Day Trading

A market that is trending up should have higher peaks and higher valleys. The majority of bars should also have higher highs and higher lows. In a down trend the market should have lower valleys and lower peaks and the majority of bars should have lower lows and lower highs.

When a market is in consolidation (bracketing/flat) the price will generally oscillate in a broad range. Traders who are watching for the breakout will monitor the security for a qualified break. They may place a straddle traded to catch the move regardless of whether it breaks up or down.

There are traders who specialize in trading consolidation. I don’t however recommend it to new traders simply because they get whipsawed too much.

Reading Gary Smiths book “How I trade for a living”, I came across a reference to an interview with Donald Sliter, a top S&P floor trader. When asked about his day trading strategies he had replied that it is a matter of understanding strength and weakness. When asked to expand on that, he said, “I scalp to the short side if we are trading weak to the Dow. I scalp to the long side if we’re trading strong to the Dow.” The interviewers were amazed that one of the biggest traders in the S&P pit had such a simple day trading strategy.

For me, this reinforces the idea that as an active day trader of the futures market, it is not about developing complex, high probability day trading strategies; it is about having simple, logical, high frequency strategies that give an edge. There are different approaches to creating an edge in trading. One that I like is to have a technique for determining the trend of the market and then looking for opportunities in line with the trend. One of the problems of trading trend following day trading strategies is that they generate frequent losses in non-trending markets. One way to mitigate this problem is to not trade the signals from your trend following day trading strategy, but use them as a filter for your trades.

Lets say you use a moving average (or any other trend identification approach) to measure trends; instead of buying the market when it crosses the moving average, see it as a signal to look for buying opportunities. So your day trading strategy is to be a buyer when the market is above the moving average and a seller when the market is below the moving average. You can then use any number of techniques for generating entry signals in line with the identified trend. If, for example, you are a fan of RSI or any other oscillator, use that as your entry signal, but only take signals in line with the trend as you see it.

When the market is trending, your trend following technique will keep you on the right side of the market and your entry signal is likely to produce multiple successful trades. When the market is range bound, you will still have the opportunity to trade profitably because you won’t be trading every breakout, you will be naturally drawn to buying dips and selling rallies (in line with your trend strategy signals).

Martin Chandra
http://www.articlesbase.com/non-fiction-articles/day-trading-strategy-88030.html

• My Powerful Day-Trading Strategies Combining Fundamentals and … – My Powerful Day-Trading Strategies Combining Fundamentals and Market Direction By David Ristau, The Oxen Group Knowing when to buy and when to sell is.
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$1K+ gain
Pick : GS, POT, NOV, FSLR
This is a raw video with minimum editing.

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http://tradingwhiz.info – Learn the simple day trading strategies that I’ve been using successfully over the last 18 months to make a small

fortune on the stock market. It’s really simple and if you follow my instructions you will succeed. I will show you how

to do the best stock picks, when to buy, when to sell and show you some of the trading software I am using to trade

stocks and make money – even in bull markets

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http://ifiredwallstreet.com Day Trading NYSE Stocks is a popular tactic used by top professional traders. Online Traders also love to use Gap Trading Strategies and Tactics to profit each day in the stock market. In this video I show you a trade I took in ESI, an NYSE listed Stock, using my Gap Trading Tactic. This trade made nearly $5.00 for me. Day Trading can allow you to profit even while the market falls. Learn How to Day Trade Gaps and Learn to Day Trade NYSE Stocks in this video.

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Longer term day trading strategies! from http://www.eminitradingstrategies.com

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Dr. Adrian Manz has been a professional equities trader for nearly 12 years. In this video he discusses the potential the business has to offer to entrepreneurs looking for a new career and describes the important considerations in selecting trader education.

This is the first in a series of videos for new day traders, swing traders, position traders or those looking to get started in financial futures trading.

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Options Trading Course. How Options Trading can make you a living. Jules Dawson explains options trading for beginners.
For more info visit: http://www.julecorp.com/

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I am thinking about doing some day trading this summer instead of finding a summer job. Does anyone have tips on what brokerages are good and any other advice.

TDAmeritrade or Scottrade. TDAmeritrade has quicker execution times.

http:// www.todaytrader.com. Day trading in stocks is both risky and difficult. Please consult your financial advisor before attempting to trade actively. TodayTrader is not responsible for any content that may be viewed on this channel. These videos are not meant to be recommendations in the market. Day trading equities requires a retail account balance of at least $25,000 and must remain at or above this level to trade stocks actively. This website is not a solicitation to buy or sell securities, options, or futures. The purpose of this content is educational only.

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Why Option trading? Compare stock trading to option trading.

