Category Archives: Trading Strategies

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How to Trade when the Headlines Read like a Horror Story

Have you noticed that the latest global news headlines have been a cross between a comedy and a horror movie? Between planes going down, hundreds of thousands of refugees wandering the world, the threat of global terrorism, and indecisive Federal Reserve and an impending United States election with comical candidates, there’s a lot to read about but trade the news not necessarily a lot to trade about if you’re a news trader. In fact, if you you’re probably interested in more than just the announcements coming – and with good reason. There’s a lot going on, and a lot to be worried about looking towards 2016. But it probably doesn’t have much to do with the market. So what’s a trader to do?

Keep Things in Perspective

It’s not hard to get scared when reading about ISIS, even when you don’t live anywhere near the Middle East. But as a trader, it’s important to realize that while there is a lot of political unrest to be fearful of, it’s not likely to impact the markets in any significant way, at least not in the first quarter of 2016. The refugee crisis which some analysts fear may have more immediate financial repercussions is questionable at best. The refugees have currently arrived predominantly in Greece, and some in Germany. Greece’s economy is already floundering – the influx of immigrants certainly won’t help them, but considering that Greece hasn’t been a strong global player in the past few years, further weakening won’t likely have global repercussions. Germany, on the other hand, has a fairly strong economy and a leader that seems to have plans for the migrants, making the thread of financial instability less worrisome than doomsday-seekers might think.

Stay Focused

For traders, the problems going on in China may be bigger than the threat of ISIS. China’s dismal reports lately have certainly thrown a wrench into a significant part of the global economy, affecting both the most populous country in the world and the countries dependent on China for financial investments and its formerly huge purchasing power. If you’re trading emerging markets and exotic currency pairs you may want to step aside for the moment to see how things develop towards the end of the year and if plans are put into place to ameliorate the problem.

Likewise, oil trading may be something to focus on if you’re a news trader, as prices remain at remarkable lows and the formerly powerful oil producers are suffering from both political unrest (and sanctions) and overproduction of oil elsewhere. That being said, there may be some great oil trading opportunities ahead for those who know how to read between the headlines and to stay focused and patient as things develop.

If you’re staying on the sidelines these days there’s nothing to be afraid of – trading opportunities will be coming along, especially as the holiday numbers and end of year reports begin to unroll. Now’s the time to brush up on your strategies, practice new ones so that you can keep your Forex trading psychologyand most importantly, review your emotions in check during these hectic times. This time investment now will likely pay off financially later.

Becoming a Better Forex Trader – Lessons Learned from Better Place

Photo credits: Better Place

Anyone interested in technology, the environment or the automotive industry has certainly heard about Better Place, an innovative Israeli company whose aim was to popularize electric cars that are not reliant on traditional fuel, a commodity whose price has continued to rise in recent years, plaguing consumers, especially those facing financial struggles during the downturns in both America and Europe.  In only 6 short years, Better Place created a model of a fully battery-operated Renault car, rolled out charging stations throughout Israel and Denmark, and put forth its idea that cars could run electrically rather that being dependent on crude oil prices and other factors that influence the price of gas.  Despite the hype and efforts invested into marketing the benefits of this unique transportation model, Better Place cars never took off, and today plans to dissolve the company have been announced.  Perhaps it was the small sample size of the countries selected for the pilot, or the scalability of the model and the inability to execute it on a large scale, which made it nearly impossible for Better Place to begin in a larger market.

And yet, there are certainly lessons that can and should be learned from this expensive endeavor – lessons that shouldn’t go unnoticed or ignored by Forex traders (or entrepreneurs) at any level.

