TRADING FROM HOME AS A BUSINESS Your Guide to Getting Started FAST!
The World is changing and changing quickly. Are you ready to jump on board? As a preface to this E-Book I think it is important to realize what is happening around the world right now. I think it is fair to say that the world is changing and it is changing fast. The power of the internet is in my opinion the primary driver as it is giving people access to opportunities they never previously had access to. From Google, to You Tube, to Face Book, to Twitter, the online world is changing and offering those who seek to take advantage of it never seen before opportunities. Having run many live events in recent months in Melbourne, Sydney, the Gold Coast, Kuala Lumpur, Ho Chi Minh and Hanoi already this year, the message is very clear. People want to work for less time, earn more money, and spend more time doing the things they love! People are also passionate about gaining an education that can genuinely change their lives and empower them to be independent of a boss and independent of a job. The age old approach of work hard at school and then work even harder until you are 65 is quickly losing appeal. As the power of the internet is realized, more and more people are turning to it for Home Business opportunities that offer a genuine and sustainable income opportunity. The goal of this E-Book is to provide you with some highly valuable home truths about trading and what it genuinely offers you when it is done correctly. Trading is in our opinion the most lucrative Business Opportunity available that genuinely provides the opportunity to be independent of a boss and the 9 5 Grind. We look very forward to you joining us in the journey towards becoming a successful IDTA home based trader. 2
Why do people seek to work from home? When considering working from home we believe it is important to understand the potential advantages that it may derive for you. Having educated over 500 traders already, the most common motivations of these traders to work from home are listed below. 1. A second income stream (without a second job). 2. The ability to work from home when they choose to and on their terms. 3. No commuting to and from work. 4. The potential of a low start up cost when compared to more traditional shop front style businesses. 5. To be 100% independent of a boss and a job. One of the significant advantages of working from home is that you can choose to work for as little or as long as you would like each day. In saying this, it is clearly important that the business model you seek to follow actually has a high chance of working. Further, this same business model must also be proven to work for others and also their performance in the business must be highly transparent. I would argue that there is no point putting significant time into a business if there is not significant proof that it is already working for many people who you seek to emulate. What is your motivation to work from home? Forbes magazine in the US recently ranked the top ten benefits of working from home. http://www.forbes.com/sites/ kevinkruse/2012/12/18/benefits-working-fromhome/ 3
Why is trading a potentially lucrative business? When we first mention the topic of trading often thoughts of long hours, many computers, intravenous coffee and it is too hard for me to do come up for a lot of budding traders. Quite to the contrary, trading from home is actually none of these. When you know what trading is, and how common it actually is, you may draw a different conclusion about trading and what it offers you. 1. No staff, no shop front and no inventory to deal with. 2. No need to have a boss telling you when to work. 3. No need to commute past your kitchen table. 4. A plus 3 Trillion US Dollar Turnover each day that you can choose to plug into when you wish. 5. Low start up cost when compared to more traditional shop front business models. 6. The freedom to trade when it suits your daily schedule. What is trading? Trading is everywhere and in fact we all trade something on a daily basis. Some of us trade time, for money, called a job. Others of us trade money for a good coffee in the morning and a sandwich at lunch time. Trading is by definition swapping one thing for another and in the financial markets trading is no different. Did you know that you can trade markets including coffee, sugar, oil, gold, and currencies just like you can trade entire share markets all using one strategy? Did you know that these markets are available for up to 23 hours per day 5 days per week, so you can literally trade when you choose to? Did you know that you can trade these markets both up and down so regardless of whether they are falling or rising, you can take advantage of it? Did you know that some of the markets you can trade, like the American Stock Market called the S and P 500, turns over in excess of 3 Trillion US Dollars per day? 4
How do you get started? Getting started in trading is a matter of becoming informed about what trading is and the realities of trading. Trading may be far less complex than you think! Like any business, there are both Pro s and Con s to the business and understanding these is critical to you making an informed decision; is trading for me? To get started in trading there are four key steps of which this E-Book is intended to be your start to Step One. Step One: Get Informed by finding out about trading from people who actually trade! Step Two: Get Educated utilizing Live Trading Information Webinars and if you choose the IDTA compliment of Trading Courses. Step Three: Test your abilities to make money and secure your income while trading in Simulation Mode. This means you can practice your trading for as long as you need to and prove how much money you can make each and every day with no money at risk at all. Step Four: Start Trading for Real by funding a Live Trading account and using the exact strategy you have already proven profitable above Trading in Simulation Mode, using the exact strategy we do, is in our opinion the fastest way to test the profitability of your business and prove that you have the competence and the confidence to make money consistently, with no real money at risk! 5
