Archive for the ‘Day Trading’ category

Stock Trading Algorithms

November 7th, 2011

An algorithm is a logical mathematical angle that when used correctly will solve a problem. For our uses, the trading algorithm will mathematically solve the stock market by following a specific formula or procedure that takes the human element out of stock trading. By creating a mathematical formula you can rule out: whims, gut feelings and other emotions that a trader may have when entering or remaining in a trade. Read more about Stock Trading Algorithms

Active Penny Stocks

October 28th, 2011

An active penny stock is one that moves up, down or sideways on a daily basis with decent volume. Its tough to tell you exactly how much volume because at 2 dollar penny stock will often trade with less volume than a .0001 penny stock. Obviously with the .0001 stock you can buy a lot more shares with the same amount of money than you can with a 2.00 stock. The amount of volume should be enough to get you in the stock without the price jumping away from you and when you sell you don’t want the bid to drop on you due to the amount of shares you are selling. Read more on Active Penny Stocks

Trading Stocks Online For Beginners

October 11th, 2011

When you first begin trading stocks online you must open an account with an online discount broker. In the past we’ve mentioned some brokers and shortly we will have a large list of the good and bad of brokers but for now, find a solid broker with a good reputation if you wish to trade penny stocks, ensure that this broker will allow penny stock trading.

That’s it.

Without a broker you can not trade. Now that you have a broker what are your trading plans. Here are 10 of our ideas (there are many more if you search):
4 Things to Look for When Buying a Stock
Various Day Trading Strategies
20 Huge Investment Mistakes
Buying Penny Stocks
Buying Stocks on Dips
Swing Trading Strategies
Arbitrage Trading
Buying Penny Stocks on The Bottom
Buying Stocks on Margin
Buying Gold Vs. Buying Silver

Hope these articles help you turn a profit in the trading world.

Buying Stocks on Margin

October 5th, 2011

Should I buy stocks on Margin?

Margin is the act of buying stocks using borrowed money through your broker. The amount of margin you can use is decided upon by your broker and the size of your account. Basically, the broker will lend you money based upon your accounts worth. Very similar to borrowing money for a mortgage on a house. In that scenario the bank looks at your value and what you can put down, then they loan you the rest for the house. With margin, you are attempting to use borrowed money to make a much larger gain. As you can easily see, borrowing money to invest in the stock market can be quite risky. If you buy in a bull market and use all the funds leveraged to you, you will make much more money than you would have without using margin. The same goes for a bear market and taking a loss. You can then lose much more money than you expected. Margin is a dangerous game. Read More about trading on margin.

Buying The Dips

September 26th, 2011

Buying the dips is a strategy used to purchase the stock you want at a better or cheaper price. When you find a stock you like you should begin to follow and chart the stock. Nothing moves straight up and even if your stock is moving upwards it will have a couple days of down prices before continuing its trend upward. Perfect timing when “buying the dips” would be to catch the stock on a pullback to a recent support area and then pick up the stock. You will be at an area of support and hopefully the support will hold and bring the price higher, in this case you will immediately have a green trade. Some traders use the buy the dip strategy to increase their position in a stock as well. Day traders will use this strategy for intraday trades where they look to pick up a gain by scalping. Read more about Buying the Dips

Twenty Huge Investment Mistakes

September 20th, 2011

Here is a list of investment mistakes made often!
1. Know why you are investing in a specific company or stock. Also know why you are in the stock market at all. Click here for more investment mistakes

Buying a Stock: The 4 main things to look for.

September 14th, 2011

Lets assume everyone knows how to buy a stock. Get a broker, pick a stock, and pay for it. How many traders know what they are buying though? Here are 4 important things to look for in a company when you wish to invest in their company by purchasing a stock. Read more

Merger and Acquisition Trading Strategies

March 23rd, 2011

Merger and Acquisition (M+A) is when you trade the stock of a company based on a future event. This event will be a merger or acquisition. When these events are announced as a “deal” it usually is based on a “target price” for the company. There tends to be a gap between the current price and the target price and this is a spread that can be traded through arbitrage trading. There are many risks involved in arbitrage trading and you must understand them to trade safely. (click here for other day trading strategies). Click Here for More on the Acquisition and Merger Article

Trading Versus Investing

February 15th, 2011

Trading versus Investing

    People have been investing since the beginning of time. When one is investing, the “investor” supplies cash (capital) to help a business. The business in turn gives the investor an ownership stake in the business. When we’re talking stock and companies, this investment results in the investor receiving shares of the company. When one invests in a company they are expecting the company to grow well and prosperous resulting in the investor making a profit on their investment. Click Here for More Trading Versus Investing

Day Trading Penny Stocks

February 6th, 2011

Day Trading Penny Stocks

In previous articles we discussed various day trading strategies and how to make a living day trading. In this article we will focus on various techniques for day trading penny stocks. Penny stocks are very different from other stocks in that there is a greater risk of being the victim of fraud.

Penny stocks are usually stocks under 5.00 but in reality you can find much higher priced ones. Day traders think of penny stocks as very cheap. These stocks are usually very inexpensive. You can find them as low as a fraction of a penny. Click Here for More Day Trading Penny Stocks