Day Trading Talk

David Jose asked:


 

Online trading communities are become a norm now-a-days. A bunch of people with similar interests come together and form a community. Day trading community is also an online community formed by a group of persons who like to trade in different financial instruments on the same trading day.

Day trading is a term that signifies that you buy and sell financial instruments within the same trading day, whereby all stock positions are normally closed before the stock market closes for the trading day. The positions are not necessarily always to be closed.

People who participate in this kind of trading are called day traders.

So, such like-minded persons join together to form an online day trading community, whereby they share and discuss their viewpoints on various changes in stock market. They may discuss different rates at which various instruments are floating in the market. Some of the financial instruments in which they commonly day trade may include stocks, currencies, stock options, and an array of futures contracts such as equity index futures, interest rate futures, and commodity futures.

Day trading community has its own importance in that people that form this community have similar tastes and way of thinking. They are willing to share information with one another with purity and without any ill will. They are more than willing to pass on any information that may hold key to earning profits in a given day of trading in specific instruments.

A day trading community normally follows certain rules regarding registration of members who want to join such a community. Following certain regulations is a must to avoid any frauds or embarrassing situations.

A day trading community’s registration system may ask for e-mail address validation by transmitting a link to the email address that must be clicked on by the person seeking registration to validate the email address.

A day trading community should be clear about what it expects from its members. It can put up expectations in a particular page covering clear community guidelines. A day trading community’s communication with its members should be clear, direct, and done frequently. Information sharing can be a powerful tool for such a community.



Howard

David Jose asked:


Now that we all know and understand the importance of trading in our day to day market interaction, and are also aware of the rising competition in the field, let us glance at the day trading community which has evolved as a great platform for traders to buy and sell stocks or other monetary products. As the name indicates, day trading means buying and selling that is done on the very same day and nothing is left for the following day.

Thanks to the development of technology, these days a number of day trading communities run online. Which means that these businesses are primarily carried out online. All you need to do is create an account on any of the day trading communities that run their business on the web and wait for potential buyers and sellers to contact you.

The mode of trading is also quite different. You are either conferencing online or chatting with the opponent trader. The reason why day trading communities are gaining popularity is because they are quick, effective and definitely more lucrative than the outdated technique of day trading community.

These online communities do not only act as a platform where you can meet potential clients, but at the same time also acts as an advisor or forum too, where all queries are satisfactorily answered that too by trained and experienced professionals in the field.

The one major flaw in online day trading community is that people tend to take hasty decisions due to which they might just fall prey to the market and have a lost deal. Hence, once you join a day trading community make sure that you do not make hasty decisions.

Since, day trading refers to buying and selling of stocks and securities on the same day must must know who is who in the industry. Apart from buying and selling, a few other trades are also generated by this community like betting and forex trade. And all processes of trading are carried out by mediators who are also known as Brokers.



Diana

Sacha Tarkovsky asked:


Wherever you go on the internet you see them day trading systems promising you a low risk way to make a fortune however ask any of them to produce a real time track record and you won’t get one.

Because day trading simply is not an easy way to make money it’s an easy way to lose all your money. Here’s why.

Day trading is big business and it’s a great story.

The story is that you can keep losses small and make profits all the time by scalping the market and build a huge fortune over time all for around $100 or so!

The reality of course does not match the hype.

Let’s look at the facts and why day trading does not work and will see you lose your cash.

1. The Odds are not on your side

Normally day trading relies on trying to predict what will happen in a day session.

How can you do this?

You can’t.

No one can predict what will happen in such a short term time period, it’s the equivalent to flipping a coin.

To trade forex markets you need reliable data and day trading can’t give you this.

2. Losses are kept small but

You have a huge chance of being stopped out.

Just like currency movement is unpredictable in a day, so to is volatility.

Day traders normally have small losses on trades but they have a lot of them. Now that by itself is not bad it’s a rule of successful trading.

3. Profits can’t cover losses

Day trading systems never run profits for a long period of time. They want to get in and get out and scalp a profit.

Now if there lucky to get one (and even day traders get lucky) it can never cover the losses they have and they have a lot of those.

