Author: Editor

Is trading stocks better than forex?

Trading stocks has more options, while forex trading will never confuse you with the number of options

By Guy Avtalyon

Trading stocks have become easy. Some would say that we never had a better time for trade stocks. But how is it possible that almost everyone who wants to start trading, first enters the Forex market?

Yes, I know it is the most traded market. But I think it is interesting due to aggressive propaganda also. We’re in a permanent barrage by forex ads. People, I don’t have anything against forex trading, it’s my favorite too but can we stop for a while and consider the other opportunities?

The main question is should we actually trade forex instead of trading stocks? This dilemma comes naturally after I saw how much my readers are interested in forex. Much more than in trading stocks. It’s unnecessary to say how surprised I was. People just jump into the forex market without actually knowing what it is.

And I was trying to find why that is. I’ll share with you what I find:

Firstly, you don’t need a lot of money to enter the forex market. You can trade even if you have just a little money as, for example, $10.

If you want to trade stock, you’ll need a bit more. Actually, you’ll need much more.

Is trading stocks is better than forex?

Before I answer this question, let me point out some similarities and differences between these two.

Similarities between trading stocks and trading forex

There are some basic similarities. For example, brokers. It’s never been easier to create an online brokerage account. You’ll need just a few steps, several minutes, and voila! You have the trading account. The next step is to fund it, of course.

There is one thing you must keep in mind before choosing a brokerage if you want to trade both stocks and forex. Not all brokerages will allow you access to both markets. Some brokerages don’t service forex trading. Keep that in mind when choosing your broker.

No matter if someone is a stock or forex trader, such heavily rely on short-term strategies. For example, a stock trader will almost never hold stock for several years or so. Trading stocks means to have short-term goals. Otherwise, it’s investing. The similarity comes to trading forex. Trading forex means to hold currency until its changes show you can profit from your base currency. So, you’ll trade it in such a case.

Technical analysis is almost the same

Also, in technical analysis, you’ll use patterns and indicators in both markets traded. If you use technical analysis for your trading strategy (it’s smart to use it, believe me) you will not have a lot of time to analyze news, or to research the company’s outlook. Instead, you’ll look at charts trying to notice indicators that will tell you if your stock is going to rise or drop.

You’ll need to know if the price change will happen soon. The same is when trading currencies. Technical analysis is important for both types of trading since you need to know should you buy or sell.

Differences between trading stocks and trading forex

Let’s take a look at some of them.

For example, leverage. While leverage is somewhat rare in trading stocks it is broadly used in forex trading. Actually, it is crucial for forex trading. Let’s say you have $10 on your account but your broker can offer you the 100:1 leverage. Instead of having the struggle to trade with such a small amount you can suddenly place a trade with $1.000. That’s the power of leverage.

But I have to warn you. Leverage is risky. On the other hand, it can provide you to profit a lot and without really having thousands of dollars to enter the trade.

So where is the risk?

If you miss making a smart trade, leverage can destroy your deposit, your funds, everything you have.

In trading stocks, the best you can have regarding the leverage is 2:1. Don’t be disappointed. Stocks’ prices are changing dramatically. To be honest, you’ll need to put less money to gain more profit in trading stocks.

Trading Hours are not the same

The forex is around-the-clock. How is this possible? Well, the forex market isn’t focused on a single time zone. Each of them has set their own working hours but when one is closed, the other starts to work.

For example, New York starts at 8 AM and closes at 5 PM EST. Oh, it’s time for Sidney to open! Sidney starts at 5 PM EST and closes at 2 AM. Pretty nice, isn’t it?

Stocks markets operate slightly differently. For example, the largest exchange is NYSE, and it starts at 9:30 AM EST to 4 PM Monday through Friday and doesn’t work during the weekend.

Also, the market size is different. The stock market is smaller than the forex market. Every single day, the forex market has above $5 trillion worth trade, while the stock market can count on around $170 million per day trades.

Advantages of trading stocks

It’s easier to get started because almost all brokerages provide this opportunity. So, you have more choices. Also, there is plenty of stocks to trade, more than 2.000 stocks you can trade only on the NYSE, plus over 3.000 on the NASDAQ, not to mention the other exchanges all over the world. The point is that you have more options in trading stocks.

Also, stocks have higher volatility. Higher than currencies. That gives you a chance to earn more.

On the other hand, currency can rise or drop in the fractions.

Advantages of trading forex

First of all, you’ll never be confused with the number of trading options. The number of currency pairs is limited. Further, there is no minimum amount needed to start. You can enter the trade with $10. And, at last but not least, the forex market has more liquidity.
So, you can see that for trading stocks or forex trading you’ll need a strong TA background. Both rely on short-term price changes. Thus, maybe the most important in trading is to get some free up-to-the-minute charting software. It is an absolute MUST.

19th September 2020
Is Day Trading Like Gambling?

If you have poor risk management, if you size your trades higher the more you lose, you are gambling. That is how casino-players lose money.

By Guy Avtalyon

I know some of you are asking themselves is day trading like gambling. Also, some would say yes, it is gambling but not me. Let me ask you something. Would you like to have enough money for everything you need? Even more, for everything you would like to buy, to travel everywhere you want, to have a super designed home, luxury items. Honestly, it’s possible. Imagine that kind of life. No money problems, no anxiety, no stress caused by money issues. Really, that could be a wonderful life. Everyone would like it. The truth is that only a few know how to achieve that.

Having a life without financial stress and suffering is everyone’s goal.

As the days rush by and the nights draw in, it’s well worth resting for a moment to catch up on what’s going on in the world. That’s why I’ve selected this topic to help you do just that. Let’s break this myth! The money belongs to all of us. We all can have it enough to have a dreaming life. In fact, we have all the right to enjoy, to be happy, we are born for happiness.

This isn’t some life coaching mumbo jumbo or MLM trick, this is a real-life story. It’s a business. Day trading is a business so how can anyone talk about it like gambling? Is day trading like gambling? Of course not.

I’ll point out several differences.

Day trading means prompt actions in the markets. Day traders don’t have the luxury of a long-term study of all the circumstances that can make a trade. It is all about odds in your favor.

The main characteristics of day trading

It works very fast. Day traders have to react quickly to any market change because trading means buying and selling securities at the right time with a profit. Short-term changes in the price changes are favorable for day traders. They can think quickly, act promptly, and profit. Day trading doesn’t necessarily mean taking a lot of risks per trade. It’s quite opposite. Traders don’t take a risk on every trade. They are trained to recognize any change in the market, even more, thanks to their knowledge and experience, they know what markets are telling them. So, they can act based on that info. In essence, they are responding to the market’s movements.

Are all of their trades successful? No! Many of their trades are failures. But if more than half of trades are winning everything is okay. Day traders don’t have time for long and in-deep estimations. They can recognize profit opportunities based on price and volume patterns.

