When I started trading, I had no idea what a trading journal was. I used to think trading was the most difficult thing in the world.
I read everything: from blog articles to books; I watched everything: from Youtube videos to online courses.
Nothing worked. I was overwhelmed and I felt stupid.
Do you feel the same when you try to trade? If you do, I’ll suggest you start with a trading journal. That helped me A LOT to understand the stock market and opened my eyes to everything else I had learned before.
Did you have a diary when you were a little girl? A place where to keep your secrets and write in whenever the world felt like shit?
If you did and you had the opportunity to read your own diary years later, you could see how that boy you simply LOVED when you were 15 was terrible, right? When we look from a distance, things seem a lot clearer and easier to understand.
A trading journal does that to you. When I started one, it was like I saw everything I had studied under a whole different perspective, I could now understand how success happened in trading – and, after the journal, I started making the DOUBLE of money I made before!
What is a trading journal?
It isn’t a regular journal where you write your calendars and your to-do lists for the day.
The trading journal I’m talking about is this one: a system where you can see and track every move on your trading account: it tells you if the moves you made in trade were “Loser” or “Winner” moves.
The trading journal I used for myself is named Edgewonk. On their website, they provide a list of benefits of their journal, which are:
They help us develop more discipline with their instant-feedback tools
They optimize trade management for better decisions in our trades.
They perfect stop placement to avoid stop hunting and stop runs
They increase the size of the “winners”, which are the profits, by tweaking trade exiting
They evaluate and improve trade exits for a higher win rate
They understand risk management with our performance simulator
They customize your journal to your own strategies, methods and markets
On this image, you can see how a trader can change when using a trading journal – a hint: I had graphs similar to the first one; now I’m definitely closer to the second.
The problems I was running into
Before relying on a trading journal, I used to run into several problems like the following:
● Exiting too early when in profit
When we don’t know something, we get scared. Whenever I got a few pounds of profit, I would quit the trade.
I used to scalp and day trade because I was too insecure and impatient.
I would think “well, I can already buy a good lip gloss with this profit I made”. I’d find excuses, anything so that I wouldn’t risk losing something I knew I had.
● Stop losses
Since I wasn’t tracking my trades and didn’t know much about it, I had some real loose stop loses. I used to lose more than I should because I felt like:
“Well, I’m already losing money, how bad can I become?”
I became worse. I was losing more money than I should. I started stopping by 15% loss – which, for the scalper and day trader I was, was BAD.
So, every day I bought a share and the share went down, I would sell ONLY when I had lost 15% of the money I put there in the first place. I didn’t know stop losses are really important for the trader and I didn’t realise their importance until I tracked my tradings using a trading journal.
● Need to measure
If you don’t track and measure your trades, you’ll fail. I’m sorry, ladies, but that’s a MUST.
Tracking will give you safety to see the opportunities.
If you feel insecure, all you need is discipline. If you need discipline, well, then you’ll need a trading journal like me. I tried to track by hand, on Excel… Eventually, I gave up and started journaling.
● Getting trading feedback
When we try to learn without a teacher is like it’s twice the effort, right?
I was trading, but I didn’t know if I was doing it right, if the earnings were by luck and if the losses were just bad luck.
I had data, but I had nothing else to back me up and give me some insights on how I could improve. A trading journal did that for me.
So what did I do with a Trading Journal?
Well, as I told you, I used Edgewonk. It’s a trading journal designed specifically to tell me what in the bloody hell I was doing wrong.
I was also in a trader development program because I saw some flaws I had that the trading journal might not help.
Within a few weeks, I’d changed my strategy. It was like when I had my first baby and I used to rationalise to make him eat: it didn’t work, so I started tricking him into eating.
Did it work? Hell yes!
Changing strategies worked in trading as well: I started by making fewer trades, no more scalping. Scalping was, for me, the least profitable trade, because I was an amateur, and scalping is for the ladies who already know how to play.
I started to experience more day trade and short swing trade. By using this strategy, I improved win rate. This went up almost 10% over a couple of months.
Do you remember the sad part where I said I lost tons of money?
It reduced the size of losing. These went down 6% within a month, and then down 15% over 3 months.
I had 25% extra profit in 3 months. Girl, imagine earning 25% MORE, with TRADES, and spend it on clothes?
Ok, but just imagine! This money shall not be spent, because this cash will be compounded and increase unbelievably in a matter of months.
It can happen to you too!!!
The trader development program helps you understand how you trade – and educates you how to apply self-correction while using feedback in Edgewonk.
I used Edgewonk for free during the 1-month free trial and I simply fell in love with it!
The really crazy thing, it was a one-off fee under $200! Literally paid off within the first month.
Too good to be true?
Well, there’s no free lunch!
If you’re married or have a lifelong partner, I’m sure one day you had HUGE expectations, but you realised, after all, nobody is perfect, right?
The same thing with the trading journal you’ll have to make some effort for it to work:
Have to put some time in it – after all, you’ll learn how to use a new platform;
You need to be honest with yourself– to know what you’re good at, what works, what doesn’t;
Continual improvement and self-reflection is a must.
