I teach a number of strategies that require software that displays tick charts. However I often have students who tell me that they use such-and-such piece of software that will not display them. But they refuse to change because the software they are using was free.
Since many people try day trading as a supplement to their regular income, they do not often want to invest in it before showing a profit. But there is a problem with this line of thinking. Why does it seem so unreasonable for people to spend around $100 on a piece of decent charting software when they hope to make thousands of dollars from it each month?
On the one hand, this attitude is wrong because the software you use is not simply a tool. It is an investment which should pay for itself multiple times over.
But there is a larger problem with this attitude of not wanting to invest in a commitment to day trading. You might have heard the saying, "Trading is a zero-sum game." If you want to buy a stock, a commodity or a currency, then somebody else has to sell it to you. In some markets this might be a market maker, but most of the times it's another trader.
What this means is that you are in competition with someone else. If you buy and prices are going up and you win, then the trader who took the other side of your trade loses. Admittedly, he could be trading in a different timeframe, and while you are taking profits he might still be in the trade and just experiencing a drawdown. But for simplicity's sake, let's say that if you win, the person who took the other side of your trade loses and vice versa. In other words with every trade, someone either makes money or loses money. You cannot participate in the market ?for free? and with zero risk. Someone has to lose for someone else to gain. Someone who comes into day trading with the attitude that they can succeed without putting themselves on the line, even if that means dropping $100 on a piece of good software, is not cut out for day trading.
We play what they call "the game of games," and we play it to win. When you trade, you are going up against the brightest minds in the industry, equipped with the best software and hardware, using multiple monitors, $800 chairs, ergonomic desks and lighting so that they never get tired, a blazing fast internet and data connection. If you think you can magically reap the rewards of a system dominated by these high powered figures with free charting software that cannot even display tick charts, then you are outclassed from the beginning.
Inexperienced and ?casual? day traders can profit. But they can't do it without an investment in time, research, experience, and, at the very least, the right tools for the job. Otherwise, they may think that they are playing the markets for ?free? when, in fact, they are setting themselves up for a very expensive prospect of losing time and again to those willing to invest in their endeavors.
The High Cost Of Free Parking
The information they include goes on and on about how much money they made and now they want to share their ?secret? of making huge amounts of money on the internet with you ? or a select group of people of which you just happen to be a part. Just think, the pitch may tell you, within an hour of setting up your new ?Free? website, you could be raking in thousands of dollars an hour.
The first thing to ask when reading this is why it took them so long. Typically, by the time you read most of their sales pitch and have no idea what they are pushing, it's time to hit the delete key. Then I wonder what I did to become part of this select group.
Is it the fact I have an email address that showed up on someone's list? Then, why do they want to share this secret? Why not just keep making this obscene amount of money or share the secret with their family and friends. They most likely have hit them up to buy all of the other schemes they were involved with before they stumbled onto this secret.
Ok. Assume you're hooked on making a lot of money and you respond. You will get a ?Free? professional website with a unique address on it through which you guide all your customers. When they buy this fantastic product, you get a large cut of the sale. But wait! There's more! Convince another person to sign up and you get a large bonus for bringing another sales outlet into the fold, as well as a cut of the profits on sales made through their website.
But wait! There's more! If you elevate your status by paying a monthly membership fee, your percentage of the profits goes up and if you agree to pay even more every month, your profit percentage rises exponentially.
Now this free home business opportunity is costing a little money now.
OK. Your site is up and running. Looking good, too. But you're not getting any traffic. Not to worry, because ? there's more!
This guy can steer you to another company that can, for a monthly fee, get your site onto search engines to get you all the traffic you can handle and all the orders your website can process. Hey, you'll be making more money than you ever dreamed possible. But wait! There's more!
Why limit yourself to just making these hundreds of thousands of dollars on this one successful website? You are his number one fan, since you are paying him and his other company (the one who is getting your name on search engines) will clue you to some of the best affiliate programs on the internet. He knows. He spent years looking for the ones who pay the best percentage for sales and by signing up with them, you can make hundreds of thousands of dollars a year more! But wait! There's more!
The affiliate sites will offer you a pittance for you to push their product until you become an elevated member by paying their monthly membership fee and that's when you start making really big money.
Your ?Free? website and home based business is now costing you upwards of $250 a month and you have not made a cent.
Ask yourself ? What am I selling, again?? Don't know? Probably because no one ever told you. They just want to give the chance to sell something, and they are willing to take your money to show you how to do it ? every month.
Both Rockwelltrading@gmail.com & John Cargo are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Rockwelltrading@gmail.com has sinced written about articles on various topics from Investing and Trading, Trading Strategy and Day Trading. Markus Heitkoetter is the author of the international bestseller "The Complete Guide To " and a professional day trading coach. For more free information o. Rockwelltrading@gmail.com's top article generates over 5400 views. to your Favourites.
John Cargo has sinced written about articles on various topics from Investments, Advertising Guide. To find the best home based business ideas and opportunities so you can work at home visit:
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