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The Basic Day Trading Tools

The Basic Day Trading Tools

Almost all day trading is done electronically these days, which means that it is possible for you to operate your business from anywhere in the world with only a few basic day trading tools.

Computer

Day traders use a wide variety of computers to make their trades and get valuable information.

For example, some traders use a normal computer, one which you would find at any computer shop, while other traders have custom built computers that are designed to respond quicker, store more data, and having the ability to run many programs at once.

In reality, if you are just beginning your day trading journey, then a normal computer will be able to handle everything for you. Basically, you only need it to perform your trades and run certain day trading software programs.

Internet Access

Another important day trading tool is high speed internet access. Most people already have access to this, but if you don’t, then you should contact your internet provider as soon as possible to get it upgraded.

Trying to successfully day trade with a dial-up connection or extremely slow internet access would be a nightmare, and make your day trading business a living hell.

Charting Software

Day traders have a constant need to stay up-to-date with current information and trends. One of the day trading tools that they use to do this is charting software, which usually includes data such as current prices and volume in an easy to understand graphical view.

Once you start day trading on a regular basis then it will become an essential requirement to get charting software of your own. When you sign up with a day trading broker, you normally get access to this kind of software, but sometimes it is not very comprehensive.

Many traders actually invest in many different charting software programs, as they like to get data from multiple sources. Some of the more popular charting software programs available on the market are Esignal, TradeMaven and Sierra Chart.

Before purchasing any day trading charting software, it is highly advisable that you give some programs a trial run. Many of the popular programs offer demo versions, so you can test out the features and decide which one is the best for your current needs.

More About the Different Kinds of Day Trading Charts:

Bar Charts

Day trading bar charts are extremely easy to understand, and have been popular among day traders for many years. The basic information included in a bar chart is the open, high, low, and close prices that have been traded in any set period.

Candlestick Charts

Just like bar charts, candlestick charts have been a popular choice for years, and the data that they give is much the same. Again, you will find the open, high, low and close prices during a set period.

Line Charts

Not as widely used as bar and candlestick charts, line charts are still very useful for interpreting data in day trading. They usually only have one piece of information, which is the close, but when used with certain charting software they can also include the same information as bar and candlestick charts.

What is Day Trading

What is Day Trading?

Introduction to Day Trading

If you are thinking about the possibility of trying day trading for a living, then you’d better fasten your seatbelt for one hell of ride.

Once you enter the world of day trading, you will soon see just how enjoyable, exciting and profitable it all can be.

On the flip side, there are also the losses and frustrations that come on a regular basis. These highs and lows are not for everybody, but if you are truly in it for the long term, then it can be the most rewarding business on the planet.

One of the main benefits of being a day trader in modern times is that there are very little requirements to get up and running. If you have a fairly decent computer in your house, that comes with fast internet access, and you have somewhere to actually trade…then you you are in business!

Don’t be fooled into thinking day trading is easy though. At the very core day trading is certainly a simple game, but it is far from easy.

In fact, of all the thousands of people who try their hand at day trading every year, only a small percentage really make it. The vast majority of people struggle to make any significant long term profits at all, and many bankrupt their day trading accounts.

So what is the key ingredient that separates the winners from the losers?

The main answer to that question is knowledge.

You see, the more that you know about day trading, the more likely you are to be successful at it.

Once you really start to understand how to correctly read the markets and quickly identify trends that can make you money, then you are well on your way to being in control of your financial destiny by being an elite day trader.

Sure, there are other important factors involved in day trading as well, but superior knowledge comes out on top every single time.

What is Day Trading?

If you are still unsure of what day trading actually is, then allow us to clarify that for you.

Basically, day trading is the act of buying and selling things such as stocks, currencies and futures. The main goal of every trade that you get involved in is of course to make a profit, and this can be achieved for example, by selling a stock a higher price than which you bought it.

The main difference between day trading and other forms of trading and investing, is that in the world of day trading the vast majority of trades are completed within the course of a single day.

Sometimes, traders buy and sell within a matter of minutes, and things can definitely get crazy as people look to quickly make a profit.

Many years ago, the traders involved in day trading were mainly people that worked for banks. This however has changed drastically in recent years, as everybody now has access to market data, and trades can be made at a low cost.

The Pros and Cons of Online Day Trading

The Pros and Cons of Online Day Trading

The up’s and down’s of Day Trading

There are more people involved in day trading right now than at any other point in history. The main reason for this is the speed of doing business on the internet, as online day trading allows quick and easy access to an enormous amount of data…all at the click of a button.

