Archive

Dec 21

Strategies For Day Trading Stocks

By adminNo Comments

Day trading requires intense knowledge of the share market and different types of strategies. This relates to buying and selling of financial instruments, including shares, within the same trading day. The traders are able to work from home and all positions are closed before the closing hours of the market each day.

Day trading involves quick decisions from the trader. One of the most popular forms of day trading is scalping. The aim is to buy or sell a number of shares at the ask share price and sell them quickly a few cents higher for a profit. The experienced traders who follow this method normally do between 10 or more trades in a day. The trader executes trades quickly without hesitation and if the market does not move as per one’s expectations, the trader is sure to exit a position.

Fading is another day trading strategy. This again is an area that requires vast experience and timely action. This trading involves the shorting of shares after rapid moves upward. Due to its nature for potential significant short-term gains, this type of trade needs high risk tolerance. This strategy involves the interplay between two types of investors. The assumption is, the share in question stands overbought and hence early buyers go to take profits and the existing buyers are afraid and begin to sell the shares. Fading begins to show the results again when the buyers begin to step in again. This strategy is suitable for those who are conversant with the movement of shares in the market and know how the investor’s psychology works.

One more strategy for day trading of stocks is momentum investing. This is the type of trading when the investor studies the market and does his estimate about trading as per his judgment about the mood of the market. This trading is supported by high volume. You rely on short-term movements in price instead of fundamental analysis of shares. Momentum traders keep an eye on the companies whose shares have fared well in the market and their prices continue to grow. The period of growth watched is between three months to one year. The traders are willing to buy high and sell even higher; only you need to be sure and confident about your moves. The shares bought are volatile, and such timing is very important in the trade.

A share, to be considered suitable for day trading must possess some basic characteristics. The important ones are volatility, spread and liquidity. Liquidity is essential because one can enter and exit a trade quickly. Liquidity reduce the spread (difference between ask and bid), and this will help one minimize one’s slippage (difference between current price and executed price) when entering and exiting trades at market price. Volatility (actual or expected price movement of a stock) is another important factor for day traders and more important for scalpers. When day trading, you want big but quick profits and you probably know that the more volatile the stock, the more it can move quickly. Buying and selling activities can be carried more confidently.

This idea is often reflected in the market- “Let the market tell you what the market is doing”. Day trading is a highly risky method to make money. But it is popular and gives the assurance that it can be done. You need to follow the advice of an experienced broker and at the same time you need to research your strategy choice after careful consideration. Practice the strategy adopted repeatedly with confidence. No use changing the strategy every now and then. Only trade with the money that you have! You can lose your capital in split seconds.

Do some paper trading using the strategy that you are going to adopt! That will boost the level of your confidence and reduce the chances of loss.

SogoTrade stock broker:Stock brokers

Trading Packages at SogoTrade: Stock Trade

Dec 21

Day Trading Online Tricks

By adminNo Comments

Buying and selling shares with the sole objective to make profits from the buying price and the selling price is known as day trading. The important difference between day trading and other forms of trading is that in day trading, the positions are not held overnight, when the market is closed for the day.

With the advent of the internet, the brokers and the investors have direct access to the exchanges and as such they can make day trading at a very low cost.

The conditions in the exchanges are common for all the traders. Understand the basics and put the tricks to practical application to reap the maximum advantage. Online day traders have the special advantage to make transactions with great speed. The more knowledgeable in this operation have the edge on those who know less about the procedures of the trade. The experience of the trader and one’s capacity and willingness to take risks are important.

In day trading there are many styles ranging from short-term scalp when positions are held for a few seconds to longer swing and position trading. In the later case, the position may be held throughout the day depending upon how the trade is doing. Online operations felicitate and provide you with more opportunities to enter into quick deals when you observe that the market is moving on the lines expected by you.

Online day trade enables an investor to trade in financial markets all over the world, with great speed and agility. Speed and timing are the important factors in online trades, which make or break the trade.

Online operations are very useful in keeping track of the trend trades, which is the trade in the direction of the current price movements and counter trend trades which are against the direction of the current price movement; also for ranging trades that move back and forth between two prices.

One of the important online tricks for day trading is to identify the market that moves at a medium pace. This is ideally suited for a beginner in this area. You can have access to the exchanges of your choice through direct access brokers like interactive brokers and transact futures. While selecting the market for your proposed operations, look into the factors like the initial financial status of the trader, the trading system and the geographical location of the trader.

Take care about the factor of trading margin availability. This is the amount to be deposited while opening a day trading. Traders have different types of temperament and approach of each one varies. Some take their own time to trade, whereas the others are happy to make their trade quickly.

