This is written for those who are serious about trading as a main source of income. It is not for Investors, not for Gamblers and certainly not for the Get-Rich-Quick-ers. It is for those who are interested in Position Trading, the crossover between Day Trading and Long-term Speculations or Investing.

Trading is a business. You cannot hope to survive year after year in the financial markets if you treat it with an otherwise respect. You need to spend total time and commitment for your business to be successful, just like any other conventional businesses. The only difference is that you and you alone are responsible for the ultimate success or failure of your business in all situations. Because, know that all judgements and decisions are made by you, yourself. Those engaging in this business should determine to learn and understand it to the best of their ability with informative data available. The critical success factor of the magnitude of your success will be directly proportional to the honesty and sincerity of discovering your own psychology and emotional controls, doing your own thinking and reaching your own conclusions.

Profits and Losses are aspects of trading as a business. Where consistent Profits tells you that you are doing things right, Losses, on the other hand, shows that you have made wrong business decisions. Losses are in fact, the Cost of business just like the operating goods and raw materials of a conventional brick and mortar business.

As long as your market positions are right, let it ride and ride along with it. It may grow into a very large profit, and as long as the action of the market does not give you any cause to worry, have the courage of your conviction and stay with it.

Remember that Profits always take care of themselves, but Losses never do. Capital protection should always be kept in mind. Without the capital to do your business, you would have no business, no income. Protect yourself, cut your losses short before the loss assumes larger proportions. We are pursuing a consistent and growing base of capital and profits, not one-time windfall killings which often than not is a reflection of the gambler’s fallacy within. You are your own insurance policy. The only way you can continue in business is to guard your capital account and never permit yourself to lose enough to jeopardize your operations at some future date when your market judgement is correct.

It is the traits of human to be Hopeful and equally so to be Fearful. The successful trader should always be hopeful when their trading positions are moving in their favour, i.e. profits increasing and just as fearful when their trading positions went against them, i.e. losses accumulating. However, the average investor confuses the two and often found themselves caught in reverse positions. That is to say, you should be feeling greedy winning, at times when you are fearful and doubly fearful of losses when you start to be hopeful!

Another quality that is required of you is Patience. Experience has proved that the real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start. Ignoring this and plunging in your full line of positions or capital will result in heavy losses and stop short your career as a Trader. Have the patience to wait for the sure thing, the perfect time to begin your operations when the Trading System shows you. Beginning your operations too early is the influence of the gambler inside you, Greed, that is. But starting too late, after an opportunity has been shown to you clearly is just as equally Ignorant of you. You do not need to be in the market all the time, everyday. You are not Day Traders. Follow the Trading System strictly, your Guide; and your livelihood will be taken care of itself in the long run.

My theories and practical applications have proven to my satisfaction that nothing new ever occurs in the business of trading, psychologically speaking. Certain patterns of group behaviour will always continue to repeat again and again. As the saying goes, “Market can change, but human nature has stayed the same for centuries”. That is precisely the reason why we are able to consistently make money month after month.

The business of speculations is nothing more than anticipating coming events. One must form an opinion as to what the next move of importance will be in a given stock and attempt to profit from it

It is a game of probability, not an academic thesis of right or wrong answers. Markets are never wrong, opinions often are.

What you have read is an extract of the first chapter of the eBook,

     ‘How I Trade For A Living… And Now So Can You “

You can order this step-by-step course that reveals all my trading secrets directly here,

http://www.howtotradeforaliving.com/order.php

Contents Page
The Challenge – Trading as a Business  4
What You Need     7
Trading Plan       9
The Trading System   12
Risk and Money Management  27
Position Sizing    30
Rules of Trading – Your Guide  34
The Don’ts    36
Price Behaviours   39
Putting It Together – The Daily Routine 41
Conclusion    54
Appendix I – The Emptiness  56
Appendix II – Know Your System Software Report 58

J.W. Lee
Trade Smart!
http://www.howtotradeforaliving.com
 

J.W. Lee
http://www.articlesbase.com/investing-articles/the-challenge-trading-as-a-business-711856.html

Stock day trading teleseminar. Series of day trading classes to learn how to become a better First Hour Trader. Learn more about the First Hour Trading system at www.FirstHourTrading.com.