Is day trading stressful? It can be. They have to react here and now if they want a quick profit.

How is day trading different from gambling?

In gambling, you put up your money with the belief that some fortunate events will occur. But what about the odds? Are they in your or house’s favor? Behind gambling lies unsupported and unrealistic hope. Do you have any chance to hit lucky? Actually, there is more chance for the airplane to hit you.

On the other hand, hitting losses is more possible. Gambling is exciting for people with the wrong view of money-making.

Day trading is completely different. It is based on knowledge, research, training, experience. You can find only a few traders that enter a trade randomly. Basically, they are amateurs and it is very smart not to take them as the right example. You might think if they don’t take a lot of risks how could they expect big returns? Actually, they don’t expect such a thing. Their returns aren’t big but they are frequent. That’s a big number game. Profit a little but frequently. Of course, some trades will bring you a lot of money, some will end up in losses. The point is to have more winning trades than losing ones. Simple!

Are you ready for trading?

Many of you aren’t ready yet. You might be angry at me but it is true. As the Sun is in the sky and the Earth is a globe. I know you can easily fall into beginners’ mistakes. I saw so many people doing the same. Honestly, I was like you. I know what you mean exactly. You think that day trading is just a process where you can easily find the securities’ price past action, find the current price, and know how it will act in the future. You couldn’t be more wrong.

The truth is that all traders must have a good education about trading, markets, price movements, financial circumstances, securities they are trading. Their decisions are based on knowledge. Are you one of them? Are you able to make money every single day, every month? Do you know that even the best traders have losing years?

Do you understand why are you wrong? You treat day trading as gambling. So, to the question: Is day trading gambling you have only the wrong answer.

How to prepare for day trading?

If you are able to put your emotions away from your trades, you’re close but not ready yet. Why is that? First of all, if you want to be a day trader you’ll need to be indifferent about profit and loss sums. What you need is a workable trading strategy. Are you concerned about losses? If yes, it’s more likely you don’t have a viable strategy, so you’re not able to identify or take a reward to risk trades.

Let me ask you. What if you have a losing trade, what if the trade goes against you? That’s how odds work. You’ll have losing trades from time to time, don’t be afraid to lose money. If you never learn why you have losing trades, you’ll never learn how to have the winning ones. Losing trades are not the end of the world, they are just a phase. That shouldn’t affect you. Bear in mind, as long as you are able to learn and find where you make mistakes, you’ll be on the right track. You must understand that trade will go against you occasionally. Losses are run by possibilities. The point is that the possibilities are changing. Don’t let your losses influence your approach to the markets in the future.

Take the trades that give you the highest reward relative to the risk you take. Size your position properly and never let any trade dominate your profit and loss amounts. Spread your trades. If you do so you will have good results in their cumulative performances. It’s a point of diversification. You should diversify your trades but never over-diverse. Do it to reduce the volatility in securities performances not to tell to friends how many different securities you’re trading.

So, is day trading like gambling? No, not even close.

How to track your profits?

Let’s say you have a viable day trading strategy. That means you are confident. But your job here isn’t finished. You have to track your day trading profits and losses. You may have the best strategy ever but if you don’t have a track record, you’ll be lost. You’ll not know what’s happening. Don’t get careless. That never drives you to success. Keep in mind, you’re not playing a game, you’re doing a job. If you have an accurate track record you’ll be able not only to know how good your strategy is but also you’ll be able to adjust it if it is not working for you.

I’m suggesting you set up a spreadsheet. Add columns for the securities you bought, the exact time you made a trade, the third column should be at which price you bought it, in the fourth column you should add how many assets you bought, and the last column is for the commissions.

Also, set up the columns for closed positions so you’ll know how your trades ended up. Then, calculate how good you are, what is the return in percentages for each of your trades. You can calculate it in currency, of course.

So, at the end of this post, let me ask you, is day trading like gambling?

Waiting for your answer. Happy trading! Do it smart!

10th September 2020
How To Make Living Trading Forex?

Trading forex is like a battle – if you want to win, you have to be ready for it.

By Guy Avtalyon

If you’re new to trading, you might wonder – how to make living trading forex? Is it possible at all? Well, everyone knows the small traders don’t. But, I have to tell you it’s possible. Even for the small traders.

It’s really possible to make a living from forex trading.

I was just like you several years ago. You wouldn’t believe how desperate I was to earn money. Yes, I had a steady job at that time but it was barely enough to spur my dreams. And one day I met a man who told me he was making thousands per day. I couldn’t believe it. I thought he was joking. That man told me he is a forex trader.

So what, man? The shocking surprise came several days later. I heed his advice and have made thousands of dollars.

I’ll show you exactly how I did and how you too can do the same. So, here is! How to make living trading forex?

You might start making money from Forex trading even if you start with a $1 account. Honestly, if you start under $1000 you’ll not have a chance to leave your current jobs but slowly, your capital will grow and you could eventually make a living by trading forex.

So, how to become a successful Forex trader? How much can you really make? How to make living trading forex?

Let’s hop right in.

How to become a professional trader?

The problem with new traders is that they minimize the engagement needed to succeed. If you’re not ready to do what it takes to become a professional trader you should put your dreams about making serious money aside. You have to be committed. You’ll need to invest a lot of your time to learn, build a winning stance by getting the trading skills. You’ll need a suitable mindset, one that will allow you to make money constantly.

First of all, never give up due to the slight mistake. Second, never challenge or make wild trades. That will lead you to lose more than you should do.

Start your day trading as a part-time job. Think about your profits as an additional income. Later, when you come up to the point of fully understanding the forex market you might decide to invest large sums. But firstly, test yourselves, your skills, check your risk tolerance, your trading personality. Only in that way, you’ll build confidence. Never just jump in trading.

How much capital to invest to make a living trading forex?

This is a very important decision. Don’t underestimate it. You have to precisely calculate how much money you can put at risk. That said, it isn’t the same when you are trading to earn some extra cash to pay for luxury travel or you’re risking your hard-earned money to live better. Sometimes, the financial survival of your family is in the game. Trading forex could be extreme psychological pressure. So, you’ll have to decide how much money you can put at risk until you develop and improve your trading strategy.

What is the secret to Forex trading success?

A consistent Forex trading plan. If you don’t have a trading plan, you will lose your money. Eventually, you’ll not succeed as a forex trader. Bear to your mind, you’ll not make billions on a single trade. The success in forex trading means you have a series of consistent trades supported by your trading plan. It is never a matter of luck. Forget it! Only if you have a consistent trading plan you can be successful. Forex trading isn’t gambling, so luck has almost zero influence.

It’s like in your life. Your life is shaped by things you’re doing consistently. Not from time to time.