Whether you trade regularly or not, the market that you choose should have the facility to trade 24/7 hours. The favorable or adverse conditions will engulf a particular market at the most unexpected time and you should be in a position to take the corrective measures through online, without loss of time.

Most of the basic rules and regulations and the precautions to be taken for the normal share trade are part of the day trading online tricks. In addition, you need to look into the aspect of low initial and maintenance margin, low tick value, smooth and consistent moves, and accessibility to trades in different locations.

May people think that online day trading is risky. Actually it is not so. This is the fear of the ignorant. Investors having good knowledge and those who work on the basis of recent update and invest at the right time, have a different story to tell. If you have the capacity to master the market scenario, you do not need any additional trading tricks to achieve success.

SogoTrade stock broker:
Stock brokers

Trading Packages at SogoTrade:
Stock Trade

Nov 15

Forex Day Trading – A Few Words of Caution

By adminNo Comments

Forex Day Trading has become a popular pastime with tens of thousands of avid traders around the world dreaming of making it big on the currency trades by raking in hundreds or thousands of dollars in a matter of minutes. And indeed, the forex market provides a massive money making opportunity with over 3 trillion dollars changing hands on a daily basis.

However, alongside opportunity there is also risk and the statistics show that over 90% of forex day traders lose their money in the long run. Why is that? This article deals with that exactly.

1. Short span trades – Forex day trading is all about making short and fast trades. If you fall in love with your trades, not raking in your profits when you can or staying too long in a losing position, then you’re no longer a day trader. Your day trading system needs to be fast.

2. Waiting too long for the perfect moment – Day trading is all about making many small gains. If you keep waiting for the perfect forex day trading signal that may never come, you may spend your entire day in front of the monitor without making a single trade. It’s better to profit less than the maximum than not at all.

3. Falling in love with a system - Many traders end up losing their money because they develop a fixation on some sort of forex day trading system and don’t leave it even when it doesn’t work. If something doesn’t work for a length of time, chuck it and find another strategy.

4. Making money for your broker and not for you – Brokers love day traders better than anyone else. The more trades you make the more commission they rake in. Don’t waste your money on your broker. Negotiate the best commissions. As they see you make many trades, your brokers will fight to keep your forex day trading activity with them.

5. Don’t trade blindly – You may be the best trader in the world, but if you’re trading without a forex software than you’re trading blindly. Stop! Get yourself a good forex software to support your actions and you’re likely to make more money on your forex day trading efforts.

To read more about an automatic trading software that has created wealth for thousands of traders, click here: FAP Turbo review John Drummond works from home. He writes often on business, trading, and finances.

There is more than one forex trading software. To read John Drummond’s review of the 3 best ones, click here: The Best Automated Forex Trading Software

Oct 27

Day Trading Stocks – How Are You Doing?

By adminNo Comments

Most trading is done emotionally charged, out of control, and frustrating as consistently losing is the norm. From this stressful and financially draining experience of not winning, few traders ever see the possibility for long term success – becoming a winner.

Losing or producing boring, mediocre returns is the guaranteed outcome of not having the following:

*A winner’s attitude and perspective,

*A winning system g system with the tools, strategies, and disciplined execution skills,

*Calm, objective practice with these – lots of practice,

*Plus a day trading coach to help you bring these together,

*In a career development learning program that gives you the opportunity to become a consistent day trader winner.

Yet 20% of the traders continue to win – on the backs of the 80% who lose – one of which I was, and one of which you may be.

Why?

*First, losers innocently or blindly trade in a game (approach, system, and strategy, and so on) the crowd (losers) plays.

*Second, losers focus pervasively on the money – not learning, not winning, and not seeking advice and support of a world-class consultant and coach (like as aspiring tennis player or golfer) to become a winner.

*And, third, losers insist on trading on their own, arrogantly – not knowing there is another game being played by winners, not aware of the value of working with a learning coach, and not using a trading room to learn to win with their coach and other winning traders.

So, 80% of the traders look at things through a very small window. From this window, market and stocks opportunities seem closed in and, at the same time, uncontrollable and unpredictable. It’s a place where choices seem few while stress and anxiety seem so plentiful. Amidst all the despair and chaos, losers seem to find only occasional moments of money making, which are fleeting and often followed with a thoughts of “Is that all there is?” or “What’s it going to take to be a winner?”.