Day trading stocks can be very profitable if it’s done the right way.

Day trading online with the First Hour Trading system can help you make enough money in just 1 hour a day to take off and do whatever you like for the rest of the day.

Duration : 0:10:17

Technorati Tags: charts, day, daytrader, daytrading, finance, invest, make, market, money, nasdaq, nyse, options, picks, signals, stock, trader, trading

http://www.logicaltrades.com Get Kevin Butler's ** FREE ** stock trading video series 'The Master Plan to Successful Stock Trading'. You're going to love this free course!

Duration : 8 min 49 sec

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cheapest online stock trading
cheap stock trading

Duration : 0:5:17

Technorati Tags: cheap stock trading, online stock trading, stock day trading, stock market analysis, stock market software, stock market trading, stock option trading, stock trading software, stock trading system, technical analysis stock

Trend following is a popular trading system. The method involves joining an established trend with an aim to ride the stock in the direction it’s heading and exiting when the trend reverses. A trend trader is either right or wrong and will never hold a position in hope the knife stops falling. The system requires string self discipline to follow the precise signals the system is created on.

There are many methods for establishing if a stock is in a trend. The quickest method I have found is using the Guppy Multiple Moving Averages (GMMA). The GMMA indicator consists of 2 groups of EMA’s. The first group known as the ’short term’ group consist of 3, 5, 8, 10, 12 and 15 day EMA’s. The second group consist of 30, 35, 40, 45, 50 and 60 day EMA’s. The two groups are usually colored differently to allow a quick scan of the chart to determine if the short term group is outperforming the long term. The GMMA is an easy to create indicator, that quickly enables the trader is the stock is a potential trade.

Trend Trading is a trading strategy that relies heavily on defining risk. The major contributor for success is not just sourcing a trend but managing entry and exit. They have clear trading rules to cut their losses before they turn into large losses, while allowing their profitable trades to run. This strategy cuts positions quickly, forcing the bulk of the profits to be made from a handful of successful trades. The success of trend trading isn’t the win-loss ratio, but the profits obtained from the winning positions. It is important that the system then defines a tight stop loss, with enough space to allow the stock to continue with its trend and not stopping the trader out before the trend resumes.

The easiest, most effective and relied upon method risk management method is the 2% rule. The aim of this risk management technique is to define an amount that the trader is willing to loose on each individual trade. The 2% rule calculates this value at 2% of the value of the portfolio. The value of portfolio is calculated by adding the value held in cash, with the current value of all open trades. This value is then multiplied by 2% to calculate the amount the trader should risk. Based on this value, entry price and stop loss price the trader can then calculate how many shares to buy to risk only 2% of their account.

For more information on trend trading, technical analysis or risk management, please visit Market Ninja.

Market Ninja
http://www.articlesbase.com/investing-articles/trend-trading-110452.html

How a system that can facilitate one billion shares trading in a single day works is a mystery to me, so I thought I’d do a little digging and see if I could come up with the general process on how stock trading works. Here is what I found.

The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing. Just imagine how complicated it could become to sell shares if you had to search for someone who wanted to buy your stock.

When it comes to trading stocks, it’s not trading in the typical sense of the word, where I give you this, if you give me that. Trading on the stock market is more a matter of buying and selling, these two components are what make up ‘trading’ when it comes to investing in the stock market. As opposed to something like retail shopping where the prices are set by the seller and you can just walk into a store and purchase something, the stock market functions more like an auction in which both buyers and sellers are actively setting the prices at the same time.

With both buyers and sellers actively setting the prices in the stock market, it is only logical that there are subsequently two prices associated with every stock, the bid price and the ask price. The bid price is the price at which buyers are willing to buy the security whereas the ask price is the price at which sellers say they will sell the security. These two prices are pretty much never the same: generally, the bid is slightly below the ask. The difference between the two is called the spread, the amount that is taken by your broker as profit. Specialists, who are in charge of the coordination of the buying and selling of a certain stock, pair bids and asks together to streamline the process and keep the spread small, but positive.

