Trading stocks online for a living
Business and Services Directory. Trading stocks online for a living has a strong investment culture, with products ranging from the excellent to the downright dubious; so much so that an investment here should be seen as an entrepreneurial exercise with 'investor beware' as a constant and very serious watchword. It is often useful to use a 'platform' to administer German investments.
Investors always retain the ownership of their assets, but the collection of dividends and payments from stocks, bonds and funds is automated and efficient. Above all, the annual costs of using a platform are low. US citizens can invest in stocks, bonds and funds as long as they do so via a platform that is willing to make the necessary income reports to the IRS. Most German organisations refuse to do this, being wary of the penalties for making an error or omission.
There are however enough professional platforms available to US investors residing in Germany to be able to make a considered selection. The tradition in Germany has long been to buy financial products from trading stocks online for a living of the very many banks here.
An investor must be aware of the risks involved in using this source of advice and product. The German commercial and savings banking system is trading stocks online for a living efficient sales machine, lacking the strong controls or serious supervision from central authorities and happily unencumbered by any but the most minimal consumer protection laws.
Those bank employees with direct customer contact are often judged for the furtherance of their careers by their ability to sell their employers' financial products. Banks have mainly their own and a small selection of other products available for sale to customers; in our experience of unwinding unsuitable investments, these products are placed with clients with scant regard paid to their suitability.
It should also be remembered that banks can afford better and more expensive attorneys than most of their trading stocks online for a living and the enforcement of investors' rights could be a long drawn out and expensive process. Very often, depending on an individual's credit worthiness, a bank will suggest extending a loan to allow an increase in the investment in that bank's fund products.
Unless a desire for risk lies prominently in mind of an investor, such leveraging should be resisted, as any losses are directly for the client's account and a leveraged position loses money at a much faster rate than simply using available funds. Some investment advisors are biased, whether legally or emotionally, to the products of a single fund company or KAG.
The emotion all too often has a direct correlation with the level of front end fees paid to the agent. This is fine if an investor knows precisely which stocks, bonds or funds they trading stocks online for a living to invest in, but is less useful when seeking independent advice. Investor and consumer protection legislation is less advanced in Germany than in many other countries; the result is that an investor can receive assurances that stand little or no chance of becoming reality.
Independent advisors undertake their own analyses of an investor's ability and willingness to take risks, as well as using quantitative and qualitative methods to find the most suitable investments. They will provide an investment concept based on matching the clients' needs with suitable investment products and will give this report in writing for the investor to consider.
We strongly recommend that if an investment advisor is unwilling to commit their thoughts to paper by providing such a written concept, a potential investor should look elsewhere. If a foreign investor leaves Germany, the funds have to be left behind to accumulate until they mature and will then be paid out only as a life-time annuity.
There is a risk ladder which offers broad guidance on investment products for investors of different temperaments; the investment markets should only be used by longer term investors and a time horizon of less than 3 years runs the risk of falling between adverse market cycles. There is no good reason to risk capital losses within a short investment time horizon. All prospectuses have to be approved by the German authorities BaFin as far as the structure of their contents is concerned. Successive governments have worked hard to close the loop-holes that their predecessors might have thought a good idea.
Sometimes the volte-face can be retroactive, which causes consternation, but normally there is fair warning of impending changes. Many tax laws have not been as carefully drafted as one might have hoped, with the result that the courts rather than the government end up as the final arbiter of what was intended, and tax laws being newly interpreted. The change was preceded by trading stocks online for a living fanfare of new products, but in the end came at the same time as the worst economic crisis in living memory, resulting in a muted response from investors whose portfolio values had fallen so far that it would be some time before a capital gain could become a meaningful prospect.
All new investments will however be subject to the new tax structure. There is an annual Euro Euros for a married couple tax trading stocks online for a living on income stemming from interest and investments; this can be divided up between institutions, but the tax authorities seriously object to any attempt at exceeding the overall allowance and the punishments can be painful and are well worth avoiding. There are some, though very few, exceptions to the general dearth of tax sparing schemes.
For instance double taxation agreements between Germany and several other countries, resulting in potentially useful tax allowances or an investment in property. It is important trading stocks online for a living all foreign investors considering an investment trading stocks online for a living any German investment market should consult a tax specialist before making a decision.
