How to make consistent money trading stocks
For any trader and investor, the most important function for you is proper analysis of supply and demand. This leads to the two most important questions:. Those who can answer this question by looking at a price chart can predict stock market turning points and market moves with a very high degree of accuracy and therefore profit from this. The other day on our Supply and Demand grid, we used our rule based supply and demand analysis to identify a very low risk, high reward, and high probability trading opportunity in the stock market.
I will explain for your review in hopes that you can understand how important the two questions above really are.
This opportunity was found in the Gold futures market using a smaller time frame. Notice the supply level on the grid and the chart. We know supply exceeds demand because price could not remain at the level and declined from the yellow shaded area.
Price only declines from supply because there is more supply than demand at that level. Notice the first time price revisits the supply level.
Our rules tell us that novice traders are buying there. How to make consistent money trading stocks know this because these buyers are buying AFTER a period of buying, mistake number 1, and they are buying at a price level where supply exceeds demand, mistake number 2. The objective laws of supply and demand ensure that the trader who commits these two mistakes will consistently lose.
We simply sell short at the level with our protective buy stop just above how to make consistent money trading stocks level. As active traders, we determine these zones each day. As longer term investors, we do the same thing just in larger time frames. Notice the trading activity after the level was created but before price rallied back to the level for the first time.
This price action tells us the buy orders down to the lowest price point prior to the first pullback are filled. Remember, filled orders facilitate price movement. This means that as soon as price reached supply, it was likely to fall very quickly back through that area because the buy orders were already filled.
In other words, price reached our supply level and we are able to sell short at supply for a move down through the very clear profit zone. Again, unfilled orders supply and demand cause price to how to make consistent money trading stocks. Filled orders lack of supply and demand facilitate price movement.
If you learn to spot the first one, you will see the second one also. Online Trading Academy can how to make consistent money trading stocks you learn to trade the stock market so you how to make consistent money trading stocks use this skill set to help achieve your financial goals and live the life you choose.
Disclaimer This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever.
Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader.
The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.
I was a day trader for many years and it almost killed me. I made money by making profits on my own money and also taking a percentage of the profits for the people I traded for.
I did this from to I learned about day trading but I also learned a lot about myself and what I was good at, what I was horrible at, and what I was psychotic at. Things that had nothing to do with day trading. Day trading is the best job in the world on the days you make money. You make a trade, then maybe 20 minutes later you are out of the trade with a profit, and for the rest of the day you think about how much money you made.
I would make a trade, it would how to make consistent money trading stocks against me, and then I wanted my heart to stop so my blood would stop thumping so loudly. All of these lessons I will certainly use today, many years after I stopped day trading. This applies not just to trading but everything. You could be married for 10 years and the next thing you know you are divorced and you would not have predicted that. You could be healthy all your life and drink your vegetables and exercise and reduce stress, and a year later you could be dead from cancer.
You can always seek to increase the odds in your favor. But certainly a path to unhappiness is thinking the future can be predicted and controlled. A hundred percent of opportunities in life are created because people are uncertain about almost everything in their lives.
We are constantly trying to close the enormous gap between the things we are certain about and the things we are uncertain about, and almost every invention, product, Internet service, book, whatever has been created to help us close that gap.
Sometimes this is hard. If your husband betrays and leaves you, you often feel like crawling on the floor and burning all the self-help books. You can say it something inside of yourself. Some people take too many risks and they go bankrupt. This happened to me. But then I would take big losses and that would wipe out all my profits.
The key is that you can take larger and larger risks if you work on better and better ways to deal with those risks. For instance, I might be able to risk marrying someone if I know she is not a hard-core drug addict who regularly betrays the people she is close to.
I can risk driving without a license if I always stay below the speed limit I know this is a stupid risk, but still. How can I get that job? When I was raising money to day trade, I probably contacted over 1, people. When I was starting an Internet business I started over a dozen Internet businesses and watched all of them fail but one.
When I was trying to sell my Internet business I contacted over a dozen companies although Google broke my heart — damn you Google! When I wanted to get married, I went on lots of dates. She would only go to tea with how to make consistent money trading stocks. Within the first 20 seconds you know if you are attracted.
So keep how to make consistent money trading stocks to a tea. But this is just a mental bias. Say no to it. Day trading pulls everything out of how to make consistent money trading stocks. It sucks the soul out of your how to make consistent money trading stocks, blends it up, and then explodes. So you have to take care of yourself. And obviously, this applies to everything else in life. Every day, what small thing can you do to become a slightly better you?
The only way to survive is to laugh. Guy makes a trade. The market goes against him. And then he loses all his money and goes crazy. The market is never crazy. The world is never crazy. And I will go so far as to say how to make consistent money trading stocks your girlfriend who just lied to you about where she spent the night is not crazy.
I only care about you. Good and bad days happen. But life is about a billion little moments how to make consistent money trading stocks add up to all the things around you. If you let one of those moments have too much control then you are bound to be mostly miserable. I was mostly miserable during the period I was day trading. I let that aspect of my life take control.
So I stopped focusing on being a good husband, a good father, a good friend, a good anything. I would have nightmares. I would lose sleep. I would wake up many mornings and go to the church across the street so I could be by myself and pray. What would I pray? So what makes anyone think they will have an edge?
How many people listen to me? Because people are sick of their lives, their relationships, their jobs, and all the lies that have been told to them ever since they learned how to walk.
Day trading is the dream. You can make enough money to not care. To do it from anywhere. Most people think they have that one special something that will make it work for them. You can skip right to the being happy part. You can skip right to being free. But we never learned that. We were taught we had to do something first to earn freedom.
We were taught that suffering was the currency to buy happiness. Okay, go do it. Then cry about it. Then curse the craziness. None of that will make you happy. Then read this blog post again. Not because it will make you happy. But because I like when people read my posts. I was a day trader for many years, and it almost killed me. I did it for years, though, because I was unemployable in every other way. Everyone thinks they can. B Hope is not a strategy.
I hope that every day my life goes perfectly. C Uncertainty is your best friend. D Taking risks versus reducing risk. You have to decide every moment if this is the situation you want to be in. All of my other constituencies went to hell.
Nobody answered my prayers. They want freedom from the BS.
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