Trading Tip: The Secret Power Of Stock Options

Trading Tip: The Secret Power Of Stock Options

So you've probably heard that options can great big gains for you you can take small amounts of money and create even larger amounts of money that's true but let's talk about the hidden side of options so as I alluded to a lot of people that hear options just think okay trying to make big gains and while that is true you don't need to always be making big gains and there's really other things to options that I think are much much more appealing and just quite frankly should really be the start of the show not the big gains that you can make but these three things so I want to talk about the three characteristics of options that get overlooked the first one is actually some people try to you know make it sound like it's a negative or a bad thing but I think it's perfect for people because it eliminates a very common desire very common a kind of Jedi mind-trick that you try to play on yourself so the first hidden gem of options is that they expire in other words they can turn worthless and a lot of people say oh you got to be careful about that because you know they can expire worthless on you they are depreciated in value at all times very true but I think this is a good thing why be decisive I don't know how many times I've seen it and I've been there to where you take a position in a stock and it doesn't quite go your way and then you think hey yeah yeah I'm going to change my plan I'll buy a little bit more now I'll hang on for a little bit longer and that all of a sudden okay you know I'm going to start to research the fundamentals of this company maybe it's going to be a good investment and then before you know it this very short-term trade has turned into a long-term investment because you've tricked yourself into thinking well you know you don't want to cut you know you don't want to sell for a loss oh yeah yeah trick yourself and it turns into a long-term investment with options that's not the case you know that they expire you know that at some point they're going to become worthless so you need to stick to your plan and if that isn't motivation to have you stick to your plan then I don't know what is so I think it's a great motivation tool in terms of making you plan the trade and truly trade the plan not alter that not have a plan turn into a short-term day trade until you know a three-year hold or another towards you've become a bag holder so we let's just call that what it is so they expire a lot of people that oh that's negative that's bad give me a break it's going to make you be decisive and be disciplined so I think that's a great thing second with the cash account the pattern day trading rule does not apply let me say that again the pattern day trading rule does not apply pattern day trading only applies to margin accounts but if you have a cash account it no longer applies to you I did not know that somebody in the chat room mentioned that to me and I thought wow you know that's that's pretty huge because the pattern day trading that's the the probably the biggest question I get is hey are there any ways around this what can I do to try to work my way around it and a cash account is a step in the right direction and the third huge thing and this is you know quite frankly I think very game-changing is that a lot of times or not a lot of times every time there's something that's called the settlement rule but all the settlement means is this when can I use my money again now with stocks as soon as you make a trade even if you have a cash account when you make a trade you have to wait three days before you can use that money again so just keep the math simple let's say you had a hundred dollars in your account you you make a trade you have to wait three days before you can get access to that hundred dollars again however with options one day this right here is huge so with a cash account and then because options by nature only have a one day settlement period you can essentially make as many trades as you want per week not per day but if you divide up your account in a way and actually if you click on the video or click on the annotation that's on the screen right now I do a video that's a little bit more in depth about these couple things so check that video out but with the one-day settlement you can go at it again and again and get many more trades per week than what you could if you had a cash account and are trying to use stock so very overlooked again this was something that was pointed out to me by a member of the chat room so I can't really take credit for figuring that out but it's it's a huge thing like I said game-changer and I stand by that because the three-day rule is what really you know screws up people with cash accounts and stocks because you know sure the day trader rule doesn't apply to the cash accounts but still even with stocks you have that three days where you have to wait until you can use your money again but with options it's only one day so again options are going to have you be decisive they're going to have you be disciplined with a cash account no pattern day trader rule applies to you and I'm the big one down here they only have the one day settlement period so you can have your money or you can have access to your money right the next day and those three things as far as I'm concerned are very huge so if you haven't considered options hopefully this kind of sways you don't fall into a trap like I was for so long that options are super complicated and intricate they're really not the way I use them in the way I teach them very very simple and I think I do a pretty good job of simplifying it within my course if you're interested in that you can click on the link down in the description box to look into my options trading simplified course it's gotten very good reviews and I think it's a very fair value for everything that you learn and everything that it can open yourself up to with all these very big advantages particularly in the way that you can get many more trades per week compared to trying to do and trade stocks if you have a smaller count actually if you have over 25,000 then this stuff really doesn't pay attention to you but I know a lot of people out there don't have twenty five thousand so this is something that can really benefit you so if you have any questions on this you know leave them in the comments below and I will do my best to answer them in a timely fashion thanks for taking the time to watch remember get out there and trade without emotion you.