If you want to be a successful Forex trader you’ll need the dedication to trade according to your trading plan. You’ll need your own rules, your strategy.

How to trade Forex?

You’ll have to learn how to predict the movement of the forex market. That’s not all! There is more!

For each transaction, you’ll need to predict how the value of one currency will go against the other in the currency pair. Some pairs are moving 100 pips every day. That depends on the market conditions for the day you’re trading. And it is changeable. Sometimes during one day, the changes can be enormous.

Guys, I really hope you know what the pip is! Nevermind, it is the smallest movement of a currency pair. For example, if you trade EUR/USD currency pair and it moves from 1.1900 up to 1.2000 you’ll make a 100 pip move.

In forex trading, you can buy different lots of the base currency you want to trade. I hope you know what is a “lot size” in the forex?

The important part of forex trading is to look at indicators to choose the pair and the time to trade. Indicators could be literally everything, from price patterns to macroeconomy.

You might think it’s hard to follow but here is your trading plan to help you. Also, you can find some accurate apps and use them. Or, you can use some trading signal provider. Whatever you choose you’ll have to understand the forex is full of mysteries, especially for new traders. So walk carefully throughout this field. Never rush! It’s better to miss the trade than to have the wrong trading and lose money.

When you fully understand forex trading you’ll see unlimited opportunities there. And you’ll see how to make living trading forex.

How much money can I earn trading Forex?

Yes, I’ve heard a lot of stories of Forex traders that made millions in the short term. I’m sure you’ve heard them too. Forget them! Forex trading isn’t some get-rich-quick scheme. It’s a business. You don’t believe it? Okay!

That’s not your pair of shoes. These traders are another category, you’re not the same. You are unique! All your characteristics are different. Your risk tolerance is unlike the trading strategy, you have different rules of risk management. Almost everything is different. Don’t compare yourselves to them.

How much money can you make trading forex? I don’t know. Nor anyone can know.

Think about the size of your account, also, how many trades you want to do per month, expected returns, will you withdraw your profits, or you’ll reinvest, how much you’re ready to risk per trade. When you get the answer to all these questions you’ll be able to calculate how much money you can earn in forex trading.

In any case, you must have realistic goals set in place. You must have a trading strategy with a positive outlook. Also, you must trust your trading plan.

How to make living trading forex?

It is like any other job. That means you’ll need skills and strategy. Motivation plays a great role. Find a mentor, that is the easiest way. Let successful traders inspire you. Learn from them. But remember, you’re in charge, you have to create your unique path, you have to shape your trading career.

Bear in your mind, every profitable trader made mistakes and still makes mistakes. You will make them too. But try to do that without sacrificing a big portion of your trading capital.

3rd September 2020
How To Profit On A Smartphone?

You can use your smartphone to trade forex through one of the many Forex apps. You don’t need a PC or laptop anymore.

By Guy Avtalyon

Do you know how to profit from a smartphone? No, you don’t need to sell it. It’s about how to use it and profit. Actually, you can start profiting on a smartphone right now. This second. I’ll explain to you how to do that.

What I am talking about is trading. You can trade stocks, forex… Trading is the easiest way to earn money from your smartphone. For example forex trading.

Forex trading runs 24/7. Can anyone stay in front of a computer or laptop for 24 hours? You know the answer already. So, you can find a broker with a platform that offers currency trading from a smartphone. Everything you need is good internet access.

Here is how to profit on a smartphone even if you’re traveling or you’re far away from your computer.

Let’s say you have an open position and you’re waiting for some news to decide what to do. But you have to leave your office or home and will not be able to check the news for the next several hours. Here is your smartphone on the scene. You’ll get the necessary news on your mobile. So, you’ll take out your mobile from the pocket, open your chosen trading platform, close the position you hold and earn your money. Make your profit!

Trading forex or stocks on a smartphone is one of the best solutions that can make you money. Also, one of the most comfortable.

The advantages of trading on a smartphone

First, you don’t need to invest money to buy a smartphone because you already have it. Second, you don’t need extra money to invest in the internet because you already have it. Well, the truth is you’ll need faster internet and more megabytes. Third, quite good apps you can find for free. Fourth, you don’t need a special room or so to trade, you can do it from any place all over the globe. The rest depends on your trading personality.

Sounds good enough, right?

Basically, it is the most comfortable. Imagine the following situation. You’re stuck in the traffic jam. What are your chances of using a laptop and trading from your car? There are some, to be honest, but you don’t have your laptop in hand. Your smartphone is right there. And you have some apps installed (we’ll talk about apps more later) so you don’t need to waste your time to find good internet access. You already have 4G or even 5G for outstanding internet service.

You are always up-to-date, you have market data in real-time. In my opinion, the smartphone is much better and more convenient than a laptop. When you use a smartphone for trading forex, you have real-time currency rates. That’s all you need to trade, sell, and buy currency, whatever you like based on your strategy.

Forex mobile apps simplify your trading

The truth is they make it more flexible. When trading on smartphones using apps there is a minimum chance to lose profitable trade opportunity. You can trade anywhere and anytime! What is better than this? So let’s see How to profit on a smartphone.

Forex trading apps for smartphones or IPhone are incredibly useful. No matter if you use them for your business or for trading currencies. Well, this post is about trading currencies. So let’s see what apps are recommended as best.

At a glance, without doubts, you can use TD Ameritrade, ThinkTrader, MetaTrader, and FXTM.

Among the stock trading platforms to practice with you can choose Stock Trainer.

Stock Trainer is a training app experienced for android. If you still don’t have enough experience in the stock market you’re qualified to use this app. You’ll get a virtual trading experience, necessary knowledge with real market data, you can practice where to set stop-loss orders, limit-orders, where to take profit. Moreover, you’ll find this app in the Android Google Play store and for free.

Thinktrader is a wonderful trading platform that provides analysis. The main advantage is that this forex trading app is really advanced. This app will help you to spot and track currencies worth your money. Also, you’ll have access to indicators and tools for drawing charts. Thanks to split-screen and quad-screen modes you’ll be able to watch several markets at a time. This app will provide you, besides analysis tools, trade data, streaming quotes for the major currencies trading, relevant news in real-time, all markets from Europe, America, and Asia are covered. But most importantly you’ll have trading alerts, the trading simulator, the risk scanners, statistics reports, and many other useful tools. This app is available to free download for iOS and Android.

FXTM is an automated forex trading platform. Maybe the most popular among forex traders due to its full regulation. Anyone can use it, from beginners to advanced traders. Also, it offers leverage, so you can boost your earning potential. But the same leverage will not be offered to every trader. It will be done according to your experience. The great advantage for beginners is that you’ll have a plethora of educational materials on hand and a lot of free trading tools.

