Nov
30
How to Short sell stocks online with a discount online brokerage?
Filed Under Investing | 2 Comments
WorkingDogDude
I am new to stocks overall. I would like to know how can I short sell stocks online with a discount online brokerage such as Etrade, TDameritrade, charlesshwab, etc. It is even possible to short sell stocks online with a discount brokerage or will I have to contact individual brokerages?
I am new to stocks overall. I would like to know how can I short sell stocks online with a discount online brokerage such as Etrade, TDameritrade, charlesshwab, etc. It is even possible to short sell stocks online with a discount brokerage or will I have to contact individual brokerages?
Nov
22
recycle b
I am sick and tired of seeing my stock portfolio sometimes decreasing a few thousand dollars in one day. I am always looking for new stock investments. Which large corporate stocks are still available that have always made a profit and still have profit growth, have a low PE ratio, pay a dividend that will not be cut, have little or no debt on their balance sheet, and will be safe in this bad economy that we are facing. Provide the ticker symbols of these stocks and the reasons why the stock of these companies should be purchased.
I am sick and tired of seeing my stock portfolio sometimes decreasing a few thousand dollars in one day. I am always looking for new stock investments. Which large corporate stocks are still available that have always made a profit and still have profit growth, have a low PE ratio, pay a dividend that will not be cut, have little or no debt on their balance sheet, and will be safe in this bad economy that we are facing. Provide the ticker symbols of these stocks and the reasons why the stock of these companies should be purchased.
Nov
18
Day Trading Rules and Regulations
Filed Under Investing | Leave a Comment
Robert Joiner
It is one of the first, confusing facts for the neophyte trader. Day trading rules and regulations.
Let’s say Bill wants to start trading stocks. He opens an account with an online broker. He funds it (puts money into the account) and he applies for a margin account (margin is the amount of money the broker allows Bill for trading, on top of his equity position). Bill puts in $5000 and his broker puts in $5000. Bill doesn’t like the idea of holding stocks over-night, so he buys and sells his stocks on the same day. He does this three times in just his first day alone. Since he is new to day trading, he feels okay about just breaking even on his first day.
On day two, he does the same thing. And either before he executes the trade, or very soon afterward, he gets an email message from his broker. Something about a “margin call”. The broker is demanding that Bill deposit an additional $20,000 into his account immediately since he is now considered a pattern day trader. Bill freaks out because he doesn’t have $20,000. His palms get sweaty. He suddenly feels like a gambler who cannot repay his debts. And he anticipates a knock at the door any minute.
What Bill failed to do was to read the fine print supplied by his broker. It looked like standard contract stuff to him, so he just glossed over it. But if Bill had read the fine print regarding accounts, margins, day trading rules, and day trading regulations then Bill would have known not to do what he just did.
So, stated in simple terms (please read your broker’s fine print), these are the day trading rules and regulations. If a trader makes a same day round trip transaction (meaning the trader buys and sells, or shorts and covers, the same stock in the same day), then that is considered a day trade. If the trader does this more than three times during a five-day period that the market is open, then the trader is considered a pattern day trader. And a pattern day trader is required to have at least $25,000 equity in that account. This is the S.E.C.’s rule, not the broker’s rule. Lacking the $25,000, the broker is required to issue a margin call and demand that the trader deposit adequate funds to comply with the S.E.C.’s rules. Failure to do so can result in the broker closing that account.
So Bill has a choice. He can come up with the $20,000. Or, he can contact his broker, apologize on bended knee, and promise that it will never happen again. The broker will often forgive the first offense. But not the second one.
So, if you’re new to day trading, then read the fine print.
It is one of the first, confusing facts for the neophyte trader. Day trading rules and regulations.
Let’s say Bill wants to start trading stocks. He opens an account with an online broker. He funds it (puts money into the account) and he applies for a margin account (margin is the amount of money the broker allows Bill for trading, on top of his equity position). Bill puts in $5000 and his broker puts in $5000. Bill doesn’t like the idea of holding stocks over-night, so he buys and sells his stocks on the same day. He does this three times in just his first day alone. Since he is new to day trading, he feels okay about just breaking even on his first day.
On day two, he does the same thing. And either before he executes the trade, or very soon afterward, he gets an email message from his broker. Something about a “margin call”. The broker is demanding that Bill deposit an additional $20,000 into his account immediately since he is now considered a pattern day trader. Bill freaks out because he doesn’t have $20,000. His palms get sweaty. He suddenly feels like a gambler who cannot repay his debts. And he anticipates a knock at the door any minute.
