Making $200 in 30 minutes

Well, trading can be hairy and most people you mention the word to will respond as if you’re a compulsive gambler… What was the possibility that when you got in your car today that you would have an accident? The probability isn’t very high unless you have accidents often. Why is this?

Well, because you understand the rules of the road. You follow the guidelines set out for all drivers and if you use them, which includes things like seatbelts, the risk of accidents, injury to self or others is largely minimised. It’s the same with trading and investing on the stock market.

Make sure you understand the rules and have proven guidelines.
My work involves educating people on how to improve their financial knowledge also known as financial IQ. It is a learning curve as there is much to learn. But the rewards can be great! Those learners that apply the strategies and do the analysis come to terms with the fact that the application of analysis can make you money!

Today I used a technique called Negative Divergence on an Index chart of the ALL Share Top 40 listed in South Africa. It’s very similar to the DOW Jones Industrial although it is very much resources dominated.

What is Negative Divergence? It is using an indicator, in this instance the Slow Stochastic with the parameters 13, 8, 5 and looking at a candle chart of 15 minute period.

Essentially, what needed to happen is the overall trend of the index should be bearish or downward. The Index is showing a lower high in price and the Slow Stochastic is showing a higher high.

At 9h00 GMT + 1:00m, the trigger came in my LIVE Real Time charting software and I went short in the market. I was risking $100 with the aim of making $50 in a very short space of time. The stock market proved my direction correct and I added another 2 contracts on top of my original 3.

The first 3 contracts on CFDs made me $148 when I closed them at 9h45 followed by the other 2 CFD contracts making me $52 by the time the deal was closed. Business done by 9h45!

This doesn’t happen every day. Let’s be honest the market has good days and bad days too. The thing is, that right now my account is up $240 for the week so far.

Do you want to learn how to use the stock markets to make money? Get a mentor. A driver trainer if you will of the investment highways and by-ways. Practice the strategies and practice the mental discipline to paper trade before you get involved. Write down the strategy you want to use to trade and then paper trade it to test if it works on the Index or stock you want to use it on.

If it doesn’t give you good results after a month, either can the strategy or change the stock. One of them really isn’t suited to the other in this case. Don’t try and fit the strategy by changing it to match the back test results. This is no good at all.

Do you want to find out how to trade the ALSI40? What about Forex? Come to our next free introduction talk…. contact me in the blog with your details. Or visit http://www.tradingmentors.co.za/

Financial & Investment Workshops, ebooks & financial freedom @ http://www.tradingmentors.co.za/