A tax consultant in Germany, ever mindful of their potential professional liability, will not trading stocks online for a living give an opinion on the economic viability of a project, but will give a confirmation or denial if necessaryof the stated tax implications of an investment.
John Townsend advises clients on their investment portfolios for Matz-Townsend Finanzplanung. There are dozens of categorized listings of products and services for Expats in Germany. How To Germany Newsletter Sign-up. Investing while living in Germany, Yes you can! Seeking advice on investments The tradition in Germany has long been to buy financial products from one of the very many banks here.
Investment products to consider There is a risk ladder which offers broad guidance on investment products for investors of different temperaments; the investment markets should only be used by longer term investors and a time horizon of less than 3 years runs the risk of falling between adverse market cycles. From the least risky to the most adventurous: Taxation Successive governments have worked hard to close the loop-holes that their predecessors might have thought a good idea.
Basic principles of investing in Germany Treat all complex trading stocks online for a living using multiple products with suspicion; they are rarely designed to be in the best interests of the investor. There are no rules governing the promise of abnormally high returns to potential investors; if an investment scheme sounds too good to be true, it probably is. Beware of imprecise claims regarding the returns from an investment.
The magic words 'Chance auf', all too often followed by a very high percentage yield, are almost always based on an improbable combination of events; if the goals are indeed ever achieved, it is probably due more to accident than design. Without regard to your own political views, it pays to be financially conservative.
Always consult an independent advisor and insist on receiving a copy of all documentation, including a record and risk analysis of your needs and wishes, an up to date prospectus and any application forms. You will need these in case of a dispute. Investors have a two week cooling-off period after the signing of an application form. This is your right, you should be aware of it and use it if you feel even remotely uncomfortable with a suggested investment.
Guarantees are only as good as the company that issues them.
Day trading in stocks is an exciting market to get involved in. Stocks are essentially capital raised by a company through the issuing and subscription of shares.
While stocks and equities are thought of as long term investments, they offer exciting opportunities for day traders. The ability to short prices, or trade on company news and events, mean short term trades can still be profitable. This page will advise you on which stocks to look for when aiming for short term positions.
It will also offer you some invaluable rules for day trading stocks to follow. Day trading stocks today is dynamic and exhilarating. On top of that, they are easy to buy and sell. With the world of technology, the market is readily accessible. The liquidity in markets mean speculating on prices going up or down in the short term is absolutely viable. Also, stocks are relatively straightforward to understand and follow. Whilst day trading in the complex technical world of cryptocurrencies or trading stocks online for a living may leave you scratching your head, you can get to grips with the triumphs and potential pitfalls of Google and Facebook far trading stocks online for a living.
Before you start day trading stocks, you should consider whether it definitely suits your circumstances. For example, intraday trading usually requires at least a couple of hours each day. One of those hours will often have to be early in the morning when the market opens.
Longer term stock investing, however, normally takes up less time. This is because you have more flexibility as to when you do your research and analysis. In addition, intraday trading returns can exceed those of long-term investing. This in part is due to leverage. This allows you to borrow money to capitalise on opportunities trade on margin. However, with increased profit potential also comes a greater risk of losses.
On top of that, you will also invest more time into day trading for those returns. You could also argue short-term trading is harder unless you focus on day trading one stock only. This is because interpreting the stock ticker and trading stocks online for a living gaps over the long term are far easier. However, this also means intraday trading can provide a more exciting environment to work in.
There is no easy way to make money in a falling market using traditional methods. Day traders however, can trade regardless of whether they think the value will rise or fall. Overall, there is no right answer in terms of day trading vs long-term stocks. Spotting trends and growth stocks in trading stocks online for a living ways may be more straightforward when long-term investing. Having said that, intraday trading may bring you greater returns. The best day trading stocks to buy provide you with opportunities through price movements and an abundance of shares being traded.
This will enable you to enter and exit those opportunities swiftly. These factors are known as volatility and volume. Volume is concerned simply with the total number of shares traded in a security or market during a specific period. Each transaction contributes to the total volume. If just twenty transactions were made that day, the volume for trading stocks online for a living day would be twenty.
How is that used by a day trader making his stock picks? Volume acts as an indicator giving weight to a market move. If there is a sudden spike, the strength of that movement is dependant on the volume during that time period.