You’ll become more disciplined – a benefit of using a trading journal, but still something you’ll have to learn
A risk-free trading journal
As I said, a trading journal will prevent you from losing a lot of money – almost the same way it does not to bring your kid to a supermarket.
Be a risk-free trader: track it all. I’m sure you’ll make as much money as me, and you’ll develop that discipline and self-evaluation needed in the trading environment.
What are you waiting for? Become the better trader you’ll ever be! Start by signing up to Edgewonk’s free trial.
They have to be attentive to the opportunities because they always aim to sell their shares for a higher price than the buying price – and that’s how they profit.
The day traderis this person who buys and sells the shares in a period of 24 hours. This person is usually very dedicated and treats trading like a job.
Maybe if you’re unemployed, if you have a home office or are a stay-home mom who has some time for herself (although we know that being a stay-home mom is one of the most difficult jobs in the world), you could try day trading.
Is this case, you should learn how to start trading in 7 days by signing up for our free email course.
There is another difference between trading and investing, which is profit.
When you invest, your money will be there for a long time and profiting; it is safer, but it doesn’t earn that much.
Trading is more profitable if you can see the right opportunities. You can buy a company’s share, but something can happen to that company that lowers or raises the price of the share you bought.
In this case, trading may provide you some more profits than investing if you pay attention to the indexes and charts in the stock market.
If you don’t study enough, you might even lose money with trading – as for example if you buy a share of a company that will face bankruptcy in a short period of time and never recovers from it.
So, in trading, you have to be aware and never trade more than you can afford to lose.
Did you ever want to be able to help that company that makes your eco-friendly makeup?
Do you wish to be a part of something that will help many people with some product or service you think is good?
You can do that by investing! When we invest, we are helping a company to rise. We are a part of this company, and profit from its success and growth in value.
When you trade, you can’t be concerned about the principles or ideals of the companies – you might don’t even know their names!
Trading is all about seeing patterns and following the market because you won’t have time to invest in the companies you love – that sometimes can be in baby steps.
The different roles trading and investing can play
When building your wallet, you should have money distributed in investments and in trading market altogether – I won’t talk about the eggs and basket again, but that’s it.
Both have different roles in our wallet:
Trading is for earning money in a short amount of time; Investing is for your retirement.,
Your investments can make you earn a passive income – like when you invest in property funds, that pay you in each month. Your trading can provide you with active income (which can be handy if you discover you’re pregnant and you need some extra money NOW).
What is right for you?
As said before, you got to have some time to trade – in day trading, for example, you have to spend at least 2 hours a day in the market, buying and analysing your shares’ prices.
Do you want to get rich fast? You don’t want to wait until being a grandma to get the money? Then trading may be right for you! Check how to do it in here.
Are you an aggressive trader or a lower risk investor? Make your choice based on your personality and goals.
You always wished you earned some extra money every month without doing absolutely nothing? Then maybe these high returnpassive investments are a good fit for you
As we said, the ideal is that you find a balance between trading and investing. Many of us girls need some money ASAP, but we can’t only think on the present.
It doesn’t matter which one you think will be perfect for you. The most important thing is that you do something, no matter what!
You’re probably here as are new to trading and wondering when to make the leap from practice to real. To know when you should move from a demo trading account to trading real money. Moving from demo trading to real money is different for everyone, but we’ll help if highlighting the key things to consider in your own, individual journey.
After all, every successful trader has been where you are before!
So, you wish to trade but you’re afraid of losing money because you “just don’t know” how to do it? Or if you’re “ready”? Do you prefer to spend your hard-working cash on buying goods like more and more clothing or many pairs of shoes for your only two feet?
Girl, if you’re reading this, you probably want to be richer, right? Do you know that this fear of trading can be overwhelmed by a Demo trading account? If not, start by signing up for a demo trading account like the ones in eToro or Plus 500, follow the hints below!
In this article, you’ll learn how to change from your demo account to a real account and how to know when you’re ready to trade real money!
How is Demo Trading different from Real Trading?
The main difference between Demo trading and Real trading is money. You don’t actually have to have money to trade in demo accounts since they are just a “test” account. Demo trading is like when you’re into someone but it’s just a summer crush: Real trading is like a marriage; you can be happily ever after but it can also become your worst nightmare in the long run.
There are some other slight differences between them. The demo trading vs real trading dichotomy is seen when you actually buy your first stock in the market.
Some guys have studied demo trading and how it differs from real trading, even when using the same strategies, home brokers or buying the same stocks. Here are the aspects that are quite different between them:
Your mind works differently – when it’s your real money on the line, you don’t think the same! We tend to be more careful when trading in real accounts, that’s why transition may be hard.
Slippage – in real life, the time between your offer and the actual buying can influence the value of the share. This doesn’t happen on demo.
Spread is often different – the demo account’s spread makes you think you would profit more than you actually do in real account.
“Am I ready?”
