Many new traders get pulled into the trading world, thinking that it will make them an overnight millionaire or put them at the top of the food chain. Hollywood may portray the trader as someone who makes money without trying, but this couldn0t be further from reality.
Trading for a Living
Whether investing, swing trading or Day Trading, you must commit considerable hours to make a living. Day Trading involves hours at the trading station, swing trading requires a bit more work, and investing is as good for as much as you0re willing to dedicate. It is important to realize that although you might be a world-class trader, you0re not going to avoid work. Trading is as much as a job as any other position, but the biggest difference is that you are paid based on your returns. How good you may be at investing will directly correlate to how much you make. This is one of the few businesses that will pay you what you0re worth.
Professional Trading
Trading likely didn0t come easy to professional traders, and it won0t come easy to you. Very few professional traders were profitable from day one; it0s almost impossible to […]
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When the market hits a bottom, it0s time to start the bargain hunting. The upside from a bottomed market is huge, and then profits can be further compounded into a short position. Bottoms can be hard to spot, but with some experience, bottom hunting can be profitable and extremely rewarding. Even with the best uptrend, you0re unlikely to time a bottom perfectly. Sometimes you0ll see a bottom, enter a trade only for the security to downtrend briefly and retest a bottom. Bottoming securities are unlikely to be perfect, so you0ll have to have plenty of patience. Profitable traders do very well in market bottoms, as they provide some of the best risk to reward ratios.
What to Look For
First, you need to look for a measured downtrend. A downtrend that follows some guide for its dropping price will be more likely to respond to an uptrend or support lines that make up a bottom. When Stocks hit the bottom, they rarely do so due to unforeseen events. This is where long term trendlines and indicators really pay off.
Professional traders usually start calling a bottom after a sideways trend, when the stock remains […]
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