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Huge Mistakes Made When Choosing a Day Trading System | Part Four

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Mistake: Paying for Trading Seminars, Books & Videos

Day Trading Seminars Can Be Misleading

Above all, if you learn nothing else from reading this chapter, please remember the following fact:

In most cases, day trading seminars are the equivalent to really expensive (albeit live-action) YouTube videos.

What this means for traders is that the same information and strategies being used and taught in most of these seminars can be found, for free, on common sites like YouTube.

In a recent experience, I came across a seminar which charged $3,600 for a six-hour introduction class. Further research showed the class’ curriculum covering general market facts alone.

Students attending class received really fancy-looking binders, a catered lunch and the smug feeling that only comes from knowing “the secret.”

What these students did not receive was any information whatsoever on how to trade.

There’s a reason these seminars have the negative reputation that they do. The entire seminar model itself is basically ideal for scammers and should immediately trigger multiple red flags.

This model includes three basic steps:

  1. Show up in a town for a couple days.

  2. Collect lots and lots of money.

  3. High-tail it out of town with no real way for unhappy customers to contact you.

Can you think of a better scam?

A good way to sniff out these scams is to remember the following:

A company’s pricing model directly reflects how it intends on maintaining its future relationship with you.

For example, if a company charges you everything up front, chances are there’s a high amount of risk involved in the product. If the charges are incurred on a monthly basis, chances are the company is banking on you being satisfied with the product.

Trading educators that charge monthly fees generally offer a higher level of support and concern for your success. To put it simply, if you’re not successful, they stop making money.

Tip: Be cautious of large up-front costs.

You’re Clear on Day Trading Seminars, But What About Books?

Books remain a great, inexpensive educational resource for those looking to learn about the markets.

Unfortunately, if a trader wants to actually make money in the market, it requires a lot more (even for the most avid readers) than simply reading some material to get started.

Another issue with these books is how quickly they become outdated. With trading platforms and software evolving so rapidly in recent years, books on a specific subject become useless if more than two years old.

Tip: Avoid books surrounding a specific trade strategy that are more than two years old.

In my experience, I’ve found the most beneficial reading material for traders often has nothing to do with the actual act of making trades. Instead, books dealing with psychology and mental readiness in trading have made the most difference in my trading.

Many traders believe this aspect of trading to be irrelevant. In contrast, I believe it to the driving factor behind 75% of your trading success.

Tip: Not a big reader? Listen to the audio version in the car or at the office.

We’ve Covered Day Trading Seminars and Books. What About Video?

It’s easy to see technological advances in education, television and digital media becoming more and more interactive by the day. Due to this, videos are becoming a faster, more efficient way to consume trading education material.

However, prior warnings in this chapter still apply.

This may seem obvious, but if you come across a system that doesn’t include education videos in its curriculum, it’s likely outdated and faulty. This is clear indication of the system as a whole.

As we previously discussed, there’s more free trading education videos on YouTube and other streaming sites than you can imagine. But know the information in these locations can be repetitive, and even incorrect at times.

If you’re diligent in your research, it will quickly become clear to you which video sources are reliable.

Day Trade FEED’s Picks for Day Trading Seminars

Here at Day Trade FEED, we have a specific way of choosing which seminars have the correct information to incorporate into our day trading system. After years of research and trial/error, we’ve found some really great seminars that provided information that would fit perfectly into our trading system. We determine this by making sure the information is a good fit for traders using Kevin Jones Day Trading Indicators.

Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

We were also careful to make sure these seminars were safe, reliable and properly vetted prior to receiving our endorsement. To receive a list of Day Trade FEED’s picks for Quality Day Trading Seminars, contact us or fill out the form below.

This article is only part two in a series aimed at helping day traders understand what mistakes to avoid.

First Mistake: No Ongoing Support/Education

Second Mistake: No Specific Way To Replicate Results

Third Mistake: Repeating Key Entry and Exit Strategies

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    DISCLOSURE: While these methods may have worked in the past, past results are not necessarily indicative of future results. While there is a potential for profits, there is also a risk of loss. A loss incurred in connection with trading foreign exchange currency contracts can be significant. Carefully consider whether such trading is suitable for you in light of your financial condition since all speculative trading is inherently risky and should only be undertaken by individuals with adequate risk capital.

    Huge Mistakes Made When Choosing a Day Trading System | Part Three

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    Mistake: Repeating Day Trading Entry and Exit Strategy Mistakes

    Three Questions to Remember When Choosing a Day Trading Entry and Exit Strategy

    While researching trading systems, many traders run into different strategies that are obviously going to fail.

