Online Stock Market Day Trading Services

Stock market, day trading stock, day trading stock broker etc. used to be some complicated terms just a few days ago. Well, lots of people want to get up to date knowledge on day trading system but most of them fail to get the required information due to lack of a credible day trading firm.

Wise men says that times keep on changing and in this process, the old is replaced by the new. When he stepped into the arena of stock trading, it has a determination to reshape the concept of stock trading and introduce something new in the industry. Today, the aspiration of Sogoinvest is transformed into achievements as thousands of people are enjoying the benefits of this online brokerage firm.

Day trading of stock market has undergone a sea change. Internet has changed the traditional concepts and brought some unique ideas that empower you to emerge as the winner in a stock day trading system. Now, the power is on your mouse pad. A few clicks of the mouse can make you the king of a day. The mouse has now become the gateway to all those tricks of the trade related to stock market day trading. The entry of some new companies has brought many a remarkable changes offering you the conveniences online day trading. How? Well, before we come to the answer we must consider a few things.

In the world in which we live, whenever a thing or concept related to trade appears as a more user-friendly innovative version, the whole industry decides to go on a money spinning spree by misleading the consumers. For example, a bank started discount online trading. It offered the customers a very unique service. Account holders were being offered free tradeswell, the bottom line also said that they were supposed to maintain a steady balance of $25000 in their accounts to avail this offer. Though the concept was unique but it was not for the people of all strata of society, because to maintain a balance of $25000 was not a cup of tea for everyone.

Whereas, Company cares for your needs, it understands you well, it aspires to be one among you. That's why it charges a nominal amount for signing up and you can enjoy all the advantages that this portal offers. We steps into the arena of stock market to offer affordable, user-friendly, and innovative services to you for online stock trading.

Users can enjoy the benefits of services offered for a fees as low as $1-$3. This had made life easy for them by enjoying the new concepts of stock trading. The professionals are not disturbed by the tall claims of these upcoming day trading brokerage firms. Rather they concentrate solely on day trading services and now it has emerged as the best day trading brokerage firm offering the best services within the reach of everyone.

We regards the customers as the best judge. Just log on to sogoinvest.com and find out what good this site has in store for you.
The winds of change come because people want a change. But, the other side of the coin says that sometimes a change occurs of its own and the people readily accept it to welcome a new era of progress and prosperity.

Back To Basics - 10 Day Trading Tips

Day trading stock online gives the thrill of the hunt from the convenience of an easy chair. While day trading can be intense and risky, it also holds potential for fast profits. The most successful day traders understand the process and are willing to commit the time necessary to monitor the markets for hours to catch the slightest favorable change. Day trading combines research and instinct with fearless action. If this sounds appealing, start with the 10 commandments for Day Trading Success.

1. Set limits on trading funds. Newcomers to day trading need to gain hands-on experience in the market. Since the potential for profit or loss is great, start with a reasonable limit of money that you can afford to lose without sacrificing the car payment.

2. Set limits on losses. Why ride a downturn hoping for a miracle upswing? As the old saying goes, know when to cut your loses.

3. Manage your expectations. Sure, day traders can hit the right time and double their money in a matter of minutes. They can lose just as fast. Day trading offers good profit making potential but does not come with a guarantee. Be satisfied with gradually increasing the value of your trades and avoid betting it all on one stock. Day trading is about risk taking not mindless gambling.

4. Determine a trading strategy. Day trading requires keeping up with trends and ranges but does so on a shorter timeline. Another useful approach is to focus on specific types of businesses or industries to develop expertise.

5. Trading is the means, not the end. Day trading is fast pace that occasionally needs to slow down. Trading repeatedly just to keep trading only makes money by generating fees for the online brokerage. Take your hand off the mouse and think before you click. Day traders might make 3 trades in a day or 12; it's not the number of trades but the result that counts.

6. Find the trends. Trend analysis shows changes that indicate an up or down move in stock prices. Since day trading is so active, you may choose to subscribe to trend reports rather than take time to develop charts.

7. Lose the emotion. The thrills and chills of day trading must be kept in check so that the buy/sell decisions are based on informed choices. If you lose, let it go. Dwelling on the loss only blunts decision making for the next trade. Put your emotions within a range, neither too high nor too low.

8. Block the fear. After tanking several times it's easy to start second-guessing your day trading decisions. Successful online traders have to rise above the fear of picking another loser and either work your trading strategy or make changes to improve it.

9. Ignore hype. No matter how much a stock is touted in the tip sheets, if it does not fit your day trading strategy then it's not right for you.

10. Look backward. Set a regular time to review past trades for profit or loss, application of trading strategy and information sources used. And be honest, was the trade based on tips, facts or emotion. You have to know what drives your day trading strategy to make it work for you.

Forex Day Trading Strategy- A Major Flaw Identified

It can be said that successful trading is the sum of two parts:

1. A solid and reliable Forex day trading strategy
2. A strict, disciplined mental attitude

Often the first part is undone by a failure in the second area. You may have a great Forex day trading strategy but time and again it can be neutralized by one major flaw in part two. What is it?

COMPULSION TO TRADE

Any trader who is enveloped with a compulsion to trade will soon undo any profits a reliable Forex day trading strategy can produce.

Exactly what does it mean?

Here is a typical scenario:

The day trader approaches the trading session with enthusiasm and optimism and goes through habitual preparation steps which may include:

• Consulting the daily calendar for upcoming economic reports
• Reviewing major news items from the financial markets
• Preparing charts by inserting pivot points, drawing trendlines, marking key support and resistance levels, using the Fibonacci tool
• Doing a multiple time frame analysis starting with the daily chart, then moving down to the 4 hour, 1 hour, and perhaps 15 minute charts

Now, as the new session opens and progresses market conditions are flat. Price is for the most part in consolidation.

A Typical Scenario

The trader starts getting bored, or a little frustrated. Hours pass, nothing happens. The desire to trade starts getting stronger and stronger until it reaches compulsion level.

Now the trader starts looking at the charts through different eyes. His reliable Forex day trading strategy now takes a secondary position in his mind and number one is the need to find a trade!

Result?

The trader enters a low probability trade, the market then picks up steam and goes in a direction the trader did not expect and takes out the stop. The first trade of the day has been a loser.

What happens next can have more serious repercussions. Unless the trader employs strict mental discipline, there is now an even greater feeling of compulsion to trade in order to get back what was just lost.

As the mind is now in free fall, the stable, reliable Forex day trading strategy that works well when employed in a calm, analytical manner, now is cast aside and the trader is in the grip of powerful emotions.

What has just been described is a major flaw in many aspiring traders.

The question is: Do you have the honesty to recognize it in yourself? Or are you in a state of denial reasoning that this doesn't happen to you.

You may be an exception! On the other hand, many traders will relate to the scenario just described.

What is the solution?

During the trading session there is a need to constantly monitor not only candlestick movements on the computer screen in front of you, but also your own mental state and emotional level.

Discipline yourself to recognize when COMPULSION TO TRADE is beginning to build up. Stop. Walk away from the computer. Read a good motivational article on Forex trading disciplines, and return with a fresh viewpoint to the trading station.

Employing this mental/emotional self-check whenever COMPULSION TO TRADE rears its ugly head will help ensure your stable, reliable Forex day trading strategy has chance to succeed!

Is Day Trading Stock A Good Choice For You?

Day trading stock can be a great way to make profits in today's market.
the concept is simple: You enter a stock position at or after the open of the day and you exit the same stock position at or before the close of the day.

Stock selection is important in day trading stock because the time frame in which you can profit is much shorter that in medium and long-term trading strategies.

Stocks that have a large range during the day are preferable. This simple logic is that the more a stock moves during the day the greater potential a trader has for profit during the day. Profits can be made day trading stock with smaller intraday ranges. Remember, thought the smaller the intraday range the more shares you must trade to make a profit.

Let's look at an example Stock A has an average intraday range of 5 points and Stock B has an average intraday range of 1 point. Assuming a perfect day trading stock execution in each stock you would have to trade 5 times as many shares of Stock B to equal the profit of of Stock A. Also consider that with the number of shares traded commissions costs will also rise.
Commissions costs will logically rise in some instances when day trading stock because the more frequently you trade the higher your commission costs will be. Obviously if you trade 10 times a day every day your commission costs will be higher than if you traded the same number of shares once per week.
One of the characteristics of day trading stock that traders like the most is that there is no overnight risk. When you close your positions for the day that's it. Your positions won't be affected by any bad news or earth-shattering events.

Many traders prefer this method of trading because they say it lets them sleep at night.
There is certainly something to be said about the value of stress-free trading.

Introduction to Day Trading

History of online day trading

The birth of day trading was made possible when the computerized, over-the-counter NASD became available in 1971. Day trading was pretty much the domain of stockbrokers and remained that way until the late 1990s, when the increasing popularity of the internet, motivated the international stock markets to move online. The consequence of this move was that day trading brokers became optional because anybody with Web access could execute their own trades, provided that they had an account with a registered online brokerage. The uptake was enormous, because by 1999, at least 25% of all trades made were done as online trading by individual investors. Day trading online grew in popularity as these investors started gaining online trading maturity. This growth found further impetus with the Dot Com Bubble as many traders could buy and sell the same share on the same day with three digit returns.