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If you look at the amount of day trading systems and methods on the web you would think there would be a lot of people making a lot of money.

The fact however is day trading methods don’t work and day trading is NOT a way to make profits, its a way to wipe your trading equity out quickly.

If you want to know why you wont win read the facts

Firstly, I have been involved in financial trading for 20 years and never seen a day trader with a track record of consistent profits.

When you buy a method from a vendor they normally try and persuade you with a few testimonials of odd winners (day traders sometimes get lucky ) or a hypothetical track record of great gains.

Let me explain what a hypothetical track record is. It’s a record made in hindsight knowing the closing prices so it’s hardly surprising you never see one that losses.

Ask anyone selling a day trading, method for the real time track record over the long term and you won’t get one, simply because day trading doesn’t make money.

Lets look at why.

1. Time Frame is to short

The time frame is simply to short. You cannot predict what will happen in a single day and prices could go anywhere. You may as well flip a coin.

2. Volatility in short time frames

Again is random.

Day traders like to place fairly tight stops and normally they get taken out by volatility.

3. You need to run profits

Part of successful trading is to “ Run your profits and cut your losses”

In day trading methods you certainly can cut your losses ( and you will have a lot of them) but running profits is totally alien to day traders.

They normally want to scalp the trade for small profits and get out quickly.

The net result is they have a few profits that are marginal and never make up for the huge amount of losses they take.

The reality is:

Currency markets reflect long term economic conditions and trend longer term.

Each day trillions of dollars are traded in the markets and to try and predict price direction and volatility in a day, or a few hours is not going to work.

The real test of any trading method (not just a day trading method) is if it makes profits over the longer term.

As we said earlier ask anyone selling a day trading method for a profitable real time track record and you wont get one.

Sacha Tarkovsky
http://www.articlesbase.com/investing-articles/day-trading-methods-who-makes-big-profits-at-day-trading-109895.html

Day trading is a style wherein traders either sell all long positions are sold or cover short positions at the end of the trading day. There are many markets for day trading and some of these are currency, stocks, futures and commodities. For simplicity, we associate trading with purchasing a commodity, bringing it home or to our business premises, and then selling it.

Some Facts You Should Know About Day Trading:

1. In day trading, different shares are bound to undergo different resistance and support levels.
2. Day trading systems utilize objective and mechanical criteria to choose the different trades of the market.
3. The day trading signals are the signals acquired when stocks bounce off of support levels or sometimes even off resistance, if required.
4. The stronger faith there is in the trend line, the better it acts as a support for you.
5. Day trading stock picks are selected 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.

Some Benefits Of Day Trading:

1. The main advantage of day trading is that one’s stock positions are not held beyond the current trading day.
2. Another benefits of day trading is that since the positions are closed at the end of the trading day, any sudden news of events doesn’t affect the opening prices of trading.
3. One of the benefits of day trading is that since the positions are closed at the end of the trading day, any sudden news of events doesn’t affect the opening prices of trading.
4. 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.

Some Tips For Day Trading:

1. Follow the day trading system rules and standards by remembering the number of open positions.
2. If you plan to invest your money in day trading, see to it you do not put in all your hard earned savings in one go, as this might prove to be quite dangerous for you.
3. According to the day trading system, it is a necessity to always be aware of the share movement and to not make wild decisions based on a margin call from a broker.
4. Do not trust advertising claims that promise fast and guaranteed profits from day trading.
5. You have to work with an experienced day trader, need to learn latest techniques, use latest stock market investment software, subscribe to on-line day trading tutorial and need to devise your own trading plan.

Trading Software:

A number of 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 skills and experience. Trading softwares are not only important but necessary to survive in today’s competitive market.

Bercle George
http://www.articlesbase.com/currency-trading-articles/some-day-trading-ideas-you-must-learn-382957.html

The individual investor will typically include some stocks in their investment portfolio. And whether they are a long term trader or in it for much quicker returns, many investors understand and feel somewhat comfortable with the concepts and techniques of trading stocks.

Options tend to be much less understood – and therefore avoided. But Options can form an extremely valuable part of your trading strategy as they can provide tremendous returns!

So here I will try and give you some of the fundamental concepts behind trading options.

Options are a contract conferring the right to buy (a call option) or sell (a put option) some underlying instrument, such as a stock or bond, at a predetermined price (the strike price) on or before a preset date (the expiration date). Options officially expire on the Saturday after the third Friday of the contract’s expiration month but because the markets are typically closed on Saturdays, the Friday is commonly used as the expiration date.

A key concept to grasp is that, when you buy an option, you don’t actually own the underlying security. You simply own the right to buy (or sell) at a specific point in time. But, of course, the price of the underlying instrument and the time remaing before expiration both affect the value of the option itself.

