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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Peter Skotnicky asked:




Computational ability has improved over a billion-fold since the first computers of the 1950s, and they’ve made pervasive inroads to nearly every aspect of modern life; entire industries have vanished or been transformed because of computers. Another transformation in an industry is underway; it really got its start in the late ’90s. That industry in the midst of a transformation is the stock trading and commodities trading industry. Stock trading, especially day trading, involves trying to beat the market on trade timing. The person who moves first on a trade tends to make the most money.

Day trading is part and parcel for the stock brokerage career, and day traders at big financial firms do trade swings with leverages of 20:1 or more (leverage is taking out a short term loan to buy shares, hoping that the profit on selling them will pay off the loan and its fees). This kind of leveraging is one of the causes of our current financial crisis - the so called ‘toxic assets’ problem, but used wisely, leverage is a sensible tool. Think of leverage in investing as being like a chainsaw. You can make very large profits, but one mistake can be quite dangerous.

It’s that ‘one mistake’ viewpoint that causes day trading to have such a hazardous reputation. There are other trading strategies - Warren Buffett famously takes a “buy and hold” strategy, looking for long term growth and reasonable dividend payouts. His strategy requires a lot of in depth knowledge of how specific businesses are run, and a lot of research and investigation.

What’s starting to change is that computational power is getting cheap enough, and artificial neural network modeling is getting robust enough, that not only are spam filters getting better, so is the ability to do market segment analysis. Day traders are, in large part, pattern analysis wonks. They’re looking for a pattern of prices and movements that indicate that a small investment can become a larger one…and automated tools, called Day Trading Robots, are making those jobs easier.

Some of the more entrepreneurial sorts are selling newsletter subscriptions based on day trading robot reports; these will usually be aimed at the small investor, and are often times centered around the penny sock or pink sheet market. As with any financial information seller, they’re going to give you information for a fee, and they’re trading on their reputation for making a majority of good trades, usually from some sort of secret pattern matching program.

These can make you a decent amount of money, but like any investor, you should use this as one tool in your arsenal. You want to investigate the businesses being invested in as well as use automated buy-and-sell recommendations from computer software. Also, most of these buy-and-sell recommendations are based on pattern matching of past performance records; this does involve risk, as does any stock investing.


Bud1%



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Jonathan Langley asked:




Day Trading Robot has been garnering a lot of attention in day trading circles as of late. In case you didn’t know, this is a stock picking system designed to deliver winning stock picks right to your email so that you can trade accordingly. Tired of hearing both the merits and lies of this system from opposing sides, I sat down with this controversial system to find out for myself if there was any truth to the Day Trading Robot system scam, here are my in depth results.

First, a little about how Day Trading Robot works so as to better understand it. This is a system which was designed in equal parts by a talented programmer as well as an expert day trader who lended 23 winning trading techniques to the mix which the system’s algorithms which it uses to identify profitable stocks are based off of. Once it’s made its picks for each day, it emails you this information in terms of what to trade and when to enter and exit so that you can trade accordingly. But this system is only as good as the winningness of its picks, and I decided to enact every trade which this system delivered to me to try to average out its overall percentage.

At the end of the day (week), I found that I didn’t win EVERY single trade which Day Trading Robot recommended that I place, nor was I expecting to. I lost a few. Out of 10 trades which I placed in my first week, I won 8 of them. However I found that my overall gains more than made up for any losses which I sustained. In fact, every single subsequent week since then for the past 3 months I’ve enacted every recommended trade, and I’ve yet to have a losing or even close to a losing week.

Because all of the heavy lifting is done for you, all that is required from you the trader is that you know how to enact trades via an e-trading account online and can enact the recommended trades, specifically. Consequently, anyone can realize some real profits with the Day Trading Robot system, even if you don’t have years or even weeks of trading experience and a healthy portfolio.


Bud1%



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Mark Crisp asked:




Day trading stock online gives the thrill of the hunt from the convenience of an easy chair. While day trading can be intense and risky, it also holds potential for fast profits. The most successful day traders understand the process and are willing to commit the time necessary to monitor the markets for hours to catch the slightest favorable change. Day trading combines research and instinct with fearless action. If this sounds appealing, start with the 10 commandments for Day Trading Success.

1. Set limits on trading funds. Newcomers to day trading need to gain hands-on experience in the market. Since the potential for profit or loss is great, start with a reasonable limit of money that you can afford to lose without sacrificing the car payment.

