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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.

This guide is sponsored by International Capital Markets Pty Ltd (IC Markets) AFSL 335692, an industry-leading Forex CFD Provider. Trusted by hundreds of thousands of traders worldwide, you can trade with spreads as low as 0.0 pips. Find out more.
CFDs and forex are risky investment products and most clients lose money trading. Consider whether this is right for you before making a decision.

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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Why You Need to Get Onboard With Blockchain!

Why You Need to Get Onboard With Blockchain!

Blockchain tech – so revolutionary in nature that some are calling it the “new internet.” It has applications in just about every industry, and has completely altered the way we think about internet security, the processing of information, and the speed of transactions.

Blockchain is the technology that supports the digital currency  or cryptocurrency called Bitcoin –

however this is not what it is really about as it has a far wider scope of applications and is being commercialized in a growing number of areas.

It has generated much interest in technology circles and beyond, because of the new possibilities it opens up in financial services, the public sector and other areas.

According to sites like BitFortune.net, blockchain tech is definitely worth keeping an eye on due to the myriad of benefits it provides.

Blockchain and Bitcoin are not the same thing – Bitcoin is implemented using blockchain technology, but blockchain technology can be used in contexts much wider than Bitcoin or other cryptocurrencies. so when we are talking about the blockchain we are talking about a combination of a number of technologies, these including:

  • Distributed ledgers.
  • The blockchain data structure.
  • Public key cryptography.
  • Consensus mechanisms.

Part of what makes it so exciting is that it is completely open source. As a result, there are already a number of interesting blockchain apps, and the number is growing daily.

The technology is so secure that it is already being used by DARPA to secure military data. Various governments around the world are working on ways to use the tech to protect their own data.
The tech is tamper-proof, and the data stored within it is permanent. It cannot be erased or altered, and this is what makes it so enticing to those needing more secure networks.

But there is more, folks. (Okay, so that sounds a bit like an infomercial, but the benefits are real nonetheless.) Transactions can speed across the network – taking only as much time as it takes for them to be authorized.

The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.

William Mougayar

The system runs without the need for an intermediary, and this reduces the time it takes to execute transactions. This, and the unique way that the tech works, means that costs are significantly reduced as well.

What makes it so revolutionary is that the information is spread across every computer within the network. With Bitcoin, that means the data is securely “backed up” over thousands of computers.

Now, it is unlikely that banks will entrust their data to a public network in the same way, but they have been working on creating networks of their own instead.

The potential savings in terms of cost and time are extensive. If you want to learn more about these savings, check out the infographic below.

 

Why You Need to Get Onboard With Blockchain!


Why You Need to Get Onboard With Blockchain!


Visit bitfortune.net . for more interesting Infographics

Guys did an amazing job and was allowed to share.


 

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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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