Trade stocks, crypto, currencies, indices, with eToro practice account.
An eToro practice account, also known as a demo account, is a valuable tool for anyone interested in trading financial markets.
With a practice account, traders can test out different strategies and gain experience without risking any real money.
In this article, we will explore the benefits of using an eToro practice account, how to set one up, and some tips for making the most out of it.
Benefits of Using a Trading Practice Account
The benefits of using an eToro practice account are numerous.
Firstly, it allows traders to test out different strategies and see how they perform in the market without risking any real money.
This is important because it allows traders to make mistakes and learn from them without incurring any financial loss.
Additionally, a practice account can help traders become more familiar with the eToro platform and its features, such as the different types of orders and charting tools available.
Another benefit of a practice account is that it allows traders to practice their risk management skills.
This is important because risk management is a crucial aspect of trading, and it is essential for traders to be able to manage their risk effectively in order to be successful.
A practice account enables traders to test out different risk management strategies and see how they perform in the market.
To set up an eToro practice account, traders need to create a free account on eToro’s website.
Once the account is created, traders can access the practice account by clicking on the “Practice” button on the top right corner of the eToro trading platform.
The practice account will come with a virtual balance of $100,000, which traders can use to practice trading.
Which Markets Can I Trade with an eToro Demo Account?
An eToro demo account will give you access to trade the following:
Stock market
Crypto market
Commodities market
Currencies
Indices
ETFs
Stock Market: trade stocks such as the SPY, Tesla, Apple, the Nasdaq, and many more.
Crypto Market: trade crypto such as Bitcoin, Ethereum, BNB, Cardano, and more.
Commodities: You can even trade commodities such as Gold, Silver, Oil, and even Wheat!
Trade stocks, crypto, currencies, indices, with eToro practice account.
The number of markets you can trade with the eToro practice account is one of its coolest benefits.
One that many other trading accounts don’t have the capabilities of doing.
Let’s now look at some great tips for trading on a demo account you may find extremely useful.
Tips for Trading on an eToro Demo Account
Trade stocks, crypto, commodities, indices, and more with an eToro Demo Account.
Once the practice account is set up, traders can start experimenting with different strategies and testing out different trades.
It’s important to remember that the practice account is not a simulation and the market conditions, spreads and other parameters are real-time (another benefit).
One important tip for making the most out of an eToro practice account is to keep a trading journal.
This is a record of all the trades that you make, including the reasons why you made them and the outcome.
Keeping a trading journal can help traders identify patterns in their trading and make more informed decisions in the future.
Another tip is to make use of the eToro social trading feature, which allows traders to follow and copy the trades of successful traders.
By following and copying the trades of successful traders, traders can learn from their strategies and gain valuable insights into the market.
Lastly, it’s important to remember that the purpose of a practice account is to practice and gain experience, not to make quick profits.
It’s important to approach trading with a long-term mindset, and not to get discouraged if things don’t go as planned.
A practice account will help you develop not just the skills you need to succeed in any market but also the discipline and grit it takes to win.
Closing Thoughts on eToro Practice Account
How to practice trading stocks, crypto, commodities, and more.
In conclusion, an eToro practice account is a valuable tool for anyone interested in trading financial markets.
It allows traders to test out different strategies and gain experience without risking any real money.
By setting up a practice account, keeping a trading journal, making use of the eToro social trading feature, and approaching trading with a long-term mindset, traders can make the most out of their practice account and become successful traders in the long run.
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Why options trading?
Options trading allows you to make money at will, no matter if the price of a stock is on an upwards or downwards trend.
Differentiating calls vs puts is going to help you identify which strategy will best suit you as a trader.
While some traders use one or the other, many traders also use both strategies in different plays.
Trading options isn’t as risky as most people might initially think it is.
For starters, buying a call or put option means you can only lose what you invest in.
Another pro to trading options is you can earn money every day, or every week if your margin account has less than $25,000.
New options traders will find you do not need a lot of money to begin trading options.
To get started, you’ll need to open an options trading account and you can fund it with a few hundred dollars or less for starters when learning how to trade.
Reason why you shouldn’t limit yourself to a 9-5
Options trading for beginners.
A 9-5 might feel like you have some sense of security, but the reality is a 9-5 is never truly 100% secured.
Learning new skills will allow you to increase your income outside your 9-5 without having to take the risks of entrepreneurship.
Two of my startups failed while I was employed, the third one wasn’t scalable, and finally my first real business has been growing since 2020.
But even then, I knew that I didn’t just want to earn money per project.
I asked myself, “how can I earn money on a regular basis?”
That’s when I began to study options trading before actually committing to making my first trade.