What Bill failed to do was to read the fine print supplied by his broker. It looked like standard contract stuff to him, so he just glossed over it. But if Bill had read the fine print regarding accounts, margins, day trading rules, and day trading regulations then Bill would have known not to do what he just did.
So, stated in simple terms (please read your broker’s fine print), these are the day trading rules and regulations. If a trader makes a same day round trip transaction (meaning the trader buys and sells, or shorts and covers, the same stock in the same day), then that is considered a day trade. If the trader does this more than three times during a five-day period that the market is open, then the trader is considered a pattern day trader. And a pattern day trader is required to have at least $25,000 equity in that account. This is the S.E.C.’s rule, not the broker’s rule. Lacking the $25,000, the broker is required to issue a margin call and demand that the trader deposit adequate funds to comply with the S.E.C.’s rules. Failure to do so can result in the broker closing that account.
So Bill has a choice. He can come up with the $20,000. Or, he can contact his broker, apologize on bended knee, and promise that it will never happen again. The broker will often forgive the first offense. But not the second one.
So, if you’re new to day trading, then read the fine print.
Nov
15
A Raymond Randall
Market closing prices run up and run down faster than summer lightning strikes and rain pours. One day, investors are encouraged; the next day, investors are disappointed. Does the market mislead investors one day to sucker the same investor the following day? Or, does the stock market inform beyond immediate perception?
The difficulty facing investors involves delving below the obvious market numbers. When the market makes accelerated pricing moves is there a warning message underlying the number? All conversations involve the spoken or obvious message and the unspoken underlying message. Getting to the “what is really being said” challenges everyone listening to the language of the stock market. As someone told me once, “The real message is always the message behind the message.” Here are some messages within the message of the Dow Jones Industrial Average.
Intra-day stock market activity
Most investors ignore the opening, few glance at sidewalk tickers or hear intra-day TV or radio stock market reports. Markets drift or make wild intraday moves. In most cases, intra-day stock market price moves get their momentum from news. For example, “Stocks drifted lower in aimless trading Tuesday as mixed earnings news overshadowed an unexpected jump in consumer confidence and left investors cautious about extending the prior session’s sharp advance.” Each explanation references a news item. News moves the markets durng the day; company stock transactions provide the most obvious example of what news does to intra-day stock trading.
Trading Volume
The number of shares traded by a company stock or the equity market indices tells us the most. Volume matters in nearly every life-category. Often, I tell my children to “turn down the volume.” No matter what direction the market moves, turning up the volume makes the message clearer. A company’s stock price moves or broad market moves can be misleading. If a corporate stock reaches a new price high on lower volume, you may think all is well. In fact, the stock must make that new high price with strong volume (perhaps 3 times the daily average volume) to demonstrate strong buying activity. The same principle holds for market indices. High volume on the upside over successive trading days (no less than 3) recommends market strength; high volume on the downside suggests otherwise.
Industry Groups
Every bull market reveals industry group leadership. Briefing.com is one source of information about industry group strength or weakness. On this day, home entertainment software leads up while air freight and logistics shows weakness. You can also track 197 industry groups as an Investor’s Business Daily reader.
Leaders and laggards
Every group has its leaders and laggards. When the broad market indices shift out of a bull (down) market, a new group of stocks will emerge as leaders. Watching these stocks during a bull market provides investors with insights about a bull market phase. When leading stocks suffer pricing weakness, investors should stay alert to broad market shifts on the downside. Stock leadership cycles from bull market to bear market to bull market.
Making a correction
Commentators provide multiple excuses for the days when markets endure losses. Every bull market requires a 10% to 20% correction. This shakes out overly optimistic investors. Knowing when to get “in” and “out” of the market stymies stock market gurus. Some do it right some of the time, and others do it wrong all of the time. No matter what direction the market takes, equity/stock and debt/bond investors put their money somewhere. Usually, stock selling means bond buying. If stocks and bonds are sold, cash becomes the default investment. It all depends on the benefits perceived from any asset class.
Charles Dow’s “Theory” known as the “Dow Theory” provides some investment wisdom. Today’s market activity (Dow Jones up with the Dow Jones Industrials “down”) reminds us of 100 years of Dow’s investment wisdom. His successor was William P. Hamilton (the fourth editor of the Wall Street Journal.
* Hamilton’s bullet points on Charles H. Dow’s theory are helpful. “The Averages discount everything.”
* “The primary trend cannot be manipulated.”