Trading is a Genuine Business Not a Get Rich Quick Scheme At IDTA we want this guide to be your first step to understanding the truth about trading and what it actually is. In doing this we want you to realize that Trading is not a Get Rich Quick Scheme! Instead, trading is a business opportunity that when approached with discipline, patience and a professional attitude can produce significant returns. Risk Versus Reward I think it is fair to say that there are risks involved in every business venture and trading is no exception. Like all businesses, trading involves two primary risks, the risk of making money and the risk of losing money every time you take a trade! I think it is fair to say this is an honest and forthright appreciation of what trading really is! As a trader you will need three tools to get started: 1. A PC/ Mac that is less than 3 years old (Mac must have a Windows Parallel); 2. An Internet Connection that is ADSL minimum. 3. A great trading education that actually works. If you have these three tools, then you have the tools to get started as a trader. Now let s get going into this guide! 6
Trading as a Business: When considering a business opportunity we think it is fair to say that most people are seeking one thing, to be successful. We would further suggest that success in business is measured by profitability. Profitability is a function of both positive cash flow and a fundamental understanding of risk control. Just like any business, trading requires discipline, patience and profitability. The following Do s and Don ts of trading are intended to set you up for success in trading by highlighting what to do and most importantly what not to do! When you evaluate trading for what it really is, you may very quickly realise the power of trading over more traditional business models. Lachlan Elsworth, IDTA Founder 7
The 5 Do s of Trading Gone are the days where you have to ring a broker to take a trade, buy shares and pray they go up, spend hours a day combing the newspaper for the next big winner or indeed spend hours per day sitting in front of your computer. Instead, with the right education, you can now trade when you want to, up to 24 hours per day, five days per week, in both directions (up and down), and do it from wherever you have a good internet connection. Here are our Top Getting Started Tips Trade when is most convenient for you. The markets we use move up to 24 Hours Per Day, 5 days per week. So What? You can potentially trade when you want to, each and every trading day. * Trade from home or travel and trade. All of our trading is done over the internet (and you do not need to call a broker. This means you can potentially trade from home, from work, or your favourite holiday destination, provided you have good (ADSL2 or equivalent) internet. * You only need one computer or laptop. Most people we teach only use a single computer or laptop when they trade. We have found that most people already have the tools they need to get started as a trader, they only need education and off they go! * 8
Trade both up and down. The markets move both up and down almost every trading day You may have heard about this on the news or seen it in the press So What? If the markets tend to move up and down each trading day, why not trade them both up and down! Lets learn to trade the market both up and down so that you can potentially make money when the markets goes up and also when the market goes down.* Rely on yourself, not other people, for the success of your business! Have you ever noticed that a business is only as good as the people working in it? Some work very hard to ultimately support the people a little less motivated (to be polite). You tend to end up with the average of everyone s efforts as the result! We find this is a MASSIVE Potential Advantage to other forms of business there are no other humans in your business to get in the way of your success! Your trading business, with the right education, involves you, the market, your computer and an internet connection. This may seem like a lonely argument but has anyone in business ever let you down? Has anyone ever promised the world and not delivered? Has anyone ever promised to stay motivated and just stopped? * It must be noted that some days you may not get a trade. This means it is highly likely you have neither made money nor lost money for that trading day. How about building a business that only needs you, a PC and the internet? Here are our Top DO NOT DO s to help you avoid the pot holes that others have fallen into!!! 9
The 5 Dont s of Trading Gone are the days where you have to ring a broker to take a trade, buy shares and pray they go up, spend hours a day combing the newspaper for the next big winner or indeed spend hours per day sitting in front of your computer. Avoid complex strategies that you do not understand. Trading well is not about trading a complex strategy you do not understand. Instead, it is about knowing what to do and when to do it. Make sure your educator marks the trades for you live in the market, not in hindsight!!! Anyone can mark a trade in hindsight and make themselves look very smart! Live Charts and Live Signals mean you get to learn in a Live Market Environment and you actually learn how to trade! Avoid using brokers that charge you lots of money. If you pay large brokerage costs, these can potentially eat into your profit. Instead, use a strategy that costs less than $7 per trade when you first start. We use an Emini Futures contract for our trading and if you seek to do the same you will find that we trade in one of the most highly regulated markets in the world This is a very good thing! 10