The Day Traders Win approach, system, and tools applied with a coach in a day trading room provide a truly unique learning experience. You connect only with what you need to know and use to become a consistent winner. Our program of services enables you to make positive changes in how you think, in how you make decisions, and in how you execute trades. We have a fresh, powerful yet simplified way of trading – the game, strategies, and tools – that can change your day trading reality forever. We have a day trading approach that can turn your trading lights on – soon removing the darkness of losing so you avoid the noise and begin to clearly see what it’s going to take to be a winner.

Imagine getting to the point where you actually welcome obstacles, the noise, losing, and the stress – without skipping a beat – because you know they are just closed doors you can open with our learning program to find plenty of opportunities to win. How powerful would that be?

How valuable would it be for you to displace your mind’s endless, limiting chatter with calm, intuitive, and financially effective thinking and execution – the thinking of a winner? You can learn to hush negative, useless chatter that depletes your energy, causes you to be unfocused and leaves you out of control and energy depleted – and overall, prevents you from seeing real opportunities for winning.

You want to achieve your day trading goals? All success comes with change – personal, emotional, and mental change. Old habits displaced with new habits. Incompetent execution displaced with effective (competent), disciplined execution – to soon have the confidence and performance of a consistent winner.

Think about any great invention, discovery, or a new way to do something that’s transformational. It takes going against the tried and true, going against the logic of crowd think – going against the grain. Much of our trading is exactly about that – doing only what it takes to win not just keeping busy. We have developed, invented, a new and very financially powerful way of day trading that allows us to meet and exceed our trading goals – seemingly beyond imagination or belief at first, expected as we gain a winner’s expertise and performance.

Change (learning) does not come easily – as you know.

You want to change your attitude and mood from that of a loser with low self-esteem to that of a winner with a sense of being energized and in complete control of what’s controllable – all the while, feeling more competent and alive?

Losing and low self-esteem result from not dealing with your most basic fear and incompetence . True confidence (your sense of self-worth as a trader) is the reward for having courage, patience, and doing the work needed with your coach to break through fears and build you trading confidence and competence to have unlimited opportunities for winning and wealth building.

This is what we are up to. Helping want-to-be winners see the big picture, play a game winners play, and have the day trading tools to observe, decide, and execute beyond imagination. All traders really need to do to be successful in this learning program is to manage their energy and mood and just be willing to learn to trade well – with a vision and determination to be a consistent winner.

Comments, questions, suggestions, and more information: http://www.daytraderswin.com

Over 25 years Consultant / Coach – banking, real estate, senior executives. After a brief retirement, I now serve traders for them to become consistent winners – day trading stocks.

Trading Services:

1. Radically New Day Trading System
2. Trader Consulting and Coaching
3. Day Trading Room

Learn to Consistently Win, Earning CEO-like Income in a matter of months (not years), should you qualify.

http://www.DayTradersWin.com

Oct 26

Stock Picks 101 – Day Trading Versus Swing Trading

By adminNo Comments

When you trade stock picks for any length of time you learn very thoroughly that there’s no such thing as a free lunch. In other words, you are always making trade-offs. What are the trade-offs between day trading and swing trading?

For one thing, in day trading, you close your positions at the end of the day, whereas swing trades usually take a few days to complete. When you day trade, because there is no overnight risk, there is a greater potential for profit. Additionally, when you close your position at the end of the day, you can use higher leverage. This means you can make your money work harder for you.

So, what is the down side of day trading stock picks? For one thing, by the nature of the short duration of the trade, you need to pay attention to your positions continuously. This also means you can only manage a very small number of positions. For many people, this means just one position at a time.

This means you need to concentrate on and pay attention to your position the whole day. However, by far the biggest danger in day trading is that you have very little time to react if the position starts to go against you.

Assuming you have the margin to hold positions overnight, you must be ruthless at getting out of losing positions. Day trading margin can be up to 4 to 1, but overnight it can only be up to 2 to 1.

Of course, you never want to go right up against your margin limit. If you do, and the trade goes against you, the brokerage will either force liquidation of the position, or worse, give you a margin call.

So, what are the advantages of swing trading? You have more leeway about how carefully you watch your position when you swing trade. Also, you have a bit of time if the position should start to go against you. Finally, you can handle more positions because you don’t have to pay such acute attention to each one.

The danger of swing trading is that if the position does go against you, you may end up with a “position” trade. Be careful to not let this happen to you because in doing so you’ll eat up valuable margin. Speaking of margin, as previously mentioned, swing trades don’t let you work your money as hard because of overnight margin requirements.

Ultimately, whether you choose to swing trade or day trade will depend on where you can be the most successful. Usually you can tell because you will enjoy or develop an affinity for one or the other. Either way, remember that the purpose of trading is to maximize profit at minimum risk.

