Day Trading: 3 Powerful Strategies To Make Money In 2017-2018

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Day Trading: 3 Powerful Strategies To Make Money In 2017-2018

Category : BLOGS

3 Powerful Strategies To Earn Money Faster In 2017-2018

Life is like riding a bicycle. To keep your balance, you must keep moving.

Albert Einstein

Create your own wealth

By James Spurway

 

Buying Stocks

Unlike buying stocks of a company and waiting for a long period of time as the company grows to obtain profit, foreign currency (Forex or FX) day trading is a short-term strategy aimed at increasing your return as you buy, sell, enter and close out transactions on the same day.

This is not an investment strategy designed to capture long-term appreciation. Here are the best ways to gain profit from Forex Day Trading in the year to come.

Learn the ropes – trade on a “DEMO” platform to gain confidence

If you want to learn the ropes of this industry, taking currency trading courses or reading a guide is probably the best way to go. Many currency trading associations and websites offer traders free demonstration “demo” trading platforms so that you can start executing trades without having invested any money.

Everything else is very much real. If you can’t make a profit on your demo account after a period of a month or two, maybe this is not for you. Some websites may ask for a small membership fee, but if you’re dealing with a reputable site, it is probably worth it, as the more established FX Brokers will also offer you tutorials or webinars that cover the basics of the market, and trading.

You will thus increase your chances of making a profit by learning the basics of day trading, swing trading and position trading, as well as the fundamental investment principles.

 

 

The most beautiful things are not associated with money; they are memories and moments. If you don’t celebrate those, they can pass you by.

Alek Wek

 

Be politically and economically aware – know what moves the markets

 

You will have a greater chance of taking advantage of currency market movements if you know its basic theories, such as the fact that a country’s currency is highly influenced by its political and economic development.

In order to make healthy trading decisions, you must know the latest country-specific situations.

So before hitting the day trading market, try to stay informed by watching Bloomberg, Reuters or CNBC TV, reading the Financial Times or subscribing to online news services, as this will give you an immediate advantage.

Make sure you know the most recent inflation rates, tax laws and changes in government in the countries which have the currency you trade, so you can make smart choices.

 

Choose a simple system – and then stick to it

Before making your investment, you must be sure that you understand the logic upon which that particular system relies. If you can’t grasp why and how it works, you will not be able to follow it and you will suffer inevitable losses.

Instead, go for a system with simple logic, which has only basic parameters and rules. There is no relationship between the complexity of a system and the amount of money it can bring you.

Last but not least, don’t forget to look at the money management involved in the system, as this is the key to your trading success. 

One of the first principals of Money Management is to know how much of your capital (often called equity) is at risk on each trade you place. Never allow your emotions to cloud your judgement and place a buy or sell order that, if it doesn’t work out, would result in your entire equity being lost.

Although the trading activity is short-term, i.e. is all over within one 24-hour period, the aim is to be doing this day in day out for years, so you have to protect your investment.

 


8 Comments

Jim

May 2, 2018 at 10:01 am

Hi Audrey,
Thanks for taking the time to check out my blog.
Oh boy! I could write a separate blog just dedicated to mechanisms you can put in place to ensure that you don’t let emotion cloud your decision making/ judgment when you make a trade. The problem is, I sometimes ignore my own advice!!
Taking the emotion out of trading IS the right thing to do, for any asset class.
Warren Buffet is the Guru when it comes to recognizing that temperament, or lack of control thereof, is what leads to the demise of Traders and Investment Managers alike.
So if you find it hard not to want to “trade the heck” out of a fast moving currency market, especially when the bulls are in full roar, you’re not alone. Trading without emotion takes the fun and excitement out of it, right?
Yes, it does.
Fun and excitement are fine if it’s a hobby.
Not so much, if this is your livelihood…:)
To your success!
Jim

Audrey

May 1, 2018 at 7:01 pm

I am new to forex and after a some demo sessions I felt I was good to go. No one told me that the major part of trading is managing your emotions. Demo sessions are not effective because you don’t loose any money in it, but as you said I started making sure I wasn’t putting in more than I could lose and I started managing my emotions a lot more and things got better. Thanks for your advice. Keep providing us with more information

Jim

April 5, 2018 at 10:23 am

Hi Dorcas,

Thanks for taking the time to respond. I’m glad you got value from that post. It’s great to be talking to a fellow Trader!

