Archive for July, 2009

Jason Kelly is famous for his tireless worth ethic as a short-term commodities expert.

Being a skeptical and cautious guy I knew I had to do my research to find out what I could about Jason Kelly.  I also wanted to see from credible third parties and customers who’ve used his system what they had to say about it and whether they were being successful or having their stock portfolios tank.

The stock market is filled with opportunity, but it is not without substantial risks.

The stock market is two sides of the risk reward coin.  You can make massive profits when things go your way and you know what you’re doing but you can also lose your ass and your entire nest egg if it turns on you.

As such I’d like to find someone who’s having success by day trading stocks using a proven system which takes the emotion and guess work out of the trading decisions leaving only the cold, hard facts.

He claimed to have such a system and communicated pretty well the benefits and workings of his system.

“So were the people using this system making money, generating profits, and getting a positive ROI?  Or were they like little sheep pouring rivers of cash down a rabbit hole never to see it return again?”

So I took a look around the web on Google and Yahoo to see what was to be found there and some interesting patterns emerged.

Certainly, there were some people saying negative things and trashing the system but it digging a little deeper into their comments it was revealed they failed to respond to the exit alerts in a timely fashion and this is what caused their losses.  It wasn’t this system being bad it was their execution of the system which caused their failure.

You’re well aware timing is everything in the stock market so this should come as no surprise you have to get out when you’re supposed to get out or you’re leaving money on the table.  The stock market is unforgiving in that way.

It seemed to me the complainers were people who were half-hearted and didn’t put their full effort into stock trading which requires full effort or you get killed.

Most of what I saw out there in talking to people was positive stuff.  The overriding quote was “when you follow the system you make money.  But you have to do most of the trades so the law of averages works out in your favor and you’re able to profit.”

I’m no stock expert and you probably aren’t either but this is a good thing.  Too much pride in the stock market can kill you so when you recognize you’re not an expert you’re well on your way to following someone who is and reaping massive profits.

And check out this video here to see what the system is all about and whether it’d be a good strategy to add to your investment portfolio based on your goals and percentage return needs.

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Maybe you’d like to learn to trade in the two trillion dollar per day Forex market but you’re concerned that you can lose all of your money because you’re a beginner.  Are you losing sleep because you feel it might just be too hard to be profitable?

Then this brief guide will give you a pretty good overview of the rewards as well as the risks involved with FX online currency trading.  Read it over and I think you’ll agree that this can be a potentially profitable market to trade in for both newbies as well as experienced traders – if you’re willing to put in a bit of work.

What Is Online CurrencyTrading?

The FX stands for the foreign exchange. The Forex trader trades currency pairs. The foreign exchange deals with only one thing – buying and selling currencies in order to make a profit.

Astounding as it might sound, when you trade currencies your money can circle the world in a matter of seconds.

If enough people buy (go long) a country’s currency, they will strengthen that country’s economic position and raise the value of its currency.   When that happens the pip, or percentage in point, rises. Each additional pip means you can put more money in your pocket if you’re long that currency.

Many Forex traders like that they don’t feel like they need to be overwhelmed with information in order to become successful.

Don’t take this to mean that you should just open an account and begin to trade. There are still things to learn in order to be a successful trader. But you won’t have as steep a learning curve as you would learning to trade stocks.

What Hours Does the Forex Market Operate?

The Forex is in business twenty-four hours a day, six days per week – from Sunday afternoon through Friday. What it means to you is that you can pretty much do FX online trading on your own schedule.

One of the things you’ll soon learn is that some times of the day are better to trade than others.

This business knows no geographical boundaries.  As long as there’s an Internet connection where you are you can trade.

How Much Does It Cost to Get Started?

Most people who learn FX currency trading start with a small account, so they do not risk a lot of money. Many online Forex brokers will let you start trading with as little as three hundred dollars in your account.

And Forex brokers do not charge a commission. This means you can earn more money from your successful trades and lose less on your losing trades. These savings can really add up over the course of a year.

How Can You Learn Forex Online Currency Trading?

Some people sign up with an online broker to learn to trade.  This route can be tough to follow if you’re new to trading.  Although forex brokers don’t charge any commissions, they do control the bid/ask spread on the currency pairs. The bottom line is that the spread affects the amount of profits and/or losses in your account.

That’s why most people who want to learn to trade the FX look for highly recommended forex trading books or video courses before they start trading.

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There is a lot of hype surrounding trading options, and for good reason, it’s a good way make a lot of money fast, or can be used to grow your capital consistently month after month.

There’s also a lot of hype about how complicated it is and why you need to spend thousands of dollars on options trading education before you get started. Needless to say this last statement usually comes from trading seminar companies trying to sell your their trading course on options.

Lets cover a few of the basics about options and set you straight about a few important points. Firstly yes it is true that you can make a lot of money trading options, but of course you can also lose money just as fast.

When trading stocks your leverage is 1:1, if you go full out on margin you get get 1:2 leverage, but thats about it. With options it is not quite as straight forward to calculate the leverage but generally speaking you can get between 1:5 and 1:10 when you buy an option on a stock, or ETF.

So with 1:10 leverage, when the stock increases by 5% your option can increase by approx 50%, and this can happen in just a few days, this is why swing trading strategies using options on stocks is so popular.

However the downside is that the reverse can happen, if the stock drops by 5% your option can also drop by 50%, at which point you may want to close the trade and save some of your option value, it really depends on what your stop loss and risk management plan is.

What I’ve just described is called directional option trading where you are betting on the getting the direction of the stock movement correct, this is highly speculative. Options can also be used in option strategies which are much more non-directional, such as covered call trades, credit spreads and Iron Condors. In these trades there is much less dependance on getting the stock direction correct, but it still matters.

So should you trades options?, in my opinion you should not do directional option trades until you become an expert stock trader 1st. This is because you really need to be very precise with your entry and exit strategy and trading plan, and be very good at technical analysis.

Whereas if you want to do non-directional option trades you don’t need to be such an experianced stock trader to be successful, but of course it does not hurt either.

Learning how to trade options is a very good skill to have, but don’t rush into it and blow out your account. Make sure that you get a good options trading education before you start, and also make sure that you have a very solid stock trading education as well, such one from Top Dog Trading Review.

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