Day Trading Blog

Welcome to Day Trade The World™ day trading blog. Please click on an article to read it.

Blog del 23 ottobre

Why You Don’t Need a Financial Background to Succeed as a Trader

Why You Don’t Need a Financial Background to Succeed as a Trader – Introduction

I am often asked about my education background and why I have ‘succeeded’ as a trader. This is because in the university, I did not take a business or finance related course. Instead, I took a science related course. Most people who ask me this question are people who never took a course in finance but are very interested in trading. Truth is, you don’t need to have a background in Finance, business, or economics to succeed as a trader.

In fact, some of the biggest investors today took non-business-related courses. For example, David Rubenstein, the founder of The Carlyle Group took a course in arts. The same is true with people like Bill Gross, Lloyd Blankfein, and David Einhorn among others. These people are some of the biggest business and investing leaders today.

The first reason is that you can teach yourself how to trade and invest. The concept of trading and investing is simple. Find an asset that you believe is undervalued and then buy it. Alternatively, you can find an asset that you believe is overvalued and short it. To identify whether an asset is undervalued or overvalued, all you need to do is to perform an analysis about the current price. For example, you can apply the concept of technical analysis. While these concepts might seem difficult on paper, applying them in the real world is not difficult.

The second reason is that the concepts taught in school have been made easier using technology. I believe that the modern form of education is broken. This is because students are taught the same concepts that older generations used to be taught. For example, universities spend time teaching students about technical indicators and the calculations behind them. In the real world however, no one needs to understand how the relative strength index is calculated. This is simply because the indicator has already been developed and all you need to do is to apply it in a chart.

Third, you can be a better trader if you teach yourself than when you go through the formal education. While education is important, I believe that you become better when you teach yourself new skills. This is because formal education gives you a certain way of thinking. For example, it tells you that when a company has a Price-to-earnings ratio of above 40 is expensive and so, you should avoid it. In real world, you will meet companies that have a high PE ratio and doing well. In fact, this is the reason why many young traders are beating Wall Street veterans today. This is because they are investing in new and fresh companies like NVIDIA and Google while ignoring the old industries like crude oil.

When hiring traders for my trading floor, I never look at their financial background. Sure, I want people who have a college degree, but I don’t always hire them. In fact, all of my traders took different courses in college. Some of them never attended college. This is because I train all my traders from scratch and show them how to identify trading opportunities. I believe this is part of the reason why these traders succeed even when they open their own floors.

Why You Don’t Need a Financial Background to Succeed as a Trader – Useful Tips:

Shanghai Communication Post Blog

Join the DTTW™ China Conference 2017 in Shanghai

This autumn, make the trip for our annual DTTW™ China Conference 2017. Join Day Trade The World™ in beautiful Shanghai for an exclusive conference event on November 28, 2017.

Don’t miss this opportunity to talk with DTTW™ CEO Dan Schlaepfer, Ralota CEO Peter Beck, and GLP Mike Duke about the state of the day trading business.

  • Location: Shanghai, China
  • Date: ​Tuesday, November 28, 2017 CST
  • Note: the conference is open only to DTTW™ offices

This year, the conference event will take place in breakout sessions with small groups, allowing for a personalized networking experience, followed by lunch and dinner.

Spots are limited, and attendees must register for one session of their choice.If you wish to join us for lunch or dinner after, you will need to sign up for that as well.

Registration for the conference will open soon. Please watch your email inbox for aneventbrite invitation.

Update 18 ottobre

TMX Group Conference Call

Day Trade The World™ is happy to host our next conference call with the TMX Group.

Join us on Thursday, October 19, 2017, at 11:45 AM ET, as we talk with TMX Group’s Jeff Foster, Head, Business Development, Equities Trading.

We encourage you to take this opportunity and ask us any and all questions about trading on the TSX. The topics to be discussed are as below:

  • TSX ETF fee changes, highest rebate in Canada resulting in market share jump
  • Lower fee on passive ETF trading on Alpha resulting in market share jump
  • New: enhanced dark trading on TSX
  • New: Limit on Open order type

The Toronto Stock Exchange continues to be one of our most profitable markets. This call is a must-attend.

