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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.



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


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.
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Forex Trading Knowledge Questions and Answers


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Forex Trading Knowledge Questions and Answers
What Is A Demo Account?
Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.
Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.
How Does A Demo Account Work?
Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.
A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.
How to Open A Demo Account?
In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.
Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.
Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.
You will obtain login details after registering with a trading program. You will be able to open an account.
How Long Do Demo Accounts Last?
Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.
Why Is It Necessary to Open A Demo Account?
Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.
What Are Advantages of A Demo Accounts?
Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.
A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.
Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.
The Differences Between Demo & Live Accounts
A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.
However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.
Can I have Multiple Forex Demo Accounts?
You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.
If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.
There are brokers who will only allow you to open one account of each type per email address.
As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.
In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.
In any case, you should practise on a demo account until you are really proficient.
Is A Demo Trading Account Free?
Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.
How to Choose Forex Accounts?
Different accounts have different settings. Before you open a trading account, you should answer the following questions:
How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.
What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.
Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.
Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.
Can I Take Money Out of a Demo Account?
Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.
As a result, any profits you would have made would be ineligible for withdrawal.


Forex Trading Knowledge Questions and Answers
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AvaTrade introducing 3 new crypto pairs


AvaTrade introducing 3 new crypto pairs – updating 3 others
AvaTrade has yet again improved their cryptocurrency trading offering.
AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.
These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.
Asset | Typical Spread | Leverage | Margin | Min Nominal Trade Size |
NEOUSD | 1.5% Over-market | 2:01 | 50% | 10 |
EOSUSD | 2% Over-market | 2:01 | 50% | 10 |
MIOTAUSD | 1.5% Over-market | 2:01 | 50% | 10 |
To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:
Asset | Old Symbol | New Symbol |
RIPPLE | XRP | XRPUSD |
ETHEREUM | ETH | ETHUSD |
LITECOIN | LTC_Mini | LTCUSD |
These new pairs have also been available since July 1st,
The trading conditions for each one is identical to those of the older respective assets they replace.
Effective immediately, new positions are only available on the new pairs.
Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.
Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.
as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.
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Neteller Launches Cryptocurrency Exchange Service


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Neteller Launches Cryptocurrency Exchange Service
Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.
They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.
Neteller and Cryptocurrencies
Neteller is a service which is operated by Paysafe Financial Services Ltd.,


paysafe
founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.
Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.
But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.
So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.
As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.
It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.
Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)
We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.
Conditions for buying and selling cryptocurrencies through Neteller
The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller
The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.
When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available
The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.
The fee rises to 3 percent for wallets with other default currencies.
Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?
At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.
The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.
Last July 25, Paysafe ( which as you remember is the company that owns Neteller
We could now see that this was like their test run on this concept.
We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.
We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think
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