The other benefit of using Thinktrader are variable and fixed spreads. Also, you can withdraw your money in a few minutes after you close your trade. You can make trades with quick execution rates. This is a very convenient and trustworthy app. The app isn’t free to download, you’ll need a deposit of $1.000.

MetaTrader is another extremely popular forex trading platform. What can you expect here? First of all, interactive charts, superior tools, and also, you can trade different financial instruments. Meta Trader is suitable for real traders that use Android. This app offers a comprehensive analysis of the markets. It uses real-time interactive charts that include historical data for any financial instrument. So, you can easily monitor quotes and price movements and make money.

Trading in Forex on your smartphone

So, you can see how to profit on a smartphone.

You can download so many apps related to trading. Even if you don’t have a full understanding of forex trading these apps will help you a lot. You’ll have, for example, all forex news if you have a forex news app, all accurate data, you can learn to trade or gain more experience. It’s so easy to find a free app that will help you in decision making. By using a smartphone you’ll be able to trade easy, smooth, and fast. You don’t need a robust or high-end computer to make a trade. Moreover, you can trade no matter where you are, you don’t need to sit at home or office and monitor your trades.

Like it is with any job: you should work smart, not hard. Apps are here to make our trades easier and more profitable.

In short, that is how to profit on a smartphone. It’s so easy today. So, don’t hesitate, download some free app, test it, practice and make your first real trade after that.

Happy trading, guys!

27th August 2020
How To Trade On A Laptop?

A trading laptop has to be able to process a large amount of data quickly. You’ll need multiple windows open or you’ll need a few monitors. Here is how to set up your laptop for day trading.

By Guy Avtalyon

Can I trade on my laptop, asked me dozens of readers and I said yes, but you must know how to trade on a laptop. Well, I saw here some misunderstandings about what is the best computer configuration you need for a day trading. Technology is continually advancing, so you’ll need a computer with adequate memory. Also, the processor must be really fast.

Guys, you wouldn’t like your computer lagging all the time. Or even worse, stalling when you need to act quickly. Markets will not stay the same while your computer is trying to load or crashing every several minutes. The trading software will need a great memory and processor. For charting, you’ll need the same. Especially your processor must be fast and up to date.

The simple answer to the question How to trade on a laptop would be: by something really good. Yes, I know. It might cost you a lot but think. If you have a fair enough good machine you’ll be able to trade in a proper time and, this is very important, you’ll be able to use all the necessary tools. For example, day trading is something most traders want. The point is that it demands that you have a whole tools kit. Otherwise, you’ll never do this job well.

How to trade on a laptop easily?

These days’ trading is based on electronics. You enter the markets over the internet, right? So, you need a computer or laptop to make a trade and have direct access to your brokerage. The other tools you’ll need are market data in real-time, and great trading platform. But keep in mind, these are basic tools. You’ll also need a charting platform and many other trading tools. The common thing for each of them is that all of them require great computer performances.

So, how to trade on a laptop?

Isn’t it easier to have two or more monitors since you’ll maybe need to look at charting software monitors, broker’s website, market data? Well, having a few monitors isn’t a necessity but is an advantage.

Well, I have to be honest. Trading with a desktop PC is easier and cheaper than with a laptop. Do you remember what I’ve said about requirements toward memory and speed? Well, a PC is more favorable since it can be configured for more speed and processing ability than a laptop.

What are the main problems with laptops? First of all, they have limited space, the components are smaller but more expensive. So you’ll need more money to spend if you want to have a high-end laptop. It could be cheaper to buy a PC with similar performances.

The other problem could be to connect several monitors. Let’s say your laptop’s screen is smaller than the monitors you can connect via DVI port, for example. So, it could be exhausting trading while looking at a small laptop screen and large monitor next to it.

Well, not all is better if you use a standalone PC. Let’s say they are robust, in the first place. And you don’t like to sit in front of it the whole day or even longer while monitoring your trade. You really don’t need it if you trade on a laptop. It gives you mobility. Especially if you prefer automated trading that is known as robo or algorithmic trading, also.

So, how to trade on a laptop? Yes, I see you’re impatient. You have to install your system on a virtual private server (VPS). What is this? It is a remote server that is located near or close enough to the broker’s server. You’ll have a minimum of latency, minimum delay in placing your trade orders. In essence, your trades will come from the remote server connected to your laptop.

What do I have to do to trade on a laptop?

If you have a high-end laptop the only thing you’ll need extra is a separate monitor connected to the right port. The other solution, if you want to connect more monitors, is to buy one USB video adapter for each monitor you want to connect.

Yes, you might say your laptop doesn’t have several ports. Well, there is a solution also for that issue. Just get a USB hub and voila, your two or more extra monitors are connected.

Hey guys, one thing more! Don’t try this if your laptop doesn’t have enough RAM, for example, 8 GB at least.

What tools will you need for trading on a laptop?

As I said before, you’ll need a powerful laptop. The other important tool is a trustworthy platform to trade. Numerous brokers will give you access, you have to be smart and choose one with good charting software. Why is this important? Because if you want to be a profitable day trader you’ll need to act quickly and how to do that if you don’t have an option to see the tick charts and timed charts. For day trading it is imperative to have 1-minute, 5-minute, hourly charts.

As a day trader, you’ll need software that allows you to place trades quickly. Your trading success heavily depends on your strategy but if you don’t have advanced software you won’t be able to execute your strategy properly.

The main goal here is to find the best software to meet your needs and to connect it with your trading service. That is how you can trade on a laptop.

The problem may arise if you don’t have fast internet. With a slow internet connection, it is impossible to trade. In day trading, hundreds and hundreds of data will stream directly to your laptop every second. What do you think, is it possible to follow the price moving in real-time with slow internet? Of course not! So a fast internet is an important tool for your trading success. Otherwise, you’ll receive out of date data and your trading will fail. You’ll lose your money.

Also, you’ll need to backup your internet access in case of service’s outages. Yes, shit happens! Use your smartphone as a backup. You can create a hotspot and continue to use your laptop or you may have direct access from your smartphone to your trading platform. Never use the same internet provider for your laptop and for your smartphone for this reason.

Appropriate market data is a necessary tool

Day trading demands a perpetual stream of market data, info about the price movement. Your broker will give you market data, but it’s up to you to demand the kind of data you need. For example, if you trade forex, you’ll need forex market data. Forex brokers give data for free for all forex pairs which is convenient because all you need to do is to open a chart and you’ll see the price data.

For the stock market, you’ll have to subscribe to the data you need. Don’t add too many.

It is possible to trade on laptop

When you ask me how to trade on a laptop I have only one answer. I’m trading on a laptop. I’ve never used a PC. Is it a harder or simpler solution I don’t know since I never made a comparison. And know what, I’m satisfied. This doesn’t mean you’ll be also. But this post is written because you asked me. So, this was how to trade on a laptop.

Happy trading, guys!

