Archive for May, 2009

what is the best day trading website to learn about daytrading?

May 30

Posted by Day Trading editor in learn day trading | 6 Comments

i want to learn how to daytrade. maybe take a practice run for a couple of weeks. any good websites?

Have you read John Carter's book yet? Mastering the Trade.

Also read Tom Busby's book, Winning the Day Trading Game.

They'll give you a good primer. Fantastic books to get you started. After that, you'll have a much better sense on what and where to go next.

One option would be to work with a mentor. Todd Mitchell looks interesting at toddmitchell.com for trading.

Though if you go to daytrading, you'll need to practice a lot more than a couple of weeks. Most successful day traders I know practiced at least months before being somewhat successful as there's all sorts of nuances, the shorter the timeframe that you trade in.

Let me know if you have any questions.

Hope that helps!

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Are these two different stock buying techniques?

May 30

Posted by Day Trading editor in day trading techniques | 1 Comment

When you see people frantically buying a stock and then they sell it an hour later, or three days later; is this the same kind of stock trading as having stock that you hold on to for years and sit around with your buddies talking about on the weekends?
What kind of stocks are the ones they are selling right after they get them etc….and rushing around more ?

You are actually talking about the difference between trading and investing. Trading is short term and it basically seeks moves based on news or momentum from stampeding herd of buyers/sellers so you simply ride that move for the duration, usually a a few days max.

The other long term strategy is to buy good companies that keep making money every year and wait many years as their shares grow with the earnings. This is the usual way normal people invest their money for the long term. In the short term trying to catch moves is exceedingly difficult for non-professionals.



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Anyone knows a good, proven day trading system or day trading robot?

May 30

Posted by Day Trading editor in day trading systems | 2 Comments

I want to start day trading soon, either using a system that is working fine or a day trading robot. Thanks.

Brian,

I am an experience trader. In my opinion, trading somebody else's system is fine but you gotta ensure that it suits your style. Trading has a lot to do with psychology and psychology is reflected in the system. For instance, what stop losses can you take.
In this regards, it is critical that you define money management rules and that you stick to them under all circumstances. Like I hinted, get ready mentally. And finally practice. A lot. Use demo accounts.
Have a look at my system: http://forexpipsandtips.blogspot.com.

For a day trading robot and thus a more laid back approach, I recommend http://www.day-trading-profits-now.com/
I don't know any other day trading robot on the market that performs as well. Nothing even close.

Cheers,

Mark

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what is the best day trading strategy's & indicators?

May 30

Posted by Day Trading editor in day trading strategies | 1 Comment


Hey Don

Do some studying on these

A. MACD indicators
B. Stochastics
C. Moving Average

- These indicators basically measure supply and demand for a company's stock

And take a look at "trendlines"

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Day Trading Investing Stocks I Need Two Or Three Proven Strategies?

May 30

Posted by Day Trading editor in day trading courses | 6 Comments

Hi

I have been Daytrading the Nasdaq, Amex, Nyse, BB and PK stocks using Etrades level 2 software. I have had success trading news stories, earnings Good/bad, Share Buybacks, gaps up and down, buyouts and FDA news approvals and non approved.

I have read dozens of books and been on courses regarding day Trading but the best trades I have made I have figured out myself. I Am Looking for more specific Individual ideas that others may have found successful.

For instance I watch the news feeds all day looking for key words in news that will trigger a price move or I'll spot a loser and follow it for 2-3 days till it's almost dead and then buy it as it bounces back, another good one is following the top 10 risers of the day till 10.10 am and then buy one that carries on it's rise. So anybody got any Good Individual ideas I will appreciate it.

This is amazing, I have been wanting to hear about someone who is actually making money day trading! I'm in college and I haven't had the chance nor the money to start yet but I would love to do this for a living. From my research, I found that the news about mergers & acquisitions, clinical trials, and all you mentioned sends stocks skyrocketing.

The website below has software that scans the news feeds for you specifically for day traders. It is programmed to look for the key words that causes big moves in stock prices. If there is any advice you could give me before I get started I would love to hear it.



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Going All The Way – Day Trading as an Income and Lifestyle Source

May 29

Posted by Day Trading editor in learn day trading | No Comments

If day trading were as simple as chucking a couple thousand dollars into an account and starting your education the year before you could retire, every single person with access to $2,000 and a library would be day trading. It isn’t a simple method of getting rich quick. It is either a hobby or a career, but you have to choose which one it is for you.

If you’re willing to give yourself a five years window, commit a significant time, energy, and financial investment, and learn strategies, processes, and new ideas until your head swims, you will be well on the road to making day trading a fabulous career choice. Why paint it with such grim prospects. Because the internet has opened up a new and thriving market for anyone who wants to charge you for their “secrets” to “instant success.”

Day trading is not about instant success. It is about learning and growing and losing and winning. It is about a process that every successful day trader has already undergone and is wearing proudly like a badge somewhere under the scars they picked up along the way. There is work involved, and if you’re not disciplined and patient enough to do the work, you are going to lose your money.

