What are some tips for someone interested in day trading?
I would like some information because I am interested. I understand there is much to learn, but
I would just like some tips. ie What to know, what to read, WHERE TO BEGIN!!!!
Read;
Trading In The Zone, Mark Douglas
Mastering The Trade, John Carter
Trade Your Way To Financial Freedom, Tharp
(these are only a short list…. there’s plenty of good books out there)
Trading Tips;
1) Be patient–don’t just dive into a trade
2) Develop a proven strategy–don’t just trade blindly
3) Trade what you know and understand–if you cannot explain it, why trade it?
4) Check the daily news on your stock before you trade–stay informed on upgrades/downgrades/earnings etc…
5) Do a quick risk/reward analysis before you place the trade–put yourself in a good position to make money
6) Watch a stock’s trading behavior for a while–learn its "personality"
7) Cut your losses short and let your winners run–basic, but effective
Get into a pairs trade if your initial trade is not working–reduce your risk
9) Trade with the markets that day–shift your deltas according to market conditions
10) Anticipate the unanticipated–always have some offsetting position just in case events reverse
11) Live to fight another day–no cash means no trading
12) If you have a hot hand then work it, if you don’t then consider folding–recognize your rhythm
13) Know yourself–trade within your comfort zone
14) Stay focused–rid yourself of distractions
15) Trade with simplicity–don’t overthink things
16) Stay positive–negative energy can impact your trading behavior and results
17) Learn from your mistakes–mistakes are inevitable so use them to your advantage
18) Drop your ego at the door–it’s ok to take a loss, it’s part of the game
19) Take a deep breath–it’s going to be ok
20) Read as much material as you can on day-trading strategies–knowledge is power
Understand that getting 40-55% of your trades profitable is good…….
Don’t trade on stock tips
Don’t force yourself to trade–trade when the opportunity is right, not because you have to
Don’t trade like a compulsive gambler–trade under control
Always use a limit order to get in a trade. Always have a stop. Don’r override your stops.
Check out;
http://www.alphatrends.net/
http://tradermike.net/
http://www.traderinterviews.com/
Don’t open a brokerage account until you’ve read sveral books & understand the basics.
For day trading…. use a good broker. Don’t waste your time with the eTrades, Sogos, ING’s etc.
Good brokers for day trading;
ThinkOrSwim (my favorite)
TradeStation
InteractiveBrokers (hard to learn platform, great pricing)
TradeKing
MT trading
Cobra Trading
Buy High, Sell Higher (forget buy low, especially for day trading)……………………………
Good luck!
December 21st, 2009 at 6:05 am
penny stocks! you can triple your money in a few hours if you’re good.
also, buy low, sell high. that’s pretty much all there is to it.
References :
December 21st, 2009 at 6:26 am
It is for people who use at least $30,000 to buy stocks and because of the large investment they can sell at a profit with little gains such as 10 cents a share. Without that, the concept of day trading is really a waste of time. I would suggest Swing Trading & reading books on it. This is buy stocks low and wait for up swings to sell. This could be 1 week to 3 month trading. Either way you need to learn how to use technical analyze, trend lines etc.. For these types of trading, you need to only learn to stay away from current crashing stocks, ETFs, ADRs, REITs and Mutual Funds. You need to focus on the market movements. Find stocks that are channeling. Next try simulating trades and test your lost or win ability.
References :
December 21st, 2009 at 6:53 am
Read;
Trading In The Zone, Mark Douglas
Mastering The Trade, John Carter
Trade Your Way To Financial Freedom, Tharp
(these are only a short list…. there’s plenty of good books out there)
Trading Tips;
Get into a pairs trade if your initial trade is not working–reduce your risk
1) Be patient–don’t just dive into a trade
2) Develop a proven strategy–don’t just trade blindly
3) Trade what you know and understand–if you cannot explain it, why trade it?
4) Check the daily news on your stock before you trade–stay informed on upgrades/downgrades/earnings etc…
5) Do a quick risk/reward analysis before you place the trade–put yourself in a good position to make money
6) Watch a stock’s trading behavior for a while–learn its "personality"
7) Cut your losses short and let your winners run–basic, but effective
9) Trade with the markets that day–shift your deltas according to market conditions
10) Anticipate the unanticipated–always have some offsetting position just in case events reverse
11) Live to fight another day–no cash means no trading
12) If you have a hot hand then work it, if you don’t then consider folding–recognize your rhythm
13) Know yourself–trade within your comfort zone
14) Stay focused–rid yourself of distractions
15) Trade with simplicity–don’t overthink things
16) Stay positive–negative energy can impact your trading behavior and results
17) Learn from your mistakes–mistakes are inevitable so use them to your advantage
18) Drop your ego at the door–it’s ok to take a loss, it’s part of the game
19) Take a deep breath–it’s going to be ok
20) Read as much material as you can on day-trading strategies–knowledge is power
Understand that getting 40-55% of your trades profitable is good…….
Don’t trade on stock tips
Don’t force yourself to trade–trade when the opportunity is right, not because you have to
Don’t trade like a compulsive gambler–trade under control
Always use a limit order to get in a trade. Always have a stop. Don’r override your stops.
Check out;
http://www.alphatrends.net/
http://tradermike.net/
http://www.traderinterviews.com/
Don’t open a brokerage account until you’ve read sveral books & understand the basics.
For day trading…. use a good broker. Don’t waste your time with the eTrades, Sogos, ING’s etc.
Good brokers for day trading;
ThinkOrSwim (my favorite)
TradeStation
InteractiveBrokers (hard to learn platform, great pricing)
TradeKing
MT trading
Cobra Trading
Buy High, Sell Higher (forget buy low, especially for day trading)……………………………
Good luck!
References :
December 21st, 2009 at 7:04 am
I think the most important thing to learn is that 92% of all traders lose. That’s a true statistic, and one that you don’t hear touted enough. Less than 1% who try can make money. I’m talking about trading here, not investing.
Once you know that the market is full of loser, liars, and cheats, then you’ll be much more prepared to take on day trading.
Chat rooms and websites are probably the best way to begin:
trade2win.com
elitetrader.com
sandp500analyst.com
I
References :