21st August 2020
Trading Personality – How To Know What Style Suits You best

What are the main characteristics of different trading styles, how to choose the right one based on your trading personality? How to pick the trading style that suits you the most?

By Guy Avtalyon

I hope you figured out the “best” trading system for you but do you really know your trading personality? Of course, the trading system you chose is one that suits your personality, I hope. No? Where is the problem? How is it possible you made such a mistake? You tried with some quizzes on the internet, right? But is that the right way to figure out your trading personality? It’s for fun, for God’s sake! You must be serious when choosing the trading style, your money is in play.

How to choose a trading style based on your trading personality?

We have four basic styles of trading and each trader will choose the one that suits him or her best. We all have to choose between day trading, scalping, position trading, and swing trading. Which one will a trader choose depends on trading personality. In other words, our trading style depends on our personality.

If you think it is an easy task I have to tell you’re completely wrong. Your trading style must be in harmony with your personal characteristics and knowing them is just half of your way.

Are you still with me?

Okay! Let’s go further!

I suppose you’re new in this field. So, here is how to match your trading style with your trading personality. If you’re still reading this it is more likely you didn’t find the right trading style yet. I can help you.

Finding the right trading style that fits your trading personality is extremely important. Otherwise, you’ll have losses. And nothing but the stress, losing money and finally you’ll give up. That decision could be wrong because you’ll miss the chance to earn money.

How to choose the trading style that best suits your personality?

If you never harmonize your trading style to your trading personality or even worse, if you never recognize what your personality is in trading, you’ll never become a profitable trader.

But here is a tricky part. You have to be honest about your wishes and your possibilities. Moreover, you’ll have to put them in alignment. They have to walk side by side, supporting and taking care of each other.

So, be honest when answering these questions.

– What time frame do you prefer when trading? Is it position trading, swing trading, day trading, scalping?
– How do you recognize yourself, as a fundamental or technical trader?
– What is your risk tolerance?

These are three basic questions and based on your answer you’ll figure out what is your preferred trading style. I have to repeat, you MUST be honest. The most important thing is to avoid your emotions. It really doesn’t matter what style you like more. It is all about how to match your trading personality with your trading style and you’ll have to do that without emotions.

I know it is the hardest part.

To put more pain into your life I have to tell you that you’re not choosing the style only, you’ll need to decide the type of trader you want to be.

Are you a discretionary trader and system trader?

Some of you will be able to recognize at first glance but the others will need to try both types before making any decision. Nothing is wrong with that. Always keep in mind that your hard-earned money is in play and you want to see it growing, not to lose it.

From my point of view, both types have the potential to be profitable. But it’s up to you to find the one that suits you best. My choice shouldn’t be yours necessary. Choosing the right style and the right type of trading that suits your trading personality is an individual decision. What I can do for you is to give you some hints and clues on how to do that and avoid mistakes that could lead you to great losses.

I want to share one secret with you – when choosing your trading style keep in mind that less is more. What does it mean? It is better to choose one strategy that works for you and when you master it and advance it, you can easily shift to another if it is necessary or you want changes.

So, let’s go more deeply into each trading style and see how they match your trading personality.

Position Trading

Position trading is suitable for long-term traders since it is comparable with holding an investment for a long time. In position trading, your trades may last between several weeks to several years. The length of your trade will depend on trends because the main focus is on the price movements. Position traders seek stocks with the ability to grow in the long run. They believe when the trend appears, it is going to continue.

Trading personality characteristics for a position trader

First of all, you don’t like or don’t have time to monitor the markets all the time. Further, you’re not an aggressive type of trader. You don’t prefer instant treatment and, more importantly, you have a large portfolio.

In what circumstances position trading isn’t suitable for you?

If you are an aggressive trader this isn’t for you. Also, if you’re not patient and have a small portfolio, so you would like to enlarge it. Or maybe, you want to profit instantly.

Day Trading

For day trading style you’ll need a good education and large funds. For being a day trader you’ll need a great knowledge of short-term strategies and to recognize even the smallest market’s moves. Day trading is when you enter and exit the position during one trading day. Your profit will come from small changes in the market.

Trading personality characteristics for a day trader

You’ll need a great knowledge of the market you want to trade. Also, you’ll need a large capital ready to invest. In case you’re a quick thinker and quicj=k decision-maker this strategy is suitable for you. If you think you can maintain severe discipline, this could be the right trading style for you.

In what circumstances day trading isn’t suitable for you?

This isn’t a good choice for beginners or for the traders with a lack of capital. If you’re not experienced and tend to sell your winners too early or you’re keeping your losers too long, this style isn’t for you.

Let’s go further! I hope you’re interested.

Swing Trading

In this trading style, you don’t need to continually monitor your trades. You’ll hold the position for a few days because you’ll follow the trend and it may last a few days. When it is an uptrend you’ll go long, while when it is a downside, you’ll go short. This is a perfect style for traders who have regular jobs and can’t monitor trades all the time.

Trading personality characteristics for a swing trader

If you’re patient and can wait for the best trading opportunity this is for you. This means you’re not going to panic when the trade changes direction and moves against you. In this style, you don’t need full-time devotion to the trade and you don’t need to make your trading decisions quickly.

In what circumstances day trading isn’t suitable for you?

If you feel nervous and get panicked when the markets change direction against your favor, it is better to avoid this style. Also, if you’re not able to recognize the trend. Trend following is very important in swing trading. If you can’t, just don’t swing.

Scalping

This is the quickest strategy among trading styles. You’ll take profits from tiny price changes, but they will frequently occur. If you want to become a scalper you’ll need to make several trades within a few seconds. For this style you;ll need a great and accurate exit strategy. You’ll have small gains but frequently. These small gains compounded, have the potential to generate a large profit. But be careful, this style could be a double-edged sword. Just one big loss could delete all your small gains.

Trading personality characteristics for scalpers

If you’re a quick decision-maker, and able to act without hesitation, this is your best pick. Also, you’ll have to be fully focused on your trades while performing them. This style requires a lot of time to devote to trades since you’ll need to act quickly. Moreover, you’ll have to know how to handle stress while trading.

In what circumstances day trading isn’t suitable for you?

If you’re not focused enough, feel stress while have to make quick decisions, or hesitate to trade

How to pick the right style based on your trading personality

I have to be honest, there is no magic or easy answer. It depends on your individual characteristics and conditions. Also, you have to take into account some other variables.

The most important part is to be realistic and honest when evaluating your trading personality. You MUST know what trading style is easiest for you to handle, which style will best fit your abilities. When you choose one it doesn’t necessarily mean you’ll have to stick with it. You can change it. Choosing a suitable trading style is a process. It’s not set in stone. Hence, it’s changeable. But don’t change it fast and try numerous styles in a short time. Evaluate and estimate before choosing any. And stick to it even if you have losses at first. Try to find where you make mistakes and fix them, make some improvements. The trading journal will be a great help to do that. If you made the right decision you’ll take profit. Your loyalty will be rewarded.