Can you do it? Absolutely. With the right attitude, the ability to learn, and a commitment to the process, you can absolutely become a very successful day trader. Approaching it with the right attitude and going through the process which earns you your scars of education creates fantastic day traders that walk the walk and live the dream. It can take a little time to start on the right road of educating yourself, considering all the various claims and programs out there that promise you the world and deliver much less than an envelope.

The market is an unforgiving territory filled with possible loss. It can be a great place to earn a fabulous income, but not for those who can not make the commitment. Sure, there are a few rags to riches stories out there, but what those stories often leave out are the years of sweat and turmoil and hope that the wonder traders lived through before their big break. It doesn’t just happen like a scripted movie. People hit their big break because they learned how to find it, not because they got lucky within the first few months of trading.

Commitment isn’t just about a financial ability to keep your account funded. Commitment is also about being passionately driven to learn something fundamental every day. If you committed yourself to learning one new fundamental trading insight or strategy every week, you would know 52 additional fundamentals at the end of one year. Out of those 52 fundamentals, perhaps 10 will get you where you want to go, when exercised appropriately, strongly, and rationally.

There are plenty of people who dabble in the market. They play with a little money here and there to get a feel for what it is like. Most people are still hiring professionals to manage their money because they know they lack the time commitment to do it well for themselves. If you are only able or willing to commit to dabbling, that’s fine, just make sure your account balance and the size of your trades matches your level of available commitment at all times.

Terry Leslie
http://www.articlesbase.com/currency-trading-articles/going-all-the-way-day-trading-as-an-income-and-lifestyle-source-522843.html

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Becoming A Successful Day Trader

May 29

Posted by Day Trading editor in day trading techniques | 4 Comments

There are two types of day traders – scalper and momentum traders. The scalper buys and trades stocks within minutes, whereas a momentum trader buy stocks that fluctuate from high to low during the day. But at the end of the day, the ultimate goal of a day trader is to buy stocks and sell them at the highest possible value.

A trader should be knowledgeable in paper trading and risk management. Traders keep themselves updated by reading stock exchange periodicals. It is essential for a day trader to absorb the relevant information completely and regularly. New York Stock Exchange and the National Association of Security Dealers impose minimum margin requirements for day traders.

A day trader’s world is full of risk, where fortunes can change by the minute, depending on unpredictable market swings. Besides luck, the profit of a day trader depends upon how vigilant and fast they are. The trader’s analytical, as well as risk management skills also determines success. The element of unpredictability is evident in every aspect of their work, ranging from holding positions on long trades that involve purchasing the stocks at a low rate and selling it later at a higher rate, to short selling that involves the reverse of long trades. This involves selling the stock at high rates in anticipation to compensate it when the prices fall, to speculating without being bothered with the fundamentals and technical aspects of the trade.

Characteristics Of A Day Trader

-Believe in their efforts and do not pay heed to rumors.
-They have a sharp analytical ability.
-They are strong-headed people, who are not affected by the prevalent market trends.
-They employ a mathematical approach.
-They work towards understanding the latest regulations related to trading fees and taxes.
-Day traders are not affected by the fluctuation of financial indicators such as NASDAQ and DOW JONES.

Anyone can become a day trader by opening a trading account with a brokerage company or a stock exchange or bank, provided it allows trading. You need to fulfill certain legal and commercial formalities, before initiating trades. You can become a day trader in any one of the following categories:

-Stock, bonds and securities.
-Foreign Exchange Currency
-Commodities – such as metals and food grains.

In order to be a successful day trader you need to be very cautious about every step you take, since a single mistake can turn successes into failures. You need to respond to liquidity and volatility quickly. Though day trading is a lucrative career, you need to keep in mind that you do not become an experienced day trader overnight. It requires time and rigorous practice. If you want to pursue day trading as a career, then you need to practice on a trading website to gain confidence in the application of new techniques and implement them in your career.

Tony Jacowski
http://www.articlesbase.com/careers-articles/becoming-a-successful-day-trader-126303.html

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Day Trading Systems – Try Using One and Lose your Money Quickly

May 29

Posted by Day Trading editor in day trading systems | No Comments

Perhaps the biggest myth of FOREX Trading is you can make money with day trading systems.

Day trading systems make money only for the people selling them and the investors who use them, simply lose their money and lose it quickly.

If you want to know why read on.

The Logic

Day trading logic is based around the fact that you can make money by predicting where prices will go in a day, or even a few hours.

The reality is:

All short term volatility is random, which is of course common sense to everyone but day traders.

Think about it:

You have trillions of dollars traded each day, by millions of participants all with different investment objectives.

The major groups can be summarized as follows:

Central Banks â?? Trading at key levels to push currencies up or down.

Large speculators â?? Looking to make money for themselves or for their clients.

Hedgers â?? Interested in offsetting risk.

Small speculators â?? Everyone else, who does not fall into the above groups.

How many of these pay attention to daily levels or ranges?

