Day Trading Tips

am new in share market. I wont to do day trading but i dont know how i make a good profit in day trading so plz help me and plz give me the most important tips

If you’re going to invest and/or trade, make sure you know what you’re doing, why you’re doing it, how to do it and understand the rules governing what you’re trying to do.

Here are four very important rules you must fully understand and are ready to follow before you spend $0.01

1 – You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right.

2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.

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3 – You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.

4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

When you think you have it all together, and you think you know all that you need to know try some paper trading to test your skills without spending you money http://simulator.investopedia.com/ http://www.tradingsimulation.com/

I am looking into day trading in great depth, and I want to find the best brokers or DATS to look into. Links will do just fine, but I also need to know how much time each takes to process trades (brokers vs. DATS in general), as well as anything else you think will be helpful. Thanks!

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You still need a broker or a clearing firm. There are direct access brokers. The type of system, brokers and etc depends on what instrument you want to daytrade. Some specialize in stocks, others in futures…

I realize that penny stocks usually aren’t the best route to take, but I’m not looking to become a millionaire, I’d just like to make a little bit of extra money. How do I put money toward penny stocks? How can I tell which are the most likely to succeed?

Use easy terms on me please, I’ve never done anything stock-related, but I’m curious, and it’s something I’d at least like to try – which is why I’m getting into penny stocks, to test the water a bit

Thanks!

With over 40 years of experience in the industry, I would not encourage you to do this, however to
answer your question, you buy penny stock like any other stock.

Here are some websites that will help you understand pennies, if there are any brokerage firms advertising on the site you can contact them
http://www.smallcapinvestor.com/

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http://www.stockwire.com/
http://alphaking.com/
http://www.otcstockexchange.com/
http://www.mcapstocks.com/Default.asp
http://ragingbull.quote.com/cgi-bin/static.cgi/a=index.txt&d=mainpages
http://www.swingtrades.com/
http://www.pennystocks.com/

You can open an account on-line with the brokerage firm, send them your check (put your account number on the check – you’ll get an account when you establish an account). Once the money is in your account you can buy stock.

Be aware, the brokerage firms all have minimums that you must deposit to open an account, but the firm will make you aware of it.
If you have problems with either opening the account or entering an order you can always call the firm’s customer service department and they will help you

I plan on moving about $10,000 around in one or two stocks to have bigger payoffs. I also buy in to stocks $5.00 or less to make my earnings go up alot or down alot. any tips for an amateur stock broker.

day trading ,penny stocks and Forex are BIG negatives on Yahoo but yes they ALL can make money for people who know what their doing…

How do I research stocks? How do I make statistical analysis? What programs should I use? How much money should I start with? If about 50% to 90% of people fail in day trading, how do I learn how to day trade and succeed? How much capital should I start with? Which news sites should I follow? Should I follow news feeds for the stocks I am invested in? Which books should I study? Could I make my own quant fund? When I see top gains or losses on a stock news Website, is that for the day or week? Could I get a job and develop professional career out of this? What college degree would this correlate to? Which college is the "best" for investing or finance? Do I need a special computer? Should I use web based software provided for free or should I spend money on so-called professional software? Are there any websites that discuss these topics in a professional way and not a sales person type way? Any books that I could read on this topic that you recommend? Sorry about the many questions, I was brainstorming. (: Thanks for the replies.
Please tell me more. I really want to learn a lot about day trading.

Research: get the daily figures for at least the last five years for virtually everything in the stock exchanges you’ll be investing in. It might cost you, but it’s worth it in the long run.

Analysis: There’s many ways to analyse. What you want to pay particular attention to is the highs,lows, opens and closes of the stocks, the daily volume, the p/e ratio, the yield and the volatitility. I prefer using candlesticks as a starting point, but there are dozens of indicators which can show whether something is a good "bet" or not.

Programs: I’ve used a few. the easiest to use was one called "Metastock". I think they’re still around. However, you can go much the same thing with a spreadsheet and a database. And, of late, I’ve been tending to use "gut feel" along with the candle sticks. Get a book on candlesticks, and it’ll show you some relatively easy ways to make decisions.

Money: It’s best to start off with at least $10,000 – anything less gets a bit too risky. Most people who lose money on the stock exchange are people who don’t have enough to "play" with. This fits in with the 50% to 90% you mention – except when there are bear runs or bull runs, half the stocks tend to go up and half tend to go down. The more you can start with, the better. With only, say, $1000 to start, you are limited to the number of different stocks you can buy. If you have, say, a dozen different stocks that you think will do well, six will go up and six will go down. If you buy all of them, your chances of making money are higher than if you buy only one. With $10,000 you might be able to buy 10 of them or even all of them, and so you make more in the long run.