We know that trading with a Demo account is like playing a game and having fun with it. However, this game may seem boring if you play it for a long time – after all, you already know the rules and now you’re ready to move to the next level: from demo to real account!
There are a few tips to help you know that your heart is ready for this new love adventure called Real Trading:
A reliable method is to look at win percentage and trading profit – if you have a rising and profiting percentage in demo, try and go for it in real!
Profit per trade – this is a bit risky because you might feel like you’re in the middle of a bet, but if you start slowly, it may work.
Make the choice by heart – summer love or a steady relationship? It can be up to you, and we’re here to help.
For how long will I be Demo Trading?
It depends. Could be weeks, could be months, could be years. There is no right time – remember the comparison I made with marriage: how do you know for how long you’ll be dating until that person proposes? We don’t know unless we make our move ourselves.
Being ready to trade for real is like getting married. Some people jump in, some people date for years. Others never make it.
We recommend that you at least do as much as possible beforehand to avoid losing money.
Following the tips of the topic before this one will help you a lot. And also it’s better not to follow the ones given in the topic below unless you are in a huge hurry – which we hope you’re not!!
Tips to hurry trade-readiness!
Skip demo but start small – you can learn the process and discipline directly in real accounts, but you must start small! In this case, you’ll be already trading with real balance, so you won’t have the problem in switching
Trade the same in demo as you would in real – you won’t learn anything if you risk money in demo that you won’t be able to risk in real trading – there are websites where you can trade with a very low balance, like eToro, and this might help you.
Testing strategies – if you want to test something new, do it in your Demo account first!
Trade frequently – trading is all about pattern. See your averages and performances in lots of trading to see if it is safer to trade a larger amount of money.
Increase the size later – don’t believe in a miracle trading as you don’t believe in a miracle diet! Learning control now is important, as otherwise, you’ll zero out from a bigger pot if the lessons were not learned in demo or small scale real.
We all know that learning anything new can be challenging, but it is even harder when learning is costing you money! Many times, this is doesn’t to what they know (or what they don’t know), but learning how to master the mind. Without the right trader mindset, as a trader you won’t be successful no matter what you know. So, we’re sharing the 4 common mindset mistakes beginner traders make to help you avoid them!
What do you pick?
You have a chance to win a prize:
A – Guaranteed £5,000, or
B – A 50/50 chance of winning £0 or £12,000?
A – A certain £5,000 fine, or
B – A 50/50 chance of the fine £0 or £8,000?
If like most people, you picked the sure thing on the win… and the gamble on the loss then it is a sign that you’re not as rational as you think. Even with the odds stacked in your factor with upside, it is hard to not choose these options.
And compound that with nothing is guaranteed in trading.
The Undoing Project by Michael Lewis (covers the start of behavioural economics from two revolutionary psychologists Amos Tversky and Daniel Kahneman).
They identified two groundbreaking things that impact how people relate to money and have a HUGE impact on how people trade.
What this means is that:
Open profitable trades are closed too early (for fear of loss of profit)
Losing trades are left open too long (for hope of recovery)
Profitable trades are often closed too early – whereas losing traders are left open for too long.
Here are some of the common dysfunctional psychology that affects traders and how you can avoid them.
Closing profitable trades too early
Have you ever wondered whether you should take the profit or let the trade run in the middle of a trade? Or even closed trade with a small loss before the stop loss has been hit.
Maybe you take the profit and proved to be a better decision? And other times you smacked your head since you’ve closed too early?
Why do you do it anyway?
Well, here are your answers…
1. First, you don’t have a clear profit target in mind
It’s always important as a trader to have a plan. You need a plan to determine when to enter a trade and when to exit. You need to have a clear profit target and have a goal when trading.
2. Second is low-risk tolerance
This might sound reasonable but it’s a fatal mistake many beginners make. If you want to make profit trading you must be ready to take calculated risks.
There’s no short cut!
Enter a trade with an expectation of making a profit and be patient. If your goal and strategy are to close with £150 don’t close with £100 because you are afraid to risk the unrealised profit for another £50. This mindset mistake is often made by beginner traders as without patience, fear of loss takes over.
3. Last is lack of confidence with your trading skills and idea
To have the ability and strength to hold your trade until it hits your profit target does not only take patience but a great amount of confidence.
You’ll find a lot of uncertainties along the way which will make your confidence even more challenged. It will be more tempting to lock the wins rather than risk the possibilities of losing them by keeping the trade running.
But remember, mentally missed opportunities will hold you back more than the potential loss of the unrealised profits. Mindset is key to avoiding this in new traders, having belief and confidence usually comes over time.
Therefore, you need to trust yourself and your strategy to be able to hold your trades until they reach the planned profit target (of stop loss).
4. Gambling’ on losses open
One of the biggest lessons, you should learn as a trader is to accept defeat. Even though everyone’s goals when trading is to make a profit, losses are a normal part of the overall trading process!
I get it, who loves losing?
If it’s tough losing where there’s nothing at stake, what more when actual money is involved?