    I recently had an experience with an education company claiming to have made hundreds of thousands of dollar with it’s own proprietary trading system. For a fee, the company was willing to teach me this strategy via their own education system.

    While looking into this company, I made sure to remember the following questions:

    1. If someone decides to make a trade, what do they stand to gain?

    2. What do they stand to lose?

    3. If a company was fishing for a good testimonial, but couldn’t actually deliver on its low-risk guarantees, could it inflate results to mislead consumers?

    A Bad Day Trading Entry and Exit Strategy Can Mislead You

    One of the main ways a company can inflate results is through what is called a hedge. A hedge is an opposing trade of equal value that offsets any profits or losses accrued by a previous trade.

    So, if a trader sets up two accounts, places a buying trade with one and a selling trade of equal value with the other, they are hedging. The profits of the first account will even out the losses of the other and only the winning trades are displayed.

    This is only one of the many ways these “educators” are enticing customers to use their programs.

    How to Spot a Faulty Day Trading Entry and Exit Strategy

    Remember that if you only see a couple of trades on a statement, it’s likely faulty information.

    Now, let’s say you see a statement with over 100 profitable trades. Your first instinct may be to trust the system. However, it’s important to make sure a stop loss was in place before going with this instinct.

    Traders with millions in their account are able to trade the market on the smallest level with no stop loss. This means they are able to hold onto their trade regardless of which way the market swings.

    This isn’t how a typical trader attacks the market, so why would you want a system that isn’t tailored to fit realistic trading parameters? In these systems that don’t use a stop loss, one bad trade can outweigh more than the 100 good ones and wipe out an entire account.

    The typical trader would have a stop loss set and an exit strategy in place. Make sure these are part of your trading system if you haven’t already.

    Day Trading Entry and Exit Strategy Red Flag

    There is no such thing as a perfect trading system. It is impossible to trade without taking at least a few losses here and there.

    Another issue that has been seen is the lack of continuing education surrounding margin. Some education systems even purposely leave margin curriculum all together. This allows the company to show flexibility in their system when a trader is margined out and is looking for someone to blame.

    Margin requirements should be clearly and thoroughly taught before the trader experiences it with a loss.

    A good way to spot margin issues with a trading system is to make sure margin requirements match up with stop loss positions. If the margin would kick a trader out far before the stop loss, it  may simply just be an oversight by the educator. However, if they get this basic step wrong, what other compromising practices will they teach you?

    What to Look for When Choosing a Day Trading Entry and Exit Strategy

    The final topic to be discussed relating to entries and exits is how long or short to make them.

    When identifying an exit strategy, remember that almost every strategy has many variables going into the equation. This can make it hard to plan ahead, which is why some educators determine their exit strategy at random.

    For new traders, it’s important to focus on the winner-to-loser ratio instead of the length. If this ratio is profitable, it shows the system works regardless of its exit strategy.

    Day Trading Entry and Exit Strategy: The X Factor

    At a certain point during their day trading education, each beginning trader finds themselves at a crossroads.The choice facing them? Whether to choose a scalping method (short exits and stops) or a long term strategy (long exits and stops).

    The main thing to consider when making this decision is whether you’re financially capable of practicing this method in your trading. Many think scalping involves less financial commitment than long term trading. However, the truth is the exact opposite!

    Personally, we suggest trading short term systems. The uncertainty of world economics, along with unsteady market conditions in recent years make scalping the safer choice between the two. This is due to the limited amount of time spent in the market as opposed to long term trading.

    Day Trade FEED’s Day Trading Entry and Exit Strategy

    Here at Day Trade FEED, we have a specific way of choosing which entry and exit strategy to use in our day trading system. After years of research and trial/error, we’ve come up with a great way of determining this and adopted it into our trading system. We determine this using Kevin Jones Day Trading Indicators.

    Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

    If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

    This article is only part two in a series aimed at helping day traders understand what mistakes to avoid.

    CLICK HERE TO READ PART ONE

    CLICK HERE TO READ PART TWO

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      Huge Mistakes Made When Choosing a Day Trading System | Part Two

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      .Mistake: No Specific Way to Replicate Results

      The Begging Trader’s Day Trading Indicators

      If you’ve been exposed to trading for less than two years, most still consider you a “begging trader.” Every trader has made their way through this awkward phase. It can almost be considered a right-of-passage.

      But while each trader has to go through it, each trader also has to overcome it.

      Success by Day Trading Indicators

      If you currently fall into this “begging” category, please understand that merely signing up to use trading software is not what will help you find success moving forward. Simply knowing basic indicators and how to buy and sell does not make you a professional trader. While this software can be a vital part of trading strategies, it should never make up the entire strategy on its own.