If you have a substantial capital behind you, you need stocks with significant volume. Whilst your brokerage account will likely provide you with a list of the top stocks, one of the best day trading stocks tips is to broaden your search a little wider. Look for stocks with a spike in volume. If a stock usually trades 2. If your chosen platform fails to offer a rigorous screener for high volume stocks, utilise these alternatives:. If it has a high volatility the value could be spread over a large range of values.
This would mean the price of the security could change drastically in a short space of time, making it ideal for the fast-moving day trader. One way to establish the volatility of trading stocks online for a living particular stock is to use beta. A stock with a beta value of 1. On the flip side, a stock with a beta of just. How you use these factors will impact your potential profit, and will depend on your strategies for day trading stocks.
Now you have an idea of what to look for in a stock and where to find them. Trading stocks online for a living is a breakdown of some of the most popular trading stocks online for a living trading stock picks. Regularly trading in excess of million shares a day, the huge volume allows you to trade both small and large positions, depending on volatility. You could also start day trading Australian stocks, Chinese stocks, Japanese stocks, Canadian stocks, Indian stocks, plus a range of European stocks.
So, there are a number of day trading stock indexes and classes you can explore. Furthermore, you can find everything from cheap foreign stocks to expensive picks. All of the strategies and tips below can be utilised trading stocks online for a living of where you choose to day trade stocks. Timing is everything in the day trading game.
With that in mind:. The pennant is often the first thing you see when you open up a pdf of chart patterns. The converging lines bring the pennant shape to life. You should see a breakout movement taking place alongside the large stock shift. You will then see substantial volume when the stock initially starts to move. Finally, the volume in the pennant section will decrease and then the volume at the breakout will spike.
You will normally find the triangle appears during an upward trend and is regarded as a continuation pattern. Less often it is created in response to a reversal at the end of a downward trend. Whenever they do occur, ascending triangles are bullish patterns when the small black candlestick is followed by a big white candlestick that totally engulfs the previous candlestick.
Although often a bearish pattern, the descending triangle is a continuation of a downtrend. Less frequently it can be observed as a reversal during an upward trend. Just a quick glance at the chart and you can gauge how this pattern got its name. Usually, the right-hand side of the chart shows low trading volume which can last for a significant length of time. Straightforward to spot, the shape comes to life as both trendlines converge.
They come together at the peaks and troughs. The lines create a clear barrier. If the price breaks through you know to anticipate a sudden price movement. Rather than using everyone you find, get excellent at a few. The patterns above and strategies below can be applied to everything from small and microcap stocks to Microsoft and Tesla stocks. If you like candlestick trading strategies you should like this twist. A trading stocks online for a living chart tells you four numbers, open, close, high and low.
But you use information from the previous candles to create your Heikin-Ashi chart. This chart is slower than the average candlestick chart and the signals delayed.
This is part of its popularity as it comes in handy when volatile price action strikes. The strategy also employs the use of momentum indicators. A simple stochastic oscillator with settings 14,7,3 should do the trick. If you see that two candles, either bearish or bullish have fully completed on your daily chart, then you know the pattern is valid. These charts, patterns and strategies trading stocks online for a living all prove useful when buying and selling traditional stocks.
However, they may trading stocks online for a living come in handy if you are interested in the less well-known form of stock trading discussed below.
Every day thousands of people turn on their computers in the hope of day trading penny stocks online for a living. But what exactly are they? To help you decide whether day trading on penny stocks is for you, consider the benefits and drawbacks listed below. Unfortunately, many of the day trading penny stocks advertising videos fail to point out a number of potential pitfalls:. Perhaps then, focussing on traditional stocks would be a more prudent investment decision.
However, there are some individuals out there generating profits from penny stocks. So, if you do want to join this minority club, you will need to make sure you know what a good penny stock looks like. On top of that, when it comes to penny stocks for dummies, knowing where to look can also give you a head start.
For example, the metals and mining sectors are well-known for the high numbers of companies trading in pennies. Overall, penny stocks are possibly not suitable for active day traders. However, if you are keen to explore further, there are a number of day trading penny stocks books and training videos available.
From above you should now have a plan of when you will trade and what you will trade.