1- Even professionals make mistakes. In 2003, before founding Better Place, founder and original CEO Shai Agassi was named by CNN-Time Magazine as one of the top 20 “Global Influentials,” and founded several successful technology companies which were later acquired for hundreds of millions of dollars.  And yet, despite his past success and his immense knowledge of how to build and run a successful technology company, Agassi was not successful in his role at Better Place.  When it comes to Forex trading, the same is true.  Even professionals are vulnerable to failure.  This lesson is extremely important for traders who are looking to trading gurus, experts and signals providers in order to find profits in the Forex market.  It must be understood that while others may know more than you, there is no guarantee that they will always be profitable, and following professionals blindly is not a recommended Forex strategy. 

2- Past success doesn’t always indicate future success. Just as no two companies can be run in exactly the same way, no two trades can be exactly the same.  Past successful trades may indicate potential for profit, but can’t be taken as a definite.  Traders must look at every trade as its own entity and to consider every possible angle before committing to any trade – and even then, be prepared that it may not go entirely smoothly. 

3- What goes up must come down.  There is no better example of this mantra than the cost of gold, which has risen steeply in recent years, and subsequently crashed hard.  Likewise, Better Place started with a lot of funding and a lot of buzz, both of which died down as the company began to fizzle out.  Some traders correctly predicted the fall of gold, much like many analysts could foresee the struggles of Better Place.  But the majority of spectators and analysts in both cases preferred to remain optimistic and to follow the glory rather than the trends.  And this type of market blindness is dangerous both for traders and for entrepreneurs of all types.    

4- Sometimes it’s ok to cut your losses.  It has been reported that all told, Better Place lost somewhere near $812 million.  The company is now being forced to cut its losses and perhaps even to file for bankruptcy, as its total holdings have dwindled to somewhere near $30 million.  When it comes to Forex trading, traders must also know when to cut their losses.  There are times that even a potentially promising trade results in a loss, and times when it’s better to implement a stop loss than to wipe out completely.  This action isn’t a sign of weakness, but one of strength, and for some traders (and entrepreneurs), it may be the one thing that keeps you going. 

5- When the going gets tough, the tough get going.  Sure, it sounds cliché, but nothing can be further from the truth.  How many of the world’s truly triumphant CEOs faced failure before they found success?   How many Forex traders completely wiped out before they realized that they must trade with a strategy rather than a gut feeling?  There’s always room to throw in the towel, but the truly influential and inspirational people in any field are those who stand up to adversity and show that failure is simply part of the path to success.

What’s the biggest Forex lesson you’ve learned from another trader or company?

Should You Trade Bitcoin? An Expert View

Is the Bitcoin market one that you should be interested in? The answer may be yes, but the entry point will depend on what type of investor you are. This special blog, provided by Alan Edwards of will provide some insight for investors and traders who are considering whether to enter the market of the crypto currency Bitcoin.

Alan Edwards is a Quant Strat with 15 years experience in risk management in The City of London. Follow him on Twitter: @Bithedge 

Bitcoin market problems

Liquidity concentration risk is a major problem for variety of reasons, the currency needs to penetrate more into the world economy to increase diversification and the infrastructure of exchanges need to be more robust. Until risk concentration diversifies and exchanges increase in size, robustness and quality, Bitcoins will remain a high risk asset that can only be traded in relatively small volumes with high spreads and lag that makes leveraged trading unfeasible. In traditional Forex economic news events are the primary source of valuation volatility.  The concentration of volatility around publication of key economic data acts as the drivers for trends on the market. Without the underlying financial fundamentals of fiat currencies, Bitcoin valuations are not driven by the same drivers which will require Bitcoin FX traders to develop new valuation methods in a very dynamic environment. As a result the number one concern for traditional investors is the unpredictable volatility which the above all contribute to to different degrees. But Traders love volatility, at least volatility that they can predict trends from.

