Category: Blog Posts

On the front of the site we have a published general market direction indicator. This can be used as a guide for general longer term trading strategies. For example a suggested strategy might be to exit your “long” mutual fund positions in alignment with signal changes. For example when the direction indicator is down, exit your positions to cash, but continue to keep funding your 401K, IRA etc with new contributions even though the indicator is down. This is because we want to continue buying into the 401K but effectively we will be doing it a lower cost basis levels. When the indicator turns back up, re-enter those mutual fund positions which will now contain the previous funds as well as the newer contributions ideally bought at lower levels. Note: this is just a suggestion as one way to trade this, we are not financial advisors so please read and adhere to the disclaimer below. if you are interested in becoming a member of our service which provides specific trade suggestions please Click Here

 

Disclaimer:

The Stock Trading with a day job service is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of Stock Trading with a Day Job are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Subscribers to The alert service or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so.

Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts.

 

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.

This steps into the domain of learning what to trade and how the system works