Why Day
Trade?
If you are wondering like many do, how to
become financially independent but without the means to run a successful
business or the money to invest for profit, please read on...
The myths of long term investment:
Buying and holding stocks etc., for the prices to go up will
only make us paper gains.
We will suffer losses when we are forced to liquidate when the prices go down.
It is the buying when the prices are low and the selling when the prices are up
that can result in real profits.
This is the reason why I rather trade than invest.
There are at least 10 good reasons to Day
Trade for a living:
-
It’s an “equal opportunity” profession.
Your race, education, sex, age, looks, social status and your background
even if you've been convicted of an offence do not matter in trading.
All that matters is that you have some fund for your trading.
-
No bosses to report to and no employees to
hire.
You don’t have to please bosses and you don't have to manage employees
in trading.
This means you don’t have to worry about the payroll, job evaluations,
vacations, sick leaves, and office politics.
Your only “co-worker” is your broker, and if he doesn’t perform, there are
many others willing to do business with you.
-
No office and inventory costs to bear.
You don’t have to pay for or rent expensive office space, and you don’t
have to carry stock.
This means you don’t have to worry about office maintenance costs, product
expiration dates, damaged goods, shipping, handling, insurance, displays and
the promotions of goods.
-
No vendors, no customers, no invoices,
and no accounts receivable.
You won’t have to commute and deal with any face-to-face contact. You don’t need to
negotiate with vendors and you don’t need to satisfy customers.
This means, there is no need for customer support, issuing of invoices,
handling bounced checks, fraudulent credit card charges, returns, or
charge-backs.
-
Minimal time requirement.
If you have a full-time job or run your own business, you'll need to put
in at least 8 hours a day to bring home the bacon for your family.
With day trading, you can trade either part-time or full-time.
You can start trading for as few as one hour per week, or you can go for the
maximum of couple of hours per day.
-
Low capital requirement.
You don’t need a lot of money to get started. Trading is unlike property
investment or running a business, where you are required to service a monthly
mortgage or rental and other cash-draining expenses. In trading, you can start
with as little as $100!
-
Quick returns on your investment
Day trading allows for quick liquidation. You can convert trades for cash
within seconds.
Where else in the world can you make money this fast and comfortably? You can
open and close your trades within minutes. You don’t have to wait to see your
profits. Try this with real estate or physical goods, where you might have to
wait weeks, or even months.
-
Low transaction cost.
You pay less than $10 per transaction in trading.
Compare this to real estate transactions, in which you have to pay several
thousand dollars in closing costs, not to mention a 3-6% commission to your
realtor.
-
It's simple to learn how to make money
with day trading.
You don’t have to go to college for years to learn to trade. And unlike
most professions, you don't need years of experience to become successful in
trading.
I firmly believe that everybody can learn how to become a successful trader
with the right attitude and discipline.
The famous Turtle experiment is a testimony to my
conviction.
-
You don’t need much to get started in
trading.
In fact, there are only a few things that you do need:
a.) A computer and an Internet connection
b.) A broker that provides you with the price feed and charting tools
c.) A properly funded trading account
d.) A good trading strategy
I could go on and on, the advantages and
benefits of day trading but I think you have already got the idea.
The accessibility of the 4 trillion dollars a
day Forex market and the
availability of tools for automated trading allow the ordinary folks like you
and me, to make trading for a living a reality.
Explosion in Forex
Trading Ranges
This Average Trading Range table taken from a
Kathy Lien's article showed that the daily average trading range had doubled
for all of the actively traded currency pairs in 2008, with some currency pairs
even seeing a 200% rise in their average daily range.
The widening trading range of currency pairs provide
excellent opportunities for traders who have the discipline to cut losses short
and letting profits run.
No other businesses except the Forex market can offer a
controlled risk to reward ratio of 1 to 10, a close to even chance of winning
and the affordability of risking as low as 20 pips or US$2 trading a micro lot
to potentially gain 200 pips or US$20 in one good day of trading.
In case you are wondering how big is
the Forex market daily turnover, here it is courtesy of MarketWatch.com:
No other financial instruments come
close to the $5 trillion daily Forex market.
If we can profit from Forex Trading, so can you.
There is never a better time to trade for
a living than NOW!
What is FOREX