* “Both the Industrials and Rails (the modern day Transports) must confirm each other in order for the signal to have authority.”
* “A rise in the Dow Jones Industrial Average must be ‘confirmed’ by the Dow Jones Transportation Average in order for the rise in the market to be sustainable.”
* Dow Industrials are companies that make; Dow Transportations are companies that deliver. If the transports are down, the industrials may be in trouble. Today, the Industrials are up (52 points); the Transports are down (80 points)
Asset Class Correlation and Manager Style
Asset allocation across and within asset classes allows investors to endure the downs while waiting for upward moves. It is more likely for asset classes to gain value in a bull market, but all asset classes will not participate at the same time. This is what an investor wants: one asset class up when another may be down. Within asset classes, trading styles should differ. Each of these functions adds value to portfolio performance.
Market closing prices run up and run down faster than summer lightning strikes and rain pours. One day, investors are encouraged; the next day, investors are disappointed. Does the market mislead investors one day to sucker the same investor the following day? Or, does the stock market inform beyond immediate perception?
The difficulty facing investors involves delving below the obvious market numbers. When the market makes accelerated pricing moves is there a warning message underlying the number? All conversations involve the spoken or obvious message and the unspoken underlying message. Getting to the “what is really being said” challenges everyone listening to the language of the stock market. As someone told me once, “The real message is always the message behind the message.” Here are some messages within the message of the Dow Jones Industrial Average.
Intra-day stock market activity
Most investors ignore the opening, few glance at sidewalk tickers or hear intra-day TV or radio stock market reports. Markets drift or make wild intraday moves. In most cases, intra-day stock market price moves get their momentum from news. For example, “Stocks drifted lower in aimless trading Tuesday as mixed earnings news overshadowed an unexpected jump in consumer confidence and left investors cautious about extending the prior session’s sharp advance.” Each explanation references a news item. News moves the markets durng the day; company stock transactions provide the most obvious example of what news does to intra-day stock trading.
Trading Volume
The number of shares traded by a company stock or the equity market indices tells us the most. Volume matters in nearly every life-category. Often, I tell my children to “turn down the volume.” No matter what direction the market moves, turning up the volume makes the message clearer. A company’s stock price moves or broad market moves can be misleading. If a corporate stock reaches a new price high on lower volume, you may think all is well. In fact, the stock must make that new high price with strong volume (perhaps 3 times the daily average volume) to demonstrate strong buying activity. The same principle holds for market indices. High volume on the upside over successive trading days (no less than 3) recommends market strength; high volume on the downside suggests otherwise.
Industry Groups
Every bull market reveals industry group leadership. Briefing.com is one source of information about industry group strength or weakness. On this day, home entertainment software leads up while air freight and logistics shows weakness. You can also track 197 industry groups as an Investor’s Business Daily reader.
Leaders and laggards
Every group has its leaders and laggards. When the broad market indices shift out of a bull (down) market, a new group of stocks will emerge as leaders. Watching these stocks during a bull market provides investors with insights about a bull market phase. When leading stocks suffer pricing weakness, investors should stay alert to broad market shifts on the downside. Stock leadership cycles from bull market to bear market to bull market.
Making a correction
Commentators provide multiple excuses for the days when markets endure losses. Every bull market requires a 10% to 20% correction. This shakes out overly optimistic investors. Knowing when to get “in” and “out” of the market stymies stock market gurus. Some do it right some of the time, and others do it wrong all of the time. No matter what direction the market takes, equity/stock and debt/bond investors put their money somewhere. Usually, stock selling means bond buying. If stocks and bonds are sold, cash becomes the default investment. It all depends on the benefits perceived from any asset class.
Charles Dow’s “Theory” known as the “Dow Theory” provides some investment wisdom. Today’s market activity (Dow Jones up with the Dow Jones Industrials “down”) reminds us of 100 years of Dow’s investment wisdom. His successor was William P. Hamilton (the fourth editor of the Wall Street Journal.
* Hamilton’s bullet points on Charles H. Dow’s theory are helpful. “The Averages discount everything.”
* “The primary trend cannot be manipulated.”
* “Both the Industrials and Rails (the modern day Transports) must confirm each other in order for the signal to have authority.”
* “A rise in the Dow Jones Industrial Average must be ‘confirmed’ by the Dow Jones Transportation Average in order for the rise in the market to be sustainable.”