      What type of returns do you expect to see if you’re only using free indicators and trading tips? Instead, these resources are best used in addition to other resources that make up a trader’s personal strategy as a whole.

      Different Types of Day Trading Indicators

      As you begin your search to find the best set of trading indicators, you’ll likely find only a few reputable companies offering proficient systems compatible with modern, updated charting software. Some of these companies even customize their indicator software for individual customers.

      It’s important to remember that while this sounds like a perfect scenario, success can never be guaranteed. That being said, these companies can at least help you come closer to finding a way to replicate results.

      Free or “Lagging” Day Trading Indicators

      There are countless trading companies offering basic indicators that have been around for a long time. These include Moving Average, MACD, Bollinger Bands and Fibonacci Retracements.

      However, advanced traders consider these to be “lagging” indicators due to how easily it is to take advantage of traders who use them.

      Another issue with these “lagging” indicators is a slower response time to the signal. This is because many advanced, savvy traders have built upon them to create and innovate modern methods to stay ahead in the game.

      This can be frustrating for “begging traders,” but the truth is that even with custom-designed indicators, replication is still a distance off. Traders may see consistent success, but it’s near impossible to develop indicators that can replicate specific trades based on specific market conditions.

      The true success of a trading system can be measured and replicated only to the point that others are willing to test its validity.

      Fibonacci and Retracement Day Trading Indicators

      Fibonacci’s retracement principles are now common among traders. These principles have been rebranded often for sales, but the main function remains the same.

      Some of these attempts to rebrand include Pivot Point, Prediction Points, Sing Marks, Buy/Sell Levels, Trade Levels, etc. Watch out for these old and free techniques rebranded as modern when developing your own system.

      All warnings aside, Fibonacci’s tools can greatly benefit traders if used correctly and in addition to other resources.

      There are enough uneducated traders willing to “donate” their money to the market. Let them.

      Other Enticing, Potentially Destructive Trade Tools

      Some traders use trading announcements as the deciding factor on each trade. Making trades based on the assumed market reaction to currently unfolding events is likely the oldest trading strategy there is. However, it may also be the most dangerous.

      The issue with trading announcements is inconsistency and unpredictability. Many have witnessed announcements with similar context to past announcements, but significantly different results.

      Some of these announcements can be traded on their own (slam dunks). But remember that it can take years before a trader is experienced enough to differentiate between market reactions.

      Just like other tools, announcements can be beneficial when used in addition to their other indicators. Making trades based solely on these announcements can pay off, but the numbers are against anyone making the attempt.

      Trade Systems Based on Results

      It is perhaps most difficult to find a trading system based on actual results. You may find systems that work with announcements and others that work with indicators. The question to ask yourself is if they are making money.

      This question may be harder for you to answer than you realize. It is best to take testimonials with a grain of salt. There are some outlying trading companies that even claim to base their trades on the moon’s gravitational pull. Even these companies will have testimonials from “clients” who claim the system works for everyone.

      It is likely you’ll experience at least some success in each system you encounter. This success is common and hard to take with a grain of salt. But to truly avoid the scams, make sure to do your research. Give each system you experience the time and preparation necessary to determine actual credibility.

      Day Trade FEED’s Day Trading Indicators

      Here at Day Trade FEED, we use a specific set of indicators in our day trading system. After years of research and trial/error, we’ve incorporated Kevin Jones Day Trading Indicators into our trading system.

      Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

      If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

      This article is only part two in a series aimed at helping day traders understand what mistakes to avoid. Subscribe for future editions.

        Free Day Trading Classes

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        Free Day Trading Classes by Day Trade FEED

        Free day trading classes are now available for everyone!

        With summer here, planning vacations and little getaways has become pretty common. Unfortunately, with that planning comes the anxiety and insecurity that only financial uncertainty bring. Look, we’ve all been there. And it’s no secret that we all wish we had a little bit of extra income to give us the financial breathing room to actually enjoy these trips. Well, look no further. Starting now, Day Trade FEED is offering free Day Trading Classes!

        Whether you’re a day trader who has been day trading for the past ten years, or simply wanting to find out about some different options to help you out financially, this is the opportunity you’ve been waiting for.

        For more information on these free day trading classes, contact us or register for a free, no-strings-attached day trading webinar.

        We understand if you’re a little unsure, but rest assured our proprietary indicators and tried-and-tested education program can and will make you successful.

        If you’re STILL not convinced these free day trading classes are effective, here is a little proof…

         

        Free Day Trading Classes can be confusing, so Day Trade FEED wants to help you understand the Day Trade My Money Program!