14th August 2020
Best Trading Strategy Without Indicators In Forex

This trading strategy means you’re trading without indicators. It is also called a naked forex trading or price action trading.

By Guy Avtalyon

Let’s say you’re a beginner in Forex trading and still don’t understand indicators quite well so you would like to know what is the best trading strategy without indicators. One of the best ways is to trade using a price action trading strategy. Actually, I’m gonna suggest you some.

Forex trading is complicated for some people because so many technical indicators are involved in trading. One of the simplest forex trading strategies is the forex portfolio price action. If you use this really the best trading strategy without indicators. And you’ll see, you’ll find some of the trades by using this strategy.

What is price action trading?

Price action trading is the best trading strategy without indicators and I’ll show you how simple and favorable it is. The point is to find out how the price will behave when you test it in support and resistance zones. This strategy will help you to identify where the price movements form a swing high or swing low. The simplicity lies in the fact that you don’t need moving averages or some lagging indicator to identify it. These indicators can be confusing but with a price action trading strategy, you’ll have a clear chart. Why am I so sure this is the best trading strategy without indicators? Because thanks to it many forex traders are very profitable. No indicators are involved, you don’t need to know them, no need to understand them or recognize.

So, let’s be more concrete. Here is how to use price action strategy.

The best trading strategy without indicators

As I said no indicators involved but we’ll discuss how they can be dangerous if you use them in the price action strategy.

Now, you have to pay attention to price action setups. If you notice that there is no price action, it is a so-called dead zone. Who would like to trade there? Literally no one. The dead zone is as the name indicates, exactly that – dead. Nothing happens there. The price doesn’t make any move. The sellers and buyers are like on the teeter. The dead zone is a standby zone, nothing happens and everyone is expecting what is going to happen. No one wants to trade because it is impossible to enter or exit the trade in the dead zone and win. The reason is simple, no one wants to do anything. So, never enter the trade in a dead zone.

Forex trading is a game of nerves

So when there is no price action you’ll have to wait until something starts to happen.

The other price action setup is the red zone. That is where all price actions are happening. That is exactly the point where you’ll have to make almost all your trading decisions. This is a zone with a lot of price movements. You have to be focused on such an occasion. Even with a move of 20 pips only, you’ll have a winning trade. With 100 pips you can potentially make a lot of money.

Your next goal is to reach the end zone. As I said, the red zone is where the price actions happen, but you’ll have to move closer to the end zone if you want to maximize your profits. Only then the price action strategy will give you its best. So how to find this zone? Simple! When the market is 10 to 20 pips wide that means there is enough space for changes and adjustments. This spread of 10 pips is exactly what you need for the best trading strategy without indicators. The price action strategy needs changes to provide you a successful result and exit in profit.

Price action strategy without indicators in Forex

All you have are support and resistance and volume. Volume isn’t an indicator because it is a statistic.

So, this strategy is only about two things. First, you have to identify what is the price action in support or resistance zones. If you notice the market comes into high resistance, the traders now can do several things. The first is that they could do nothing because the price enters the resistance level. Second, traders could start to sell. If they didn’t have an open position, they could start to sell short. Also, traders could buy.

But what we need here is to see a large volume on a breakout. We need a lot of buyers to move the price to break the resistance. So, what we really need is a lot of buyers, a lot of orders, a lot of trades.

But pay attention! This can be a tricky part. What if a new resistance occurs? It is possible to happen and here is what you’ll need to do if you want to profit. If you notice a new resistance it is likely an exhaustion pattern. As I mentioned it is not the right time to buy. You’ll need more space between the point you entered the trade and the point where you exit. Some traders would trade the new breakout. But it is the wrong decision. You should wait until the price breaks the new resistance, just be patient. But what if the price does not break out above it?

You’ll have to wait until resistance becomes a support to buy low and sell high.

Drawbacks with forex trading without indicators

The price action strategy is also called a naked forex trading. The main problem here is that you’ll need a lot of developed skills to use this strategy. This means you’ll have to understand market psychology, why the market moves, and you’ll need to recognize how the market moves, and how it will move. Also, sometimes you’ll need to rely on intuition and it isn’t the best way. At least, it isn’t a safe way. But it can be a very profitable strategy once you develop your skills. Maybe you should start with a demo account, that is something I always recommend to beginners.

Anyway, you should look at price action first and then at indicators. If you need, use the indicators to confirm the decision to make the trade. This strategy will save you time, you have only two factors to estimate. Your trades will be less stressful and simpler. The final consequence is that you’ll be able to trade more precisely. In any case, never just jump into the trade, you’ll need to know when to enter and when to exit your trades. Don’t do anything before you determine these points.

8th August 2020
How to Get Rich Trading Stocks?

Many people get rich through the stock market. You too can get rich trading stocks if you do what is necessary.

By Guy Avtalyon

How to get rich trading stocks? Trading is very hard and stressful for some traders. But, on the other hand, if it isn’t it couldn’t be so possibly beneficial. Let’s see how to get rich trading stocks.

Can trading stocks make you rich?

In the long run, it is possible if you start to invest while you’re young, have long-term goals. But for that to achieve you’ll need a decent capital and have to add more money continuously. The good news is, you don’t need to be an expert before you start investing. But investing is much more, not just simply buying a stock. You want to know how to become rich by trading stocks. And the short answer is – yes. Here are several tricks about how to get rich trading stocks.

Why it’s possible to get rich trading stocks

First of all, it isn’t easy so you’ll need to recognize the difficulties. When you accept this fact you are ready to develop the skills necessary to overcome them. Keep in mind, trading isn’t a lottery game. Yes, you can find a lot of stories telling how some traders become rich overnight. They did it, that’s true but very rare. The real successes come from trading day after day. The possibility of losing is big but if you’re disciplined the reward will come. So, persistence is extremely important. That will be the first hint on how to get rich trading stocks.

Forget luck. Trading should be constant and systematic with strong risk management. Your utmost goal is to protect your trading capital and reduce the risk of trading in each trade.

What to do to get rich trading stocks?

You must have a focus on hot stocks. Pay attention to those that are hitting new highs. You must be ready for that. Follow and examine their patterns. Don’t waste your time to find some exotic one, just focus on those that are already raising. I suppose you have a trading plan, it is necessary. Stick with it and stay in the stock until it reaches a new high. Don’t pay attention to stocks that are dropping at this moment. When he stock hit the new high, sell it.

Short selling to get rich in trading stocks

You don’t need a bull market to get rich. This is a misconception. Try to recognize the opportunity for short selling. Trading isn’t investing, so you don’t need to hold a stock for years no matter how much you love it. You’re trading because you want to profit in a short time. Follow the example of day traders. Their earnings come from short selling.

