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Day Trading for Dummies – A Quick Start Guide

Day Trading for Dummies – A Quick Start Guide

Our Day Trading Quick Start Guide

The world of day trading can be a scary place. If you don’t have a basic understanding of what you’re doing, then you will lose money, and probably end up so frustrated that you never want to make another trade again.

Understand that every day trader starts out knowing nothing, and they got started learning the basics first.

Below is a brief introduction to what day trading is, and a quick overview of the equipment needed to get started.

What is day trading?

Day trading is slightly different from other types of investing, as the securities are only held for one day. This certainly reduces the risks compared to long term investing, as there is no chance of big losses occurring overnight.

However, because everything is done during the course of one day, it means trades often runs at a frantic pace. It take a while for a beginning day trader to adapt to this fast way of trading. Some people never adapt at all.

At the end of the day, this form of trading is a crazy business and not everybody is cut out for it. If you think that you are, then it will pay you in the long run to build a solid foundation and learn the business properly.

Learn more about the different day trading strategies and then decide which one will be the most suitable for you to follow. Once you pick a strategy, stick with it, and don’t be distracted by shiny objects.

What equipment do I need to start day trading?

Although it is not essential to spend thousands on day trading equipment to be successful, there are a few basic things you should invest in to get you started.

A good PC

The majority of personal computers available to buy will have the required processing power so you can start day trading. One thing to keep in mind is the size of the monitor, because when you are spending large amounts of time in front of the computer a small monitor can be punishing to your eyes. A large monitor will also allow you to have multiple windows open at any one time, so you can do more trading.

A backup PC

It doesn’t matter how expensive your PC is, it will probably break down at some point or suffer from technical glitches. It’s for this reason that it is always beneficial to have a backup PC nearby, so you can quickly switch over and not lose any time day trading.

Internet access

A dial-up connection just won’t cut it. In day trading speed is the key, and often decisions need to be made in a matter of seconds. For this reason, it’s essential that you have high speed internet access that is reliable.

Microsoft Excel

Once you have decided on the day trading strategy you will be following, it’s important to track your performance so you can analyze everything at the end of a days trading. Using a software program such as Microsoft Excel will allow you do this.

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Get The ‘Inside’ Day Trading Information Like The Pro’s

Get The ‘Inside’ Day Trading Information Like The Pro’s

If you want to become a profitable day trader, then it is important to be constantly on the lookout for different information so you can come up with new ideas and tactics.

Because this is the “information age,” there are many different sources to get information from. The main question you should always be asking yourself is: “is this source is a reliable provider?”

You can get day trading information from various sources on the internet, television, offline publications, and your broker.

Getting the insider information

In day trading, your biggest advantage is going to come from identifying stocks, currencies, and commodities that have been priced too high or low. This then gives you the chance to place a trade where you can profit as quickly as possible once the stock starts to move.

To identify these under or overpriced stocks, it is essential to get access to some day trading insider information. The main hurdle you face when looking at information is whether or not the source is credible, because quite a lot of what you read may be biased and have an ulterior motive for giving out particular information.

One of the best places to look when gathering insider day trading information is the daily economic and market reports.

This will give you a lot of factual data on the prices that are being traded in various sectors, and can be a good way to gauge how other people in the marketplace are thinking and trading.

You can then combine this information with the news, views and opinions you get from many of the business television shows, radio shows, newspaper articles, and internet forums.

It is also a good idea to look closely at the reports and newsletters that your day trading broker publishes on a regular basis, as well referring to any day trading charts that you have available.

Compiling all of these different sources of information together can be time consuming but it is definitely worth it. It will give you a broader sense of what is happening in the market, and you will find that you are more prepared when the day trading session begins.

Don’t believe the hype

As mentioned earlier, not all sources of day trading information can be reliable, which begs the question…”who can I trust?”

There is no simple answer to this question, as in reality, this is something that can be learned only through experience.

As you start to consult from many different sources, you will start to get a better sense for who’s information is worthwhile to listen to, and who’s isn’t.

At the end of the day, you are the boss of your day trading empire, and it is your responsibility to find the sources of insider day trading information that can be successfully used in conjunction with your strategy to make consistent profits.

