Day Trading Talk

Susan Jan asked:


If you are interested in day trading you first need to know what it is all about and to understand the basics of day trading. For starters, a day trader is a person who is very active in the stock market and makes several trades a day in an attempt to make quick gains by buying and selling stocks in a short time span.

As the market is never the same day to day, no one particular day trading strategy will work each time. To be successful, you first need to understand how the market works and get a feel for the market.

This includes recognizing the stocks’ basic trend, the long and short setups, when to enter a trade, and where to place stops. Another very important basic is how to protect your profits and minimize losses.

Once you have learned the basics and are ready to try your first day trade, here are some tips and guidelines you should keep in mind that is essential to your success as a day trader.

Being a day trader requires a lot of time and practice before you get used to the everyday volatility in the market. Do not expect to become an expert day trader overnight. No matter how many books you have read or day traders you have watched, that will not make you an immediate expert.

There are day trading websites that simulate trading. Practice with their trading platform first before trying out the real thing. It could save you a lot of money and you will learn the ropes faster this way.

If you are ready for real live trading, do not be scared by the thought of losing money. There are ways to minimize your loss such as with stop orders.

If you lose money, do not worry, as some loss is to be expected. Just remember, with increased experience and sensitivity to the market, you will start turning a profit soon.

If you profit large sums of money, stop trading. Do not gamble it away by trying to gain even larger profits. You can always trade another day.

Sometimes the market will not perform as you expected. When you encounter this situation, it is best that you do not trade at all.

Once you gain more experience in day trading, you may be able to predict the direction of a stock price. However, try not to pick top stocks or bottom stocks. This is one of the most common mistakes of a beginner.

If you cannot predict where the market is heading, it is best if you stand aside and wait, or you can always go home and trade again another day.

It is a good idea to record all of your day trading results. This way you can learn what works and what does not, and be more effective in trading.

Observe good traders. Look at how and when they sell or buy. Generally, good day traders often buy on bad news and sell on good news.

Beginners often get emotional in their trades. Avoid this at all cost, stay emotionally detached and professional.

Learn to trust your instincts. Relying too much on analysis may mean letting a few good trades slip away from you.

As you gain experience, you will see that different day trading strategies are required on different days and required on different stocks. Be flexible.

Bad day traders often focus on too many stocks that are not manageable and often lose track on where each stock is heading. It is wise to limit your stocks in manageable numbers.

With patience and practice, you can be successful in day trading, and as your experience grows so do your profits. Everyday you can learn new day trading strategies in the market, which you can use to your advantage.



Michael

Sacha Tarkovsky asked:


How do you pick a day treading system that makes big consistent profits and look at day trading systems that can help you win.

So, how can you pick the best day trading system to help you make big consistent profits?

Let’s find out.

The hype

On the Internet there are a huge number of systems sold in day trading and they sound great earn 70% profits, scalp 10 -20 pips everyday etc and all for a few hundred dollars or less!

So what makes a great day trading system?

Well the answer is:

Nothing – Because the logic of day trading does not work – PERIOD

Don’t believe me?

Then consider the following:

1. Have you ever seen a day trading system publish a track record of real profits that’s made in the market NOT a hypothetical simulation?

No neither have I.

Ask any vendor selling a system for a real time track record over the longer term and you won’t get one.

How day trading system vendors make their money then?

These vendors are not stupid enough to trade the system themselves! They sell them, despite the fact the logic does not work and can never work.

They will take you money for the system so they win, then you trade it and lose, that’s simply the way it is.

So why can’t you win at day trading?

Its common sense really:

Volatility in daily and hourly frames is random.

Using daily ranges, support, resistance pivot points, or any other technical tool is a complete waste of time, as prices can go anywhere in a day and do.

The only people who look at daily ranges and consider them significant are day traders and their a very small losing minority of the millions of traders in the market.

Don’t fall for the hype of day trading.

It’s a fact that day trading system vendors don’t produce real time track records as they are sensible enough not to trade their systems.

They know they lose money.

So why not write some great copy and make up a simulated hypothetical track record and make some money selling the system instead?

People who believe day trading works are either:

Stupid, naive or both.

Don’t fall into the trap of thinking day trading will make you money it wont and if you don’t believe me ask for the proof of a real time track record of long term gains before you buy,



Anna

Sacha Tarkovsky asked:


To win at day trading it is important to predict where prices are likely to go within the day and this means looking at support and resistance.

Let’s take a closer look at the importance of support and resistance in forex day trading.