What is day trading?

The U.S. Senate Permanent Subcommittee on Investigations defines day trading as "Placing multiple buy and sell orders for securities and holding positions for a very short period of time, usually minutes or a few hours, but rarely longer than a day. Day traders seek profits in small increments from momentary fluctuations in stock prices after paying commissions." With day trading it is common to focus on short-term trading, where a trade could last for anything between a couple of seconds to a couple of hours. In day trading online, the number of trades made may vary from between just a few to a couple of hundred per day. It is also common to finish the day with a closed overnight position. This means that everything you bought gets sold, before market close. There are many different techniques or strategies that you can use in day trading. Some of the more common online trading systems include:

• Trend following
• Range trading
• Scalping
• Rebate Trading
• News Playing

One of the techniques that started surfacing in day trading is algorithmic trading. Algo, as it is commonly called, is favoured by hedge -, pension and mutual funds. It is estimated that 33% of all US and 40% of all UK trades during 2006 were made by algo traders. Algo trading is automated, meaning that the trader leaves it up to the computer to decide when to buy and sell. Day trading can either be done by institutions or by individuals. Individual day traders normally make use of direct trading firms that offer them direct, real-time electronic access to stock markets. For a day trader real-time access is important because it enables them to have a live' view of movements on the Securities Exchange of those stocks, stock options, currencies, futures contracts, interest rate futures and commodity futures that they are trading online.

What are the pros of day trading?

Self employment Day trading online offers you the potential to earn really good money and it goes without saying that you will enjoy flexibility in where and when you work.

Stimulation Trading online is both exhilarating and interesting. It requires analytical thinking and continually challenges your abilities. Every day is a new start stagnation is not possible at all!

What are the cons of day trading?

Financing In day trading you need money to make money and lots of it. Day trading penny stocks could be high risk, so you will probably need to play in the bigger leagues, or at least find a happy (and profitable) balance between the two. There are also regulatory requirements around the amount of money you need in your account. In the US for example, it is $25,000.

Latent loss potential You are pretty much at the mercy of economy figures, analyst comments, interest rates, and so forth. A single press release or a single comment could turn a profitable stock into a dead loss. This makes your income unpredictable. Day trading online can be highly profitable and produce rapid returns, in spite of being high risk. The risk is mainly due to margin use, and other day trading practices. Naturally, most risks can be managed if you remain prepared, alert and focussed. In example, when you start trading online, you will probably find that you have to exit a losing position very quickly, to prevent a loss. At the same time, you will need to move just as quickly to capitalise on any winning positions you may have. Day trading online can be a fun and even profitable adventure, provided that you have good discipline, -risk and -money management.

"The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught. What they can't do is give (people) the confidence to stick to those rules even when things are going bad." Richard Dennis, on Turtle Trading

FOREX Day Trading - The Dangers of Curve Fitting

In Forex day trading you see many systems that have fantastic track records in back testing, yet they can never match this performance in real time and the trader wipes out his equity.

The reason for this is the concept of curve fitting - if you don't understand its significance you will lose.

Many traders buy hypothetical track records, or devise their own by running their signals over past data and any track record in day trading is curve fitted.

Why?

Day trading by its very nature doesn't work.

You never get a real time track record of profits, so any track record has to be curve fitted to make a profit.

So what is curve fitting?

It means fitting the trading signals to the data ( you can of course do this on past data as you know the closing prices ) and making sure that the track record is profitable.

It's very similar to shooting at a barn door and then drawing a cirlce around each one, after the shots are fired to amek them all bulls eyes.

Of course bending the system to fit the data doesn't work and profitability is simply an illusion.

Examples of curve fitted systems are

Ones with lots of rules and parameters, or unique rules and parameters for different trading conditions, or contracts.

If you curve fit a system, be it in day trading or long term trend following, it will lose.

No reliable data

Day traders have to curve fit in hindsight to make a profit, as in real time volatility is random and its impossible to predict price direction.

To make money in any form of trading you need to play the odds and you can't do that in day trading.

When you buy one of those enticing day trading systems offering you 100% profits or 70% success rates ask for the real time track record and you won't get one.

The one presented to you is hypothetical and done knowing the closing prices and has been curve fitted.

Try and trade any day trading system from a vendor in real time and you can kiss goodbye to your account equity. Don't fall for the hype of day trading systems see the reality, which is a sure fire way to lose all your money quickly.

Forex Day Trading - An Overview

Day trading is defined as the buying and selling of a commodity within one day. The forex market is where people trade foreign currencies for profit.

Forex day traders are the elite of forex trading. They are usually the most educated in market movements and they are usually trading in significant amounts of money. They work at forex trading everyday, all day. Their benefit to the market is enormous, as they add that essential liquidity value. In other words, without day traders, it might be hard for the more casual, longer term holder, to find buyers at the moment they are needed.

But forex trading is not for the faint of heart anyway. First of all, you must have a thorough knowledge of the forex market and all its complexities. Remember, you're competing with professionals who spend nearly all their waking hours analyzing and executing trades. Your knowledge level must be equal to theirs. Don't be fooled by systems being sold that promise you enormous returns for a small investment in the book du jour. There is no get rich quick scheme hiding in those pages! You need to understand it all perfectly in order to succeed.

Secondly, you need a large amount of capital. Forex day traders are often institutional buyers. They can command large sums of money on a daily basis. With a small investment, you just don't stand that much of a chance of big returns. The old saying, it takes money to make money, is very true when it comes to any forex trading. Large market swings in any 24-hour period are highly unusual, so large profits only come from large investments. If you go into the forex day trading market with your sights set on a fortune, you need to know that you're much more likely to lose your shirt. As with all investments, you need to make sure that the amount you invest is what you can afford to lose. Money can accrue on a small-balance account, but the process is a slow one. You still need the knowledge and safety measures that a good forex broker can provide.

Thirdly, you need a plan. As you read the books and study the process, you will undoubtedly run into some systems that can be used successfully. In addition, you'll come up with your own guidelines as you gain experience with trades, either real or in demo accounts. Some of the popular systems being used successfully and have proven histories are called swing trading, trading news and arbitrage.

The popularity of forex trading and especially day trading, has been rapid. This has raised some controversy. There are some who will steer you away from forex day trading at all costs. Others say that day trading is the only way to make a substantial income in the forex trading markets. Two things are certain: 1) Beginners/amateurs would be best off leaving the forex day trading market to the professionals and 2) Day traders provide the liquidity the forex needs to exist.

Be careful, become educated, or get professional advice before embarking on a forex day trading strategy.

Can You Really Make Money Day Trading Futures?

Can you really make money day trading futures? The answer, of course, is yes. The answer is only yes, if you know what to do and then you take action upon what you know.

Making money day trading futures is like making money trading in any financial market. It all starts with having a plan, and then executing the plan to the letter in order to make profits.

I believe what throws many people off when it comes to day trading futures is the fact that some are unfamiliar with futures contracts and their characteristics. This, of course, should not deter one from exploring the possibilities of profits in day trading futures. The fact of the matter is that you don't need to know every possible thing about every possible futures contract in order to make profits in trading futures.

Many futures contracts happen to be excellent vehicles for day trading. Again, it is not imperative that you understand everything about every futures contract in order to profit in day trading futures. I'll give you an example. What if everyone had to know the intricacies of the internal combustion engine before they drove a car? If that were actually the case then very few people would drive... yet there are millions of people driving cars every day. I only say this to illustrate the fact that you need to know a certain number of basic things in order to trade in any market successfully. A simplified list of those basic things would be as follows, when to get in, when to get out, and when to stand aside.

It is true that the above list may seem overly simplified. You will of course need some method to determine when to take the steps above in order to be successful. Your method will have to be one which is repeatable, therefore it will require some research on your part.

You'll need a day trading strategy in order to day trade futures successfully. You have the choice of either developing your own day trading strategy or looking for a commercially available day trading strategy. In any case, you will want to do your homework and due diligence, because in order to make money day trading futures your day trading strategy must be a good one. And remember that your level of discipline in following your day trading strategy is at least as important as the day trading strategy itself.

Swing Trading Vs Day Trading

Be honest, now. Back in '99 when seemingly every waiter and grocery-store clerk had a stock portfolio, did you get rich day trading? Back in those good old days there was plenty of talk about making money day trading, but how many people do you know who actually accomplished it? One look at a 10 year Nasdaq chart leaves no doubt that some people did get rich on the way upand a few of them probably had the good sense to get out before it was too late. But most people 'played' the marketand lostthrough mindless buying of mutual funds, and by accepting worthless corporate stock options in lieu of actual pay.

Fast forward to 2007. The Dow is at its historic high and the Nasdaq is roaring back to life. It doesn't take a genius to realize that now is the time to think about trading again. But truth be told, most people will not take the initiative to make their own trading decisions. Most people will get burned all over again.

