In a fast-paced and dynamic environment such as the world of financial trading, success, and failure are often determined by a combination of knowledge and skills as well as a diligent analysis of one’s own trading habits. It is in fact for the latter that a trading journal can be an important tool that can greatly contribute to a trader’s success.

In this article, we’ll discover what a trading journal is as well as explore the importance of maintaining one and how it can dramatically improve a trader’s decision-making process, improve performance, and help build a long-term profitable trading career.

Why keep a trading journal at all?

Richard Kent – professor emeritus at Maines’ College of Education and Human Development – once wrote:

“A journal provides an athlete with a place to set goals, reflect, grapple with issues, keep track of training ideas, and record results as well as plan, scheme, ponder, rant, question, draw, and rejoice”.

Whilst the Professor was clearly referring to sports, the same can be said about any performance-based profession or activity, and that, of course, includes trading.

Many successful financial traders keep journals to document their trading activities, strategies, and personal reflections.

Some of the traders known for their journaling practices include names you might have heard before.

Jesse Livermore, a speculator from the early 20th century, believed in the importance of keeping detailed records of his trades. He documented all his wins, losses, and market observations in his journal.

Ed Seykota, a pioneer of computer-based trading systems, suggested all traders should keep a trading diary to “track emotions, market conditions, and important lessons learned”.

Paul Tudor Jones, a billionaire hedge fund manager, is known -amongst other things – for his disciplined approach to trading. He uses daily journaling to record market analysis, trading circumstances, and all his personal insights.

Remember, keeping a trading journal is a personal habit that can benefit traders of any level, not just the famous ones.

What is a trading journal and how does it help?

A trading journal is a detailed record of trades, the reasoning behind each of them, strategies, emotions, and lessons learned.

Trading Journals come in many forms; from the simplest spreadsheet to the most complex software on the market, traders will find (or create) the format that they are most comfortable using and the one that works best with their own method of trading.

Here are some of the many reasons traders (experts, professionals, and beginners alike) choose to keep a trading journal:

1. Records and Evaluation:

   Keeping a trading journal allows traders to maintain a full and complete record of all the trades they have opened and closed. By recording entries, exits, position sizes, and other relevant details, traders can then review and analyze their trading decisions objectively at a later time (and, possibly, with a cooler head). This can help to recognize and identify patterns, the trader’s strengths, weaknesses, and areas for improvement.

   Analyzing past trades is very important and extremely useful in improving or resting new strategies by taking data-based decisions rather than intuition or “gut feeling”.

2. Self-Reflection and Emotional Discipline:

   Trading can evoke a range of emotions such as fear, greed, frustration, and impulsiveness. A trading journal allows individuals to reflect on their emotional state before, during, and after each trade. By recording emotions and thoughts, traders can objectively assess their psychological biases and tendencies, identify patterns of behavior, and make necessary adjustments. This self-reflection process enables traders to develop emotional discipline, helping them make more rational and controlled decisions even in stressful market conditions.

3. Learning and Improvement:

   The trading journal serves as a valuable learning tool. It provides traders with a platform to document lessons learned from both the winning and the losing trades. By constantly reviewing past trades, traders can identify what worked and what didn’t, allowing them to refine and tune their strategies and avoid repeating mistakes over and over.

   The journal acts as a guide for traders to continually learn from their experiences, successes, failures, and great ideas as well as their mistakes so that they can refine their trading plans, and evolve their skills over time.

4. Risk and Money Management:

   As everyone knows (hopefully), effective risk and money management are crucial factors for successful trading. A trading journal allows traders to review and analyze their risk management strategies, including position sizing, take-profit stop-loss levels, and overall risk/reward ratios.

   By tracking their money management strategy through their own records, traders can identify any deviations or mistakes made in managing risk and apply the necessary adjustments to ensure optimal risk management practices thereafter.

5. Accountability and Consistency:

   A trading journal can also hold traders accountable for their decisions and actions, motivating and incentivizing consistency in their trading approach.
   Consistency is the key to developing a good trading discipline, refining strategies, and creating a solid trading plan.
   A trading journal often reinforces the trader’s commitment to their goals, helps them monitor progress, and highlights areas of weakness that require improvement.

   Being accountable (even if just to oneself) can drastically improve decision-making and creates fertile ground for a proactive commitment to achieving long-term success in the trading markets.

Is it better to make our own trading journal or use any of the software available ready-made?

Any trading journal, whether it is made using the good old pen and paper, a simple Excel document, or trading journal software, is bound to improve your trading results by at least some measure but… which is better?

Gone are the days when traders had to rely on a self-made spreadsheet able to hold only a handful of details and information about each trade. Sure, a self-made trading journal is still very useful but – to put it frankly – nowadays, we can get a much better and more all-rounder journal than any we could make ourselves AND… without the effort, of course!

Many Companies now produce and offer ready-made trading journals that traders can start using right away. They come in different forms and with many different features and are structured in a way that makes it easy to review and examine past trades and performances.

According to stocktrader.com, the best of such software currently are:
TraderSync: “Best overall trading journal”.*
Traderview: “Great for professionals, steep learning curve”.
Trademetria: “Simple design”.

Remember:

The Trading Journal is one of the most undervalued and underutilized tools at a trader’s disposal but it’s also amongst the most useful. It offers an immediate way to analyze trading habits, past mistakes, successes, patterns, and motivations and to learn from it all.

* Also, remember that you can get your very own TraderSync trader Journal when you Join Funded Trades Now For You!

The post The importance of keeping a Trading Journal appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

So, you’ve decided to to and trade stocks, but you only have little money to invest in this venture? Don’t worry, because in this article, we will guide you on how to invest in stocks for beginners with little money, plus, we’ll let you in on a secret that few traders know, and stock-brokers definitely don’t want you to! So stay put.

Understanding the Basics of Stock Investing

First, just to make sure you’re in the loop, we’ll grasp the fundamental principles of forex trading: Stocks represent ownership shares in companies, and trading in them offers the potential for long-term growth and wealth accumulation. Key concepts such as stock prices, market capitalization, dividends, and stock exchanges play a vital role in understanding how stocks function. Get a grip of these basics and you’ll gain a solid foundation towards investment decisions, even with the little money you have.