The hardest part for me was taking action after I had digested the knowledge on how to make my first trade.
But let me tell you, once I made my first trade, I got a rush.
Because I wanted to do it for so long and I was finally doing it.
I had a strategy in mind I always thought of using and I finally began putting it to work.
I made gains on my first trade, gains on my second, and lost a little on my third.
But by my sixth trade, I was up 10.57%.
If you’re a long-term investor you’re lucky to see these gains by the end of the year.
Here’s why these gains were so important
If you’re thinking to yourself, what’s so significant about +10%?
Well, you’re missing the macro vision here.
Think about how often you get a raise at work, are you even in a position to get a raise at work?
Imagine you getting paid 10% more one day at work, that be great wouldn’t it be?
Now let’s break down how much 10% is when comparing it to a few different brackets when trading options.
10% gains on $200 is $20 more per day / additional $600 per month
10% gains on $500 is $50 more per day / additional $1,500 per month
And 10% gains on $1,000 is $100 more per day / additional $3,000 per month
Now that’s a lot better, right?
If you are able to make $1 trading options then you can make $10 trading options and $100, and so on.
And while not every trade will be a 10% gain day, some will be bigger days and some less.
This is where strategy and due diligence will play a big part in your success rate.
I break down the differences in this article and make it very easy for beginners to understand how they work.
Call options are bullish bets a stock will go up while put options are a bearish bet a stock will go down.
You will also want to familiarize yourself with the meanings of OTM (out the money), ITM (in the money), and ATM (at the money), also explained in this same article.
And lastly, you will need to use a broker that allows you to trade options.
Webull has to be the best platform to trade options as it has one of the easiest navigation layouts in the game.
NOTE: you will need to open a margin account and not a cash account to trade options with Webull.
If you’re part of the community newsletter, you received an email regarding a new 3-part video options trading series I have coming very soon.
I’ve completed Part 1 and Part 2 already and will be publishing a video on my personal day-trading strategy in August as Part 3.
I show you the basics; how to buy a ‘call’ option and ‘put’ option step-by-step during a real-life trade.
I will wrap up the third video with the trading strategies that I personally use that no one else is talking about.
Some of you caught the clip I posted on my IG story this morning on calls that printed from CEI.
This 3-part video series will be made available in our private community if you’re interested in learning more about trading options.
Here’s what happens when you trade options
Options trading for beginners.
You gain control of your finances
A confidence emerges that was previously dormant
You unlock the ability to multiply your money at will
Something clicks when you realize that you can literally turn money into more money without relying on an employer.
Those of you reading this who already trade options know exactly what I mean.
By the end of my course, most of you will be able to wake up every morning and make a trade that will yield gains.
Also, don’t forget to share this article on social media.
Let’s get started!
#1. Write a Financial Plan with Intention
One of the most important things you can do right now is to begin writing a financial plan with intention.
The intention has to be there.
What are your financial goals?
What are your income goals?
Journal them and create a plan on how to make those visions become a reality.
Perhaps you’re looking forward to saving your first $1,000, your first $10,000, or want to hit your first every $100,000+ in capital.
The best way to start that journey is to write it down as a plan first.
Identify what it’s going to take, and the rest will follow through.
#2. Practice or Learn New Skills Now
If part of your plan involves earning more money for 2023 and you’ve identified that you’ll have to take on a whole new industry or develop a new set of skills, start now.
The only way we grow is by learning, and unfortunately there’s no shortcut for it.
You can learn new skills such as copywriting, public speaking, trading, graphic designing, website creation, sales, marketing, branding, etc.
Learning is painful because it’s slow and often times people put learning something new on the back burner to not start over again.
But the truth is you’re not starting all over.
You’re merely making yourself more valuable by elevating your standards.
If you want to make more money in 2023, chances are you’re going to have to do something different the new year than you did this year.
Remember, degrees don’t make you money, skills do.
#3. Solve Problems for Other People
How to make more money in 2023.
This can be in the form of an actual business venture, or an educational or informational startup, such as an online business (blog, podcast, etc.).
You know this and I know this, there are people making a sh*t ton of money either online or through a traditional business model.
What these individuals are doing is they’re simply solving problems for other people in a particular community or niche industry.
Can you think of a way you can serve people in a manner that will solve a problem for them?
Whether their problem is they’re in the area and they’re hungry, or they don’t know how to dress themselves properly for a specific function, or they don’t know the basics of proper car maintenance.
There is something you know that can solve the problem for someone else whether that be physically or through an online platform.
Automated trading software development is the backbone of the digital economy. They are the engines that drive a trading session, and they also provide liquidity to market makers.
