Day Trading Stocks Guidance
Day trading refers to opening and closing a position within the
same trading day. Day traders rapidly buy and sell stocks throughout the day in the hope that the stocks
will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in
Here are the characteristics of a successful day trader:
** They stay neutral;
** They have a strategy;
** They keep a journal on all trades;
** They focus on 1 to 3 techniques that suit them well;
** They are great money managers;
** They are comfortable with risk and uncertainty;
** They accept personal responsibility for all of their action; and
** They use risk capital to trade.
If you can't conform to those requirements then you have no business being a day trader.
The concept of keeping a journal is so important that I want to discuss it a bit more with you. You can not
possibly keep the details of every trade in your head. Your trading history is important because you need to study
your trades to see if there are any pattern of success or failure that emerge.
When making an entry into your journal, track the following details:
- The ticker (of course).
- The time you got in.
- The time you got out.
- The in and out price.
- Why you took the trade.
- A short summary of what was going on in the market at that moment.
- How the stock behaved.
This may seem like a lot of work, but once you get used to doing it, it gets easier. Review your journal
regularly and you will show you your weaknesses and strengths.
Being comfortable with risk is another topic that bears closer examination. Risk is the name of the game in day
trading. You can't be a day trader if you are playing with "scared money". That's because you will let fear and
greed control your decision making process. Great traders learn how to deal with risk early in the game.
You can't day trade if you don't have access to real-time market data. Relying on delayed quotes will cause to
to execute many losing trades.
Here are the minimum items that need to be in your toolbox:
- Real-time Stock quotes and ticker
- Real-time market averages and indices
- Real-time market news stories
- Real-time Charting
- Real-time Price and news alerts
Plus, if you can deal with the background noise, keep your TV tuned to one of the 24 hour news/business channels
so you can hear breaking stories and stock market news as they occur.
Online Order Execution
A day trader also needs access to the market to execute trades. There are two basic types of online order
execution services. The first type of service is that which is commonly offered by Internet-based online discount
brokers such as E*trade or Quick & Reilly. The second type of service is a specialized services that connects
the trader directly to the relevant exchanges via modem or dedicated phone line. These systems are called
Electronic Direct Access Trading (EDAT).
Serious traders need to consider an EDAT system if they want to be in control of their own trades.
There is a lot to know about being a day trader. This article is only the tip of the tip of the ice burg. You
can make or lose a fortune in moments. Make sure that you know what you are doing before you enter this exciting
and rewarding career!
|Recommended Resources ...
The Master Trader Highly Recommended
This whole course is dedicated to walking you through the entire process of day
"The course is designed for the stock market and if you have
ever been interested in learning all the ins and outs of daytrading the stock market then this is a
must have ebook. The ebook not only covers everything you need to know about
the mechanics of day trading the stock market, there are also excellent explanations on how to use
his methods. Examples are easy to follow and easily understood."-
Click here to read our review.
Keeping It Simple Day Trading
This eBook is suitable for complete beginner/novice traders as well as for the more experienced
trader who has the desire to better their trading skills.
This technique is very simple and straightforward, to help you maintain consistency
during your trading, with very little effort and a high probability of success. It works both
in range-bound markets as well as on trend days. The author trade primarily the
Russell2000 e-mini, but it is also applicable to all liquid markets.
If you bring motivation and desire to learning and implement this simple method
you will have all of the technical trading skills required to make a living trading.
Click here to download your copy
Day Trading Freedom
The comprehensive manuals give you the solid foundation for your trading. It
start right from the very basics up to a complete strategy for successful trading. The author teach
you his highly profitable trading setups he learned through years of researching the most
successful day traders and clearly explained for you to profit from.
95% of Day Traders who loses money instead of making it. How do you become one of
the 5% of traders who actually make money?
Click here to find out more and download the short
guide as a bonus.