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Where to start (and finish) your investment journey.

 Where to start (and finish) your investment journey.


Paul: G'day I'm Paul Clitheroe. I'm chairman of the Australian Governments Financial Literacy Board and I'm also non-executive chairman of the ASX listed company Invest Smart. My best investment, easy, it was backing myself and taking some risk. I started Ipac back in 1983 with my terrific partners and we built that into a very large company now looking after around $17 billion. My worst investment, do we have to speak about this? Myself and some uni buddies were in the pub one night and we decided ski fields were the go. We chipped in three grand each, bought a little house in Mount Beauty underneath the Falls Creek ski fields.

We had to knock it down, build a lodge. Didn't knock it down, didn't do anything and actually managed to lose all of our money over ten years. Brilliant. Ian: Hello. I'm Ian Irvine from the ISX. Joining me today is Paul Clitheroe. Paul is chairman of the Australian Financial Literacy Board as well as being non-executive chairman of ISX listed company Invest Smart.

Invest Smart is an information hub providing information to investors through publications such as the Eureka Report and Intelligent Investor. Today we're speaking with Paul around three ideas. Firstly what should those that are contemplating investing consider before they start? Secondly where is Paul invested at the moment? Then finally where does he see the future going? What themes would drive his investment decisions then? Paul thank you for joining us. Paul: Pleasure. Ian: If I go back to 1983 when I think you first entered the arena of financial services both the practitioner and since then as a financial commentator you will have seen plenty of people start investing.

What are some of the ideas and themes that you have developed over that period of time that may help those that are still standing on the threshold of getting into investments? Paul: In a sense investing is actually really a second order subject. The key issue for me is if people would just take control of their cash flow. Let's face it, people always want to talk to you about investment. Often they've got no money to invest, which I find really quite funny. The real issue is are you controlling your income? Is it an inheritance? Whatever it may be, the first issue for me is being in control of cash flow.

Particularly if you're younger then you've actually got a dollar we can talk about. In a sense, people get very excited about, "Do I buy property or shares?" The reality is both of those assets have been perfectly decent performing assets over longer periods of time. What I've often said and said regularly on my money program on TV is an advantage I have with shares over property or manages funds over property is it's damn difficult with your dollar to buy a property. What I'm really excited about in this modern world is that with the cost of brokerage so low now to buy and sell a share the cost of entry fees into so many managed funds is basically zero.

With many managed funds some of the index funds are charging about 4/100ths of 1% per . All of a sudden we're not going to get ripped off on small amounts of money so my advice is number one, get your money under control. Probably with small amounts of money I'm still arguing that shares or a managed fund, for me, are a great starting point. Ian: Okay so one of the concepts when you have a small amount of money is still achieving diversification? Paul: No. Ian: It's not? Paul: No. Ian: Tell me why. Paul: Well the issue here in a sense is that risk is your friend if you've got time.

In a sense risk is no longer my friend. I'm 60 now so my portfolio is very different, when you mentioned back in 1983 when I started Ipack. Basically what I did then is I did what any young person should have done in my opinion, and that is I concentrated my risk. Diversification is fantastic for me. Diversification lowers my risk. One thing goes down, something else goes up. In these volatile times diversification is fabulous for a 60 year old. When I was a young fellow in the 80s with limited money diversification is going to get me a modest but sensible return. I took every nickel I had, which by the way was about $20,000.