We need to understand how they work and what their role is in the market. In this section, we will discuss key concepts of trading platforms like open order book, buy sell market maker, disco and how these can be used as building blocks for creating trading platform applications. The trading platform is a digital marketplace where buyers and sellers can exchange goods and services. The platform’s functionality may include:
“I am a trader, I have to generate content on my trading platform. How do I do that? I have a lot of trading platforms to test and study. How do I choose one?”
The trading platform development is one of the most important parts of any trading platform. It consists of two main sections: While a trading platform can be developed from scratch, it is more convenient to use an existing platform. This section deals with the creation of new platforms using an existing one.
How to Choose the Best Trading PlatformÂ
As a beginner, you will be able to choose from many different trading platforms. The platform that you choose should offer enough features and flexibility to allow you to trade on a daily basis without having too much technical knowledge. Also, it should be easy for you to use and understand.
One of the most important factors when choosing a trading platform is what type of currency pair do you want to trade with? The most popular ones are Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Ripple (XRP). You can also find other cryptocurrencies like Cardano or IOTA on these platforms.
We all know that there are many trading platforms available out there, but which one is the best? We will give you a list of the top five trading platforms.
In this section, we will be explaining the various trading platforms that are available in the market today.
Dominant Strategies of Top Experienced Trading Platform Executives
A trading platform is an online platform that allows its users to trade and manage their assets. The platforms are designed to be used by both beginners and experienced traders.
Trading platforms are a very complex system of data, algorithms, and software that needs a lot of expertise to work properly. This makes it difficult for new traders to understand everything they need to know about the trading market.
The most experienced traders know how each algorithm works, how the market behaves in certain situations, what the best prices are for different assets and other factors that affect the price of an asset in real time. They also know what strategies work best for them so they can make informed decisions every day based on their own experience of trading.
They also have a good understanding of how people use the platform because they often trade with other people on the platform as well as against them in order to make money from their trades. So these top professionals use this knowledge when developing strategies for themselves.
What are the Best Crypto Currency Brokers?
Crypto currency brokers are the ones that allow you to buy and sell crypto currencies. They are also known as exchange platforms and they offer a wide range of services.
In the crypto world, there are a lot of brokers that offer their services to customers. Some of them are the best and most trusted brokers in the market.
We can find a list of these best crypto currency brokers in this article.
There are too many crypto currencies to list them all. The best brokers will be those that have the most functionality and can provide you with the best trading experience.
Stocks and Crypto to Buy in a Bear Market | Opportunity in the market right now.
That’s right, even in today’s bear market, retail investors have big opportunity right now.
If you’re a new investor or entered the market during the bull run, chances are your portfolio is down significantly.
But don’t let your first bear market shake you off because there are numerous opportunities out there that have the potential to yield big returns.
If you’ve been reading my blog for a while now, you’ve more than likely capitalized on opportunities such as AMC, HYMC, Shiba Inu Coin, Terra Classic, and Bitcoin during properly and fortunately timed moments.
So, what’s new?
In this article, I’m going to go over the opportunities I see that lie ahead for retail investors.
None of the information on my blog is financial advice but rather speculative content based on current information and trends in the market.
And with that being said, let’s get started.
Not Invested in The Markets Yet?
If you or someone you know are not invested in the markets yet, the two articles below are going to walk you through, step-by-step on how to buy stocks for the very first time and how to buy cryptocurrency for the very first time, too.
Much information on how to invest in the markets is outdated so I wanted to create easy guides for beginners.
Remember, one of the greatest wealth you can share with someone else is that of knowledge.
Opportunities in the Stock Market Today
Opportunities in the stock market today.
During a bear market share prices tend to tumble, hence why many long-term investor’s portfolios tend to lose value.
And although we can’t entirely time the bottom, we know that at some point the stock market is at a massive fire sale.
Value investors such as you and I can pick up shares from our favorite companies at these low prices before the market reverses trend.
Economists, analysts, and entrepreneurs alike predict there is still room for another 10%-15% drop in the markets.
But for the record, these are just predictions after all.
The point here is for value investors to capitalize on this falling trend by purchasing low and holding during the next bull market.
Whether you choose to capitalize on opportunities presented in a bull market or not will ultimately be up to you.
However, capitalizing during a bull market will require value investors to buy during a bear market, not during the bull market.
After being involved in the retail community for almost three years now, there are stocks and crypto that just stand out as having big potential during the next bull run and I’m going to discuss them below.
Stocks Worth Buying During a Bear Market
None of the information provided below is financial advice, but rather speculative in nature based on market trends and current information at the time of publication.
