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Monday, November 23, 2009

Making A Living By Day Trading

By Terry Connor

There have been a ton of examples of people who started out day trading as a side income to becoming a day trader as there career mode. Day trading does have its risk but it can be very lucrative at the same time. Lets look at the Marty Forex scenario to see how a day trader makes not only profit but a living as a professional day trader.

At the beginning of the work day Marty Forex decides to purchase 100 shares of Forex-Trading Inc. Marty knows from watching the current trends that Forex-Trading is about to make a huge leap forward and it turns out he is right as the stock jumps a point in the next few hours. Since he is a day trader Mary wants to leave while he is still ahead so he sells off his shares in Forex-Trading Inc. Marty is successful because he is both careful and knows how to read the stock signs.

If the amount of profit that Marty Forex makes for this trade is $100 (obviously an amount simply for this scenario) he would most likely use half as account cover capital, and half as re investment. Of course, no one in the day trading game is doing any investing with $50; again, this figure is simply for illustration. If he makes five similar trades for the business days, with equally similar results, he will have made $500 of profit. Keeping with that theme, trading five days a week would net Marty $2500 of profit per week. (Commissions, overhead costs and other business expenses, realistically bringing the amount down to $2000 or less would reduce this figure.) This is still a nice bit of profit, considering that this is only one stock's trade performance. Marty Trader probably handles quite a few more trades than that in a day's time.

Considering that not every trade will make a profit, let's say that Marty handles ten stock trades per day, with the same profit margin as above. ($100) On the safe side, we will give Marty a win percentage of say, 30%, which means that for his ten trades, he sees that profitability factor on three of them ($300). Which will bring him to $1500 for the week, less the commissions and other expenses as mentioned above. Realistically, Marty can see a profit of slightly less than $1000. But, Marty is aggressive, so that amount will not satisfy him. He will hit the charts and study until he finds the right stocks that are about to trend upward. He will work until he gets his win percentage up near fifty percent or even higher. Welcome to the wonderful world of day trading.

Day trading is a skill and like any skill it is important that you get as much education and information before you begin to jump into the world of stock trading. For some who have that sixth sense that can pick the winner from the loser day trading can turn into a rewarding career. - 23199

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If You Are A Newbie Then You Must To Learn How To Trade Stocks

By Sam Nielson

If you wish to learn how to trade stocks you should not be disheartened that you will not find one-answer-fits-all solution. This is because each person that wishes to trade in stocks will have their own opinions about which stock they should and should not buy and also how long they should hold the stocks for.

Nevertheless, there are a few things that each trader in stocks will want to learn about and understand. For one, it is necessary for you to determine the period for which you should wait and what level of risk is suitable for your needs and also the numbers of stocks that you can afford to buy. In addition, you will need to also look at factors such as price, timelines and risks.

People that wish to learn how to trade stocks will, if they are conservatively minded, want to keep risks to a minimum and so would be better off choosing a few but steady blue-chip stocks. GE is a good example of a low risk blue-chip stock and you can easily hold this stock for a couple of years or more. At the same time, you have to also accept the fact that such stocks generally do not appreciate in value in the short term.

This is because it is easy to miss out on good deals. In fact, each swing or dip that is missed by the trader would mean missing an excellent opportunity to buy or even sell and make a tidy sum of money in the process. And, such chances may not come up again too often.

Another aspect to mastering how to trade stocks is that you need to understand how diversification can prove to be beneficial for you. Without any doubt, if you purchase a good number of different stocks you will be acting more safely because losses in some stocks will be balanced by stocks that are appreciating.

According to experts, it pays to purchase between thirty and one hundred different stocks; however, this may not always be the most practical solution and you also won't earn quite as much money in this way as you would want to.

So, in order to learn how to trade stocks it is necessary that you do not confuse the shares in a company with a contract or agreement between two parties (an option). This means that you will not be, when trading in stock options, buying a stock outright and instead you will be entering into an agreement and this is why the latter case works out to be cheaper and also more profitable.

These stock exchanges are all controlled by the US Stock and Exchange Commission that is a watch dog as well as regulator of the entire securities industry in the United States. In addition, it also provides programs that help in educating investors about among other things learning how to trade stocks. - 23199

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Invest In Gold During Periods of Inflation

By Garrett Strong

Gold is the go to money in times of inflation and economic crisis. Gold is a hedge against inflation. If you are saying to yourself right now that gold is not money, and that it is just a shiny relic that people wear around their necks, then you are dead wrong.


Gold has been money for over 6,000 years. Gold and silver were the first forms of real money that met the requirements of sound money. Plato and Aristotle spoke of sound money to be


1. The ability to be durable. It must stand the test of time and not wither.


2. The ability to be portable. Good money needs to hold value in a small space.

3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it's own value.

4. It must hold a rare value or quality.


Those four requirments are important because Plato and Aristotle knew something that most people today are not aware of. Our paper dollar, and all paper money for that matter, do not meet any of the requirements of sound money.

Paper is paper. It can be made on the spot and printed at will. Paper is neither rare or durable. The trust that we put into paper is the only thing giving it value at this point.


A dollar bill is nothing more than a piece of paper with ink stamped on it. That's it. It would be the same thing if someone gave you a sheet of writing paper to mow their lawn. There is no difference between the two. The two are paper.

If someone gave you oil, silver, copper, or gold to wash their car then it is different. Those are real assets. It indicates hard work and sweat to bring those assets about.


Since our government can produce as many dollars on demand as they want, the more they print the more worthless our money becomes. This means that a dollar collapse is happening under our noses. That is the sole reason gold and silver were the first and only currency used for thousands of years. Gold and silver can not be produced at will.

Mining companies have to put lots of money and resources to even get close to producing any gold or silver. Energy and time is consumed in this process. Paper currency is a relatively new thing in world history. Since the start of using paper as currency, and there have been hundreds, all of them have failed.

Gold and silver coins have proven throughout history to hold their value and hedge against inflation. While fiat paper currencies plummet, gold will continue going to the moon.


Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It's because gold can not be inflated. What does inflated even mean?

If you inflate a balloon, then the size gets bigger. Our dollars are experiencing the same such thing. If our government keeps printing money, then more money will be in circulation. You see higher prices because you have more dollars chasing the same amount of goods.


Inflation does not mean higher prices, it simply means printing more money. Higher prices are the result of printing more money. So, get out of dollar related assets now before you lose out big time.


Gold, silver, gold bullion, silver bullion, and mining stocks are the only assets you should be invested in right now. China, India, Arab countries, and others are diversifying out of dollars as we speak, and India's central bank just purchased 200 tons of gold from the IMF. You decide if it's time to get invested in gold and silver.


God bless. - 23199

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Reasons To Invest In And Around Houston

By Duke Morgan

Low Cost Opportunities

Recession has left property valuation in the US at rock bottom. Still one can earn a handsome profit in short term if Houston investment property is purchased after shrewd planning.

Tourist destinations have always been money churning machines. In fact, when deciding on the right investment for short term, the parameter to keep in mind today is location. Places like Houston and Las Vegas hardly have any off-season and are thronged by tourists all around the year, thus pushing up the property prices. The way to go today is to cash in on the lower off-plan prices. They are invariably a more profitable deal than investing in completed projects of similar scale and locations. An extension of this strategy is to "flip" Houston investment property, where the units are sold off before their completion. The profit making opportunity occurs because of rise in value of the unit as the project nears completion. Now to successfully employ this strategy one needs to clarify the re-assignment rules of the property before finalizing the deal. Certain owners charge a percentage of the purchase price as a fee for allowing re-assignment of property.

Know When to Buy

Real estate players have taken numerous steps to encourage investors. They have been offered friendly and flexible payment plans like an installment system. They are at times asked to pay at the time of the completion of the project with a small amount deposited when they enter the investment. In terms of the project life-cycle, the earlier you enter the deal the better it is. Earlier entry into Houston investment property comes with the privilege of first right to the units. This way the investor can choose the unit most likely to get a good price.

Plan for Risk

The most important lesson to learn in any type of investing is the art of risk management. In the Houston property market the investor will always have a lot of choices. The key is to select the area that suits his needs and is the most attractive one based on parameters like appearance, location and facilities.

Another important angle to consider is the exit strategy. Investors should have a plan of action whereby they are ready for instantaneous bail-out in case they have to liquidate the investment at a short notice. This includes a back-up plan if market falls and you cannot get a buyer.

ROI

In spite of the impending economic recovery, the market is still not very profitable in the short run. The long-term story is entirely different, Houston property rates are expected to boom after a few years and coupled with rising rent rates this forms a brilliant money making opportunity. To add on to the benefits, one can lap up one of the profitable ventures in the pre-release stage, thereby ensuring a discounted pricing. - 23199

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An Overview Of ETF Trading For Beginners

By Patrick Deaton

There will be a learning curve involved in becoming a successful ETF trader. A person will want to do the necessary research, take classes, and follow the websites, blogs, and forums of successful traders to learn the intricacies of ETF trading. When a person is learning to trade they will want to have a solid understanding of ETF and what to expect when they begin trading.

A person will find that there are many classes, courses, and books offered on the Internet regarding ETF and ETF trading. When selecting a course or book, it is important to research the company or individual carefully to make sure that they have experience with ETF and knowledge of the types of strategies that are needed to be a successful trader.

The ETF industry is gaining popularity at a very fast rate. As more people and companies have learned of the many benefits and advantages of ETF training the industry has grown to almost twice the size it was in 2008. The flexibility offered to traders and the lower fees are just two of the benefits to traders in this market.

A trader can buy and sell throughout the trading day. This is completely different from the regulation requiring mutual fund trades to occur at the end of the trading day. The advantages to the trader of being able to proactively trade stock through the day make a significant different in the amount of gains they are able to see in their trading activity. This, coupled with the fact that changes occur in the market at fifteen second intervals, makes the ability to trade in this way advantageous.

ETFs are regulated. For individuals who want to trade in currency, the big difference between ETFs and Forex is the fact that Forex is unregulated. In addition, Forex trades 24 hours a day, 7 days a week. ETFs are traded in the regular trading day, five days a week. ETFs are tracked on the indexes such as the S&P 500 or MSCI EAFE. The baskets each have their own symbol as are other stocks. The value of ETFs are weighted averages of the combined total stocks and bonds for a sector.

ETF traders are able to use all of the same orders as with other stocks. A trader can use a limit order, bracketed buy order, stop-loss order, etc. A great benefit of ETFs is the ability to short sell at any time. Stocks may not be sold short is the price of the stock is below it's last price. ETF traders can take advantage of a drop with a short sell when the trade is warranted without worrying about the last price of the stock.

Some people who are just learning about ETF trading have had an option for ETF included in their retirement portfolio. Many large companies are finding that long term ETF trading provide a steady growth at a low risk to the portfolio of the investor. Some of these companies are buying creation units to allow for more diversification within their programs.

Learning about ETF before one begins ETF trading will be very advantageous. An individual will find that the structure, methods and strategies for trading will be much easier to navigate with a solid foundation of knowledge regarding ETF. Talking with an individual who knows ETF, ETF trading, and the various types, methods, and strategies of ETF will help a person to move through their learning curve more quickly and begin successful trading. - 23199

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