To really profit from the coming bull market you must commit yourself to making your own trading decisions. Don't trust your broker, your boss, or your brother-in-law. Only by assuming responsibility for your financial future can you expect to achieve success; nobody is in a hurry to do it for you.

Most people who do decide to trade on their own hook will naturally think of day trading. And you can bet when the bull market takes off plenty of pundits and gurus will be urging you to day trade. But for most people day trading isn't a viable option, either because they can't afford to sit in front of a computer screen all day, or because they have enough common sense to realize day trading is a lethal game. So how can you profitably trade?

The answer for many people is swing trading. Swing trading is the practice of holding stock positions (long or short) for a few days to a few weeks. You don't need to sit in front of your computer all day with your finger on the panic button, and you don't have to play cat and mouse with market makers looking to hang your scalp on their wall. The typical moves made by a stock during a swing play will dwarf the tweenies that day traders salivate over, and with sensible use of stop orders you won't need to lose sleep at night fretting about the risk.

Day trading is a little like the World Series of Poker. Do you think you could sit down with Greg Raymer or Chris Moneymaker and beat them at a hand of No Limit Texas Hold 'em? When you day trade you're taking the same chance. The people on the other side of your trades are professional market makers. What the stock will do in the next day, week or year may be beyond the control of any one person, but what happens in the next 15 seconds depends entirely on the decisions of individual traders. Your loss is their immediate gain, and these guys (and gals) have been doing this for a long time. Even the most perfectly formed setup quickly turns into a sucker-play because these professionals know the newbies will take the bait. In the world of day trading, the losers get their hat handed to them in short order.

With swing trading you get the same fair chance as everyone else, institutional traders and individuals alike. As long as you trade stocks with a reasonable amount of volume, you can rest assured that no one trader, or even a group working in unison (which would be illegal, to boot) has the resources to bully the market. Setting your stop 5% below your entry point virtually guarantees that you won't get scalped (it doesn't guarantee the stock won't move 5% against you, but if it does it won't be because one trader decided to scalp you). And the profit potential for a well played swing trade could be 10% in a few days, or maybe 20-30% in a few weeks. Of course, it takes knowledge and experience to identify the right trades, but your chances of success are just as good as any Wall Street trader if you're willing to take the time to 'plan your trade and trade your plan.'

Truly outstanding bull markets only come along a few times in a lifetime. Swing trading gives you a realistic chance of profiting from those great bull markets. You already missed the last one in '99. Don't miss out on this chance. Now is the time to start studying up on swing trading so you'll be ready.

Stock Picks 101 - Day Trading Versus Swing Trading

When you trade stock picks for any length of time you learn very thoroughly that there's no such thing as a free lunch. In other words, you are always making trade-offs. What are the trade-offs between day trading and swing trading?

For one thing, in day trading, you close your positions at the end of the day, whereas swing trades usually take a few days to complete. When you day trade, because there is no overnight risk, there is a greater potential for profit. Additionally, when you close your position at the end of the day, you can use higher leverage. This means you can make your money work harder for you.

So, what is the down side of day trading stock picks? For one thing, by the nature of the short duration of the trade, you need to pay attention to your positions continuously. This also means you can only manage a very small number of positions. For many people, this means just one position at a time.

This means you need to concentrate on and pay attention to your position the whole day. However, by far the biggest danger in day trading is that you have very little time to react if the position starts to go against you.

Assuming you have the margin to hold positions overnight, you must be ruthless at getting out of losing positions. Day trading margin can be up to 4 to 1, but overnight it can only be up to 2 to 1.

Of course, you never want to go right up against your margin limit. If you do, and the trade goes against you, the brokerage will either force liquidation of the position, or worse, give you a margin call.

So, what are the advantages of swing trading? You have more leeway about how carefully you watch your position when you swing trade. Also, you have a bit of time if the position should start to go against you. Finally, you can handle more positions because you don't have to pay such acute attention to each one.

The danger of swing trading is that if the position does go against you, you may end up with a position trade. Be careful to not let this happen to you because in doing so you'll eat up valuable margin. Speaking of margin, as previously mentioned, swing trades don't let you work your money as hard because of overnight margin requirements.

Ultimately, whether you choose to swing trade or day trade will depend on where you can be the most successful. Usually you can tell because you will enjoy or develop an affinity for one or the other. Either way, remember that the purpose of trading is to maximize profit at minimum risk.

Day Trading For A Living

Every person that is considering trading in the stock market considers day trading. It is inherent to the game of investing to want to play with the Big Boys by day trading. It can be an expensive game to learn, and for some people, it will forever be a losing game.

Part of the problem with day trading, is getting information soon enough to make a decision. Another problem, is trying to scalp small percentage points like you see the analysts on TV doing. If you have a big enough bank account, and have access to really fast equipment, you might be able to pull this one off. My recommendation, leave it for the big boys who pay the big bucks to have a seat on the board of trade, as a small investor, you are never going to beat them at their game.

However, the biggest single problem facing a novice day trader is simply pulling the trigger. Most novice traders suffer from paralysis of analysis, they are trying to find the perfect time to get in or get out. There is no perfect time, you just have to make the best you can with what you got.

One of the saddest things that can happen, is for a trader to know deep in his heart that a trade has gone bad, but doesn't want to take the loss. He will sit there, holding a losing trade, knowing he should sell, but he just can't force himself to take the loss. Until he sells, it is just a paper loss, not a real loss, and the trade may turn around. When he sells, it becomes a permanent, real loss. However, while he is hesitating, his position is losing ground and when trading options, they can end up completely worthless.

This is where having a good mechanical trading system will come in handy; it helps to eliminate the emotion from trading. A good mechanical system will have a set point to enter the trade, and a set point to exit the trade. As long as the trader remembers, and uses, the rules of his system, the odds of winning on a trade greatly increase. More importantly, the odds of having a devastating loss are greatly decreased.

To find what trading system works best for you, use paper trading until you completely understand what the rules are, where you should enter the trade, where you should exit the trade. Learn where to place the trailing stops to minimize loses. Don't be afraid that the time spent paper trading is time lost in the market. One thing you can be assured of, there will always be another trade coming along.

Commodity Futures Day Trading The S&P 500 and E-Mini - Observations - PART 2

Not all conventional commodity trading folklore is correct. Some is and some isn't. Much is anecdotal. Most of it is designed to make you feel comfortable in a trade. Feeling "comfortable" is the fastest way to the poorhouse in commodity trading. We are paid to provide liquidity and take on risk. Read on to see if you adhere to this basic and important market law.

More S&P 500 and E-Mini Futures Contract Observations: PART 2

"The one minute e-mini futures chart will sometimes magically touch or spike the outer band channel."

When you set up a pair of moving upper and lower price bands to contain e-mini price action, set them so the price breaks out of the band only on climax tops or bottoms. It’s amazing how well this signal works. It appears that when an e-mini climax takes place, all the cycles are in synchronization and burn themselves out at the same time. This united power spikes out of the normal band boundaries. Since most of the cycles are rolling over after the climax, this backing off can be quick for a few bars and leaves the spike area isolated like an island top.

Next, the e-mini futures market may erode slowly down like a normal bull correction, fooling the majority. This is a situation when a quiet decline is NOT bullish, but bearish. Know the difference. Price may anemically try for the top again, but usually fails. This is where the real decline starts. As usual, selling the first and exact high is a mistake. Wait for the secondary try while you are looking at other indications of failure.

This is one of the few times the e-mini futures market is kind. It actually rewards you for getting in later than the traders who have the nerve to sell the first panic high. But if you are a big gun, the first panic gives you the liquidity needed to put on a big line. The contract volume at these spikes can sometimes be tremendous.

Observation:

"If trading against the A-D line, have good reasons and always take quick profits. This will usually occur on the downside, only."

Over time, e-mini futures trades against the A-D line are losers when viewed with long-term probability eyes. The time it works is when the e-mini market makes a daily reversal. These reversals occur maybe every 3-5 days. So, if you are always looking for them, you will make only about one out of twenty trades with the trend.

These are poor odds, for sure. Even if you catch a big reversal, the chances that you will hold on for the big move are slim. This is because big e-mini moves require lots of time to put in a top or bottom, sometimes even spiking the first panic pivot point a few times. The market doesn’t pin medals on the heroes who catch the exact top.

I’m not sure why so many of us get lured into selling a day that is a one-way up market and buying big bear days. I think we want to outsmart the market and be proud if we catch a “major” top. But, to be more humble and simply buy dips and sell rallies with the main trend is the way to make money over the long haul. It appears that if you MUST trade against the A-D line, then do it on the short side because of the fast corrective declines in a normal e-mini bull market.

Buying when anticipating a bear rally can be quick affair too. But when the market turns back down, the move is usually fast and it’s easy to give back what little profit you made scalping.

Part Three of Five Parts - Next!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

FOREX Day Trading - Brokers Love Day Traders For One Reason

FOREX Day traders are loved by brokers these are the traders they simply want more than any other type of trader.

