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Some think Index Trading has something to do with day trading stocks.

We prefer Index Trading, there really is no comparison to day trading stocks. With stock trading there are Many things you really need to know about the companies you will be buying or selling short. In fact, the majority of stock traders Never sell a stock short or bet against the company (which means you are betting the stock price will drop). Not being able to profit in a down trending market is a Major setback for an investor.

With Index trading we are only concerned with index movement. We don’t even care if it is going up or down. We just want the index price to move! We can place our trades short or long with equal eaze. There is no market or company research to do, as we really don’t care what the individual companies are doing.

For instance, if you were looking at a company with the thought of buying stock, you would no doubt want to know what the PE ratio was, who the board members or major stock holders are. You should want to know if they are buying or selling. You might want to know what the BIG fund companies are doing in that sector (finance, health care, big pharma, tech sector etc), and many other factors (or at least you should). Then you might use a chart to time your entry or exit strategy.

With index trading, it is all about the timing. You just want to know what the highest probability is for the next few minutes. Then you make your trade accordingly. If you have dependable data supporting your chart set ups, then you should take winning trades most of the time – Regardless of the fundamentals listed above!

By now you should know that what is happening right now in the market is controled by emotion. More correctly traders emotion. We can tune into that emotion with simple set ups, and go for a short ride. We might even get into a long ride, but we are going to set up protection that will help us no matter which way it goes. When the index moves against us, we will get out fairly quickly. When it moves in our favor, we will let it ride as long as we can.

Now, if you just enjoy doing all that market research, go ahead. However, we have taught hundreds of stock investors to trade the index (mostly mini Dow and the S&P Emini), and the majority of them never go back to stocks!

Another advantage of index trading is the lower funding requirement. Stock day traders will need at least $25,000 in their accounts (depending on how many trades they make), where index traders can get started for $2,000 or less!

Index trading also offers a lot better leverage that stocks. The emini indicies are comparable to the leverage of stock options, without all the headaches and limitations.

After the financial meltdown on Wall Street, I predict there will be MANY more investors looking at index trading as a Great alternative to stocks!

Multiple Income Streams Are More Important Than Ever

The latest economy reports show more and more folks ending up on the unemployed rolls. The real statistics are most often worse than what is reported.

My guess is that the situation will get Much worse before we see any improvement in the job numbers.

I have always been a big fan of multiple income streams (even before that became a catch-phrase), and I think they are more important now than ever.

When I was laid off my nearly 10 year job with AT&T back in 1992, I saw first hand how important multiple income streams were. At the time, I had a part time mail order biz (and had been tinkering with that since I was a kid). I looked at the lay off as a good opportunity to get more serious about my business. I also had been doing some investing (my best-ever stock play helped BIG back in those days), and had a little network marketing income.

Many of my AT&T coworkers had no other source of income, and I clearly remember a few grown men in tears when they walked us all out the door that morning!

I would MUCH rather have five sources of income that pay me $200 a week, than to have a J.O.B. that pays me a grand a week! If you still have a job, you need to take this info seriously – NOW! If you are one of the millions of folks that recently lost a job or your only income stream, you need to take steps NOW to correct that (you still have time – perhaps a severance package and/or unemployment insurance checks to get you by – but please don’t wait till they run out to get going).

How do you start to create multiple income streams? Here are a few areas that are available to most people:

* Online Income – Many things fall into this category, affiliate plans, blogging income, Adsense dollars, online jobs, marketing your own products and/or services, eBay and other auctions, & more.

* Investment Income – OK, this one may be tougher than ever, and if you barely have money to live on, how do you start to invest! I am partial to index trading, and that does not require a lot of money to get started, but to be really good at it, you need other income streams too.

* Network Marketing Income – Don’t turn up your nose at this one. I have companies sending me checks that I have not worked in years. While it is true that network marketers often talk about the top guy who is making $500,000 a month, but there are a TON of folks who make a few hundred a month. Not life changing in and of itself, but as part of your multiple income stream strategy, not bad either.