So in trading options you have two main ways to make money on them:
- You can hold to maturity and then exercise the option (with the expectation that the underlying instrument is then worth more than what you are entitled to buy it at – your “strike price”)
- You can sell the option itself prior to expiration (in the expectation that the value of the option itself has risen above what you paid for it)

A great many investors do in fact hold until maturity and then exercise the option to trade the underlying asset. Assume the buyer purchased a call option at $3 on a stock with a strike price of $30. (Typically, options contracts are on 100 share lots.) To purchase the stock the total investment is:

($3 + $30) x 100 = $3300 (Ignoring commissions.)

So if, at expiration, the stock is worth more than $33 you’ve made a profit (You can sell your 100 shares for more than $3300 right away).

Speculating on the actual value of the option itself is the second alternative.
Let’s use the same example above.

You bought your options for $3 with a strike price of $30.

If the price of the underlying stock goes above $33 at any time prior to expiration, then naturally more people will want to try and get a hold of that option you own, because they see a high likelihood of making a profit off the underlying security. With the increased demand for that option, the value of the option itself will likely go up. So you can sell the option to that higher bidder for a profit.

For example, if the price of the underlying stock rose to, say $35 then the option itself may become worth, say $4 on the open market. So you sell your options for $4 and make a nice 33% return. Without ever having owned the underlying stock itself.

Those are the kinds of returns that make options so attractive.

Many brokers offer trading accounts to individual investors that allow options trading and frequently at very competitive commision rates.
It really isn’t very difficult to get started.

Options trading is risky, so manage your risk and your assets wisely and only use a small percentage of your overall portfolio for trading options. But do consider them as an additional component of your investment strategy, as they can yield tremendous returns when traded correctly.

Richard Cochrane
http://www.articlesbase.com/finance-articles/options-trading-101-120650.html

After reading the book “Rich Dad Poor Dad” by Robert Kiyosaki, I came to realize that not only is there a rich and poor path in life but also a rich and poor path in options trading as well. Many options traders experience defeat in their options trading career, especially during the first few months, because they are unknowingly walking down the poor path in options trading. There are many differences in the approach winners take in options trading versus the losers and we shall outline and explore some of these in this article.

Rich Options Trading :

1. Speculative directional options trading using direct call or put options buying only with a small percentage of their fund and only on the stocks with the best chances.

2. Extensive use of Option Greeks in order to dynamically hedge a position when conditions change.

3. Always doubt one’s own conclusions and make provisions for losses.

4. Always have a stop loss policy already in place or in mind. Stop loss points can be in the form of contingent orders or trailing stop orders.

5. Understands the exact options trading style that suits them. Emotional options traders should stay out of day trading.

6. Know that there is no one best way to trade every single situation.

7. Do not chase after profitable trades that have been missed earlier on.

8. Satisfied with a steady, consistent gain.

9. Into options trading for the long run.

10. Think options trading education for a start.

11. “Trades” the market.

12. Keeps a trading log.

13. Learn from mistakes.

14. Understands technical and fundamental analysis.

Poor Options Trading :

1. Speculative directional options trading using direct call or put options buying with all their money hoping to hit a “big one” on stock picks taken from the TV or non-professional friends.

2. Has no idea what option greeks are at all.

3. 100% confidence! Full steam ahead!

4. Realize it’s too late only when it’s too late.

5. Follow whatever options trading style that is supposed to produce extra-ordinary gains only to completely break the rules and your pocket.

6. Stick to only one way of options trading for all market conditions and situations.

7. Missed a trade, watched the price go up and then enters it at that new high price only to see prices tumbling like a rock thereafter.

8. Always looking for ways to make more explosive gains from stock options only to have the dynamite eventually exploding in their face.

9. Start options trading with the purpose of quitting after hitting a big profit.

10. Think money making for a start.

11. “Plays” the market.

12. Forgets the last trade made.

13. Hates mistakes and tries to forget mistakes.

14. Mystifies and follows technical analysis superstitiously.

Well, as you can see from the list of differences above, the difference between rich options trading and poor options trading is not only a matter of technique or method but also a matter of attitude and mental approach. Only when the right mind meets the right technique does rich options trading happen. Are you making any of the mistakes that poor options trading makes?

Jason Ng
http://www.articlesbase.com/finance-articles/rich-options-trading-poor-options-trading-699285.html

I am new to day trading and my "mentor" has failed to train me on preparing for the following day and spotting stocks under pressure. Can anyone give me some advice, it would be greatly appreciated.

Pick one stock in each sector and follow them daily. Chasing the news is not a good way to trade. You need to understand the companies and the value of the news.