Do You Have What It Takes To Become A Day Trader?

To become a day trader, you need to have certain qualities. In day trading, positions are opened and closed within the same day. This helps define the type of personality that tends to be drawn to day trading.

* You don’t mind being at your computer the whole day, or if you’re part time, for the time you have allocated to trade. If you have a demanding job, or a lot of family or other commitments, day trading may not be a good fit for you.

* You want/need to keep an eye on the trade and monitor it whilst it’s open. Because a day trader opens and closes positions in the same day, they aren’t going to be affected by things that are happening whilst the market is closed, or they are asleep, or involved in social activities.

* Day traders are in many ways more impatient than other traders, though they do need to have some patience to be successful. A good day trader needs to be patient enough to wait for a trade to come along that fits their strategy. They need enough self-control that trades aren’t entered out of boredom, or the need to ‘do’ something – even if it means waiting for hours.

* Day traders tend to feel the need to be doing something all the time, hence they don’t mind watching the stock market for a good trade whilst that session is open. Those that compulsively micro-manage things might be drawn to day trading.

A good day trader needs the ability to take decisive action when conditions are identified that meet their trading criteria. This is partly related to confidence in your own judgment, as well as how you handle a sense of risk psychologically. Leaving it too long to enter a trade by waiting until a stock moves into profit can mean the window of entry that would make it a good (profitable) trade, is missed. This is a mistake that beginners can make, and could be a function of needing to learn more, or simply a lack of experience leading to a lack of confidence. Certainly, if you prefer someone to take you by the hand, joining a service that recommends stocks might be a good idea.

The flip side to the above is about not making rash decisions. A good day trader does not approach trading like a gambler would. Day traders mostly use technical analysis, which follows price movements in the stock market, to determine whether to make a trade. Most people who become a day trader are risk averse, so this may not be a problem. Day traders tend to use small stop losses to limit the possible amount lost per trade.

MADII – Compliance and Consequences

Meaning

MADII (also known as the Market Abuse Directive) is a directive issued through the Financial Services Action Plan that outlines market/trade abuse or misapplication within the EU markets. It updates the original MAD document from 2005.

The actions focus on lowering such transgressions, which in the long term can weaken the markets and cause deeper rooted issues. These actions apply to all forms of financial instruments trading on a monitored market.

The regulation has been adopted and fully implemented within the UK.

Market Abuse Directive

Background

The first instalment of the Market Abuse Directive was implemented in the UK back in 2005, and put forth an initial framework for monitoring market abuse and streamlining the spread of market information amongst key bodies. MAD II continues this mind set, with a view to further improving confidence in the integrated EU market and greater cooperation between different regions and bodies.

With the regulation and new rules still under discussion, the actual application of MAD II is not expected until 2015. This should allow time for the European Commission to update and streamline the directives to ensure full comprehension and coherency.

Actions

The European Commission has put together recommendations for an updated instruction against unlawful restrictions against market manipulation. This is alongside new regulations to endorse administrative sanctions against this form of corruption.

More precisely, the directive is concerned with dealing with the following market abuses:

–       Inside information (and its disclosure)

–       Market manipulation

–       Insider’s lists

–       Disclosure of managers’ deals

–       Suspicious transaction reporting

–       Share buy-backs

–       Stabilisation

–       Research disclosure

Exceptions include transactions relating to:

–       Monetary policy, exchange rates, public debt management by EU Member States

–       The European System of Central Banks and other national central banks.

Aims

The hope for the updated MAD is that it will help support the EU’s Financial Services Action Plan and ultimately contribute towards the unification of a single financial services market for the EU. It is directly concerned with streamlining market information and a universal framework which will in turn help regulatory bodies communicate and cooperate across the national borders.

Binary Options Become The Solution For Those Who Like To Protect Their Financial Resources Better

During a time when sufficient is never really sufficient due to the fickle aspects that affect the economy, a lot of people are trying to produce ways to ensure that the following global downturn would not have the same huge and “tough to recover from” impact. Other than changes in lifestyle, such as saving more for the rainy day and changing spending attitude, accounting experts suggest going into profitable possibilities to better protect economic resources.

These days, it’s not enough any more to be employed and get a monthly income. As what the global economic downturn showed, many seasoned workers who had been with their companies a long time can actually lose their jobs; companies shut down and a lot of those that still existed in business were made to let a lot of their significant workers depart so they could hold their heads above the water. So rather than storing money in the bank for future consumption, making it grow is the more rational thing to do.