        We’re absolutely positive you’ll see what you like at these free day trading classes, and we’re even willing to put money on your success!

        One of the main offerings you’ll learn about at Day Trade FEED’s free day trading classes is the new Day Trade My Money Program. Basically, we trust this system so much that anyone who is willing to learn it, live it and love it enough to give it the effort required will be eligible to have an account funded by their corporate office… and yes, you read that correct.

        They will GIVE YOU MONEY TO TRADE.

        Many people ask themselves why a company would do this instead of just trading their own accounts to make profit?

        “Every trader hits a limit where the risk is more than they are willing to take on individually. If we traded accounts totaling millions, taking a loss could be very significant.

        However, if we let others trade our money, it is more protected. Some are buying, some are selling. Some are in the Euro, others in the Pound. Some taking a loss, others winning. Overall, diversifying our investment funds brings in better returns than typical investment vehicles.”

        Interested yet? Contact us!

         What do these free day trading classes teach?

        The answer is simple: free day trading classes teach you day trading 101.

        While most traders we deal with decide to trade the EUR USD forex market, we do see the occasional trader decide to jump right in and trade futures markets. The reason many traders decide initially to trade forex is because the market in general is slower moving, meaning more time to make decisions and a smaller chance at taking losses.

        …BUT the beauty of these free day trading classes by Day Trade FEED is that they focus on the individual! We recognize that no two traders are the same, in fact, we love the diversity! That’s why when a trader tells us they want to trade futures markets, we don’t even bat an eye.

        Want to learn more? Subscribe below:

          July 2018 Day Trading Results | DayTradeFEED.com

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          July 2018 Day Trading Results

          Day Trade FEED

          Before we show you our day trading results, we always make sure to explain exactly which trades these results are coming from.

          As we trade throughout the day, we record our trade results to post later on. These trade results come from all kinds of different strategies, including ONIT trades, SAT trades and normal daily trading.

          When we say “ONIT,” we mean the Overnight Impact Trade. Similarly, when we say “SAT,” we mean the Sunday Afternoon Day Trade.

          The ONIT is made Monday through Thursday, usually around 3:00 p.m. MST, and the SAT is a similar trade, but only made on Sunday afternoons. The trades are forex trades, and are placed on the EUR USD. Each trader simply sets the trade and forgets the trade each day, and watches the profits roll in.

          Many traders swear by these trades, and this is one of the only places you can find them!

          To learn more about this daily trade, contact us!

          Now for Day Trade FEED’s day trading results…

          July 2018 Day Trading Results | Day Trade FEED

          Day Trade FEED’s July 2018 Day Trading Results – July 10

          Daily Trades: 5
          Pips Per Trade: 10
          Total Pips: 50
          Lot Size: 0.50
          TOTAL PROFIT: $250

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $250 during the month of July.

          Day Trade FEED’s July 2018 Day Trading Results – July 11

          Daily Trades: 3
          Pips Per Trade: 10
          Total Pips: 30
          Lot Size: 0.50
          TOTAL PROFIT: $150

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $400 during the month of July.

          Day Trade FEED’s July 2018 Day Trading Results – July 13

          Daily Trades: 3
          Pips Per Trade: 10
          Total Pips: 30
          Lot Size: 0.50
          TOTAL PROFIT: $150

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $550 during the month of July.

          Day Trade FEED’s July 2018 Day Trading Results – July 18

          Daily Trades: 5
          Pips Per Trade: 10
          Total Pips: 50
          Lot Size: 0.50
          TOTAL PROFIT: $250

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $800 in the month of July.

          Day Trade FEED’s July 2018 Day Trading Results – July 24

           

          Daily Trades: 5
          Pips Per Trade: 10
          Total Pips: 50
          Lot Size: 0.50
          TOTAL PROFIT: $250

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $1050 in the month of July.

          Day Trade FEED’s July 2018 Day Trading Results – July 26

          Daily Trades: 3
          Pips Per Trade: 10
          Total Pips: 30
          Lot Size: 0.50
          TOTAL PROFIT: $150

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $1200 in the month of July.

          Day Trade FEED’s July 2018 Day Trading Results – July 30

          Daily Trades: 3
          Pips Per Trade: 10
          Total Pips: 30
          Lot Size: 0.50
          TOTAL PROFIT: $150

          Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $1350 in the month of July.

          In conclusion…

          We are Day Trading, Forex and Futures specialists, and love all things day trading! You can find more information on day trading education systems by contacting us!

          Want to be notified when we post our day trading results? Subscribe below!