Be warned!

Tv news stations and internet feeds might not be the best source of day trading insider information. This is because they have a constant need to fill up air time and news slots, which means they often take even the most trivial news, and spin it to make it seem like it’s important.

What is the Average Income of a Day Trader

What is the Average Income of a Day Trader?

Are you an average Day Trader, or a pro?

This is the harsh cold reality folks: The majority of beginners to day trading never make any significant money, and almost always end up going bust in the end.

With this in mind, should you forget about your day trading dreams and go find something else to do?

Well, not quite, as there are a small percentage of firms and individuals out there who make big money from day trading. The key to making this big money is do the opposite of what the majority of other traders are doing, and follow a long term strategy that has been proven to be profitable.

Unfortunately, not many people do this, which is why they go bust and get frustrated.

So just what is the average income of a day trader? In fact, it’s actually impossible to really know. You see, there is such a large gap between successful day traders and unsuccessful day traders, that there is no way to really arrive at an average number.

But who needs to know what the average income of a day trader is anyway?

At the end of the day, you can make a lot of money working as a day trader, which is way into the 6 or 7 figure a year bracket. Plus, this can all be done from the comfort of your own home, where you are your own boss and in control of your financial destiny.

Day trading firms

Maybe the thought of working for yourself scares you, and you much prefer the security of a job? If that’s the case, then if you are good at day trading and can show real results, then you should have no problem in getting a job with a hedge fund or investment bank.

A recent survey in the USA suggested that an average day trader salary for junior employees at these kind of firms was approximately $200,000. However, this does not factor in things such as bonuses and other performance based rewards, so the real number is likely to be much higher.

Let’s put it this way…if you are a good day trader and working for yourself is not for you, then you can still make a well above average income in the world of day trading.

Fast and easy profits?

Perhaps you don’t care what the average income of a day trader is, and instead, you just want to make some fast and easy profits from the comfort of your computer? After all, day trading is a piece of cake…right?

Well, not quite. If this is your mindset then you will almost certainly end up frustrated and disappointed. Sure, you might hit it big right off the bat, with no real experience or knowledge, but you probably have a better chance of winning this weeks lottery.

In reality, you will most likely have to lose money first, as you gain experience and develop a winning day trading strategy. This doesn’t sound very appealing to the majority of newbie day traders, which is why they will never experience a big day trading income.

Day Trading - What “They” Don’t Want You to Know!

Day Trading – What “They” Don’t Want You to Know!

Most of the day trading advice out there is not worth listening to. The old saying “don’t take advice from broke people if you want to be rich” is more relevant than ever, in this internet age where anybody with a website can offer you their “expert” advice.

The truth of the matter is that only a small percentage of traders ever make any serious money. We are talking like 5% of people here. 95% just fight over the scraps or don’t make anything at all.

Elite traders have their secrets and they like to keep them close to their chest. If you want to be as successful as them, then you must learn their secrets.

Here are some of the secrets that “THEY” don’t want you to know…

Focus on one thing and screw the rest

Rich traders all have one thing in common…they become experts in one type of trading and then they put all of their focus on that.

Contrast this to the majority of traders. They typically try to learn everything about everything, and falsely believe that to make money requires being a jack of all trades. This approach rarely works though.

Sometimes, successful traders drill down even further. Instead of focusing on just one market, they go deeper and just focus on one currency pair. That’s it.

Don’t you think if you did this your chances of becoming more profitable would immediately increase? Specialized knowledge is key!

Patience will be rewarded

A lot of average traders trade just for the sake of it. They believe that “motion creates emotion” and that they must constantly be hustling.

This is the complete opposite of how millionaire day traders view things. In their world, patience is a virtue, and they understand that the rewards are far higher for those that are prepared to sit back and wait for the right conditions.

Once those conditions present themselves, they pounce, and watch their balance grow month after month.

Ask yourself, do you trade for the sake of trading? Do you often get involved in trades you really don’t know anything about? If so, then you might want to take a step back and spend some time watching the market instead of always being involved.

Go against the herd

This one is huge. The vast majority of people always look to what everybody else is doing… and then proceed to do the same thing.

