There is only one surefire way to know if you have made great stock picks. If you are making money from your decision then it definitely means that you have made the right one. On the contrary, if you are losing money then you have definitely made a bad stock pick. It is easy to feel like a genius after you have gained from a decision that you have made. But if you know you made a wrong one, you will feel like you are the most stupid person on earth.

Wall street, they say, only follows one rule: make great stock picks then put it away. To buy and buy and buy is a great advice to follow in any market and in any economy. But most traders who follow this advice completely miss the other, probably more, important part of trading stocks, and that is to sell. Traders must be able to learn from the past and the mistakes of others.

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The advantage of being a stock market trader nowadays is that we benefit from years of experience of the thousands who have went before us in the area of stock trading. So take advantage of the lessons of years worth of trial and error in the stock market. Of course, the stock market is still as fickle and unpredictable as ever but at least now we have systems and even computer programs that can help in analyzing trends and can therefore lend some sort of predictability to the market.

To be a successful trader, and find great stock picks, you don’t have to be psychic. You don’t even have to be extremely intelligent. What you need though is common sense – lots of it. One quality of a good treader is the ability to know when to jump on a particular stock and when to just leave it. But a better trade will know when to get rid of a particular stock before it completely falls. As mentioned earlier, the ability to know when to sell is as or more important than the ability to buy. A trader must learn to sell to be able to protect his equity and to avoid giving back profits made.

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What is day trading and its advantages?

Day trading-Buying and selling of shares on daily basis is called day trading this is also called as Intra day trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during market hours that is 9.55 am to 3.30 pm (Indian time).

Advantages of Day Trading -

a) Margin trading – In Day trading you get margin on your balance amount means you get more leverages (amount) on your available balance amount to do day trading this concept is called margin trading. Margin trading is only possible in day trading and not in delivery trading. How much extra amount (margin) you are going to get that totally depends on your broker, or your online system brokers. Some broker provides 3, 4, 5, and 6 times extra margin. If you do margin then you have to square off your open trades on the same day (means if you bought shares then you have to sell and if you sold shares then you have to buy)before market time (that is 3:30 PM) finishes.b) Second important advantage is that you have to pay is less brokerage (commissions) on day trading (Intraday) as compared to delivery trading. This brokerage again depends from broker to broker (or on your online trading system). c) In day trading you can sell and then buy this is called short sell which you cant do in delivery trading. You can sell shares when prices are falling and then buy when price falls further.

Disadvantage of Day Trading

a) As you are benefited to get more extra amount to trade (that is margin trading) and get more extra profit it is also equally true that you are also taking more risk of loss.b) At any cost you have to square off the open transaction before 3:30 PM (especially if you are doing margin trading) at that time the price may not be in your favor.

Basic Requirements for Day trading

A successful day trader or share market trading requires couple of disciplines and following requirements -

1) PC with internet – If you need to do it yourself then you need to have a PC or else you can do it in internet caf also. A PC with good internet connection speed. The internet connection should not be slow or should not face any other problem especially in Day Trading.

2) Online Account (Demat Account) – You need to open online share trading account with any of the available banks or online brokers.Points to remember while opening online accounta) Make multiple enquiries and try get low brokerage trading and demat account.b) Also discuss about the margin they provide for day trading. c) Discuss about fund transfer. The fund transfer should be reliable and easy. Fund transfer from your bank account to account and visa versa. Some online share accounts have integrated savings account which makes easy for you to transfer funds from your saving account to trading account.d) Very important is about service they provide, the research calls, intraday or daily tips. e) Also enquire about their services charges and any other hidden charges if any. f) And also see how reliable and easy is to contact them in case if any emergency. Emergency closing or squaring off trades in case of any technical or other problems

How to choose shares (stocks) for day trading

In day trading, traders mostly wish to do buying and selling on small profits or else they look for overbought or oversold shares. Taking into consideration these important points following basic things you should look in for shares while choosing them for day trading.- Price Volatility- Volume (quantity)What exactly these terms mean and how to use them while Day Trading.

