How to Invest in the Stock Market for Beginners

If you've never invested before, and have no idea what the stock market is, check out this short video that takes you through the initial steps of investing!

What will you invest in? Stocks and shares? Or the new and exciting world of cryptocurrency?!

All About Futures Trading

In layman's language, futures trading is a form of paper investment where you speculate the price of a commodity. If you speculate, correctly you make a profit and vice versa. The commodity can be anything from currency to corn. It's known as a paper investment as you don't have to hold the physical product for you to make money. In fact, you speculate the prices based on the contract of the product.

Who trades in futures?

There are two main types of people that trade in futures: speculators and hedgers. The hedgers are manufacturers of the product. They trade to protect themselves in the event the price of the product changes. For example, a corn farmer would buy plenty of corn futures contracts when he expects the price of the product to shift.

Speculators are investors with interest in a given area. For example, investors interested in the milling industry, will buy flour futures. They don't produce the product and often don't have a connection with the products. All they are interested in is making money in the event the market moves to their advantage.

Benefits of futures trading

There are plenty of benefits that come with futures trading. Some of these advantages include:

Huge returns: In the event, you make the right speculation, you stand to make a lot of money. This is because futures are highly leveraged investments. In most cases, the profits you gain from your speculation are multiplied tenfold. The cool thing is that you don't need to have all the money that you are speculating. You need 10% of the amount. This is known as margin, and it's a form of security bond.

In the event the market goes against you, you can lose some, all, or even more than the margin that you had placed. If the market goes according to your speculation, you make a tidy profit and get back your margin.

You deal with papers: The other advantage of futures is that you work with papers-you don't have to hold the actual product. This means that if you are trading with corn, you don't need to buy corn and store it in your home or place of work. Unless you are a hedger and in extremely rare cases, you will exchange hands with the product.

No inside information: In other forms of trading such as stocks trading, some people have information about companies thus buy and sell their shares with inside information. This is unfair for people without the information as it results to loses. Futures trading doesn't have this. At the end of a trading session, an official market report is released, and everyone interested can look at it. This keeps everyone at the same level as no one has more information than the other.

Conclusion

This is what you need to know about futures trading. Just like any other form of trading, futures trading has its ups and downs. Sometimes you can lose money, and other times make a tidy profit. Before you jump into it, take the time to study it.

To reduce your chances of making costly trading mistakes, you should invest in futures trading education. One of the easiest and best ways of getting the knowledge is attending trading webinars. To know more visit the given links.





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Why You Should Learn to Swing Trade, Even If You Have a Busy Life

I tried day trading once. I tried to fit it in between working 60 hours a week, continuous meetings and phone calls, coaching, volunteering for school, etc. Let's just say it didn't work out. I was too distracted, and didn't know what I was doing. I lost a lost of money very quickly.

I almost gave up on the stock market for good. I decided to look more into swing trading. Holding positions that are based on valuation and take a little longer to develop. It was the best decision I ever made. I absolutely loved it. I hated the volatility of day trading. It seemed shallow to me and it didn't fit my personality. But swing trading fit me to a tee, and here's why:

1. It takes a decent amount of work to find good trades. You have to learn technical and fundamental analysis, and be able to scan through stocks to find the requirement you like. Then you need the patience to hold them until your trade plan comes to fruition. I liked this so much more because the research I put in gave me a sense of accomplishment that I never felt before.

2. You don't have to quit your day job. Swing trade stocks typically move slower and take a little longer, so you don't have to be glued to the computer. Set auto stops and profit triggers and let the trade come to you. I check my swing trades 2 times a day on my iPhone just to make sure things are going well. This provides and amazing supplemental income for me and my family to take extra vacations and have nicer stuff (and maybe retire a little sooner.)

3. You can sign up for a watchlist service relatively cheap, and get great ideas from a professional. They are usually a little higher quality than day trading watchlists. Don't ever take a watchlist as gospel though. Use them for ideas, but do your own research. I enjoyed doing the backup research because I liked to feel 100% confident that I knew exactly what I was trading and why.

4. There are a lot of good and bad teachers out there. It takes a little time and research to find the right mentor, but when you do, they can really take your trading to the next level. Do your research and when you're ready, invest in yourself.

Thanks,

Ryan Townsley

I am up 106% already in 2017. If you'd like to find out more about my trading, visit me at my website.

Visit my website http://www.highprobabilitytrades.com

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5 Proven Steps To Doing Really Well In Trading

Hi. Have you ever wondered what it takes to do really well in trading or what necessary steps you need to do? I keep receiving these questions quite often. So let me give you my five proven steps. I've been doing really well with them in my own trading, so I believe they can help you too.

Step #1: Questions

You may or may not like it, but successful trading is about the ability to come up with new, fresh ideas. Fortunately, it's not as difficult as it sounds. All you need to do is to keep asking this question: "What happens if... ?" What happens if I buy when the RSI indicator is overbought instead of oversold? What happens if I start moving my stop-loss according to my moving average? By asking the "What happens if... ?" question constantly, you start to move forward really fast and I can guarantee you some of your ideas will be sooner or later really big winners.

Step #2: Robustness Testing

Most strategies are crap. That's the fact. But how do you know which ones aren't? You can always find it out through extensive robustness testing. What does it mean? In my case it mainly means three things: A) A good strategy can easily adjust to changing market conditions. An extensive walk-forward testing is needed at this stage. B) A good strategy performs reasonably well in other markets. C) A good strategy has been developed only on a part of all your historical data and performs well on the rest. To be very honest with you, about 95% of all my strategies never pass my robustness testing criteria, but when they do, it's time to move to the next step.

Step #3: Portfolio 

One strategy will help you learn, but a portfolio of strategies will help you grow. You don't need to have a big portfolio at the beginning, but even three strategies are much better than just a single one. Remember, if you want a smooth equity and a steady income from your trading as soon as possible, the only way is through diversification and portfolio. Very few people are aware of this and even fewer spend significant time by modeling different portfolios. I personally spend a lot of time trying to find out the best way to combine my strategies together to make a really good portfolio.

Step #4: Position Sizing 

Let me ask you a question: Do you want to make it big or do you want to stay small? Because if you want to make it really big, then you need to start seriously thinking about position sizing. This topic can be pretty complex, but it can be also extremely rewarding. So, where do you start? I highly suggest reading Van Tharp's book "The Definitive Guide to Position Sizing." You will learn a lot. Personally, it has moved my trading to a whole new level.

Step #5: Persistence 

Listen, it can be done. It doesn't matter what education you have, how old you are, or even how confident you feel at this moment. I've seen many people succeed. I've seen traders making it from zero to quite a nice living, and that's why I believe that you can do it too. Yes, it does take some time, effort and learning, but once you're finally there, it's all worth it. So, stay persistent and mainly never give up, and that's really all.

Happy Trading!

Tomas Nesnidal is a European trader and developer, with 10+ years of full-time trading experience. You can download an example of his strategy for FREE on his blog http://www.SystemsOnTheRoad.com.

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