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Uses the unique and original concept of Zone Pattern Probability Analysis to isolate day trades with the highest profit potential. Projects where key intra-day turning points are expected to occur based on price activity within the last 24 hours…. More >>

Detecting High Profit Day Trades in the Futures Markets: Using Zone Pattern Probability Analysis

You’re staying at the beach house working in your office, calm and collected as you collect the profit from yet another successful day trade is debited to your account.

Your kids rush in and you take a break and head outside to play in the sand since you just made another small and easy fortune while those suckers at the office are working harder for less. It’s a nice picture isn’t it?

If this imaginary scenario sounds familiar, it’s because there are probably half a dozen commercials on the television at all times of the day showing scenes like this to encourage people to get into day trading the Forex market, usually through signing up with a certain company or buying an expensive tutorial that is supposed to make beating the Forex market as easy as getting out of bed in the morning and turning on the computer.

So in danger of making myself unpopular, here’s the stark truth of the matter: most traders should not try day trading. Day trading the Forex might be trendy, but it’s not nearly as easy or profitable as these advertisements would like you to believe.

Day trading is an advanced form of currency trading, and often involves many shorter term trades. In fact, many Forex traders argue that turning a profit on day trading is one of the most difficult things to do in the Forex market.

There are literally hundreds of stories out there of smart, educated, sophisticated traders who went to day trading and proceeded to lose a fortune.

In my opinion, most traders would be better served learning to trade on the longer term trends that the Forex market has to offer. Not only does this allow you more data and time to analyze the developing trends in the market, but there is a lot more money to be made by being on the right side of a huge market breakthrough than by being right on even dozens of day trades.

If you’re good enough to make money day trading, why wouldn’t you learn to trade the parts of the Forex that offer bigger profits and less risk (although let me note, there is always major risk in trading Forex)?

While some traders will undoubtedly want to day trade, for most traders the real chance at making a living at the Forex revolves around the long term trades.

Learn to trade long term. That’s where the money is, and that can help you to avoid many of the scams and heartbreak that’s out there.

A day trading robot? Gee Wiz! Sounds like science fiction, right? It did to me just a few years ago. I would have never imagined that such a thing was possible. First of all, I came from a school of thought that believed nothing could be programmed to trade the markets successfully. I strongly believed this and argued with anyone that crossed my path. “No automated day trading system could tackle the stock market; impossible!” or so I thought. I also said to myself, “How could a computer program successfully factor fear and greed [the emotions that move the market] into an equation designed to extract consistent short-term profits from the market each and every day?” Well…,

…the bad news is that there really isn’t a robot to day trade stocks. Sorry to burst your bubble.

But…the good news is that there is one that day trades currencies (you know, the great forex market that I love and have bored you over and over with throughout this website?).

No folks; this is not “Forex Made Easy.” This is “Forex Made Easier”- An automated day trading system that NOT ONLY comes with a highly sophisticated set of conditions to enter and exit the market, but one that also pulls the trigger (that is, executes the trades) for you, using proper money management without which day trading is doomed to failure. [If you have not read why I strongly believe that the forex (short for foreign exchange) market is the purest and best market to day trade in the world, go to the currency trading section of this website]. This automated system is also known as Forex Robot or FX Bot (for frequently asked questions about the trading robot, click here).

Yes day trading fans. This day trading robot (or bot) not only finds the trades, it takes advantage of them when it finds them.

When the forex trading robot was presented to me for the first time, it was difficult for me to accept the whole concept. I got to admit, I was pretty skeptical. If the explanation wouldn’t have come from the best two money managers and traders I know (and personal friends of mine), I wouldn’t have even listened. But after a while, I was sold. “You, Dan? Mr. Day Trading Tutor?” – “Telling us that you believe in a day trading robot after writing an endless amount of information about how people could learn how to day trade, how much you believe in day trading, how you have helped day traders in the past, etc., etc.?”

Whoa, whoa!!! People, don’t get so exited. All of these things are still true. There are people that will learn how to day trade successfully and become successful traders. I am still involved on a very limited basis on the training of some day traders. But there are also many people out there that will never succeed as day traders and others that, after having tried it, will realize that it is not for them.