Price Volatility – The Price volatility means the movement (up and down) of share price should be more (or high) through out the day. In other words the fluctuation in share prices should be on high rate so that it will be easy for you to buy and sell on different prices. Suppose if share is moving up and down in very narrow range then on what price you will buy and sell? So it is always better if you choose shares which have high volatility in price movement.Do you want to know how to find out the high volatility shares then please click here?

Volume (quantity) – Volume means trading quantities. The shares which you choose for day trading should have high volumes (or high traded quantity).Why this is required?The high volume indicates that there is more liquidity. Liquidity means lots of transactions had took place on this share and more people are interested to trade in this share. This will ease your trading job because you will get more exposure to the price to buy and sell at anytime. Due to high volumes there will be also high price fluctuations.

Points to remember for day tradingFollowing are very important points to be always remember by day traders.Entry & exit points, stop loss limits, profit targets, your desired risk/reward profile,amount of capital to be committed to trades, how long you need to hold the share if incase it is against your favor.

Why it is required to practice day trading before starting actual day trading?

It’s important to do practice or paper trading before you starts actual trading. Following are the few reasons, 1) Very importantly you will come to know how to place buy/sell orders, and will become familiar and perfect about using your trading system. 2) You will gain confidence in yourself. 3) The fear of trading will vanish. It is very important to keep fear away while doing day trading. 4) You will become active to enter and exit the trade. It’s vital important that you must be pretty fast to enter and exit the trade (i.e. open positions).

What are the common day trading mistakes and how to avoid them to make generous profit

1) Don’t jump in trend early – Wait and get paper confirmation of trend change, and then plan and do your trades (buy/sell). Don’t jump in or do early trades before any trade change confirmation this may damage your capital (bank balance).

2) Don’t wait in trade for long time – Suppose that you had done one trade (either buy or sell) but the scrip is not moving either up or down, it is just stable or moving with very low price difference, then you should get out of that trade and look for other scrip’s. You may encounter these type of situations when indices (NSE or BSE) and not moving (or moving with narrow range). At such time either you wait or come out of trade, don’t loose patience and fall under loss.

3) Don’t change your trend on volume volatility – Some time you enter in trade by seeing the buy and sell quantities. For example, suppose you brought shares by seeing more buy quantity then sell quantity, expecting more buy quantity may push the share/stock up but after few minutes you see exactly reverse that you see more sell quantity and less buy quantity or both buy and sell high quantity or the difference of buying and selling quantity is decreased as compared to what you had seen before. So this point is very important, don’t panic here and sell off your stock, wait and realize the situation properly and then take action. This situation comes many times but if you are sure that your share is going to move up then stick to it.

4) Beware of companies’ acquisition or any announcement by Government – Suppose in the morning, before market begins, you should read or viewed the news of any Indian Company has acquired any foreign company (or part of foreign company) if you see this is actually best news/things that Indian company. But if acquisition amount is far more than expectation then this good news will turn into worst news. The shares of that company will start falling. So you should not get in trade and buy shares you have to wait and watch how market or other people are responding to these shares and once you understand then you can trade. So always watch where the market heading towards and then react. Announcement of Government – You should also be very careful to decide your tarde based on any government announcement.For example, if government has declared any hike in interest rate then its good news for bank stocks and hence the shares will rise but if government has declared 2nd rate hike in very less span of time as company to first one ( stay within duration of one, two month or three month) then this news will be worse for bank stocks, the share may keeping fall during the trading period. So realize and analyze the news and finally watch market behavior and this fall or do trade you will get success.

Things to study in the morning before starting your day trading or share market trading or Intraday trading?

1) Read financial newspaper like Business Standard, Economics Times, etc. If possible note done the high lights/breaking news with respective company names and keep close watch on them for that day.

2) If possible watch share (stock) market related TV channels like Zee Business, CNBC, etc. In these TV channels you get over all idea/movements of all share prices and markets (BSE, NSE). And also it becomes easy to catch and keep close watch on related companies if any breaking news comes out during that day.

