Investing Guide

If you want to trade like a professional, then you must do what professional traders do. Professional day traders study the markets on a regular basis and are constantly coming up with strategies to help them be extremely successful. They know how to quickly spot trends and patterns so they can capitalize on them. They have a list of stocks that they keep an eye on so they can learn how to better predict when those stocks will move up or down.

A professional day trader understands that diversification is key. They never put all of their eggs in one basket. This way they know they can not be wiped out with just one bad trade. You can’t have the all or nothing mentality and expect to be a successful day trader. Its just too risky. You also can’t believe everything that you hear. There is a lot of talk that goes on in the day trading business. And if you believe everything that you hear, you will be in a lot of trouble. Continue reading ‘Tips For Trading Like a Professional’ »

A day trader is someone who buys and sells stocks, options, or other financial instruments in a short time frame-typically within the same trading session-using trading patterns and other types of technical analysis to determine profitable strategies. The goal for this type of stock trader is to generate a consistent return based on successful trading strategies. By nature, the investment strategies used by day traders differentiate them from investors, who usually utilize strategies with much longer time horizons. Continue reading ‘What Is a Day Trader?’ »

Day Trading in Your Birthday Suit

Day trading has become extremely popular with the average individual investor. Why? Because all the tools of the trade are easily accessible including real-time market activity, investing indicators and lightning quick trade executions, and enough charts to make Milton Friedman dizzy. Your home becomes your own personal Wall Street except you don’t have to wear those silly vests or use those weird hand trading signals, in fact you can sit in your birthday suit in front of your screen with a beer or cup of coffee and switch to daytime TV if you get bored.

Your mini Merrill Lynch can be set up for Less Than a Dinner at a nice Steakhouse Continue reading ‘Day Trading in Your Birthday Suit’ »

Tip #1 – Focus On 1 or 2 Techniques Only

There are many techniques that one can use when it comes to day trading. But if you want to be successful, you will only focus on 1 or 2 of those techniques. Why? Well the reason is very simple. It’s much better to be great at a few things then mediocre at many things. The idea is to become so knowledgeable in a few techniques that you become an expert in those areas. When you become an expert in a few select areas, you will be in high demand and will ultimately be able to make more money.

Tip #2 – Be A Great Money Manager

To be a successful day trader you must be a great money manager. You must know when to take a risk and when not to. You should risk no more than 2% per position. The goal is to make sure you can live to trade another day. If you blow it all in just one day how can you expect to ever become a great trader? The best of the best watch over their accounts like a hawk. They never put too much in one position. Each position is very small so no matter what happens, it won’t have a huge impact on their account. Once your account starts to grow, you should risk even less than the 2%. Continue reading ‘4 Day Trading Tips For Beginners’ »

To decide what type of trading you’re going to get into, you ultimately need to decide how much time you have or want to dedicate towards trading.

For example sake, let’s say you want to start day trading, but you don’t have a set time in the morning to trade because you’re at a job or doing other things. This is a classic situation in which time is a barrier to success, because you’ll need to be watching the market’s every move, every morning.

On the other hand, in the Forex currency exchange and other international public stock and commodity markets, you can literally trade 24 hours a day. You can trade the Japanese Yen at 5:00 a.m. in the morning, or you can trade the Euro at 11:00 p.m., all thanks to time zones and globalization of the Internet. It all comes down to what your schedule is and what it allows. Continue reading ‘Scheduling Your Success and Determining Your Time Frame as a Trader’ »

We all know what day trading is. According to Wikipedia, day trading is “the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day.” Well, that makes sense. If you are trading stocks on the New York Stock Exchange, the Market opens at 9:30am EST and closes at 4:00pm EST. So any positions that are both opened and closed within that time are considered a day trade.

But what about night trading? How does that work? The truth is…it works best for the Futures Market. Most Futures contracts buy and sell nearly around the clock. So a trading day takes on an entirely new meaning. Continue reading ‘Night Trading – It’s For Anyone Who Works’ »

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Remember the movie with Bill Murray, a television weatherman who is sent to Punxsutawney, Pa. to cover the annual appearance of the town’s groundhog. In this movie Murray finds himself doomed to relive the same day over and over. His alarm rings at 6:00am and his time loops starts again. At first, he is confused by the phenomenon, denying that this can be happening to him. But as he is forced to relive each day, he finally decides to take advantage of the situation, learning its “secrets,” and he becomes the better weatherman for it.

Day trading and night trading are exactly the same… a time loop. The Market does the exact same thing every day, day in and day out, month in and month out, year in and year out. It is so repetitive, that there are actually a handful of stocks, known as Cyclicals, that perform the same way every year. Talk about Groundhog day, Morgan Stanley even offers what they call a Cyclical Index, the CYC, composed of roughly 30 stocks that perform the same each year, and big name stocks to boot — Alcoa, Citicorp, 3M, Honeywell, Ford, Goodyear Tire, etc. Continue reading ‘Day Trading and Night Trading – Welcome to Groundhog Day’ »

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E-mini S&P 500 is the name that refers to a type of futures contract that is traded on the Chicago Mercantile Exchange (CME). It goes by the name E-mini because it is a representation of all stocks traded on the S&P 500. The E-mini S&P 500 contract is a useful tool that allows those without significant investment funds to participate in the market and do a dynamic type of trading known as day trading.

How it Works

The S&P 500 refers to an index of 500 large capitalization common stocks traded within the United States. This group of S&P 500 stocks is a combination of shares traded on both the NASDAQ and New York Stock Exchange which are the largest stock exchanges in the nation. The E-mini S&P 500 futures contract is used in what is known as day trading. Day trading does not use the S&P 500 index but rather the E-mini futures contract. Continue reading ‘What Is E-Mini Day Trading And Its Many Benefits?’ »

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It happens, life gets busy, you haven’t had time to do any market research and the opening bell is about to ring in half an hour. You can either wing it and hope something magically shows up on your screen that is worth trading, or you can take 5 minutes and check through a list of events which are likely to yield some moves.

Also, if you work another job or have a family it may be hard to put in an effort each night to do your research. No matter what the reason, if time is a factor there are several things which always move markets, and luckily those things are generally publicly available, easy to find (if you know where to look) and yield stocks which which are likely to have high interest and thus big moves/volume. Continue reading ‘Day Trading Ideas for Traders With Little Time’ »

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People are constantly looking to provide a measure of certainty to their lives. It provides for a ‘warm fuzzy’ to know that one can live day to day and make sure that necessities for survival are met. However, in the markets, there is never 100% certainty with any trade that is taken.

This is one big reason why trading the markets is so hard for most people.

When trading the markets, this general search for certainty takes hold of many investors and novice market participants, giving them the illusion that they must buy when they’re ‘certain’ that the stock has good upside potential (usually after that stock has doubled in price and has been “upgraded” or promoted by your favorite TV Guru), and sell when they’re certain that the end of the world is happening tomorrow (usually a day prior to the establishment of some sort of climactic bottom). Continue reading ‘Trading Beyond Certainty’ »