Month: October 2017

Trading has the allure of getting rich quick and draws many to the flame with false promises mainly because of mis information, false advertising and the playing on emotion. It is important to determine what your style of trading needs to be that fits with your lifestyle, goals, and emotional profile. Here are the main styles of trading and the qualities of each.

Short Term (Day Trading)

• In trade duration usually no longer than minutes to hours, not holding any positions over night
• Focusing on short term events or catalysts that require immediate trade management (entry or exit)
• Requires complete focus during the trading period on trade monitoring and trade orders and is not suitable for those that have 8-5 employment or can’t focus on that during the trading day hours.
• Requires Higher tolerance for stress

Medium Term (Swing Trading)

• Trades last days to weeks and can be entered by trade orders that allow for transacting while you aren’t able to actively log in and do the trades in real time.
• Catalysts are usually some kind of technical indicator that signals entry into a price cycle swing – either buy at low point and target selling at a higher cycle point for a stock/ETF rising, or selling at a high point and buying back at a later point at a lower price for a down trending stock or ETF.
• This is what style of trading our TQQQ Swing Trading System is geared for. See more information about it Here

Long (Investing)

• Trades last from months to years and focus on a longer term hypothesis about company or industry or economic impact to to the stock or ETF.
• Generally very low stress and doesn’t require daily monitoring of positions and trade orders

The cornerstone to any successful trading system is managing Risk. Simply put Risk is the amount that you are willing to lose on any given trade. It doesn’t matter what promises any one makes to you about how successful their trades are, ultimately you want to be able to sleep at night and know what the worst case scenario is. Too many trading systems promise returns that are unrealistic given the risk you have to take. Take Credit spreads for example. All you hear is “earn 10% per month and there is an 80% probability” of success. Well guess what – if you lose 100% of your money 20% of the time, you’ll never catch up to the 10% that you win 80% of the time. Do the math. Yes, folks will talk about “adjustments” to fix losing trades, but adjustments just lock in a certain amount of loss, and strive to ultimately minimize losses on a trade, not amplify gains. At Stocktradingwithadayjob.com we focus on taking high probability trades which are straight forward to implement and manage – all outside of the normal trading day. Come join us and we’ll have you sleeping better at night!

How much to invest with the program?

So, this is totally up to you. Since the program is more aggressive we would suggest that you allocate a specific amount initally to invest, and then just re-invest the amount of your gains and losses into each new trade alert. Alternatively some might readjust their overall % of available funds on a periodic basis – i.e. twice a year make sure you are maintaining a consistent % of your portfolio. For example if you allocated 10% initially to the program, and your account a year later represents 20% of your total account value, you might want to re-adjust to only allocate 10% to the program. Note: the results shown on our program show every $ reinvested so you can see the potential for incredible returns but they also come with some significant drawdowns along the way. This is something that you will need to manage on your own.