AMC Entertainment Stock (AMC)
You’ve probably heard all the ruckus on AMC and ‘meme stocks’.
It’s true, the stock jumped from $5 per share to an all-time high of $72 per share.
AMC Entertainment stock is currently trading below $6 again due to this bear market.
What makes this stock such an interesting value investment is that it has a huge community made up of millions of people who plan to take its current price up again.
Plus, the company has beat earnings every quarter since 2021.
Investing in the largest movie theater chain in the world could prove to pay out big during the next bull market.
SPY Stock (SPY)
I’ve talked about SPY stock numerous times on my blog.
While the real estate market is set to retrace some of its gains, keeping an eye on this stock may provide retail investors with big opportunity during the next bull market.
GameStop Stock (GME)
What GameStop is doing with their NFT marketplace is genius and not a lot of people know about it.
Wonder why, *ahem, mainstream media*.
The video game company is making it available for people around the world to own actual digital items inside games through the use of blockchain technology.
The opportunity this technology will bring to entrepreneurs and flippers alike in the future is massive.
Investing in GameStop early on could have massive potential as our economy shifts towards the digital/metaverse economy.
Amazon Stock (AMZN)
Amazon is now affordable for just about any value investor to buy shares from.
The company stock traded above $3K per share before its 20-for-1 stock split made it available for everyone to purchase.
AMZN is currently trading below $100 per share and it’s a steal whether you’re anticipating another 10%-15% market drop or not.
Tesla Stock (TSLA)
Despite what you might think of eccentric billionaire Elon Musk, you cannot deny what the entrepreneur has created is fascinating in its own respect.
Tesla stock has shown outstanding growth in the past even after stock splits.
We’ve seen this company’s stock reach massive popularity during the previous bull market.
In fact, it was right under AMC Entertainment stock as the most searched for stock on Google in 2021.
Meta Platforms Stock (META)
Most boomer investors, like mainstream media, don’t truly understand the potential of Meta.
While Zucks might currently get made fun of by Wall Street ego, there’s a huge opportunity investing in early technology, especially a technology that one day may change the world as we know it.
Today’s innovators will carry the baton, whether old power likes it or not.
Crypto to Buy During a Bear Market
Crypto to buy in a bear market.
Here’s a list of cryptocurrencies I’m keeping an eye on in today’s bear market.
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The Biggest Institutions Own AMC Stock
It’s true, according to InvestorPlace, the top 5 institutional owners of AMC stock are Vanguard, BlackRock, Goldman Sachs, State Street, and Bank of America.
Vanguard holds approximately 95.18 million shares of AMC Entertainment stock, which is equivalent to approximately 18.42% of the outstanding shares.
BlackRock holds 51.77 million shares of AMC stock, or 10.02% of the float.
Goldman Sachs 5.98 million shares, or 1.16% of the float.
State Street holds 20.53 million shares, or 4% of AMC’s float.
And Bank of America holds 5.42 million shares of the stock, equivalent to 1.05% of AMC Entertainment’s outstanding shares.
These 5 institutional AMC investors make up roughly 35% of the float.
If some of the biggest corporations in the world are currently hold AMC stock, it should tell retail investors something.
Here’s the latest on the channel.
A Market Rebound is Inevitable
AMC along with the entire market has for the most part of 2022 been on a steep decline.
And the issuance of APE (AMC Preferred Equity) only further contributed to AMC’s falling share prices.
But majority of retail investors are still not selling.
And with the market due for a rebound, it’s fair to project that with a montage of hungry retail buyers during the next bull run or bull market, an AMC short squeeze is inevitable.
Whether it’s what ‘Apes’ have referred to as a MOASS, or simply some gnarly price action, the opportunity to make money will be there.
If you missed the last two runups last year, now could be the time to buy AMC stock before the market turns on short sellers.
Could we see more price action from AMC Entertainment stock like we saw last year?
Absolutely.
So, while we don’t know when exactly the market will begin to rebound, we do know that the market never falls forever.
And when the market gets ready to bounce back, expect AMC to do the same, but due to the strong community behind it, with extra force.
FrankNez options trading: Best days to trade stocks.
If you’re a new day trader and are trying to figure out what are the best days to trade stocks, then I have good news for you.
I’ve beentrading optionsfor an entire year now and have figured out which days are the safest to trade, and which days are the absolute worst.
I’m also going to go over a risk management strategy that is going to allow you to have bigger wins, and significantly smaller losses.
If you’re new to the blog, make sure you join the newsletter for more content like this.
And with that being said, let’s get started!
Best Days to Trade Stocks
Monday-Wednesday
During my journey as an options trader, I’ve learned that stocks tend to be significantly less volatile on Monday, Tuesday, and Wednesday, making them the best days to trade stocks.
