Do not risk any money on speculation until such time as you have an understanding of the daily market possibilities, it is so easy to look at a chart over many weeks and say this looks easy. It might look easy from a distance but for every person who succeeds at trading there are another 50 that don't.

Speculation in stock or futures contracts is basically a gamble but if you have a discipline and a plan to succeed you can win over the long run. It is possible to win day after day if you trade the shorter term opportunities where the market patterns are isolated to the current market technicals and mood.

Without a plan and without the discipline to stick with your plan you will fail. Your plan should not be to follow market forecasters as they are seldom correct about anything. If you doubt me just go and watch the TV commentators each day for a few weeks.

There are an abundance of trading methods being promoted to newcomers all the time. These can promise you almost anything to get you to open up a brokerage account and get you trading so the brokerage community just bleed money away from your account.

Statistically 90% of individual traders lose money, hedge funds and broker managed funds return maybe 5-15% per annum. When you think about it you can get 8% on your money with no risk in a cash investment account so what really do they have to offer.

I have a plan where a small capital investment that embodies all the right ingredients will steer you on the correct path to follow if you are prepared to work to learn it. You can take control of your own destiny by selecting your own trades when all the right situations line up and a trade is warranted. If the trade does not work you have a set minimal stop that tells you to exit with a small loss. If you want to WIN you have to work for it and the only way to do that is to make regular trades when all the technical things are in your favor.

My plan and my trading setups will not take you more than a few months to learn to become a proficient judge of the method if you have the desire to do it. So be patient and take the time to learn it first before you risk any money.

The main thing you should realize is with these odds the patterns that can form over a 5 day period are basically unlimited.

Hypothetically if you are expecting to make money following a trend system you are going to have to endure many ups and downs along the way. In fact more than 60% of your trades will most likely return losses.

Statistically the market only trends in one direction or the other for around 30% of the time and rarely moves in one direction at a time for more than 2 or 3 days without having a setback.

With these odds it does not make any sense to stay in the market for longer than a day at a time and most days you will get trades in either direction unless you get a TYPE 1 day. Say for instance you enter the market on a TYPE 1 day and it is a winner your odds are 3 to 1 against a continuation the following day. On the 3rd day the odds are 9 to 1 against and on the 4th day 27 to 1 against.