Considering that the bid and ask prices are always changing, you need to be careful about your sales and purchases. The price that is quoted may or may not be the price at which you actually buy or sell the stock. There are several options regarding the method of execution for your trades:

Market Orders: an order to buy or sell stocks at the prevailing market price. These are often the lowest-commission trades because they involve very little work on the broker’s part.

Limit Order: You tell your broker to buy a security at or below a specified price, or to sell a security at or above a specified price. This ensures that you will never pay more for the stock than whatever price you set as your “limit.”

Stop Order: You tell your broker to buy a security at the market price once it reaches a level higher than the current market price. The opposite would be true if you were selling: you would tell your broker to sell your security once it reaches a level below the current market price. A market order to buy or sell a certain quantity of a certain security if a specified price (the stop price) is reached or passed.

Day Order: You tell your broker to execute the trade by the end of the day; otherwise, he or she does not fill the order.

All or None: an order type for a broker to execute a trade only if every share of an order can be filled in its entirety, or else not at all.

Fill or Kill: You tell your broker to execute the trade immediately; if the trade is not filled right away then your broker does not execute the order.

Tradeopolis
http://www.articlesbase.com/investing-articles/how-trading-works-103809.html

Stock day trading teleseminar. Series of day trading classes to learn how to become a better First Hour Trader. Learn more about the First Hour Trading system at www.FirstHourTrading.com.

Day trading stocks can be very profitable if it’s done the right way.

Day trading online with the First Hour Trading system can help you make enough money in just 1 hour a day to take off and do whatever you like for the rest of the day.

PART 1: http://www.youtube.com/watch?v=ojBEW5WkH2U
PART 2: http://www.youtube.com/watch?v=WTBFanKPr-Y
PART 3: http://www.youtube.com/watch?v=3kHVz-2xmko
PART 4: http://www.youtube.com/watch?v=odL7kq8JZ84

Duration : 0:8:15

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The myth that Forex Robot Trading Systems are only used by the elite is over. Forex Trading Systems are being used by complete newcomers and veteran traders alike. It takes no time at all to get up and running with these systems as they are completely automated, and they really can make huge profits very quickly.

There is a Forex currency trading for beginners system that is designed to teach you step by step how to get started. This is nothing like trading stocks. Stocks do require a lot of learning and research when it comes to knowing which companies to invest in and there is never really a guarantee you are going to make any money. When you begin with a Forex robot trading system you can start from scratch. The systems will walk you through every step of the way with the learning process and you will have your trading strategy down in minutes.

The Forex currency trading systems are easy to learn. You can get started when you open an account and immediately begin trading. The great thing is that when you use Forex currency trading for beginners the system will walk you through the process of how to buy, how to sell, when it is the right time to dump your investment, and more. Using a Forex Robot Trading System has never been easier than now.

The best reason for newcomers to get started in Forex Trading is because it can be fully automated. You can determine how it is you want to trade, how much money you want to trade for the day and the computer will do the rest. You can go to work and you won’t miss out on any big investments because the system will do the trading for you while you are away. Investors find they never miss out on a good trade because they don’t have the time. The system will do all of the trading for you. When you come home you will learn how much money you have made throughout the day with your Forex robot trading system.

Forex currency trading for beginners really does provide a way to make a lot of money through currency trading. The truth is that even total beginners are making huge sums in currency trading these days. Expert stock investors that switch over to the Forex robot trading system find they are making more money on Forex and they never go back to traditional investing. It is one of the easiest ways to make money is through Forex. You do not need a degree in finance or experience with making investments in the past.

There are many reasons that the Forex currency trading for beginners is the best system to making money. If you are reluctant because you think that Forex currency trading systems are too difficult to learn then you should reconsider. The systems will take you step by step on how to trade and build the right trading strategy for your portfolio. Their are huge profits to be made in trading currency.