Very rarely is mass opinion right, which is why successful traders often go against what the herd is doing. Just doing this and nothing else can be a profitable strategy in it’s own right.

Basically, the masses are almost always in reactive mode. This means they are always reacting to the market.

A better strategy is to always stay in control of your thoughts and to not just simply “react” to what is going on around you.

Trading against what everybody else is doing is one of the secrets that winning day traders like to KEEP a secret.

Guide to Building a Day Trading Empire

Guide to Building a Day Trading Empire

Despite what you may have heard, anybody can make money in the world of day trading. It doesn’t matter what your background is, how many grades you got in school, or how high your IQ is.

That’s not to say that you are guaranteed success however, as there are certain steps that you must take in order to increase the likelihood of making winning trades on a consistent basis.

Also, you don’t need any fancy high tech equipment, or an office in the financial district of a large city. In fact, you can easily build your day trading empire from the spare room in your house, all with an average computer and high speed internet access.

Thousands of people all around the world are doing exactly this, quietly getting rich by employing simple to understand strategies that could be taught to just about anybody.

Are you interested to find out more? If so, then here are some step by step instructions to get you on the right path to becoming a trading mogul.

Educate yourself

Before you even think about risking some money in the markets, it is important that you take the time to educate yourself first. That’s not to say you need to become an expert overnight, but you should spend some time familiarizing yourself with the basic phrases and how everything works, so you can get a better overall understanding as a whole.

A good way to do this is to go to a site like Amazon and then find a beginners book that is written in simple and easy to understand language. Also, check the reviews for the different books before you buy, to see what people are saying.

Open a broker account

Do some research on the internet to find an online day trading broker that is both reliable and experienced at dealing with new traders. It is important to understand that most brokers will charge a fee for every trade that you make through them, as well as taking a commission from any profit that you make.

Usually, these charges are not high, and only work out at a few dollars per transaction. It may seem quite a lot once you first start trading, but once you are bringing in the big bucks you will glad to give the broker their cut.

Teaming up with a broker can also help you through those first initial steps in your day trading career. They will have a team of staff on hand to answer any questions that you may have, as well as giving you access to range of online tutorials and software.

Keep your focus

Keep your focus

Once you are initiated into the trading world, and have got a little bit of experience under your belt, the next step is to narrow your focus onto one market.

The main reason why most people fail to make any money, is because they have no area of expertise. In other words, they try to become an expert at all of the markets, but end up only having a very basic knowledge in a any of them.

Learning about just one market will give you a serious advantage over the other traders, as you will gain a keen eye for opportunities that other people miss.

Try to focus on a market that you have an actual interest in, as you learn quicker when you enjoy what you do. Read as much as you can in relation to the market, and stay on top of all the current news and trends by reading financial publications and watching news stories.

Understand your limits

One of the biggest lessons that everybody must learn is to firmly understand where their limits are.

For example, many day traders take a big loss during the course of the day, and then spend the rest of that afternoon trading even more in order to make their money back. Trading in this way can be crippling to your balance, as you begin to trade on emotion, which leads to bad decisions.

Instead, set stop losses in every trade that you make, so you can get out once things start to go bad. Then, if you find yourself in a position where things are not going right for you that day, be prepared to walk away and take a break. You can always come back tomorrow and start again.

Act fast

Day trading is a business where mere seconds can be the difference between making or losing thousands of dollars.

For this reason, if you are ever going to be successful then you need to get into the habit of making decisions on the spot and acting fast. If you see an opportunity in the market, there usually isn’t the time to wait around for a few hours while you think about it for a bit. You have to become confident in your abilities, so you can make quick decisions on the spot.

As many people have found out, hesitating too much in crucial moments will severely hinder your chances of success, and in the end you will find it hard to make any substantial profit.

Conclusion

Day trading is a business with many rewards. It gives you the chance to quit your job, work at home, and gain the financial independence you have always wanted.

Not many people in the world can say they live this kind of lifestyle, so if you really want to make it work, then you should be prepared to invest the appropriate amount of time and energy into your business until you start to see positive gains.

Take the time to learn the business and you will be paid many times over. However, if you try to shortcut your way to success, you may find that your day trading account is empty after only a few months trading.