These are the days where you want to take more than one trade (should your edge present itself to you) with confidence.
Sizing down during these days isn’t necessary unless your risk management strategy demands it.
You never want to overtrade as a day trader, but you should know what days have less risk than others.
How about the other days?
Here’s my personal experience.
Thursdays
Thursdays tend to have moderate risk and stocks tend to gain some volatility here, but charts are typically still very much tradable.
While day trading itself presents the trader with risk in every trade, I’m merely going over which days tend to be riskier in terms of volatility in the market.
As traders, we want to trade big price action in one direction or another and refrain from getting stuck in the chop, or from getting stopped out only to see continuation in our favored direction once we exit our position.
These anomalies usually occur due to the volatility in the market.
So, how do we avoid them?
By patiently waiting for an A+ setup or not trading at all.
Remember, cash is also a position.
Friday
Fridays tend to be the most volatile trading days of the week and could even be destructive if not assessed properly.
Most novice traders end up giving all of their weekly gains back on Friday.
In my experience, traders should not trade on Fridays unless an A+ setup presents itself.
And even then, it would be wise to downsize on this particular day.
There are far more experienced traders than I who simply take Fridays off from trading and start again on Monday.
Learning how to manage your risk on these particular days is what’s going to allow you to be consistently profitable.
Below is a risk management strategy that can help you navigate the waters throughout the week.
Day Trading Risk Management Strategy
Set a fixed number of contracts to trade per new trade for Monday-Wednesday, Thursday, and Friday based on your account size.
Limit your number of trades for Monday-Wednesday, Thursday, and Friday.
Place a rule of when to stop trading.
1. Fixed Number of Contracts
Your fixed number of contracts is going to depend on your account size.
How do you identify how much you should risk?
Everyone’s account risk is different, but I would start trading with 10% of my account and only risk 10% of that particular trade should the market turn against my trading system.
This puts your overall account risk at 1%.
Set a rule for yourself to only trade ‘X’ number of contracts per trade for Monday through Wednesday, Thursday, and then lower your size on Friday by half.
This next part of your risk management strategy goes hand in hand with the fixed number of contracts you set for yourself.
#2. Limit Your Number of Trades Per Day
This rule is extremely important when it comes to managing your risk.
You’ll want to establish a ground rule of how many trades you’re allowing yourself to take per day.
[Ex.]
Since we know Monday-Wednesday are less volatile, we can set a max of 3 trades per day, while honoring your fixed number of contracts per trade.
Because Thursday tends to have more moderate risk, we can limit ourselves to a max of two trades on that particular day.
And with Friday’s being the most volatile day of the week, we can set a rule to only make one trade on Friday, granted that our setup presents itself to us, otherwise we don’t trade that day.
This risk management strategy allows us to refrain from overtrading on riskier days, while allowing us to potentially profit largely on less volatile days.
But the goal is to have significantly larger wins than losses, so how do we tie it up altogether?
By placing a rule of when to stop trading.
#3. Place a Rule for When to Stop Trading for The Day
Placing a rule for when to stop trading for the day is going to maximize your winning potential and minimize your losing potential.
Here’s a way you can manage your risk by knowing when to stop trading for the day:
Monday-Wednesday | 3 Trades Max
If you have two wins in a row, stop trading in order to keep that capital.
A third trade has the potential to both increase your capital, but to also eliminate your wins for the day.
If you have two losses in a row, stop trading and take the ‘L’ for the day.
While a third trade could potentially minimize your losses, the probability of accumulating even greater losses is also there.
If you have one win followed by a loss or vice versa, it’s okay to take the third trade to either end your trading day with some profitability, or minimal loss.
You may decide to not enter a third trade if after your second trade you’re still profitable or are merely facing a small loss; the choice will highly depend on whether your ‘edge’ presents itself to you or not.
Thursday | 2 Trades Max, Friday | 1 Trade Max
The same rules apply for Thursday and Friday except they are already limited to 2 trades on Thursday and 1 trade on Friday.
Since the market tends to get more volatile as the week progresses, limiting how many times you trade on Thursday and Friday will help you keep more of your gains made throughout the week.
You may decide to only trade once on Thursday and not trade on Friday.
This is good risk management as well.
By limiting the number of trades you make per day and number of contracts you take per trade on Thrusday and Friday, you eliminate big risk.
Any win you have on Thursday or Friday are merely extra gains to top off your week.
And if you have any small losses, they shouldn’t affect your bigger gains from the previous days, granted that you have a proper trading system in place.
But that’s another article of its own.