Online day trading is no walk in the park though. Just like anything, there are pros and cons that need to be considered.

At the end of the day, not everybody is cut out to be a day trader, and it’s an unfortunate fact that the majority of people who start out never see any significant profit from their endeavours.

The pros of online day trading:

Freedom

Day trading online gives you the freedom to set your own schedule and create the ultimate lifestyle. You can run a day trading business from anywhere in the world, at hours to suit you, and with as much or little effort as you want to put into it.

It doesn’t matter if you plan on making online day trading your main source of income, or just as a little side project around your current job, you have total flexibility on exactly what hours you want to work. There are not many careers where you can say that.

Lower commissions

There are many day trading brokers online that offer extremely competitive commission rates, which is a major plus if you are looking to become a day trader on the internet.

Because of these lower commission rates, you are free to use your day trading strategy without having to hand over the majority of your profits to a broker. This also gives you a wider margin for error, which ultimately means your chances of being successful are greater.

Instant gratification

Let’s face the facts here…you want to get up in the morning and start trading, and you want to do it instantly without hanging around. Right?

Online day trading can offer you this, as you can easily buy and sell with the click of a mouse. This is in stark contrast to how things were done years ago, where even a simple trade could take the best part of an hour while you called your broker on the phone to act on your behalf. Check out other interesting information on Bola88.

The cons of day trading:

Hype

There are some websites out there that like to give the impression everybody can become a millionaire at online day trading with barely any effort.

It’s this kind of hype that sets up false expectations amongst online day traders, which ultimately leads to frustration and anger when the promised riches don’t emerge. Day trading is like any other business, and it can take months and years of consistent focus to become successful.

Information overload

Another downside to online day trading is the sheer amount of information currently available. While this can be a good thing when used right, it actually leads to the downfall of many people.

You see, a lot of people learn something and then don’t take action on it. Instead, they just move on to learning more strategies and tactics, without ever doing anything.

If you want to make it big with online day trading you have to take action, while cutting down on the amount of information you consume.

Day Trading Fail? Get Ahead of the Crowd with these Day Trading Tips

Day Trading Fail? Get Ahead of the Crowd with these Day Trading Tips

Day trading can be one of the most exciting ways to make money online. Unfortunately, many beginners are seduced by tales of quick riches and easy cash, leading them to lose their shirt almost as quick as they get started.

The fact of the matter is that day trading is a process. It can take time to properly understand how everything works, so that you can develop a day trading strategy that brings you a profit.

Also, nothing beats experience. You can read every book and guide ever written about day trading, but if you are not committed to getting out there in the trenches and trading in the real world, then you will never be a profitable day trader.

It’s okay if you start small and take some losses. The best time to learn and gain experience is when the stakes are low.

With that being said, here are some day trading tips to help you achieve your goals faster.

  1. Setting a stop-loss

Using a stop-loss in your trades is one of the best tactics to ensure you don’t go broke. If a particular trade goes bad, it is always a good idea to get out before taking a big loss.

Many beginners to day trading ignore stop-losses at their peril, and often take unnecessary risks trying to gain their money back, which ends in disaster.

  1. Stick with your strategy

Once you have decided on your day trading strategy, stick with it. A lot of day traders chase profits instead of following a proven strategy, which then leads to lack of focus and risky trades.

Any successful trader will tell you that this game is all about strategy and patience. Don’t be tempted to discard your strategy if you make some losses. Instead, stick with it for a set period of time and then assess it after that.

  1. Read day trading forums

Internet forums can be a great source of day trading tips, but not in the way you might think.

You see, it can actually be very profitable to see what the vast majority of amateur day traders are doing…so you can do the opposite!

There are many amateur day traders who frequent internet forums on a daily basis, and most of these people are not profitable traders.

If you hang around long enough, you will start to notice the things they do on a consistent basis, and their mindset towards day trading. Make it your habit of doing the opposite.

  1. Control your emotions

The day trading world is not a place for emotional people. The market fluctuates, unexpected things happen, some days nothing goes right. That’s just part of the game.

You have to learn how to keep your emotions in check and keep an even mind. Running on high emotion will lead to bad decisions, which are ultimately always followed by big losses.

Conclusion

Hopefully, the above day trading tips have given you a better understanding of what it takes to be a successful day trader.

Once you understand that day trading is all about practice and constant tweaking of your chosen strategy, then you’ll be well on your way to your first million!

Have you read our Beginners guide to day trading? If not then I highly recommend you do.