3) Especially some share market related websites like capitalmarket.com, businessstandard.com always displays current news, market affairs, share market trends, breaking news and various announcement done by company or government which may effect the share market and related companies. So try to access and have all ok on such types of websites before starting trading and also through out the day, if possible.

4) So in short before starting you stock market trading you should be well aware of all the current news of financial market and if possible note down the breaking news or effective news and its related company and keep watch on that share and trade accordingly on that day.

Important principles to be follow by day tradersNever invest all your money in same sector this method is called as diversification of shares. This will protect your money from downtrends of any particular sector as you can make money from other sector.There are various sectors like IT, Pharmacy, Banking, Steel, Petrol and Oil, construction and infrastructure, auto etc.

Avoid common day trading mistakes Lack of a Trading Plan, Failure to Control Emotions, Failure to Accept and Limit Losses, Lack of Commitment, Over-Trading

Author: Sachin Shetty
Article Source: EzineArticles.com
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Before entering into any new form of investment, it is essential that you are able to comprehensively understand the activity. For instance, can you explain option trading? If it is somewhat that you will direct your nest egg or income towards, you must be able to realize accurately what it entails. Someone who can explain option trading will naturally have a clear understanding of the fundamental terminology, processes, and policies. This is not as easy or even as “basic” as it looks. Option trading is fairly a distinctive approach to control information and generating a certain level of risk management, and it doesn’t even have to involve the purchase of a single stock, security or commodity. If you can explain options trading clearly and in very few words then you are probably a good candidate to begin participating in this lucrative approach to investing immediately. If an explanation is bit difficult for you to handle, however, you can opt for spending dome time doing research, participating in seminars of classes, and creating a much clearer and adequate base of knowledge before you make your first investments. One major mistake made by millions of investors is to simply hand over their hard-won income to a trader or brokerage without first understanding what is going to be done with their money. So, what is a basic explanation of options trading? Without entering into a huge amount of detail, suffice it to say that an option is a contract between a buyer and a seller. The buyer is purchasing the “right” to buy or sell at least one hundred shares of an underlying asset (it could be stock, commodity, or any other financial vehicle) at a fixed price. The seller or “writer” is obligated to honor the terms of the contract. What is the work process for this in the world of financial trading? It is a basically very straightforward – for example you are a buyer who considers that a particular stock is going to rise in value by a certain time period. You call up a writer to purchase a ‘call option’ to buy that stock at a fixed price before a certain date. If you exercise the option you can purchase that stock for the guaranteed price, or you can just sell your option for the profit. While that is the most streamlined and overly simplified explanation, it does indicate the way that options can be used to leverage risk.

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If you put on a trade and your heart starts pounding, you are *not* ready to trade yet…Some people who arent ready to trade have other problems as well:

1. Pulling the trigger to get in

2. Staying with one trading strategy long enough to judge it

3. Letting good trades go bad

Day trading psychology plays a role in these issues, and books have been written to help traders deal with these problems, but most of them do not offer a practical solution.

In order to be successful at day trading support and resistance, you must have confidence in your trading strategy. Most traders with less than 2 or 3 years of experience, and for those who are just starting to learn day tradingwell, they have nothing to be confident about.

If your trading strategy isnt making you money consistently, in real time, you cant have confidence in it. But, how can you tell if your method is any good when you dont yet have the nerve and discipline to trade it?

Day trading psychology involves building confidence, and consistent, profitable results will lead to confidence. Being a 23 year veteran trader, my day trading advice for you would be to trade your strategy in simulation mode so that you can judge it rationally.

The inexperienced trader (and even some traders with years of experience) has a difficult time thinking rationally when they are afraid of losing money, so take that fear out of the equation by utilizing simulation trading as a tool.

Some professional traders will tell you that simulation trading is useless or even, the worst thing you can do. But it depends on why and how you utilize simulated trading. If you choose a simulation strategy that has a defined number of setups, a fairly specific strategy for limiting losses, and you stick to that strategy like glue, never deviating from it then simulated trading is a logical way of testing your method in real time and it will help you greatly.