What to do if you have a losing trade?

Cut your losses promptly and put your ego aside. Yes, you will have losing trades. But never try to sit at the corner and let your feelings overflow you. Losing trades are just the steps to success. Instead, when you face a setback, cut your losses quickly, and go back to the track. Do it immediately. Never sit on your failures. Look to the future straight. You have to put into the calculation losing trades. Just plan them. But plan to move on when it happens. Exit the losing trades on time and quickly enter the position on the new one. Keep your trading journal.

Take partial profits

Listen, there is no possibility to earn if you don’t take the profit. Take even partial profit. Also, take your profit quickly at the moment you’re sure there is a profit. This is very important. You have to know that the stock market is changing very fast. If you miss a chance to take the profit you’ll end up in losses. Take the profit any time you can. No matter how small it is. The point is to avoid losses. You’ll feel better even with small gains, much better than with losses. Your confidence will grow. That’s how to get rich trading stocks.

Use trading stocks app

This world is changing so fast and we all have to know how to benefit from that change. So, we all have to change our habits and old fashioned approaches. Individual traders have zero chances in the stock market if they never adopt some of the new technologies. Don’t let you be afraid of them. Trading apps are your friends. They can provide you to trade easier and smoothly. You can enter and exit the position on your phone. But before you use any of the present apps examine them, read reviews, go to forums, ask people, talk. Start to use the new app with a small amount to test it first.

Avoid illiquid stocks

Yes, I know, illiquid stocks make big promises but how much they can grow. Is there any uptrend? How to earn if the changes are modest? You need high traded stocks, not some lazy sleeper. If you want to earn a serious amount you’ll need to trade high liquid stocks. So, the point is not to believe in the stock’s fairy tales. Sometimes there will be a lot of hype and big promises around some stock. Try not to listen to them. Avoid that noise. Stay focused on the stock’s action. Examine the stock historical performance, how it actually was acting in a particular situation, what causes it to rise or drop. By examining this you’ll know what to expect in the future.

Well, not exactly, because the past performances will never guarantee future actions, but you’ll have an insight into stock nature. So, you’ll be able to make decisions with more accuracy.

Diversification and trading with leverage

Let me explain something. If you’re an investor, reasonable diversification is good. But if you want to get rich trading stocks and earn a lot, you should avoid diversification. Trade only one or two stocks and use not more than 30% of your investment at a time. That’s the way to earn millions by trading stocks. This is confirmed for so many times. You may think it is easy to stay away and not invest more money when the stock price is following an uptrend. No, it isn’t. But you must be disciplined. You have to stick to your trading plan and never go across it.

As I said, diversification is good for investors but for traders can be dangerous because you’ll have to be focused on price action. How can you do that if you have many stocks? You’ll simply fail.

Buy bottom, sell top isn’t always a right fit

This old mantra among beginner traders is canceled. I know you might believe I’m crazy but think. It is hard to take the maximum profits. Instead, choose to match the movement of the stock price. That doesn’t have to be the top and bottom. You can enter the trade in the middle and exit a bit below the top and take the main profits. In this approach, you’ll have reduced risk because you enter the trade in an uptrend and also exit while an uptrend is present. No, you’ll not miss the big profit. You’ll miss losses if you do so.

But you have to plan this. For long-term success in trading stocks, the trading plan is alpha and omega. Never enter the trade without a specific trading plan. Before you enter the position you must know what is a risk/reward ratio you expect from each trade. Stick to that no matter what others think or do. Never change your trading plan in the middle of the game. That’s how to get rich trading stocks.

Have a plan, plan your failures

Getting rich in the stock market can look like a discouraging task for some of you. But it hasn’t to be. Honestly, it is so easy to achieve if you follow these rules. If you have some doubts, if you don’t believe you can make money In the stock market, well, it’s more likely you’ll never do. But if you create a plan, plan and understand the setbacks, and have proper risk management you have great chances to get rich trading stocks. Moreover, you can become a millionaire.

To get rich trading stocks you must understand and adopt the idea that you will lose money on a regular basis. When you adopt that thought, you’ll be in positions to become successful at it. Never take the stock market for granted, always be on guard. Keep in mind that the stock market will steal your capital if you give it a chance. The odds of getting rich can be against you only if you fail to recognize the possibilities.

3rd August 2020
How to Increase the Number of Trades Per Day?

Your strategy limits how often you day trade, overtrading can happen when you take more trades than your strategy allows.

By Guy Avtalyon

I heard so many times this question: How to increase the number of trades per day. I’ll tell you something that may surprise you. You don’t have to trade every day, not even every week. So how to make consistent gains? Actually, you can generate even better profits if you don’t trade frequently. For that to achieve you don’t need to manage numerous open positions and spend days in front of your computer.

Surely, you’re waiting for me to tell you about the special secret.

If you stay long enough, you’ll see!

Firstly, you can trade stocks on how often you want but in a non-margin account. Of course, you don’t have a non-margin account otherwise you wouldn’t ask this question.

So, you’ll have to trade under the rule known as “pattern day trading rule”. What does it mean? The number of your trades is limited if you don’t use your cash account. On the other hand, if you use cash or a non-margin account you can trade as many times as you want. However, if you use a margin account it is allowed to trade three times every day for a five day period. If you are smart you can extend this number to four. For example, to avoid this rule you can buy the stock at the end of the trading day and sell it the day after. In this way, you’ll hold stock for less than one day but you’ll have more trades.

How often to trade stocks?

This Day Trading Rule will limit you. Keep in mind that the number of trades means the number of transactions, not the number of different companies you trade.

The day trading rule operates by identifying some traders as “pattern day trader”. Such traders must have deposited $25,000 in their accounts. The good news is that you don’t need to cover this amount in cash only, you can use other securities also. But if you don’t use a margin account this rule cannot be applied to you. If you’re in cash,

you don’t need to comply with this rule, of course.

But, what is smart to do? What is the reasonable number of trades per day? How to increase the number of trades per day? First of all, if you have less than $25 000 the reasonable decision is not to use a margin account. In this way, you’ll reduce the risk. If you’re a beginner it is smart not to use leverage. Just take care that some mistakes can wipe you out completely and trading with leverage is one of them.

However, it is a completely different situation if you have experience but not enough capital. If you want to avoid the day trading pattern rule you should do the following.

Tricks on how to increase the number of trades per day and more often trade stocks

Open added accounts. This is the easiest way. For example, you can open three different accounts to execute day trading. This strategy is one of the tricks actually. I already mentioned that the rule can limit the number of transactions per account. But if you have several accounts you can trade more often and you’ll not be flagged as a pattern day trader. You can make 15-days transactions from 15 different accounts.