Avoid trading for longer than one hour per day by being SMART! As a new trader, you can try focussing on the opening of a market as this is when the markets tend to be most active. An active market tends to also offer lots of volume and lots of movement making it excellent trading. A great example of this is the European Markets that start trading at 7 p.m. AEST most of the year. At this time each day, these markets typically offer some brilliant trading opportunities and as it occurs at the same time every day, you already know when is best to trade! Avoid strategies that only trade up, because the market can also go down! The markets move both up and down, we see this almost every day, so why is it that most people tend to only know how to trade up? In our opinion you are best to know how to make money in both rising and falling markets. Trading up only is called B.H.P Buy Hold and Pray and is not a smart investment style in our books! Avoid trading markets that close while you are trading them. Markets that close do not allow you to exit a trade when they are closed, a hard fact of markets that close. Instead, let s focus on trading markets when they are open and never hold overnight positions they increase your risk in trading significantly and should only be done by very experienced traders! When you can avoid the above potential negatives, in our opinion you significantly stack the odds in your favour of establishing a Trading Style that is set on a realistic expectation and a realistic foundation. 11
So how much money are these markets actually worth each day Let s use The SP500 (US Share Market) as an example. The SP500 Share Index is just one of the 70 or so markets we can trade around the world. The SP500 turns over in excess of $2 Billion USD on an average trading day. ** In our eyes, that is $3 Trillion Reasons to understand more about what we do! We target these markets as most of our traders seek to make only $100 - $200 per day when they first start. Now $100 - $200 per day is not life changing money, but it is a great start. This daily trading goal also sets the foundation for trading larger sums and seeking larger daily goals and is a great place to start. Now we have mentioned potential profit, let s talk about potential risk! Setting a daily profit goal is a fundamental step to creating a good Trading HB but it must be noted that there are also risks involved in doing this. Just like any business, we think it is fair to say that there is the potential for making money and losing money. In trading, we say that there is the potential to make money and lose money in every trade that we take. Because of this risk control forms a valuable part of your Trading HB Strategy. 12
So you may be thinking: How do you trade these markets? Let s talk strategy! Our beginner Strategy is known as the Delta Script and is designed to assist even the newest of traders, seek out and take what we consider to be high probability signals in the market. Please note the DELTA is coded to trade both up and down and can be used on all of the markets we specialise in. Strategy is Your Key! When it comes to trading successfully there is a saying we use at IDTA: Chase One Rabbit. By this we mean get very good at just one signal and get very good at chasing that signal each and every day! Just like an apprentice working under the skilful eye of a far more experienced tradesperson. The apprentice should seek to replicate the great example set for them each and every day by their mentor and coach! As they get better and better at doing this, they have the opportunity to take on the skill set as their own and eventually become independently successful and independent of their mentor! This is why we wrote the DELTA script. Advice Only. Neither your personal objectives or financial situation or needs have not been taken into consideration. advice. The International Day Trading Academy is a wholly owned entity of Intelligent Financial Markets Pty Ltd (AFSL No. 426359). 13
Our Little Helpers Indicators The indicators we use are designed to show you exactly when to get in to the market and when to get out of the market on every trade, live in the market! All signals are generated in real-time and show the exact trade entry and exit prices. We have done this to ensure that every trader using the IDTA Strategy has the ability to take the same trade, at the same time, on the same market, regardless of where they are in the world. The figure below shows the Beginner Signal Arrow signal format in both directions. The Signals are automatically placed on your charts for you! The aqua coloured triangles in Figure 1 are automatically generated buy signals for new traders to follow and trade. These signals occur live in the market so all students have equal opportunity to get in to the market at the time the trade triggers. Figure 1 Our Indicators Developed by traders to help new traders trade! The Indicators are designed to show you everything you need to know to take a trade including your direction of trade, your entry price and your exit price. We think that is kind of exciting! 14
The FINISH! We hope that you have got a great deal of value out of this E-Book! If you would like to find out more about what we do, you can jump on our You Tube Channel or attend a Live Trading Introduction Event. On the IDTA TV You Tube Channel you will find videos including: How to trade gold both up and down; Testimonial Interviews with current Traders; and A sweet of course introduction videos that show you exactly what our courses include and why they are so extensive. Simply click on the You Tube icon and choose the video you seek to watch! To register for our next Live Trading Introduction Webinar, simply click on the webinar icon and choose the date that best suits you! To read some of our most recent testimonials of people already on the IDTA Trading Journey, simply click on the testimonials Icon. Time to Take Action!!! If you have ever wanted to work from home, and you have wanted to invest your time into a system and a strategy that actually works, then it is time work very closely with IDTA toward your own trading success! From the entire IDTA Team we would like to say a huge thank you for your time and if you are serious about your success trading we look very forward to assisting you in your trading journey. 15
Contact details: 07 5551 0709 idta@ifmtrade.com www.idta.com.au