Day Trading Talk » Day Trading

Currency trading – Why Are Fibonacci Indicators So Useful?

icyimp — Thu, 02 Jul 2009 00:29:16 +0000

While some gurus dismiss it as yet another exaggerated term, others think that there’s credence to this speculation. Using the Fibonacci indicator, you can maximise your appreciation of currency trends as well as your profit markups in trading. , before this idea is applied, one should understand that on occassion, support levels, which are damaged, can get resistant in later rallies.

This occurs particularly when support levels of damaged kind coincide with retracement levels of the Fibonacci trend. One of the central driving factors behind the Fibonacci foreign exchange trading method is that when the market swings towards the same trail, the trend relates to each other after the breakout phase. Do These Terms Sound Like Latin To You? If this is the case it might be because you don’t have the right data about the foreign exchange trading market. But in the case of foreign exchange trading what’s more critical for the currency exchange trader is the Fibonacci proportions derived from this sequence of numbers, i. Foreign exchange traders can seriously benefit from this mathematical proportions thanks to the fact the oscillations noted in forex charts, where costs are visibly changing in an oscillatory pattern, are known to follow Fibonacci proportions really closely as indicators of resistance and support levels, perhaps not to the last cent, but so close as to be actually extraordinary. What this implies is that by learning the proper Fibonacci trading methods and strategies you will understand how to establish the most likely turning points in the market before the price gets there. Many mavens have used such systems to build price targets set in the future. Forex best. Yet the Fibonacci remains one of the most respected and tested ones today. These strategies help you look after your capital by spreading it across many currency trading systems.

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Forex Megadroid vs Forex Magic Machine

icyimp — Wed, 27 May 2009 23:23:38 +0000

Here we’ll look at all of the significant points. Most traders lose, so be sure you have all these main elements in place before you begin to trade.

The majority of Currency exchange androids also trade short term and I saw one that generates twenty trades a week.

I know traders who make triple digit gains and trade less than that in a year. Leave day trading alone unless you need to lose swiftly. Simple Technique and Not Curve fitted Ideally your system should be straightforward only a few rules and thats it. Also your system mustn’t be a curve fitted system in hindsight. If you would like to see a fine example of curve fitting, look at any Currency exchange robot, great gains in hindsight and losses in realtime trading.

Correct free signals Foreign exchange are typically updated on an once a day basis, and they’re based off market fluctuations and technical research into the market by a professional. These are best employed by folks who are not able to take the time that it takes to follow the trends and market patterns themselves.

Foreign exchange trading has turned into an extremely favored technique to get rich fast, but to profit off this market you may be educated on how things work. Foreign exchange trading is an ability and it’s too straightforward for the noob to leap into the market with impractical expectancies and finish up losing lots of money. Due to this, it is so crucial to do the analysis needed by employing a demo account so you can practice the abilities you have learned. If you’d like to see a fine example of curve fitting, look at any Currency exchange robot, great gains in hindsight and losses in realtime trading.

Newest Forex Automated rading Software we reviewed last week is Funnel’s latest updated FOREX MegaDroid - inexpensive home settled business opportunity that’s vastly under priced.

Meghadroid vs Magic Machine

You are trading a chances based market and dealing in chances not certainties. When working with a chances based market you want to trade the actuality of price change and not foretell. Prophecy is hoping or making a guess and cursed to failure, so leave it to the far out investment crowd. You want to place stops to protect yourself but confirm they are outside of random volatility. If you need to win at Currency exchange , you must learn the way to do this, its the basis of currency trading success. Summing Up Your target is to earn money and that implies working smart not hard. Forget trading a lot, being clever or attempting to envision.
Another new and affortable Robot on the market is Forex Magic Machine. Forex Magic Machine employes the most innovative auto learning algorithm (R.I.P.P.E.R) to anticipate the marketplace.

Both Trading Softwares include great bonuses

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Day Trading Practice

kirilesko — Sat, 14 Feb 2009 08:50:32 +0000

Markus Heitkoetter asked:

Day Trading is a fascinating vocation and can be enormously lucrative, more than anything I know.? I think most people will probably be surprised to hear me say that day trading is much less stressful than holding stocks overnight.