There’s probably only one thing more volatile than the price fluctuations in the Currency market, and that is the rise and fall of the fortunes of the Brokers and IB’s (introducing brokers) in the industry.

It’s a market that is probably one that online marketers / affiliates should avoid. And that is because of the potential image damage that an affiliate might suffer if they recommend a product or service provider who then goes rogue, collapses or generally misbehaves.

So rather than promote the opening of actual brokerage accounts with a Broker, one way to circumnavigate the potential reputational risks is to promote the Education component of the Industry. In other words promote good trading practices via courses or systems, and not account facilities that involved trading activity itself.

That way you can still be remunerated for sales, but you don’t have a vested interest in a novice trader trading higher volumes than are safe, just to generate more trading commissions from transactions.

Which companies do you follow in the FX Sector and which ones do you think have the right Management Team to be around for the long-haul?

A lifetime ago I was an IB for FXCM when they were 4-5 guys in a small room in a back office in a building on Wall Street!

Your always. Jim

DorcasW

April 4, 2018 at 9:34 pm

Hi Spurway; The Forex trade is a powerful trade depending on the country in which one is trading. As also the currency that will be traded.

I did it locally for a short while and it was amazingly profitable.

Because the currencies do fluctuate, one has to give much time and attention to the trade while trading.

Would you suggest Forex trade to Niche marketers?

DorcasW

Jim

March 28, 2018 at 6:38 am

Hi Olivia,
I hear you. Having a healthy respect for the markets, and, not falling into the trap of “forgetting” past market cycles and the signals/indicators that preceded them, is one sure way to stay “forewarned”. As the saying goes, “forewarned is forearmed”.
However, despite our best intentions and carrying out proper due diligence, portfolio diversification is still the best risk mitigation strategy.
If we avoid significant losses, we should be in a position to take advantage of cheaper valuations when the opportunity arises, rather than nursing our wounds.
In the view of a well-respected Fund Manager that I follow:
“Government bonds – historically a more obvious safe haven – may not offer the same opportunity this time around. This is why it is worth looking at the few assets that look relatively under-valued and/or have the potential to protect should markets enter another stormy patch [if we have another GFC].
“These assets might include cash to help dampen volatility and provide that option to invest at cheaper levels when the buying opportunity returns. Selective hedge funds and assets like gold may also have the ability to make money should equity markets fall.”
Good luck in pursuing your investment strategy. I have a lot of respect for everyone who is willing to actively manage some or all of their personal assets.
Jim 

Olivia Anderson

March 27, 2018 at 10:03 pm

I am constantly trying to stay aware of the credit default rates. I agree with your advice about finding one things and sticking to it. Honestly I don’t do anything other than passive index funds when it comes to stocks. It isn’t something that I have the time to research at this point. However it truly scares me at the thought of a bubble burst that takes as long to recover as it did in 1929.

Jim

January 13, 2018 at 6:45 am

Hello Xenia
Interesting Name, I only know the name of the movie xenia the warrior queen.
Stay on the platform as long as you can, before you jump into big trading. Go steady and slowly and don’t risk anything in the beginning. Get a feel for the trading platform and follow the signs and you should be ok. I started to like this and I remember when I made my first 300 Dollar oh I was over the moon. It does not sound much, but it comes with trading the feelings going high and low.
I wish you all the success in 2018 and let me know if you need help. Just give me a buzz.
Jim

Xenia

November 16, 2017 at 4:20 am

Thanks for the advice, sticking to one system. I tried it out with my boyfriend we still following your advice and just do trading on a trial platform. It is so much fun, scary first but after a while really cool. I am very excited to do it the way you suggest.

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