The Beginners Guide to Successful Day Trading

The Beginners Guide to Successful Day Trading

Day Trading For Beginners

Day trading has become increasingly more popular in recent years, and it’s easy to see why…as the traders who get it right and make successful trades on a consistent basis can make big profits extremely quickly.

This is in complete contrast to some other types of trading, where the action is slow and profits come in at a snails pace. Day trading certainly has more risk, but with that high risk comes high rewards. Curious to find out more?

What exactly is day trading?

In very basic terms, day trading is all about trading on the stock market during the course of a single day. This makes it extremely fast paced, as traders mainly focus on buying and selling stock during this time frame to make a quick profit.

Many people who are involved in day trading on a full-time basis do so on the internet, which means that stock can be bought and sold instantly. This is extremely important for a successful day trader, as they need the ability to act fast due to the fact that tiny fractions of a point can mean the difference between a profit or a loss.

The benefits of day trading

If you are looking to get onto the fast track to wealth, then day trading has a lot to offer. The most successful day traders have made large amounts of money in a short amount time, and given themselves a lifestyle that others can only dream about.

One of the major advantages of day trading is the ability to set your own hours. Because there is action on the stock market at all times of the day, in the four corners of the globe, there is no need to have a set schedule.

Can you become a day trader?

At the end of the day, anybody with an interest in day trading can become a day trader, whether it be on a full or part time basis.

However, although the essence behind day trading is actually quite simple, it is far from being easy, as people often make rash decisions based on their emotions and lose money as fast as they earn it.

With that being said, there has never been a better time to be a day trader. Due to the internet, there is now a huge selection of day trading strategies, resources, analysis, news and information available at the click of a mouse, which makes it easier than ever to trade smart. For more information visit the Suzuki Makassar

If you are really serious about day trading and the have the desire to make it work then there is no reason at all why you can’t be successful.

The most important aspect of day trading

Patience, patience…and even more patience!

If you are ever going to be a successful day trader than you must have patience. Unfortunately, this is not a characteristic that many people possess, which leads them to jump the gun and make bad decisions.

Avoiding knee jerk reactions and sticking to the basic principles of day trading will see you make profits in the long term. This is how every successful day trader makes their money, and if you want to join them, then you would be wise to follow their lead.

This website is full of resources which can help you become a successful day trader. Click Here to go back to the home page to view more of the articles.

Day Trading – Are you a Gambler or a Trader

Day Trading – Are you a Gambler or a Trader?

Is Day Trading a gamble or a skill?

Interestingly, many people who get into day trading often come from a gambling background. More specifically, gamblers who have a history of betting on the horses seem to end trying to make a living being a day trader.

Why is this?

Well, making a living at the racetrack can be a hard thing to do, so these gamblers look for something that is a bit more stable and predictable.

Day trading is far from being the most stable profession in the world, but there are elements of trading that are more predictable than horse racing. For example, stocks don’t fall at a fence or break a leg.

In reality, there are not many people who make a full time living as a gambler. Sure, they might experience success for a short period of time, but usually that is followed by a massive streak of losses.

Put simply, in the world of gambling, the bookie or casino always ends up winning.

So why is Day Trading different?

In the world of day trading this is not the case, and you have a far better chance of being a successful trader over the long term. There are many day traders all around the world that make an above average income, and enjoy a lifestyle that most other people can only dream about.

The main problem with moving from the gambling world to the day trading world, is that many ex-gamblers still keep a lot of the bad habits that is common amongst gamblers.

These bad habits cause the gambler to be always looking for the next big win, which means they start chasing it. The main problem with this way of thinking, is that when you start chasing something, it tends to run further away.

If you approach day trading with this kind of mindset there is no doubt you will eventually lose money. Throwing good money after bad is not the golden path to being a successful day trader, and it will quickly leave you broke and frustrated.

To successfully transition from gambler to day trader, there are a few simple “tweaks” that you need to apply to your way of thinking. Here are a couple of them.

Winning small is the key

This is the complete opposite to how most people approach gambling. When looking for bets, a gambler is always on the lookout for a big score. That underdog that will make them thousands.

In day trading this is not a winning strategy. Instead, the key to being profitable is to win small on a consistent basis.

Losing is okay

Gamblers hate to lose. They were sure that horse was going to win, and when it didn’t they are devastated. In order to gain their money back, they place more money on the next race, which sets in place a vicious cycle of losses and failure.

This is a very bad strategy in day trading, and is one of the main reasons why many ex-gamblers will never make the transition.

Understand that the majority of day traders are not overly concerned with their losses. They look at the bigger picture and stick to their strategy.