One of the several options that individuals are looking at in the attempt to get their money grow is binary options, but what does the term mean anyway? Primarily, it’s a trading framework and investment medium which can generate truly impressive profit gains by the hour; returning profit ranges from 70 to 85 per cent. A lot of individuals are using this particular trade as a substitute income-generating effort.

Numerous approaches are offered to make this quick trading opportunity help people; there are also smartphone apps that people can use to stay up to date with all the factors affecting this specific trade. Trying to learn the major strategies takes on a vital part because it can help secure ventures from various market liabilities as well as further raise profits. The three key principles are time, analysis and mentality.

Timing counts considerably because investing at the most ideal market climate can certainly translate into higher profits. It’s wise to compliment this with necessary analysis regarding industry developments, in case you need a quick and substantial return of your investments. Take into account basic commodities, the innovations made on them, and the variables that impact demand, just like the four different seasons. Lastly, mentality is something to continually keep in check; it’s not easy to be fully conscious of the first two principles if the brain is not focused on the reasons of the investment. Perseverance and eagerness to learn are crucial for success, and it’s also greatly important to practice self-control because feelings can often muddle a person’s ability to come up with sound judgments.

After all these essentials are understood and put into action, achievement rate in the endeavor easily goes up and financial assets are supplied with more cushion for any economic trouble that may come.

Are Binary Options the Same as Commodity Options? No, They Are Not!

The word “binary” can be thought of as applying to an either x or y situation. The sun is out or it is not; Fred is dead or he is alive. In the trading world, binary options offer chances to bet on the answers to binary questions. In essence, a broker will state that the price of potatoes is going to be 10$ at the close of the day’s trading. The trader agrees – or not, earning a return if correct.

Commodity options involve future predictions, though there are marked differences. If your homework indicates the price of potatoes is going to rise, you buy some at the current market price (the price is actually a “margin” or the percentage of the actual cost). You agree to a timed contract and, if potato prices soar, you can sell and make a tidy profit. If prices fall, you have to buy the potatoes at the end of the specified time period, taking a loss.

Let’s look at how these two types of future options differ.

The Graph Factor

Traders in commodity options study graphs and charts, identifying trends and then making educated decisions. It is impossible to accurately predict at what specific price a potato will end the day; a trader in binary options is making a bet, there is no chart required.

Fast and Furious

The trader of commodity options will see potato prices fluctuate, likely over a period of months. The trader of binary options will see fast results, with 24 hours; experiencing frequent adrenaline rushes. Serious traders have warned of the potentially addictive nature of this exotic trading practice.

The Seductiveness of Simplicity

Trading in binary options is undeniably simple; you place a bet on “yes” or “no” and wait to see what happens. While seasoned traders may feel unsettled by making such stabs in the dark, the novice may be drawn to the system’s primitive nature.

The Crystal Ball Effect

With binary trading, you know how exactly much you will win, if you win, and exactly how much you will lose, if you lose. This means that you can carefully manage risk; there is obviously much less control in the commodities market.

In Closing

Any financial trade carries risk and potential pay offs; whether dealing in commodities or binary options, do your homework when it comes to choosing a broker, choosing a stable, well-known firm.

EAMT Review: Online Forex Trading System

EAMT is an automated online Forex trading system, which helps you execute online trades automatically. This is done in an effort to save you time. It also is done in an effort to help increase your chance of making a fortune while trading.

Pros and Cons

With the EAMT system, you can watch the market continually. Furthermore, you can manage several accounts from one place. This was never possible before-not until investors began using online Forex trading investing software.

Additional Advantages of the EAMT system include the following:

  • Trades can be executed any time of the day or night (scheduled).
  • There is no need to miss chances to make a profit even when you are not at your computer.
  • It reduces risk of making mistakes based on emotion.
  • This system is based on over 20 up-to-date systems such as Alligator, Fractals, DeMarker, William’s Percent Rate, and more.
  • Close system watch of each move and helps increase chance of profit by taking when necessary.
  • It comes with a lifetime guarantee.

One of the downsides of this system is that it does cost more than other online programs. Yet, it does cost considerably less than others. Besides, serious Forex investors can try it out for five days before making a decision to buy it.

The other downside of course is it may take the “fun” out of the Forex experience. On the other hand, it can eliminate mistakes often made by human judgment, lack of discipline, or inconsistency. It also can help eliminate mistakes made based on greed, tiredness, hesitation, fear, or laziness.