* Dow Industrials are companies that make; Dow Transportations are companies that deliver. If the transports are down, the industrials may be in trouble. Today, the Industrials are up (52 points); the Transports are down (80 points)
Asset Class Correlation and Manager Style
Asset allocation across and within asset classes allows investors to endure the downs while waiting for upward moves. It is more likely for asset classes to gain value in a bull market, but all asset classes will not participate at the same time. This is what an investor wants: one asset class up when another may be down. Within asset classes, trading styles should differ. Each of these functions adds value to portfolio performance.
Nov
9
Carolyn Anderson
Trading is one profitable venture if you know how to. Indeed, trading or day trading is not for everyone, as this venture can be very risky. Of course, if you have what it takes to be a great trader, you can actually make good money out of day trading, but of course, you have to learn everything about it and make sure you are indeed prepared to make money with trading.
Trading is risky, and it does involve a lot of uncertainties. If you are someone who loves to challenge risks and uncertainties and has a strong decision making ability that can be useful in trading, then you might find it a good moneymaking venture as well. To help you on how to day trade successfully, here are a few tips that might help you.
- Learn everything about day trading. Although it des not always follow that a good knowledge on day trading will make you a successful trader, it can be of big help for you to minimize losses and maximize your profits as well as help you minimize the risks in trading.
- Always have a method or strategy in your trading. Even long-time readers follow a strategy and practice them before putting them into use. Although any strategy will not assure you of profits, it can however help you minimize risks and help you face uncertainties with confidence. It can also help a lot in minimizing losses as well.
- Practice. Before putting your money at risk, it is important that you have a real trading experience and not just learn from paper and from theories. You don’t have to risk your money right away. If you are trading online, you can actually get a demo account where you can learn the basics of trading as well as experiencing losing and winning as well.
- Make sure to have discipline. One of the things that can make you fail in trading is the lack of discipline. As a trader, you have to have discipline and learn how to follow your strategy or say enough to stop getting more losses. As a trader, you have to accept the fact that losing is part of the venture. In fact, you will experience losing at one time or another and you have to know when to stop to avoid losing everything you have.
- Find a mentor who can help you with trading. Someone who has been trading and who has mastered the ins and outs of day trading can be a very big help in your attempt to make good profits in trading. A mentor or a good resource that can guide you in details on what to look out for and how to trade wisely can help you have a good start in trading.
- Learn to accept losses. As a trader, you have to understand that losing is part of the venture and you have to accept that. Without that attitude, you will end up chasing the losses that you have incurred in your past trading and this can hurt your trading strategy and may put you at more risks as well.
Trading is one profitable venture if you know how to. Indeed, trading or day trading is not for everyone, as this venture can be very risky. Of course, if you have what it takes to be a great trader, you can actually make good money out of day trading, but of course, you have to learn everything about it and make sure you are indeed prepared to make money with trading.
Trading is risky, and it does involve a lot of uncertainties. If you are someone who loves to challenge risks and uncertainties and has a strong decision making ability that can be useful in trading, then you might find it a good moneymaking venture as well. To help you on how to day trade successfully, here are a few tips that might help you.
- Learn everything about day trading. Although it des not always follow that a good knowledge on day trading will make you a successful trader, it can be of big help for you to minimize losses and maximize your profits as well as help you minimize the risks in trading.
- Always have a method or strategy in your trading. Even long-time readers follow a strategy and practice them before putting them into use. Although any strategy will not assure you of profits, it can however help you minimize risks and help you face uncertainties with confidence. It can also help a lot in minimizing losses as well.
- Practice. Before putting your money at risk, it is important that you have a real trading experience and not just learn from paper and from theories. You don’t have to risk your money right away. If you are trading online, you can actually get a demo account where you can learn the basics of trading as well as experiencing losing and winning as well.
- Make sure to have discipline. One of the things that can make you fail in trading is the lack of discipline. As a trader, you have to have discipline and learn how to follow your strategy or say enough to stop getting more losses. As a trader, you have to accept the fact that losing is part of the venture. In fact, you will experience losing at one time or another and you have to know when to stop to avoid losing everything you have.
- Find a mentor who can help you with trading. Someone who has been trading and who has mastered the ins and outs of day trading can be a very big help in your attempt to make good profits in trading. A mentor or a good resource that can guide you in details on what to look out for and how to trade wisely can help you have a good start in trading.
- Learn to accept losses. As a trader, you have to understand that losing is part of the venture and you have to accept that. Without that attitude, you will end up chasing the losses that you have incurred in your past trading and this can hurt your trading strategy and may put you at more risks as well.
Nov
7
kyleparker360
Either what kind of stocks or specific stocks would be great. I have 500$ to invest and I am saving up for a car.