Setting Financial Goals

When investing in stocks with limited funds, defining your objectives and determining your risk tolerance are key. Establish clear goals, such as quitting your current job, buying a red Tesla or saving up for the Millennium Falcon lego set, and align your investments accordingly. When you know what you want, what you really really want, it makes the path to reach it – clearer.

Determining Your Risk Tolerance

Now this is a crucial point. Before diving into the world of trading, it’s important to evaluate how comfortable you are with potential ups and downs in the market. Consider the possibility of temporary losses and how you would handle them. As a simple guideline, think about the “X3 rule.” Ask yourself if you would still be okay if you experienced three consecutive days of losses. Would you be able to maintain a clear mindset and make logical decisions, or would it throw you into a whirlwind of emotions? Understanding your risk tolerance and emotional resilience can help you make informed investment choices. 

Educating Yourself

Think you can quit school and start trading stocks? Think again my friend, because skipping classes in trading will only make you lose money. Educating yourself is paramount. Learn about stock market terminology, trading options, and research techniques to make informed decisions and maximize the potential of your investments. Don’t be a slacker!

Learning the Stock Market Terminology

Familiarize yourself with terms like “dividends,” “market capitalization,” and “price-to-earnings ratio.” Building a solid foundation of stock market vocabulary will enable you to navigate investment discussions, comprehend financial news, and make informed decisions about your trading.

Understanding Different Investment Options

It’s essential to grasp various investment options. Explore individual stocks, exchange-traded funds (ETFs), and index funds to diversify your portfolio. Only after you understand these options can you make informed choices based on your trading goals and risk tolerance.

Researching Companies and Industries

Conduct thorough research on companies and industries. Analyze financial statements, evaluate competitive advantages, and stay updated on industry trends. This knowledge empowers beginners to make informed investment decisions and identify potential opportunities for growth. They say knowledge is power, but in this case knowledge is money.

Investing vs. Trading

Do you know the difference between investing and trading? If you don’t – read on. If you do – read on, just in case.

Investing involves a long-term approach, aiming to build wealth gradually. Trading, on the other hand, focuses on short-term profit-taking through frequent buying and selling. On a practical level – investing can take years of waiting and hoping, while trading is an ongoing activity, with ups and downs happening on an hourly basis.

Swing Trading vs. Day Trading

Swing trading involves holding stocks for a few days to weeks, capitalizing on price fluctuations. Day trading involves buying and selling stocks on the same trading day. Which kind of trading is more suitable for you? Choose the strategy that aligns with your risk tolerance.

Ask yourself if you are more aggressive in your trading, if you like to be more active, or if you prefer to take it slow. How do you usually deal with losing and making money, and would you be okay if you lost X% of the funds in your account?

Day trading is for you if you like sitting in front of your computer and being active in your trading, making real-time decisions, challenging yourself with this style of trading, and swing is more subtle. It is suitable for you if you have less time for trading, maybe if you are engaged in your job, or if you want to take it easier.

Choosing the Right Brokerage Account

You should learn the different types of brokerage account available and carefully consider the fees and commissions involved. Also, remember that secret I told you about? Well it’s coming up…

Types of Brokerage Accounts

In the world of stocks, there are various types of brokerage accounts to suit different needs. Common options include individual brokerage accounts for personal trading, retirement accounts like IRAs for long-term investing, and margin accounts for borrowing funds to leverage investment opportunities.

Comparing Brokerage Platforms

When comparing brokerage platforms, it is crucial to consider factors such as the platform’s user interface, available research and analysis tools, customer support, trading fees, account minimums, and the range of investment options offered. A thorough evaluation of these features can help traders find a brokerage platform that aligns with their trading style and trading goals.

Your trading style will determine the broker or the platform you would like to use. For example, if you’re a scalper, you would look for a fast execution platform/broker and a right layout and hotkeys to be able to work efficiently. If you’re a short seller in your core, I’d suggest looking for a broker that can provide you with shortable stocks, locate quickly HTB (hard to borrow) and have low extra fees such as locating fees.

Considering Fees and Commissions

This is an important aspect when choosing a brokerage account. You should carefully examine the fee structure associated with the account, including trading commissions, account maintenance fees, and any additional charges. It’s essential to compare the fee schedules of different brokers to find a balance between competitive pricing and the services offered. Evaluating the impact of these fees on investment returns is crucial, as higher fees can eat into profits over time. Additionally, it’s worth considering if the broker offers commission-free trading for certain securities or has discounted rates for frequent traders.

Stock Broker Alternative – Stock Trading Prop Firm

As promised – we’re letting you in on a secret: As of 2022 there’s a new option for Forex Traders, a perfect solution for both new and experienced traders that lets you invest less money and gain more buying power than brokers can provide. This option is prop trading for Forex Traders. This model of trading that has been previously only available for Forex traders is now open to Forex Traders as well when opening an account with “Funded Trades Now For You” stock prop firm. You can invest as little as $97 for a trading account and get additional benefits such as courses, support, free use of advanced scanners and a trading app.

Trading Strategies for Beginners

Now that you’ve got yourself an account, let’s dwell on the 3 most important strategies for beginners trading stocks:

Dollar-Cost Averaging

Dollar-Cost Averaging is a forex trading strategy where taders invest a fixed amount regularly over time, regardless of market conditions. This approach reduces the impact of short-term market volatility and eliminates the need for trying to time the market.

This strategy is recomended for beginner traders because of its simplicity. The concept is that you buy the same asset every month regardless of its state and without deep analysis, as long as you believe that it will reach new highs in time. This strategy will usualy be applied on stocks with low beta (which means that they ‘re correlated with the market indices (companies like AAPL, AMD, etc.). Another option is to apply the DCA on the ETFs of the market such as QQQ (Nasdaq), SPY (S&P 500).

Strategy breakdown

In order to execute this strategy the best possible way, you should first look for an asset that has a potantiel to grow over time.
To find this asset you should look for positve indicators that will supoprt your decicion making such as:

• Company forecast sales / revenue
• New products
• Penetrating to new markets
• New C-level / board members

Pull backs

As you are probably aware, the market and basically any asset move in waves, and after a move to the upside, there will be a correction of the price, or as we call it, a pullback.
A classic pullback – a technical pullback, will be one that moves in the opposite direction of the previous move, but not more than 50% out of it.

The idea of this strategy is to look for a buy signal after the end of the correction and join the ‘bigger picture’ trend.