Day trading psychology also involves self control. Cultivating good habits such as self control, and developing confidence while using a simulation method will help you when youre ready to trade for profit.
Having confidence in a method you have traded in simulation mode is the most rational starting point for a new trader, or any struggling trader.

So begin the successful part of your trading career with a strategy that you personally have learned to trust through real-time trading (preferably simulated trading).

Not all trading strategies are alike, and this is important to understand.

1. Any strategy that loses more than 60 % of the time (such as a trend-following system) will take enormous courage to trade, no matter what you do. These strategies demand a certain type of person (rich, with ice water in their veins).

2. Thousands of strategies force you to place a fixed stop and wait to see if it gets hit. These are difficult to trade with confidence even IF you can find one that wins more than 65 – 70% of the time and makes money in the process. Thats a big IF. You can spend a career and thousands of dollars searching for success with this kind of strategy, most unfortunately end in failure.

3. My method for support and resistance trading is rarely talked about, but aside from making money for me on a consistent basis for more than 20 years, it just happens to have a rational approach to day trading psychology built in.
Heres what Im talking aboutThe fear of trading is associated with the lack of control.

With most strategies you can control only a few aspects:

1. You can learn to control your entries through discipline and strict setups.

2.You can limit the size of each loss somewhat by using fixed hard stops.

3. You can control your overall chances of success by finding a strategy that works for you in simulated mode BEFORE you trade it with money.

4. You can control the days and times of day you trade.

5. You can control the number of contracts you trade, placing more money at risk on your highest-probability setups, and less on your lower-probability setups.

BUT

Most traders day trading dont know how to control the overall size of their losses. Learning how to do this is the most rational way of dealing with fear, greed, and other problems of day trading psychology, and its the main key to my own success as a trader.

Remember this simple rule that will build your trading confidence like nothing else:

** Exit any trade that doesnt go your way immediately. **

Forget about the commission, forget about how many hours you waited for the setup, forget everything except this rule. I know its radical, but just do it.
Then YOU will be in control of the one factor that most traders dont believe can be controlled the downside outcome of the current trade youre in.

The first rule is used in combination with the second rule

** Every trade starts out as a scalp until proven otherwise. **

This means that if you get 2 or 3 ticks gain and the market pauses and moves a tick in the wrong direction, you get out immediately with 1 or 2 ticks gain. No questions asked.

This simple rule gives you control over your gain/loss ratio, another thing that most traders believe is beyond control.

I trade around support and resistance levels because they are built in to every liquid market. They arise primarily from the day trading psychology of people who are trapped in a bad trade and want to get out at break-even as soon as possible. This feeling does not change from year to year or from one generation to the next, so day trading support and resistance can never become a strategy of the past.

Author: Mike Reed
Article Source: EzineArticles.com

If you are like me, you get to see a good number of charts everyday, sometimes hundreds.  In addition, you may be actively day trading the ES Emini contract, perhaps in dual times frames, or a host of other configurations.  Why do I go through this routine everyday?  Day trading is my passion, and I suspect if you are reading this short article, trading is a passion for you, too.

But having a trading passion does have a downside.  Too many charts.   A couple of poorly thought out trades.  More charts…you can suffer from day trading burnout.  It has happened to me on a regular basis, at least once a year.  I feel like I am just worn thin as a result of looking at charts and trading indicators and sitting in front of a computer for hours.

And I don’t think there is anything terribly unusual about becoming burnt-out, even with a activity you love.  As a matter of fact, it is to be expected.  I find my decision making process is greatly impaired when I am not excited about trading, and the results are usually indicative of that fact.

So what do you do?  That’s easy to talk about, but tough to implement:

1.  Stop trading for a few days.  This is one of the toughest things to do.  For many, trading is the way they make a living, so stopping trading stops the income.  However, if your trading effectiveness is suffering as a result of burnout, stopping day trading is the smartest course of action.  Read some books, exercise, or spend some leisure time in the manner you enjoy most.  The important point is simple, stop trading until your state of mind is correct.