Who, Why, and How one should invest in Bitcoin

The relationship between Bitcoin and social media

The above chart that has been widely circulated suggests that Bitcoin’s value is driven by media interest, though it is so broadly presented that you could conclude quite a number of relationships or not between media and Bitcoin valuations.  A comparison of 2 normalized sets of data below based on Google Trend data and Bitcon Close prices shows that the media interest lags the valuation changes, reflecting the interest of main stream media following the reporting of large changes in the price.  Media spikes are therefore not driving the price, just lagging the reporting of the price changes which are being driven by geo political events and normal momentum based dynamics of an Forex market (admittedly a not very dynamic one).

Bitcoin Google analytics

An important aspect of this relationship in financial engineering terms is the potential for Graph Theory to replace the financial engineering framework which like Value at Risk we already know does not work. Bitcoin and Graph Theory will provide the missing link between the market momentum of psychology and the index price changes.

The Bitcoin economy outside speculation is largely driven by the miners or early participants who have acquired Bitcoins and are in the money, which means that have a specific reason that they want to use Bitcoins as a traditional currency. They do not have to worry about “moneyness” of their position and will spend them alongside real world currency. The Bitcoin scheme is a rare example of a large scale global payment system in which all the transactions are publicly accessible (but in an anonymous way). Drawing from the analysis here and the inherent risks of the current infrastructure entering the market now to actually own Bitcoins in any serious quantity is only advisable for long term investors, who can afford to, or have the knowledge to both acquire and to secure Bitcoins in large quantities. After the event hedging of Bitcoins rather than predictive hedging, as a consequence of the problems raised above, makes long term investment the current optimal solution for Bitcoin ownership. Accurate price prediction is difficult but expected returns within the year would make this type of investment worthwhile.

If you’re a trader who wants to take advantage of Bitcoin volatility and sufficient knowledge or systems to manage the volatility, it may be recommend to try spread betting with established institutions that have begun to offer these services.   Still, spread betting  provides a limited form of access to the underlying currency for traders and will always be secondary to real time broker based leveraged trading. Fortunately trading Bitcoins alongside traditional currencies will soon be a reality with brokers like OANDA already making announcements that indicate interest in future Bitcoin services.  This is just further confirmation that the ecosystem around Bitcoin will grow and improve, and that the Bitcoin ecosystem looks more promising than ever.

The Future of Bitcoin

There is a rapid transformation taking place, with payment system providers such as PAYPAL and Venture Capitalists are all talking very publicly about their interest in Bitcoin. Google has entered the market in support the Bitcoin competitor, Opencoin. Silicon Valley is taking notice. The moment Paypal/OANDA confirm their future relationship with crypto currencies (yes there are many: Litecoin, PPcoin, and Terracoin to name a few) will be the alarm for you to start preparing for Bitcoin professional trading.

Bitcoin’s geopolitical independence makes it perfect for trading since it can achieve what other currencies cannot; a purely market-driven currency free from political intervention by the states it is backed by. There is nothing to stop the USD being replaced by a crypto currency as a reserve currency. In fact in a world of economic currency wars, having a stateless currency such as Bitcoin could be considered to be an ideal scenario.  If western financial interests continue their program of regulation to squelch Bitcoin, expect other markets to step up to the plate, adopt crypto currencies, and provide markets. Imagine if the Asian axis Hong Kong adopted Bitcoin as standard, essentially weaponizing cryptocurrencies against western currencies.  Imagine rebel BRICS deciding to use Bitcoin as their currency of choice for trade. The ‘game’ of Bitcoin is not controlled by any nation, its regulators or its banks, it is a GLOBAL phenomenon, one entering existing currency wars.

Bitcoins are no more vulnerable than the rest of the financial system. If authorities were to close down the internet, how safe is any wealth stored electronically? Bitcoin has no central servers and the encrypted Bitcoins remain on your computer. The question, “how do you access your funds when the government shuts down the net?” applies to ATM networks and traditional banking just as much as it does to Bitcoin.  Purists will point out that gold or cash doesn’t need any power source to operate as Bitcoin does, to which It has been said,

Bitcoin’s real opportunity comes when brick and mortar merchants adopt Bitcoin to save what have become for them exorbitant transaction fees, and adding to their bottom line. The markets will adjust to to these realities in order to participate in the opportunities Bitcoin and other crypto currencies present for investors. $1 billion in Bitcoin was traded in April – 16x the young currency’s previous record. Whether Bitcoin behaves like a currency or a commodity is still being argued, while the markets for them only seem to be growing, and services in the Bitcoin environment are sprouting up from Main Street to Wall Street.