The Best Indicators to Trade SPY // Lesson.
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Want to become a successful day trader? Here’s what you need to know.
Majority of options traders aren’t successful, many know that.
Becoming a successful options trader is a journey in itself that requires real-world practice and experience.
The battles one fights when learning how to trade options turns into a war many aren’t willing to persevere through.
In the end, you realize the war was always you vs you.
You are always the boss battle.
This analogy depicts why only a very small percentage of options traders end up becoming successful while the majority fall.
In this article, I’m going to break down the 3 key things that make a successful trader profitable over and over again.
By the end of the article, you will have the knowledge you need to create the income and life of your dreams.
Let’s get started!
Introduction to Options Trading
If you have no clue or any idea about what options trading are, I highly recommend reading this article on what you need to know first before getting started.
The article guides beginners on what call and put options are, as well as what ITM, OTM, and ATM mean.
But if you already know the basics, let’s keep it moving forward.
Options Trading for beginners:
What Percentage of Traders Are Successful?
According to Investopedia, only approximately less than 20% of traders are successful with more than 80% of traders fail or quit.
Those who failed are those who blew their trading accounts and could no longer afford to fund them, leaving them with no choice but to quit day trading altogether.
Those who quit found day trading too challenging or never sought out solutions to the problems they were facing during the process.
Business Insider says only 6% of people who attempted to become ‘professional’ day traders actually succeed, claiming that those who fail is due to lack of passion.
That passion is what drives traders to continue to learn until they are no longer repeating the same mistakes over and over again.
But do you require passion to become a successful options trader?
The short answer is no, absolutely not.
I know options traders who earn upwards of $8K per day and trading is not their passion but rather the tool that provides them with freedom to pursue their passions.
What’s required is commitment and desire.
3 Key Elements That Creates a Successful Options Trader
Options Trading: How to become a successful options trader.
The commitment I’ve put into trading options over the course of the year has allowed me to identify 3 key elements that creates successful options traders.
I’ve made a lot of money but have also taken heavy hits in the past.
Losses are part of the game, there’s no denying it.
It’s how we overcome these losses that allows us to sustain profitability.
And it’s the number of wins we have compared to these losses.
Big wins, small wins, and small losses will keep you consistently profitable, but big losses won’t.
Here are the 3 key elements every successful trader masters to create the income and life of their dreams.
#1. Finding a Trading System That Works
Every options trader takes the time to find a trading system that will make them money in the market every single time that system or setup presents itself to them.
Without a proven and ‘back-tested’ system that works, options traders will not stand a chance against the market.
Every trader has their own system, many are similar in some ways, but never exactly the same.
Some options traders enter a trade based on candlestick patterns, some based on supply and demand setups, and others on crossover indicators.
Because every person has a unique perspective, every trader will correspond to a different set of trading methods different from others.
How do you find a trading system that works?
There are two ways to find a trading strategy that will make you money.
By back-testing your own unique strategy on a practice account. Find out what makes money every time and what doesn’t. Take your time before you commit to trading real money.
By replicating a proven trading strategy that works from a successful options trader. Some of my readers are using my personal trading system to make money in the market. Find a trader you trust and who posts their gains for other traders to see what’s possible to achieve in the market.
A successful options trader will have their system locked down before anything.
This system will be the platform that will make you money every time it presents itself to you in the market.
#2. Trading Psychology
Trading psychology has to come next because once you find a trading system that will put you in profit every time it presents itself to you, you’ll need to understand how to execute properly and exit with profits.
Most novice options traders eventually find a trading system that works but let profits turn into losses due to a weak trading psychology.
Trading psychology often times has to do with fears in the market.
The 4 primary trading fears are:
Being Wrong
Losing Money
Missing Out
Leaving Money on The Table
These 4 primary trading fears signal painful information to our brains which often times cause traders distress in the market which leads to painful losses.
*When you are fearful, no other possibilities exist in the market. Fear blocks all available information from the market.
Here are examples of how the 4 primary trading fears cripple options traders:
Example:Afraid of being wrong: not getting out of a trade when you should; Afraid of losing money: not buying enough contracts to make a lot more money; Afraid of missing out: chasing plays; Afraid of leaving money on the table: failing to take profits.
Options traders must learn to master their emotions in order to become successful traders.
Emotions in the market will always lose, data will not.
How do you overcome the 4 Primary Trading Fears?
Afraid of Being Wrong: If you find yourself in a losing trade, you must overcome your fear of being wrong by cutting your losses. If you are afraid of being wrong, you will let your losses grow much bigger in hopes that you are right and the trade reverses in your favor. Losses are part of trading, it’s how small you are able to keep these losses that matters.