Beginner traders will find this type of strategy easy to identify and understand due to its clear price movements. As a result, they often choose to trade it during the initial months of their trading career.

Strategy breakdown

• Find a stock that moves in an up / down trend (make sure the trend is not over-extended)
• Wait until the price pulls back to the support/resistance level (the stronger the level the better. If you’re a day trader you should mark the levels from the 1H/4H charts, if you swing trading you should mark the levels from a 3 days / weekly chart)
• Once price holds support/resistance level look for a reversal candle/pattern/consolidation.
  *You can always use an indicator such as Exponential Moving Average to give you more indication that there are buyers on that support level.

Breakouts

It is probably the oldest type of strategy that has ever been used by active traders.

In this type of strategy, we will look to trade an asset that builds momentum towards a break of a new high (or short-sell it).
The crucial part in order to succeed in this type of strategy will be to find the right asset to trade on, an asset that shows strength and developing momentum (the heartbeat of the stock, the pace of the movement).

Strategy breakdown

• Find a stock that has been watched by many traders today / last few days/weeks (in most cases it will be major news that drives it)
• Look for a strong and fast move to the upside (the same can apply for short selling)
• After the strong move, you should see the price consolidate at the top 30% of the previous move
• Once it’s ready, the stock should breakthrough that consolidation and continue to climb for a new high/upper resistance level.

Developing a Long-Term Mindset

Developing a long-term mindset is super important for Forex Traders. It involves focusing on the fundamental value of investments, understanding that short-term market fluctuations are inevitable. Emphasizing patience, discipline, and a strategic approach enables traders to make informed decisions and ride out market volatility for potential long-term gains.

What I’m trying to say, is simply: look at the big picture. don’t let the bumps on the road slow you down, the destination is still the same destination. Here’s how to do that-

The Importance of Patience in Stock Trading

Be patient and stay patient. Patience is vital in forex trading as it allows traders to wait for the right opportunities and avoid impulsive decisions. It enables them to withstand market fluctuations, stick to their trading plan, and potentially benefit from long-term growth and higher returns.

Avoiding Emotional Decision-Making

Emotions like fear and greed can cloud judgment and lead to impulsive actions. By maintaining a rational mindset, traders can make disciplined decisions based on analysis and strategy, increasing the likelihood of long-term success.

I suggest meditating before the opening bell, this will help you moderate your mood, control your adrenaline, which will affect your decision making in real time. Another option is to visualize the trading session. This technique is used by pro traders for many years and also used in other performance-based fields. The idea is to close your eyes and visualize the trade the you are executing, feel what it will be like when you click on the mouse key, when you make a decision to take some profits out of the table, and how do you react if it will go against you. Once you see the full picture it will be much easier to make a logical decision and not let the emotional aspects trigger your behavior.

Staying Informed and Adapting to Market Conditions

Always be informed and adaptive to the market conditions. Regularly monitoring news, economic indicators, and company updates will help you, as a trader, make informed decisions. This adaptiveness allows for flexibility in adjusting strategies and maximizing potential opportunities for success.

Managing Risk

Managing risk is THE important skill to have in forex trading. I can’t stretch that enough, never underestimate risk management.  Implementing risk management strategies, such as setting stop-loss orders and diversifying the portfolio, helps protect against significant losses. By carefully assessing and mitigating risks, you can safeguard your capital, preserve long-term sustainability, and improve your chances of achieving consistent profitability. Risk management includes:

Setting Stop-Loss Orders

Setting stop-loss involves placing an order to automatically sell a stock if its price drops to a predetermined level. This strategy helps limit potential losses by allowing traders to exit positions before losses escalate. It adds discipline to trading and protects against unforeseen market downturns.

Understanding Market Volatility

Understanding market volatility in stocks involves being aware of price fluctuations and instability, allowing traders to adjust strategies, manage risk effectively, and make informed decisions in response to market conditions.

Monitoring and Adjusting Your Portfolio

Regularly reviewing the performance of your holdings, analyzing market trends, and considering changes in your investment goals can help identify opportunities and risks. By making adjustments to your portfolio, you can optimize your tradings and adapt to evolving market conditions. Remember, forex trading is not a “set and forget” game, watch your portfolio if you want it to thrive. Here are some ways to monitor you portfolio:

Tracking Performance and Making Adjustments

Utilizing Trading Journals Software

It’s 2023 and Forex Traders today have tools that weren’t available to traders before. Use these tools, it can only upgrade your trading. They offer real-time updates, performance analysis, and historical data on individual stocks and the overall portfolio. Portfolio tracking tools enable traders to make informed decisions, identify trends, and optimize their trading strategy for better risk management and potential profitability. Do yourself a favor and familiarize yourself with at least one of these tools.

Today there are 3 different software providers for trading journals:

• TraderSync
• TraderVue
• TradeZilla

Each one of them has its own unique features but they all serve the same purpose of analyzing your trades, giving you a better understanding of your trading stats and with the right analysis you will be able to find your edge as a trader in the market.

The prices for a monthly use of these programs range from $30 to $80, depending on the plan you choose.

* Now is a good time to let you know that in addition to the many benefits of a having a prop account at Funded Trades Now For You, with most plans you also get a free use of TraderSync!

Reviewing and Rebalancing Your Investments

Regularly assess your portfolio as it allows you to identify overexposed or underperforming assets. Rebalancing involves adjusting your allocation to maintain desired risk levels. This practice helps optimize your portfolio, align it with your trading goals, and adapt to changing market conditions for better long-term performance and profits.

Conclusion

Trading stocks is a long-term game (yes, even if you’re a day trader), and since we’re talking about a performance-based field, we want to continue to grow and improve over time.
To do that we must engage with learning and real-time experience, so we can gather trading data and analyze those results.
Your path to becoming a profitable trader will demand you to take it seriously.

I hope that after reading this you have more confidence about trading in stock with little money. I urge you to educate yourself, set clear goals, and use the right tools for the correct moves.

The post Invest in Stocks with Little Money appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

Introduction

We’ve been waiting and fantasizing about it for generations. Hundreds of sci-fi books, images, and movies have done nothing but boost our curiosity, eagerness, and impatience for a technological leap that wasn’t just new, useful, and exciting but also revolutionary.