FOREX day traders are wary of brokers, because they think they pick their stops off and that's why they love them but the real reason is:

Day traders are guaranteed to lose their money without any help from a broker. I used to work in the back office of a broker and we factored them in as losing straight away and a big fat profit for us.

So here are the reasons we loved them and other brokers do to:

1. Day trading by its very nature doesn't work

Trying to trade in short time spans of a few hours or a day and to try and measure where prices are going is ridiculous.

All short term volatility is random and prices can and do, go anywhere.

We traded several thousand day traders and not one made money, they all lost.

The logic FOREX day trading is based upon is totally flawed.

Try this simple test:

Ask any vendor selling a system on the net and ask for a real time track record and see if you get one You won't.

Many of them are simply writers or failed brokers.

They make up track records sell them and then do a deal with a broker for a kick back commission and believe me the commission is good we paid out tens of thousands every month!

2 Great commission

Day trading is the best commission to equity you can get and for a broker that's great.

Lots of trades, eroding account equity to zero and paying commission every day.

Much better than a trader coming in and blowing his equity in a couple of trades.

Market makers are equally happy.

As they want the traders deposit lost and on their book.

They are trading against the client and don't need to worry it will soon be in the bank. Furthermore, as day traders never make any big profits (running profits is totally alien to them)

The risk of carrying a day trader on your own book as a broker is low.

DO BROKERS HUNT STOPS?

The answer is no.

Day traders believe this, but the real reason is they set their stops to close.

Support and resistance are meaningless in day sessions and that's why stops get hit all the time.

Its not the brokers fault, it's the day traders for being stupid and placing his stops in meaningless time frames where volatility is random.

There you have it.

The reason brokers love day traders is their great money earners for the house and guaranteed to lose as well, which is perfect for market makers.

A Tale Of Two Traders - Which One Do You Want To Be?

Today, let's talk about a tale of two traders. Let's assume that both have been trading for the same period of time. Both have the same starting capital, same trading dome, same market, and both are using the exact same trading system with precise entries and exits. We are going to leave the traders to trade for the next 60 days and see what results they have come with. Would you be surprised to find that one trader would have a 20% return and the other would have a loss of 40% during that same period. I am fascinated by the fact that two people, given the same opportunities to make money, can get very different results.

I think that the answer to success (be it at trading or at life) lies within each of us and that we are completely responsible for our own results in trading (or in life). Too often, we blame our trading results on outside events, circumstances, or other traders. The typical excuses would be: the "market" was against me, the big players were out to get me, they knew exactly where I had my stop, etc.

Not to long ago, I read a book that discussed how, to a certain extent, your trading discipline was a matter of integrity. Not exactly the kind of integrity that you would normally associate with that term. More importantly, this integrity has to do with how you adhere to your specific trading rules. This integrity has to do with: Are you being honest with the commitment you have to trading your trading rules?. Do you move your stop if a trade is going against you? Do you justify moving your stops because you think a trade that you are in is going to make money? Have you moved your limit order (to take profits) because you "have a feeling" that the market is going to continue to move in your direction? All of these actions would violate your commitment to your rules and thus violate your integrity.

Once you have a strict set of trading rules, one of the most important things that you can do is follow those rules to the letter. For me, using the "integrity" analogy helps me to look at a trade and say, "Is this a trade that fits all of my trade criteria? Can I follow my trading criteria to the letter on this trade?" If all criteria are met for the trade, then I take the trade and set my stop and limit orders. Then the hard part comes into play. If I am up a little, my natural tendency is to start to move my stop up. But that's not a part of my trading strategy. My strategy says, "If my trade is up 1.50 points, I can move my stop to break even." Not a tick before. If I were to move my stop before then, I would be violating not only my integrity, but also my trade rules.

I realize that I spend a great deal of time going over the mundane topic of trading psychology. The reason is it has been my experience that the mindset of a trader can determine to a great degree the profitability of a trader. Take a look at my beginning comparison of the "Tale Of Two Traders". My question to you is this? Which trader would you rather be? Work hard at following you trading rules. Set objective and realistic goals and... Catch a Whopper.

Day Trading Systems Consider This Question Before You Buy One!

You will see day trading systems all over the net promising you huge gains but consider this key question before you buy one:

If the system makes such great gains, why does the vendor sell it for a few hundred dollars?

Of course, the answer is:

Because it doesn't make money and the vendor is not stupid enough to trade it, when he can sell it to novice traders who are taken in by hyped up sales copy.

Day trading systems DONT work longer term and its one of the stupidest ways to trade online forex markets.

Don't believe me?

Then ask any vendor selling a day trading system for a real time track record and see if you get one (let me know if you do)

What you will get is a hypothetical track record of great gains, but what use is this?

Hypothetical means it was done by the vendor knowing the closing prices, not risking real money!

Now if we al know tomorrows closing price today we would all be millionaires, but that's not the reality of trading.

So why doesn't day trading work?

1. Volatility in any daily or hourly period is random.

The period is to short and support and resistance levels are meaningless, so you cant trade of them You may as well flip a coin.

So what happens?

Day traders constantly get stopped out and accumulate small losses as volatility can take prices anywhere in a daily period.

Do day traders ever win?

Occasionally they get lucky and win.

When they do they get obsessed with scalping a few points profit, or getting out at the end of the day, so they can never run profits to cover their huge amount of losses.

What happens they get wiped out longer term.

There is no better way to lose your money than day trading!
Most day trading system vendors are:

Failed brokers, writers or salesmen and make their money from selling systems.

Of course they don't trade themselves, as they don't trust their systems to make money and would rather have the guaranteed income from selling the system it's a lot less risky than trading it!

Day trading is a mugs game don't fall for the hype look at the facts.

FOREX Scalping - Day Trading Your Way To a Regular Income

There are many day traders who go in for FOREX scalping trading several times a day and trying to get out with small profits which will add up over time.

This form of hit and run trading is more popular than ever.

Let's look at how it works.

Well firstly, it doesn't work at all and will doom your trading to failure Any trader who day trades or tries to scalp profits loses PERIOD.

Here we will explain why.

Data is meaningless.

If you are studying charts you need to get the odds in your favour.

This is of course not possible in day trading as all volatility is random and prices can and do go anywhere.

This is obvious when you have millions of people trading trillions of dollars daily.

If you don't have data that can help you get the odds in your favour then it is pointless applying any technical indicator.

Moving averages, support and resistance and pivot points which are useful tools for longer term trading simply don't work in day trading.

There only good tools if you feed them with the right data! And day trading doesn't do that.

Scalping the market is doomed to failure and it's made even worse by the fact it ignores the fundamental rule of investing:

Run your profits to cover your inevitable losses.

You are going to have losses even the top traders have them, but you must keep them small and day trading or scalping FOREX markets does this and it of course has a lot of them!

FOREX scalping by its very nature doesn't run profits.

So what do you end up with?

A lot of small profits ( and when your lucky enough to have a winner and it is down to luck) then you get a minor profits which can NEVER cover your losses.

FOREX scalping end up not with the trader scalping regular profits but the trader getting scalped for his entire equity.

FOREX scalping is illogical, based on meaningless data and doomed to failure.

If you want to trade avoid day trading unless of course you want to lose all your equity quickly.

FOREX Day Trading - The Myth & Reality of FOREX Day Trading

FOREX day trading is more popular than ever and online you can get a huge amount of e-books and FOREX day trading systems, which promise you regular income and huge capital gains.
Here we will look at how to separate out the myth and see the reality in relation to day trading and how to win in the markets.

Myth Day Traders Have Profitable Real Time Track Records

Reality

FOREX day traders don't make money and the proof is that of all the e-books and systems for sale, you never see a real track record of real profits made in the market over the longer term.
What you do get is a hypothetical track record, but these are not worth the paper their written on.

Why?

Quite simply because their devised in hindsight - knowing the closing prices.
Well, if we all knew tomorrow's prices today we would all be millionaires!
Hypothetical track records are simply made up and have no bearing on how successful you will be trading the system.

Myth Day traders trade their own systems

Reality

Most FOREX day trading systems are sold by failed brokers, or marketing people who have the sense not to trade the system themselves.
They don't need to, as they make money anyway.
They can simply rely on writing some marketing copy to appeal to the greed of investors, then sell them the system.
They get their fee and the FOREX trader gets the loses fair deal for them!

Myth You can predict short term volatility

Reality

This is of course why day trading does not work.
Trillions of dollars are traded each day by millions of participants and to say you can predict where prices will go in a matter of hours is laughable.
The only people who take notice of support and resistance are losing day traders.
Volatility can and does, take prices anywhere in a day and levels of resistance and support are constantly broken handing day traders loses.

Myth Day trading restricts losses and runs profits

Reality

As day traders work with meaningless data they can't win of course but many think that day trading restricts risk, but it actually creates it.
Losses are small, as they are near daily support or resistance ( which get broken frequently as the data is meaningless) which simply ensures they get stopped out with a loss albeit a small one.
Running profits?