I think the biggest fascination of day trading is that you can work wherever you want. And there are lot of other benefits: no customers, no employees, no vendors, no boss, … just to name a few. So it’s not surprising that there’s a huge interest in day trading.

But there’s also another side of day trading that you should know: Day trading is not a get-rich-quick scheme, even though some seminars convincingly sell it as such.

In this article you will learn what you need to do to succeed with day trading.

Let’s get started.

What Exactly IS Day Trading?

It’s quite easy to define day trading: Day Trading refers to the practice of buying and selling financial.

These days it is easy to get started with day trading. Competition amongst brokers is fierce, and many brokers will let you open a trading account with as little as $2,000.

What it Takes to Succeed with? Day Trading

Its an independent business where your success is in your own hands and no one else’s.

Therefore you have to treat day trading like a business. Every successful business man has a business plan, and as a trader you need a solid trading plan.

Here are some key elements of a good day trading plan:

Your Goals: How much money do you want to make with day trading?

The Markets: What markets do you want to trade?

The Timeframe: Do you want to trade on 60 min, 30 min or 10 min charts?

The Trading Style: Do you prefer trend-following or trend-fading systems?

The Entry Rules: When exactly do you enter the markets?

The Exit Rules: When to take profits? And when do you bail if the market moves against you?

The Results: What results do you expect? And how can you improve your plan?

These are just a few things you need to consider when getting started with day trading.

Characteristics of Successful Traders

Below are some characteristics of successful day traders:

Successful day traders have tools that help them to identify the direction of the market.

Successful day traders always know when to exit.

Successful day traders control their emotions.

Successful day trading typically requires skill and discipline as well as experience and knowledge of the capital markets.

Successful day traders know that not everyday is a high probability trading day and overtrading can be hazardous to your wealth.

Successful day traders invest the time and money needed to learn the tools of the trade and get the best tools and resources they can.

In Conclusion?

Take the time to learn the business, practice without using real money in a stimulated scenario, study as much as you can about it before you begin and most importantly do not risk money you can not afford to lose.

Day Trading is exciting.? Day Trading can be very lucrative. And it can help you achieving your dreams.

Define your goals, make a plan and then execute the plan!

Good luck and all the best in your trading.

Erik

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kirilesko — Mon, 26 Jan 2009 17:54:50 +0000

Tarkovsky asked:

FOREX day trading is more popular than ever and online you can get a huge amount of e-books and FOREX day trading systems, which promise you regular income and huge capital gains.

Here we will look at how to separate out the myth and see the reality in relation to day trading and how to win in the markets.

Myth – Day Traders Have Profitable Real Time Track Records

Reality

FOREX day traders don’t make money and the proof is that of all the e-books and systems for sale, you never see a real track record of real profits made in the market over the longer term.

What you do get is a hypothetical track record, but these are not worth the paper their written on.

Why?

Quite simply because their devised in hindsight – knowing the closing prices.

Well, if we all knew tomorrow’s prices today we would all be millionaires!

Hypothetical track records are simply made up and have no bearing on how successful you will be trading the system.

Myth – Day traders trade their own systems

Reality

Most FOREX day trading systems are sold by failed brokers, or marketing people who have the sense not to trade the system themselves.

They don’t need to, as they make money anyway.

They can simply rely on writing some marketing copy to appeal to the greed of investors, then sell them the system.

They get their fee and the FOREX trader gets the loses – fair deal for them!

Myth – You can predict short term volatility

Reality

This is of course why day trading does not work.

Trillions of dollars are traded each day by millions of participants and to say you can predict where prices will go in a matter of hours is laughable.

The only people who take notice of support and resistance are losing day traders.

Volatility can and does, take prices anywhere in a day and levels of resistance and support are constantly broken handing day traders loses.

Myth – Day trading restricts losses and runs profits

Reality

As day traders work with meaningless data they can’t win of course but many think that day trading restricts risk, but it actually creates it.

