Day Trader

Day trader is an investor or individual who works with day trading stocks. When day trading is used in financial market, all activities related to trading stocks will be finalized in a day. Here stock trade involving buying and selling of stocks will be performed in a single day. Everything will be closed before the end of the trading day. Depending on the policies followed by the day trader, he can complete stock trades of around hundred transactions in a day.

Most commonly, day traders work whole day with dedication. There are mainly two categories of day traders. They are institutional day traders and individual day traders. Institutional day traders are part of stock trading companies or financial institutions. The chances of working and growth will be high for institutional day traders. They get more equipments and tools for day trading including capital and fresh fund. They can use this to trade for long time in stock markets. They have easy access to stock exchanges and center of stock exchanges. This will reduce the risks involved in trading of stocks by reducing the chances of competition from opponents and other individuals.

Individual day traders on the other hand work on their own abilities and sources. They usually work alone. They use capitals available at their own disposal or from loans. They even manage to get finances from private institutions and manage money. Individual traders can't manage money from other individuals on their own will. They will have to follow the regulations set by law. They can seek the help from the brokers to make their work easier. These brokers will have access to the stock, which will increase the opportunity of trading.

In early ages, all traders trading in a day were institutional. This is because of the difficulties they had to face when they were individual day traders. There were huge imbalances between individual and institutional day traders in terms of facilities including capital. But when technological advancements introduced latest techniques in stock market as well, situations started changing. Internet and other facilities like computers increased the chances of trading using powerful techniques and at relatively less expenses. When legal aspects were relaxed and came up with favors for individual traders, things became favorable for individual traders. This smoothened the imbalance also. Thus, more and more traders were attracted to this business of stock market.

2 Ways To Learn Currency Trading

Trading on the Forex market is a tricky and risky business. There are so many factors that influence the price of one currency in relations to another that it's very difficult to predict where the market will go. Add to that the fact that this is a global market which operates around the clock and sees 3 trillion dollars change hands on and you get a picture as to how complex this market is.

The truth about Currency Trading

The truth is that over 90% of all currency traders lose most if not all of the money they trade within a short time. The market is simply too tough on the little guys. But being a small trader isn't the reason why so many people fail. The reason is that most traders are simply ignorant. They don't know how to trade, how to read market data, and how to increase their chances of predicting where the market is heading.

Learn Currency Trading

The solution is to learn currency trading. It's worth it since the money making possibilities are remarkable. It's easier to make money on the Forex market fast than in any other way. But you need to know what you're doing.

2 Ways To Learn Forex Currency Trading

1. Go to a course - There are many courses which can teach you currency trading. They usually cost a few hundreds or thousands of dollars. This is still worth it because you can earn it all back when you're successful. However, these courses require you to go to class, learn with other people, and they usually spread over a few months.

2. Learn currency trading online - There are many online forex trading courses which can teach you all you need to know and do it at a fraction of what a live course would cost. These courses allow you to learn at your own pace and often contain detailed video tutorials and trading strategies.

Personally, I prefer online courses, but that is entirely up to you.

To read more about an excellent video online course, go to this webpage: Forex Power Strategies

Automated Trading Day - Day Trading, Scalping Robots Can Yield Big Gains!

Automated trading daily - has the image of low risk and high profits as forex robots are plugged in and profits come with low risk and big long term gains. - But is this possible lets look at how an automated trading day and high profit day and see if its reality.

There are numerous forex robots that promise you that you can make big gains with low risk and you don't need any experience either - just plug in and the profits come and they even show you fantastic track records to back up their claims - but there's a problem. See a track record of gains in day trading and you will see this warning at the bottom take a read:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

What does it mean? Well you have probably already guessed it - the track records are simply made up, meaningless, simulations in HINDSIGHT!

Let me see... if I had tomorrow's price today, how rich would I be? VERY! But that's not the reality of trading forex.

Would you trust a golf instructor who had never played golf?

Of course not - so why would you trust an automatic forex day trading system which hadn't been traded and made a profit long term? Well thousands of traders do and they pay for it with a wipeout of equity.