Ian: Not bad in those days. Paul: I had a job for a couple of years and I'd followed rule number one. Rule number one if you don't put any money aside you have no investments to make. Ian: Back to cash flow. Paul: Back to cash flow. I'd done that and I'd put a bit of money aside and with my four partners I started Ipac. I had 100% of my money in one company and I basically had all of my wealth in that business for some 25 years until we sold it. When you're young, ironically, concentrated risk is probably not a bad thing. Ian: Through knowledge and education of yourself back your view? Paul: Back your view I think but also in a sense that if a youngster, now lets go back to my age back then.

Go to your early 30s, late 20s or even younger. In a sense if you like, and I really encourage parents and grandparents to do this with children. The only thing I don't like about a managed fund or ETF, in a sense is the decisions are taken for you. In terms of managing risk, I really encourage parents or grandparent if they're buying a share for a youngster if you notice the youngster is having a can of Coke or something, which I'm not too sure about from a health view point we'll put that aside. Great company. Basically buy the youngster some shares in Coke. If the youngsters got a bank account with Westpac, why not buy the youngster a few shares in Westpac. Give them a sense of ownership. For me in a sense what we're doing here is if we put the youngsters thousand dollars into, let's make it up, let's go with a bank, go with Westpac.

We pop a thousand dollars into Westpac and we do portfolio analysis around a thousand dollars in Westpac and we start going, "Oh my goodness, you've got ..." It's a thousand dollars. Ian: Got you. Your view on investing has changed from when you first started back in the 80s to now. What are you invested in now? How have you evolved from that, back your idea, put into the company which you're an owner, now you're outside of that to some extend. What are you invested in? Paul: I'm now typical of my type. Part of the baby boomer generation, there's millions of us. The sort of people who are listening to this today actually. They're probably buying and selling a few shares. Pretty obviously I think we all start out with highly undiversified portfolios. Very quickly I started up with just about everything in the company. After two years I started to get a wage from the company. Then we were able to gear up and buy a property. Now I've got a wonderful portfolio. 100% of my company and the rest in a property pretty much 100% owned by the bank. I'm not going to do that today, so we need to be really careful here.

How I invest my money today is poor guidance for many Australians. My age and risk profile, where I am now is I am fully diversified across Australian shares, international shares, and I do use EFTs particularly internationally and managed fund. I don't think I could pick shares in Poland. That's not my thing. I use people to do that for me which all of us can access for next to nothing these days. A range of great managers for stock exchange can tell you about. I own a home and I don't have a problem with that, I own an investment property. Again mainly through listed companies I own parts of commercial buildings and retail and so on. The GPTs the Westfields. Then with the bottom part of my portfolio once we've got the big stuff out the way I probably hold more cash than most people would think sensible.

Probably about 10% of my portfolio. Why do I do that? My wife will kill me if I don't and there's a very important point about that. Ian: That's still even more liquid than some of the stocks listed on the ISX. Is that what it's about? Is it giving you forward cover for living, lifestyle, leisure? Paul: It's more of a matter, it's because I don't know. Basically look at my age, it's all very well to bang on about creating wealth. I am not creating wealth. I am preserving wealth. Cash is an awful asset.

I'm earning 2.6% on it. I pay tax on it. I know full well over the next 20 years that it's going to be the worst part of my portfolio categorically. It is so safe and it provides sleep at night. I'm not kidding about myself and my wife. We've been married now for 34 years and it's a critical relationship to me. Personally I'd whack 100% in shares. My wife would kill me literally. Also it doesn't' make a lot of sense so why do I diversify the way I'm doing is because I'm not trying to get high returns. I've worked bloody hard to get what I've got, I'm trying to protect it. Ian: This is sleep at night stuff. This is keep the family happy. Paul: It is sleep at night but with an override. The one thing I do fret about with the Australian population and just about any member particularly of a first world country. We just haven't got the hang of how much longer we're living. We just haven't got the hang of the fact that for over 160 years now on average we're living three months a year longer every year we survive.

Statistically, I may drop dead tomorrow, but statistically there's every chance either Vicki or myself will see 30 odd years. I look at my pool of money, never in human history have millions of people had to try and survive off a pool of money we create during our lifetime. I'm really fretful about my own money and I'm fretful about other people's money because we just don't seem to realize that in 1908 when the age pension started our forebearers chose a male retirement age of 65, not because we died at 65 in 1908.