Bitcoin will not disappear or implode in the short term, though we expect to see a lot of price fluctuations occurring as institutional players from many sectors stake their claims both ideological and financial. There will be a storm of VC capital looking to get on the gravy train, and the normal rules apply: there will be winners and losers, a shakeout, and repositioning as events drive and influence each other.

Bitcoin trade volume

Bitcoin will not disappear or implode in the short term - expect the midterm to be volatile but always on upward trend.  Bitcoin is in fixed supply, just like land, but infinitely divisible, deflationary, and decentralized. Remember the digital ‘real estate land grab’ that the internet unleashed? Apply that concept to enforced scarcity baked into the digital protocol of a currency, outside of central control. There will be competition for the possession and use of this resource, just as there has been for other digital resources such as Intellectual Property. Bitcoin is nothing less than the digital expression of the idea of what a currency both is, and can be – a medium of exchange with an applied value agreed upon by various actors through the unfettered market of transactions utilizing it, competing to determine its value.

Though only available in fixed, limited supply, Bitcoin has demonstrated the demand for an exchange currency not controlled by a central authority. There is no central point to shut Bitcoin down. You can’t point a gun at a prime number and expect things to change. And we all know how effective governmental attempts to shut down peer-to-peer networks have been. The digitalization of entertainment disrupted copyright monopolies, 3D printing machines are disrupting production monopolies, and crypto currencies are going to disrupt transaction monopolies.

Nobody can predict the long-term possibilities for Bitcoin. Either Bitcoin is worth zero, or is worth 10,000 to 100,000 each.  It will take years for the market to figure out which it is. Until then, don’t expect Bitcoin to go away.

Tim Musomba Interview with

Tim Musomba is a trader, Live Room moderator and this year launched his managed accounts career. He has spent several years building his own unique self-developed method for trading the markets.

Tim sat down with the Senior Analyst, Huzefa Hamid, to have a chat about the markets…

[DF] How did your journey into trading begin? I’ve been a computer enthused since I was 13; I built my first computer and started a small computer repair business with a friend of mine when I was 15. My father had always been a businessman. When I was around 16 years old, I remember having conversations with him about various import/export business, as well as currency & commodities exchange. At 18, he gave me a Forex CD. It sat on my desk for a couple of years, and when I went into college I took a serious interest in it. I would say the combination of my love for computer technology and my father’s business focus found its connection in the financial markets as I entered university. In college, I met a good friend of mine, Jamal, whose father had worked with my father and who had also expressed an interest in the markets. We started to explore trading ideas together and the rest is history.

[DF] This year you’ve been a moderator for Tell us a little about that. I love it. It’s been a blast working with Colin & Greg and the clients. It’s a group where everyone has a passion to trade together. And the people are from all over the world – Europe, Canada, the US, Australia… it’s humbling to have people from all around the world hear what I have to say and ask me for my opinion. And Greg’s got the best sense of humour I have to add!

[DF] One of the backbones of your trading is using tick charts over regular time based charts. In simple terms, what are tick charts and why is it effective? I started using Tick Charts in futures because it calculates the number of trades per bar; after a specific number of trades, the bar is completed. It makes the charts cleaner because it’s based on activity. It gauges the flow of the market versus an arbitrary timeframe. It’s almost like a hybrid of a larger timeframe chart with a short-term view. What we’re doing is trading price action and Tick Charts looks at that more precisely than time based charts.