The World is now so used to and reliant on the internet and the vast array of smartphones, smart TVs, smart homes, and smart everything to make the average American feel outsmarted by his own (smart) fridge. News of technological progress in science, medicine, engineering, entertainment, communication, and energy all feel new and important but maybe not quite revolutionary in the “BIG sense”.

Well, this might be different.
There is something about Generative AI that is seducing people and companies across the world into believing the technology to be absolutely all-changing.

In the following article, we’ll learn a bit more about Generative AI technology and we’ll find out:

• What it is
• Who is creating it, improving it, and investing the most in it
• The companies’ stocks that could represent the best opportunities for investing in AI technology.

Times have changed

I’m writing after growing up as a teenager in a generation that was confident that, by the year 2000, it would have seen people using electric flying cars to commute to work and humanoid robots doing all the house chores, babysitting the kids, going out for grocery shopping while also taking the dog for a walk and… (well… a lot of other things only a teenager could think of).

Yes, sure, some of the expectations have been let down so far (although definitely not for a lack of trying). Yet, it can hardly be denied that the 21st century is a highly technological one. Everyday life would seem almost impossible without the technology and gadgets that were not at all common just 30 years ago (if they even existed). Medicine, science, military, entertainment, information, education, energy, personal care,  design, architecture, manufacturing, food processing, construction, and sport have all been massively affected by technological discoveries, inventions, and applications. In fact, it would be impossible to name an industry or aspect of life that hasn’t.
No, I won’t see any flying cars if I look out of my window but if I look back instead, I can see and wonder at how far we’ve come.

A.I. (Artificial Intelligence)

For decades, ultra-sharp minds and well-founded companies have worked both in front and behind the scenes, and theirs is a success story that continues and will continue in the future.
We all learned to get used to the presence of AI technology in different aspects of our lives. Chatbots, for example, have become the norm in most internet websites’ help and support pages as well as on all search engines. It’s enough for us to start typing the beginning of a sentence, for the AI to be able not just to predict the rest of it but also to offer alternative possibilities.
This type of A.I. works by elaborating the always-growing amount of data entered by the programmers (just as any computer) added to the ability to “learn” new data by interacting with creators and users alike. A.I.

AI is able to learn and recognize our favorite music or movie genres based on what we usually listen to and watch. It’s also able to suggest other songs and movies that we might like. It learns which products and services we are most likely to be interested in and presents us (bombard us, more like) with specifically targeted advertisements.
One type of AI – the Conversational A.I. – is now very commonly used in gadgets such as Amazon’s Alexa, Apple’s Siri, and Google’s Google Assistant. It recognizes our voice and understands our words which allows it to comply with verbal instructions given to it.
But apart from the mundane, AI is also used to suggest probable diagnoses for patients in hospitals, to predict and anticipate enemies’ missiles’ trajectory on the battlefield, and also for things such as recommending the most appropriate spot to build a school in urban architecture.
The applications for AI are, in other words, countless and companies are still discovering and creating even more.

It is the ability to learn from new interactions and to use the information learned that, only a few years ago, made AI technology new and different and that allowed it to be incorporated in pretty much every aspect, industry, and sector of the market.

Generative AI though… is on a new level altogether!

What is Generative AI?

Generative AI is the newest leap in AI technology.
Where AI has the incredible ability to “improve” itself and its original programming through learning, Generative AI is capable of generating new data by recognizing patterns in existing data. In other words, Generative AI doesn’t just learn new data, it creates it.

In November last year, Open AI, one of the major players in the AI technology market, launched its newest (and world-first) Generative AI algorithm, ChatGPT, and the World felt immediately a little different.

It was left to ChatGPT – the AI – to introduce itself and explain its potential applications to the public and this is what it said of itself:

“Ready to take your creativity to the next level? Look no further than generative AI! This nifty form of machine learning allows computers to generate all sorts of new and exciting content, from music and art to entire virtual worlds. And it’s not just for fun—generative AI has plenty of practical uses too, like creating new product designs and optimizing business processes. So why wait? Unleash the power of generative AI and see what amazing creations you can come up with!”

Generative AI algorithms are now able to create original music and painting. They are able to artistically illustrate things described to them verbally. They can write novels and make movies. NetDragon, a Chinese video game firm has even made a Generative AI called Tang-Yu its CEO with the task of supporting decision-making across the company (and by the way, the Company share price went to the roof as soon as the news was released).

There is certainly a great deal of speculation about the future effect of Generative AI in the labor market and creative arts but we shall leave that discussion for another day. For now, we’ll focus on making the best of the investment and trading opportunities that Gerative AI technology can offer to us today.

Trading and Investing in AI technology

Currently, it is OpenAI that sits comfortably at the top of the artificial intelligence technology chain. Its InstructGTP, ChatGTP, and Dall- E2 algorithms have completely changed the rules of the game and the pace of the race.

OpenAI is an American artificial intelligence research laboratory founded in 2015 by Elon Musk, Ilia Sutskever, Greg Brockman, and Sam Altman with the declared intention of promoting and developing a friendly AI. It is a private company with no stock traded on the open market. It’s not possible to invest in OpenAI but a possible future IPO is definitely something to look forward to.

Not to worry though, for traders and investors interested in investing in ai technology, the opportunities are plenty for there are a number of other large companies that are working in and are heavily invested in AI.

These, for example, are all well-known companies in the US, that are running and investing in new Generative AI technologies (…whilst also doing what they are so well known for, of course):

Microsoft

Microsoft is directly involved in a partnership with OpenAI itself; a partnership in which it invested billions of dollars.
The company has helped OpenAI develop ChatGPT and has already incorporated AI into its search engine Bing, its internet browser Edge, and its flagship-software Microsoft Office 365.

Google

In 2022, Google’s Generative AI algorithm, LaMDA LLM, went as far as to convince an engineer of being sentient. He then went and exposed the fact online, naturally, creating much controversy and debate.
Google Cloud has also launched Generative AI products that offer its customers the ability to create GenApps (Generative AI applications).

Amazon

Alexa and Amazon Lex have given testimony to Amazon’s interest (and huge investment) in AI and now, eager not to be left behind in the Generative AI technology race, it has partnered with Hugging Face, a startup working on creating a worthy ChatGpt’s rival.

Meta

Meta has been directly working and investing in AI for at least 10 years with its attention more focused on finding possible applications than on creating and improving the technology itself. However, Meta did create LLaMA, a new set of foundation language models for AI.