Either what kind of stocks or specific stocks would be great. I have 500$ to invest and I am saving up for a car.
Nov
6
A Solid Day Trade System
Filed Under Investing | Leave a Comment
Mark Crisp
This is why so many people are lured into day trading as it is often seen as the holy grail of trading, the one that can make you rich overnight.
It is no surprise then that in recent times the internet and even TV has become swamped with people toting their latest day trade system and how it can make you rich overnight, I wonder then how many of these vendors would run for the hills if someone were to ask them for actual proof of income from using the system? I’ll bet it would be a lot!
Dealing in foreign currency, stocks and shares or any such market is akin to gambling. You are basically gambling on whether the prices go up or down, of course this is a rather educated gamble. To do this you will need to watch the market trend to get a feel for it. The longer you watch the market trend for the more accurate your predictions will be. The problem is in the forex market time is money and waiting too long can mean missing great opportunities.
There are many people out there who will tell you that you can predict market trends after watching the market for just a few hours, personally I think this is more akin to a leap of faith than actual research.
The trader even when armed with the very best day trade system will make wins and make losses what is important is to make more wins than losses as there is no way that you will make enough profit in a day (unless you are very lucky) to stay afloat very long. There are many software packages and a whole bunch of day trade systems out there to help you along the way, it is nigh on impossible for a machine to predict exactly what is going to happen in a short space of time.
The best advice I can give you if you want a solid day trade system is to get an online trading account that comes with software to make your life easier and then use a demo account to ensure your profitability until you are entirely comfortable to start playing for real with your own hard earned money.
There are many books out there on forex trading both on and off-line and I would suggest that you read as much about day trading as you can if you are new to this exciting career.
This is why so many people are lured into day trading as it is often seen as the holy grail of trading, the one that can make you rich overnight.
It is no surprise then that in recent times the internet and even TV has become swamped with people toting their latest day trade system and how it can make you rich overnight, I wonder then how many of these vendors would run for the hills if someone were to ask them for actual proof of income from using the system? I’ll bet it would be a lot!
Dealing in foreign currency, stocks and shares or any such market is akin to gambling. You are basically gambling on whether the prices go up or down, of course this is a rather educated gamble. To do this you will need to watch the market trend to get a feel for it. The longer you watch the market trend for the more accurate your predictions will be. The problem is in the forex market time is money and waiting too long can mean missing great opportunities.
There are many people out there who will tell you that you can predict market trends after watching the market for just a few hours, personally I think this is more akin to a leap of faith than actual research.
The trader even when armed with the very best day trade system will make wins and make losses what is important is to make more wins than losses as there is no way that you will make enough profit in a day (unless you are very lucky) to stay afloat very long. There are many software packages and a whole bunch of day trade systems out there to help you along the way, it is nigh on impossible for a machine to predict exactly what is going to happen in a short space of time.
The best advice I can give you if you want a solid day trade system is to get an online trading account that comes with software to make your life easier and then use a demo account to ensure your profitability until you are entirely comfortable to start playing for real with your own hard earned money.
There are many books out there on forex trading both on and off-line and I would suggest that you read as much about day trading as you can if you are new to this exciting career.
Nov
5
How should i go about investing in stocks ?
Filed Under Investing | 4 Comments
sam r
i was thinking of entering the stock market world and start investing, i have to admit that i am young and only in high school, but i have such an attraction to the stock market. i plan to use the money to save up and help pay my tuition for college. Ive been reading about stocks and researching but i need help in going into it.
i was thinking of entering the stock market world and start investing, i have to admit that i am young and only in high school, but i have such an attraction to the stock market. i plan to use the money to save up and help pay my tuition for college. Ive been reading about stocks and researching but i need help in going into it.
How could i start ? What could i do as of now to help me invest properly, and what tips could you give me once ive started ?
thanks in advance.
Nov
5
Dr. Barry Burns
Day trading can be a thrilling way to make money. But it’s more challenging than most beginners think. Here are some day trading tips that can help the new trader as well as the more advanced trader to achieve your goals faster.
First: Be careful not to over trade. The majority of the time the market is a random walk – meaning that it’s moving without any rhyme or reason. Amateur traders taking small positions in the market are behind these unpredictable movements.
These amateurs do not affect the long-term movement of the market. The professionals, with their large volume and their willingness to hold positions longer, are the ones who create sustainable moves in the market that can provide meaningful profits.