[DF] You also use a MACD and a Moving Average. How do you use it? Firstly, the MACD tends to be my Holy Grail of where the overall market is heading. It’s considered a very traditional tool amongst traders for very good reason – everyone wants to trade in the direction the market is going and MACD gives a great indication of that. So it gives me the bias I want to trade in – Long or Short. Secondly, the Moving Average – I use a Simply Moving Average just use for Pullbacks. Once the MACD gives me the direction, I look for pullbacks to my Simply Moving Average to help me pin my entries.

[DF] Typically how long are you in a trade? Most of my trades are between 45 and 90 minutes. Sometimes they can go on longer, but 80% of my trades fall within that timeframe.

[DF] Tell us a little about the trading education you’ve received – books or courses – and what you’ve found effective. The internet has been very effective for me; I believe it’s the most effective tool in this day & age; I’ve spent hours searching for what I need and developing my knowledge base from what’s already available online. I’d definitely recommend Investopedia and Wikipedia. Especially in my early days when I needed to learn the terms used in trading Forex and trading, those sites brought me the logic behind the indicators, acronyms and general concepts.

[DF] Over the years, have the markets changed in terms of how you can apply your methods? One thing that stays true is volatility and price action. My view point hasn’t changed in terms of how I look at the market technically. Of course, the markets change in terms of fundamentals and how price responds to fundamentals. But overall technically, my views have remained the same.inflatable bouncers canada

[DF] Are there any market conditions when your strategy does not perform well? During the holiday season, there’s always a decrease in volatility. I adjust my trading to take that into account – price action very often won’t break a range and I’ll trade the highs and lows of that range but still applying my system rules to the trades. Often, I’ll be taking profits earlier than normal just to account for the tighter trading.

[DF] How does news & fundamentals effect affect your trading? Not so much. I’d say the markets will always do what they’re going to do; you as a trader have to stick to what you know. Sticking to my game plan is where I’ve seen profit during news and fundamentals.

[DF] What trading hours do you keep? Ideally the London Open to London Close. That way when the London market closes at 10am CST, the New York Open has completed as well. I trade four days a week – Monday to Thursday.

[DF] What platform do you favour for executing your trades? Nowadays I use MT4; I’ve used different platforms as I’ve experimented with different brokers but as long as the spreads are good, any platform is viable.

[DF] What mistakes do you see other traders make? Patience. It’s a virtue I practice on a daily basis. As I’ve gotten older, I’ve seen how patience pays dividends. I’ve seen traders adjust a strategy in the middle of a trade out of impatience and I think it’s a huge mistake when they adjust their game plan without proper reason. Without patience, you’re forcing trades. And then they tolerate losing trades getting out of hand – the complete opposite of what you’re supposed to do! If you’re able to eliminate the emotion and remain strategic, then you’re able to change your entire outlook to the market.

[DF] What advice would you give new traders entering Forex? Discover a way to look and interpret the market in a way that you’re comfortable. I’ve noticed that a lot of beginners test everything that they read books and forums but without really understanding what’s going on underneath. When you know your strategy comfortably, you’ll trade it well and you’ll be in a good place mentally as well. And you’ll know how to adjust that strategy and refine it to get the best out of it. It definitely doesn’t happen overnight and many people get discouraged at the beginning. If you can get past that initial phase, you’ll find success.

Interview with Brian Twomey

Brian Twomey is a full-time trader, author of “Inside the Currency Market” published by Wiley and a new upcoming book, “Using the Z-Score to Trade Foreign Exchange and Other Financial Instruments”. Brian has a very unique self-developed method of applying statistical analysis, and in particular Standard Deviation calculations, to plan his trades.

Brian sat down with the Senior Analyst, Huzefa Hamid, to discuss his views on the market.

[DF] What was your professional background prior to trading?