XAI Corp

After co-founding OpenAI, Elon Musk has decided to found a new startup called XAI Corp with the primary intention of creating a new alternative to Chat GPT after complaining that AI technology is being programmed to be overly politically correct.

Conclusion

Ever since OpenAI’s ChatGpt was released, it seems, any company with AI on either its name or its mission statement, has seen its stock rise.

Some traders are already talking about a dot-com-style bubble. Some are looking forward to what they call “a once-in-a-generation opportunity”. Whatever you decide to do and whatever direction you decide to take, remember to do your own research first.

May the odds be in your favor.

Hope this helps.

Join Funded Trades Now For You now to trade the best ai technology involved stocks

The post Generative A.I. – The Future Is Now appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

Danny G, 50 years old, From the US.

Danny has successfully passed our Extra Trading Capital program and is now one of TTP’s funded traders, or as we call it, “Stock Star.”

Every time he reaches 5 consecutive winning days, we will boost his buying power and max exposure.

We spoke with Danny about his trading plan, insights, and lessons gained while trading in the markets and our platform as a funded trader.

Watch The Interview With Danny

Tell us a little bit about yourself

Married w 2 kids. Grew up with the idea that I always wanted to be self-employed. After starting many small businesses, I found trading. The idea of being able to master a high-income skill and make this my business is what drives me. To be able to run a home-based business with unlimited income potential with no overhead, employees, inventory, etc. I enjoy water sports and golfing. I would love to be able to share this high-income skill with as many people as possible, especially my friends, family, and children.

How long have you been trading?

I have been studying for 4 to 10 hours per day for the past 14 months. This includes courses, reading, podcasts, and screen time. I am a scalper.

Briefly describe your Trading Plan and how it contributes to your success.

My trading plan incorporates the structure of the chart as the most important foundation. Demand and supply zones and key levels. I am looking at channels, ranges, and market equilibrium.I have a strategy for ranges, channels, and trends.

Share with us a challenge you faced in your trading career and how you overcame it

My biggest challenge has been risk management. I love your platform as it has fixed rules in place to close trades when a trade loss limit is reached and also when daily loss limits are reached. In my opinion, the 2 biggest rules that cause traders to lose and blow accounts are.

How did you adjust risk management to your trading personality?

I am continually improving on closing positions faster when the trade goes against me—allowing me to focus on the next trade, which may be on the same setup if still valid.

Describe a key moment in your trading career

My biggest moments were when I blew up an account. The drive inside me knows that as long as I never quit, I will become a master day trader.Another key moment has been meeting my 2 mentors Navin from Urban forex and the GOAT Eric from Spy Day Trading, who regularly has 7 figure days trading SPY. Navin taught me my foundation. The logic of trading, The concept of the Big Boys, buyers/sellers territoryEric teaches me structure, equilibrium, and how big boys and professional traders never lose money trading… they use various options strategies and hedging to protect themselves.

How long did it take for you to become a consistent trader, and what aspects did you change for that?

It took me 1 year.

What is your mental/psychological strength, and how did you develop it

Aggression. As a former poker player, I learned not to focus on the dollar amount but to recognize when the odds are in my favor and when to step on the gas, which is why I am a scalper. Aggressive traders can not go for home runs. They must get in and out as structure demands. Risk vs. reward. I have been developing since I was in elementary school, selling candy door to door, then watching my father as a small business owner, then the biggest is failing over and over.

What was your strategy for successfully passing the evaluation phase?

In 1 word structure. If I am not mistaken, the days after the bank collapse offered a great opportunity for a retracement trade, as this type of news generally is an overreaction. By observing structure, and levels, I was able to be ready by watching the structure develop and price action to find its support level.

How is trading for Funded Trades Now For You different from trading by yourself?

The biggest is that your service has the capital and the strict risk management rules in place that are not moveable. They require the trader to ahere to the rules. I believe if each trader who is by themselves had these rules in place without the ability to move stop loss or daily losses, there would be so many more successful traders.

What would you recommend to someone who is just starting with us?

I absolutely would recommend traders to your service. However, I believe they must 1st learn the logic of trading and structure, ranges, and equilibrium.

Share online resources that were/are significant in your trading development. Names and links are appreciated

Navin @ Urban Forex and Eric @ Spy Day Trading. Both on youtu

Would you like to share anything else with us?

Thank you, TTP.

The post Because of FTNFU Risk Management I’m Now A $160K Funded Trader appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

Let’s meet Olga R. From Germany

Olga has successfully passed our Extra Trading Capital program and is now one of FTNFU’s funded traders, or as we call it, “Stock Star.” and managing $160,000 from the pool.
Every time he reaches 5 consecutive winning days, we will boost his buying power and max exposure.
We spoke with Olga about his trading plan, insights, and lessons gained while trading in the markets and our platform as a funded trader.

Watch The Interview With Olga

An insight into Olga’s approach to trading

One of the key points that Olga emphasizes is the importance of protecting one’s capital. She suggests that new traders should not go too big and instead focus on making small wins that can be used to generate larger profits over time. This approach allows traders to gradually build their portfolio and minimize the risk of significant losses.

Olga also discusses her background as a trader and how she developed her trading strategies. She started with penny stocks and gradually moved up to blue chip stocks and other trading tactics until she found her own style that was profitable for her. She also emphasizes the importance of psychology in trading and how she has been learning about trading psychology from her mentor.

Olga’s strategy for finding the right stocks

Olga explains that she uses trade ideas and concentrates on top gainers and losers to get an overview of the market. She also uses level 2 data from a platform called “DAS Trader” to understand when a stock is going on halt and when it is time to enter or exit a trade.

Olga notes that her strategy typically focuses on penny stocks because they offer more opportunities for gains and her approach to trading these stocks involves monitoring the first “halt” that goes up or down and entering the trade based on that movement.

Discipline, patience, and risk management

Overall, Olga’s experience and advice highlight the importance of discipline, patience, and risk management in trading. Traders who are just starting out should focus on protecting their capital and gradually building their portfolio over time. Developing a solid trading strategy takes time and experimentation, and traders should be prepared to learn from their mistakes and make adjustments as necessary.

Have a mentor by your side

The conversation also emphasizes the importance of having a mentor or partner who can provide guidance and support. Olga has been able to learn from her mentor and review her trades together to identify what went well and what didn’t. This kind of feedback and reflection is critical for traders to improve and become more successful over time.

