Any business implies a certain percentage of risk. It’s a well-known fact that can hardly be argued
You’re making a smart investment in your future.
Most people overcomplicate success. All these businesses and investments you’re learning about aren’t super complicated - they’re actually simple. The key is finding the right system, building your team and taking action!
Everyone dreams about being an entrepreneur with his own prospering business, still, there’re indeed not so many real entrepreneurs. The main reason for this is FEAR.
Failures do not exist. The thing that is called ‘failure’ is nothing but an incomplete attempt.
Discover Ways to Create a Sustainable, Passive Income for Life
Making money makes way more sense than trading your time for money. After all, you only have so much time. You can't just run to Wally World and pick up some more.
Psychology is the Achilles’ heel of any trader and trading robots can help. Moreover, this stone is the most slippery on the trader’s path. You can be absolutely sure of your steadfastness and determination, but when there is a lot of money at stake, the market, having made a couple of sharp reversals near the stop loss and take profit , will make anyone nervous and, possibly, close the position prematurely. The robot, as you understand, does not possess emotions and will follow the program laid down in it to the end.
Forex trading, in its essence, is opening and closing positions at favorable (from the point of view of the trading system) times. Ninety-nine percent of a trader’s job is waiting. More precisely, this is market analysis and waiting for a favorable moment to enter the market. In this case, it is important not to break the wood and not to conclude a deal ahead of time.
Don’t start trading just for the sake of trading. You can sit yourself day and night, without taking your eyes off the monitor, and at the same time, with iron restraint, open and close positions at a given price. Or you can entrust this task to a trading robot. Strict adherence to the inherent algorithm is the strength and weakness of a trading robot.
The fact is that it is rather difficult to foresee all possible situations that arise in the course of trading. The more different situations the trading robot’s algorithm takes into account, the more flexible and stable it is. And there can be a great variety of situations: from a banal power outage or disconnection of the Internet connection to an alien invasion :-).
In the trading robots section, you can find simple implementations of various trading methods.
All offered trading robots are absolutely free and can be a good help for you in creating your own automated trading systems.
Immediately I draw your attention to the fact that the programs include only a pure trading algorithm without taking into account possible failures associated with a variety of situations that arise in the course of work.
Therefore, traiding robots are rather for informational purposes, helping you understand the basics of automated trading. They will work, of course, but I strongly advise you to install them only on demo accounts…. The downloaded file is a program in the MQL4 language. By opening the file in the MQL4 editor built into the MetaTrader4 terminal, you will see this program and can, if necessary, make your own adjustments to it. You have to install a trading robot in the MetaTrader4 terminal . The MQL4 Programming section will help you understand the basics of programming.
A trading robot has no emotions, neither fear nor greed is inherent in it . A trading robot will strictly follow the algorithm laid down in it, like a terminator, performing the task assigned to it.
At the same time, your task is to put this correct algorithm into it, which provides for the maximum possible scenarios for the development of events and gives it the maximum possible flexibility.
Low-liquid Stocks are An Unjustified Risk or an Opportunity to Make Good Money?
Like any other type of goods,low-liquid stocks have such properties as supply and demand. The more developed and well-known the issuing company is, the more in demand its securities are and the greater their volumes are traded on stock exchanges.
The presence of stable supply and demand makes it possible to establish current market prices as a result of an equilibrium between these two driving forces of the market. Prices set in this way, as a rule, have a minimum spread (the difference between the buy and sell prices of the same stock). This is typical of highly liquid stocks.
A small digression: it is customary to call such financial instruments (in this case, stocks) liquid in trading, which can be bought and sold without any problems and with a minimum spread.
As for low-liquid stocks, the situation is exactly the opposite. Their issuers are usually little-known, relatively small companies or newly formed startups. Investments in such securities are much more risky, and therefore less popular. This is the reason for the relatively low demand for them.
Due to low demand, such stocks cannot boast of sufficiently flexible pricing. Their price changes in leaps and bounds and has very large spreads. Such stocks are not only difficult to sell, but problems can also arise when buying them (especially when it comes to large enough volumes).
It would seem, what is the problem here? If, with low demand, no one wants to buy such securities, then the market should welcome a casual buyer “with open arms” by filling him up with unnecessary securities from head to toe.
This is partly the case, but one problem arises. When the purchase of such securities begins in large enough volumes, their prices rise by leaps and bounds and the buyer has to pay more and more in order to gain the volume he needs.
How a simple American schoolboy made $ 800,000
Low-liquid stocks are much more sensitive to changes in the current supply and demand for them precisely because in most of the time their values ??are very small. There is a story about how an American schoolboy earned $ 800,000 from them, starting with a start-up capital of $ 8,000. The name of this prodigy is Jonathan Lebed. He started trading at the age of 12 and in the first year and a half was able to increase his capital to $ 28,000 (almost 500% of the profit).
At the same time, the boy was busy filling his own website about trading, where, along with the official exchange news, he published his own forecasts regarding the future prices of certain securities. Soon enough, his website became a fairly popular resource and the boy noticed that his forecasts were beginning to have a rather strong impact on the low-liquid market.
