Earn Income Trading at Home

Can you earn income trading at home ?

The answer is YES, but at the same time, it’s not a certainty for everyone. To achieve long term success trading from home, one has to form a solid system and be extremely disciplined.

It doesn’t matter if you happen to be trading blue chips, bonds or penny stocks, the strategy has to remain consistent. That means taking profits, but at the same time, keeping your losses small. Now this is easier said than done, but it’s not impossible.

Many investors often make two common mistakes. The first one is trying to hit a home run when they happen to be in a winning trade. Now, don’t get me wrong, everyone is looking to get involved in the next Apple Computer (AAPL:NASDAQ) in the early stages, but the reality is that massive gains like AAPL don’t come around on a daily basis. This is why investors who are looking to earn income trading at home should look to harvest profits in the 20 to 40 percent range as frequently as possible, while keeping losing trades in the small loss area. This allows one to build a larger trading stake, and at the same time, eventually accumulate the capital to take larger positions. With the intention of course, to hit doubles, not home runs.

Earn Income Trading at Home made EASY

Now the mistake that most who try to earn income trading at home make is very simple. They simply can’t insult their personal ego and admit that they have made a mistake in a losing trade. They forget that the next hot penny stock trade or blue chip reversal candidate could literally right around the corner. More often than not, most who try to earn income trading at home refuse to leave their egos at the front door, and holding on to losing trades often leads to financial disaster. Just ask anyone who owned Bear Stearns or Lehman Brothers as they were falling. I bet you they were pretty confident when these two names were trading in the $10 to $15 range and they surely felt that bottom seemed to be in. How are they feeling now though ?

To make a long story short the basic strategy that we employ at PSE is pretty simple. You will never go broke by taking a 30 percent profit, but you can go broke by playing the hope game, convincing yourself that a loser that you have owned for three weeks is all of a sudden going to rebound and turn into a profitable position in a down or flat market. Just keep this in mind, you can only play if you stay in the game.

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