2.  No matter how hard we try, day traders often get into bad habits that can result in unacceptable losses.  This is where the trading journal (with the days charts saved) can be very crucial.  Look at your trades with an open mind, as if they were someone else’s trades.  Do the entries and exits make sense?  Even more important, are the entries and exits compatible with the parameters of your trading system?  Be honest and thoroughly examine your trading results.

3.  Take a close look at the market from an objective viewpoint.  Has something changed?  Often times you will become accustomed to day trading in a trending market and the markets demeanor will change from the trend.  Since you may have your mind set fixed from months of trading a certain market, the change in market fundamentals may be sabotaging your trades.  Is the market still trending?  Take a look at the market from different time frames for a realistic point of view.  Look at daily, weekly, monthly charts and see what information you may be able to glean.  Has the VIX changed drastically?  These are all questions you need to answer before you resume trading.  The market can change personalities quickly yet subtlety, if you have been counting on a trending marketing and possibly entering trades of higher risk because you assume a certain trend, you need to reconsider your strategy.  Get back to the parameters of your personal trading system.

4. If you burnout is debilitating, take a week vacation and go somewhere and don’t even think about trading.  I love to fish, and there is nothing more relaxing than a nice trip to a remote part of the country and test my skills against salmon, or trout, or bass…you get the idea.  Don’t give trading a thought.   Many times on trips of this nature I lose track of the day and date; that is when I know that I have reached a nice relaxed state, especially if I haven’t given trading any thought.  When I am fixated on fishing or hunting, not trading, I know my mind has cleared some of the muddle I have accumulating over many months of trading.   Or take a great family vacation, or take your wife or significant other to an exotic beach resort…all these things are wonderful ways to break the monotony of day trading for months on end.   Clear your pipes out.

5. I think this is the most important step, call your mentor and ask for his advice.  Perhaps he will want to review your trades.  If you trade the same contract, he will be familiar with the trades he took that day and the market action of the day.  He may be able to shed some light on what he thinks you may do to improve.   If you decide on a break in trading, call your mentor before you start trading again.

Ultimately, trading is about confidence, and when you are burnt out you have generally lost your confidence.  It is very difficult to trade when you are indecisive.  This is not a business that lends itself to indecisiveness.  You can get your confidence back, and that is an important point to remember.  The secret is realizing when things are not going well and taking time to analyze the cause of your burnout.

I am a long time trader at both the retail and institutional level, and still trade most mornings, but I also enjoy writing articles about successfully trading eminis and sharing the little bit I have learned

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Article Source:http://www.articlesbase.com/day-trading-articles/5-tips-for-fighting-day-trading-burnout-1629809.html

When you are looking for stock market information on websites such as Yahoo! Finance, or on newspapers and magazines, you may be confronted with the option of whether to buy from the 52-week high price list or the 52-week low price list. The question is: which list would you choose your stock from?

You may tend to argue that, in absence of any other reliable information; you would like to opt for the 52-wheel low list. You may consider it a great bargain as the bottomed out company may possibly have better chances to go up than the company which has already reached the top.

You may further argue that a stock staying at 52-week low may have some good reason to be there and it might be waiting for the more opportune time– which is of course now– to rise up.

Or, you may opt for a stock from the 52-week high list even though it may violate the general rule against buying high. The stock may be showing steady growth.

There are several other factors, besides these two, that may prompt you to select a particular stock for investment.

You may think that although a particular stock has a high intrinsic value it may have lost its shine in the current stock market due to some other reasons. This may possibly be one of the reasons why it finds its place in 52-week low list.

You should try to invest in a stock that is not only going to survive in the coming stock market scenario but thrive as well.

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How to pick up a winning stock?

The truth is that all of us have a great experience and knowledge about the true worth of popular stocks, only we are not aware of it. Even an ordinary housewife who goes shopping into the malls for her household needs knows pretty well about the good quality stocks.

You select the products and services of those companies which are popular because of their quality and price. These companies, you can reasonably argue, have a better future.

The stocks of the companies whose products services you prefer to buy over the others are good candidates for investment. You do not have to be an expert in stock market to select a good stock for investment.