Well, the problem could be how to open multiple accounts in your name. Well, don’t do it. Open different accounts in the name of your family members, for example. It is completely legal for you and your family members to have trading accounts with the same broker.

Well, if you don’t trust your family, there is still a chance to open multiple accounts with different brokers. That’s how you can overcome the problem of “pattern day trading rule”.

But be careful, this can’t last forever. It’s a matter of time when the brokers will start to control you. The consequences aren’t pleasant. They could increase the minimum collateral limit even if you use your cash account or other non-margin accounts. Their limitations can be tied to social security numbers or they can request to connect the biometric information for using these accounts.

Therefore, if you want to be a daytrader and break the limited number of trades per day you’ll need to have some other tricks in the pocket.

Trade in the markets outside your country

The day trading pattern rule is required by American regulators like FINRA and the SEC. Hence, this obligation does not surely hold true in stock exchanges out of the US. You can look at some foreign markets and exchanges. Many of them don’t have such rigorous demands. Well, you can’t just jump into another market, you’ll need to examine it first. For example, things like taxes and legal issues, liquidity and risk matters, etc.

So, you may find another way often to trade stocks when you want a day trade but your capital is below $25.000 which is required in the US. These that I presented you are just a few strategies on how to avoid pattern day trading rule.

But frankly, this rule is helpful to both traders and brokers. It decreases the risk for both sides.

The pattern day trading rule appeals to traders that use a margin account and only on the territory of the US. If you trade out the US market you don’t need to respect this rule. Also, you don’t need to follow this rule if you’re a cash-based trader.

How to increase the number of trades per day? I hope you got some clues now. Just, keep in mind any combination of selling, buying, or shorting a stock within one day can be recognized as day trading.

Keep the balance in the number of trades

Day trading is the most fascinating and queried trading style. In day trading you have to close all positions before the end of the trading day. The benefit is that you’ll avoid the overnight gaps. But is it a real benefit? No matter how day trading may look lucrative it has drawbacks too. Let’s ask the stats for help. The stats say that almost all returns in the stock market over the 20 years and more, come from overnight gaps. If you remove the risk and you don’t want to have a market gap against you, you’ll reduce the profit chances. Some traders wrongly believe that under-trading is better than overtrading. This is a mistaken opinion. If you have a winning strategy, then by bounding trades, you decrease your chances of success. Think about that.

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28th July 2020
How to Find a Stock Worth Trading?

To find a stock worth buying several parameters should be estimated and examined. Here is what really matters.

By Guy Avtalyon

If you want to know how to find a stock worth trading, think about the stock’s valuation, strategy, plans for diversification, and your appetite for risk.

The first consideration on how to find a stock worth trading should be the company’s earnings. Profitability is important because when you buy a stock, you’re buying a part of the company. Calculate its P/E ratio, just divide the share price by a company’s annual net income.

For example, if a stock trades at $30 and has an annual net income of $3 the P/E ratio is 10. The general rule of thumb: if the stock’s P/E ratio is higher than the broader market P/E, it is considered expensive and vice versa.

But the P/E ratio isn’t a perfect measure. For example, a small, fast-growing company may have an extremely high P/E ratio but earnings are poor while the stock price can be high. You have to gauge if there is any potential for strong growth and if there is, such stock may not seem expensive.

So, look for trends in a company’s earnings growth. Find do the earnings regularly increase. If you have a confirmation for that, get it as a good indication that the company is operating well. There is no need for an incredible increase, even a small increase can be an indicator of a positive outlook, but only if it is consistent over a long time.

Volatility matters

The volatility in the stock market is natural. The companies are losing value in the markets from time to time but also could increase the value. Every trade you make in the stock market is actually kind of betting on the market direction, on the volatility, or both.

For stocks trading, volatility is good for the long term because you have to make a profit. And you can do that only if the stock price fluctuates. If you really want to find a stock worth trading, seek the high volatile stocks.

If the stock has a high volatility the value could be spread over a large span of values. This means the price of the stock could fluctuate drastically in a short time, which is ideal for fast-moving trading. Contrary, if the volatility is low, the stock’s price will stay almost steady which offers fewer chances for a quick profit.

Beta as a measure of volatility

Use beta as a measure to unveil how volatile the particular stock is.

The beta can predict the total volatility of a stock’s returns against the returns of a related benchmark, for example, the S&P 500. If you find that beta value is, let’s say 1,3 that means the stock price moved about 130% for each 100% in the related benchmark index. Hence, if the beta value is 0.6 that would mean that stock has moved just 60% for each 100% in the related benchmark.

Trade volume matters

Volume is the total number of shares traded in a market during a particular period. Each transaction adds to the total volume. For example, if during one trading day there are 100 transactions, the trade volume for that day would be 100. How to find a stock worth trading when using trade volume? Volume works as a great indicator that adds weight to the market move. For example, if some sudden spike appears, the strength of that movement depends on the volume during the time observed.

When picking a stock worth trading, pay attention to how great is volume. The greater volume, the more important the move is.

How to find a stock worth trading?

So finding a stock worth trading is a matter of combing for stock with large volume, a current spike in volume, and a beta higher than 1.0. The stock that lacks these elements will be very difficult to trade successfully.

The way you use these factors will affect your possible profit. The trading style depends on your trading strategies. You have to find a stock whose price changes to profit from that fluctuation. It is impossible to profit from trading stocks if there are no changes in price. Also, the same comes if the volume is low. The low volume shows a lack of buyers and sellers. How to profit from that?

Stock Price

You may consider the stock price. Some companies could distribute additional shares and increase the number of available shares but lower the price per share in the market. Some will never do that. It is considered better for investors because such stock could rise more in price and worth more after some time. Anyway, the stock price will show you how many shares of a particular stock you can buy for the capital you have. Pay attention to stock price historical performances. That will give you a clue how the stock is possible to play in the future and is your chosen stock worth buying.

But active traders will prefer, for example, stocks in play but they’ll need to carefully watch the news because such stocks are not the same every day.

How to find a stock in play worth trading?

These stocks are suitable for day traders because they are changing dramatically sometimes during the trading day. Also, they carry enough volatility to generate favorable risk and reward trading ratios.
Day traders will normally look for stocks that have big price changes during the one trading day. These stocks are not a good choice for investors with a long time investment horizon.
Active traders expect more action. They exit the trade much before the end of the trading day, sometimes a few minutes after they enter the trade. These trending stocks can be found on many broker’s trading platforms. There you’ll find stock worth trading.

Bottom line

Trading, even if it is considered as a risky strategy, can be highly profitable. Of course, if you know how to find stock worth trading. As we mentioned above, pay attention to trading volume, volatility, liquidity, and price. All of these criteria together will help you to find the stock worth trading.

8th July 2020