Losses are small, as they are near daily support or resistance ( which get broken frequently as the data is meaningless) which simply ensures they get stopped out with a loss albeit a small one.

Running profits?

Forget this with day trading!

They are looking to scalp a few ticks or close positions out quickly.

The result is they can never run profits to cover the huge amount of small losses they get.

The biggest myth of currency trading is that day traders make money they don’t.

They lose and system sellers laugh all the way to the bank.

The proof of the above is:

If you ever ask a day trader for a long term track record of real profits – Try it and see if you get one.

If you want FOREX education avoid day trading and learn FOREX Trading methods that actually give you a chance of winning.

Day trading is simply one of the best ways to lose your money in online FOREX trading, so don’t fall for the myth understand the reality.

ARDEN Roger

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kirilesko — Sat, 24 Jan 2009 06:41:38 +0000

Sacha Tarkovsky asked:

Day trading systems and methods are one of the most popular ways to trade Forex.

Let’s look at a common mistake in relation to day trading that you need to avoid to make money.

Here is the most common day trading mistake.

Believing the logic works

It amazes me people do not see that the odds are against you when you day trade as the logic it is based upon is simply not true.

The biggest mistake of all is that people think they can make money longer term day trading forex.

So why can’t you win?

Its common sense really – the data is unreliable and cannot be used.

Think about this:

Trillions of dollars are traded daily by millions of traders all with different investment objectives and levels of skill.

Very few pay any attention to daily volatility (it’s obviously random) and daily ranges which simply are not relevant – volatility in daily session goes wherever it wants.

Most traders accept this fact but not day traders they believe there is order in hourly or daily frames and of course there is not.

No indicators work in short time spans

Day traders of course use pivot points and support and resistance to enter trades and place stops and wonder why they continually get stopped out.

Day Trading breaks one of the fundamental rules of investment

Which is of course run profits and cut losses quickly

Of course day traders cut losses quickly and keep them small and they of course have a lot of them!

Day traders though can’t run profits. This is alien to day trading, they are happy to scalp a few points and get any profit they can but of course these can never cover the huge amount of small losses they generate.

The result of relying on unreliable data is a lot of small losses and a few small profits which sees them wiped out over time.

TRY THIS TEST

Find a day trader who can give you a real time track record of profits made in the market over the longer term say 2 or 3 years and you won’t get one.

There are many vendors selling day trading systems and they make money from selling their method to you and are not foolish enough to trade it themselves.

They produce hypothetical track records that are done in hindsight.

That’s not hard when you know the closing prices anyone can make money!

The real proof is making money and the fact is day trading is not a way to do this and ask for a real track record and you wont get one.

Get the odds in your favor

The biggest mistake in relation to day trading is to believe that it works – it doesn’t and there are far better ways of making money where you can put the odds in your favor.

Tom

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kirilesko — Wed, 21 Jan 2009 16:28:05 +0000

Kelly Price asked:

Having been a forex trader for 25 years it amuses me when I see writers defend day trading. They say it really can make money! – Of course they have no track record to back it up just empty words. Fact is you are guaranteed to lose in day trading for one simple reason:

All Movements in Short Time Frames Are Random

Trillions of dollars trade hands each day and million of trader’s trade, all with different objectives and opinions and to say that you can predict what they do in a few hours or a day, is ridiculous. You can’t.

Volatility takes prices anywhere in a day and support and resistance levels are meaningless, so you would have the same success rate flipping a coin.

It’s absolutely impossible to get the odds on your side – PERIOD

This is of course why you NEVER see any of the vendors selling these systems give you a real time track record – Why?

Because they don’t dare trade it!

They would rather write some enticing copy and appeal to the greed and naivety of traders and make their money selling you the system – they win you lose – period.

But I have seen a track record you may say and yes will have, but it’s NOT real.

If you check the disclaimer on it you will see there all hypothetical!

What does that mean?

It means done in hindsight knowing the closing prices!

Now who can’t do that it’s not exactly hard.

If we all knew tomorrows price today we would all be millionaires but we don’t – and neither do we know what will happen tomorrow, so there not worth the paper their written on.

