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Dec 21

Strategies For Day Trading Stocks

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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.

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Oct 30

Day Trading Systems

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Day trading is a style wherein traders either sell all long positions are sold or cover short positions at the end of the trading day. With day trading, you can be sure of finishing the day in cash and can therefore avoid the risk of holding the shares overnight. There are various websites on the Internet that provide information on various day trading systems.

Day trading systems use earnings guidance as the source for signals. Based on this guidance information, the investor can decide which stock to invest in and which not. The day trading system shows that stocks move strongly only for twenty percent of the time. However, it is rather difficult to tell through the day trading system which and when any security is ready to move. It is for this reason that day trading systems combine earnings guidance with some technical analysis tools.

Most of the day trading systems have about one to three trades each day. According to the day trading system, when there is no good trade opportunity, the day trader makes a pass and stays in cash for that day. Remember, the important point is how much you earn in a month and not on how many times you execute orders. The average holding period for most day trading systems is one day, from the open to the close of the stock market.

Day trading systems use objective and mechanical criteria to select the different trades of the market. It is always better to start with a small position size in day trading, until you get the hang of the system. Follow the day trading system rule by remembering the number of open positions. Be conservative, and do not let the position take control of your account. According to the day trading system, it is necessary to always be aware of the share movement and to not make wild decisions based on a margin call from a broker.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Oct 28

Day Trading Stock Online – Basic Techniques For Beginners

By adminNo Comments

Day trading stock online is real seat of the pants stuff for all participants, but none more so than for the novice trader. The casualty rate is high enough amongst experienced professionals, but for the raw beginner it can be an absolute minefield if basic day trading principals aren’t rigorously adhered to.

Just because you’ve made a few successful mid to long term trades in your time doesn’t ensure that you’ll be the next talk of Wall Street when you try your hand at day trading stock online. Far from it!

Not surprisingly, day trading irrespective of the asset class involved has been likened to extreme sports, with the only difference being that the thrills and spills are confined to the minute by minute fluctuations of your trading account. Perhaps the only saving grace for those who fail to plan their trades in advance is the fact that no positions are held open, i.e. carried forward, to the next day. If nothing else, this limitation helps prevent further erosion of capital when a trade turns sour.

So what motivates investors to become involved in day trading stock online?

A primary motivation of day trading stock online is understandably the lure of quick money. Another motivating factor is that it isn’t necessarily any riskier than other forms of trading activity. However, unless thoroughly tested and proven trading strategies are put in place with each trade, the risk of incurring substantial losses within a frighteningly short period of time is all too real.

Basic Strategies:

There are six basic strategies day traders use to make a profit:

Spread covering

Technical trading

Scalping

Range trading

Playing news events

Trend following.

Spread covering refers to buying at the BID price and then selling at the ASK price. The spread is the difference between these two prices.

Technical trading is simply the action undertaken by a technical analyst. He or she evaluates securities by relying on the assumption that market data, such as price charts, volume, and open interest, can help predict future, usually short term, market trends. Unlike fundamental analysis, the intrinsic value of the security is not considered. Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables. Many technical analysts are also market timers, who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock.

Scalping refers to an extremely quick trade for a small profit. For example, if you bought 20,000 shares in XXX Inc. @ $1 per share, i.e. $20,000 invested, then sold them 45 minutes later for $1.03 per share, $20,600 gross return, you would end up pocketing a cool $600 less brokerage. NB: Remember that when you are day trading stock online, the round turn brokerage fees are minimal.

Range trading is a little harder and inherently more risky, but the returns can be proportionately greater, too! If you are canny enough to be able to pick the intra day market swings and either BUY at or near a low, then SELL at or near a high you can often make substantial profits using this method. But you do have to be wary, because if you buy into what you think is an intra day low point, only to discover that the market sentiment has changed and that a severe sell off is in progress, you could get badly burnt!

Playing news is the realm of the adrenaline seeking day trader. The technique refers to buying a stock which has just announced, for example, a short sell on bad news, the contrarian traders love this sort of play as they will be standing in line to BUY the stock at the end of a short, sharp sell off in the belief that most if not all the bad news is already factored into the market and therefore there wont be any further downward pressure. The sheer volatility offered by unexpected news announcements can provide the diligent day trader with huge potential for quick profits, or losses if they call the market incorrectly.

Trend following assumes that if a stock have been rising steadily it will continue to rise. Admittedly, this technique is better suited to position traders, i.e. where stocks are held for a number of days, weeks or even months, but in strong bull markets some stocks will rise steadily for days on end, making the intra day trend follower a very happy chappy.

