Developing Your Own Equity Trading Business Plan and Following It

Developing your own equity trading business plan is very important in the business in order to be a successful day trader. It does not matter if you are a new or a professional who is in the business for quite some time. Here are some of the steps that you can follow to develop your own trading plan and how to stick with it:

  1. What type of trader you want to be– As the trading industry is diverse, there are different types of traders such as day trader and swing trader. In order to determine the right plan for you, you must know what type of trader you wanted to be. You must also be familiar with the equity trading operations. Stock market trading is a great market where you can gain lots of profits.
  2. Find the perfect trading strategy– A trading plan should be consisted of multitude of trading strategies. The strategies are part of your plan so that you feel comfortable with it. There are various strategies. However, feel free to use more than one as the trend in the trading market changes constantly. Equity trading training prepares you for the appropriate moves you must make to actually react the proper way when these happen.
  3. Practice the strategy and trading plan– Before the real and actual application of a particular strategy, you must try it first in an online trading simulation or paper trading to ensure its effectiveness in certain situations. This will make you more familiar of the strategies you plan to use. Equity trading training highly encourages that you know the software of the equity trading firm so that you can actually test your equity trading business plan.
  4. Be familiar with chart reading to improve your trading strategies– Strategies tend to be effective when a trader knows how to respond on what he or she sees in the chart. Thus, learning how to correctly read a chart and analyzing these data will allow you to make a wise decision in responding appropriately in trades. Chart reading is part of a great trading education and is a crucial part in equity trading operations.
  5. Improve your money management– It is also important that you know how to handle all of your money and know when and how much to trade with and risk.
  6. Apply your trading plan in your own account– After you discovered that your trading plan really works, it is time to apply it on your own online trading account. Your equity trading business plan will work to your favor especially when this really works in the equity trading firm that you are part of.

Online Currency Trading – Trading Forex Vs Trading Stocks

In recent years online trading has attracted a large and diverse segment of the population attempting to profit from the various financial markets of the world. Since 2000, that has included the retail forex market.

Investors and traders who wish to trade from home using the Internet as an investment tool will find that the Forex market offers several advantages over stock trading.

24Hour Trading:

The forex market is a true 24 hour market, 5.5 days a week, which offers some great advantages over equities trading. Traders can trade at odd hours, which allows much more flexibility in their personal lives. No matter what time of the day or night, there are always institutions and individuals trading foreign currencies.

Even though stocks and equities do offer some forms of after hours trading, it is seriously limited by the decreased volume (liquidity) that occurs overnight. This means that many trades cannot be executed at fair market values, and increases the trader’s costs of doing business. Because of this, there is no guarantee that every trade will be executed.


Simply stated, the forex market is many times larger than all of the equity markets combined, and therefore there are always a multitude of buyers and sellers in the market. This high volume ensures price stability no matter what time of day or night.

High leverage:

Because average daily movement of currencies usually ranges around 1%, whereas some stocks and equities can range upwards of 5% or more in a day, a forex trader is able to trade with much higher leverage.

Less margin money is required to trade larger lots of currencies. As always, this leverage can work against a trader as easily as for him, if he does not handle it properly.

Ease of Buying and Selling:

When a currency trader opens a position in the market, whether long or short, he is actually going long one currency and short the other. That is the nature of the foreign currency market. It is just as easy to go short as long.

Equities traders, on the other hand, have to deal with “uptick rules” when going short. Also, equities traders, because of much less volume traded vs. forex, may have a much more difficult time liquidating stocks when the market is moving against them.

Forex trading does present advantages over equities trading, but as in all financial markets, sound money management must be used in order to be profitable.

Best Online Stock Trading Platforms

Best Online Stock Trading Platforms Reviewed

When it comes to choosing the best online stock trading platforms that are available to investors today, it is best to research the trading platforms that are well-known and reputable. An investor should never take a chance with some stock trading platform that nobody has ever heard of. There are enough risks in trading stocks and there is no need to make things any more difficult than need be. When comparing stock trading platforms it is often helpful for a stock investor to make a list of things that are important to them as a stock market trader. (i.e. cost of trades, stock research tools, ability to mobile trade, initial deposit required, etc…)

Popular Stock Trading Platforms & Services

Benefits offered by best online stock brokers:

  • Scottrade – Scottrade has been one of the top investing platforms online for years now and is a good option for most stock market investors. $500 minimum deposit to fund your investing account. No opening or maintenance fees are involved with your Scottrade account. Easy to open an account or transfer a brokerage account from another broker. Online trades are just $7 for stocks that are priced $1 and above regardless of frequency or your account balance. Trade options for just $7 plus $1.25 per contract for market and limit orders. Trade as often as you like without worrying about hidden fees. Easily monitor your investment account, research and trade from any Internet-enabled mobile devices. Research the stock market and get quick stock quotes. Stay up-to-the-minute with complimentary Dow Jones News.
  • E-Trade – E-Trade is another big player in the online stock market trading area and has been for over 20 years. Setting up an account on E-Trade takes about 10 minutes and you can trade free for 60 days. Easy, intuitive online investing and 24/7 customer service. $9.99 and less for stock and options trades. Over 8,000 mutual funds and 30,000 bonds available for trading. Innovative investing & trading tools to help investors make better trades. You get free independent research and a huge resource of investing information educational resources. Stocks, options, futures and Forex. Whatever you desire to trade, ETrade has you covered.
  • TD Ameritrade – Low, flat-rate $9.99 commissions for every online equity trade, regardless of account balance or how many shares you buy and zero maintenance fees. Trade free up to 60 days and get up to $600 in your account. Independent, objective investing research from S&P Capital IQ, Morningstar Associates, and ResearchTeam. Easy to use online trading tools. In business over 35 years, TD Ameritrade is a favorite among online investors.

The above online stock brokers are all reputable online businesses and have excellent reviews for thousands of stock traders. It is hard to go wrong by choosing one of best online stock trading platforms available and will make your future investments easier, more profitable, and more manageable than ever before.