Day trading is a good story - but that's all it is a story which, doesn't add up in reality and is based on ridiculous logic.

There are millions of people all trading FX and they all make the price and the question you have to ask yourself is:

How on earth can you predict what this vast mass of people will do when they all have different skills, motivations and are subject to their emotions and even harder what they will do in a matter of hours?

The answer is simple - you can't.

Automatic forex day trading is good theory but with all short term volatility being random it doesn't work.

You can prove this to yourself - find a forex robot that scalps or day trades and then look for the disclaimer saying it's a simulation - look and you're bound to find it.

Forex trading can offer you big profits - but making money is never easy and if you think about it - you wouldn't expect it to be, with the rewards on offer.

You need to do your homework and learn to trade longer term. An automated trading day system is another phrase for a losing system longer term - because you can never get the odds on your side.

Trading is an odds game, no odds on your side no profits - PERIOD.

Forex Price Action - Learn How Prices Really Move For Bigger Profits

Forex price action you need to know the factors that affect price to make money with your forex trading strategy and it's a fact most traders do NOT understand the factors that drive prices - If you do, you can enjoy better market timing and bigger forex profits...

Let's start with a simple equation:

Forex Fundamentals (supply and demand factors) + Investor Perception of = Forex price Movement.

Now the above is simple - but many traders misunderstand what the equation means and make these critical errors:

1. They try and trade the Fundamentals

They see all those convincing experts on news wires etc and try and trade the news stories - but that's all they are stories. Prices don't move based upon the fundamentals alone - they move on how humans perceive them.

We all have the same facts to look at - but we all draw different conclusions from what we see and your view, my view and millions of others, determines the final price.

Humans are not logical either, their view is colored by greed and fear and if try and trade the fundamentals in isolation, you will lose.

Will Rogers once said: "I only believe what I read in the papers" and he was of course joking - but you would be surprised at how many people take news stories as gospel and trade them and end up losing. Keep in mind this fact:

Markets rally when the news is most bearish and fall when its most bullish - this is not a reflection of the fundamentals but of investor psychology.

2. Market Move to a Higher Force

On the other hand, you have a group of traders who believe prices believe that prices move totally detached from the fundamentals and move to some higher scientific theory and can be predicted with scientific accuracy.

Of course this view is wrong. Humans are NOT scientific and don't move to a criteria you can judge. Sure, human nature is constant - but it can't be measured with scientific accuracy - if it could, we would all know the price in advance and there would be no market!

So how do you Judge Forex Price Action?

We know the fundamentals don't help on there own and we know all the scientific theories based on forex technical analysis are wrong, that doesn't mean you can't make money from forex price action. Here's how you do it:

Understand this first:

Forex trading is a game of odds NOT certainties but if you can play the odds you can win. Just like the good poker players, you bet when the odds are in your favour and fold when there not.

You can still use forex charts and all you do is look for high odds trades.

Keep in mind forex charts show you the fundamentals (they simply assume all known fundamentals show up in price action) but they do something more they show you the reality of how humans have reacted to them - its clear on a chart right in front your eyes.

Trade the Truth For Bigger Forex Profits

You don't need to hope, guess or predict forex price action you simply respond and act on forex price action as it is and trade the truth.

Forex charts are a great tool to make money with and you can then trade in a disciplined fashion with your forex trading strategy, for big long term profits by trading the odds.

A forex trader who does this doesn't care how or why forex price action unfolds - they just want to make money when they do, by locking into price trends for profit.

Forex Profits - Want Them? Use This Free Automatic Trading System!

I have been a trader for over 25 years and for most of this period I have used the free automatic trading software system I will describe here, as part of my forex trading strategy and it's been highly profitable. Here I will share it with you.

The system was originally thought up by trading legend Richard Donchian and many great traders have used it and held it in high regard.

While it is simple (one rule) its extremely powerful.

You don't need a computer to use it you can work it out on paper! You can also customize it to fit your risk reward parameters.

By the end of this article you will know the rule it is based on and can test it and you will know exactly why it does work and will continue to work, so here is the rule of the system, called Richard Donchian's 4 week rule:

When the price is at its highest in a four week period, buy long and cover short positions if the price falls below the lows of a four week period, sell short and liquidate long positions.