[BT] I’ve been teaching college since 1996 in Florida & South Carolina, teaching Political Science; I taught classes such as Public Administration, International Relations, American Government, Political Parties and Political Philosophy. I was actually a stockbroker in my early twenties for a few years; I grew up with stocks & bonds because my grandfather was an investor – I grew up reading the Wall Street Journal all my life.

[DF] How did your journey into trading begin?

[BT] By sheer accident! One day in late 2004 I was watching CNBC in the afternoon waiting for class, and I was watching the Japanese Yen and watching the prices and then the next day and the day after that and so on. I thought to myself there’s money to be made in this but I don’t know. So I started a research journey first. I placed my first live trade in Forex in mid-2005.

[DF] You made some interesting public trade calls recently. Tell us a little about that.

[BT] I did that based on a conversation with a guy about how mathematics and statistics can predict markets. So over October 2012, I made 20 public predictions with entries and targets in the members’ section of a leading Forex portal; all 20 trades hit their targets.

[DF] One of the backbones of your trading is Standard Deviation. In simple terms, what does Standard Deviation measure and why is it effective?

[BT] Standard Deviation is the spread of price from the [arithmetical] mean or average. Currency prices align so perfectly with Standard Deviations. I would not consider using anything else, ever, in its place.

[DF] You also use Moving Averages extensively. How do you use them?

[BT] I only use Simple Moving Averages. The others – Exponential, Weighted etc. are distortions. Simple MAs based on closing prices are a clean tool. The shortest MA I use is 5 SMA and the longest 253 SMA.

[DF] What timeframes do you use to plan your trades?

[BT] I use Daily closing prices to calculate my MAs. And then I calculate my Standard Deviations from those Moving Average calculations.

[DF] Tell us a little more about your two books and what they offer traders.

[BT] With the first book, Inside the Currency Market, I wanted a book that would bring an understanding of the currency market from many different perspectives that hasn’t been covered as thoroughly before. For example, how many people know the relationship of Australian bonds to the Australian yield curve, or the relationship of Australian bonds & yields to the Australian bank bills? How many understand what New Zealand’s OCR rate does and how it operates? The most important interest rate in Canada is the Overnight Money Market Financing Rate, or OMMFR. How many understand that compared to a market interest rate? I wanted to cover factors that nobody knew about, talked about, but were pertinent to currency markets and prices in particular.

My second book, Using the Z-Score to Trade Foreign Exchange and Other Financial Instruments, is a complete statistical strategy to trade currency prices, to understand currency prices in terms of averages, Standard Deviations, Z-Scores, Standard Deviations of average ranges, and Standard Deviations of price distributions. I’m in love with the topic.

[DF] Over the years, have the markets changed in terms of how you can apply your methods?

[BT] It works in all market, anytime. It works without fail. It’ll work in equities, for example. But I’d rather trade something volatile such as the NASDAQ rather than say the S&P. You want an index or a price that moves so you can catch the deviations in the averages.

[DF] Are there any market conditions when your strategy does not perform well?

[BT] It’s perfect for a trend but it still catches small ranges. It catches every market price that records, but it’s a beautiful trend system. It catches great 50 pip moves all the way up to 200 to 300 pip moves.

[DF] How does news & fundamentals effect affect your trading?

[BT] Volatility is seen in the numbers. I call volatility information already priced in the market. For example, today Mario Draghi made comments after the ECB rate decision and sent the market spinning 50 pips. But my system saw it coming. In the morning I will see what’s happening with NFP before NFP is released.

[DF] What trading hours do you keep?

[BT] I’m up just after the European Open, around 3am Eastern Time and I’m up until the afternoon when I often do a little more research or work on another project. I’m in love with information and research. Once I place a trade, I let it run; I don’t worry about it. If a position goes against me on those rare days, I just add to the position with the same target objective. Usually a trade is 1-2 days but it could be longer.

[DF] What platform do you favour for executing your trades?

[BT] FXCM TradeStation – I keep it as simple as simple because I’m not a huge computer guy.