In summary

The video provides valuable insights into the world of trading and highlights the importance of discipline, patience, and risk management for traders who are just starting out. Olga’s experience and advice offer a roadmap for new traders to follow as they navigate the complex and challenging world of trading.

The post Olga is Managing a $160,000 Trading Halt Strategy appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

WHY, OH WHY WOULD YOU WANT TO DO THAT??
Here are 5 GREAT reasons why you should STOP trading with a broker!

Pro Traders with Prop Trading Firms

If you are as passionate about trading as we are, you can’t help but notice how impressively fast the Prop Trading industry has evolved and how fast it has come. In the last few years alone, Trading Prop Firms competing in their continuous search for talent have come to offer increasingly higher trading capital, lower barriers to entry and a diversified number of programs that can accommodate most trading styles and needs. Then, as if it still wasn’t enough, they have gone and topped it all up with outstanding quality tutorials in the form of blogs, videos, interviews and much more.

Now, since most brokers do not offer any of that, one could say that any competition with Prop firms would be lost before it even starts and that Retail Brokers have become obsolete. However, that wouldn’t be completely true. The best brokers often offer a free demo account which is great to learn and practice before getting serious and joining a Prop Trading Firm but… yes, apart from that, Retail Brokers actually have become pretty much obsolete.
Let’s see why, shall we?

5 Reasons why Prop Firms are so much better than Retail Brokers.

The Trading Capital

A.K.A. “the money”!
That’s right – the money – we’ll start by going straight to the Brokers’ jugular with this one.

Once the decision to invest in themselves and improve their lives is made, retail traders are able to gain at least a basic level of trading knowledge and education from the insane quantity of online content and material. However, funding an account with enough money to make it worth trading is not always as easy and as immediate.
Prop Firms came, saw and solved the problem.

Nowadays, just a few hundred dollars of investment on your part can give you access to trading capitals 100s times larger and more. Literally!
If you trade Forex, you’ll know that once you passed The5ers’ challenge, for example, you’ll have effectively transformed your $95 investment into a $100K trading account! Whilst if you are more of a stock trader, you’ll know that you could enjoy virtually uncapped purchasing power and up to $3900 risk allowance for your $475 initial investment and trade with more than $160K of buying power whenBECK you trade for .

The best thing about Prop Firms’ trading capital is that it increases much more easily and faster than it would otherwise.
Let’s put it this way: a 10% gain on your standard Retail Broker account would mean your trading account has now grown by 10%. And that, by all means, is not bad at all. That is until you realize that a 10% gain with the right Prop Firm would probably mean that your trading account has just doubled and… you know, a hundred per cent is better than 10.

The Risk

Unfortunately, it’s a known fact that a great number of aspiring retail traders rely on their emotions and gut feelings as part of their trading strategy – with unsurprisingly catastrophic consequences.
Part of the emotional turmoil that beginning traders go through is due to the stress of having their own money at risk. Then again, the mere possibility of losing a large sum of one’s own money would be sufficient reason to cause stress to even the more experienced traders.

So… what if, in addition to a super large trading capital and a fair share of your trading profit, you could also have no risk to your own money, no legal liabilities and none of the downside if things should go sour?

Well, that’s exactly one of the advantages that trading for a Prop Trading Firm presents and one heck of a reason why it’s much better than going at it solo with a Retail Broker.

The Discipline

As reasons go, this is another big one.

Discipline – or better, the lack of it – is considered to be the primary reason why beginning Retail Traders lose money and blow up their accounts. For Prop Traders it’s not different. It requires discipline, focus, commitment and consistency to be accepted and welcomed as a funded trader by a Prop Firm you’ll need all four.

Through the implementation of a few simple and clear trading rules, Prop Firms also ensure that their traders stick to that same discipline throughout their trading experience and this, in turn, translates to more traders remaining consistently profitable and, eventually, becoming successful.
This could probably explain why statistics show a higher rate of success among Prop Traders than among retail ones.

Prop Firms Are on Your Side

It is true, some brokers do offer some tutorial content which is free and accessible to everyone. That’s better than nothing, sure, but it’s only really basic stuff and mainly focused on bringing more customers in. There is no added value when compared to everything else that can be found online for free. And… there is a reason for that.

Retail Brokers do not care if you are consistent and successful or not; in fact – let’s face it – they don’t really care if any of their customers make money or lose. And why should they care? The nature of their business means brokers earn commissions on your trades whether they are winning or losing once. I should imagine that a retail broker would earn very similar commissions whether you make a million dollars or you lose it.

On the other hand, Prop Firms earn a share of their traders’ profit and are, therefore, more motivated to root for your success, offer more prompt customer support, better tips & advice and great quality educational content. And that, of course, is what everybody likes.

The Community

Retail Trading is mostly a “solo game” and can be a lonely experience sometimes. Most retail traders work from home or small offices and, more often than not, they are alone and isolated whilst doing so.

Trading for a Prop Firm also means being part of a closely knitted trading community that shares opinions, advice and ideas through social media discussion groups and periodic video conferences and interviews.
Prop Traders can confront their ideas with their peers and learn from one another while progressing towards the next “doubling” of their accounts.

In Conclusion…

Practicing your strategy on a Retail Broker’s demo account should always be part of your learning process and opening an account with a limited size capital can improve your confidence with real money management that will surely help you when the figures become significantly higher. But the advantages that Prop Firms can offer are unparalleled and Retail brokers have long stopped being a match.

Under all aspects considered, it is clear that Prop Firms are by far the best option to maximize capital, profit and experience while also accelerating one’s trading career process.

Learn about the fundemental aspect of trading in our fundamentals category

The post Prop Traders Vs Broker Traders appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

Alexander G., 23 years old, From the US.

Alexander has successfully passed our Super Trading Capital program and is now one of TTP’s funded traders, or as we call it, “Stock Star.”

Every time he reaches 5 consecutive winning days, we will boost his buying power and max exposure.

We spoke with Alexander about his trading plan, insights, and lessons gained while trading in the markets and our platform as a funded trader.

Watch The Interview With Alexander

Tell us a little bit about yourself

This is an amazing opportunity. Thank you so much for it. My name is Alex, I’m an artist at heart, but I love day trading. I also love the gym and will go 5 to 6 days a week.