Live Coaching

When trading on an intra day basis you need to take into account many factors including: time of day; liquidity; pending announcements such as corporate profit reports, interest rate movements, currency fluctuations; macro and micro trends; market sentiment, in fact, almost anything at all that may have an impact on your trading results.

So, if you want to radically improve your day trading stock online skills, live coaching or even online mentoring with a recognized industry professional can be worth a hundred times the price paid. Coaching can take place in different forms including: in person coaching; online coaching session; or over the phone.

If youre hell bent on being successful, but you’re still new to the game, you’ll be tossed to the lions unless youve acquired the necessary physical and mental skills to survive and profit from day trading stock online. Do yourself, your pride, your career and your bank manager a big favor by making the commitment to learn as much as humanly possible about this fascinating and potentially very rewarding form of investing, and secure the services of a live coach to see over your trading.

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Oct 18

Learn Day Trading Secrets – What is Prosperous Trading?

By adminNo Comments

A lot has been made of this idea of “Prosperous Day Trading” – what is it? How does it work? What makes a “prosperous trade” different from a regular trade.

Well, you’re in luck – because I’m going to explain Prosperous Trading to you in DETAIL…and then I’m going to tell you how you can watch a VIDEO showing an example of a Prosperous Trade.

So, first off, let me explain Prosperous Day Trading, and how that differs from “regular” day trading.

When people hear the term “Prosperous Day Trading”, they assume that simply refers to a “successful trader”, or a “wealthy trader”. But this isn’t true – as I’ll explain in a minute.

Most people also assume that in order to be a successful Trader, you’ve got to spend hour after hour chained like a slave to your computer, while you execute an ultra-complicated trading strategy, which requires you to make day trade after trade after trade.

So, essentially, day trading becomes a “JOB” – and a high-risk and high-stress job at that.

Well, the ideal of Prosperous Trading suggests that this “traditional” reality of Day Trading can be thrown in the trash can.

You don’t NEED to spend hours a day trading in order to be successful. Your day trading strategy doesn’t need to be complicated at all – you don’t need fancy stock charts, you don’t need technical analysis, trend lines, Stochasitcs…you can forget ALL of that mumbo-jumbo.

And you don’t need to spend hour after hour a day making trades.

In fact, as a Prosperous Trader, you can Dominate the Markets, while you execute a very simple trading strategy, spending just a few minutes a day at your computer, making just a few trades a WEEK!

And if the above statement is true (which it is), then you can go out there and just LIVE YOUR LIFE! This is the CORE of what Prosperous Trading is all about.

You see, Prosperous Trading is about MORE than just making money. It’s about LIFESTYLE – about freeing yourself from your computer and your stock charts so that you can actually ENJOY your life – doing what you WANT to be doing.

And unless you’re a glutton for punishment…I’m willing to wager that the idea of sitting at your computer trading all day long isn’t your idea of a “good time”.

So, the question that naturally follows is…how? How can you become a Prosperous Trader? How does that work? The key is you need to figure out how to trade successfully and profitably in a minimum amount of time. I call it “extreme trading efficiency”.

And here’s what you need to know to make that happen:

1. You need to know when the market will have a significant movement. Exactly. To the second.

2. You need to know how MUCH movement there will be.

3. You need to have simple, yet effective strategies for capitalizing on that movement in either direction.

If you have those three requirements figured out, then you’re set. You’ll have what you need to become a Prosperous Trader.

But…what if you had a little extra icing on the cake – if you had all three of the above requirements…and then you even had SPECIFIC price points where the market was likely to have a reaction?

Then you’d be trading with DEADLY precision.

If you’d like to see an example of a Prosperous Trade, then click here: Learn day trading secrets.

So there you have it. You’ve seen a prosperous trade. You can see how you can spend literally a few minutes a day trading, make a trade or two…and then be DONE. Shut down your computer, step away from your desk…and go out there and LIVE your Prosperous Life. So…you’re most likely wondering right now…how can YOU make this your trading reality? The answer is very simple.

Claim your FREE copy of the Prosperous Trading video boot camp training series, as a GIFT from The Guerrilla Trader. In this exclusive video training series, you’ll discover how you can become a Prosperous Trader, spending just a few minutes a day trading, executing a simple trading strategy, and making just a few trades a WEEK!

CLICK HERE RIGHT NOW TO CLAIM YOUR FREE COURSE! But don’t wait…because I don’t know how long this course will be active.

Oct 16

Day Trading Secrets Exposed – The 5 Great Myths of Day Trading Explained and Exposed

By adminNo Comments

Day trading has become a popular vehicle for (attempting to) create or maintain wealth. Every single day, thousands of new Day Traders emerge from the sidelines, primed and ready for action. They eagerly seek to learn day trading success strategies used by the Master Traders.