Day trading is a good story but the logic doesn’t add up and the biggest lie about day trading is you can make money at it longer term.

If you could you would see a track record or the vendor would shut up and trade it himself and not need your few hundred dollars.

If you want to win

Appreciate that trading is an odds game and to trade the odds you need to trade over longer periods ,where the data is valid and you can have a chance of getting the odds on your side.

Finally

Don’t day trade, get real and trade with the odds on your side.

Terry

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kirilesko — Mon, 12 Jan 2009 11:43:50 +0000

Jim Pretin asked:

Day trading is the practice of buying and then selling a stock all within a single day of market activity. Day traders dabble in a number of different financial instruments, such as stocks, currencies, stock options, and futures contracts such as interest rate futures, equity index futures, and commodities futures.

It is not uncommon for a day trader to execute hundreds of trades in a single day, whereas others might only make a few trades. Some look for swings in prices that may last a few seconds or a few minutes. Such a trader literally will buy a stock and then sell it within a few minutes, or sometimes within 30 seconds or less.

Others look for changes in momentum and will hop in at the beginning of an upswing and then ride it out until the upswing is over. This is known as momentum trading. Another strategy that day traders often employ is called position trading, where they look for a stock that is likely to experience a significant increase in price over a period of a few days or even a few months. They hold their position until the price plateaus, and then they dump it.

Most average day traders look at the resistance and support levels for the price of a given stock. When a stock has reached its historical maximum, it is said to have reached its normal resistance level, meaning it probably will not go up much more. When the stock has reached its historical minimum, it is said to have reached its support level, meaning it will probably not go down much further. However, new resistance and support levels are established all the time, so it is not always smart to rely on historical price levels to gauge future price movements.

Most traders look at websites like MarketWire for the latest breaking news developments to make their investment decisions. If a company has just put out a favorable press release, the price of the stock will likely go up in the short-term, so it is smart to buy some stock as soon as the story is released, and then sell it when the buying frenzy starts to lose its momentum.

One of the most common practices utilized by day traders is known as buying on margin. When you buy a stock on margin, you are basically borrowing money in order to buy stock, and of course the money that you borrow has to be paid back at a certain time. Most brokerages usually require that you have a certain minimum amount in your account in order to borrow.

Some financial institutions require that you have an account balance equal to 25% of the amount you are going to trade on margin, and some require 50% of the amount borrowed. And usually, the trader is required to exit a certain percentage of the positions they have in various stocks by the close of business on the day when the trades were initially executed. Buying on margin is extremely risky, because the money you lose on trades is still owed the lender. Margin orders are not recommended for inexperienced investors.

Another popular trading strategy is called short selling. This is where the trader borrows a stock from a financial institution and then sells it, hoping that the price will go down in the near future so that the trader can buy the stock back at a lower price when it comes time to return the stock to the lender. The difference between the price it was initially sold at and the cost to buy it back in order to return it to the lender represents the profit for that trader. Short selling requires advanced knowledge of market trends.

After a stock is bought and subsequently sold, there is a settlement period that must elapse before the money earned from the sale can be used again to place another trade. The settlement period is usually 3 full business days. This can be especially frustrating for neophyte day traders who have opened up their first brokerage account and then put all of their money into one stock, and then sell it the same day when it goes up, only to discover that they have to wait until the transaction is settled in 3 business days before they can place another order.

So, if you are new to trading, do not use all of your money to place a single trade; set aside some money so that you always have some money in your account that is not tied up in settlement, so that you can continuously trade without interruption.

I hope this information has helped you to become familiar with day trading. Try to set aside some money for investing and start while you are still young. The earlier you begin, the more money you can potentially make down the road. Some day traders make millions, others lose everything, so you should carefully research the companies you are going to invest in beforehand and you will do fine.

Howard

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Hello Day Trader!

admin — Mon, 05 Jan 2009 19:20:51 +0000

Let’s share interesting data, stock market analyses and graphs here. Which trading Platform is your favored? Did you ever try trading robot? Who is the best Stock Market mentor today?