2. Set limits on losses. Why ride a downturn hoping for a miracle upswing? As the old saying goes, “know when to cut your loses”.

3. Manage your expectations. Sure, day traders can hit the right time and double their money in a matter of minutes. They can lose just as fast. Day trading offers good profit making potential but does not come with a guarantee. Be satisfied with gradually increasing the value of your trades and avoid betting it all on one stock. Day trading is about risk taking not mindless gambling.

4. Determine a trading strategy. Day trading requires keeping up with trends and ranges but does so on a shorter timeline. Another useful approach is to focus on specific types of businesses or industries to develop expertise.

5. Trading is the means, not the end. Day trading is fast pace that occasionally needs to slow down. Trading repeatedly just to keep trading only makes money by generating fees for the online brokerage. Take your hand off the mouse and think before you click. Day traders might make 3 trades in a day or 12; it’s not the number of trades but the result that counts.

6. Find the trends. Trend analysis shows changes that indicate an up or down move in stock prices. Since day trading is so active, you may choose to subscribe to trend reports rather than take time to develop charts.

7. Lose the emotion. The thrills and chills of day trading must be kept in check so that the buy/sell decisions are based on informed choices. If you lose, let it go. Dwelling on the loss only blunts decision making for the next trade. Put your emotions within a range, neither too high nor too low.

8. Block the fear. After tanking several times it’s easy to start second-guessing your day trading decisions. Successful online traders have to rise above the fear of picking another loser and either work your trading strategy or make changes to improve it.

9. Ignore hype. No matter how much a stock is touted in the tip sheets, if it does not fit your day trading strategy then it’s not right for you.

10. Look backward. Set a regular time to review past trades for profit or loss, application of trading strategy and information sources used. And be honest, was the trade based on tips, facts or emotion. You have to know what drives your day trading strategy to make it work for you.

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Perry Goebel asked:




Trading the news has some distinct advantages over other forms of day trading, time is a commodity that many of us just never seem to have enough of. Many traders have jobs or other commitments and don’t have the ability to be at there computers and trade all of the time.

This is the biggest advantage I see with trading the news announcements, it is that you have specific times to trade and so you can literally plan exactly when and for how long you are going to trade. This is a lot different to a technical trader who has to regularly check their charts for new signals, this requires a much greater time commitment and is not compatible with many peoples life styles and commitments.

To trade the news the first thing you need is a good news source, years ago getting a good news feed was expensive but is now very reasonable and many times free. A lot of the brokers these days have free news feeds with there live accounts and many of these are excellent and released as the news happens.

Now you would only need this style of instant news service if you are actually trading the breakout of the number. I will give an example of this to clarify my point. In this example I would be trading the Non Farm Payroll Numbers (Change in the number of employed people during the previous month, excluding the farming industry).

The first thing you would do is check your news provider and take note what the forecast is. For this example lets pretend it is ten thousand new jobs are forecast for the month. The whole Idea of trading the news is we are looking to capitalize on a fundamental surprise. So if the news is released and the figure comes out at thirteen thousand well then I would consider the forecast to be fairly accurate and thus no trade.

Now if the figure was to come out at one hundred thousand then this would be a surprise and a very good surprise at that. This would be extremely positive for the US economy so as a news trader you would be looking to buy US dollars. So if you were trading the euro/usd pair you would be looking to get short and sell euros to buy dollars.

It is these sorts of surprises that really tend to see some large moves in the markets and thus some really great opportunities for profits.

Trading breakouts like previously described can be pretty fast paced and is definitely not for everyone, but if you consider the previous scenario but don’t want to capture the breakout you still have plenty of opportunities.

With this surprise the odds are definitely favoring a single direction for that trading session ( US session 8am-4pm). In this example trading the euro/usd dollar you are looking to get short and just buy simply assessing the average daily range of that currency pair you could use your normal system for entries or for that matter any system you are comfortable with trading and look for an entry that meets your criteria and set a profit target for the average daily range.

I will give another example here for clarity’s sake, in this example we are looking at the euro/usd and at this time the average daily range is 150 pips say. So to capitalize on this we would be looking to find an entry according to our rule set and seek to take profits once price has traveled the complete 150 pips for the day or at a minimum set some form of trailing stop to lock in some profits and potentially catch some more if price exceeds the range for the day.

There are so many news announcements that the opportunities are endless, you don’t have to trade them all you can just trade the ones that are convenient if you like. Most trading forums and sites have these news calenders available all the time so just check them out and choose the ones that suit.


Bud1%



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