How anyone can trade without any financial knowledge or background

[Peterw]

Do you think you need a degree in mathematics/economics/statistics to be able to make money in the financial markets?

I just wrote this blog post about identifying strong levels the price bounces around between and thought - "anyone can do this, it really is so simple when broken down".. so I thought I'd share it here.

Basically the jist is that when you look at any chart for any instrument - be it stocks, bonds, forex, commodities, indexes - anything, you will see that price reacts and bounces off certain levels.

If you can identify these levels, which are stronger than others than you pretty much just have to watch and wait for price to reach these levels and trade either a bounce off of them or a break through to continue in the same direction.

No interest rates, unemployment figures, intrinsic value, annual reports, balance sheets/income statements, FOMC, ECB or any of that. Just plain old fear and greed mapped out on a chart in front of you.

Sorry if this is not of interest to anyone, I might be to some. There is a lot of money in those markets and you can extract it regularly, sensibly and with a business like approach when you take the time to watch it, demo it and develop your own system.

High Probability Trading Success Simplified

[TechKidHelp]

It's ridiculous for someone to say you need a background or a degree to trade stocks. I would even go so far as to say that having a background in it is damaging, as unsound investing principles are taught in college; such as the Discounted Cashflow Model and the Black Black Scholes Model; which are not accurate.

People are also trained to believe small caps are risky, P/E ratios dictate how you should invest, and much other harmful advice.

I've found people without a background are more successful. I trade in the market, and get an absolutely huge return compared to the market average (I subscribe to the Motley Fool service; not an advertisement, but I've used them for around three and a half years now, and they are really great. I subscribe to Stock Adviser and Hidden Gems. It will help, but it is not needed; and, of course, you still need to heavily investigate the stocks yourself).

This system will not work as it does not focus on the value of stock; only day to day fluctuations. You get taxed heavily for each stock you sell that you haven't held for a year, so even if you've made 10% using this system, it'll all go to taxes. That's the main reason day trading doesn't work.

[Peterw]

Originally Posted by TechKidHelp

It's ridiculous for someone to say you need a background or a degree to trade stocks. I would even go so far as to say that having a background in it is damaging, as unsound investing principles are taught in college; such as the Discounted Cashflow Model and the Black Black Scholes Model; which are not accurate.

People are also trained to believe small caps are risky, P/E ratios dictate how you should invest, and much other harmful advice.

I've found people without a background are more successful. I trade in the market, and get an absolutely huge return compared to the market average (I subscribe to the Motley Fool service; not an advertisement, but I've used them for around three and a half years now, and they are really great. I subscribe to Stock Adviser and Hidden Gems. It will help, but it is not needed; and, of course, you still need to heavily investigate the stocks yourself).

This system will not work as it does not focus on the value of stock; only day to day fluctuations. You get taxed heavily for each stock you sell that you haven't held for a year, so even if you've made 10% using this system, it'll all go to taxes. That's the main reason day trading doesn't work.

This isn't a system it's a method of finding low risk/high probability trade ideas. It's also on a Forex pair (EUR/USD).

Are you saying that trading around strong support and resistance levels "doesn't work"?

Trading forex on short term timeframes is a completely different animal to following stock newsletters and recommendations. It is however very profitable. I believe equity traders use CFDs for short term stuff.