need advice on day trading?
i have always been interested in day trading and i think its time i should start, the problem is i have a very little idea(almost a dummy) how it works i have heard that 90pct of people fail to make a regular income from it is there anyone who can help me out? i want to know where should i start also i’ll really appreciate if anyone can recommend books which i should read..im not very rich but im very very passionate about it..i cant afford to put more than a few hundred pounds as a starting capital.. is there a chance? im not looking for a get rich quick scheme im willing to spend time researching but dont know where to begin pls help
please note that i have only a few hundred pounds to start and im not sure of any other way to make money i’ll appreciate if anyone of you could tell me another way that is online to make more money for the starting capital if a few hundred pounds is not enough
The 90% number is a figure that has been used for many years. Not sure of it’s validity, but it’s probably not far from the truth, since most traders have to lose for some to win big. Day trading as opposed to swing or position trading means that all of your trades, whether long or short, will be closed (exited) by the end of the trading session with a profit or loss. Swing traders and position traders take on the additional risk of overnight trades, along with the potential for bigger wins. But, the compounding effect, up to a certain point, can work to a day trader’s advantage. Like any occupation that has a high potential income, be prepared to put in many hours of learning and then many more hours of practice before day trading with real money. Jumping into the game without solid preparation is for fools. There’s a whole assortment of different kinds of trading software on the market to assist with day trading and many brokers that cater to active intraday traders. Take your time, learn and use a simulator before putting real cash on the line. There’s plenty of information on this topic here for beginners.
January 10th, 2012 at 5:50 am
If you want to be a trader, then quit your day job and devote yourself to it for at least a year or two like any vocation.
You’ll need to maintain a minimum $25,000 in your account or become a Pattern Day Trader and lose your margin ability.
It isn’t something you can do while you learn, like most jobs; you’ll lose everything. So you must have a tested method, system, and strategy (a tried and tested Trading Plan) before you can start. Concentrate on risk and good trading strategies rather than profits and indicators and maybe you’ll stick around long enough to learn something.
Or, type "how to invest" in the Search Y! Answers box at the top of the screen and start there.
Before you decide to become a day trader, check out these articles, first by the SEC (Securities & Exchange Comm), second by the FTC (Federal Trade Commission, and third by the Motley Fool:
http://www.sec.gov/investor/pubs/daytips.htm
http://www.ftc.gov/opa/2000/05/daytrading.shtm
http://www.fool.com/investing/small-cap/2004/12/27/daytrading-dangers.aspx
You really need to learn more about trading before you start making decisions about a system … I would suggest initially exploring these sites and authors …
http://www.iitm.com/ (Van Tharp)
http://www.hardrightedge.com/ (Alan Farley)
http://www.elder.com/
They each have books on amazon, which you can review before purchasing.
Also: New Trading Systems And Methods by Kaufman
About.com: ‘Becoming a Day Trader’
http://daytrading.about.com/cs/education...
About.com: ‘Day Trading’
http://daytrading.about.com/#b
References :
January 10th, 2012 at 6:32 am
why day trading??? I don’t suggest you quit your day job as @David has done. You are a newbie at trading…if you are killed in the day trading then you would have nothing to back you up….do you have a wife and kids???
How about learning how to trade stocks [period] before you venture into the pressures of daytrading.
Start by reading books on the subject and paper trading (using fake money) for a while to see if you trading decisions work or not.
A book I like for a beginner is "The Lazy Investor" by Derek Foster….here is a review
http://www.milliondollarjourney.com/book-review-the-lazy-investor.htm
don’t just jump into daytrading blind…..and certainly don’t quit your job before knowing what you are doing.
References :
January 10th, 2012 at 7:18 am
Don’t quit your day job. Day trading is one of the most difficult professions in which to achieve success. I suggest you read "Live the Dream By Profitably Day Trading Stock Index Futures" by Gary Smith, and his follow up, "How I Trade For a Living." Also read Mark Fisher’s "The Logical Trader." Study the work of Toby Crabel, and talk to successful individual traders and hedge fund traders.
Do not take this undertaking lightly. You must be sure that you have at least six months worth of living expenses paid for, and have another source of income so that you won’t have to rely on potential income from trading to live on. That is simply too much pressure for most people to handle.
References :
http://www.bestdaytradingstocks.com
http://www.whentobuyandsellstocks.com
January 10th, 2012 at 8:02 am
The 90% number is a figure that has been used for many years. Not sure of it’s validity, but it’s probably not far from the truth, since most traders have to lose for some to win big. Day trading as opposed to swing or position trading means that all of your trades, whether long or short, will be closed (exited) by the end of the trading session with a profit or loss. Swing traders and position traders take on the additional risk of overnight trades, along with the potential for bigger wins. But, the compounding effect, up to a certain point, can work to a day trader’s advantage. Like any occupation that has a high potential income, be prepared to put in many hours of learning and then many more hours of practice before day trading with real money. Jumping into the game without solid preparation is for fools. There’s a whole assortment of different kinds of trading software on the market to assist with day trading and many brokers that cater to active intraday traders. Take your time, learn and use a simulator before putting real cash on the line. There’s plenty of information on this topic here for beginners.
References :
http://www.day-trading-stocks.org/day-trading-online.html
January 10th, 2012 at 8:35 am
Checkout the book on "Art of Stock Investing" @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html
References :