This is the truth; plain and simple. And even if the day trading robot wouldn’t have existed, this would have still been reality. The FX robot is just something extra that I feel can help not just unsuccessful traders, but also investors who can add something different (a new component) to their investment portfolios; and believe me, this is completely different than any investment I have ever seen before.

I created Day Trading Tutor to give you the reality of trading. Well, talking about the trading Bot is an extension of this goal. Since it exists and can help you, I must tell you about it – period!

Ladies and gentlemen; I am sorry if I sound really exited about this trading Bot thing – so exited it made me that I even became part of it in order to be able to offer it to my clients, friends, and family members (read “How are you involved in the day trading Bot and are you doing it just for the money?” below. I like to be very clear about the things I say. It makes me sleep peacefully at night. The thing is that I haven’t been part of a great project like this for a long, long time. The money managers and traders that designed and monitor the day trading robot on a daily basis have become personal friends of mine in the last few years. They are great guys and exceptional traders. They have been top-ranked in the past in the forex money management industry. I don’t like recommending traders or money managers to people, but this is an exception.

The robot program rocks!

What are your going to do now?

Lost your job? Your career is over? Your business failed?

Yet, you have some trading experience and the resources and passion to start a new career/business.

Then day trading may be for you. 

Unlike other individual financial instruments traded, with stock day trading there are thousands of stocks that can provide dozens of day trading opportunities (big money wins) – any trading day, any time of the trading day. This article is about: day trading stock, trading stock, stock day trading, day trades, stock day trade and the like and you.

A fresh perspective about stock day trading.

While daytrading, It is the job of the day trader to find setups, stocks that present opportunities to make substantial money, throughout the trading day, online day trading, especially day trading stock.

The successful day trader should be looking for stock in a tension state, which is simply a stock with a daily price movement substantially away from a price balance, technically speaking, when you view charts. A tension state would be much like viewing a pendulum with the ball pulled away from neutral enough that, when released, it tends to accelerates to its neutral state and beyond.

Stocks, like the pendulum ball, tend to seek a balanced state, and like the ball, they return to balance and beyond, then fluctuate above and below the neutral position as they eventually return to some state of balance, or non-tension state, above, below, or close to the point of beginning.

Do stock prices behave this way while daytrading during the same trading day? Yes and no.

There are times when price of a stock will be completely filled after a gap open (price move from the prior day close) that morning of day trading or later in the trading day. Other times you will see a 50% retracement in the same day. Most times a gap move at market open will hold this tension state or price move the whole day and fill completely or partially on subsequent days.

As there is no way to predict how the price of a stock will behave after a sudden, major price move, it is best advised to be out of any of these day trades before the end of the day trading day.

Day trading stock, we find, is also far more interesting, as each stock represents the performance of an individual company or companies with tangible and recognizable products and services exchanged worldwide, in many instances involving companies managed by recognized leaders in their field. Each stock has both a technical (long and short-term price charts) and a fundamental (financial performance, balance sheet, profit and loss statements, earnings and so on) histories – both in flux, both impacting price positively and negatively. Therefore, trading stocks is far more interesting, and frequently more challenging than other forms of day trading to make money yet the profits are unlimited for those who learn to play the new game well.

Why day trading as opposed to swing trading or investing?

The last few months of 2008 have been crises times for most stock traders, where holding after the market close presents enormous risk. Stock prices can move 5, 10, even 20% or more over night leaving swing traders in shock at the open of the following day trading day. For all those buy and hold investors, their experience was no less shocking where, within just a few months, their mutual fund, IRA, or private investments can be 30, 40, and 50% depleted in overall value in a matter of months, wiping out decades of gains.

Day trading stocks, buying and selling stocks within the same trading day, with no exceptions, is in our view the best day trading opportunity in the NYSE and Nasdaq markets while day trading stock, trading stock, stock day trading, day trades, stock day trade.

Done well, gaining the confidence and competence with a consultant / coach, trading with a winning system that consistently gives you anticipated results, stock day trading can be the most rewarding (both for the joy of winning and wealth building profitability) trading approach we know of (and we have tried them all).

You too can earn thousands a day – day trading stock, should you qualify.

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

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