How to use Forex Day Trading Strategies to Profit!

How to use Forex Day Trading Strategies to Profit!

Are you looking to profit as quickly as possible in Forex day trading? If so, then you might have notions about making large sums of money overnight using some kind of push button Forex robot, or a secret strategy that almost nobody else knows about.

In reality, those type of things don’t really work. If you want to make money at Forex, then you better be prepared to put in some ground work and be in it for the long haul.

Not many people get rich overnight, only those that get lucky with the lottery. Using proven Forex day trading strategies is the best way to make consistent profits while trading in the currency markets.

Sure, they might not seem very sexy, and they even require that you put in some effort, but at the end of the day it will all be worth it.

Think about it for a second. Do you want to be your own boss so that you can work from the comfort of your own home, with the ability to set your own hours? If you do, then you should definitely read the rest of this article very carefully, as the following Forex day trading strategies is what everyday people just like you are using to create their dream lifestyles.

Simply choose the strategy that you feel most comfortable with and then stick with it. That’s the most important point, as you need to give any strategy time, so you can ultimately reap the long term profits.

Also, it’s important to understand that a good Forex day trading strategy is not the be all and end all. Sure, it’s a major factor, but there are other things you need to get right in order to become a well rounded day trader who makes consistent profits.

For example, working on controlling your emotions is a vital skill to have as a trader, because if you are always running on high emotion, then even the best Forex trading strategy in the world won’t help you.

There are many popular Forex day trading strategies that you can follow. For example, there is trend trading, range trading, breakout trading, swing trading, and news trading, to just name a few. If you search long enough, then you would come across many more.

Here is how to use a strategy to start making profits.

Choosing a strategy

The best way to choose a Forex day trading strategy is to find one that makes sense to you and also one that feels comfortable.

There is little advantage to choosing a strategy that you don’t really understand, as you will be spending the majority of your time trying to work it out!

 

Which brings us to a major point: find a Trading Strategy that is simple to use and implement. Anybody who tells you that trading Forex is complicated is lying, which is why you only need a simple strategy that focuses on basic elements to be successful.

Stick with it

When you choose one of the Forex day trading strategies to follow, it’s essential to stick with it for a certain amount of time.

It’s no good using it for a few days and then deciding the system doesn’t work. You need at least a month to give any strategy a fair roll of the dice, maybe even a few months.

Many beginners to the Forex markets get distracted much too easily, which can only be described as “shiny object syndrome.” The main problem with this is that they never stick with anything long enough to see positive results, which leads to them getting frustrated.

Paper trade

How to use Forex Day Trading Strategies to Profit!

If you are new to the world of day trading, and you still feel a bit uncomfortable with the thought of risking money, then you should consider testing out different strategies by way of paper trading.

This way, you get the benefits of seeing if a particular strategy is right for you, while not having the burden of putting any of your own money on the line.

Also, it’s been said that the best way to trade in the markets is with no emotional attachment at all, and what better way to learn how to do this than with zero money on the line.

In order to paper trade, you can get a demo account with one of the Forex brokers or software programs, or you can simply use a pen and paper to keep track of the trades that you make.

Make adjustments

Once you have followed a Forex day trading strategy for a certain amount of time, then you will basically come to a point where you have two options; either you can drop the strategy altogether, or you can make adjustments.

No strategy is perfect, and traders are constantly making tweaks and adjustments to make everything more efficient, and most importantly, more profitable. If you adopt this philosophy of constant adjustments, then your Forex income will continue to grow year after year.

Conclusion

If you read enough books and blogs, then you will probably come across hundreds of different Forex day trading strategies.

Ultimately, it’s not going to do you any favours to try and learn every single one, and instead it’s a much better idea to just stick with one strategy for a few months.

Also, it’s worth noting that you shouldn’t be afraid to adapt your own individual style to the Forex day trading strategy that you decide to follow. This is what all successful traders do over time as they gain experience, and what you will end up with is your own unique successful system that favours your strong points.

As mentioned previously, it’s important to spend time focusing on other areas away from your Forex day trading strategy. Things such as learning how to use software, controlling your emotions, and finding the right broker, are all equally important, and will have a major impact on the amount of money you end up making as a day trader.