Friday, December 14, 2007

Day Trade for Consistent Profits and Less Risk

Many articles advise traders to avoid day trading because it is dangerous and unprofitable. This is quite wrong.

Of course, if the trading is haphazard and done with no proper plan, a day trader will lose. A longer term trader will lose too, but the day trader will go down quicker.

On the other hand, if a day trader has a disciplined approach, then there are considerable benefits to this trading style.

A disciplined trader is one who trades a strategy with a positive Expectancy using a sound money management approach. Over-trading is avoided like the plague. If no trade is available, the disciplined day trader waits until tomorrow.

Advantages of this trading approach include excellent profitability, reduced market exposure, and minimum time commitment. Choose a market with plenty of daily volatility. There is no need to limit yourself to currencies or equities. Gold, oil, grains, bonds and equity indices are all suitable vehicles for the futures trader.

Consider the wheat market. Look at these