So here is what day trading gives you

Small losses + High Odds Of Being Stopped Out + Small Profits + Low Chance of Success = Loss of Equity

The above equation neatly sums up why never can win and if you don’t believe it try this simple test:

Ask any day trader who sells a system to give you a track record of real time profits with real dollars ( not a hypothetical track record ) and you wont get one.

Most day trading vendors have the sense not to trade and make money by selling books it’s a lot easier to make money that way.



Craig

Kelly Price asked:


Forex day trading and success are a total contradiction in terms – day traders don’t make money. If you want to prove this, just ask anyone selling a day trading system for a real track record – you won’t get one. Why? Let’s take a look.

The Odds

If you want to trade and win you need to be able to take calculated risks when the odds are in your favour and you cannot do this in day trading, as you have no reliable data.

Consider this:

Countless millions of traders all with different opinions trade trillions of dollars per day and to say that you can measure market movement in just a few hours or a day is ridiculous – you can’t.

Prices can and do go anywhere in a day and support and resistance levels are meaningless.

You may as well flip a coin it will be just as effective.

FACT – If you dont have relaible data you will lose over time its 100% certain – PERIOD

BUT I SEE GREAT DAY TRADING RECORDS ALL THE TIME!

Yes you do, but look at the track record and it will say:

“Hypothetical” and you will get a disclaimer.

In case you have never read one – it basically says that the track record is done knowing the closing prices!

Well that’s hard!

Let’s see if I knew tomorrow’s price in advance would I make a lot of money – of course I would. However, you don’t have the luxury of knowing the closing price when you trade though and you will lose.

Claims with No Proof to Back Them Up

I have always maintained that these hypothetical track records should be banned – There of no use at all.

Vendors use them to dupe people into buying forex day trading systems and normally throw in some outrageous headlines as well that never have any facts to back them up.

The vendor wins You Lose

The vendor’s don’t trade these systems (as they know they have no chance of winning) so they sell them to you take your money and you trade and lose.

The Myth & Reality of Forex Day Trading

The myth of making money in forex day trading is perhaps the biggest myth in currency trading – it’s actually a guaranteed way to lose and if you don’t believe me try and find someone who has made money at it.

Get ready for a long search!



Lee

Ricky Lim asked:


Many people often get confused by the financial terms such as currency, forex exchange, trading etc. It’s a big complex financial world and one of the new trading concepts is day trading.

Day trading in its simplest term means buying and selling securities, stock and other financial investment within a single trading day. It covers a wide variety of financial products such as stocks, currencies, forex, equity index, futures and commodities.

The financial products that are brought are only held with a trading day and must be sold at the end of a trading day

Due to the short time period in which to buy and sell stocks, day trading is considered risky. If you are interested in day trading, be prepared to have sufficient capital. You need to purchase at least 1000 shares of a stock. Be prepared for this capital to be expendable.

Although day trading is risky, it does have big rewards if you know how to play in this game. Many day traders never allow themselves to get emotional with any one stock. They should know when to cut their losses when the need arises as well as able to analyze the current market trend particularly in the short term.

One advantage of day trading is that the intraday margin is 50 to 1. That’s means you are allowed to trade up to 50 times your initial capital.

So what if you do not have the necessary capital to invest in day trading. Thankfully, you could try day trading currencies. Trading currencies requires less capital. You only need a couple of hundred dollars to be able to open a forex mini account.

One major disadvantage of day trading is the stock market is only open for about 8 hours each day. However for currency trading, the forex market is open 24/7. That means you can trade just about any time of the day.

Another advantage of day trading currencies is that most day traders get an intraday margin of 4. That means with the same capital, you can trade up to 4 times your capital. For example, if you have $10,000 as capital, you can trade up to $40,000. This gives you more leverage if you decide to buy higher price currencies.

Day trading currrencies are also easier to monitor and predict compared to stocks as there are less of them and the factors influencing global forex market are lesser

In day trading, you can lose big as well as win big all in a single day so I would not recommend anyone to take up day trading until you have sufficient experience and knowledge in the stock or forex markets. Wise and quick decision making is needed as well as the usual stock research analysis, market analysis etc.



Travis