We males died at 54. Now we're talking about living into our 80s and 90s. To me in a sense the reason for example, I wouldn't whack all my money in cash which is the best sleep at night test, if we survive 30 years I'm sure to be broke. In a sense I'm forced to take risk. I must take risk if I'm going to live longer. Ian: On that point we've heard how you started, where you are currently now, we're now talking about the future and who would have thought living longer would have been a bad thing. How are you preparing for that now? Is it still going to be the same for you? Holding that 10% cash and the other assets you hold them the same way? Will you vary that a little just to take that into consideration? Paul: Yeah, look I think the one place we can add value is I know I can't pick market cycles.

I can pick the top of the market ... what nonsense is that? I am a believer in themes. For example, I'm a really strong believer in common sense and I've got a chair in economics out at Macquarie Uni so I've got a little bit of knowledge as well as common sense. The issue for me is, and I remember being taught this as a youngster at school, is that all the economy is the net actions of individuals. In other words what you do and I do we add that together that's our economy right? I'm fascinated that if I live to my life expectancy, Australia is going to be close to 35 million people.

Think about what does that mean. Sydney is going to be 8 million and so is Melbourne. What does that mean to me? Everyone's telling me the property market's probably looking a bit overprices at the moment, it may fall. I go, "Hang on. Where are these extra 11 odd million people going to live? In a cave?" I figure that if I own well located property in my portfolio I don't care if it goes down next year or the year after. I think it's going to get rented by the way because the population's growing so my cash flow's good. I think with a life expectancy view it's a good asset. People are bagging banks at the moment but I reckon banks are going to keep making money with a growing population. People are bagging at the moment. I reckon we're going to keep eating. Ian: Paul thank you for joining us today. We sort of finished where we started. You started with cash flow as a way to start investing and we're finished up on it right now for those that are living baby boomers.

I'm including myself there, living longer. We need to manage our cash flow at the end as well. The way we invest needs to sit behind that so thank you for your time today. Appreciate your help. Paul: Pleasure. .



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Online Stock Trading terminologies made easy.

Online Stock Trading terminologies made easy.

