automatic and take effect as a conditioned reflex. Obviously, it is necessary to try and try again after a long period in which it “will work” simulation, thanks to some platforms that allow you to trade with virtual money. This simulation period depends on the speed with which we intend to do online trading. If we are content to make the investor, that is what I try to buy the smallest of a business cycle and which then holds the securities in the portfolio for years and years waiting for the maximum, you can become operational in a month or two . This is because the large time available, to think about the next move, let you do not have to develop your own over-conditioned reflex. But if you want to become more and more speculative, up to the activities of “scalping”, i.e. investment hit and run with strong economic levers, allure time to reflect will reset and must be timely, and for this reason, it goes on throughout the conditioned reflex. For this type of trading is also necessary to train for six months or more, for each type of investment in which we want to challenge themselves!
What are the requirements that you consider essential to approach this activity?
The requirements needed to do well online trading are all mental character. You must have some self-control and the ability to not get carried away too much of the emotions. Because when we invest we are going to commit a portion of our savings from the sweat of the brow, it is logical that we are going to suffer a certain tension when we move the graph of stock prices.
See your stocks go up or down can make to try strong emotions, ranging from euphoria to utter despair, through the panic, anxiety or excitement. Are the same moods that pass gamblers! Now, if you are not mentally stable, you can risk getting into trading addiction and for so need to be able to operate with a certain emotional detachment. Apart from that, to trade profitably they do not need qualifications sounding or something. Just knowing how to interpret the stock market charts, know how to count and not be stubborn as mules.
On the net, you can find everything: websites, info-products, courses of all kinds. Considering that education is essential to undertake what, we both agree, is a real professional activity, as can make an ordinary citizen short of financial concepts to distinguish who sells smoke from those who sells competence?
A good rule for understanding, in any sector, if we are in front of a snake oil salesman, is sure to see if it’s too good to be true! The snake oil salesmen identify them immediately because they are the ones who, according to the field in which “work”, they sell the miraculous method to do …, the magic pill that …, the thing that “no one” has noticed yet. .. And so on. There is an advertisement, that makes me really pissed every time I invasively appear on the PC screen, which says that this guy has earned more than 600 $ in a quarter of an hour thanks to investments.
Advertising changes according to fashions: the first was with online casinos, then turned to the shares, then with the forex, lately with binary options … It could also be true that this guy once gained 600 and passes $ in 15 minutes, even to me a couple of times it happened, but I highly doubt that will guarantee you the same gain! In fact, when I earned 550 Dollars once in about ten minutes, these were the result of a week of analysis on a trade to do, where I had to wait for all indicators “align themselves” in the right way and then, with a paw, in 10 minutes I brought home the money. But we are talking about an operation lasting one week where I still invested 2,500 Dollars with a lever 80 … If I will proposes a course in which I say that in 10 minutes I’ll earn 550 Dollars, I’d be selling the smoke! This is because, although it is true that a few times I was able this thing, it really is not true that you earn that money in 10 minutes. But you would sell smoke even if I told you that a week and I’ll earn 2,500 EUR 550 dollars, this is because the weeks are all different. Very often I happen to earn a lot in a week with a different positive trade carried out and maybe not then chances are valid for two or three weeks in a row. For this reason, those who sell solid training never promise a certain outcome in terms of numbers.
You cannot do it because there is no way to know the future. The only thing you can do is to teach the methods and techniques which, if properly applied, have a statistical probability of out actively for each operation, greater than those of out passively. Then, how much you earn over time depends on only and exclusively by those who apply the method, how long have the dedication, how good it is to apply it, the ability to react quickly, the ability to control emotions, how can invest and finally also on luck. The first way to tell if you buy real training is to see how the author proposes what sells. If it seems to Barker probably it is. An additional method to check if you are in the presence of real training is to see the author’s activities.
Is online trading risky? It’s true that you burn money like anything?
Trading is risky as it is across the street. From little mom teach us that, if we have to cross the street, we must look first to the left and then right to see if there is none, and when we are sure we can get off the sidewalk and then cross. And is a task that we perform thousands of times a year and generally we leave it healthy and sound. Make online trading is the same thing. You have to look at the graphs, recognize situations and dangers and then face the market with the techniques known that you have to learn. If you are not careful, end of the year we will be alive and well and with more money than before. If we throw at random, as if we were to put across the street blindfolded, hardly would remain long unscathed … So yes, trading itself is in itself can be very risky if you deal blindly, no more and unless we play roulette, with the risk of burning a lot of money. If you know what to do, the risks are reduced greatly and become comparable to those of leading a normal professional activity.
Can I try my hand in online trading even though I have a full-time job? How much time should I devote a day to get concrete results?