Afraid of Losing Money: Sometimes a trader might not open a trade when their setup presents itself to them simply because they are afraid of losing money. You can overcome this by downsizing the number of contracts your purchase. Conversely, some traders might only stick to the minimum number of contracts due to being afraid of losing money if they scale up just a little. Successful traders learn to trust their trading systems and manage their risk accordingly.
Being Afraid of Missing Out: FOMO, or fear of missing out, is something every trader experiences at least once. Successful traders don’t blindly jump on a trade because they missed their setup or because price is moving quickly in one direction. If their setup does not present itself to them (or they missed it), they don’t take a trade and give into FOMO. Successful options traders always follow their setup.
Afraid of Leaving Money on The Table: When traders are afraid of leaving money on the table, they let their winners become losers. Failing to take profit (FTTP) often times occurs due to the emotion of greed, of wanting more. Successful traders overcome this emotion by always taking profits. When traders learn that there will always be money left on the table, that’s when they will begin to consistently become profitable traders.
Book recommendation
A book I highly recommend reading on the psychology of trading is ‘Trading in The Zone, by Mark Douglas’.
The first chapter alone is enough to provide you with the clarity necessary to improve your trading psychology and succeed in your trades.
Now on to the third and final key element that creates successful options traders, risk management.
#3. Risk Management
Options Trading Risk Management.
Risk management is what keeps successful options traders from blowing their accounts and losing all their money.
I was scalping $1K per day and entering trades with nearly 50% of my account (1:1 ratio) and also scalping approximately $3K-$7K paper trading – so I know my trading system works.
However, when one weak entry combined with the fear of being wrong1 led to the inability to cut my losses short, I paid the price and lost nearly half of my account due to overleveraging.
I was forced to inject my account with enough cash to maintain above the minimum margin requirement if I was to continue day trading.
This loss was such a valuable lesson because it provided me with clarity I didn’t have before.
The capital in my account wasn’t set up for large trades like the ones I was making yet.
I scaled largely because my trading system worked, and I had learned to trust it despite the number of contracts I was purchasing.
I figured out how to exit my trade with profit, but the issue was that although I welcomed risk, I wasn’t managing my risk properly in comparison to the size of my account at the time.
Risk Management Lesson
I had to identify and choose one of the following:
Trade at a much smaller volume, or
Continue to trade with large volume, but double down on trading psychology discipline to refrain from creating big losses
But of course, the most successful traders only risk a small percentage of their accounts and gradually scale up as their account grows.
So that’s what I decided to do.
I went from trading 60-80 contracts per trade to only 10 contracts per trade.
I then printed out a scaling system to help me identify when to scale up again based on my account size goals.
This was by far the cherry on top for my success as an options trader and has been for other successful traders too.
If you’re a beginner, start with one contract and identify how to gradually scale up later on as you gain confidence in your setup, improve your trading psychology, and understand the importance of risk management.
How to Stop Losing Money Day Trading
Options Trading for beginners
Losing money is part of the process when learning options trading.
The most successful options traders have lost a lot of money investing the knowledge in themselves but have succeeded by not repeating their mistakes.
It’s important to understand that big wins, small wins, and small losses are normal, but big losses shouldn’t be.
Successful options traders still lose money on trades but keeping them small is the key to long term success.
You can avoid big losses by finding a trading system that works, improving your trading psychology, and writing a plan for your risk management.
If you would like me to publish more articles like this leave a comment down below or join my newsletter.
Wealth Building: Differences between Long-Term Investing, Short Squeeze Plays, and Day Trading
Today’s article is going to be extremely educational; I’m going over the biggest differences between long-term investing, short squeeze plays, and day trading.
In this article you’re going to discover what makes each one more susceptible than the other to market manipulation and overall risk.
When you’re looking to build wealth in the market, it is important to identify the major differences between the three.
Be sure to bookmark this page so you can come back to it in the future for a mental refresh.
Let’s get started!
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I’ve helped people learn how to invest in stocks, crypto, and how to day trade options as well.
My goal is to help you take your finances to the next level. Be sure to browse the blog for market news, wealth building tips, and other valuable content.
Let’s dive right into it!
#1. Long-Term investing
Long-term investing is the #1 traditional way to build wealth over a long period of time.
Here, an investor’s portfolio compounds over time as dividends are rolled over or reinvested back into the asset – further purchasing more stock on its own.
During the years of retirement, investors may decide to stop reinvesting the dividend and accept the dividend as cash instead.
This is how a dividend stock portfolio may yield investors with big passive income in the form of cashflow many years later.
Many of these stocks are not heavy victims to market manipulation due to the security and minimalistic risk there is to invest in these funds.