However, when a new or a struggling day trader begins to investigate and explore the world of Trading, in an effort to make their own dramatic entrance or to improve on their results, they are confronted by a world full of seemingly insurmountable challenges and obstacles.

But these new and/or struggling Traders don’t realize that MOST of these obstacles are myths.

And because they fail to recognize this, these new or struggling Traders typically fall prey to one of the 5 Great Myths of Trading:

1. Day Trading always requires massive capital accounts, both to learn, and then to execute a Day Trading Strategy.

It is true that in many cases you do need massive capital up front in order to step into the Trading arena, depending on where you learn trading, and what investment vehicle you choose to trade. But it certainly doesn’t HAVE to be.

In fact, it’s possible to secure an excellent Trading education AND fund a trading account with as little as $3000.

This is a little known fact among newbie Traders – they assume they’ll need to have at least $25,000 to open a trading account, on top of the $10,000+ they paid an “expert” to learn a trading system.

2. Day Trading always requires countless hours spent chained to your computer, staring at stock charts.

The stereotype of a Day Trader is someone who spends ALL DAY LONG glued to their computer screens, staring at stock charts, waiting for indicators to tell them its time to make a move.

And in large part, this stereotype is justified, because this is true of most Traders. These Day Traders will literally spend HOURS, if not ALL DAY LONG at their computers trading.

They use Trading as a means to escape the corporate rat race… only to find themselves in a J-O-B of their own creation.

But it doesn’t have to be this way. In fact, it is entirely possible to be an incredibly efficient and successful Trader while trading for just a few minutes a day – if you know how.

3. It takes months (or even longer) to learn and fully grasp a “successful” day trading strategy

Like the other myths, this one CAN be true, and IS true of many (most?) traders. The reason for this is most traders use technical trading systems and strategies.

The primary problem with these technically strategies is actually the topic of Myth #4 (to follow) – but suffice it to say that technical trading systems will take months to learn, and involved hundreds if not THOUSANDS of “practice trades” before you can possibly be ready to start trading “live” (i.e. with real money).

And when you DO go “live”, that doesn’t mean that you’ve fully grasped the trading strategy. In fact, it will be months or even years after going “live” before you likely have a firm handle on your technical trading strategy or system.

But like the other Great Trading Myths, it doesn’t HAVE to be this way.

In fact, it is possible to learn certain trading strategies and be ready to successfully implement them in a matter of weeks, or even DAYS.

If you know what these ultra-efficient strategies are, and where to find them.

4. You need a PhD in Advanced Statistical Theory in order to trade successfully.

This myth is a little bit “tongue in cheek”, but you no doubt understand the concept here. Many day traders typically employ a Technical trading style, which involved the use of statistical probability formulas and other highly complex technical indicators.

New traders see the level of complexity often involved with technical trading or “trend trading”, and are so intimidated by it that it keeps them from ever trying learn day trading.

Also, most people who try to learn technical analysis will struggle and eventually fail, because it IS so complex, and the technical indicators can often be very ambiguous.

The extreme complexity of technical trading systems may be the single biggest factor that prevents new traders from entering the Trading Arena.

5. You don’t need to learn how to trade from a professional – you can just teach yourself.

Of all of the 5 Great Trading Myths, this one runs the most rampant, and is responsible for destroying the overwhelming majority of trading accounts.

If there is one thing that new Traders need to understand, and that struggling or failed Traders understand all to well, it’s this:

You are going to have to pay for your trading education, one way or another. You can either pay to learn how to trade from a Professional, OR you can pay the Market.

And the market is a much more cruel, and a much more expensive instructor than nearly any Trading professional that will teach you how to trade.

Those Traders who want to try to “figure out how to trade” all on their own, with maybe the help of a book or two, will quickly discover that this is absolutely true.

The Market loves to dine on the trading accounts of inexperienced and uneducated day traders. Don’t let YOUR trading account become an afternoon snack for the Market.

When you are finally ready to learn day trading, explore the various options available to you before settling on any specific day trading system or strategy.

Christopher Call, founder of The Guerrilla Trader would like to invite you to attend our FREE upcoming live Day Trading Training Webinar. In this Webinar, the 5 Great Myths of Trading will be further explained and exposed, and a solution to overcoming all 5 of these myths will be revealed. CLICK HERE NOW TO REGISTER.

As a free gift JUST for registering, you’ll also receive our exclusive Day Trading Success Video Boot Camp training series. But you must reserve your seat now – space is limited, and will fill up quickly. CLICK HERE NOW TO REGISTER.

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