Imagine yourself in this situation.
You see a market setup that you are so sure it’s a win. Then you enter the trade but due to some reason, it goes the other way.
Now you are losing but you are confident that it will soon turn and to go your way.
You don’t want to be stopped out so you extend the stop loss! You are losing more. But you can’t exit now, what if it turns back?
So, you tell yourself to wait and hope it will turn and at least break even before you to exit.
But wait a minute! The loss is too much, you think it’s probably a good idea for you to exit. But it’s late now and you’ve probably drained half of your account!
Have you ever been here?
Just life in real life and relationships, losses are often very painful.
The truth is, losses are painful, and most of the time we are tricked to stay in the toxic relationship to avoid the pain of leaving the market and accepting the loss.
Usually, the situation only gets worse and the likelihood of draining your account gets even higher.
Even if you pull this and the trade turns around to your advantage, chances are that you will try it again and this time it’ll be too late to salvage.
The best way to handle the situation is to set a fixed risk limit. Once the price hits the stop loss, exit the trade.
Make your trading mindset aware of the common beginner trader mistakes so you can avoid them.
Focusing on just the good trades
As easy as it may sound, this is something that has affected many traders and even resulted in them quitting.
Obviously, that the market is full of uncertainties and if you are looking for reasons to fail you will find many.
By focusing on the fails, you will create fear which will stop you from entering even the perfect trades.
Conversely, if you believe you will succeed you will notice the good trades more, as the positive will stand out to you.
Here is what I mean…
Have you ever been pregnant or wanted to be and then all of a sudden you see so many pregnant ladies?
Where did they come from?
There is the same amount of pregnant ladies but they just stand out to you now that is what you want to or are experiencing yourself.
Be balanced. Don’t be blinded by just good trades.
The same thing applies to trading.
If you focus on the good trades you will notice the good trades.
That’s why you need to focus on the trades that are likely to succeed!
Trading success is a journey and wise traders learn from their mistakes. Input changes into your trading routine and systems to improve your performance. And don’t be fearful of mistakes you make, they help you to improve.
In fact, being wrong can make you money… (in the long run)
You can help with the fear of putting on a trade by mentally practice trade outcomes and how you can correctly react. This will stop knee jerk or panic reactions. Every bad habit you realise you have can be removed by mentally rehearsing and removing them. By controlling your mindset you’ll limit the mistakes that beginner traders often make. Good luck!
I know I promised I would tell you some of my tricks and the things I use for my trading. Here is my ultimate guide to resources for traders.
Don’t worry, the time has come for me to present you, ladies, the top 4 trading resources for beginner and experienced traders. They’re even better than all the make-up hints I could give you right now – and trust me, those would be pure gold.
This of this as the perfect trader toolkit – just like you need your perfect make-up tool kit.
Our brains are our usual enemies, though. But don’t worry about being weak, don’t be afraid to fail. After all, we’re women – and you can’t get any stronger than that.
If you use more than one of these new trader resources. I guarantee that your wildest financial dreams will come true. It doesn’t matter if your dream is
Buying your own house
Paying for all the things you ever wanted to give your kids
Taking a trip to Brazil
Stop working in a super boring job
Submerging your body in a mountain of shiny summer dresses.
Let’s start with Plus500. This is a nice and easy platform for traders, that can help you learn trading inductively. It means you learn by doing it. They allow you to open demo accounts and help you learn through raw practice.
Nobody can ever teach you how to be a mom unless you become a mom, for example. So… why not learn to trade by trading?
If you are the type of person that learns easier by doing, Plus500 is great for you.
Along with Plus500, eToro teaches you trading inductively.
Their demo account helps you practice trading without any money on the line. I’ve actually written an article about real and demo accounts. If you’re interested in learning how to go from one to the other, check it here.
You can start in eToro by putting some money in fixed income investments, to get you going. Then take some risks on eToro’s home broker – conscious risks, of course, because you’ll be following all the tips of this article!
eToro also allows you to follow the mainstream traders and copy their investments. This is ultimately the best thing about this platform.
It’s not because we’re dumb that we don’t read books, right? In fact, this whole website was created to enhance our trading skills and intelligence.
“Dumb bitch” will become a funny little joke of your past. You’ll laugh about it with your kids by the pool of your mansion – bought only with your trading profits.
I refuse to let you remain in this situation of ignorance. The key resources for successful traders are all laid out here. That’s why I’m listing some books that help you learn how to trade. You’ll find the full list of books for traders here.
Reading books is the best way to grasp the basics and advanced of anything. You’ll be dealing directly with experts on the field of trading! If you want to read some more about each of these books, you can check it here.
3. Best courses to learn trading
I know you’ve already watched a YouTube tutorial on how to apply a certain type of make-up, or someone teaching which clothes to wear.
Well, YouTube is perfect for a beginners’ make-up tutorial, but don’t even try to become a professional by only watching it.
It takes even more attention to detail to learn how to trade. You’re dealing with money (YOUR money) – and let’s face it, losing money is worse than going to a party with the wrong clothes.
