I was just sitting today in my Home Office and saw the news that Elon Musk fires a Brilliant young Engineer for being truthful about Twitter. And that is the main reason that motivated me to write this article and guide people to start making money by using only their Mobile Phones (Disclaimer - Must Read) So let us dig together. And see the result.
In my life, I have had many career switches. And the interaction with the concerned Boss or Manager was sometimes Good and most of the time bad due to a variety of factors. Anyway, a couple of years back one day I decided not to work for anyone and started exploring ways to generate money.
So many business ideas floated in my mind like opening a Clothes Retail outlet or a Restaurant. So after getting an idea from a friend, I opened a Baby clothes Business in Bangkok. The returns were good for a couple of years and saved some money for the rainy season.
Then came COVID like a Black rain and affected Business Activity all across the board. Instead of buying products and services, people started saving money. Sales dramatically went down. And a lot of businesses got wiped out in a matter of weeks. People lost their jobs and income resources.
I managed to sort out a temporary solution for my Baby Clothes Shop by using savings and paying for Shop rentals on time. But it did not work out too well and depleted my savings quickly. And eventually closed the Shop and later on switched to Online Business Model.
During this whole time during COVID, I started learning "How to Trade Stocks, Commodities, Forex and Cryptocurrency". So after reading some books and getting some help from Trading Communities, I opened a Trading Account and managed to make a decent amount.
Due to Discipline, Consistency in my Trading Routine and using 02 Simple Trading Strategies, I have managed to make decent money on a daily basis. I will be sharing my prospective trade ideas daily while using my 02 Strategies.
So let's get started
Table of Contents(toc)
What is Trading?
Trading is Buying or Selling Stock, Commodity, Currency or Crypto Currency for a shorter duration of time and by profiting from its movement in the expected direction. Its success is dependent on the Trader's overall performance.
The category in which we Trade is "Retail Trader". Our method is totally dependent on predicting price movement based on the past price action of a particular Financial Instrument you are trading. We Retail Traders don't have the ability to move markets as compared to Central Banks, Hedge Funds or large Corporations etc.
What are the types of Trading?
There are many types of Trading methods however that I will focus on 2 types: -
Swing Trading
It is the type of Trading where Traders either hold their BUY or SELL positions for a couple of Days or Weeks in order to maximize their profits. This is the easiest to predict and manage the trades. In Swing trading, you just ride a Swing from Top to Bottom or Bottom to Top. You have to predict the developing stage of the upcoming SWING Pattern or Trade Setup.
Day Trading
Day Trading is a type of Trading method in which a Trader buys or sells securities and makes a profit on the same day. Most of the time Traders utilize Session Opening Movement and get out before the Trading session closes. It depends on what Trading Session a Trader chooses like Asian, London or NewYork Open
How do Professionals make money by Trading?
Professionals sitting in Bank or Hedge Funds who are capable of moving markets have a lot of information and tools available like Advance Trading Platforms and Charting Software to predict the price movement of any financial instrument and place trades automatically with the help of Algorithms. However Retail Traders having less access to such tools can still make money by correctly predicting price movement. Both are professionals, the only difference is the sum of the amount you are trading.
Now here's the most important part, professionals only follow a process or a method of correctly analyzing a market structure, predicting price movement and timings. They focus on the implementation of planned Trade in a correct manner. Yes. They can be wrong. But losing some trades won't deter their focus
What are Stocks, Forex, Commodities and Cryptocurrencies?
Stocks also known as Equity, represent a fraction of ownership of a Company you have bought. e.g., Tesla has floated Public shares on the exchange equivalent to 30% value of its assets in an announcement. And people know that tesla shares are always attractive after a dip. So they make an account with any broker and buy at a particular price. and when the market price goes in their favor, they will make money.
Forex Trading is Buying or Selling any Currency at a Price and making a profit once it reaches desired level. The advantage of Forex Trading is its liquidy and can be traded 24/7. And along with that, you have got Major and Minor Pairs.
Commodities Buying and Selling have become frequent among Retail Traders. Types of Commodities are Oil, Gold, Cotton or Silver Futures etc. Most of the time the Price in Commodities movement is based on Supply and Demand.
Cryptos are digital currencies in which transactions are verified and records maintained by a decentralized system. The first crypto BITCOIN was invented in 2009, and then later years flooded the markets with a variety of Cryptocurrencies due to investors' interest leading to the start of the biggest crypto buying trend. Made them a ton of money. However whenever things get ballooned, then there are likely chances of bursting. And that's why cryptocurrency now in 2022 is currently in a Major downtrend.
Is Trading Right for you?
It is a million-dollar question. Successful trading requires a Focused Mindset, Discipline and Positive Aptitude. Anybody can attain these 03 qualities by consistently following rules in daily life.
Let me give you my example. Couple of years back a friend of mine told me to Buy Gold as its trend is up and retain the position for some time till the market turns around. Logically he was writing as Gold was trending up. I used some of my savings and bought Gold. But after a couple of days, Gold started going down. And I sold all of my Gold position with very little profit and after a few days, Gold skyrocketed. It was indeed a hasty decision as I was mentally not prepared to take a loss.
Now the question still stands. Is Trading Right for you? If you are interested then you have to focus on the process, not the money itself. Yes. That Right. No matter what once you have made a plan, chosen a strategy and opened a position then let the process complete.
Choose Trading as a Profession Full or a Part-Time?
A positive mindset is required if you planned to make Trading Profession Full or Part-Time. Full-Time Trading requires focused attention as traders execute both Day and Swing Trading Strategies. In the case of Part-time early morning, you just require 30 minutes of analysis before leaving for your main job as you will only Trend Trade. You can place Limit or Stop orders to automate your Trading.
What are the risks of Trading Online?
Trading carries a lot of risk for Traders who do not plan and use a time-tested Trading Strategy. Once you have opened an account you are using your real money. You must practice your Trading strategy many times in a Demo Account to become confident. And you can also refine your strategy with certain rules of engagement.
How can you be successful in Trading?
You might have heard to be successful in Trading you need a minimum of 10000 hours of learning, practice and a consistent routine to achieve your Goals and to become a successful Trader. You can achieve your Goals much earlier if you are systematic and disciplined in every part of your Trading journey. I have seen Traders within 03 months have started making money consistently and some of them even took years to attain their objectives.
Conclusion
Trading Financial Markets now these days has become much easier because of a lot of information online and Traders can practice their strategies on the online Trading Simulator. Now it's up to you to use this valuable information and choose the right path or way to become a successful Trading Expert. And it's never too late. You can manage your risk thus increasing your chances of winning.
