Ahmad A Hassam asked:




In day trading stocks, you need to learn two very important skills. The first and the easy one is doing the right stock picking. The second is the most important and the difficult one. How to trade these stocks? What I mean by how to trade these stocks is the right entry and the right exit. Without this, you will never succeed at your day trading endeavor.

Finding good stocks for day trading is not difficult with more than 50,000 stocks listed in the US Stock Markets. The most important rule to remember is that you are not an investor. Rather you are a day trader who does not hold positions overnight. No need to think long term. Keeping this fact at the back of your mind, you should focus on the intraday price movements of your chosen stocks.

There are some rules that you need to follow when doing the stock picking. These rules have been developed by different successful day traders with experience. The first rule that narrows down the universe of stocks that you can choose says that only choose those stocks that have a daily average volume of one million shares or more. What this means is that the stock is having an average daily volume of around one million stocks daily for the last many weeks and months rather than having this traidng volume for one odd day.

This rule should be followed religiously by you in doing the stock picking for day trading. You should try to avoid low priced stocks with high volume as well as high priced stocks with low volume. I explain it more in the next paragraph.

Once you have narrowed down the universe of stocks that you can choose for doing day trading, now you need to narrow it down further with this rule. This rule says that choose stocks that are trading btween $10 and $100 per share. Now, a price below $10 just,means that the stock is not well known and there might be some problems with the company. However, a price of above $10 per share gives an indication that the company has good health and the stock is not having severe liquidity problems. You see, liquidity in the stock that you choose is very important. To ensure, liquidity you chose only those stocks that were trading on average with a volume of one million shares.

Stocks above $100 might be overpriced and can be highly volatile with wide retracing swings. Stocks between the range of $10 to $100 have a consistent intraday price patterns and are best suited for day trading. When you pick a stock in this price range, observe its intraday price swing. Study the past three days data and observe the intraday chart patterns to see the price bouncing back and forth between the intraday support and resistance levels. You want a stock that has a good intraday swing.

Don’t trade stocks that are affected by government regulations. For example, a pharmaceutical stock or a biotech stock may not be good. Suppose, an approval is pending with FDA! You are trading that stock when FDA announces more tests are needed before giving the approval. You can imagine what can happen. In the same light, stay away from day trading stocks of companies that are in the process of merging.

Forex day trading can be a much better option for you as compared to day trading stocks if you are really serious in day trading. Currency market is huge with around $3.2 trillion transacted in it daily. Combine all the stock markets in the world and they don’t add up to even one trillion dollar. Currency market is open 24/5 unlike the stock market. So you can trade currency at a time that best suits you. There are six major currency pairs that make up more than 90% of the business transaction in the currency market as compared to thousands of stocks in the stock market that require a lot of fundamental and technical research. By trading only two of these major currency pairs, you can make a lot of money. Give forex day trading a try. It is a better option!

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Miodrag Trajkovic asked:




There are rumors that actually make the day traders feel bad. These hearsays point out that there is no money in day trading. Such a fallacy! Of course, these gossips have alerted the individuals who are surely making lots of profit from the said course of trade. At this point in time, stocks, futures, forex, options, and currencies can be traded by almost any individual. Overall, there are people who can prove that there really is money with day trading.

The trading market generally involves a lot of complications. If you as the day trader will not exercise some caution in trading with several companies, you may be positively going all the way to your own generated pitfall. You are also then obligated to come up with a solid foundation in line with the strategies that you will have to employ as you go through the process of trading.

In the past, only the banks and other related financial institutions were granted with the opportunities to play a part in the trading system. The main reason behind such a scheme is that these institutions were the ones which had the main contact with the market data. But this picture is already a thing of the past. Nowadays, anyone can trade. It is now actually your own choice as to whether you will trade stocks, future, currencies, or options. As long as you have the money to start an investment with, the more opportunities that you can get your hands on.

As a day trader, it follows suit that you get guidance from the so-called trading charts. Foresight is another main agenda for day traders. The trading charts can nonetheless help you out with attaining foresight. With this application, you can possibly see the potential direction and outcome of the prices in the market. Likewise, you may be able to realize as to whether or not your strategy can do wonders for you.

Indeed, day trading can be a source of living. Although there are large chances of meeting the odds in this line of career, say for example, an unexpected fall of the prices, then most probably your profit will be affected. It matters that you have your entire focus on your trading venture. After all, day trading is a full time career that demands much of your time. Needless to say, the market itself needs to be carefully watched.

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Rick Goldfeller asked:




When you want to enter the day trading business, you should be prepared. Just like in a battle, day traders only want one thing and that is to succeed. Success in the trade means earning big profits. Being a trader is not very easy as you think. It takes experience, luck and right strategies in order to gain. Perhaps you’ve read from magazines various individuals doing well in the business. They’re probably experts and know what they’re doing. You can’t be an expert overnight even though you will read many books related to the field. Before you start as a trader, it’s advisable to enroll in day trading tutorials.

What’s good with the said tutorials is you’ll learn much stuff which you will need. There’s no question on the money you will be investing but you should be aware of the trading effects. Even if you have enough capital, you can never tell whether your transactions will be a success or a failure. Let’s face the fact here, day trading is a very risky business. You don’t know what will happen next in the market. In an instance, the market can be in your favor but with just a blink of an eye, it can go unfavorable too. Day trading involves quick decision-making on your part because you need to trade your commodity before the market close in a given trading day.

It’s not only about luck-you should have skills. Some says it’s like a gamble for traders will never know the result of the trade. It’s really important to have day trading tutorials. Like starting a business, you must understand first how the industry works. In the tutorial lessons, you will be familiar with the trading stuff. Essential in the trade is the strategies you will do to realize a profit. Losing is a very common thing especially to those amateur traders. Most starters are still learning and it’s just normal to incur losses. Another thing, traders wanted to earn big profits in an instant.

They don’t have any patience and wanted to trade right away even when it’s not yet the right time. Many failures occur because most don’t have the proper skills and just depend on pure luck. In order to avoid losing, day trading tutorials can really be a big help. You will know what it takes to win in the trade rather than lose your hard-earned money. Education is such an integral part of the trade. As you go doing with your transactions, you will know much about the business. However, when you are still starting, better concentrate first in day trading tutorials.

Sometimes, it’s hard to understand some terminologies used in the trade. You need to study the different terms used so as not to be an idiot once you’re already doing your own dealings. You must be familiar with the financial instruments traded like stocks, currencies, and others. In day trading tutorials, it will teach you how to trade intelligently. Focusing on the winning side and make profits you desire.

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