[DF] What mistakes do you still make today as a trader?

[BT] I may mistime an entry. For example, the markets were closed for Thanksgiving for 2 days; when it reopened, it opened wildly against me by about 100-150 pips (I placed the trade the night before Thanksgiving). Don’t trade when bond markets are closed because currency prices won’t price correctly due to its price misconnection to a bond or yield price. And never trade when banks are closed. Trade Sunday through to Thursday and only take short-term trades on Fridays.

Can You Trust Social Forex Trading?

Social Forex trading seems to be the latest and greatest thing in the currency trading industry. In fact, it seems like every week a new social trading experiment is born, whether through a privately held company or through a brokerage looking for ways to attract new traders or to convince people that trading is incredibly easy. The downside to social Forex trading, of course, is that you never know whether you’re really following an expert or just a lucky trader whose winning streak may end, leaving you with significant losses. A similar claim can be made about the Forex signal industry, though signals providers often provide long-term reports of their trades rather than just a few recent entries or exits as is common in social Forex trading (the industry is, after all, too young to really have long-term reporting available).

The latest social Forex experiment is, a website branded as a social Forex signals service. Though it sounds like it combines the allure of signals with the social component so common among other companies, one can’t help but question whether this service is actually offering something unique, or whether it’s just another marketing ploy.

If you do want to dip your feet into the pool of social trading, make sure to weed out the hype from the help. Is the trader that you’re following truly knowledgeable? Does he or she have references or a proven track record? You can cross-reference the statistics with the market fluctuations during the times that the trades were placed to make sure that the statistics are accurate. You should also measure the trader’s risk-reward ratio to see if he or she is advising you properly or if you can potentially lose a significant sum of money on a failed trade.

In my own opinion (which doesn’t represent, it’s probably safer to follow proven traders with a reputable company behind them than to rely on unknown traders who may not have the skills necessary to trade profitably for the long term. But then again, maybe I’m just being too conservative…

When Forex Fails

Investing money online is a complicated business – if it were easy, everyone would be doing it, and retiring from their stressful day jobs to make millions from the comfort of their own homes.  Still, there are many ways in which you can invest online.  Forex trading, of course, is one of them, but it’s not the only way to invest money online.  In fact, for most people, Forex trading requires a lot of technical knowledge and skill, which many people don’t have (at least not initially).  If you’re tired of losing money in the Forex market or are looking for an alternate way to make money online, check out the options below, and consider trying some out to see if they’re right for you.

  • Investing in the stock market – If you’re not looking for a quick profit, but are willing to wait things out over the long term, investing in stocks may be a good option for you.  While there are ways to identify stocks whose value may increase quickly, many people who invest in stocks prefer a long-term investment strategy.  Buying stocks online is easy and relatively affordable, with many brokerages allowing for some free trades or charging only a few dollars per investment.
  • Pair options trading – If you’re interested in the stock market but don’t want to wait for a long-term investment to mature, you can consider pair option trading, which is a relatively new way to make money online, and quite an exciting one.  With this type of trading, brokers such as StockPair allow traders to predict which of two stocks will perform better in a given period of time.  If the trader predicts correctly, he earns the stated payout in a matter of minutes or hours.
  • Binary options trading – Like pair options trading, this form of trading lets traders make predictions about how certain markets will fluctuate within a defined time period (usually a few minutes to a few hours in length).  Traders can choose from stocks, currencies, indices or commodities and make decisions based on their knowledge of the markets.  Binary options trading requires a much lower minimum deposit than Forex trading making it ideal for traders who are afraid of risking too much  money at the outset.
  • CFD trading – The most similar to Forex trading, CFDs (or contracts for difference) are derivatives products that allow traders to profit on live market price movements without having to own the traded instrument.  CFDs, like Forex, require traders to have a keen knowledge of the market, and, to truly succeed, will likely require some understanding of technical indicators.

Have you tried any of these methods?  How did it go?