Many people are drawn to day trading because of the excitement of the business and the potential for big, fast profits. This attitude sets up the trader for failure. Day trading does not have the frantic energy of a video game. Most successful day traders sit by the sidelines for long periods of time simply waiting for a high-probability setup to occur. The pros trade much less frequently than the amateurs think.
Second: The trend is your friend … sometimes.
The truth is that the trend is a fair weather friend!
It is your friend early on. But trends get run out of steam.
Therefore there are 2 times to trade when you can put statistics on your side:
When a new trend is just starting.
When a trend has run its course.
Trading only at these 2 times allows you to put the statistics of the “edge” of the bell curve on your side. Trading in the middle of a trend, puts you solidly in the middle of the bell curve where anything can happen.
Third: Join free trading rooms for day trading tips but do exactly the opposite of what you hear!
I’ve participated in many chat rooms over the years, and have received a tremendous benefit from them. But the benefit did not come from listening to the teacher. It came from watching the comments of the participants as they shared what they were doing at any given time in the market.
The vast majority of the time they were dead wrong in their approach.
They reveal the mind of the unprofitable retail traders. It’s almost eerie how the amateurs think alike when it comes to trading the markets. If you listen to them long enough in the trading rooms you’ll start to notice the patterns of the things they do consistently. Do the opposite and win.
As an example, one of the most common problems amateur traders have, is resisting the urge to fight the trend. You’ll often hear comments such as: “The market can’t go any higher than this.” “This market just has to turn around at this point.” “The market is definitely way over-extended now.”
It is absolutely amazing to see how amateurs habitually trade against the trend in an effort to find tops and bottoms. They are constantly looking for the market to turn around. As is always the case, you can profit tremendously by taking the other side of their trades.
Day trading can be extremely rewarding, but to be successful you must stand aside from the masses and avoid the herd instinct that drives so many. These 3 day trading tips can help you be among the minority who succeeds.
Day trading can be a thrilling way to make money. But it’s more challenging than most beginners think. Here are some day trading tips that can help the new trader as well as the more advanced trader to achieve your goals faster.
First: Be careful not to over trade. The majority of the time the market is a random walk – meaning that it’s moving without any rhyme or reason. Amateur traders taking small positions in the market are behind these unpredictable movements.
These amateurs do not affect the long-term movement of the market. The professionals, with their large volume and their willingness to hold positions longer, are the ones who create sustainable moves in the market that can provide meaningful profits.
Many people are drawn to day trading because of the excitement of the business and the potential for big, fast profits. This attitude sets up the trader for failure. Day trading does not have the frantic energy of a video game. Most successful day traders sit by the sidelines for long periods of time simply waiting for a high-probability setup to occur. The pros trade much less frequently than the amateurs think.
Second: The trend is your friend … sometimes.
The truth is that the trend is a fair weather friend!
It is your friend early on. But trends get run out of steam.
Therefore there are 2 times to trade when you can put statistics on your side:
When a new trend is just starting.
When a trend has run its course.
Trading only at these 2 times allows you to put the statistics of the “edge” of the bell curve on your side. Trading in the middle of a trend, puts you solidly in the middle of the bell curve where anything can happen.
Third: Join free trading rooms for day trading tips but do exactly the opposite of what you hear!
I’ve participated in many chat rooms over the years, and have received a tremendous benefit from them. But the benefit did not come from listening to the teacher. It came from watching the comments of the participants as they shared what they were doing at any given time in the market.
The vast majority of the time they were dead wrong in their approach.
They reveal the mind of the unprofitable retail traders. It’s almost eerie how the amateurs think alike when it comes to trading the markets. If you listen to them long enough in the trading rooms you’ll start to notice the patterns of the things they do consistently. Do the opposite and win.
As an example, one of the most common problems amateur traders have, is resisting the urge to fight the trend. You’ll often hear comments such as: “The market can’t go any higher than this.” “This market just has to turn around at this point.” “The market is definitely way over-extended now.”
It is absolutely amazing to see how amateurs habitually trade against the trend in an effort to find tops and bottoms. They are constantly looking for the market to turn around. As is always the case, you can profit tremendously by taking the other side of their trades.
Day trading can be extremely rewarding, but to be successful you must stand aside from the masses and avoid the herd instinct that drives so many. These 3 day trading tips can help you be among the minority who succeeds.
Nov
2
Ryan Gee
What stocks have you personally invested in recently and made profits? How much of a percentage did you earn on these stocks?
What stocks have you personally invested in recently and made profits? How much of a percentage did you earn on these stocks?