The benefits of working with a trading firm can include free training, being surrounded by other successful traders , constant trading ideas, greatly reduced fees and commissions , access to capital and performance monitoring. Hi Nial, Brilliant article. Thank you for reminding me to be patient. From my experience, learning how to decide what market to trade in FX is important. Average minds discuss events. Eat dinner and then start watching the asian markets, wait for Europe to open and watch squawk box europe and then go to bed and do it all again.
So, is trading options for a living possible? Yes, but it takes time, desire, and effort. Trading for a living is not a hobby nor is it anything short of running your own business. It is not like in the movies where they scream at their brokers on the phone to buy 1, shares of this or that and make a million bucks.
Forgot the hedge fund question. I work with a small group of other prop traders. They have been approached a few times, for prop firms and hedge funds. I have considered it, however most are based in London I'm from the UK and I am not willing to move at this point. So discussions have never got past that point. My first attempt lost 15k, and here were the issues: The second attempt was shared with my father, trading his money.
The third attempt, I wanted to go out on my own again. I was starting to believe in my skills. Edges come and go in the market, but in this case it was trading one volatile, high beta stock and becoming an expert in it. The day I decided to try this style of trading I became profitable. Then the stock started trading differently and the edge went away. But, I had done it I knew I could trade profitable when the opportunity presented itself. So that is the progression of the beginning of my trading career.
I've continued to adapt to the market, and enjoy waking up to trade every day. Speaking of which, the opening bell is in two mins I agree about the edge changing over time. I think being dynamic offsets the likelihood of getting married to a stock or making the same mistakes repeatedly. I've been investing for a living for about 7 years now.
I lost money in the beginning until I started learning fundamental analysis, reading SEC filings like crazy, and really getting to the hang of finding undervalued stocks.
I don't think it's for everyone, but I love it. You are probably busy as hell, but chime in more often in We sure need a seasoned guidance. And most of us do not start with a lot. Everything- balance sheets, current ratios, dilution, everything. That's where you get the true picture of a company- not in their press releases. I hope this isn't too forward, but how much were you making on a daily basis before quitting your day job?
So glad to be out of all that crap! It's those who learn from their mistakes and grow that break through that barrier and become profitable.
If you want to trade, expect to blow your account and lose thousands before you "make it. I've gotten where I get more scared when I make money than when I'm losing. I've only made one trade for a loss though, the rest of them I just keep holding until they go up. But what I mean is, when I make a bundle and I'm not really sure why, then I feel like I could lose a bundle and not know why either.
I do research, these days anyway, but research doesn't tell you everything. So if I take big profits on a stock, I usually have to wait a week or two before I feel safe to invest it again.
The psychology of stock trading is pretty interesting. You may want to work on finding something that'll tell you more often than not why a price did what it did.
Indicator, news, research, pick your poison- either way, you need a system that can be repeated successfully for years. You're right though- psychology is interesting. Definitely the worst enemy of any trader. Best to let your system do the work for you. Here's an example, SGMO. I bought in pretty low, like 11 or 12, expecting steady but strong growth. That was happening, then on the 9th they cut a deal with Biogen and the price went up to 19 or so.
Not sure how I would have known that in advance without being an insider. There are ways to get an idea, indicators, techs, whatever. It looked like an obvious move to me on the monthly chart. I do part time my bro does full time. We trade option spreads he has his home paid for all his cars and we bank well. It all started when he found someone to invest with him, the guy put in k and in five months it was k. We just decided to make a youtube page to teach. I have been ding it for 5 years and he has been doing it for But since my brother found that one guy all the returns are documented with the broker we trade with so since then people have been throwing money at us sorry for the typo.
Mind describing your strategy a little? Swing trades, vol crush, deltas? Don't need exact specifics, just curious. Basically weeklys sometimes monthlies, it depends some volume crush, last week in that link for our page I sent you I had my trade on the SPX.
We pretty much do call spreads and put spreads and try to stay away from the strike, using basic support and resistance, while looking at the upcoming events and possible out comes and return. We usually never make earnings plays because its too difficult to project. Lots of time if earnings do come out and you see a massive move in the after hours when premarket comes if the stock seems to be "fighting" the initial after hours move.
We will short to the other side. We don't have too many videos up yet, because we never thought to do it but check it out.
That is true for anything worth doing in this world. Your needs as an individual are the only determining factor. Where do you live? Do you have children or dependants? Are you required to travel often? What are your other expenses? Is property value high or low in your area? Try to think of it as a safeguard against your own reckless or overreaching tendencies. Can you afford to lose fifty percent of your assets?
Can you afford to lose sixty percent? You should always remember, too, that greed is a powerful motivating factor with little to no basis in logic. Then get a broker you trust to the ends of the earth or else stay out of the game.
It's the best tool I've ever used and is still a part of almost every trading strategy I am using, present day. SSI is a free tool that tells us how many traders are long compared to how many traders are short each major currency pair.
It's meant to be used as a contrarian index where we want to do the opposite of what everyone else is doing. Using it as a direction filter for my trades has turned my trading career completely around. If I could tell my younger self three things before I began trading forex, this would be the list I would give. Utlimately though, if you are just starting out in the forex market, the best thing you can do is take time to learn as much as you can, starting with the basics.
Read guides, keep up to date with the latest news and follow market analysts on social media. Due to the availability of leverage, forex traders can make a return on a single trade that is multiples of the margin they used to open the trade. However, leverage is a double edged sword in that big gains can also mean big losses.
Therefore, reliance on excessive leverage as a strategy typically leads to destruction of your account capital over the long run. This is because it only takes one adverse market move to drive the market far enough and trigger substantial losses. Your expectations on a return on investment is a critical element. When traders expect too much from their account, they rely on excessive leverage and that typically triggers a losing account over time.
View forex like you would any other market and expect normal returns by using conservative amounts of no leverage. Since forex is a 24 hour market, the convenience of trading based on your availability makes it popular among day traders, swing traders, and part time traders.
Regardless of your style, use small if any amounts of leverage. If you were to expand the list to a fourth thing learned when starting to trade FX, what would it be? I touched on leverage above. We researched millions of live trades and compiled our results in a Traits of Successful Traders guide.
In the guide we touch on risk to reward ratios and how it is important. With humans being human, we also touch on the psychological element that goes along with trading and why we may still make poor choices even if we know what is right. Sometimes our biggest obstacle is between our ears. We have compiled a comprehensive guide for traders new to FX trading. This guide includes topics like why traders like FX, how do you decide what to buy and sell, reading a quote, pip values, lot sizing and many more.
From my experience, learning how to decide what market to trade in FX is important. We also recommend the resource building confidence in trading which is found in the beginners tab of our trading guide resource section. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Take a free trading course with IG Academy.
Our interactive online courses help you develop the skills of trading from the ground up. Develop your trading knowledge with our expert-led webinars and in-person seminars on a huge range of topics.
A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment.
The Options Available
Sep 28, · Actually I see the edge as being good at directional (knowing where a stock will 'likely' go - could or might likely go - within X time frames) and using option selling and buying to leverage and to trade equities, ETFs, indexes wherein you may not have enough capital to trade underlying. Now, anyone with ambition and patience can trade, and do it for a living, even with little to no money. Sounds fantastic? It is, and there are so many options available to people with the desire to put in the time to learn. Does anyone here make a living from day trading/investing? that 90% of day traders fail within a year. I'm wondering if there's anyone here who focuses on investing/trading full time and makes a living from doing so. Edit: Thanks for the interesting replies everyone! I do part time my bro does full time. We trade option spreads he has.