That’s why I took trading seriously. And you should too!
Besides watching YouTube videos (and yes, I did!), I bought online courses. These were made by people that had studied finance and had experiences in trading.
Some of the courses I bought, watched, loved, and recommend are:
This trading course is helpful for beginners because it guides you step-by-step into stock trading. The best part is that you have access to the weekly setups and, the best part for me, a forum.
The resource of a forum in an online course is core for me, just like a bag to keep all my make-up in when I go out!We can share our concerns, theories and, best of all, we find some girlfriends interested in the same things as we are: TRADING!
If you want to deepen yourself in trading and trading analysis, this is the perfect course for you.
The thing I love about this course, other than the richness of information they give and the trader support is the price. You know I adore things that are cheap and useful at the same time: that’s what this course is!
Having access to a trading journal has been a game changer in my trader path. I’ve written about my experience with Edgewonk’s trading journal in here.
An effective trading journal really is one of the most underrated resources for traders.
Nothing has been helping me so much during trading than journaling and keeping track of my trades. Besides that, Edgewonk is my best friend when it comes to feedback: by using it, I know if my tradings for the week were “loser” or “winner” moves.
Starting something new is never easy. Especially something that you’ve never been taught, costs money and has been designed in a way that really isn’t easily accessible to women. Well, here are 11 ways for you to learn to trade that will be as fun and female friendly as possible!
And, unlike many other money-making opportunities the skills and strategies you pick up from trading will be relevant in a month, a year or even decades after. All you’ll need is time, patience and the right mindset.
Ready to make some bank? Check out these 11 great ways to learn stock market trading:
1. Dive Right in!
Sometimes the best way to learn the basics of trading is to take the plunge and head straight to the online trading platform of your choice. Sign up for an account, soak in all that free trading content and trading tools, then familiarise yourself with the dashboard.
There’s also way you can learn to trade without losing actual money. Many offer virtual trading or demo accounts, which is like real trading but with play money. To make it easy, I’ve already done the research for you with the top brokers and platforms here.
2. Drown Yourself in Books
Put down that Fifty Shades and Eat, Pray, Love book everyone’s been gushing about and start reading books that offer trading for beginners. If you like reading and consume content better this way, then these will better than e-courses, webinars and online lectures for you.
If you’re at a loss on what to read, consider William O’Neil’s How To Make Money in Stocks or do a Goodreads search on the best stock trading books available today.
Like when you want to find a new recipe or new outfit, just looking online you usually find it. It’s a massive resource for everything, including learning how to trade. For example, StockTrader.com has a free educational page that has more than a hundred different stock and trading articles divided into helpful categories. Afterwards, you can head over for supplementary courses courtesy of Investopedia.com.
Think of a stock trading mentor like your favourite celebrity or that YouTube girl who gives out great advice regarding beauty tips, makeup and skincare regimen. My favourite is Laura Lee.
In the same vein, that mentor should guide you, recommend useful tools, hand out tips and make sure you learn the ropes of the trading industry.
Everyone has a mentor these days, and it makes learning that much easier. May be get started with this huge list of female traders on Twitter to see who you have the best fit with – and be sure to follow dumbbitchtrades on Instagram.
5. Positive Peer Pressure
Upgrade your friends. I’m not saying your real girlfriends and BFFs, but who you follow online. Instead of just the latest Kardashian craze or fashion line, get your social feeds and notifications full of successful traders will not just inspire you, but also teach you.
Click on that “Follow” button on Instagram and Twitter to get a live feed from experienced traders and investors. A list of popular women traders on Twitter is ready and waiting to give you that head start.
6. Learn from The Best Traders
Warren Buffet. Paul Tudor Jones. John Templeton. Benjamin Graham.
What do they all have in common? These are the Kylie Jenner, Beyonce and Kim Kardashian of the trading and investment world. Read everything you can about them, including their trading game, investment strategies and how they approach stock opportunities in general.
We’re talking about another kind of market, one that doesn’t sell fresh produce or the latest fashion lines.
It’s called the stock market, and it’s one of the most important tools you’ll need to have up and running all the time if you’re totally serious about trading. Start out by visiting sites such as Google Finance and Yahoo! Finance to get your feet wet, and if you’re ready then it’s off to stock market staples Bloomberg and Wall Street Journal.
Read headlines, monitor the market and look for 3rd party analyses, trends and economic concepts.
8. Take A Few Online Trading Courses
If like me, you learn by seeing and experiencing, not reading, then this may be a great place to start for you. Sign up for a trading course to get deeper learning on how to start trading stocks. If there are physical courses and seminars available in your area, great (and see below).
For starters, you can take the College Investor’s Investing 101 for an easy-to-follow primer on the stock market as a whole. IBD, or Investors Business Daily is a great platform for various trading courses, workshops and useful tools.
9. Attend Physical Trading Seminars And Courses
As much as us girls like keeping up online, we also like a good face-to-face get together. So why not do trading like the old days and attend physical trading events and seminars. Network and mingle with fellow investors and listen to the success stories of real individuals who found their footing on the stock market. The great thing about these is that most are free and you get a chance to make new friends who you can learn from and be supported on your journey.