Capital markets may seem technical especially if you're new to the markets sometimes it's just a few minorities which make it could be a complex but trust me despite easy want to be going to be careful techniques huddle importer of and in this video i'm speaking from some of these film analogies that you would also be compelled to on icy icy edited dot com this force look at those often lose weight reading in the treaty segment why c_a_c_ a big trading account the posting but you do before you place some orders to take home watched the stock is putting out that spent a couple of minutes understanding ports you get the court did get port links here are on the bios and beach he's a light ports from within the city and the issue forced look at the best vijith and baseball for a place the best big is apt to get into a sailor if you're looking to sell estoppel emphasis the best place you can get at this point decline isn't peace two thousand seven hundred and twenty eight point nine zero on and his feet if you're a buy out the best offer price of the liberal wing of life and right now it does two thousand seven hundred twenty eight point nine five on nec you can also take the best fight there's an awful is to look at the stack of buyers and sellers avilable the disproves won't be the rest of the information to be able to get ported is also quite easy to understand you get the last treated christ the date you was that is the last feeding these closing price the price at which the stroke wind intraday high angle the changes is with respect to the last reviewed thrice burned in last week it was the same invoice discrete implicit as wilson change the wooden displays the problem with stocks traded in the exchange cd now remember that the deal would be which was the activity in the stalled and would please me more liquidity and database companies there's also manifests in the british and office space first off which is really active in the third the difference between trade and paul clark is much more the gate portland or shawls other information from make the sensex committee values as well as fifty two b client who want to stop if you want to use the bite sailing skilled detecting goodwin order companies in order i think that the courts let us know though i think chintu or defects immersive what they see the film market order menu please market order for the security such as folks usage in new delhi exchange that you wish to by paul said at the best available price in the market of the dying the exchange matches it but special market orbit one the sense that let me by a one ship of emphasis if i choose market order the order is likely to be matched to a best bid price which one can take on the board sergio if you want to please abiola duplin process included executed at the base price will be able to cut back institute however please note that in the market ordered the exact place completely normal oppositely has been executed a market order please tune in to see the tickets executed forty or partially executed becomes the norm at fry's last street space in case of the issue for the borders book from the executed order gets canceled by the exchange incase applaud executioner market order order for the remaining quantity becomes in the middle of the at the last executed place market orders are useful if you want to executed three immediately if you wish to create a specified christ is at least a limit order it is now see hold the record as well a limit on what the allows you to specify the northstar highest price at which you would send or by a specified number of shares actually execution of order can be at a price more favorably than the price specified for example for example let's say i want to buy producers of x_y_z_ company treating at seven hundred and fifty two point three five and want to which is wouldn t the phrase is above the seven hundred and fifty all i need to do was to portland and order forty seven hundred and fifty mytrees been when we get executed had to be seven hundred and fifty ordeal delivered over gives you also can be in the bill does prices that is no certainty if he ordered her to get executed immediately or in fact the order executive board but then you can always modify alamogordo with a new limit price they cancelled it is another interesting order type underscored by the name i_d_ bc mikey d_ sees a new water tank underneath it pretty cash segment mikey d_ c_ or the provides the unique benefits of keeping your limit order would win a quick trip began in two days this increases the chances of achieving your desired price for the tree it also saves you from the hassle of using the same order wooden would again each state the stalled reaches the desired level let's agencies seventy feeding etc these two thousand seven hundred and seventh and i want to buy i think what these if the price points rupees two thousand seven hundred if a peace in the mid ordered to be and it doesn't get preferred whitewater verdict on sand at the end of the trading sessions i would then need to place the fresh ordered the mixtape but my gpc i can place the order of once and to keep the order was open to put the pieces i select my d_d_c_ option and at least disorder at the limit price offer peace two thousand seven hundred mikey d_ c_ can also be used dirtiest ascending order limit price which is your target price to book profits like market order in the mid order emitted or cancel is another type of order image it or cancel order or i was the order as it is quote allows you to buy or sell a security as soon as the orders attorneys into the system fitting rich your orders get answered the phone system wasa much as possible for the order but i'm much portion of the order dispenses immediately let us know look at stop loss quarterback the stop loss or debate enable to completion order tickets activities had been the marketplace of the security leeches across is officially price specified by you in the formal stop loss bigger place menus basic legacy vp inanimate order the order becomes condition on the market price of the security crossing the specified ccp it is used as a tool in limit the maximum lost one of positions the auto demeans passive meaning not eligible for the execution at the convention is satisfied was the last ticket prices on personal computers or subclause is the estate defeat the order becomes active and it won't be his megan norman limit order isn't that interesting for example i have what the position is that these two thousand you conduct an expectation that the prices rights however in the event the price of the stockport i would like to minimize my losses by placing an s_ and p_ p_ order put this pirated copy paste the limits of the border specified exit vp of rupees two thousand seven times and fifteen an endemic rise above these two thousand seven hundred intent was the last treated place but just or courses will be seven hundred and fifteen order gets converted into a limits and order at the peace two thousand seven hundred instead let us not going to be pretty exciting that it could be a safety you confused by all of us for a free specified among order please specify quantity since talks off your choice at regular intervals over the created jewish for example you can please and keep it yes i'd