Archive for the ‘Day Trading’ category

Trading Stocks in a Hot Stock Market

January 19th, 2011

The stock market is usually hot when its running up but its hot even when its going down. The market usually runs on trends and a strong down trend is a hot stock market to trade in as much as a market that makes higher highs daily is also hot. This is important as a lot of traders refuse to short stocks or buy puts. If the stock market is heading down quickly this is a great opportunity to trade short. The confusion ensues when the media is stating what an awful stock market this is and it is to some people. You will even find these people in a stock market forum. They will be yelling how the market will go back up soon and failing to make money as stock prices drop. Read more about Hot Stock Market Here

Swing Trading For A Living

January 11th, 2011

There is a large learning curve when you begin stock trading. Whether you are trying to learn how to day trade for a living or swing trade for a living. There are a lot of ups and downs and ebb and flow within the stock market on a daily, weekly and intraday time frame. You must get a feel for the market and the flows of whatever time frame you decide to trade. In this article we will focus on swing trading and swing trading strategies. Click Here For More Swing Trading Strategies

Day Trading Strategies

December 17th, 2010

Day Trading Strategies

Day trading is the term used for purchasing and selling a stock in the same day. A day trader is someone who profits on the stock market by employing day trading strategies. Often day traders will use “margin”. “Margin” is the borrowing of capital through the traders brokerage which enables the trader to purchase more shares than they could have if they only used the amount of money in their account. Often these trades are very short, the trader will buy a very liquid stock and sell on a small price move. Here are some strategies to use if you plan on day trading for a living. Read the rest of DAY TRADING STRATEGIES here

Stock Market Forum, Stock Picks and Trading Tips

December 13th, 2010

Using a stock market forum for trading stock picks and investment ideas can be daunting. Within any stock forum there will be millions of threads discussing the latest stock news, trends, moves, and predictions. You will also have varying threads for stocks from different countries stock market Canada is one of the more popular country forums. Another big up and coming stock market country is Asia. Besides threads in a forum, most trading sites have a stock chat room where day traders make very quick trades while playing quick swings and scalps. Read More About Stock Market Forum

How to Trade Stocks in a Stock Chat Room

December 10th, 2010

Trading in a stock chat room can be beneficial but it also has many draw backs. When trading stocks in a chat room you have more eyes on the stock market. In theory this means with more than one set of eyes you should be able to find more profitable trades. For this to actually happen it requires that you find a chat room with strong traders who can find trades that will be profitable and they need to be able to do this on a consistent basis. You will need traders who are at least as good as you and maybe trade a different sector. Read More Stock Chat Room

Arbitrage Trading

December 8th, 2010

What is Arbitrage Trading?
Arbitrage trading is one of many day trading strategies. It is the act of buying or selling a security within the trading day that takes advantage of value differences withing the market the security is being traded in. Every day the stock market is open arbitrage trades are being made all throughout the day.

An arbitrage trader will purchase a security and sell the same security (or one closely related) at the same time. They attempt to profit off of the value differences in the different markets. They may use the difference between CME futures and the NYSE for their trade. Often when news or events occur it can move the index higher or lower. Both markets will not move at the same time or for as strong a move. They will be unequal in price for a given amount of time. This is where arbitrage traders attempt to make their profit. More Arbitrage Trading

Stock Trading Mistakes

November 23rd, 2010

4 Common Trading Mistakes

There are a number of common mistakes traders make when trading stocks. A lot of these can be avoided with knowledge and practice but you must recognize the mistakes when they occur or avoid them altogether. Otherwise you will lose money and the only reason your trading is to make money.

1. I always avoid trading the runaway trains, this can also be called “do not chase”. You see a stock on a nice trend then enter at your price, I usually wait for pullbacks and then enter at the price I want. Now and then I miss a trade and thats ok. You can also trade these pullbacks, if your already in and the stock goes crazy find a point to take profit or at least raise your stops and re enter on any pullbacks. more stock trading mistakes

Using Bollinger Bands with Penny Stocks

November 3rd, 2010

Trading penny stocks can be a very lucrative form of trading if certain guidelines are met. One of those guidelines is having the proper tools to evaluate and chose winning penny stocks. Charting software is an important component of a trading system and within the charting software there are various indicators that a person can use when considering a penny stock investment. This article will cover one of those indicators, Bollinger Bands. more Penny Stocks

Day Trading Rules

October 26th, 2010

If you plan on day trading for a living you need to know the rules that apply to traders categorized as Pattern Day Traders (PDTs). PDTs are defined as traders who make 4 or more day trades within a 5 day period, unless his/her day-trading activities do not exceed 6% of his/her total trading activity for that time period. Thus, if you have only 4 daytrades in a 5 day period but have done more than 67 trades during that time, then less than 6% or the trades were day trades and hence do not categorize a trader as a PDT. Day Trading Rules continued

Swing Trading Strategies

October 4th, 2010

Many people that are interested in trading the stock market hope to replace some, if not all of their income. If your intention is to swing trade as your primary source of income, it’s most likely going to take a good amount of time before you can do it consistently. Do not go into swing trading thinking that a few weeks of practice is going to be enough to get you there. Be prepared to spend months or years learning and getting experience by trading before you can even think about quitting your job to trade full time.

Full time swing traders spend many hours a day, during trading hours and after to research their upcoming trades. People that do it full time also handle pressure very well, so if you don’t, then you may want to reconsider your intentions. Many people come to find out that they cannot handle the stress involved with trading as a full time job. When swing trading becomes your sole source of income, it can cause enormous pressure to consistently bring in money. You may also let your emotions get the best of you after a string of losses and gamble your money on trades that are not well thought out. This cuts short a lot of new traders futures. When you have a string of losses, the best thing to do is stop and evaluate what went wrong, not immediately trade more to try and right the situation.

To be good at swing trading, you do not have to be a genius or have a crazy high IQ; you just have to have self control. You have to have practice constraint, discipline and self calm. You must remain unemotional during all times, especially during loss. When a trade doesn’t go your way, do not try to make the situation right, just look for your next trading opportunity and move on. This is what separates the successful and the unsuccessful traders.

Once you get started swing trading on a full time basis, if you have good profit over a few months, don’t take that as a sign that you can quit your day job. There are ups and downs and you need to make sure you are trading with enough that you can support yourself. If you have monthly expenses of $6000, you cannot expect to make that much trading with $30,000. That would be a nearly 15% gain each month, which is not going to be consistently hit. Some of the best traders in the world only averaged 20%-25% a year over 25 years.

Most swing traders are in the market to add supplemental income or to improve the worth of their investments. This is far less stressful as you are not relying on the profits to live and pay expenses. If you make a mistake or have a string of losses, it won’t put you in a really bad position and you can just move on and learn from the mistakes. Part time swing traders usually do their analysis after they are off work and after market hours. They do their research and plan their trades for the next day.

It takes a lot of time and experience before you can be at a place where swing trading can replace a significant amount of your income, or all of it. You have to have a lot of capital and be able to control your emotions when it comes to trading. If this is your goal, get started slowly learning the stock market and practicing trades and one day you will be ready to take the plunge.

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