10. Start Trading Small
Your first trade should be conservative. You should never trade more than you can afford to lose. But when starting, it should only be a small percentage of your total pot. Ease yourself to the real world of stock trading, there really is no need to jump head over heels on day one.
Your first boyfriend is rarely the right one.
Trading is the same.
Only through many dates and some bad boyfriends do you find out what is right for you.
Don’t go on a full-blown portfolio or larger positions until you’ve had a good grasp of what’s going on, and what it takes to consistently start making profits. Divvy up your money on several positions so you can stay in the game longer. If you don’t have access to real capital, consider trading via virtual money on a stock simulator or demo trading account.
If you’re more the observe-and-learn kind of woman then you may want to consider paid subscriptions. These are online programs that allow you a bird’s-eye view of typical trading activities from independent traders.
Everyone wants to make money while they sleep. Yet, with most banks paying under 2% interest, where should you put your money to work hard for you?! A bank paying only 2% interest means a passive income of £20 from £1,000 saved. That won’t add-up to wealth (or shoes. or handbags, or a life on the beach quickly). So, just where should you put your money with a high return passive investment that pays more than banks?
After all, the financial market may seem tricky as hell if you don’t know where to look.
We’ll help you to figure out how to earn some extra cash without any sweat! Investing in a high return passive investment is a powerful way to do that. You don’t have to be an expert; you just need to know the basics!
There are many ways to invest. Lending money to banks and financial institutions is the most common path people go, but when you do that, you’re lending money for them to lend it to other people.
To put in short words: your money is worthless when you lend it to banks because banks take part of your profit!
When it comes to passive investments, there are more creative and profitable ways to invest. You might think some high return passive investments aren’t your profile, but they’re achievable and we’ll help you with that.
Many of the examples given are of crowdfunding investments.
These types of investments in sharing economy are made towards people who don’t have the minimum amount of money to lend.
These people get together and lend the money collectively. The profits are then divided between them, according to the percentage of the initial investment.
If you want to keep your money away from the banks tiny return and on high-return passive investments, we’ll help you find out the best way by showing 5 high-interest passive investments:
High Return P2P lending
Peer-to-peer lending – or P2P – is a well-known type of crowdfunding investment.
P2P, as the name suggests, enables people to invest directly to other people and/or companies. When I say directly, I mean that you don’t need the intermediation of the bank!
Remember when I told you that the bank takes part of your profit when you lend the money to it? Well, it doesn’t happen in P2P lending!
When a person is starting a business, planning a wedding or a vacation, she might need to borrow the money.
These people will borrow the money directly from you and other people’s hands.
As you won’t need to lend it to a bank first, the interests of your share will be fully yours. As the people who need to borrow the money don’t have to pay for the high interests at a bank, they’ll prefer to borrow it from you!
A more profitable investment;
Lower interests when borrowing.
You have to be at least 18 years old;
You need a valid social security number;
People can refuse to pay you back, but they suffer from some consequences, as their credit score lowers so much they won’t get any more loans.
These sites are made to connect the lender (you) to the borrower (your client).
There are some websites that offer investments in the U.S. as well, like Lending Club, and Prosper.
All of them are self-explanatory, you just have to create your account and prepare the cash. Usually, the minimum amount of trading in P2P is only $10!
Passive Income with eToro Copycat Trading
I’m a huge fan of eToro, they’re really innovating in a stale financial sector. One of teh best features of eToro is copycat trading where you automatically mirror a professional trader’s activity. Some traders have returns of 10% – 25% annually, which for you means high return passive income!
Their CopyTrader technology enables clients to replicate another trader’s portfolio and trading activity automatically.
In this case, you can make some researches on a well-experienced trader and inspire yourself by copying her or his investments. eToro is like Facebook: you will see where and how other people invest and you can learn from it and copy their investments too!
To invest in eToro’s, website, you have to create an account. The minimum amount to invest is $50. Their system is simple: if you want to copy, you’ll feel like choosing a cute summer dress from your wardrobe! Just select the trader you like (like looking at a Facebook profile or dating site), including their past trade history and off you go!
They also have a Copy Portfolio feature, which does the same but for longer term investment portfolios.
Diversity – whenever you invest, you’ll need diversity. You can’t put all the eggs in the same basket: if it falls, every egg will break! With eToro social trading, you can copy many different traders, and they usually invest in many different things so you can be really diverse.
You can be an amateur – if you understand the basics of how eToro’s website works, you can easily copy a successful trader, and you won’t need to worry about losing a lot of money.
There is a training mode! – eToro’s platform offers a fictional amount of money for you to play! So, before depositing any money, you’ll have the opportunity to see if it will work for you.
Like any other investment, you can lose money! You may be copying an experienced trader, but she or he can fail too. So, it’s important for you to check the trader’s history.