Forget this with day trading!

They are looking to scalp a few ticks or close positions out quickly.
The result is they can never run profits to cover the huge amount of small losses they get.
The biggest myth of currency trading is that day traders make money they don't.
They lose and system sellers laugh all the way to the bank.

The proof of the above is:

If you ever ask a day trader for a long term track record of real profits Try it and see if you get one.

If you want FOREX education avoid day trading and learn FOREX Trading methods that actually give you a chance of winning.
Day trading is simply one of the best ways to lose your money in online FOREX trading, so don't fall for the myth understand the reality.

Day Trading Systems - How to Make Big Consistent Profits

How do you pick a day treading system that makes big consistent profits and look at day trading systems that can help you win.

So, how can you pick the best day trading system to help you make big consistent profits?

Let's find out.

The hype

On the Internet there are a huge number of systems sold in day trading and they sound great earn 70% profits, scalp 10 -20 pips everyday etc and all for a few hundred dollars or less!

So what makes a great day trading system?

Well the answer is:

Nothing Because the logic of day trading does not work PERIOD

Don't believe me?

Then consider the following:

1. Have you ever seen a day trading system publish a track record of real profits that's made in the market NOT a hypothetical simulation?

No neither have I.

Ask any vendor selling a system for a real time track record over the longer term and you won't get one.

How day trading system vendors make their money then?

These vendors are not stupid enough to trade the system themselves! They sell them, despite the fact the logic does not work and can never work.

They will take you money for the system so they win, then you trade it and lose, that's simply the way it is.

So why can't you win at day trading?

Its common sense really:

Volatility in daily and hourly frames is random.

Using daily ranges, support, resistance pivot points, or any other technical tool is a complete waste of time, as prices can go anywhere in a day and do.

The only people who look at daily ranges and consider them significant are day traders and their a very small losing minority of the millions of traders in the market.

Don't fall for the hype of day trading.

It's a fact that day trading system vendors don't produce real time track records as they are sensible enough not to trade their systems.

They know they lose money.

So why not write some great copy and make up a simulated hypothetical track record and make some money selling the system instead?

People who believe day trading works are either:

Stupid, naive or both.

Don't fall into the trap of thinking day trading will make you money it wont and if you don't believe me ask for the proof of a real time track record of long term gains before you buy,

Day Trading Systems Try Using One and LOSE Your Money Quickly

Perhaps the biggest myth of FOREX Trading is you can make money with day trading systems.

Day trading systems make money only for the people selling them and the investors who use them, simply lose their money and lose it quickly.

If you want to know why read on.

The Logic

Day trading logic is based around the fact that you can make money by predicting where prices will go in a day, or even a few hours.

The reality is:

All short term volatility is random, which is of course common sense to everyone but day traders.

Think about it:

You have trillions of dollars traded each day, by millions of participants all with different investment objectives.

The major groups can be summarized as follows:

Central Banks Trading at key levels to push currencies up or down.

Large speculators Looking to make money for themselves or for their clients.

Hedgers Interested in offsetting risk.

Small speculators Everyone else, who does not fall into the above groups.

How many of these pay attention to daily levels or ranges?

A tiny minority of losing day traders.

As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

So why do people buy these day trading systems?

Basically, because they have good sales copy and appeal to the greed of investors.

The only people who win are the vendors selling the system and they are of course not stupid enough to trade it themselves.

Don't believe me?

Then ask for a track record of profits made over the longer term by vendors trading the system and you won't get one.

What you will get is:

Maybe, some testimonials from friends or people who have had a lucky trade, or the favourite of day traders:

The Hypothetical track record.

This of course shows great profits, but there is a major problem:

A simulated hypothetical track record is done knowing the closing prices and is constructed in hindsight.

Let's see, if I knew tomorrow's closing price today could I make a profit?

Umm hard question, think I might be a multi millionaire!

The myth that day trading systems make money is one that novice traders fall for all the time don't make the same mistake.

Day Trading Forex Currency

Just a few years ago, forex trading was reserved for professional traders, financial institutions and the banking industry. The United States government passed a law some seven years ago, and the forex market is now open to small investors as well. With todays technology, average people with personal computers and internet connections, trading forex online has become a booming online business. A small investor can now sit in the comfort of his or her home and trade forex at any time.

Forex currency day trading is a technical term used to describe a trade, buying or selling, that is completed within the same day. The implication is that all trading activity, is done within the span of a calendar day and no stock of forex is retained over night. Earlier a preserve of the wealthy and influential, day trading is now open to the average investor as well. The most well kept secret of the business, forex day trading endows the forex trader with a great deal of buying capability. As long as the trades are completed in a single calendar day, the forex traders have access to investments about 200 times the amount that they actually own. For example, a trader can use $50 of their own to handle an investment of around $10,000 and $100 to make an investment of $20,000.

There are individuals whose sole profession and expertise is in day trading forex currency. These professionals are mainly of two types day traders who work for themselves and day traders who are employed with large financial institutions. Most of todays professional forex day traders work for financial institutions, such as banks, that provide a high level of job security and the ability to access a huge amount of financial resources and knowledge. Large financial institutions expend a lot of resources to make sure that day traders have everything they need to make a successful trade, implying just how lucrative this market can be.

Professional forex day traders who operate independently manage their clients portfolios, as well as their own by trying to assure they have access to the most accurate information and the best connections in the market. A large sum is required for backing up the deals that are made, cutting edge software for research and analytics, and connection to a dealer are the basic requirements for the business of day trading at the pro level. Most small investors in this market, including small time day traders, do not have the financial capability for these types of resources and cannot directly compete with the pros. However, the potential for success still exists in day trading.

There are many online and offline sources of information on forex day trading and the best forex trading strategies to use in this type of trade. Tools such as forex trading software simulation and education are widely accessible online and allow anyone to learn this business the right way. One simply needs to spend some time learning the ropes of day trading, since this is how any successful forex trader really operates. Once people gain some experience, they set up small home businesses of their own to supplement their income and enable them to make larger trades with their client's investment amounts.

Forex Day Trading Training Tips For Forex Traders Wanting To Win More

There are many Forex day trading training tips that will help Forex day traders of any level secure more winning trades and more Forex profits. This article will discuss some Forex day trading training tips that the professional Forex traders use to generate more Forex winning trades than losses. Keep reading to get access to a $100,000.00 simulated trading account.

Forex Day Trading Training Tip 1: Don't second guess your indicators. You must believe in them and what they are telling you at all times. Be brave enough to listen to them and analyze the clues that they are giving you.

Forex Day Trading Training Tip 2: Don't listen to anyone else about Forex day trading unless they are proven to be successful Forex day traders. The bottom line is it's your money, not anyone else's. You have no obligation to listen to anyone else.

Forex Day Trading Training Tip 3: Stay positive at all times and focus on your Forex day trading success whenever you trade. Understand right now that you will make mistakes, I guarantee it. Everyone has and everyone will and anyone who tells you they've never made a mistake is lying! The important thing is always to accept you've made a mistake, analyze it and immediately move on from it and learn from it.

Forex Day Trading Training Tip 4: Remember at all times that generally speaking, currencies always trade well. Always look for clues, for VERY convincing evidence that price has made up its mind and follow its lead.

Forex Day Trading Training Tip 5: As the saying goes, practice makes perfect and nowhere is that more obvious than on the Forex trading platform. Practice, practice, practice, and continue your Forex trading education constantly forever. You can never know too much.

Forex Day Trading Training Tip 6: Never ever take trades in between pivot points. That area is dead man's land and MUST be avoided at all costs. There's no need to ever go there. There are enough clues and signals to avoid the area indefinitely.

Forex Day Trading Training Tip 7: Don't be scared away from the Forex market because you think it's too risky. The Forex market is the most financial liquid market in the world - how does $1.5 TRILLION every day in the US sound?

Forex Day Trading Training Tip 8: Always keep a look out for combinations of patterns as well as obvious price patterns.

Forex Day Trading Training Tip 9: You must always follow the price's lead as it always determines which set of pivot points it will work with.

Forex Day Trading Training Tip 10: You don't have to be greedy. If you want to exit with some profits then do so.

I have discussed some essentials and fundamentals of

Commodity Futures Day Trading The S&P 500 and E-Mini - Observations - PART 5

Not all conventional commodity trading folklore is correct. Some is and some isn't. Much is anecdotal. Most of it is designed to make you feel comfortable in a trade. Feeling "comfortable" is the fastest way to the poorhouse in commodity trading. We are paid to provide liquidity and take on risk. Read on to see if you adhere to this basic and important market law.

More S&P 500 and E-Mini Futures Contract Observations: PART 5

"Don't get use to big swings or chops, bear or bull trends. Expect anything, anytime.

Yes, keep a clear, open mind every day you trade. Come into the new day with no biases or expectations. Your mind should be a clean slate. Otherwise you are peering through colored glasses based on old information. In addition, all of us have a tendency to expect what happened previously.