That's it! - Very simple but that makes it extremely robust and a great trend following system.

Don't think because its simple it doesn't work - it does but it does of course suffer drawdown when the markets are not trending so, you need to have an adequate spread of contracts to trade it or adjust the exit rule.

As a trend following system its not meant to catch tops or bottoms and is not to fussy about market timing - but it does work long term. So how do you cope with drawdown when markets are not trending?

You can try shortening the time period to a more sensitive 1 or 2 weeks for liquidation purposes and then re-enter on the 4 week rule.

You can of course exit on a lagging moving average and you can back test any between 20 and 10days. Many traders I know like to use RSI, ADX and other filters, the choice is yours.

The basics of the system are obvious and it's really the exit levels that need some work if you don't want large drawdowns.

Consider this fact:

Currency markets tend to trend well longer term and this system will always keep you in the strong trends - its objective to, so you don't need to make subjective judgments and will take you around 15 - 30 minutes a day to trade and that's it.

Of course this system doesn't trade a lot and requires a lot of discipline to follow but it works.

Today this system with one rule and its brutally objective approach, won't appeal to most traders - they want to apply science and love systems that have the chaos theory or artificial intelligence in them but this system will beat most of these trendy hands down because it's so robust.

Complicated strategies don't work as they have too many elements to break.

Donchian left a great system that anyone can understand, use and make money with. Before you think about buying a system, try this one and add your own money management if you wish and you will see it's a great tool for forex profits.

Forex Trading Methods - Automated Trading Systems Vs Manual Ones Which Are Best?

When you are looking at forex trading methods you have choice between following an automated trading system or trading manually to set of rules so which is best lets take a look...

Forex Robots

Have rules build into them and there simply plug and play time efficient and require very little trading knowledge.

There are some good ones about that are sold online but most (about 99%) don't work and the track records are simply made up and simulated in hindsight. Most carry the disclaimer below, look out for it and forget it:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

There are some that have been traded and tested and have real time track records but be careful - you still have to follow it with discipline and for this, you need to know how and why it works long term.

You need to be confident enough in its logic, to stick with it through periods of drawdown, if you dont understand how and why it works and have confidence in its ability to win longer term, your discipline will go and you have no system.

There are even some free ones that make money. I have written frequently on Richard Donchian's 4 week rule and this incredibly powerful but simple system, is free! Look it up in our other articles.

Trading an automated trading system ( if you find the right one) is time efficient and easy - but you must have a disciplined and patient personality, to keep executing the signals in line with the rules and this is hard, when you had a losing period!

Manual Trading

There is a right way and a wrong way when trading manually - lets start with the wrong way.

The "shoot from the hip" news and story trader - He simply trades on a whim and of course as news is instantly discounted and his emotions are to the fore he losses.

The other trader is the trader who likes to do every trade manually but is still guided by rigid rules in terms of, executing his trading signal and money management.

I am this sort of trader and it suits me as I am involved and although I use rules I can pick and choose the best trades in terms of risk reward - this trading method is obviously my personal choice and each trader will know which method is right fof them.

You can make money with forex robots, just choose wisely and be prepared to have confidence and discipline in the system you follow. As a manual trader you still need discipline but it probably suits the trader who enjoys a challenge.

Which ever trading method you choose, remember to have a disciplined approach and make sure you employ rigid money management criteria, to lead you to long term currency trading success.

Do You Have What It Takes To Become A Successful Forex Trader?

Forex trading, or any trading for that matter, is an occupation that requires experience and the accumulation of proficiency not unlike any other highly skilled profession. Whether you are a leading executive at a major publically traded company, a professional golfer or trading from your kitchen table, there are 5 key ingredients that one must possess in order to become successful.

1. You must be Passionate about what you do.

As Forex traders we all face one unique set of circumstances that does not exist in any other profession. We get rewarded for when we succeed and equally punished when we don't! Could you image a corporate worker one quarter receiving a significant accomplishment bonus and the next quarter actually getting money taken from their paycheck for missing performance targets?