Imagine a pool. No, not a pool by which you and your girlfriends are taking a sunbath. It’s a pool of money.
Different people can throw money at this pool and a company manages the process, counts the money and lends it to other companies. This is an investment fund.
The investment funds are regulated by the government. The management companies lend the sum of money of all the investors, receive the assets, cash their share (after all, they are providing you a service) and then divide the remaining assets between the original investors.
That’s how you profit!
Before investing in an Investment Fund, you should read its prospect carefully. A prospect is a document the funds must have to explain to the investors what will be made of their money.
There are different types of Investment Funds: the management companies have profiles that choose if the investments will be made actively or passively.
Don’t freak out, it is a lot of information, but once you know it, you’ll be rich, baby!
Active x Passive Funds
In actively managed funds, there is a singular manager for each fund, which makes it more personalized. The manager of the fund will forecast and research about the funds. The price of the services of the manager, though, is passed on to the shareholders – which means you.
In passively managed funds, there is no need of analysts and researchers, as these funds copy the market index (we’ll talk about it later). They are less expensive, safer and simpler to deal with.
What do you imagine an investor to be like? We think they are always in front of a computer with this screen turned on:
These are the indexes/trackers. Indexes are a way investors and analysts measure how the market is behaving. With the variations of the indexes or trackers, they can use a benchmark to evaluate their own portfolios.
There are already pre-made benchmarks. The S&P 500 is a widely used benchmark that evaluates individual portfolios (and you can use it to evaluate your own!).
High Return Property Pooling
Property Pooling is another type of crowdfunding investment. In the U.K., this investment can be made through websites such as The House Crowd. They have passive returns far higher than banks ranging between 5% (peer-to-peer funding) and 10% (development finance) depending on the type of investment. Plus, they also have an ISA option.
You can earn x5 more than having savings and investments earning interest from the bank.
When you invest in Property Pooling, you are lending the money to a company to build and sell properties.
There are two types of Property Pooling:
You can receive the money completely by the end of the construction and selling of the property.
You may choose to be a shareholder that receives the dividends, which depend on the rental income In this case, you receive money quarterly, and, if the property is sold, you’ll receive your share in the selling.
This is a nice source of income, but remember that you are susceptible to the fluctuations of the market.
For example, in the first case, you might not be able to sell the properties for the forecast prices.
In the second case, the annual share depends on the rental income, so it may vary.
Passive Income from Crypto Mining
Have you heard of bitcoin? Probably yes. Usually, they are represented like this:
Bitcoins, however, are not the only coins in Crypto Mining (a modern way to “mine”). You can find in the market cryptocurrencies like Litecoins, Dogecoins, and Feathercoins. Differently from Bitcoins, they have better for beginners in the field (which means you and me).
Cryptocurrencies are, in other words, digital coins that use cryptography. These “coins” are registered at virtual addresses called wallets. They can be transacted from wallet to wallet by their owners.
These transactions are registered in a structure called block. These blocks are connected one to the other, forming a blockchain.
Whenever a cryptocurrency transaction is made, the miner is responsible for the information.
When you mine, you are competing with other miners to solve difficult mathematical problems.
Crypto mining can be complicated, but your money will reach another level if you want to buy coins that were already mined!
What high return passive investment feels right for you?
Any of these investments are better than leaving your money in the bank. This was a quick overview, so if you are still afraid of any of these investments, research a bit more about them and see if there is one you identify the most!
Start investing the money you won’t miss. No more working for money, start making money work for you!
What do you think of these 5 ideas of high-interest investments? Comment and share it with your friends!
With over 1,000 results on amazon for ‘learn to trade’ books, how do you know which are the best books to learn to trade?!
Learn to trade books on Amazon
Where to get started in books to learn trading?
Tell me to stop if I get too personal…
You wake up in the morning and the first thing you do is to look for a business newspaper to check the market.
The next thing is to spend hours watching TV and charts trying to find the next plausible jump in the market. And if you do, you can’t rest from constantly worrying about the money you’ve invested on the market.
Ladies… we can’t afford all that. We have too much to worry about to keep our hearts in our mouth.
We need intelligent investing that can give us a good night sleep while making some profit. So, we need to model the processes used by successful traders.
And what’s better than to learn directly from them?
Luckily, a number of experts have made every aspect of trading easily accessible through their books.
You can easily enhance your wisdom and knowledge about investing by reading the following books:
Technical Analysis Using Multiple Timeframes – Brian Shannon
If you are a technical trader, this book will bring a wide appeal to you. It highlights the value of applying technical analysis on multiple time frames while you identify the ones with the highest probability of success.
You’ll also get the opportunity to learn about short selling, stop loss, price target identification, order placement, and other topics.
Trading Options: Using Technical Analysis to Design Winning Trades – Greg Harmon
Even though technical analysis is not common in option trading, you can make a fortune from it.
This book gives you tips and tricks of using technical analysis while trading options. It’s short, concise and gives you guidance on how you can determine entry and exit signals on option markets.
If you are looking for a different way to look to the option market, this bad boy is the way to go!
