Hoosain Harneker has the relaxed manner of someone who has been through it all. “I entered the world of trading after a devastating loss of failed business partnership that wiped out much of my savings,” says the South African businessman who had defied the odds through careful risk management and a simple-moving-average-based trading strategy. “It was a friend who recommended that I try trading so I scraped around to reach the minimum needed for a live account.”
When Harneker finally began trading, he paper traded for 6 months while I raised additional capital. Keeping his family fed and warm was a challenge. He rose through and defied the odds through a combination of selective scalp set-ups that yield as little as 10 pips per day. “My fortunes turned and I rose from rags to riches”. He now feels able to deal with whatever life throws at him. “For anyone who wants to start trading, trade in a demo account for as long as it takes to double it three times in a row before trying to trade with real money.”
Stories like Harneker’s are not uncommon, ordinary people are experiencing trade success in everything from commodities to forex, which puts the estimated valuation of the online global trade market at USD1.43 billion by 2025. According to “The Modern Trader” report, released by Broker Notes, there are 9.6 million traders worldwide. That’s 1 out of 781 people on the planet who trade online.
Online trade has enabled anyone the opportunity to profit, even a New York school boy made 72 million, while trading stocks on his lunch breaks. He now takes his friends to dine on caviar, drives a BMW and has definitely made his immigrant parents proud. Mohammed Islam, who started dabbling in penny stocks at the age of nine, spends most of his school breaks trading oil and gold futures, and small to mid-cap equities. “I followed the market, hunted for opportunities and used everything from fundamental analysis to technical analysis and price action to speculate in the markets” says Islam. He now trades mainly on volatility and volume.
This is not to say that trading is easy, it can be very tough sometimes, especially if a trader has not done fundamental research. It is always good to pick up a few good trading strategies, especially those that leverage on volatility yet always keeps risk management at its core principle. All strategies should be tested over time, in different markets so that it becomes easier to ride through fluctuations in income and be psychologically ready for it. And then finally, it would be good to have a comprehensive trading plan so that you have your financial goals, preferred investment strategy and approach in mind, prior to actual trading.
With markets so interlinked, it’s always open trading time somewhere in the world, and many of these markets can be accessed with ease. This means even people with full time jobs or even a commander in the navy can trade. Rob Wilson, is one such example. The commander applies military principles such as discipline, protocol adherence and confident decision-making even when faced with limited information. His military discipline gave him the psyche and confidence to trade in fast-moving intra-day set-ups in EUR/USD every morning before he reported for duty in the Navy.