We love to fit the world into rigid, repeating patterns. That's how the brain is wired. Expectations can put us in a rut if the e-mini futures market has been in a long, repetitive chop that we've been trading successfully. The first time the market breaks out and starts trending, many of us will keep bucking the trend and give back much of our profits. Be flexible and expect nothing at all.

There's nothing like studying what's happening right now to get an edge on the futures traders who trade remotely. By remotely I mean the day-traders who figure out their buy and sell pivot points the night before - where to enter and exit, etc. without regard to current action. They calculate e-mini retracements, support and resistance points from the past and then put in resting orders based on an end-of-day system. But I feel getting current, live and changing information RIGHT NOW can greatly enhance this EOD method. (end-of-day price data)

Observation:

"Once e-mini futures break above an important point, consider it strong and a buy on a test back down to this point. The market might take its time and make a double bottom to scare the sheep. But usually expect a fast turn-around spike and rally scenario. This is likely if the A-D line is neutral or slightly bullish. Sometimes a too-bullish A-D line with a big run-up is exhaustion and time for a turn. It's the same thing for big negative A-D line openings with a gap. Look for a big rally after a series of e-mini bottoms and heavy futures contracts buying.
Nuff said.

Observation:

"Use the line tool to check the A-D line histogram to see if A-D is improving while the price is lower than yesterday, etc. This is a non-confirmation."

Since the general stock advance-decline line is an important trend indicator, you might as well use trend lines and other tools to look for confirmations and non-confirmations. An A-D line that has drastically changed from one day to the next is usually a major indication of a turning point lasting at least for the full trading day, and possibly longer. More commodity S&P 500 and e-mini futures contract articles soon!

Good Trading!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

A Novel, New Way to Improve Your Trading Today!

The process of learning is an individual thing. Some of us prefer to figure things out alone, while others need the support and interactivity of others to learn. The way you learn becomes a factor in your progress as well. Some of us learn best visually, others by hearing or auditory means, still others through doing and repetition. Me? I pretty much have to do all three. I learn best what I can see, hear, AND do whatever it is I'm supposed to be learning. How does your learning affect how your trading is improving?

If you've been learning to trade on your own and can't seem to improve at the rate you would like, you probably already know that getting a trading coach or mentor could really give you the boost and attention you need. The right one can help you assess your trading to the smallest details, and amazingly, make the smallest suggestions that could make the biggest impact. The mentor can show you things, explain things, and probably even give you homework and trading materials to study.

Also, another alternative for learning to improve your trading would be to join a group of traders who want to do the same thing. Invariably, there will be traders of all levels in the group, hopefully some with more experience than you. All I know is that when I was learning to play tennis when I was in middle school, everyone always told me to play with people better than myself if I wanted to improve faster. I still tell my nieces and nephews that today. I also remember taking private tennis lessons, but I always enjoyed the group lessons more. They were so much more fun, and cheaper. Finding the right group of traders could work this way for you as well.

Searching for and gathering tons of trading information would be yet another way to improve your trading. But how tedious and time consuming is that? Very. What you may want to consider is leveraging websites that have already done a lot of that searching for you. These websites contain trading libraries, downloadable files, chat rooms, courses, and external links to relevant sites and articles. By using these websites, you can get much, if not all, of the trading information you need, reducing your searching time to a fraction of what you would have spent surfing the internet to find it on your own.

The Novel Idea

What if you could combine having a mentor in a group setting and access to centralized trading resources? What a novel idea, yes?! The trade off to sharing the mentor would be that it would be more affordable (e.g., CHEAPER!) but still valuable and maybe even more fun (like in my tennis lessons). Group learning has a lot of benefits - including, but not limited to, learning from others, helping others, support for when you're not doing so well, and people to celebrate with when you are doing well! AND, having a centralized trading resource could free up tons of your time. This type of environment could be a godsend for lots of traders.

So once you figure out what type of learner you are (alone vs. group), how you learn (visual, doer, audio), and what you would like to learn (centralized trading depository), you can narrow down and define the learning environment best suited for you. Once you do this, your trading should improve immensely.

Commodity Futures Day Trading The S&P 500 and E-Mini - Observations - PART 4

Not all conventional commodity trading folklore is correct. Some is and some isn't. Much is anecdotal. Most of it is designed to make you feel comfortable in a trade. Feeling "comfortable" is the fastest way to the poorhouse in commodity trading. We are paid to provide liquidity and take on risk. Read on to see if you adhere to this basic and important market law.

More S&P 500 and E-Mini Futures Contract Observations: PART4

"The following e-mini futures action turned into a big chop, then a big rally the next day: After a clean out decline, wait for a series of bottoms with big volume buying activity. Wait for the sell-off to a bottom and sharp rally and then the volume dies. This is the safest place to buy. This was the forth bottom and the previous three bottoms had bearish volume patterns. The forth bottom changed - it had bullish volume patterns and then price rallied to the close."

It pays to step back and view the e-mini futures market in context. My notes keep repeating it's a mistake to buy the first panic spike. I'd gotten good at buying spikes and wondered why I always broke even or even lost doing it. Most of the time a huge e-mini futures climax is followed by several tries to test the bottom. It's easy to get chewed up in these bottom tests since they can last for several hours before a big turn.

The single spike low that holds and supports a big move was popular in the 90’s, but it seems to have been replaced by a series of double, triple and quadruple bottoms. Throughout the bottoming area, you will see a bearish volume pattern until near the end where it turns bullish within the formation. It’s often profitable to stay bearish and continue to sell rallies and cover at the bottom area. In fact, EXPECT big bottoms to be tested.

If you are early buying a bottom, don’t let these tests fake you out. If you are positioning long, expect them and even average in some more as long as the bottom area reasonably holds. The e-mini market may even spike the original low by one-half to a full point, but any more usually means a major break down and you want to be gone.

Remember that “major” e-mini day-trading lows occur only every 3-5 days or longer, so be selective when positioning for them. Personally, I have found big turning point positioning to be a waste of time and money from a day-trading point of view. It often leads to overnight holds and a bad next-day gap surprise. It’s better to let the longer term futures traders beat themselves up and get the occasional rewards. Playing these large, range-bound formations from the short side until they finally end is the best advice.

When the e-mini futures market starts trending, use this larger frame of reference (the recent bottom) to pick up a bias in a certain direction. Then simply buy the dips and exit at the climaxes over and over. After identifying a big turnaround, don’t try to outsmart the market by shorting or reversing your position against the trend.

This is a difficult idea to adhere to, because the e-mini market will always be having minor corrections and try to fool you into believing it’s turned back down. But after the minor correction is done, the market will move to new highs in line with the accumulation that took place in the last couple days.

Part Five of Five Parts - Next!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

Day Trading Why You Are Guaranteed To Lose

Day trading is popular and you will find more vendors selling day trading systems than any other method.

People buy them yet they don't work and guarantee you will lose longer term. Why?

Let's find out.

Successful trading is all about trading the odds and you must have data that's reliable that enables you to do this.

In day trading you simply don't have any reliable data to work with and therefore cannot get the odds in your favor and may as well flip a coin.

Trillions of dollars are traded daily by countless millions of traders and daily volatility is random.

Therefore, using support and resistance areas in a day session is useless.

The only people who take any notice of daily support and resistance levels are day traders and their small losing minority.

The net result is:

Day traders place stops behind meaningless levels and are then surprised when they get stopped out.
Of course, even if their lucky enough to get a profit in day trading, they break one of the fundamental rules of investing:

Run your profits

Day traders are normally glad to scalp a few points or want to close out at the end of the day.

They therefore have huge amount of losing trades and their winners are tiny ensuring that their account equity is wiped out quickly.

Still not convinced?

Then try this simple test:

Ask any day trader for a real time track record of profits over the longer term and you simply won't get one.

Of course, they can produce hypothetical track records (but their done knowing the closing prices!) so they are no use at all.

People selling day trading systems make their money selling a good story and collecting money from greedy or in experienced traders, so they are guaranteed to make money while the trader loses.

Day trading sounds great in theory but although it looks low risk it is not.

You are working with data that is simply unreliable and all day traders eventually end up losing their money.

If you want to make money in online forex trading then avoid day trading.

Day Trading Systems - The ONE Criteria To Judge Them On

When buying a day trading system or any other system for that matter, you should use one criteria to judge them yet most traders who buy trading systems don't even consider it and lose!
Here it is, use it and you will not only save money but give you the possibility of making money.

It's a real time track record from the vendor.
Think about it!
They try and sell you systems and make great promises, so they should be able to back them up with the money they have made trading the system.
Why would you even consider trading a system if the vendor doesn't have the confidence to?

Don't be fooled by the usual trick system sellers use which is:

Testimonials
Normally friends, a trader with a lucky trade ( before he gets wiped ) or simply made up.
The hypothetical track record

These amuse me no end. Let's define exactly what they are and why there total waste of time:

A track record that by its definition is made in hindsight knowing the closing prices.
Well that's really hard to do.
If you know where prices have closed its not hard to make a profit lets put it this way you never see one that losses!
So do you ever see real time track records from day trading systems?
No chance!