Short squeeze plays have a high risk/high reward ratio that has attracted many new investors into the market.
When a stock is being heavily shorted, the short interest percentage of the stocks float tends to rise.
This means that with enough buying pressure, investors may increase the probability of squeezing short sellers from their positions.
We saw this occur when AMC ran from $2 per share to $72 per share and when GameStop skyrocketed into the hundred-dollar levels.
While both these two stocks are still heavily shorted, these are just two examples of short squeeze plays where investors could have taken advantage of an opportunity to make big bucks.
Short squeeze plays are more susceptible to market manipulation since market makers tend to have a lot of control of retail investor’s orders.
They may drive share prices down by overleveraging their already bias positions, which means a lot of momentum is required for a short squeeze play to be successful.
Short squeeze plays are a form of swing trades that may last weeks to months of holding a stock before trading it for profit.
This type of investment strategy may be viewed as mid-term investing to cash in big on a rather unique opportunity.
#3. Day Trading
Day trading uses leverage as a multiplier to trade stocks in a short-term timeframe.
What makes this investment strategy attractive to most investors are the possibilities to earn massive gains in such a short period of time.
Traders are earning money whether the market is up or down through ‘put and call options contracts’.
Unlike long-term investing or short squeeze plays that have a buy and hold approach, day trading is a skill that requires focus, discipline, and a deep understanding about the psychology of trading.
Day traders can earn hundreds to thousands and even tens of thousands of dollars on a daily basis (you can view my gains here).
While day trading is mainly a form of income, traders may still allocate earnings towards long-term investments to further build their wealth.
As investors, we need to identify the best way to take advantage of the tool that is the stock market.
Long-term investors should focus on increasing their income to flood their portfolios with compounding effects.
Short squeeze traders should draw out a macro vision board to determine which path to take after short squeeze profits are secured.
Day traders would be wise to invest a portion of their income towards dividend paying assets or physical assets (such as property or a business) that will produce cashflow.
Building wealth is about having your money work for you so that you can have the time freedom to do what you love most.
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I’m curious to know your thoughts, leave a comment down below.
Are you wondering which stock tickers are the best to day trade?
In this article I’m going to walk you through my personal favorite as well as some of the most common stock tickers to trade in the market.
Some of these symbols may yield very high profits while others are more conservative (for less risky traders) in price action but still very profitable.
Regardless of which symbols you decide to trade, here are the best stock tickers to day trade for both novice and skilled day traders.
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You do not need to be in a trade long enough to profit with TSLA contracts.
The great thing about trading TSLA is that you can scalp it and make a ton of profit in such a short amount of time due to its higher price action.
The only con is that it’s expensive to trade.
This means that if a trade does not go in your favor, any small losses can quickly turn into heavy losses.
So, before day trading TSLA stock, be sure you have enough capital to cover (if)any losses, but most importantly – have a proven strategy that works prior to trading a pricey position.
AAPL stock is another popular stock ticker to day trade.
Although I don’t trade this company much, I have profited trading it before.
The strategy I use allows me to enter and exit for profit in just about any ticker.
However, I tend to stick to a very selected few without broadening too much of what I trade.
Apple stock tends to have high trading volume, making it a top choice for new and skilled day traders.
Do you trade this stock?
Leave a comment down below.
#5. QQQ
Invesco, or QQQ stock is an ETF made up of the largest non-financial 100 NASDAQ companies.
Like many Twitter users who day trade this ETF, I’ve also profited from this ticker.
I added this ticker to my watchlist when I noticed many users were making very profitable trades from QQQ.
While QQQ is not one of my most used tickers, it’s definitely on my top 5 list of best stock tickers to day trade, especially as an alternative in the tech sector.
This makes it a must to keep in your watchlist.
QQQ ETF – best stocks to day trade
Do you have an entry and exit strategy yet?
There are many online gurus that promise you riches when you sign up for their trading course.
But that’s not me, I’m merely sharing with you what’s worked for me and what’s allowed me to consistently be profitable day trading in the market.
That’s it.
In August, I’m publishing my 3rd video in a three-part options trading series going over which indicators, levels, and strategies have allowed me to spot a perfect entry to exit for profit.
Content creators are charging upwards of $100 for complicated jargon.
I’m simplifying what you need to know to start making money in the market today for only $15.
Why is it so cheap?
Because what’s more important to me is the impact this knowledge is going to have on my readers and their families, not the money.
I also want to introduce to my readers the value of investing in themselves, which is why it’s not a free program.
Not only did I create this platform to help you grow financially, but to also help you grow mentally.
Leave your thoughts below!