Japanese Candlestick Charting Techniques – Steven Nison
Get everything you need to know about candlestick plotting and analysis.
From the book, you will learn from Nison’s years of practical experience in candlestick chart market analysis along with hundreds of examples that show how you can use candlestick chart techniques to make a profit.
Books on Trading Strategy
Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets
This book was the first to quantify one of the most important concepts in trading; the four stages in which stocks move, which are the basing, advancing, topping, and declining stages.
Despite the fact that the cover of this book has not been updated since it was published in 1988, stage analysis is still relevant today.
Day Trading Swing Trading The Currency Market – Kathy Lien
Kathy is a currency trader and possesses a very high level of experience. Kathy seems to spend more time on books than in the markets given the number of her published bestsellers. The name of the book is “Day Trading and Swing Trading: Basics Strategies and Techniques To Have a Profit From Market Move“.
This book is “a must” for all those who want to learn how to improve their profits in the largest market in the world.
The Stock Twits Edge: 40 Actionable Trade Set-Ups from Real Market Pros
Okay, before you accuse me of trying to kiss the ass of the folks at StockTwits, let me just tell you that I’ve been recommending this book publicly forever.
This is the book I wish existed when I started trading 30 years ago.
It is the “Market Wizards” for the retail trader, and more importantly, each chapter is written by someone who currently has an active presence on social media.
How to Day Trade for a Living – Andrew Aziz
In this book, Andrew Aziz outlines all the basics about day trading in any type of market. The book explains the most important trading strategies and the techniques which anyone should know in depth.
As a matter of fact, one of the most important aspects of this book is the section about the strategic guides (obviously). You’ll find this section in the middle of the book onwards.
We are sure that, if you can manage to use the notions and suggestions offered by Andrew Aziz, you’ll have a good chance of making as few mistakes as possible in your future trades.
Trade Your Way to Financial Freedom
Yes the title is cheesy and sounds like something from a late-night infomercial. Yet, this book has one of the best overviews of the different types of methodologies you can. All with the aim to make money in the markets.
Books on Trading Psychology
The Trading Book: A Complete Solution to Mastering Technical Analysis and Trading Psychology
Want to trade big?
Anne Marie, former neuroscience researcher teaches you her combination of analytic and psychology approach to mastering the market.
The book is full of insightful interviews, exercises, guidelines and case studies which will help you achieve your long-term financial goals. It gives you a perspective that many trading books are lacking.
When you read this book to the last page and understand you are guaranteed to feel and trade like a pro!
Trading In the Zone – Master the Market with Confidence, Discipline, and a Winning by Mark Douglas
Looking for an insightful and engaging book to read? Go for this one!
The psychological and emotional principles that you’ll learn from it are absolutely reflective!
From the first chapter, you will easily relate since it describes most of the common shortcomings of traders.
If you are one of those traders ran by fear and anxiety while trading or even too scared even to place a trade, this is a must read!
The Disciplined Trader: Developing Winning Attitudes-
See how you can transition from making a bad trading decision to being one of the successful traders in the market!
Mark Douglas shares his personal experience of trading decisions that made him lose almost everything. This experience made him to self-examine and discovered the emotions and fear behind it all.
In the book, he is practical and thorough in the analysis and advice and by following them you’ll develop the correct mental framework to trade through probabilistic thinking.
Books on Trading Experience
How I Made $2,000,000 in the Stock Market
This book should really be called, “How I Made $18,000,000 (adjusted for inflation) in the stock market,” because that is how much it would be in today’s dollars.
That would be phenomenal for anybody, but for someone who did it while traveling the globe, in a pre-internet, computer, iPad, smartphone world……while working as a professional dancer? Well, that is just epic.
Market Wizards – Jack Schwager
How better can you learn about traders’ mindset and behaviours than to learn directly from them?
The Market Wizard will give you the opportunity to directly learn from some of the top traders. It composes of interviews from the successful traders which provides you with insight on how to trade the market. Plus, with the trial and tabulation they have overcome in their own trading journey.
This book is informative and engaging with something for everyone.
Reminiscences of a Stock Operator
The language is dated and colloquial, which though strange, is actually part of its charm. There are definitely some foundational lessons for trading in this book, but you as the reader have to do the historical conversion in your head. This means from venues like “bucket shops” to today’s market.
One Good Trade: Inside the Highly Competitive World of Proprietary Trading
If you want to know what it’s like trading in the real world of a prop firm, this is the book. Even more, the book shows you how to focus on the process instead of profits to become a successful trader.
The writing style is very entertaining and no matter how many times you read, it never gets boring!
The 50 Best (and Worst) Business Deals of All Time
This book is like eating a piece of candy – you will enjoy it so much and will be sad when done. The book breaks down 10 rules that you should follow and uses 5 prominent business deals to illustrate each rule.
The rules are well written and as you read each deal, you get a better understanding of how to make a better deal or better trade in this case.
Best books to learn to trade
What other books did you use to learn to trade? Any other recommendations?