How long have you been trading?

I have been a Part-Time Trader for 5 years.

Briefly describe your Trading Plan and how it contributes to your success

I use a style of trading called moment trading. I look for stocks with a good volume between the 1 to 10 dollar range.

Share with us a challenge you faced in your trading career and how you overcame it.

Trading out of boredom and overcoming FOMO was a big problem for me missing out. However, I’m overcoming it by being more patient and only trading setups I really like.

How did you adjust risk management to your trading personality?

I’ll use low position size on trades where I’m not extremely confident in

Describe a key moment in your trading career

I lost my job back in august of 2022 due to it shutting down. I decided then that I wanted to take trading seriously and full-time. So on my first day, I increased my account size by around 10%, and the next day I did it again. I knew then it was what I wanted to do.

How long did it take for you to become a consistent trader, and what aspects did you change for that?

I started becoming consistent trading around the end of 2022. After that, I had to lower my position sizes and adjust to the bear market.

What is your mental/psychological strength, and how did you develop it

I developed my mental and emotional strength through discipline, support groups, and faith in a higher power.

What was your strategy for successfully passing the evaluation phase?

I looked for stocks gapping up with a solid volume and would buy the pullbacks and sell on the way up.

How is trading for Funded Trades Now For You different from trading by yourself?

I used to trade pre-market and would love to have that opportunity in the future with Funded Trades Now For You.

What would you recommend to someone who is just starting with us?

Take it seriously and put in your best effort every day.

Share online resources that were/are significant in your trading development. Names and links are appreciated.

Profit Chasers https://www.profitchasersacademy.net/

Would you like to share anything else with us?

I’m so glad I found you guys, and I’m very excited to be funded.

The post Alexander Got Funded Trading Penny Stocks appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

Ricardo. S, From Colombia.

Ricardo has successfully passed our Super Trading Capital program and is now a FTNFU funded trader, or as we call it, “Stock Star.”

Every time he reaches 5 consecutive winning days, we will boost his buying power and max exposure.

We spoke with Ricardo about his trading plan, insights, and lessons gained while trading in the markets and our platform as a funded trader.

Ricardo told us about his journey as a trader and how he quickly became funded in just 2 weeks, which is faster than most traders. He emphasized the importance of consistency and patience in finding a strategy that works and adapting to changing markets. Ricardo also mentioned that he focused on day trading and looked for reversal patterns in the market. He advises other traders to be patient and consistent in their approach and to work on finding a strategy that works for them over time.

Another thing Ricardo emphasized was the importance of setting stop-losses and knowing how much you are willing to lose, rather than just thinking about how much you can win. He also mentioned that the fact that traders are from all over the world is fun, as there are traders from countries like Australia, Indonesia, Thailand, South Africa, South America, US and Europe, who work in the same field. He then also talked about the development of a system of giving tips and guidelines to the traders who have become funded traders to help the other traders reach their goal and become funded traders.

Watch The Interview With Ricardo – A FTNFU Funded Trader

If you want to prepare yourself in the best possible way for intraday trading, check out our pre-market category

The post Ricardo Reveals The Strategy That Made Him A FTNFU Funded Trader appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

It is that special and magical time of the year that traders look forward to with anticipation and excitement.
For much of the last century, stock and – even more so – indices have got into the habit of raising during the days around Christmas and traders, naturally, have got into the habit of making the best out of it all. But is Santa Claus Rally still a thing nowadays and will Santa come to Town this year?
To find out, we would need to re-examine price movements in the past and take a look at some numbers. Good job we are here to do just that.
Right, let’s get to it then!

FIRST THINGS FIRST: When do Santa Clause rallies happen and what are they exactly?

Historically speaking, during the days around Christmas, stock prices seem to increase more often than not and, when they do, they tend to increase way more than they usually do.
In view of this, Traders are known to open positions in advance hoping to be rewarded with the kind of returns that can make their Xmas that little extra special.

With regards to timing, there are different schools of thought on when each Santa Claus Rally should be expected. While a majority of traders would confidently point to the last five trading days preceding Christmas and the two days that follow it, many others would swear that the ‘special week of gifts’  is actually between Xmas and New Year’s eve.  Of course, we also need to consider that, contrary to popular belief, Santa’s sleigh cannot cross the Atlantic in just one night and this might be why some of the European traders believe that their time to shine doesn’t arrive until the first trading week of each new year.

All considered, it is undeniable that New York’s Wall Street is the stock market center of the World and it’s only fitting for the US market to remain the focus of the rest of this article as well as analyzing only the trading days before New Year’s fireworks and champagne.

Usually, the week after Christmas sees market makers and most institutional traders either on vacation or packing their bags for it. This is the only time of the year when retail traders are kings and queens and have the market virtually all for themself.
Volume is lower than it normally is but retail trading alone can still create volatility and – without wolves of Wall Street there to stuff their own turkeys  – opportunities are plentiful and up for grabs.
With so many “bells jingling all the way”, lights, festive decorations and wild magical reindeer roaming the streets, it’s no wonder retail traders end up causing prices to rally. They – like everybody else – feel in good spirits, generally happier and more optimistic and hopeful while wondering what the new year might bring. Also – one might say – after spending a whole day in a room with their entire extended family, it’s no wonder very few traders wait until the 1st of January to find out. No, sir. If it is a weekday, the 26th of December marks the beginning of what many consider to be Santa Clause Rally’s week.
But… is it?

The true Santa Claus Rally

Records show that despite frequent rises in prices between the 26th of December and the 2nd of January, the market does feel the absence of volume and of the huge institutional capital. There is money to be made, sure,  but, although frequent, earning opportunities are mostly limited in size. We are talking about price movements, in other words, that might just be enough to “make spirits bright” and maybe – just maybe – even enough to afford that “one-horse open sleigh” but… almost certainly, not the horse too.

Records also show that for the horse – and possibly much more – real opportunities exist when institutional money is at play. It seems only logical then that the five days before (when Institution traders are still in the market) and the first two days after Xmas (when retail sentiment creates support and further pushes prices up) often see bigger movement and bigger returns than the week that follows it. This is why the vast majority of traders have been calling this the “Santa Clause Rally” since way before retail trading could even exist.

