How to earn extra money in trading in a very easy and efficient way.

Photo by Austin Distel on Unsplash

TL;DR All the strategies listed here are automated at https://www.tradingadvisor.app Free!!! I also recommend reading the full article to understand how it works before making the decision to use the tool.

Do you want to make money by trading? Well, who doesn’t? It is a technology that has allowed us to perform a large number of activities that were previously available to a very small audience, and in this appears an activity that increasingly pursues more and more: making money by trading.

Knowing how to trade will open the door to financial freedom that you will never want to leave. Trading has become a very profitable tool for all those who want to manage their finances and are looking for options to invest their savings. Therefore, here you will find information about it and a simple (and almost automated) strategy that will help you make money at it.

¿What is trade?

According to Investopedia “Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers.”

The essence of trading is to make a good profit margin by predicting the movement in the price of any commodity or financial asset. For example, you can buy shares of a newly listed company at a very low price and then sell them when the price rises.

What do I need to get started?

If you are looking for some trading tips for beginners and know how to make your money more profitable, let me tell you that the rules work the same way regardless of your skill level, so before investing it is best to have enough knowledge to accept acceptable risks.

Although trading money sounds simple, it requires a bit of trading intuition. In addition, you will need to do some analysis to know when and where you are depositing your capital. Although it may sound like a gamble, not everything was left to chance.

In addition to skills and knowledge, you need an online broker to be able to perform your operations, I will not give recommendations to any because I do not advertise, and each one must be responsible for choosing the best according to their needs.

With the necessary skills, knowledge, and tools, then you must define strategies to start operating responsibly and not turn this into bets. In order to define strategies, you must then make an analysis, there are several types and here I will explain briefly what they are.

Trading analysis

There are two types of trading analysis you can perform: technical analysis and fundamental analysis.

Technical analysis

This type of trading analysis does not take into account factors related to fluctuations in the global economy but studies the patterns that may exist in the price movement of a particular financial asset.

Technical analysis could be categorized into:

Quantitative analysis or indicators: In quantitative technical analysis, mathematical and statistical models are used to analyze the market and how prices move, including simple and complex calculations. The main inputs of this strategy are price and volume. Some indicators (the most commonly used) are:

• Moving Average (MA)
• Exponential moving average (EMA)-
• Stochastic oscillator.
• Moving average convergence/divergence (MACD).
• Bollinger Bands.
• Relative Strength Index (RSI)
• Fibonacci retracements.
• Ichimoku Cloud.

Technical chart analysis: Chart analysis is a branch of technical analysis that only considers quotes. This is the purest technical analysis available and only pays attention to past price movements to create an approximate price of an asset in the future. Although in many cases chart analysis is confused with technical analysis, the truth is that technical analysis includes many other concepts.

When doing chart analysis, we are dedicated to finding patterns and figures that define the behavior of the market. Some of the patterns and figures to detect are:

• Rectangles

• Flags

• Head & Shoulders

And much more.

Fundamental Analysis

Fundamental analysis exceeds statistics and mathematics to focus on everything that affects prices, from social events to political speeches to ensure that the market value oscillates.

Knowing the macroeconomic data related to the production, export, and consumption of certain types of products can have a significant impact on the price of an asset at any given time, so you can know when to invest.

Furthermore, by analyzing these supply and demand factors, traders based on the basic approach can identify profitable trades that most technical strategies would miss and merit, and this generates profits by trading efficiently.

In the end, the information provided by fundamental analysis is usually better in terms of risk management. If the trader knows why the price is going up or down, he can analyze the trade from an emotional perspective and determine whether it will benefit his portfolio.

Ok, but let’s talk about strategies, how can I perform well in trading?

Having mentioned all of the above, it should be understood that there are different types of financial instruments, each with its nature, market hours, behavior, etc. These are:

• Commodities
• Currencies
• Cryptocurrencies
• Indices
• Stocks
• Bonds
• ETFs
• Funds
• Certificates

I have several strategies covering commodities, currencies, cryptocurrencies, indices, and stocks. All strategies are similar in form, they only differ in indicators and patterns that I highlight for each type of instrument, and the strategy is as follows:

1. I have a list of instruments to follow, 38 currencies (the major ones) 3 cryptocurrency pairs (btc/usd, btc/eur, eth/usd) 30 indices, 34 commodities, and more than 10000 stocks!
2. For each of the instruments (more than 10k), I analyze their trends (bullish and bearish) and select those where their trends are very noticeable based on their past performance in different time intervals (Quantitative Analysis).
3. From the selected instruments, I apply the calculations of several indicators (some special for each type of instrument) and filter by those that validate the trend of the same (Indicator Analysis).
4. With the result of the previous filters, then I start looking for patterns and figures that also validate the trends of the instruments already filtered (Graphical analysis).
5. With a reduced list of instruments with validated trends, I calculate the supports and resistances and based on that, I calculate the pivot points of each one using several intervals, and with the different techniques (Floor, Camarillo, Fibonacci, Demarks, and Woodie) and I calculate the best targets to define my stop loss and take profit.
6. Then I check that the relation between losing and winning is favorable, that is to say, I do not operate in an instrument where I can win 1 if I can lose 10, I try that the minimum is 3/7, and those that do not I eliminate them from the list.
7. So far, out of the more than 10000 instruments, I would have less than 20 instruments to look at (even less, I am always improving more and more the filtering process) and then for each one I review relevant news or future announcements that may affect the behavior of each one of them (Fundamental Analysis), to then make a last manual filter and stay with the most “safe” ones and after that, decide to trade.

How to review more than 10k instruments and do all these steps is an easy way?

Well, using my programming and data science skills I do all this analysis in a matter of seconds so that the calculated signal does not expire at the moment of finishing the analysis. That is why I have created https://www.tradingadvisor.app and saved myself all this work that I have automated with years of experience and learning. Professional traders (I am not, I am a full-time software engineer, and this is one of my hobbies/source of additional income) are dedicated only to a handful of instruments which they can learn their behavior and are aware 24/7 doing analysis and reviewing all global events that may affect their investments. In my case, on my breaks I check what signals I have detected from the analysis of thousands of instruments, and I make sure that there is no news on the day that can damage the forecast of the same, and voila!

¿How can I start using https://www.tradingadvisor.app ?

Simple, I recommend you first use a demo account (fictitious money) of the broker of your choice and do the following:

1. Check that the last signal is not too old, they are usually renewed every 15 to 30 minutes, but if not, this is an indicator that the signals displayed are not as reliable.

2. Check if any of the instruments with which you want to trade, do not have any close news that may affect its performance (I have this in my TO DO list; add a visual indicator). There are several applications with this information, for example, https://tradingeconomics.com/calendar.

3. Once you have selected the instruments with their corresponding stop loss and take profit, and you have validated that there will be no news that can change their trend, then you only need to buy or sell at your trusted broker :).