be for a period of c_-one here invest five thousand beaumont in shares of the it yet whatever the price of the eighty eight shares oc at that time all you can choose to buy twenty five shares of beauty and every month with integrity and cite the doubling the benefits of investing three criticized the it had some discipline investments it heads and spitting in admitting the also which is thereby reducing the risk cotija moves that this will find the market and ford it could be of service in a waterbed market and finally it accumulates vets by investing small sums particularly what what if you are a public reader came back to you since you have margin is a facility offered by ice the ice yesterday and gives you individual on your feet england factors you can't beat by paulson positions agreed at a moment's and what you could have taken in cash segment however this profile offered transaction goes up here's how it works margin allows you to big by also position install cs the debate should alts reading of the position within the same sentiments i can in the case of by transaction the facility also allows you to continue with the wilbert margin permissions beyond the big if you've been such a position you have to be delivery by making the necessary funds settlement orders you always have the option to spread out the position do take a look at our video on the margin fecal understand the bond auction site bitter cold sweat off most beaumont invite transactions broke a sweat off toward and plants quite often under the square off more than or margin by positions will be identified as introduced and will be the council all squared off respectively by icici during the end of the segment process for the pattern settlement date unlike broke a score of more deploy modify positions that are marked blank squared off more will not be council all squared off by icic sitting in the statement also support the concept of mint in other words the would list of squared off such positions before the stupidity bank people still being teased lies on you dystrophy canceled or square off ice act with squared off on a basic produces many end up segment process let's get when you go to the meat implications of this facility forced you can continue with the bite my conclusion deepest bs instead all sweating all on the speeding b second you can make them more softly market movements once again please fresh by orders anytime during the day play kabuki thirty p_m_ proud of you the truth of the delivery of the existing by a margin solutions by paying for the quiet finds by people of today's and lost but not the least what positions underpinning for delivery would be considered as cash transactions and accordingly the charges would be levied digital model data you cannot make the most of it and if you're not he was a lot of people who study the margin forgot ourselves to focus toward billboard disclosed for ticket generally venue peace and order the order quantities of the schools in fourth of the market an order of the disclosed what the conditions allows the treating them both that is i think in your case disclosed would be a part of the order quantity to the market for example of an order of people invented it disclosed wanted the condition of two hundred but more than it is displeased with the market at the bank after this is treated another two hundred and automatically get reviews pencil the full order is executed in in this e the d q or disclose what could be not because they've been posted on your the quantity and at the same time should not be veto that point equal to the order quantity india c the deacon should not be less than he did that both sides of the order quantity or one thousand which gave us know what and at the same time should not be great at that point the would put the order quantity does this facility allows it to disclose when your portion of the order quantity for the market for the convenience of our customers might be seen orders if you have provided to the facility definitely want to do if she has to be bought from among unimpeded with sick and the market to arrive at the number of shares to be bought unique to people and amputating amenable on cash by and modern bindings of even under the critique that let's not talk about the man on the cheese vichar often used by investing in mutual funds to lacey lacey i detect reading about that the systematic investment plan on decided facility in response to esetio allows you to invest applicable amount for the poor to get in their work in the mutual fund scheme off your choice it is a type of plant all ford by mutual funds once you sent an s_ i_ t_ e_ r_ not required to track the investment dates or the defined beat the amount indicated by you over the automatically debited from your link icy icy a bank account and will be invested it in the scheme selected by you once you said in a safety are not required to guide the investigates ads like these have been or the best investment strategies to beat long-term equity investment gains there are many benefits of investing through mutual fund and safety s_i_v_ allows you to invest app-v specified among in a scheme at idiotic interludes so been a bull market was down index asset value of the scheme possible without and you end up buying more units on the scheme if the market moves off net asset value of the scheming visas and you're going to get the lessons of the scheme hence the average cost for all four chairs and walks out lesson photo by investing in attitude is one of monthly safety is you can accumulate that that would be to define without straining your savings substantially what's about investing a small amount regularly into the schemes you can all-white coleman editor of investing lots on simple markets that's one of something bad about that i'd like to mention one very important feature of mutual fund feeding on isolated to date dot com transmitted consulate in is a process where you can video offline four u order for your help with some of the broker but i see i see a verdict costly agreements license yet detected on transmitted under mutual fund section select the mutual fund name from the drop-down click on please the odor into the phone number and pick one subject that's it and costly agreements license yet detected on confident under mutual fund section select the mutual fund name from the drop-down click on police the odor into the fold number and pick on something you need to send a few blocks means for transmitting license yet securities the password and it was cleared up which can be downloaded from i_c_i_ citicorp on after placing the bondsmen distressed is required similarly you need to say self-interested find copies with each johnson and request thirty the transaction statement from bmc further before use a quiet and lastly you need to send attacks in check from savings bank which is linked to trading account after completion of profited process all schemes available before your trip reflect on the pavement unit for debate i hope one study the terminology would make your t_v_ experience of icy icy edited still more intuitive just in case you don't do any difficulty you know be adjusted quarterly please use the capable of facility what you mean last at the email i demand to be on the screen happy investing.