Day trading is a good story, but simply does not work - the logic is totally flawed.
Volatility is random in short time frames this is obvious to anyone apart from day traders.
You simply can't trade with the odds in your favor, if volatility is random.
You can use any technical tools you like but as the data is meaningless you may as well flip a coin.

Of course day traders will argue but my response is always:
Let's see your real time track record.
That's real dollars, made in the market over the long term say, 1 or 2 years and guess what?

When I ask a day trading vendor this question, I Never here from them again.
If you find a day trading system with a real time record let me know, as I haven't found one in 23 years.

It's amazing that people who buy systems never ask for a track record and accept meaningless simulations.
Don't make the mistake look for the evidence of profit in hard dollars over the longer term.
Always look for a real time track record with any system you buy and ask the vendor trades if he trades it himself.

Forex Day Trading- Two Step Trend Analysis

If you approach forex day trading by just looking at the 5 minute and 15 minute charts there is a strong possibility your account will evaporate sooner rather than later.

In order to get a feel for the market and an indication of the current trend it is necessary to do an analysis by looking at multiple charts on different time frames starting with higher level charts first.

Rather than having the charts cluttered with numerous indicators and signals which can cause signal paralysis, I recommend just two:

1. MACD (with default settings)

2. 200 EMA (Exponential Moving Average)

Now examine your charts using a top down approach:

• Daily
• 4 Hour
• 1 Hour

As you check each chart take note of these two factors:

1. Has MACD crossed down or up and is it above or below the water line?
2. Is price above or below the 200 EMA?

While it is not crucial to have them all lined up on these three time frames for successful forex day trading, if you want to be a cautious trader and go for high probability trades then certainly MACD on the 4 hour chart and 1 hour chart should be in agreement as also should price in relation to the 200 EMA.

The daily chart can be useful in seeing the larger picture and for noting key levels of support and resistance. They stand out on a daily chart so if price is within 100 pips of a crucial level of support or resistance as seen on the daily chart, make a note of the figure.

Then scale down to the lower time frames and see if this level matches with other indicators such as pivot points or Fibonacci levels.

Once you have done this groundwork, NOW you can look at the 15 minute and 5 minute charts for a suitable entry point.

Remember, for successful Forex day trading you need to adhere to the No. 1 commandment: Buy The Dips and Sell the Rallies!

So avoid chasing the market and going with the flow. Instead, wait for price to come the level you want, set your entry order, and let price pull you into the trade.

The Danger With Lower Time Frames

Just concentrating on the 15 minute and 5 minute charts will not give you the bigger picture. You could see what looks like a perfectly good trade and set your stops and limits only to find you get blown out within a few minutes.

By looking at the higher time frame you would probably have seen you were close to a key support or resistance level and either not gone into the trade or adjusted your stops and limits accordingly.

For the novice, Forex day trading can involve a huge learning curve. Include this simple daily top down analysis approach to your trading and protect yourself against making trades you wish you didn't!

Day Trading

Day trading is an integral part of the stock market. These traders are always looking to make some quick easy money, and they buy and sell stocks and options for a quick profit, they generally hold their position for short terms, usually less than a day, hence the name Day Trading. The trader buys shares not with an investment purpose but with a quick profit in mind.

The day traders keep buying and selling throughout the day with the intention of a short term profit. The value stock keeps fluctuating second to second throughout the day and as it does, the fortunes of the traders also fluctuate. It is high risk trading and not for the faint of heart.

Many day traders operate with borrowed money, they obtain money at high interest with the hope that their profits will cover the cost of the loan. This is a risky way to try and make a living, resulting in tremendous pressure to succeed. A person operating under this type of pressure seldom makes good decisions, resulting in terrible losses. Which in turn feeds the cycle, borrow more money, higher pressure to win, poor decisions.

Day trading is neither illegal nor is it unethical. But it is risky. You need to keep certain factors in mind before deciding to try your hand at day trading. An investor must be mentally prepared to suffer huge risks and he must be financially capable of making good his losses should the need arise. The trader should only invest only what they can afford to lose. They should not take the house payment and stick it into the stock market.

It has been said, if you can't drive down the road with your car windows rolled down and hundred dollar bills flying out the window and not get upset, then you shouldn't try day trading. Keep in mind, for most traders, day trading is not about investing, it is more like gambling, and is just as addictive. No one can predict how the stock market will react on a day to day basis, so a successful day trader must know how to lock in profits and cut his losses as soon as they can. Typically, this means not carrying their position overnight in
the hope that the next day will bring better prices.

Day trading is not meant for the weak hearted, because it can be extremely stressful. It can take up your entire day with monitoring the stock prices. Just don't buy into the hype about easy money, and don't blindly follow any hot tips or leads. You need to do your research before you buy.

Online Forex Day Trading The Tao Of Rapid Wealth Creation And Perpetuation

Foreign currency trading is the most profitable and powerful way to make money today in the world.

It is a 2.5 trillion dollars daily global market and business.

For this reason the knowledge and the secrets of how to do it successfully have been kept away from the public for thousands of years.

This is because it is the jealously guarded SECRET of how the Money and Power Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the Movers & Shakers of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas make their money and get rich.

They create vast fortunes easily trading foreign currencies.

Thereafter, using this great wealth, they create factories to manufacture consumer goods and products and hire you, Joe Bloke to work in those factories, banks and jobs at minimum wages.

So, it is no wonder why they don't want you to know about the REAL TRUTH and SECRET on how to generate great wealth through foreign currency trading.

If you know how to trade foreign currency and generate $100,000 monthly for life, will you be idiotic, nave and crazy to go to work at these DEAD END jobs to earn minimum wages and be paid nickels and dimes?

So, there has been a persistent organized campaign by the powers that be, the Money Elite to KEEP AWAY AND HIDE these SECRETS of creating vast wealth from foreign currency trading.

That is why they are always floating false propaganda and negative campaign in the mass media that currency trading is risky and you should not do it because you'll lose all your money.

If you go to your bank manager or money management advisor or investment management company and tell them that you wish to make money at home from online currency trading, they will scream at you and try to discourage you and frighten you with the false information and half truth that it is risky and that you'll lose your money.

This is because it is THE SECRET with which they make money and get rich!

Citibank alone makes $20 billion dollars trading currencies yearly.

Most banks, including your bank trade currencies and it is among the major ways to create income.

It is just that they don't advertise this secret.

George Soros, the King of forex trading makes billions of dollars yearly trading currencies!

It is reported that a few years ago, he nearly caused the government of Thailand to go bankrupt because he made so much money trading their currency!

Yes, foreign currency exchange trading or forex trading can be risky.

It is true, you can lose your shirt and go bankrupt.

But this is half of the truth.

The other half of the truth is that if you buy and study a good forex currency trading e-book guide or program and understand how it works, avoid the pitfalls and get to know the secrets of risk management and trade with discipline, you can get fabulously rich so fast it will make your head spin round and put the devil to shame.

This is why there is an organized campaign to discredit online currency trading.

If you get rich so fast, then you'll not need to depend on the Money and Power Elites and their jobs and welfare system where they allow you nickels and dimes to keep you subjugated.

If you get rich too fast, they will no longer be able to manipulate you into voting and keeping them in power to continue milking your life by making you labor and work yourself to death making them rich.

There are so many reasons why most beginners in foreign currency trading fail to earn money and instead lose all their savings.

When they first hear about how easy and fast it is making money from day trading currency, they search the internet and find a forex trading broker.

Then they open a currency trading account and put in a few thousands of dollars in the online currency trading account and immediately begin to try to earn money from online currency trading.

And they get entangled in all the foreign currency trading sophisticated strategies and systems of technical and fundamental analysis such as reading Forex charts, Moving Averages, Elliot wave, Stochastics, Bollinger bands, Directional movement index, Trend and Oscillator indicators, Fibonacci retracements and others.

They spend all day and night listening to business news on radio, reading forex newsletters, forex articles in magazines and watching business news on TV

These beginners don't take their time to buy a valid online currency trading e-book guide to study and understand the forex market and the currency trading SECRETS before they begin trading.

They don't open the free demo trial forex trading account to practice for free to develop viable profitable currency trading skills first before they open a paid forex trading account to begin trading and making real money.

They make the fatal and dumb mistake of trying to fly in the world of foreign currency trading market before they learn how to crawl.

So, they get confused, make grievous foreign currencies trading errors and lose their money.

When they lose their money, they will not accept responsibility because that is the difficult part.

The easy thing to do is to blame their mistakes on online currency trading and to declare and gripe that it is risky and a scam designed to con the unsuspecting public.

This gives them the justification to begin filing false complaints and instigating legal action with the lame excuse that they were nave and didn't know the risk involved and so have been ripped off.

The truth is that there are at least one million people around the world who have foreign currency trading skills and do it well to make millions of dollars monthly!

Yes, sometimes they will lose.

But most of the time they are fabulously profitable.

I once read about a taxi cab driver from New York who started trading foreign currencies about 10 yrs ago.