You may come across a service or a product which has been recently launched and has a great potential to grow fast in the near future because of its high quality and low price. The stock of the company offering this product or service is waiting to become a market leader.

More over if you are an experienced shopper either in the stock market or in the mall, you can look back to visualize what qualities in their products or services brought them to their leadership position. You may look for the same qualities in the upcoming stocks.

Take, for example, the case of Dell Computers-DELL in NASDAQ. Michael Dell is the poster boy for the Americans who dream of great futures. He started his business in his dormitory room while he was studying in a college. Twenty years down the line and Dell Computer is the biggest personal computer company in the world.

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Not many people know that the company that is actually credited with bringing the personal computer to the market is Apple and it commands barely 5% of the market share.

There are several other giants in the personal computer business, but not one of them approaches the popularity of Dell.

How did Dell achieve this greatness? It was because it started selling computers directly to the consumers before anyone had even thought of doing so when the Internet took off. It focused on meeting the consumer needs rather while other companies were engaged in improving the processor speeds and hard drives.

And who does not know about the reasons how Dell rose to its present leadership position? Every body does, but is still not aware of how to put his knowledge about Dell in selecting the stocks in computer market.

Look at the qualities that catapulted Dell to its present position and apply the same criteria to other companies or stocks and you get the winning stock you should invest in.

Of course, you must further confirm your judgment of the good stocks from your general awareness. You must also have some knowledge of doing fundamental and technical analysis of the stocks.

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Article Source:http://www.articlesbase.com/day-trading-articles/how-to-pick-winning-stocks-1624575.html

There are many ways to invest in the stock market. There is one particular way that has made more people filthy rich than any other, and that is buying penny stocks. There are many reasons to buy penny stocks. They can have giant increases in value that can make you a ton of money very quickly! Sure, they have there down sides, but if you buy penny stocks correctly, you will make much more money than someone going with the long term investment.

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So how do you invest in penny stocks correctly? That is an easy questions. The art of buying them is all about trends. When you want to buy penny stocks, you have to look for trends in a company’s history. For example, if you are interested in buying penny stocks of a certain company, look at there stock price history. You will likely see a trend of ups and downs. This allows you to pick the perfect time to buy them from that company. Look up several companies that interest you and document there trends. That way you can pick the prefect time to buy penny stocks in several companies and really make a killing.

Many people say that penny stocks are to risky to invest in. Penny stocks can be risky to someone who knows nothing about them and just takes a shot at a random company. You would be surprised how many people do that! If you can get down how to buy penny stocks, then you can really make a lot of money in a very short amount of time. There have been times I have made a 300% profit on my investment in as little as two days!

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Doubling Stocks “MARL” – The Stock Trading Robot is an advanced technical analysis trading software program. It has the ability to learn patterns from historical data, allowing you to create highly accurate trading systems that inform you when to buy and sell. This trading software effectively performs market timing for all types of penny stock throughout the market.

Doubling Stocks “MARL” is one of the most useful Stock Trading Software Program on the Internet today. On this basis, our team at Stock Trading Software Review decided that we would put everyone’s questions of does this program actually work? and is this a total scam? to rest.

What will Doubling Stocks “MARL” offer you?

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Over the next few weeks, our team at Stock Trading Software Review.com will be doing initial desk tests (paper trading) to see if the theories of stock trading can actually be built in to a fully automated Stock Trading Software Program – Doubling Stocks “MARL”. Go check out our site for more details and reviews of Doubling Stocks “MARL” – The Stock Trading Robot.

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So you are performing online trading and trade stocks and/or options and call yourself a day trader. Do you know the requirements of day trading? In our user’s group, many times this question comes up and what happens if I accidentally (or on purpose) violate one of these rules? There are several variations of actions that can occur that may trigger day trading and I will try to answer most of them. As each situation is different, I will list the most common.

What Is Day Trading?

In this article we are only discussing day trading as it pertains to stocks and options. Commodities and Forex do not have the same day trading rules. I do not know about other trading disciplines.

