3. Trade in the Stock Market
When I realized how tough it was to get an engineering job I started looking for something to do independent of corporate America. I realized that no one cared about how you live. Since I care about myself and my family, I need to take control.
What better place to find this independence but in the stock market. There was a book that I bought for my wife that teaches how to invest in the stock market. It teaches how to get around the fees charged by mutual funds and stock brokers to trade in a self-directed account. Since my wife did not get around to reading the book and I found interest in the market I decided to read it. It was amazing to find out that the market was not as difficult as I had thought. Since reading that book I started reading others. I did not only borrow books from the library, I bought some really good books. I also started going to free seminars. I went to many of them.
Although I started studying the market in 2006, I did not open a stock account until April 2009. I now have $1,000 in the account. I prefer to trade the forex market though, because you don’t have to choose from hundreds of pairs. In forex, I trade about 10 pairs. It’s easier and quicker for me to just look at these few pairs and if there no setup I just log out and look again the next day. The stock market is more time consuming and the rules of the market does not give you the freedom as the forex market. For example, it is just as easy to buy pairs as it is to sell pairs. Not so in the stock market.
So why do I want to trade stocks if I find it easier to trade forex. I am looking at short-term and long-term strategies. For me, forex is for short-term strategies and is more risky. My goal for the stock market is long-term strategies. While I will be trading the forex market, I will be investing in the stock market. In the forex market I will use only technical analysis. In the stock market I will use both fundamental and technical analysis. I will be in and then out of the forex market in a matter of days or weeks. In stocks, I plan to find great companies with the goal of sticking with those companies for 10 years. However, if a company starts to perform poorly I will sell and look for the next great company.
My expectation is to make at least a 100% return on the funds in my forex account per year. For the stock market, I am expecting a minimum 15% yearly return on my funds. I will be sharing with you my gains and losses in both markets. If you wish to know the strategies I’m using drop me a line in this blog. If you have never traded before, you must understanding that there is not such thing as a no-loss strategy. Trading strategies are based on high probability. Therefore you will gain and you will lose but if you have a great strategy you will win most of the time.
In my next blog I will be showing you something about internet marketing that I’m currently working on.