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Stock Market Investing Tips : Online Stock Trading Advice

 Stock Market Investing Tips : Online Stock Trading Advice

Hello. My name's Mark Griffith, and this is a brief introduction to online stock trading. There are a large number of companies whose shares you can buy and sell online, and there are first a few things you're going to have to find out about obtaining a broker, or otherwise trading the shares from your computer. There are plenty of brokers, like E-Trade, Charles Schwab, Bank of America, that perform this service.

And when you are shopping around, you want to check out the different brokers and see what kind of deal they offer you. There are a number of things to look for. Check what the trade is....what the cost of trading is. Generally, there's a charge per lot, and generally there's a charge per trade. You need to look out for trades charges and for lot charges. So, one lot is one share. Three lots is three shares. And typically, if you buy a group of shares, for example, say you buy ten at once, you will be charged ten times for the lot charge, and once for the trade charge. So, look at the different brokers. Some of them have very low lot charges, or none at all. Some of them have low trade charges or none at all. Some demand that you buy or sell a minimum number of shares at a time, or they demand that you do a trade of a certain size. So look at the restrictions, look at the ways in which you're spending more money, distinguished between these different companies. And then, of course, just as with any investment, you should consider why you want to invest.

What purposes you have, long term, short term. Look at the profiles of the different companies. Do you want to day trade, which means closing your position each night. Do you want to have positions that last one or two weeks, or are you very much looking to buy and hold for long term investments. All this is just the same as any other kind of investing. Another thing to look for when you're judging online trading, is what kind of platform the broker has. Platform is usually a screen that opens up, or window that opens up on your computer screen, and some are harder to use than others. And you need to check some out. Some will be confusing, some will be more intuitive, it's a good idea as well if they have a good charting package so that you can see where the prices are going and easily understand things.

Another thing to do before you get into this actively is to paper trade, which means do some imaginary trades, but do them rigorously. So, if you think, "Oh, I would've bought then," write down then what you would've bought, how many, and actually watch during the day. Did you lose imaginary money, or did you make imaginary money? If you can be self-disciplined, and keep track of all that, then you should be able to find that you can trade and invest online successfully. So be careful, do your research. Good luck. .





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Day Trading Advice!

 Day Trading Advice!

