Securities and derivatives trading might be for you if you are one of those that are looking into go into business for yourself, and running your own enterprise. It might be for you if you prefer to operate utilizing your tools rather than by your field of vision, and in case you are mathematically keen.
You have probably been told this several times repeatedly: Trading is probably your thing. This can be a primer on a particular section of trading, technical analysis, which is to serve as an introduction to folks that might be thinking about the wholly gratifying enterprise of financial securities and derivatives trading. With the advent of the conglomerate of technologies known as the web and the internet, It should be said first off, that this sort of trading can help you do this sort of business from the comfort of your own home.
Nonetheless this seems to understate that this venture is a completely serious thing. There are some grave consequences too if you are planning to trade professionally. There are reports about every little transaction as it is a very closely regulated market. Remember to file your taxes (and if you’re going to be going into options trading, you are in for a field day of an accounting basic course and sit-down with your CPA), because the government’s paying attention to every last penny about these activities.
You have to adjust your business plan accordingly as capital gains are likely to make a significant part of it. This business is a really predictable way of making a living (which can’t be said for many government jobs with state administrations these days), which is why many people are getting into it. So you have technical analysis. And technical analysis is very much about mathematics, but it’s also very much about the visual representations of these mathematical expressions and formulas. This is known as charting. Over the course of your eventual training, you’ll get some pretty cool ones to look at, as charts are everything in this world. You’ll encounter things such as the Range expansion index DeMark, which is a technical indicator.
What the Range Expansion Index is going to do for you, is it will signal to a trader, when a turnaround in the price of a derivative or stock is about to occur, making this a good primer on what an indication is, whether in the down- or upside. It doesn’t matter. You can back test a hypothesis against years and years of stock activities by taking indicators like the DeMark Range Expansion Index, which is something that makes trading so compelling. You can take a software system and check it by programming it into trading based on your philosophies and then seeing how it might have faired in the past 10 years.