day trading for dummies

Successful in online day trading for dummies

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Day Trading For Dummies

Penny Stocks For Dummies

A Beginner's Guide to Day Trading Online

Day trading for dummies - Day trading is undoubtedly the most exciting way to make money from home. It's also the riskiest. Before you begin, you need three things: patience, nerves of steel, and a well-thumbed copy of Day Trading For Dummies—the low-risk way to find out whether day trading is for you.

1. First, to be successful in online day trading, you have to do research using the myriad of free tools available.  For example, throw a couple parameters into the screener at FinViz.com and see what pops out.  A useful scan is the gap scanner; gapping stocks are popular play in the day trading arena. This will give you a list of stocks that have gapped.  Tighten the results by setting a price range, volume range, market cap, etc.  You can also check out the free portion of the Wall Street journal to see what they think is going to move today, and peruse the free version of Briefing.com.  Now the trick here, instead of telling people exactly how to find stocks to trade for free, you pretend like it’s some well-guarded day trading secret.  Then, you sell this secret in the form of a subscription service that you charge $30 a month for – minimum. - day trading for dummies.

day trading for dummies - Next, you sell into every gap up and buy into every gap down.  The odds are in your favor because you heard somewhere once that every gap closes.  Even if not EVERY gap closes, you’re very certain that more gaps close than not.  This is not based on any actual experience or evidence, but rather something you read one time.  You know, that one book about the gaps that close all the time.  If you’re really crafty you’ll sell this brilliant piece of information along with your stock picking service, but you’ll charge double because these are the hot tips that really make the big money.  Never give exit strategies, only entries.  If your subscribers complain that they aren’t making money, you just say it’s because they aren’t seeing the obvious exits.  It’s their fault, not yours.  They weren’t cut out for day trading online - day trading for dummies

Equipment To be successful day trading for dummies
To be successful as a day trader, you need equipment that lets you access and act on trading information quickly, software that lets you keep track of your trades and analyze your performance, and a brokerage account through which you can execute your trades. This list gives you guidance on what to look for when selecting each of these things:

1. PC with a good monitor - day trading for dummies
Most personal computers sold today have the processing power to handle day trading. Because you’ll be spending a lot of time in front of your computer, do yourself a favor and get at least one large flat screen monitor that enables you to have at least two windows open at one time.

2. second PC
No matter which brand of computer you buy, you’re subject to mechanical or software glitches that can shut you down. For this reason, have a duplicate of your system on a laptop or second PC so that you can switch over quickly if you need to. day trading for dummies

3. High-speed Internet access
You need a fast, reliable connection of at least 4 megabits per second.

4. Spreadsheet software - day trading for dummies
Spreadsheets help you track performance and analyze returns. Although other software packages can work, Excel is the standard. So if you still haven’t figured out how to use Microsoft Excel, you now need to.

5. An online brokerage account
Several brokerage firms specialize in the needs of high-volume traders. They offer online access, real-time quotes, backtesting and other analytical services, and low commission to those who make many trades.

Three key tips for success day trading for dummies

1. Trade with the trend
This is the one that every trader knows, yet sometimes it’s hard to abide by. I know I’ve had my struggles with it. I’ll often see some tiny stock double of triple in a day (or less) on some ridiculous news/rumor. My first thought is usually ‘this is crazy, I should short this crap!’. But that kind of counter-trend trading can be very hazardous to your bank account.

2. Trade only active, liquid stocks
Stocks that are extremely active (experiencing a surge in volume) usually have some news that’s driving them. You want stocks with a good amount of volume so that you can get in and out easily, quickly, and with minimal slippage (the difference between the order that you gave your broker and the actual price that you got for your order). day trading for dummies

3. Trade always with good reward-to-risk profiles
There’s no sense in risking $500 to make $100

Forex day trading for dummies Advantages

Day trading for dummies - Assuming that we are going to cover day trading for dummies, there are a few points that you need to know. For instance:

1. Day trading in Forex happens from Sunday at 5 PM EST to Friday at 4:30 PM EST.
2. The minimum investment necessary is extremely low as opposed to buying and selling stock.
3. Leverage may be used to great advantage. Leverage is basically borrowing the money for investments, in essence allowing you to work with other people’s money.
4. Extremely low spreads. Spreads are measured in pips, which are the lowest fractional price unit for currency.
5. Less amount of currencies. Unlike stocks, of which there are thousands, there are only a few currencies in dealing with Forex.
6. No cost training programs. You will find that there are free online Forex training programs available for dummies to learn about Forex.
7. No commissions. In a financial market such as Forex, the market maker is compensated via the Bid/Ask spread. Remember the pips?
8. Trading software. A number of investment companies offer free trading software and will even equip you with a practice account until you are no longer doing day trading for dummies but day training for a knowledgeable business.
9. I hope this has giving you a little bit of insight into a long term successful trader's mind.
10. Check back as I'll post more once I have some time to put pen to paper a bit more. Take care and thanks for reading.