What you need to do is ensure you have a strategy that has a "stop loss" point for any shares you buy. You sell the stock when it reaches (drops down to) this point. When the price goes up, you move the stop loss point up, so it’s always at the same percentage from the top, but you NEVER move this point down. Most people who lose large amounts of capital as day-traders don’t, so they are risking a lot more than they should.

With the research, those figures should be at least daily, so you need to get them everyday, before the share market opens, and decide whether you are going to buy or sell or both.

No, you don’t need a special computer. Professional software is usually better than "free" software (it gives you more analysis tools). Don’t listen to professional brokers – they generally are late in their advice, unless they are working for you rather than a company (brokerage).

Top gains/losses depend on when the news is broadcast – usually end of day, but it can be end-of-session (or right at the minute) – many day traders look at their business on an hourly basis, but that takes too much effort, and only really useful when one’s playing the indexes, with puts and calls.

So, I want to start messin with penny stocks, but I have no idea where to start. There are so many websites, stocks, and information out there, it is really overwhelming. Does anyone know of any good websites to get started trading through?

Most penny stocks are pump-and-dump scams, which means you’ll lose massive amounts of money.

The majority of institutions only invest in stocks $5.00/share or higher. Since the Smart Money doesn’t deal in penny stocks, why should you?

im panning to invest in coca cola and trade daily since it seems they are going to be around forever. what is your experience and mistakes you have with stocks? when would you say is a better time to buy and sell stock during the day ?

Understand daily trading first and then you can apply the knowledge to day trading. The latter is the same as the former except it moves 10x faster.

An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing including useful websites to surf.

Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It’s a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O’Neil too–he’s the founder of IBD.

Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.

After you have extensively researched and gained a solid foundation/education then look to open a brokerage account and paper trade–this is trading with play money before you put real capital at risk. You should do extensively before you eventually place your first trade live. Your early live trades should be with a very small position size. Only increase position size when you have done well to limit losses when the market has turned against you.

I am interested in how day trading truly works.

I prefer answers from successful day traders. (How you choose securities to trade, what software or service you use, and just basic advice)

Yes, I realize the risk. I have my own portfolio of stocks, but I wouldn’t mind giving a try at day trading after I fully understand the in’s and out’s.

Thanks for the help, easy 10 PTS

Understand daily trading first and then you can apply the knowledge to day trading. The latter is the same as the former except it moves 10x faster.

An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing including useful websites to surf.

Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It’s a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O’Neil too–he’s the founder of IBD.

Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.

After you have extensively researched and gained a solid foundation/education then look to open a brokerage account and paper trade–this is trading with play money before you put real capital at risk. You should do extensively before you eventually place your first trade live. Your early live trades should be with a very small position size. Only increase position size when you have done well to limit losses when the market has turned against you.

My day trading account is at its breaking point. I’ve tried trading the E-Mini and Euro , but the jump from low to high volatiltiy because of U.S. economic uncertaininty has me questioning whether it’s even worth trading. I’m primarily looking for a trading room or signals for the Euro to avoid all the U.S. nonsense. Thanks

Roger, remember that trading the Euro Currency in terms of 6E Futures is like trading the EUR/USD. That means whatever happens in the U.S. will affect the Euro. Both countries are far too intertwined.

I am guessing Forex is not your thing due to the uncertainty of unregulated trading. In this case, stick with Euro Futures trading. The best thing you can do for the time being is to take a break. Let your psychology self-repair and come back when you’re feeling better.

Upon your return, perform research into which trading room meets your criteria. I’ve found Pips2Win to be dedicated solely to Euro Trading. The trading room conductor supposedly tells you all the setups; when to get in, when to get out, where profits and stops should be placed, etc. Since there’s no guessing and everything is provided, it should alleviate some of the stress. Also, the Pips2Win account statements show steady growth over the last two months, so if you’re trading along with them, your account should be back up to speed in no time. They offer a free trial although I am not sure if they’re fully done with the website. It all seems a bit new so definitely take heed when evaluating the service. Best of luck!

I trade Euro currency futures (6e) and forex (EUR) and am looking for a trading room or system to follow.

Here’s two;
http://www.redliontrader.com/
http://tradethemarkets.com/

Both have interesting approaches to trading Futures. They don’t stick to any one contract. As you would expect… ES, EMD, YM, YG, YI & E7 etc are done a lot.

Saying you’re looking for a "system to follow" tells me you’re on your way to lose some money. The successful traders only follow the systems they developed themselves. It took me several years to realize that myself.

Psychology
Risk Control
Technical Analysis

Those are the three categories that lead to day trading success. They are listed in order of importance.