Douglas Newberry is the founder and Director of the Investing Systems Network. Investing Systems has more than 20,000 customers in more than 70 countries using their tools and services to become better, more disciplined investors. You can learn more about day trading versus swing trading at Stock Picks [http://www.stock-picker-rt.com]

Oct 15

Should You Day Trade Stocks Or Futures Contracts?

By adminNo Comments

It seems most of the articles I read in the article directories suggest day trading exchange listed stocks. This is a bit difficult for me to understand, as futures contracts offers some distinct advantages over trading stock issues. As a longtime trader, I have extensive experience trading both of these equity instruments and understand the way both function. Not that there’s anything wrong with trading stocks, as good money can easily be made trading stock issues. In my opinion, though, trading futures contracts, especially the e-mini contracts, have a multitude of individual advantages so as to make them a prohibitive favorite for day trading.

Needless to say, I can hear the stock day traders protesting loudly as many have been very successful in day trading their favorite stock. I can understand this, as a certain amount of money can certainly be earned in the stock business. However, the leverage to maximize your gains simply doesn’t exist in day trading stocks. Further, day trading stocks entails a significant capital outlay in order to get started. On the other hand, getting started in the futures trading business requires a far smaller outlay of cash and seems better suited for the smaller investor.

From the onset, though, any futures day trader realizes that the high level of leverage that futures trading involves will maximize your profit; but it’s also important to realize that high levels of leverage can also maximize your loss. For that reason alone it is important to practice and learn sound money management practices when trading futures. Contrary to popular belief, trading futures is not like going to the casino. There are very specific methodologies that must be learned and employed in order to be successful trading futures. To be sure, it is my belief that many beginning and poorly trained futures traders habitually over trade their accounts and take unnecessary risks in their trading activities. This approach is a sure way to deplete your futures trading account.

While some stocks can be fairly active, there activity pales in comparison to the financial index e-mini futures contracts. This healthy activity in the financial index e-mini contracts makes them a popular and profitable equity instrument to trade. And traders have flocked to the e-mini contract in droves. To be sure, the ES e-mini contract is the fastest growing financial instrument in the short history of futures contract trading. Currently the average volume on the ES contract has consistently exceeded 1.4 million contracts per day. That is to say, there are no liquidity problems in the e-mini marketplace.

In my trading activities, I trade the financial indexes in the futures market. I do this because all of my prior experience in trading has been centered in the financial arena. There are scads of other e mini contracts to trade, but I have found the financial indexes fit well in my trading plan. Further, I do not employ any fundamental analysis when trading the e-mini contracts. I am a scalper, and find scalping among the most effective methodologies for day trading the e-mini contract.

On the other hand, day trading stocks is a different proposition. While some technical analysis can be employed to trade stocks, there is a healthy amount of fundamental analysis that goes hand-in-hand with trading stocks. For intraday trading, fundamental analysis can be a difficult road to hoe. Many stock day traders may have to wait several days before their analysis results in their fundamental expectations.

As a scalper, I have no trades to hold overnight, and every night at bedtime all of my money is in cash. I can be an impatient person, and detest trying to de-cipher, or predict, which way the market may move. As a scalper I spend no time predicting market moves; I react to what the market is offering and exploit breakouts and breakdowns as they occur on the chart. I find that simply trading the chart in front of me greatly reduces my market risk as my investment horizon is usually between 10 and 15 minutes. I would contrast that to the stock day trader who may wait days before his plans come to fruition.

Of course, when trading futures contracts we run very tight stops to minimize downside risk and try to let our winning trades run. This is often easier said than done, but with practice you can become quite proficient in this technique. In short, scalping allows me to minimize downside risk and take advantage of significant market moves as they present themselves. I spend no time waiting for the market to move in my desired direction, I spend my time discerning potential movement in the market as the chart formation indicates. No, I am not much on predicting the market; I spend my time reacting to the market and hence reduce my potential risk exposure to a very narrow time band.

Especially for beginning traders, I highly recommend learning the scalping method as a way to profit in the market. It does take some time and practice, but the learning curve is not a prohibitively difficult one and I have had many traders find success in as short as 2 to 3 months. It is my opinion that scalping futures contracts is a superior method to trade. Most traders tend to graduate from scalping and move into swing trading or longer-term trading techniques. As for me, I have spent the last 25 years scalping and have no desire to graduate to swing trading. I suppose I am stuck with the simple elegance and efficiency of trading e-mini contracts. Additionally, I covet the peace of mind I receive by not holding trades overnight or committing myself to a certain direction of the market in order to profit

Real Live Trading Doesn’t Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Blue Taste Theme created by Jabox