Alfath Online

Archive for September, 2011

Online stock trading is the simplest and easiest method of buying and selling shares, and it can be done entirely from the comfort of your own home or office. One of the main reasons that online stock trading has become so popular is because investors are not required to pay hefty commission fees to brokers, which would take away from their net return. Most brokers offer a so-called “flat fee,” which means that you pay a very low cost (around $10) for buying and selling any stock, regardless of the amount of shares you are trading.

Online stock trading is enabling millions of Americans to make money in the stock market – even with minimal investments. Big companies like Charles Schwab, e-Trade, TD Waterhouse, and Ameritrade all cater to these kinds of traders with low commissions and easy-to-use trading platforms. As a result, online trading is becoming a very popular alternative to more traditional methods of stock investing. Luckily for everyone interested in the industry, online stock trading is a pretty simple thing to get into.

However, before you dive in headfirst, you need to understand that stock trading is a business – it’s done to make money – and it’s definitely not a get rich quick scheme. If managed properly, stock trading is a legitimate means of attaining financial freedom. Always remember that day trading and investing in stocks involves high risks, and losing a lot of money IS a possibility. In other words, stock trading is not for the inexperienced, or the na

Deciding to trade full time for a living is making the decision to open your own business. Here are 7 keys to making it successful:

1. Do your homework. The stock market is an arena of abundance, make sure you join the arena with a written plan.

2. Set aside at least 3-6 months to learn how to first not lose money, then to learn how to make money. All the trading books and seminars in the world are not nearly as valuable as “screen time.”

3. You must be properly capitalized. The money you fund your trading account with must be RISK capital. If it is money you will need in two months to pay your rent, you will have a hard time trading to win, you will be trading scared.

4. Know what type of market conditions you are going to trade. Are you going to be a trend follower or a scalper? Trend following takes patience and can have significant draw downs, scalping requires making many trades and usually has a 1-1 risk reward ratio. Profits and losses will be small.

5. Truly understand you are trading to make money, you are not trading to be correct. Most new traders think you need to know what’s going to happen next to make money, you don’t. You need discipline to follow your plan; nobody knows what is going to happen next. The sooner you can get over the desire to “be right” on your trades the sooner you will turn the corner to profitability.

6. Learn how to keep your focus positive. Trading can be a very trying journey, soak in good motivational books. They are as important as any trading book you will every buy.

7. Learn from your mistakes. You MUST keep a journal. It is your personal history of what you do well and what you need to work on. You are paying for those lessons in the form of trading losses, take the lessons home.

If you need help working on your trading plan send us an email with your current trading plan and we will be more than happy to make some suggestions! info@keystonetradinggroup.com

http://keystonetradinggroup.com/trading.htm