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Excerpt:

INO.com is undoubtedly one of the most popular, useful, and sought-after Websites for traders to date. It has made its presence felt through its rising membership and volume of regular users. There are more than enough reasons why the online site has constantly gained popularity. Available and offered tools are most helpful to beginners and even to professional traders. The site is simply better than its usual competitors.

The Website has bee… More >>

A Guide To Ino.com

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Michael Jenkins is a serious, highly successful, professional trader. In his two books, Geometry of the Stock Market and Chart Reading For Professional Traders, he shares some of his ideas on how he trades. Hungry for more of his ideas and direction, many of his readers literally begged for more. Jenkins has written this complete course in response to these requests.

In his books, Jenkins explains, among other concepts, how he uses some of Gann’s methods and techn… More >>

Complete Stock Market Trading and Forecasting Course

Day trading is an extremely risky way of investing in the stock market. Day trading is carried out by day traders who rapidly purchase and sell stocks over a single day period in the hope that for the very short period over which they hold the stocks (ranging from just a few seconds to a couple of hours) the value will continue to climb or fall thus allowing day traders to secure quick profits.

The method of buying and selling stocks over a very short time period can create huge profits or losses for the day trader in just a couple of minutes or hours. Statistics show that 80-90% of all day traders make a loss at the end of each trading day. However day trading has become an increasing popular form of trading in recent years as a result of the internet and increased access to information. So while day trading used to be a marginal form of stock trading reserved for the most part to financial firms professional traders and an elite group of private investors it is now also very common method of trading among casual traders.

Day traders are defined as traders who place four or more round-trip orders over a five day time period and the total trading activity over a day is 6% or more of the total value of all shares held.

Brokerage fees for day traders can be substantially lower than fees for other types of traders. While margins for most traders are usually around 50% of the value in traders account, day traders can face levels as low as 25%. This means that a trader can by lets say, $1000 worth of stock from an account of only $250.

Tips for success

The five most common strategies adopted by day traders who seek to make are profit are

* Trend following – used by all trading firms this strategy assumes that stocks that having been rising steadily will continue to rise.

* Playing news – this strategy is to buy stock in a company which has just announced good news

* Range Trading – this is where stock that has been rising and falling is bought near the low price and sold as it hits the high price range.

* Scalping – it is commonly defined as a very quick trade.

* Covering spreads – To play the spread or the make the spread simply means to buy stock at the Bid price and sell the stock at the Ask price. The difference between the bid price and the ask price is known as the spread. Because there is an historical tendency for the stock market to rise profit can be expected for this form of trading.

An individual wishing to trade in currencies does not need a huge amount of money to invest. You can trade from anywhere in the world that has an Internet connection, as many financial bookmakers now have online dealing platforms. Historically, stock trading has been the domain of professional traders.

Some Facts You Should Know In Day Trading:

1. The more faith there is in the trend line, the better it acts as a support for you.

2. According to the day trading system, when there is no good trade opportunity, the day trader makes a pass and stays in cash for that day.

3. The longer the stock stays at a particular level; the better is the day trading signal of support.

4. Day trading stock picks are chosen based on a set of strategies or methodologies, of which the most important are technical analysis, trend analysis, relative strength ranking, fractals and volumes, chart formations, and algorithms.

5. This is an ideal investment opportunity for the investor with a small amount of cash.

Some Benefits Of Day Trading:

1. One advantage of day trading is that you do not need to invest a lot of money to make profits.

2. First of all, it is a safer way for people who do not have a lot of know-how in stock trading; therefore, they can easily follow their stocks during the day and sell them off as soon as they see a rise in the value.

3. Stock market day trading is a great means of making money with a little of gambling.

4. Secondly, day trading allows for lesser speculation as the trader may not see a lot of variation in the values during a span of a day.

Some Tips For Day Trading:

1. The secret of stock market day trading, or any trading for that matter, is to always buy stocks low to sell high.

2. One point to remember in stock market day trading is that there is a limit on the gains from a single share.

3. Be conservative, and do not let the position take control of your account.

4. Day trader should not believe advertising claims, which promise quick and sure profits from day trading.

5. The key with trading is to give yourself a chance, and you really don’t with traditional day trading.

The Forex Trading;

Day trading, despite differences in times zones throughout the world, is also popular because the forex market remains open 24 hours a day. Forex Trading generates a volatility of 500 versus 60 to 100 in liquid stocks, and there are no transaction fees or commissions in the trading of currencies. There are many forex-trading companies that can train you for day trading so that your transactions are not reduced to gambling.

Trading Software:

Recognizing good trading software is an easy task, as the basic requirement is that of a data provider which will help you analyze the market before you start online trading. Many traders and investors rely too much on software’s used for these purposes, but you do not get a true picture of the market just by using these software’s, as there are many factors which constitute a stock market and some of them can only be assessed through skill and experience.

Some Trading Media:

1. While there are many day traders who do their trading using only the computer, there are others who trade using telephone and mobile phones.

2. Computers are the best medium for all kinds of trading, but particularly for day trading.

Day Traders Should Be:

1. Day traders are more particular with buying and selling not the bottom line.

2. In day trading, the trader does not hold stocks until the next day; instead dispose it off by the end of the day.

3. A person is considered a day trader when they can accomplish four or more day trades in a five business day period and has two unmet day trade calls in 90 days.

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

Online day trading though as easy as it seems because of the term “online” involves a lot of preparation. It is not something done as spur of the moment or as a simple hobby.

To be a successful trader online, you have to follow simple but unspoken how to’s in the trading world – these are the stuff that all professional traders do habitually.

First of all, you have to purchase or invest first in a heavy duty computer that you can rely on. Slow 386 computers with your big floppy disk will never work if you are going to trade online. As it requires quick impulses because you are on the trading floor- the online war zone, you have to have a computer that is able to support your online trading.

Since you are going to install or download a software for you to start with, purchasing a good computer with enough memory and capacity is essential.

Second, before venturing to the trading proper, you have to equip yourself with some essentials about online day trading. You have to learn the terms that online day traders use. Online share trading is a real world. You have to remember that.

Third, choose a capable and reputable broker that will do the actual trading for you. Look for some who offer low commission percentages but be careful that you are dealing with legitimate ones.

Lastly, make sure that your account is receiving updated notices. You do not want to be delayed and left wondering in the online day trading world. With modern autoresponders you can be kept up to date on virtually every aspect of your trading account. To make it even better, most online brokers now have iPhone applications that can put your entire trading account right at your finger tips.

To learn more about online share trading, visit my site and learn my super simple online day trading strategies that averages a 212% ROI.
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