Michael Barnes
http://www.articlesbase.com/finance-articles/can-beginners-really-make-money-from-forex-trading-746242.html

Joe Ross wrote a book in 1991 titled, “Trading is a Business”, and I couldn’t agree with him more.

Look closely at any successful trader and you’ll see that he or she looks at his or her trading as a business. They are disciplined, they are decisive and they are motivated to succeed. Most entrepreneurs fail and the basic reason is they don’t have the inner-fortitude to get through the tough times.

Every trader has experienced loss and has done something that later appears to be unfathomable. You stop when the dust settles and say, “What was I thinking?” Has that happened to you? Of course it has!!!

Have you been using fundamental or technical analysis, but still find your profits disappear in front of your eyes time and time again? This is because there’s a large gap between analysis and actually putting a trade on…this gap is known as the ‘psychological gap’.

Let me ask you…

Are you finding excuses not to trade? Too groggy in the morning, need to mow the lawn before the sun comes up, need to do this, that, everything but trade!? Do you now sit with your cup of coffee in your hand every morning and simply watch your trading platform without making trades because your confidence has turned to doubt?

Have you experienced trading losses that have affected your self-confidence? Is it so bad that you’re now having trouble “pulling the trigger”??? Does your trading discipline waiver when markets get volatile? Are you doubting your trading system after a few losing trades?

If so, you’re not alone. If any of these things are happening to you, you need help, and you need help right now, if you want to stay in the game! And as traders, we all know that Trading is The Greatest Game in the world!

All traders are asked to face their own emotions. Stock traders, futures traders, forex traders, and bond traders …ALL TRADERS!

Studies show that 90% of our mind’s power is housed in the subconscious mind and is responsible for our behaviors, habits, and performance. Winning traders know this. That 90% can either work for you or against you. I’m here to tell you how winners make sure that the 90% is working for them!

Having an effective trading system is not enough to be consistently successful in your trading. No trading method/style/system/strategy will work without the proper mental and emotional discipline. Whether you are a beginning or seasoned trader, it’s still the same: trading is 20% trading skills and 80% disciplined mental skills. If you have the necessary trading skills developed but your trading is still losing money, you don’t have the wrong trading system…you have the wrong mindset.

In a poll taken among Traders a few months ago, it was determined that the biggest Mental/Emotional issue that prevents traders from consistently applying their tested trading system is the Fear of Failure. Inability to pull the trigger when a trade signal is given…or when you enter or exit a trade based on emotion (rather than following your system)…causes poor trading results.

There is a way for you to change your mindset and develop all the necessary mental and emotional qualities for your successful trading.

You can do it easily by simply listening to very powerful hypnotic suggestions that go straight into your sub-conscious. If you do this every day for two weeks for just 9 minutes a day, your trading skills will improve drastically because your mental and emotional discipline will improve. Your ability to follow your trading strategy without emotional reactions will increase your trading successes.

Mental practice and guided mental imagery are the most
effective techniques in mental training. The TradingMind Software training sessions relax the trainee just enough to deliver the lesson directly to the subconscious mind, where behavioral change takes place.

TradingMind will help you create an internal sense of
trading confidence. The more you train, the more the ideas and philosophies are ingrained and understood. And the deeper the new neuro-pathway that you’re creating becomes, the faster your new (good) behavior will replace the old (poor) behavior.

By sitting for a 9-minute training, once a day, for 2 weeks, you will transform any notions of the fear of failure into strength and confidence to follow your trading system. With this proven training, you’ll eliminate fear and hesitation, while avoiding the dangers of overconfidence. You’ll not only establish the discipline to follow your trading plan, but you will also replace your bad habits by creating new, good habits that will help you reach your financial goals.

By becoming a self-confident and decisive trader who follows the rules of his trading system, you will enhance your trading profits and realize Joe Ross’s statment that trading is a business and successful traders have the proper mental and emotional discipline to succeed.

Cynthia Macy
http://www.articlesbase.com/finance-articles/trading-is-a-business-84763.html

Duration : 0:1:49

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