So you're learning how to day trade or you've been dating for a while and you've had mixed results I have one tip one idea that you need to follow that will help change your day trading consistency today just follow this one idea so stay tuned with video so the idea that you need to follow the idea that you should be brainwashing yourself with the this one idea is the idea of aiming small why would I want to aim small what's the point of aiming small well the idea is to aim small take profit be consistent cut your losses to the point that you're trading a small account I have my daily goal at $100 and you might think well that's nothing I don't make a hundred or don't make a thousand dollars well the idea is that if I can make a hundred dollars every single day for a month for two months there's no reason that I can't increase my share size to two thousand three thousand shares the next couple months and make three hundred four hundred dollars compared to making a hundred dollars with only increasing my share sites so all I need to do is aim small become consistent follow the rules and learn learn how to be a consistently profitable day trader making only a hundred dollars a day and then from that point I'm going to double my share size once I double my share size I'll make two hundred three hundred dollars a day and you see the idea here if I can make a hundred dollars every single day there's no reason that I can't make a thousand dollars a day if I increase my share size obviously the emotion will also increase as I increase my share size but I will be able to execute I will follow the rules that are I will understand day trading better if I'm able to be consistently profitable every single day for a month only making $100 a day that's still an amazing month I'm going to beat 90% of day traders who are going to lose more than $100 a day every single day for a month and I'm going to be able to progress I'm going to be able to be positive about my day trading experience I'm going to learn and I'm going to be able to become a profitable day trader after aiming small aim small that's all you do number one rule anything small trade with a smaller size take profit fast don't be scared to take profit before the profit target if I get into a trade of two dollars and my goal is to hit 210 220 the stock doesn't look safe it looks want to drop take profit take profit make $50 and then move on look to the next trade look for the next opportunity don't marry a trade just aim small if you're just starting out you're just learning to day trade just try to break even try to break even for one month if you can break even for one month all you need to do is increase your Sarah size again and now you're making 100 hours a day and you'll become a profitable day trader much faster than the guy who's buying every chair that you can get who's making 100 trades a day and going crazy he might have one crazy day where he's gonna make a ton of money in the next day he doesn't lose a bunch of money it's gonna be a very very rough ride is a good possibility he's gonna lose in the long run and he's going to get burnt out in time he would not be able to keep it up he will lose he'll start losing bigger and bigger the emotions will start to rise he'll start losing and losing and losing to the point that his whole account blows up and there's nothing less and he's probably having to redeposit money into his account or he's trying to figure out his next game plan maybe he gets over day trading so really I cannot stress enough the fact of this aiming small when you first start out just aim to become a profitable day trader in the sense that you're breaking even break even first make $100 a day once you start breaking even then make a hundred hours a day make $100 a day for a month straight if you can make a hundred dollars every single day for a month straight you're beating probably 90% of the day traders who are losing $100 or more a day so really it's amazing that you can do that that's my goal right now this month I've been talking about I've been trading small in the sense that a stock like MV rx today I bought $2 shares of $2 it had some trouble I took profit I could have made $400 in this trade you can see it got the 221 at one point so MB rx was a good trade but I took profit it wasn't looking safe at the time it ended up going higher later on the day and that was my move that I was looking for so I was in the right place at the wrong time and I had the possibility of making $40 here on this trade but instead I only made $100 today and I'm happy with that I made $119 trading with only twenty seven hundred dollars in my account and playing it safe taking profit and not stressing I have a great day I've been doing other things and it's fine you know I made in money I walked away and I came back later and looking at some of the stocks nothing looks we that enticing so now I'm working on some videos not kind of what I do is you got to figure out a way that'll get you off the market so once you get that goal for the day just walk away figure out something else that you can do for the day and move on and come back the next day be ready for the next morning for the next opportunities that are there aiming small taking profit cutting your losses always cut your loss that's kind of the goal when you go into a trade know exactly when you want to take profit before you go into the trade so if I look at this and I'm like I'm going to get in at $2 for a possible move to 210 the stock goes to 210 I'm taking profit no matter what I'm taking profit maybe it goes higher but I'm going to take profit I'm not going to risk it if it goes to 210 it starts to come down take profit I'm not going to sit here like well I'm going to wait for it to go above 210 wait for I go to 250 because of 220 on the way for 250 no just take profit become a consistently profitable day trader by aiming small at the start don't try to get rich overnight just focus on finding the best set up some of the best day traders in the world make the least amount of trades they might only make one or two trades a day if that some people will sit here and watch charts all day long and not make one trade but at the end of the month are up 200 300 percent on the month because they waited for the best opportunities and they have a good foundation that's really the focus here when you're first starting out to build a good foundation as a day trader learning the rules and embedding those rules in your brain and getting the emotion keeping the emotion out of trading and aiming small when you're aiming small at the beginning you'll be happier with small profits and then instead of losing a lot of money becoming depressed building of emotion and revenge trading or just kind of blowing up your account in the long run so really just focus on aiming small taking profit when you have it and walking away once you get your profit goal for the day I made two trades today I hit my goal I'm done I walked away so we'll do the same thing tomorrow and the day after that the day after that and we'll see how it goes so hopefully you guys enjoyed this video if you did please subscribe the channel if you haven't already like this video and leave a comment if you have any questions I will talk to you guys later on you.




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