The Fastest Way to Make a Profit in the Stock Market
Step 1 So the first question when searching for fast profits is: How much of a profit do I require? This is such a personal question.
I always talk in percentage profit especially when talking to other traders as this levels the playing field and tends to minimize egos, the major element to killing consistent profits.
This entails having a plan.
Decide what profit you desire.
Is it 5%, 10%, 30% you name it.
But keep it achievable.
Start with 10% and work upwards as you gain knowledge and confidence.
Look up compound interest to see the power of 10%.
You will be amazed.
Step 2 The second question is when do I want this profit? Taking a profit and using it straight away puts you back in the same boat trade after trade.
If you can keep some of the profit and keep up-sizing your trades you will gain profit even faster.
So ask yourself Is it today that I need the profit or can I wait until next month, the difference can be startling.
Using compound trades can turn $2000 with 30% targets into $1,000,000 in just 24 trades.
Now that takes some skill, but anything is possible in the Stock Market.
The final question is what am I willing to risk to get my profit.
So let's get down to it.
Just how do you find the fastest profit in the market? It's actually a lot easier than you may think.
Step 3 Firstly you need a system.
The system provided here will return consistent profits.
Secondly you need the knowledge.
It's OK, it's not that difficult.
You do not need a Harvard Degree to return fast profit.
So here is the check list of the things you will need:
- a good understanding of Exchange Traded Options (cheap,safe and extremely fast)
- simple technical analysis
- a Charting and Trade Calculation package
- access to Options information
- an Options Trading platform
- a good understanding of placing trades
They can if used correctly be one of the cheapest and safest methods of trading the market.
Ensure you understand how Options work before attempting to trade them.
Technical Analysis The fundamental skill for finding the fastest profit is drawing good support and resistance lines.
Charting and Trade Strategy Package The Charting Package needs to give you at least the following features:
- Support and Resistance lines
- Identification of Options Stock
- Identification of the Top Traded Options Stock (this is where the action is)
- Automatic Trend Analysis
- Access to non-lagging trading Indicators (such as RESIN)
- Incorporated Options Pricing
- Strategy Calculator based on Expected Price and Investment Amount
Combine this with the technique shown below and you have the fastest method of obtaining profits.
Regular returns of 20% in just a few minutes are quite achievable.
Options information Determining the fair price of the Option that you will be buying is paramount to extracting the fastest and highest profit.
Overpaying for an Option will slow you down (yes it still may work but certainly not as fast).
The preferable method is to use Demand Based Options Valuations, these valuations even though their underlying values are based on theoretical pricing calculates the true market price and therefore allows you to know when a bargain presents itself or when to stay away from overpriced Options.
The key value you need to understand and have access to is the Options Delta.
This value determines the rate of increase (or decrease if it goes wrong) that the Option will move in relation to the underlying Stock or Index.
Avoid aggressive Options as their delta's can be quite low and therefore requires far more movement than more conservative options.
Look for the first Out of the Money Option, with a Delta of 0.
5 or greater.
This will give you rapid gains, and that's what this article is all about.
If the stock does not have this criteria, move to another, do not waste your time, remember it's the fastest way to profits! Options Trading platform There are many trading platforms available on the market today.
To ensure even faster profit are obtained ensure you join the platform with the best offers on trading.
Many companies now offer a number of free trades for joining.
Trading without fees assists in higher profits and therefore getting you one step closer to the fastest profits on the stock market today.
If you are currently with a trading platform that is not offering you free trades, then swap! Customer Loyalty is definitely a thing of the past.
Learn from the corporate world, cut costs - forget loyalty.
Online trading is cheaper and faster than talking to a broker, learn as much about your online trading platform as possible before you trade.
Place test orders or use virtual trading before placing your own orders with real money.
A good knowledge of placing trades You need to know how to use your trading platform to ensure you act swiftly, not knowing can lead to errors and losses.
Learn before, so you know what to expect.
A good Fast Track to Trading course is essential.
Putting it All Together Find, using technical analysis, a major stock or index with support and resistance lines coming together in a tight triangle.
This is a compression pattern.
What you are looking for is a triangle with an angle of 45 degrees or less and where the price is wedged firmly in the end of the triangle.
When triangle's occur the compression tends to form an explosive breakout.
So with support and resistance coming tightly together the price will break-out.
You really don't care (remember corporate learning's) which direction it breaks out as you will trade the direction of the breakout.
An example of quick profit is a Stock with the first Out of the Money option with a Delta of 0.
5 costs $1.
00.
A breakout occurs and the stock only has to move a maximum of 40c, quite easy on a $50 stock, turning your $1.
00 option into $1.
20 giving you a 20% return.
This can happen with the correct timing, compression and options valuation within minutes.
Remember to keep your percentage profit targets low (10%-30% are very achievable) and do not try to push it further.
Breakouts have a habit of coming quickly back at you, so take the profit quickly.
This is all about fast profit.
Please take the time to learn and understanding any investment strategy.
This is the slow part, but essential.
Never risk more than you can afford not to have.
Then once you understand and have practiced it, apply it as Applied Knowledge is Power and it will give you the fastest returns available.