December 21, 2010
Day Trading Robot - An Investment Strategy
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 % @
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 % @
Filed under Investing by admin
December 19, 2010
Day Trading Robot System Scam?
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 % @
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 % @
Filed under Investing by admin
December 15, 2010
Back To Basics - 10 Day Trading Tips
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.
Create a video blog…instantly.
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.
Create a video blog…instantly.
Filed under Investing by admin