* Cash Back Debit & Credit Cards – You won’t get rich with this alone either, but the old saying is really true “If you watch the pennies, the dollars will take care of themselves”. Pay Pal offers cash back on a debit card (which in my opinion is better than a credit card – you won’t have the temptation to carry over a balance, which would cause interest charges and defeat the purpose of cash back)

* Interest Savings on Loans & Credit Cards – OK, this is not technically income, but if you save money off what you are currently spending, it comes out the same in the end – more money in your pocket and budget.

* Food Bill Savings – This is like the Cash Back cards, not really income but can be very important – especially if you just lost your job or sole income (like many folks who used to live on their stock market income). Try clipping coupons or join a coupon club. Eat at home more and quickly find more money left in the budget at the end of the month.

* Turn Hobbies Into Income – Like to go to garage sales? Turn that hobby into eBay income. Like to work on small engines or have some other hobby that can be turned into an income source? Don’t sell yourself short here. Maybe you love flea markets? What if you could get an extra $200 or more a week by setting up a booth one day a week? Not enough to live on for most folks, but not bad as part of your multiple income strategy. You might even consider creating a booklet, ebook, book, or other info product on your hobby. If you are good at it, you ARE and Expert (you don’t have to be the best to be considered an expert – there are folks out there who will pay you for what you know).

We have had affiliates of our Index Trading course earn up to $100,000 in a year. We’ve had many more earn from $5,000 to $30,000 in a year. What if you had 5 affiliate plans you liked (loved would be better – you’d be more passionate about them), that averaged about $5,000 each per year. You might be able to live on that. Add some other sources like the ones mentioned above and you might live very well!

You should always be looking for ways to add additional income streams. Remember, the more you have the better! If one dries up, you are not devastated.

The time to set up multiple income streams is before you need them, but no matter what your situation is, there is no time like NOW to get started.

So you’ve delved into the wonderful world of Forex and you’re as confused and paralyzed as a deer at a headlight. No worries, let this article enlighten you on some of the most fundamental types of trading systems.

Trend Following

Trend following is the most common type of trading system. Because the majority of the market follows a clear direction, it means that the majority of the market participants agree on the direction as well.

Trend following, to a certain extent, means going with the crowd. If the market is rising most of the time, you’ll have an easier time riding the market’s waves. What’s so good about this trading method? First, the accuracy, the probability of you making a winning trade, is higher. You won’t have to make too many trades, but you’ll make plenty of profit.

Of course, you’ll still have to know the exact rules of when and how to enter and exit. But here some tips:

Trend Following Tips:

1. Try entering on corrections and retracements. How do you know when the market might trend following again? Enter on support and look at price action. If the trend if up, and you see buying, that’s a good place to enter.

2. Trail your trade using the continuously forming mini-supports to maximize your profit.

Trend following is a very common, basic trading method. To qualify the common saying, “The trend is your friend, until it ends.” Let’s take a look at another trading style.

Fading

Fading is the opposite of trend following; it’s arguing with the market’s trend. Essentially, it’s bottom picking. What’re the potential rewards for fading?

The first obvious advantage is that when your trade is a winner, the rewards are significantly bigger. For example, if the reward to risk ratio was 8:1, you could’ve had 7 losing trades but still come out net positive. Keep in mind that your system still needs an edge; you can’t just gamble and hope for the best. Do your homework!

Maybe the market has been going up for the past few months but now you see a huge doji. You might want to short it now, or you might want to wait for a close below the recent low. The point is, fading is a very different trading style from trend following. Now, let’s explore the final trading style.

Breakouts

All you have to remember regarding the breakout method is the keyword “breach”: you enter whenever the market breaches the highest high or the lowest low. This can be the 52 week high/low or even the 20 day high/low, it’s up to you. Next, you’ll need to determine how you will exit your trades.

So what’s the difference between trend following and breakout trading? Ok, they might seem pretty similar, and they kind of are. The key difference is the entry. With breakout trading, you enter with the breach of a prior high or low. With trend following, a breach doesn’t have to occur, but rather you can enter on a dip.

So Now What?

Realize that you can splice and dice the methods to suite your taste. You could enter only in the market’s primary direction, and use the close above a recent high as a signal, or even the doji.