            “IMPORTANT NOTE: Trading foreign exchange or futures on margin carries a high level of risk. It may not be suitable for all investors. The high degree of leverage can work against you. It can also work for you. Before deciding to trade foreign exchange or futures, you should carefully consider your investment objectives. Also check your  level  of  experience and risk appetite. The  possibility exists that you can lose some or all of your initial  investment. You should not invest money that you can’t afford to lose. You should be aware of all the risks associated with foreign exchange and futures trading. Seek advice from an independent financial adviser if you have any doubts or questions. Past trading history does not indicate future trading success.”

            Huge Mistakes Made When Choosing a Day Trading System | Part 1

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            Mistake: No Ongoing Support/Education

            To begin, think about what is going on in our current day. We live in an era where technology is advancing exponentially, and it seems, at times, as though computers are taking over the world.

            But are computers REALLY taking over the world?

            Foreign exchange (forex) markets recently saw a spike which caused the greatest change in the history of the Yen. Experts attributed this failure to robotic trading, which lost millions in the market due to faulty code.

            This, along with countless other examples, show us that the human brain is more capable than even the most advanced computer in existence. And even when computers become more advanced than the brain (experts believe this to be only years from now), humankind still possesses something computers do not: the ability to evolve, adapt and change.

            Day Trading System vs Robot Trading

            Perhaps Charles Darwin said it best:

            “It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.”

            Fortunately, the computer is not a living species, nor does it respond well to change.

            A human mind would have stopped the execution of the trade or the continuation of losses. And just as the world witnessed during the aforementioned fall of the Yen, a robot could not.

            What good is developing a trading tool or system if there is no continued education or support to follow? How does this help you increase your advantage by responding to change?

            Adapting Your Day Trading System

            When the market first began, certain candlestick patterns began to emerge. We know these patterns as Dojis, Hammers, Hangmans, etc. Traders that were able to recognize these patterns and understand how they’d affect the market moving forward were able to adapt and innovate old techniques to make millions.

            The rule of supply and demand in economics is very clear: if something is profitable, demand for it will increase. If demand increases, supply decreases.

            So, what does a trader do with their old, outdated system when it becomes less profitable? Some began their search for the next “golden goose,” while others refine their system with updated data and adapt to the circumstances now before them.

            This is why continued education is critical to the success of traders. Today, there are still traders who use candlestick patterns when determining the best trades to make. The difference is this is not all that goes into their decision. The data from these patterns is combined with current market conditions and other trading strategies to form a more consistent, reliable system.

            Is Your Day Trading System (Support/Education) Affordable?

            Now, what if a trader uses an updated, elite system, but the infrastructure behind support and continuing education within that system is not affordable?

            Unfortunately, this is a common trick of the trade. Many traders lose their first trade without even trading. How? By paying too much for the initial education and education materials to continue through the growing pains that come from learning to trade.

            If a trader pays $3,500 for trade coaching, but their trading system only yields $4,000 per month, chances are the remaining $500 will be used to pay their broker.

            Issue #2 With Some Day Trading Systems

            Another issue many traders see is that they’ll lose money while they learn how to handle losing money.

            There are a lot of trading businesses that shirk all accountability immediately following a student’s graduation from the program. So when a beginner starts to see a trade go upside down, they have nowhere to turn for assistance.

            This lack of support causes many to panic and make rash, emotion-filled decisions while trading. Making these decisions can cause bad habits and practices to form.

            This is why it is absolutely critical to make sure a trading program offers sufficient support and continued education before taking the plunge and joining.

            Pulling the Trigger on a Day Trading System

            In conclusion, ensuring these first two items (support system and continued education options) are integrated into the core of your trading system is absolutely essential. You may find a program that lacks in these areas, and it may be a challenge to walk away. But being confident in these areas will help you find success throughout your trading career.

            In order to determine whether support and education moving forward will be sufficient, ask yourself if the education is actually education and not just information from past market trends.  Many teachers and coaches will claim their continuing education to be worthwhile, when really it merely consists of ancient information from a past generation of traders.

            To truly grow as a trader, continued education needs to be current, driven by live data, state-of-the-art and relevant to today’s markets. This means live webinars, online meetings, etc. While older strategy and information can still be relevant, updating their trading system is necessary to stay profitable as market conditions shift and evolve.

            How to Know if You Have a Good Day Trading System

            This article is only part one in a series aimed at helping day traders understand what mistakes to avoid. If you’d like to be notified when future articles like this are published, subscribe below.

              Until future parts are released, check out our Should I Day Trade? and Introduction pages.

              Have a question about choosing a day trading system, continued support/education or just day trading in general? Contact us!