If you buy and sell a stock or option on the same day, that is day trading. For instance, if you buy 1000 shares of stock ABC (fictitious symbol) at 9:30 am and sell the 1000 shares of stock at 12:15 pm, you have just entered into a day trade.

What Is a Pattern Day Trader?

A pattern day trader is defined in Exchange Rule 431 (Margin Requirement) as any customer who executes 4 or more same day trades within any 5 successive business days and your day trading activities are greater than 6 percent of your total trading activity for that same 5 day period (from FINRA web site).

What Are The Rules?

1. Account over $25k. — To trade and not encounter any problems the equity in your trading account must be maintained over $25,000.

2. Buying/Selling same day — For accounts under $25k, if you buy and sell the same stock in the same day, any proceeds from that stock’s sale cannot be used in another trade on that same day. (May depend on brokerage account. My brokerage allows it but warns you about it.))

3. 3 times in a week — You are allowed only 3 trades within 1 week (5 trading days). The 4th day trade may subject you to a 90 day suspension of all day trading activities.

What Are The Penalties?

1. You may get a 90-day suspension of all day trading activities.

2. Your account can be suspended for 90 days and no trading will be allowed in that account.

How to Avoid Problems?

1. Maintain a minimum of $25,000 equity in your trading account.

2. For accounts under $25,000 do NOT buy and sell a position in the same day, hold your position overnight.

3. If you buy and sell the same stock/option in the same day, do not enter into a new trade where the monies from the sale of the stock just sold will be used in the purchase of the new position.

4. If you have purchased a position from monies from a prior same day sell, it is best to hold that position overnight.

5. Do not perform a day trade activity more than 3 times a week.

I have attempted to outline the day trading rules as I have encountered them over my years of trading. You can get much more detailed information by searching the internet for day trading and pattern day trader. A good source is Wikipedia.

I have traded several years in accounts under $25k and have never had a 90-day suspension rule applied, but have had several warnings about a trade that may trigger the 90-suspension rule. When this happens I just do not perform the trade and will wait till the next day. Happy trading…

Author: Chuck Ainsworth
Article Source: EzineArticles.com
Provided by: Programmable Multi-cooker

When it comes to stock trading it makes sense to try and do it as cheaply as possible.  If the charges you pay for making your trades are more expensive with one site than another, this will cut into your profit margin.  And that’s not something you want to be doing every day.

So how do you find cheap stock trading sites?

The number one point is research.  As you start to look into the market you will see there are plenty of trading sites that promise to help you make your all important trades.  But there are a couple of questions you need to ask.  Firstly, what starting balance do they require?  A quick look online for the purposes of writing this article revealed one company that needs a $15,000 start up balance.  In contrast another one found soon afterwards requires just $2,000 to begin with.  It just goes to show what a difference five minutes of research can make.  $15,000 will be beyond the reach of a lot of people hoping to start in stock trading.

Another thing you need to ask is what the charges are.  You will sometimes find that those sites who demand a higher starting balance charge lower commissions.  Lower balances meanwhile can point to higher commissions.  But this does not always ring true so do make sure you look into the details.

One thing you do need to be aware of is that online brokers are usually the best way to go.  Just as with other businesses they have little in the way of overheads so they can be more competitive in the marketplace as a result.

Once you have a shortlist of potential brokers to use, it is worth doing a bit of background research on them.  You can bet that other people out there have used them and reviewed them somewhere online, so take advantage of that fact.  If a particular service is less than satisfactory you will find evidence of it in reviews that have been left online.

Finally remember that cheap does not necessarily mean good.  Obviously you want to find a cheap stock trading site you can use all the time.  But you don’t want to do away with quality and an efficient service for the sake of spending a couple of dollars less per trade.  Always balance out the two essentials to find the best sites for your needs.

Next, check out our list of hot stocks that have made huge gains. Your #1 spot for penny stock trading picks.

Article Source:http://www.articlesbase.com/day-trading-articles/looking-for-cheap-stock-trading-sitesrf-1621649.html