This is the challenge:

The challenge for any day trader is to accurately predict the range when faced by:

Trillions of dollars traded each day, by millions of participants which include:

Central banks, large and small managed funds, hedgers and individual speculators.

They all have different investment objectives.

Some want to make money and some simply want to hedge their risk.

How many of these pay attention to daily movements and ranges within the day?

Only a very small minority.

With such a vast and diverse trading base, support and resistance calculated within the day is bound to be a fruitless exercise.

Why?

It’s a fact you cannot accurately predict volatility within such a small time frame and the vast majority of participants are not bothered about day trading levels.

This means you are using meaningless data that has no validity.

Day traders lose all the time and never make money longer term.

Ever seen a day trader with a real time track record over the long term?

Maybe there is one, but I have never seen it.

There are some day traders who say you need to be patient and wait for the right opportunity, but if the data is based upon an illogical way of trading it doesn’t matter how long you wait.

Day trading is still the equivalent to flipping a coin.

The problem with day trading is volatility takes them out all the time.

Support and resistance levels don’t hold as they should and day traders are stopped out with a huge number of losses.

These losses are small and that’s a good thing in trading, but because the stops are so close they have little chance of making money.

Can profits to so can they cover the losses?

Of course we all know that if you keep losses small and run profits we can become a winner over time.

Well running profits is alien to day traders and they don’t get many!

They simply want to get a profit (any size) scalp the market and get out.

So you have a scenario where they cant and don’t win.

Using support and resistance in daily timescales to make money is a contradiction in terms when it comes to day trading.



Henry

Apextrading asked:


For the casual day trader, a trading club is a great idea. It gives you a chance to exchange ideas and gather information. Professional traders almost always sit in a room with other traders, constantly shouting out ideas and sharing news. These are just some of the benefits of joining a day trading club.

Imagine sitting in a room with people from all walks of life, as well as other countries, who have gathered together to learn about and begin the process of day trading. The whole idea of a trading club is to become knowledgeable about day trading, learn how to build confidence in yourself as a day trader, and to learn from each other as well. Whether you are new to day trading or not, having someone in the group who may have expertise in one area, while you may have expertise in another is a perfect way to incorporate ideas through this type of networking.

While the reason you have all come together is to make money, it is also the camaraderie that exists between all of you that will yield positive results. In addition, the leader of the group is the experienced day trader, and is there to teach and offer invaluable lessons on how to day trade and be successful. Further, bringing a group of investors together minimizes the risk because more stock can be purchased as a group than as a single day trader.

Perhaps you have seen paid ads on TV wherein a group of four people are sitting around a table using a new form of stock trading software. Regardless of whether or not they have been successful, the point is they are constantly engaging each other in conversation about a particular stock, asking questions, seeking advice, and ultimately choosing a stock they all determine is the right one.

Joining a day trading club offers you a larger network of people who can also, through discussion and debate, make the right choices that will yield positive results. Due to the leader’s ability to keep them well informed using the latest tools and resources, members of a day trading club are more informed than the single trader since there is a plethora of information available to them and through their interactions with each other.

While day trading clubs are not at all a new genre, they are also not required to register with the Securities and Exchange Commission. Ensure that you check this out before joining any day trading club. After all, you certainly want your investment protected. Also, inquire of the club how much you will need to invest. Once you have these answers, you will need to ask yourself some very hard questions. Can you afford it? Will investing tap into your savings or college tuition? Will you be able to cover all family and household expenses? Further, how do you handle losses? If you become too stressed out or anxious or have a preconceived notion that you will be rich in a matter of minutes – you are only fooling yourself. It takes time and knowledge to be successful in day trading.

The best advice experts offer in ascertaining if joining a day trading club is right for you is to thoroughly check your finances. Do you owe any money? What is your credit score? These are typical questions you would address when beginning any type of business venture.

One gentlemen who joined a day trading club stated that he had a problem with his emotions, but that the club put them in check and if he does happen to make money in an hour’s time on a particular day, he gets up and enjoys the rest of the day. Another gentleman stated he has just joined a day trading club and found the interaction among other investors invaluable and enjoyable.

Consider this: In addition to making money, you will have made new friends as well. You are all working together in unison to reach one goal – and the time spent together will yield not only positive results, but negative results as well. This is the time when your friendships will come into play; when you will discuss the situation and then move on. Remember, in day trading there is no time to dwell on the could of, should of, would of losses – it is intra-day trading that requires all of you to go beyond what was, and prepare for what is to come.

Join a daytrading club with a proven track record and you could start making money as early as tomorrow morning. Visit the website below to get more information:

www.apextrading.com



Joseph