Call Connection Details

  • Date: Thursday, October 19, 2017

  • Time: 11:45 AM ET

  • URL: https://meet.lync.com/daytradetheworld/conference/7Y8C6SUR

Note: please connect to the call early to ensure system compatibility.
We look forward to speaking to you on Thursday!

Blog del 16 Ottobre

The Nasdaq Canada Conference Call

Day Trade The World™ is happy to host our next conference call with Nasdaq Canada.

On Thursday, October 12, 2017, at 11:45 AM ET, we talked with Nasdaq Canada Vice President Stephen Hretchka and Vice President of Sales Kevin Utarid.

The topics discussed were as below:

  • Marketplace Structure
  • Nasdaq CXD
    • Order types
    • Midpoint and touch opportunities
    • Sub $1.00 issues and TSX Venture opportunities
  • Nasdaq CX2
    • Inverted model and direction of the Canadian environment
  • ​Questions & Answers

Call Connection Details

  • Date: Thursday, October 12, 2017
  • Time: 11:45 AM ET
  • URL: https://meet.lync.com/daytradetheworld/conference/240YASM2

 

Blog del 16 ottobre

A Guide to Performing Extensive Company Analysis

A Guide to Performing Extensive Company Analysis – Introduction

Investment research is a very important thing for any trader. Broadly, traders can do two types of investment researches. First, they can do technical analysis. This is usually more important for traders who want to enter and exit trades within a short period. Second, they can do fundamental analysis. This involves looking at the broad issues surrounding an asset. For example, fundamental analysis about currencies can involve looking at the underlying economic data. In this article, I will look at the best way to conduct an extensive study on a company you want to invest in.

  • Start at the top

To do an extensive study, you first need to start at the top. This involves looking at the world today and imagine how it will look in the next ten years. For example, you can look at the vehicle manufacturing industry and imagine how the world will look in that period. Today, every person in the vehicle industry is talking about electric vehicles and autonomous driving. Countries like China and the United Kingdom have set a target to banning the combustion engine. This means that we will see a lot of investments in the electric vehicle industry. Therefore, when analyzing a car company, you need to look at this macro-theme and decide whether the car company you want to invest in has an edge in the industry.

In the example of cars, you should only invest in companies that are shifting gears to the electric and autonomous vehicles. Equally, what happens to the petroleum industry when this happens? With reduced demand in the oil industry, chances are that oil companies that don’t pivot to the electric sector will lose out. Therefore, in the long-term, it would be unwise to invest in oil and gas companies that are not shifting gears to the new electric industry.

  • Focus on the company and its competitors

After looking at the macro theme and finding companies, you should now find companies that will be leaders in the next decade. A good example is to look at the e-commerce industry. In the next ten years, more people will be shopping using e-commerce. Retailers that don’t shift to the e-commerce direction will likely go bankrupt in the next few years. Therefore, you can look at companies like Amazon and Walmart that are increasingly investing in e-commerce.

After finding a company, you should also consider its competitors to find the company that will likely dominate the market in the next ten years. In the case of Amazon, you can look at companies like Walmart and eBay. Your goal here is to find a company that has a better chance of being big in the next ten years.

  • Look at the financials

After narrowing your search, you should focus on the company’s financials and its management. In this, you goal is to find a company that has good finances and is led well. Your goal is to find a company that has the funds to continue making long-term investments. Therefore, look at a company like Amazon or Alibaba that have the cash flow to fund their next investments and growth.

  • Valuation

After narrowing your analysis, you should now look at the valuation of a company. A company might have the best products but be overly overvalued. The rule of investing is that you should never overpay for an investment. A good example is what happened during the dot com bubble. During the bubble, CISCO was worth more than $500 billion. This is because investors expected its products to dominate the market. Surely, the company’s routers have the biggest market share. However, competition eroded the company’s market share and people who bought the stock made huge losses. Therefore, to avoid this situation, you should do your best to buy a company that is not highly valued. To do this, you can use several valuation models. However, the most appropriate one is comparing the company’s price to earnings ratio with that of its competitors. Ideally, you should invest in companies that have low or reasonable PE multiples.

A Guide to Performing Extensive Company Analysis – Useful tips: