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How to become a successful day trader – finder.com.au

Have you been buying and selling shares a lot more frequently this year due to increased market volatility? Perhaps you’ve even made a nice amount of money doing so. If so, you might be toying with the idea of doing it on a more permanent basis.

Man sitting at computer looking at trading charts.

An active day trader reveals his best tips, tricks and advice to turn trading the markets into a permanent income stream.

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Have you been buying and selling shares a lot more frequently this year due to increased market volatility? Perhaps you’ve even made a nice amount of money doing so. If so, you might be toying with the idea of doing it on a more permanent basis.

The idea of being a full time day trader, or at least doing it as a more permanent side hustle, can be appealing for a lot of reasons. There’s the flexibility of trading from anywhere, at almost any time and having complete control over your trading decisions. And, perhaps the biggest drawcard, the potential for large and fast profits. Of course, this isn’t true for everyone and a lot of day traders, both new and experienced, end up losing more than they ever earn.

But how do you go from being an investor to a trader? Finder spoke with Justin Michael who has done just that, to learn how he went from investor to trader and get his tips for anyone else considering doing this too.

“My trading journey started back in high school in year 8 when I began trading sneakers. Then I delved into the bigger market of sneaker reselling, which I still do today. In doing so I built a trading mindset. I saw how you can purchase things, they can increase in value and then you can sell them to make profits,” said Justin.

“Once I turned 18 I jumped into stocks and just dabbled in it. I didn’t really know what I was doing until I started learning more and analysing the charts for foreign exchange markets and stock markets and now it’s become a second and third stream of income for me.”

Here are his best tips for becoming a successful day trader.

Pick your markets and practise, practise, practise

You can trade a lot of different things, from stocks and commodities to indices, foreign exchange (FX) and cryptocurrency. Instead of trying to become an expert at trading everything, it’s a good idea to pick the market you’re most interested in and focus on that.

“My main market is the FX market because it’s so active. You can be making money on the go every day. You could buy a stock today and it might drop then not reach back to your break-even price for a year. Whereas when I was trading FX, I could be making the same amount of money within a couple of hours,” said Justin.

Once you’ve picked the market you want to trade the next step is to practise.

“My number one tip is to practise before you start. You have to jump onto the charts and really get a good feel for it. Use a demo account and build confidence. I stayed on my demo account for two months practising reading the charts and testing different strategies and understanding how the markets work. There are heaps of free courses online that will teach you the very basics of forex and stocks. But it’s pretty much just practice.”

A lot of the larger brokers offer demo trading accounts so you can hone your skills before you dive in. For example, IC Markets offers a free demo account with access to MetaTrader4, the world’s most popular FX trading platform, so you can get familiar with the software and the different trading tools.



Set yourself specific targets, and stick to them

You can’t go in blind and hope for the best. You need to develop a trading strategy that works for you and stick to it. This means deciding how much money you want to trade in a given day, and when to take your profits.

“I work out my daily goal as a percentage of my return. So let’s say I have $200 capital and I need 20% profit a day, that’s $40. So once I hit my $40 profit that day I stop. If I have a daily goal of a 20% return on investment, and I make that goal in a few trades, then I won’t trade any more for that day. Because then I’ll start to get greedy,” said Justin.

Equally important is deciding when to cut your losses. There are tools available such as stop losses that allow you to pre-set the price at which you want to exit a trade to prevent losing too much money. This means you don’t have to worry about your emotions telling you to keep holding “just a little longer”, the stop loss will exit the trade automatically.

“I set my risk less than my profits. So if I was going to make 20% profit in a day, I might only want to risk losing 5% of my account. And if I lose 5% of my account in a day I’d stop trading for the day. Because it can go very quickly south from there!”

Don’t get greedy or become a victim of FOMO

Justin said the biggest mistake he made when starting out as a trader was letting himself get too greedy.

“There were times when I would see a good trade and I’d risk so much more than I ever should. I’ve blown many accounts and it wasn’t until I really became disciplined and followed a strict schedule and focused on compounding small profits that I started to make a bigger profit at the end of a week,” he said.

“If I know one day the trades aren’t working at all and I’m having no luck, then I’d just stop. Because you get FOMO. So I would just stop, reset and wait until I see something good again. Because at the end of the day you don’t want to blow your account just because you have the fear of missing out on a trade.”

Do your research and don’t let your emotions take over

News and current events are heavy drivers for what the markets are going to do, so it’s important to stay on top of it if you want to be a successful day trader. If you want to turn trading into a permanent income stream, you need to consider keeping up with the news as part of the job.

“A lot of traders, before they place a trade, will go online and see the latest news for the currency pairs that they want to trade, or when you’re trading stocks you look at the latest news for the company. From that you can see how it drives the market to do something. If you see there’s negative news, so if we saw in Australia there were a bunch of new COVID-19 cases, you would not be looking to buy the Australian dollar,” he said.

In terms of your emotions, the less you bring to your trading the better. This is in line with most investments like buying shares and property, too.

“You have to become emotionally detached from your money. When you become emotionally detached you’ll be a more successful trader because you can lose five trades in a row and win one and recover everything. So when you’ve lost five in a row, it’s not going to affect your life or your mental health,” he said.

“If the market goes against you, you’re not worried because you’ll just think ‘alright, I’ll capitalise on that again tomorrow’.”

Justin is sharing more tips for new investors and traders at a virtual event on Tuesday 21 July which is free to register for.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice, before making any trades.

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Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

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CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

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Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

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