Source: Trendsignal newsletter dated 6 Nov 2022
With the Bank of England warning of the longest UK recession on record, a growing number of people are looking for alternative income streams to achieve financial security.
Financial trading is something many are considering to bring in an extra income. But is it really something that could work for you? Let’s have a look.
I remember having an interesting discussion with one of our readers who’d recently signed up to get our trading education emails…
He’d discovered Trendsignal after we were recommended to him by a financial publishing company.
He hadn’t traded before, not the way we do it. As in looking to buy then sell (or sell then buy) to profit over the short term.
He’s more of a long-term investor.
His normal way of making money from the markets is buying and holding individual stocks. The ones recommended in the publications he subscribes to from his publishing company.
Still, he found his way to us by word of mouth, a recommendation from his trusted financial advice provider.
Our style of trading piqued his interest.
So, he signed up to attend one of our live online trading sessions.
We showed him our D1 Sniper strategy that’s averaged 1,146 pips’ profit per month since January 2011 – enough to make a monthly income of £3,438 at £3/pip.
And afterwards, we had a chat about what he’d seen.
Trading as part of a wealth building planDuring our conversation, we talked about how our style of trading could fit into his long-term wealth building plans.
He wanted to know more about how trading with Trendsignal could help him achieve his financial goals.
And how the results he could reasonably expect from trading might compare to investing in the stock market or in property.
It’s a good question.
After all, most of us have a limited source of what I call ‘free capital’.
That’s money you have left over after you’ve taken out all you need each month: mortgage/rent, food, bills, general living expenses, easy-access savings.
What’s left, is your ‘free capital’ – money you can put to work in the markets if you choose to.
How much free capital one has will be different for each of us.
And it might be a regular monthly amount you have to invest. Or you might have a lump sum (inheritance, bonus, maturing savings policy, etc.) Or both.So, you need to make a choice.
Long-term versus short-term moneyYou need to decide where to deploy your capital if you’re looking to grow it or make an income from it.
The point this reader was making was: He likes to put money in the stock market. It has a good long-term growth record. How would trading compare?
If you strip it down, the question is: Which is best – short-term trading or long-term investing?
Again, it’s a good question and one that quite a lot of people ask.
The way I see it, there’s no clear answer.Because we’re looking at different things. Long-term versus short-term.
Long-term investors buy assets and own them for months or years.
That makes sense if you look at the stats. Studies show that over the long term, equities deliver returns of between 5% and 6% a year.
If you keep compounding those returns so that you’re making 5% or 6% on an ever-growing fund, it can lead to staggering growth over a 40- or 50-year time frame.
(Which is why we should all be teaching our kids about saving, investing and the miracle of compound growth…)
But the kind of trading we do at Trendsignal is more about shorter-term moves.
We’re going after far quicker profits…
£3,400/month extra income in 20 minutes before bedtimeWe might be in and out of a trade within a day or two or a week.
In fact, some of our strategies aim to bank profits within hours (for people who have the time and personality to suit trading all day).
It really comes down to how active you want to be.
Many of our members lead busy lives. They have full-time jobs. Or are retired but have lots of other things on.
So, our end-of-day D1 Sniper strategy is perfect for them.
It works off the daily charts. That means you only need to check the charts at the end of the day (around 10pm) to see if our trade signal has identified a trade.
If it has, you place your trade along with exit orders. (These levels are identified by our software and, when placed with your broker allow the trade to close automatically when it reaches either your profit target or stop loss.)Then you leave it and get on with your life. The entire process, from checking for signals to placing the trades, takes as little as 20-30 minutes at most.
And we see great results from this approach…
Since January 2011, the D1 strategy has been averaging 1,146 pips a month (including winning and losing trades).
So, based on modest £3 per pip trading, that’s £3,438 per month profit.Or at £5/pip trading, it’s been bringing in £5,730 a month, on average.
Either way, it’s a pretty decent potential extra income – especially if you reinvest those winnings to compound your returns, which is something we teach our members how to do.
If you can spare an hour this week on one of these dates, I can show you more about this way of trading.
Book a free place at our live online session to see this in action.
The chap I was speaking to about investing vs trading is not alone.
For a lot of our readers, when they first come to our door, short-term trading is a relatively new concept.
Not ‘new’ in the sense that they didn’t know it existed.
Most of them have heard about trading… and like the appeal of it and the potential returns it can bring.
But they’ve never opened an account, funded it with their hard-earned cash and used that money to profit from the markets.
When they start investigating and decide they want to learn how to trade, they soon find us at Trendsignal.
That’s because we have a great reputation as trading educators.
For example, financial news and data powerhouse, ADVFN, has awarded us their prestigious “Best Trading Education Provider” award for the past seven years in a row.
But getting back to that question…Personally, I don’t think it makes sense to try to compare short-term trading with long-term investing.
I think there’s a place for both in your overall wealth-building strategy.Let the stock and property markets work their proven get-rich-slow magic for you.
But if you want to see faster returns on a portion of your free capital, then trading is a great way to go.
Just make sure you’re using a proven, consistent trading approach and rock-solid money-management techniques.
That’s what Trendsignal can provide you. And the chance to make tax-free profits of £3,438 per month trading at just £3 per pip.
To see our approach in action, click here to join our next live trading session. (Choice of times.)
Head of Trading
P.S. The outlook for the UK is pretty gloomy right now – surging inflation, rising interest rates and talk from the Bank of England of the “longest recession since the 1920s” hitting the headlines.
Looking for ways to make an extra income is becoming a priority for many people preparing for tough times. And trading is one of the simplest and most effective ways to produce a side income – IF you have a proven, profitable strategy.
The one I’ll teach you in my live sessions this week could fit the bill perfectly for you – come and check it out.