A tiny minority of losing day traders.

As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

So why do people buy these day trading systems?

Basically, because they have good sales copy and appeal to the greed of investors.

The only people who win are the vendors selling the system and they are of course not stupid enough to trade it themselves.

Donâ??t believe me?

Then ask for a track record of profits made over the longer term by vendors trading the system and you wonâ??t get one.

What you will get is:

Maybe, some testimonials from friends or people who have had a lucky trade, or the favourite of day traders:

The Hypothetical track record.

This of course shows great profits, but there is a major problem:

A simulated hypothetical track record is done knowing the closing prices and is constructed in hindsight.

Letâ??s see, if I knew tomorrowâ??s closing price today could I make a profit?

Umm hard question, think I might be a multi millionaire!

The myth that day trading systems make money is one that novice traders fall for all the time â?? donâ??t make the same mistake.

Sacha Tarkovsky
http://www.articlesbase.com/investing-articles/day-trading-systems-try-using-one-and-lose-your-money-quickly-131367.html

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Day Trading Basics – Day Trading For Beginner Investors

May 29

Posted by Day Trading editor in day trading strategies | 5 Comments

Day trading is an extremely risky way of investing in the stock market. Day trading is carried out by day traders who rapidly purchase and sell stocks over a single day period in the hope that for the very short period over which they hold the stocks (ranging from just a few seconds to a couple of hours) the value will continue to climb or fall thus allowing day traders to secure quick profits.

The method of buying and selling stocks over a very short time period can create huge profits or losses for the day trader in just a couple of minutes or hours. Statistics show that 80-90% of all day traders make a loss at the end of each trading day. However day trading has become an increasing popular form of trading in recent years as a result of the internet and increased access to information. So while day trading used to be a marginal form of stock trading reserved for the most part to financial firms professional traders and an elite group of private investors it is now also very common method of trading among casual traders.

Day traders are defined as traders who place four or more round-trip orders over a five day time period and the total trading activity over a day is 6% or more of the total value of all shares held.
Brokerage fees for day traders can be substantially lower than fees for other types of traders. While margins for most traders are usually around 50% of the value in traders account, day traders can face levels as low as 25%. This means that a trader can by lets say, $1000 worth of stock from an account of only $250.

Tips for success
The five most common strategies adopted by day traders who seek to make are profit are

* Trend following – used by all trading firms this strategy assumes that stocks that having been rising steadily will continue to rise.

* Playing news – this strategy is to buy stock in a company which has just announced good news

* Range Trading – this is where stock that has been rising and falling is bought near the low price and sold as it hits the high price range.

* Scalping – it is commonly defined as a very quick trade.

* Covering spreads – To play the spread or the make the spread simply means to buy stock at the Bid price and sell the stock at the Ask price. The difference between the bid price and the ask price is known as the spread. Because there is an historical tendency for the stock market to rise profit can be expected for this form of trading.

Mike Singh
http://www.articlesbase.com/finance-articles/day-trading-basics-day-trading-for-beginner-investors-119107.html

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Want to Know if Day Trading is for You?

May 29

Posted by Day Trading editor in day trading courses | 5 Comments

Day trading can be a very dangerous form of financial speculation, but it is going on from PC all over the United States and the world. The idea is to sell a futures contract to buy a currency, or a commodity, and then buy it back, even at a later date, at a lower price. Unlike position traders, who can hold onto a stock, bond or commodities position for a long time, day traders are the scavengers of the system. They have no interest or loyalty to any currency, commodity or stock in a company. They are simply trying to, as Adam Smith, granddaddy of the British System said, to â??buy cheap, and sell dearâ?.

There is not just the buying and selling of stocks and bonds, but also trading in derivatives and futures. Derivatives values are determined by other indexes or numbers, such as interest rates and currency levels. If you are making a futures bet that a stock will go up, or to have an option to buy a stock at a certain level.

There are many courses on the market, some in person, and some through the Internet in written form, or audio or video. Basically, what one learns is a trading system. This system can involve commodities such as gold, silver or oil, or on the Forex (foreign exchange) market, the value of a currency. Since, the person plans on day trading, it makes little difference which one of these objects are chosen to trade, except that they are all values of high volatility where one can make a profit (or loss) quickly. If you do a Google search on these topics, you will see many alternatives. Some systems involve consulting news and financial reports at a certain time of day, and using this to make decisions what futures to buy in the morning and the sell in the afternoon.

Other systems can be more esoteric. A popular system uses the variations of currency values over different time periods, some of which can be a short as 5 or 10 minutes. The curve produced by these currency value fluctuations, say of the US Dollar/British Pound pair are then plotted out on a graph and compared to the Fibonacci number series, the golden mean relations, or other ideal numeric values, and this is used to estimate the right time to buy and sell currencies. Are you willing to risk your fortunes on such schemes? Some say it is a winning proposition if you master â??the systemâ?.

Adamheist
http://www.articlesbase.com/finance-articles/want-to-know-if-day-trading-is-for-you-95616.html

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