While driving his taxi cab, occasionally during his lunch break, he will log into his forex trading account and enter a few currency trades.

By the end of his driving day shift, he would check his online currency trading account and was always surprised to find that for a few minutes of trading currencies, he had made more money that day in minutes than he made driving the cab for a whole month.

This encouraged him to stop driving the taxi cab and to begin trading currencies full time.

In 10 years, he made $4 billion dollars ($4,000,000,000) trading foreign currencies online and was listed in Forbes Magazine's 400 richest Americans!

He is just one out of the many average people all over the world who took the time to study online currency trading, understood it and trade it correctly and are making millions of dollars without any hard work.

You too can do the same.

It is simple.

If you can click your mouse once to buy the currency and in a few minutes click your mouse a second time to sell them, you can make money.

It is a no brainer. Even a caveman can do it!

So, foreign currency trading is not difficult to understand or to do like stock or bond or commodity trading.

If you know where to get a good and valid forex trading guide or e-book and be patient to spend 1 hr daily to study it to understand the foreign currency trading market, how to click your mouse to buy and sell the currency; and if you will be patient to do the free demo trial for a few months before you open a paid forex trading account to begin trading, you can get obscenely and insanely rich so fast, it will make your eyes want to pop out, seeing all the piles of cash you generate just by clicking your mouse twice for a few minutes daily!

One powerful secret that will help you as a beginner is to avoid hiring money managers at the beginning to trade currencies for you.

The reason is that 90% of these money managers who advertise with highly impressive websites and brochures and also in TV infomercials and radios and seminars are fraudulent.

When you hire them to trade for you, they will over trade your account (churning) so as to generate a lot of trading fees for themselves because whether they make money for you or not, you must pay them their fees.

The more they trade your account, the more fees they generate for themselves!

By over trading your forex currency account, they expose it to massive risk which will eventually lead you to lose a lot of money.

This is because there are certain days and times which are profitable to trade and there are some days and times which are not.

Therefore by over trading (churning) your currency trading account, they get rich at your expense.

Plus, some of them will even use some profits they generated from trading your account to trade for themselves and make themselves rich without you knowing what is going on.

As if that is not bad enough, some will entice you to trade on margin. This means that they will loan you money to trade.

But the trick is that they are loaning you digital money which is created from the air and has no value.

All they do is go to your account and enter any amount of money they wish to loan you. (They don't actually put real money into your currency trading account!)

This is not real money because it is just digital artificial numbers.

But if you use this fake funny digital money to trade and lose, then you'll owe them real money!

You'll be required to pay them with real money!

And if you fail to pay them, they can freeze your bank accounts, assets and homes to collect the debt.

This is how most of these brokers get rich at the expense of nave beginners in online foreign currency trading.

So, if you're a beginner, avoid hiring money managers to trade for you at the beginning. Stay away from managed trading.

Instead learn to trade and after you have made at least $500,000, contact us to give you the list of the best and honest money managers in the world (as well as the best forecasting services) who can trade for you and make you richer.

There is another fraud which some money managers perpetrate.

After you open a paid online currency trading account and put in thousands of dollars in there for them to trade for you, they use your money to trade for themselves.

Then they use a computer software to generate a fake forex trading account statement for your forex trading account which will show that you've lost money.

There is no way most people will find out, because you can't access their trading activities.

And sometimes even when you find a honest and reputable money manager to trade for you, when your account becomes profitable and you request to withdraw some of the money, they will begin to give you a run around, excuses and try to discourage you from withdrawing the money.

If you persist, you'll find out that suddenly your account will begin to lose money because they have softwares to manipulate it and generate dubious account statements to make it seem as if you've been losing money!

Above all, most beginners in forex currency trading fail to earn money because they spend too much time in doing complicated forex mathematics, reading charts, listening to business news on radio, TV and reading too many forex newsletters and magazine articles, which are conflicting, confusing, time consuming and counter productive.

They spend so much time over stuffing themselves with forex trading news and information that they become constipated with information and overwhelmed and so have little or no time to actually click their mouse to buy and sell the currencies and make money.

Most beginners also are unable to find and use a good currency trading system and software.

Some of them are even conned into buying outrageously expensive trading softwares and system for $4000 from some companies who advertise on TV infomercials late at nights.

They don't know that they can get the same forex trading system and softwares for free online at the websites of some forex trading companies!

These $4000 softwares are not for beginners and when we checked them out, we found they are complicated and not easy to use.

Infact after you manage to master how to use it, they will not help you to make more money!

So, it is not wise squandering your hard earned $4000 to buy them.

If these over priced worthless forex trading softwares work as they are advertised in seminars and infomercial, the companies will not be selling them.

Instead they will keep them secret and use them to make billions of dollars.

If you wake up tomorrow and discover you have a goldmine underneath your house, will you go out and advertise in TV infomercials and radios and seminars to sell your house for $4000???

The truth is that most of these infomercial advertising forex companies don't really trade currencies. They are just sales people. Shysters. Tricksters.

They make their money by peddling worthless forex trading softwares to the nave beginners for $4000.

When you check one of these companies out (one of them has the audacity to call their worthless software Forex Made Easy), you'll discover that the CEO of this company actually admitted that not only that he does NOT use his $4000 software to trade but he knows nothing about trading currencies!

He only lends his name to his company to use to market their worthless foreign currency trading software.

The company's pitchman who conducts the seminar is a sales man and he also doesn't trade currencies because he had committed fraud in the past and was barred from trading commodities.

While the CEO of the company runs infomercial and seminars peddling worthless forex trading software for $4000, he doesn't use it and doesn't trade currencies.

Instead he hired a money manager who trades the currencies for him!

So, if you're a beginner who desires to get rich fast from currency trading, you must know these insiders' SECRETS of currency trading market and the pitfalls and how to avoid all the fraudulent companies peddling worthless forex trading e-books, books, softwares, systems and complicated trading strategies.

There are millions of them.

Beware because they are smooth operators who are very skilled in salesmanship and who can easily dazzle you with their big refined nonsensical English and so con you.

There are billions of dollars to be made in foreign currency trading and you can get abundantly rich trading these currencies online from home or office starting small.

But you must locate and buy a valid foreign currency trading e-book guide.

You must study it and understand it.

You must try the free demo account trading and do well in it before you can open a paid forex trading account to actually begin making real money.

You must begin by trading only one or two currencies at the beginning.

With time as you acquire more skills, you may trade more currencies.

You must learn how to trade with discipline and learn the BEST DAYS AND HRS to trade to be profitable and the other times when YOU MUST NOT TRADE to avoid losing money.

You must know how to go long or short on a currency, how to enter Market Order, Limit Order, Stop Order, OCO order and Entry Order.

If you learn how to do Online currency trading hedging, it will help you to maximize your profits.

You must be disciplined and avoid emotional currency trading.

When you make a reasonable amount of money for the day, stop trading because you can't be profitable at all times of the day and if you don't stop and take your profit, you may end up losing all the money you made.

Above all don't open a paid currency day trading account and trade until you have done the free trial demo account trading for a few months and mastered it.

At the beginning, keep your trading strategies simple.

Avoid complications and advanced trading strategies of technical and fundamental analysis because these are the reasons why 90% of beginners lose money.

Use a simple trading strategy to get rich at the beginning.

Afterwards you may then take advanced forex trading courses and do technical, fundamental analysis and use forecasting services to make even more profits and get richer, making millions of dollars effortlessly.

If you're serious in learning all the insiders' SECRETS about how to make millions of dollars trading foreign currencies online, without selling your soul to the devil and without losing your shirt, you must get our powerful currency trading e-book which reveals a very simple and yet profitable and powerful trading strategy which is guaranteed to make you $100,000 monthly for life from home or office.

You can learn to get rich from the jealously guarded foreign currency trading SECRETS of the Money and Power Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the Movers & Shakers of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas.

With the millions of dollars which you make from foreign currency trading, you'll be free like a bird to buy a mansion, with the most lavish and expensive furnishings, jewelry, antiques, electronics, a 50ft yacht, dream luxury cars, pick your choice: Lexus X470, $44,000 Jaguar 2007 S type, Silver Porsche Carrera, $180,000 Ferrari Testarossa, Mercedes 2007 Model S Class, 2007 Rolls Royce Silver Seraph, Bentley Mulsanne S, $220,000 Bentley Arnage Silver Tempest or a flaming red Lamborghini Jalpa!

You can make all your dreams in life to come true, without any hard work!

May these insights into foreign currency online investing, foreign currency trading program, investing online, forex trading, day trading, online trading e-book, day trading online, day trading system, day trading course, day trading future, forex day trading, day trading book, day trading firm, day trading training, currency day trading, online future trading, online currency trading, online forex trading, online commodity trading, online currency trading system, currency forex online trading, online trading course, online trading education, trading, online trading investing, forex, forex trading, forex broker, forex market, forex trading system, forex news, forex trader, forex signal, forex trading, online forex, trade forex, forex quote, forex education help you make millions of dollars and to achieve your life's ambitions and dreams.

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