Concerns and Tips

Although you can expect to see results from using the EAMT online trading system, remember that the results are not always the same. It depends upon the day and the current market. Your chances are increased, but there is no guarantee.

The one other main concerned expressed by users is that there is no stop/loss function. What this means is that investors cannot set a maximum in advance of what they are willing to lose while trading. Therefore, there is still a potential to lose money. This is one reason why you should not consider a piece of automated software the “end-all, be-all.” It is not the ends to justify the means necessarily. You still should monitor your account and make sure you do not invest more than you are able to lose.

Pros and Cons of Online Forex Trading Robots

Online trading robots are automated systems that help people who are not always available to be there physically while Forex trade is taking place. This can be advantageous in some ways and in other ways it can be to your detriment.

Advantages

The one major advantage of using an online Forex trading robot (a.k.a. ‘bot’) is that it is more efficient. It can “be there” for you 24/7. Therefore, you could make a profit while you are sleeping if you want.
These online systems of course do not feel tiredness, boredom, greed, or disappointment. They work at a consistent, steady pace in ways that humans cannot. These types of programs are also designed to “speed read” all times of automated data.

Furthermore, you are usually able to run them on multiple currencies at a time. It all depends upon which online trading software robot you use. The chances of making a profit may be increased simply because the computerized programs you use continue to work for you faster than you could for yourself.

Disadvantages

It may take some of the fun and excitement out of trading. Furthermore, you never know if your system could get hacked or your identity could get stolen. On the other hand, there are ways around this and ways to remain safe.
Not every type of online Forex trading robot has the tools you need. You need to be aware of this because not all of them for instance have a function for which you can “stop/loss.” You should look for one that does, but it is hard to find one that does-at least not one for a reasonable price.

Trading Tips

Whether you use automated systems to trade or you trade live with your own human hands you should beware of the following tips:

  • Never invest more than you can lose on any transaction.
  • If you use automated systems, keep watch on the activity.
  • Make sure you invest in automated software that allows you to stop any time.
  • Diversify your exchanges so you minimize loss and gain steady revenue.
  • Do not make hasty trading decisions based on high or low emotions.
  • Rely on automated systems, but do not expect them to necessarily be the answer to all your problems.
  • Research the pros and cons of specific software programs and learn how they would work for you. This will help you gain the most from your trading experience.

What Are the Benefits of Online Forex Trading

Forex trading is quickly becoming one of the biggest financial markets around. Even better than that it is available to almost anyone interested in learning about it and applying what they learn. This makes it easy for anyone to make a profit just by knowing what risks are worth taking and which ones should be avoided at all costs.

Before Forex trading became available through internet sources it was like a special club that only select people were allowed to take part in. This group generally included large banks and foreign governments as well as the super rich.

Online Forex Trading

Brokers tend to dislike this market because most currency trades are made rather quickly with some being completed from start to finish all within the same day. This makes it impractical to have a broker and since there is no commission earned on this type of market the brokers really don’t have much opportunity to make very much money from these types of transactions. With online Forex trading a person can monitor the market from home making a broker essentially unnecessary.

Because of these benefits and many others online Forex trading is becoming increasingly popular.
Getting started with an online Forex trading account is simple and there are many providers that offer the opportunity. The most important thing to remember is to check and compare several providers before you begin to prevent surprises later. Many of these providers also have what is referred to as practice accounts allowing you to get a feel for it before actually using real money. This allows you to learn more before you actually put up money making your chances of success even greater.

It is not impossible to make large amounts of money through the Forex market however it is by no means a way of getting rich quick. It takes time and practice to be successful in the trading market however like anything the more you practice the better you will become at it.

One of the best ways of learning anything is through trial and error and not repeating the same mistakes. Forex trading is no different. The more you do it the more you learn and by learning from the mistakes you make and not repeating them the more successful your ventures will be.

If you are new to the Forex market it is a good idea to start out with small amounts of money. By doing this you will ensure that you will not lose large amounts of money and will gain knowledge and experience that will make it possible to see large profits in the future.

Technical vs. Fundamental Strategies

There are two main strategies used when analyzing Forex trades.

Fundamental analysis is based on economic as well as social and political factors. Technical analysis is based on prices. Although you will probably use both strategies before placing a Forex trade, you will probably find yourself leaning towards technical analysis when it comes to the most highly traded Forex pairs and fundamental analysis when dealing with the more exotic currency pairs.