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kirilesko — Wed, 31 Dec 2008 17:11:16 +0000

James Ethridge asked:

Day trading is defined as the buying and selling of a security within a single trading day. It is daily, online stock trading with very short investment timeframes. Those who do this day in and day out are traders, not investors.

Because of the high profits (and losses) that day trading stocks makes possible, Day trading is often regarded as more like gambling than investing. In truth day trading is about risk taking not gambling.

Day traders work from their homes or offices. With their eyes glued to computer screens, a day trader may execute over a hundred trades a day.

But they typically do not hold stocks overnight. In fact, they may

hold stocks for only a few seconds to limit risk.

A day trader will usually sell their positions before the stock market closes for the trading day to avoid the risk of price gaps between the previous close and the next open. Some day traders consider this to be a golden rule to be beyed at all times. Other traders believe they should let the profits run, so it is acceptable to them to stay with a position even after the stock market closes for the day.

For example,at 10:00 AM a day trader might buy 1000 shares of stock just as the price begins to rise, then sell it at 10:04 AM when it is up by 1/2 ($0.50). The day trader makes $500, minus commission of about $29.95 or less per trade, that is a quick $440.00 or so, excluding taxes.

Many day traders focus primarily on the NASDAQ. It is typically more volatile than the NYSE or AMEX, so it offers more opportunities to play the intraday price waves and troughs. Volatility however also carries high risk,in the time it takes to grab a cup of coffee, a stock may move 1/2 point or more.

To some, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch intraday price changes.

Depending on your trading style and strategies, the number of trades made in a day may vary from one, to dozens or more. Some day traders manage to earn millions per year solely by day trading stocks.

Day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the internet. In the past, the tools for day trading stocks were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently available online.

When you are ready to start day trading, you will need to choose a trading system such as the one I recommend on my website (see Authors Bio).

This course consists of two volumes and two exercise books, which will teach you everything you need to know, even if you have never traded stocks before in your life. The new second edition has been completely revised for 2008, and includes even more detailed examples, refined trading strategies and online access to a set of in-depth training videos.

Day trading is not a get-rich-quick scheme, it is a mentally and psychologically challenging activity and is by no means meant for everyone.

Francis

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kirilesko — Sun, 07 Dec 2008 02:35:23 +0000

John Howard asked:

Forex is an open market for trading foreign exchange where money itself is bought and sold. ‘Forex day trading’ is in general referred to as simply the normal forex trading. Very less difference can be seen. In general cases a day trader is a person who makes several trades in a day, buying and selling a number of currencies. They are people who try to increase there profits by taking advantage of the small increase in the currency values. A forex day trade is similar to the stock market trades except that in the forex day trade traders trade currencies and not stocks. The major advantage of a forex market over stock market is that instead of traders investing and waiting for many years for there stock values to increase, here they just see there currency values increasing and decreasing over time. This allows them to make several trades within a day.

Forex day trading allows a trader to open an account for themselves for as less as 250$. The amount that is needed to open an account varies from one company to company. There are several agencies that have brokers mediating a firm or an individual to the market. Brokers are people who educate individuals and firms to work there way through the market. The work of a broker is to help traders to get through the market without suffering much loss. Certain forex agencies also provide traders with forex software’s. This software’s show’s the ups and down’s of the currency values in the form of graphs, chart diagrams and data flow diagrams. They are very efficient in bringing out the current statistics of the currencies. In a forex day trade currencies are often traded in fixed pairs, the main currencies traded being dollars, pounds, euros and yen. These are normally traded against dollars.

Only after the internet forex trading becoming so popular, was there an opportunity for even commoners to trade. Until then only co-operate firms and large financial institutions was able to trade in the forex market. Forex now has become so simple that certain traders have taken it as a hobby. With the help of the vast number of software’s available they are able to predict the changes in the market and make alterations in there trade accordingly. The forex day trading is similar to what is called as the future’s market. The advantage here is that the liquidity that is offered here is higher and the risk factor is lower due to the lesser investments. Forex can be a very serious carrier option for those who can invest high amounts and can play the market well. The profits that can be obtained depend on an individual’s skill and the experience that they have obtained by being in the market.

Theodore

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