Of course, you can do trading even if you have a full-time job, but your operation will be limited to particular strategies that absorb very little time. For example, if you specialize in long investment period, those for instance ranging from 3 or 4 years, even up to 7 or 8 years (depending on the duration of the business cycle), the time of day to devote to this activity will be about 10/15 minutes you can do even when the stock exchange is closed. It is an audit that everything goes as planned, in which you place the stop loss and things like that. In practice, it works on the charts with the indicators. The only time when it absorbs more time is when you arrive at points of market turning point where we have to open or close the position and maybe we need to do more in-depth controls gradually and it also absorbs a couple of hours a day for a few weeks. It is also true that this type of strategy involves the low yields, which hardly exceed 10/15% per annum. If you want to earn more money, then you have to focus on smaller timeframes, such as investments quarterly, monthly, weekly, and so on. The quarterly cycle is the one most frequently used and allows you to take advantage of the 10/15% variation between minimum and the maximum of the cycle. Exploiting only half of the excursion and using an investment with a low leverage (two or three), you can take home 20% per quarter. Obviously, this greater gain comes from increased employment. Over the medium-term investments necessary to engage at least one hour a day for routine checks, as well as 2 or 3 hours a day in the days before the turns of the market.
If we compare the time spent on this type of period, compared to the long-term, it is easy to calculate that it takes more than four times the time in this business. As it points to higher earnings, the more time you have to devote. Who wants to invest intraday to earn a salary, having to reduce capital requirements, will have to trade his time in exchange for the revenue. In practice, it must work throughout the trading day as if it were an employee.
So, rather than asking how long you have to use to take the online trading activities, it would be better to start from the opposite assumption: analyzing your day and your work and see how much time you can devote to trading. Depending on the time you have available, you’re going to invest in the time most suitable to your situation.
Make online trading is a business ethics? I heard that if you’re making money, they’re definitely taking off to another…
I think it is an ethical activity for a simple reason: when you trade aid the economy. Companies do not go public to please investors, but because they need capital for expansion of its activities. Every company to receive capital can bet on three different roads: take out a loan, the issue of bonds, sell part of it. The stocks are the way to practice third way. When you buy shares of a company that enters the market, it is basically financing by becoming a member. Later, when you buy and sell shares allow others to be able to buy and sell securities. If you do not speculate on the market could not be more liquid bonds, who would invest in a company would find itself with immured alive capital, this would make the investment too risky, and eventually no longer would finance businesses.
When you play for investments, any level, from the scalper, you’re investing or allowing others to invest in the economic growth of businesses and the economy. This produces useful goods and jobs. So this is an activity ethics and fundamental. As far as the next thought, you know that this consideration, though true in the short term, is really a legend metro when we move in the long run. The bag is not as everyone thinks zero-sum activity! In the bag, there is a listing of the entire world’s economy, so, in essence, all the money in the world. The world economy apart from some rare cases lasted short periods; it has always been growing and therefore has generated growing wealth. The bag is then a “game” positive-sum, so the money earned by X do not have to be lost from Y but may simply be a new issue. So in the short term, that is, the daily exchange or at least in the short term, the game might look like a zero-sum with money moving from the pocket of Tom to that of Caius, but the sum of the assets in the long term exceeds that of liabilities. If it were not so, no institutional investor would take his money in the stock market … I often hear talk of trading platforms in order to perform this kind of activity. You ‘really need to use these platforms, or if you can do without? In which case you decide to use them, how to choose the one that best suits your needs?
It depends on the type of investment you want to do and the time periods that you want to exploit. If you invest the quarterly cycle up, you can safely use a regular online bank account with the file open titles. If you want to invest in shorter time spans, using levers, or in markets such as currencies or commodities, then, in this case, you must use a special platform and not the normal bank account. I will use one basic but very efficient and intuitive that you call 500 plus. Some allow you to invest in all types of financial products; others specialize only on the forex or just binary options and so on.
There is the right platform for all occasions. Meanwhile, you must check those regularly, to be sure that you do not take some rip. Then you have to see what kind of investment you want to specialize and then choose the platform that provides the best conditions on the basis of what you are trading. Net control the function of calculating capital gains and losses, and then easily perform tax calculations. The platforms generally do not pay capital gains to the state, but they give you the gross revenue and then you have to drop them in the tax return. If you use the normal current account capital gains turn it themselves to the state.
One thing you should not miss is the simulated trading system, also called demo, to be used to train and practice. Then it is advisable to have an intuitive platform and with the possibility to set the graphics in an optimal way. What I recommend is to try them all in demo, until you find the one that best judge for your specific needs
When is should buy or sell shares? How can I keep up to date in this regard?
The shares are bought or sold when we are witnessing a turning point in the market. What does it mean? It means that changed the direction of prices. You buy shares when the market ends up a bearish trend and begins one bullish. Conversely, you will sell the securities when it ends and begins an uptrend bearish one. To understand when the market turn, will use the set properly indicators to highlight these phases. You will never have 100% safety as captain also false signals, but a trading system done well will give you at least 75% in favor of probability which means guess three times out of four.
When soothsayers let it flow until the quotations new turning point when it fixed a wrong exit point to limit losses. If you do this well, then for sure thanks to online trading earn money over time. In order to derive the information and keep updated, you can read several newspapers and specialized websites. It ranges from the classic to your blog or thematic sites easily available online, such as Yahoo Finance. This will at least get to know the macroeconomic data and industry analysis. However with regard to the prices of individual securities, you can very well use the investment platforms in demo mode.
Thank Patrick Miller for the valuable contribution he has wanted to offer us: thanks to his intervention we were able to put down several themes we have so far developed recently on these pages. The hope is that this long analysis can be of help to those who want to try your hand in the field profitably and with the right maturity that it requires.