Technical analysis in Forex involves deciphering price data and seeing particular patterns and trends. An astute trader will read several charts before interpreting price movement or direction. A trader who focuses more on fundamentals will keep tabs on world events in general and on the local country in particular in order to understand the effects of the social, political and economic impact on currency prices.

Most traders combine both technical and fundamental aspects of the market before placing a trade.

Fundamental Strategies

In addition, a trader’s strategy will be affected by his ability to manage his money and deal with the emotional consequences of trading in Forex. Since more than 50% of Forex trades end in a loss, not every trader is capable of handling this risk. If the trader feels not capable, it’s best to approach a professional, see more on forex brokers review.

In addition, most brokers offer traders additional funds to trade with. This leverage is a type of loan that the brokerage extends to the trader so he can trade with a greater amount of funds than he actually has. The difficulty arises when the trader loses all his money and then is in debt for the amount that was advanced to him through margin.

With this in mind, anyone trading Forex should have enough understanding of what the world of Forex is all about. He should investigate how the system works and what goes into a trade. Once he has acquired the basics, he can develop his own trading strategy that works for his particular temperament and lifestyle. He must learn to trade based on analysis and not through emotion. He must be able to withstand the losses and wait patiently for the profits to come.

Otherwise, he will place enter and exit trades without reason and end up in a financial situation from which he will have difficulty emerging. A trader who cannot afford to lose his money or does not have the psychological stamina to deal with losses should not trade Forex.

Summer Forex For Everyone

Look, we’re going to get controversial for a minute: it’s time to go back and give forex another look. Some people are notoriously against anything that’s not stocks and bonds, but the truth that that there are definitely gains to be had within the world of forex trading. The trouble is that a lot of people try to attack it all at once instead of giving themselves plenty of time. They have to think about the journey that they’re going to have rather than just assuming that everything is going to line into place the way that they would expect. What you need to really do is make sure that you’re considering all of your options rather than just getting caught up in the minor details. You owe it to yourself to be able roll with the punches and get your investing back on track. It’s not just enough to feel like the potential is out there — you need to chase that potential to the fullest it can be chased.

The choice is up to you, naturally. Most people only know what they’ve been told about forex, but they really don’t know anything about it. They think that they know something but you have to really get into forex in order to see how powerful it really is. You want to make sure that you’re going slow so that you really understand why this is one of the most powerful markets in the entire world. Many people trade forex, and some have even created a strong career out of it. Why shouldn’t you be one of them?

forex trading

Don’t just run to automated forex software. You’re not going to get the same results that they advertise. You would better off making sure that you’re going to get the theory of what’s going on. Papertrading is actually the way to go when it comes to forex. You get to actually see how well you would trade without risking any of your money. This is something that you shouldn’t skip over, especially when you want to make sure that you don’t let go of the real benefits of forex trading. Sure, there are going to be trades where you lose out. As you learn more about the world of forex, you can minimize the losses you’ll have.

Learning what forex platform you want to use is going to be really important. Don’t just think that you’re going to have to worry about just spinning your wheels. We’re big on helping you achieve your best potential with this type of thing. There’s nothing wrong with knowing that you can do a lot better than where you started, but everyone’s been at this point. You just need to focus on the real prize: consistent gains.

If you’re ready to chase something more interesting than just stocks and bonds, then it’s time to enjoy some summertime forex — what are you waiting for?

Tips for making wise investments

There are many different types of investments that you can make and it can be difficult to know which are the best to go for. Even experienced investors can lose money and so it may not be as easy as it seems. There are some key things that you should do though.

It is very wise to only use money that you can afford to lose. Hopefully you will not lose your money, but there is always that chance and so you need to make sure that you can afford to take this risk. Money should be tied up for a significant amount of time to give it a chance to get a good return and so this needs to be considered as well.

wise investments

It is important to be confident in the investments that you are making. Do some research and find out about the different options so that you know what you are doing. You will also need to find a good trading platform to use and this will affect your decisions as well.

Do not panic if your investment drops in value initially. Investment values do fluctuate and that is why it is important to leave it in for a long term so that it has a chance to do well.

If you do not have much knowledge of investments, then do some research or put your trust in a fund manager. Do not just have a guess as you could regret it. It is wise to take some time finding out things for yourself even if you are using a fund manager so you know whether they are giving you good advice.

It can be wise to spread your investment across different funds. This can give you less risk but it may means that you will not have such a large return.