No one is absolutely clear on what the reasons for these festive rallies really are but it is generally thought that the spectrum of possibilities goes from a general sensation of optimism to tax-related management operations to end-of-year bonuses re-invested in the market.

Be as it may, the critical questions are:

Is the Santa Clause Rally an event reliable enough to base a strategy on it? And are we going to have one this year?

That’s right! Is Santa real and is he coming to town? Yes or no? This, ultimately is what it all comes down to and to answer that, time has come to look at some numbers.

Since 1928, the S&P 500 has provided an average daily R.O.I. of around 0.2%. During the same period, however, it has given a whopping average daily R.O.I. of around 0.24% during Santa Clause Rally’s days (the last five days before Xmas and the first two days after).
It might not sound like much at first but to put it into context…
$10 million invested in the S&P500 during any average 7-day period would have made -on average – $14,000 in those seven days whilst the same investment during any 7-day Santa Clause Rally period would have made, on average, $170,000.
That’s a difference of £156,000 in just 7 days. Now, that’s impressive!
As far as reliability goes, since 1921, Santa Clause rallies have brought positive returns 78% of the time so… wow, looks like Santa might exist, after all, right?

Well, here’s another set of numbers we should look at.

If we take into consideration only the last twenty years, the numbers seem to paint a slightly different picture.

The average return for the entire Santa Claus Rally 7-day period dropped from 1.68% to 0.95% while the average return of any other week has increased during the same period making any difference marginal.
Out of the last twenty years, the Santa Claus rallies have provided positive returns 13 times, negative returns 5 times and no change twice.
Positive returns, however, averaged +1.58%, whilst negative ones averaged around -3.28%. The highest gain for the 7-day period has been a return of 5.4% in 2021 and the biggest loss was -10.7% in 2008.
So… yeah, there is that.

Conclusion

Yes, sure, I know; that last part sort of ruined it a bit. It was scary and traumatic enough the first time we had to hear that Santa Claus didn’t really exist. And now this. Seriously, you couldn’t make it up!

Given the figures, personally, I would stand clear of recommending to anyone changing and adapting their strategy – even less so, creating a new one – based on a Santa Claus Rally.  Data from the most recent years seem to suggest minimal gains at best and, at worst, large losses maybe also aided by a hint of market manipulation from the last few smart money traders still in the office.

Well, I don’t know who is going to tell all the children now but, in light of all the evidence presented, it seems safe to me to assume that Santa Claus has stopped caring and that he has either taken a very long break or thrown in the towel.

Everyone will come to their own conclusion. It is only right that it should be so and for all intents and purposes,  that is what this is; just the author’s conclusion and not much more.

As always, trade only what you can afford to trade, and place money and risk management at the center of what you do.
Hope this helps and… yeah, good luck with the kids.

The post It’s almost “Santa Claus Rally” Time! appeared first on Funded Trades Now For You - Stock Trading Prop Firm.

We spoke with Arshad about his trading plan, insights, and lessons gained while trading in the markets and our platform as a funded trader.

Watch The Interview With Arshad

• Tell us a little bit about you.
  I have been learning to trade the markets for the last 15 years, and it is my passion to trade all types of forex, stocks, and other commodities. I always work based on technical analysis Only. I don’t look for any news or other fundamentals.
  

• How long have you been trading?
  I have been a Part-Time Trader for 15 years.
  

• Briefly describe your Trading Plan and how it contributes to your success.
  I spend maximum time reading the charts technically, and I believe that once one can read the signal or pattern, then comes position size or stop loss limit. Occasionally I take heavy positions when a signal or pattern is formed on a support or resistance. The rest of the time, waiting with patience is the best option for me.
  

• Share with us a challenge you faced in your trading career and how you overcame it.
  Trading the forex and Stocks is a challenge every day. To overcome everyday challenges in trading, one must be flexible and remain ready to change one’s mind and trading setup along with the dynamics of the market. That is the only way to be successful.
  

• How did you adjust risk management to your trading personality?
  Frankly speaking, I always look for better signals. For me, managing risk in trading is a secondary issue, and one must focus on the market dynamics and then manage risk accordingly.
  

• Describe a key moment in your trading career.
  In the life of a trader, every moment is a thrill. We are always in a state of learning, and the best learning we get is when we make a LOSS, so for me, Losses are a way to go forward. I think the key moment that is worth mentioning was when I started trading for a prop firm, The 5ers. Since these people give an idea of how to further strengthen one’s skills of managing risk and position size, I can recall this as the best thing.
  

• How long did it take for you to become a consistent trader, and what aspects did you change for that?
  Still, I think I am in the process of learning. Mistakes happen in trading on a daily basis, but instead of getting frustrated, one must focus on learning from those mistakes and try to manage those mistakes in a way so that win trades can overcome the losses made. To make a positive change for consistency, I changed my position sizing a lot.
  

• What is your mental/psychological strength, and how did you develop it
  To bear the pressure and frustration of trading and to trade with courage is my strength, and I developed this through frequent past years losses.
  

• What was your strategy for successfully passing the evaluation phase?
  Pre-open Market preparation is the best thing to start with. One must watch the charts of 8-10 Stocks of one’s choice, make a list of the potential trading stocks for the day, decide the levels to go for Long/Short, and give it a go.

• How is trading for Funded Trades Now For You different from trading by yourself?
  This is a fact without exaggeration if someone is seriously interested in building up a trading career. I think the supportive staff at Funded Trades Now For You and the SLL and DLL are definitely a gift for that learner since these checks and balances help to remain disciplined and focused on the profit target. The best part I liked is the penalty imposed of USD 50 if someone makes a loss of DLL.
  

• What would you recommend to someone who is just starting with us?
  One must start slow, avail the 30% of DLL in such a way to make 2 or 3 winning trades, and then that profit helps to further pace up the profit target since the added amount of profit raises the DLL, which helps in taking more risk with confidence.
  

• Share online resources that were/are significant in your trading development. Names and links are appreciated.
  A number of articles on different websites and a number of webinars conducted by different organizations helped me in developing a trader. I still think I am in the process of learning. https://www.learntotradethemarket.com/ I started my learning career from this site, and I am still a Lifetime member of this website and the coursework shared by Mr. Nial Fuller.
  

The post Evaluation Passed in 7 days – Arshad is The TTP’s Fastest Trader to Get Funded appeared first on Funded Trades Now For You - Stock Trading Prop Firm.