When he advised to sell, prices went down, and when he recommended to buy, they went up. Well, how not to take advantage of this alignment? And Jonathan began to deliberately manipulate the market (not bad for a student, right?).
This kind of manipulation could not go unnoticed for a long time, and pretty soon the Securities and Exchange Commission (SEC) became interested in Jonathan’s brokerage account. Quinoa was accused of fraud, but even here he was not so simple.
He stated that, firstly, all his forecasts were absolutely sincere, and secondly, he did not impose on anyone to act in accordance with the recommendations given to him.
As a result, the SEC managed to chop off $ 285,000 from him (they also took a promise from him not to misbehave anymore) . That was the end of the matter, and the boy was left with half a million dollars in his pocket and continued to work on the trading path. Now he is not engaged in manipulation (at least no one caught him on this).He trades honestly, including acting as a financial analyst and selling his investment ideas and forecasts to everyone.
Earning strategy on low-liquid stocks
I in no way urge you to engage in manipulations like the hero of the story described above. Moreover, in our time, such a trick is unlikely to work. Pamp and Dump schemes are now increasingly used in the cryptocurrency market, but in the stock market this is no longer possible (or at least very difficult).
However, the main property of illiquid stocks, thanks to which such manipulations with them were generally possible, remained unchanged. Namely, the increased sensitivity of their prices to changes in the balance of supply and demand.
And thanks to this property, it is relatively easy to calculate the transactions of institutional investors and join the price wave that they raise. At a time when a large investor or, say, a trader of a transnational corporation begins to acquire a large batch of low-liquid stocks, their price will start to rise. An increase in demand will cause an inevitable rise in prices, but this growth will be limited by the exchange rules.
The fact is that in order to avoid “Pamp and Dump” situations, the price growth for each specific financial instrument is artificially limited. After the share price, pushed by the buyer, rises during one trading session by 30-40%, the exchange floor will fix it at this level, not allowing it to rise even higher.
Such price fixation is likely to cause a decrease in supply, as most sellers would prefer to wait for the next trading session to begin and further price increases. This scenario will continue exactly as long as the institutional investor does not pick up the required volume of shares, sometimes it can last for several days in a row.
This very wave of growth can be used in order to join it at the inception stage and exit with a profit at its very top (when the buying of shares stops). In this case, you can use this simple algorithm of actions:
- We set up the trading terminal to track growth leaders, filtering out low-liquid stocks that have risen in price by 30-40% per day;
- At this level, we make a purchase, remembering to set the Stop Loss level and wait for the start of the next trading session;
- As a rule, if a large investor continues to buy shares the next day, then the price can quickly jump by another 30-40%;
- We fix the profit or move the Stop Loss up and wait for the next trading session.
As you can see, the strategy is quite simple, but at the same time it should be understood that it is also quite risky. Here, in no case should you be greedy and leave on time so as not to end up with a bunch of unnecessary papers in your hands.
Many newby traders ask themselves this question- how to learn to trade?The vast majority of new traders entering the Forex market do not have any specialized education.
This is due to the fact that thanks to modern technologies, Forex trading has become available to almost everyone. (for this it is enough to have a computer connected to the Internet).
Newbies start to make their first deals and lose quite naturally.
At this moment they understand that a trader is a serious profession and, like any other profession, it requires some training (after all, it would never occur to anyone, for example, to fly an airplane without prior training in piloting skills).
Having felt the need to learn on a rapidly decreasing deposit, a trader sees two options for learning the basics of trading. The first option involves paid training in one of the many dealing centers providing market access services.
The second option is to master the basics of trading on your own. Can I learn to trade on my own?
Yes, it is possible, moreover, in my opinion, this path is more optimal. Optimal, firstly, in terms of the amount of costs. Why give some uncle a pretty tidy sum for the fact that he will voice to you information that is already freely available on the Internet. After all, this amount can be invested in trading (not immediately, of course, but after training on a demo account ).
Believe me, paid training courses will not provide you with any unique information for the simple reason that they do not have any unique information. There are no secrets, allegedly known only to the so-called trading gurus, and which they are willing to share with the elite, naturally, for a substantial monetary reward.
I repeat, all the information you need is freely available, you just need to skillfully pick it up and use it wisely.
I recently heard the argument in favor of paid training in trading. One student, who has already deposited money and is undergoing training, argued with foam at the mouth that the main advantage of this type of training is the systematic presentation of the material and the ability to ask questions during the training, getting answers to them. But here’s what I think about it.
Trading is a profession that requires a person who wants to master it, a certain level of intellectual development.
So, pay attention to the question: why should a person who is unable to systematically organize independent training and find on the Internet the answers to the questions that arise in the learning process to start trading? (and I can hardly believe that paid training courses will turn such a person into a stable earning trader).
For important tips for those who decided to master trading on their own, read the article: How to start trading Forex from scratch.