Not on your life! We do as Forex traders and that is why passion for what you do will carry you through the tough times that are part of your trading business. Asked yourself why you trade currencies and would you still do it if Forex were not potentially lucrative? Your answers will be quite revealing. You've got to feel your passion for trading!

2. You have to Apply Yourself and work hard at it.

I talk to so many people that enter into Forex trading with the aspiration of getting rich quick. Without putting the time and energy into really getting good at trading I see them jump from strategy to strategy looking for the goose that will lay the golden egg and eventually quitting while blaming everything else, except the true cause. I got news for you - you are the goose and your Forex education is the golden egg.

The magic has always resided with the magician and not some strategy. Work hard at trading and the rewards will eventually come your way. Remember what Tiger Woods said, "Funny, the harder I work the luckier I get." Apply yourself as a trader and it will be no accident when your account begins to blossom.

3. You must Focus to really get good at what you do.

Now here is the hurdle most Forex traders struggle to get over. You have the passion and you are applying yourself to your trade, now focus and really get good at just at what you are doing. Be the expert to the experts at just that one thing. Become the master of a strategy or risk management methodologies. Really focus on getting good at it. Stop jumping around or getting pulled from the last "latest and greatest" into the next "latest and greatest" and focus on one aspect of Forex trading and know it inside out. Know it strengths and weakness. Set your sights on becoming expert on just one aspect of trading and watch it spill over in all other aspects for your currency trading. This is the time to fail forward fast, use every setback as a learning opportunity that will propel you 3-steps ahead!

4. You must Push Yourself beyond the point everyone else might have quite.
In Forex Trading this is simple. Assume there is someone on the other side of your trade that is pushing themselves and sharpening their edge. To be successful you must you must do the same thing. Now is the time to examine your mental edge. Do you know the single most critical factor in any currency trade? It is you, the trader!

Sharpening you mental edge is the most difficult aspect of trading, but also the most rewarding. Start with your Forex education and gain the self-awareness necessary to maximize your strengths and suppress your weaknesses. Any expert will tell you that trading is 80% mental. It's time to sharpen your trading to the razor's edge and you do this through Forex education. A constant and never ending process that will become the cornerstone of your Forex experience.

5. You must, without wavering, be Determined and Persist to your objective.

You will fail. I can state that emphatically. However, you will not be defeated unless you allow your failures to control your trading. It is the old adage; failure is not falling of your horse, failure is refusing to get back on. Your success depends on your ability to dismiss the criticism, rejection, self-doubt and pressures associated with Forex trading. Defining what is a winning trade, losing trade and bad trade will go a long way into developing you as a successful trader. Without the determination and persistence in all aspects of your trading life, obstacle will definitely appear closer and larger than they actually are.

Take a moment and assess yourself and your trading. Do you have the key elements to succeed? Which areas are presents development opportunities? When conducting a self-evaluation it is critical to be totally upfront and honest with yourself. After all, you will only be dishonest with yourself. One of the most interesting observations you can make is that all key success factors are interwoven. One factor supports the other. This is why your Forex education is a continuous journey of forex strategy, money management and self-mastery. Set these factors as your Forex education goals and take your currency trading to new heights.

Getting An Understanding On Foreign Exchange Rates

Foreign exchange rates are just one way that a country can tell if it is flourishing, or not. Currency markets can be a very difficult thing to understand if a person is a novice to the whole concept. Even the internet offers little help if one is looking for a simple explanation of this complicated subject. If one searches hard enough though, then they are sure to find some great resources.

Foreign exchange rates develop from trade between two countries. Currency rates will all be affected by the trading between these two countries. If import cost is cheaper, then their currency will be higher.

If the imports are more expensive, then the rates will be lower. To understand the currency rates in foreign markets, visit Investopedia. A good basic understanding can help a person completely grasp this most difficult subject.

According to Investopeida, other factors besides trading affect the foreign exchange market. These factors include: inflation, interest rates, public debt, trade terms and political stability.

The author of this article goes into depth about each. The terms are easy to understand, and if one has a quiet place to contemplate this information, then they can learn all they will ever need to know.

Foreign exchange rates determine if a country is prospering or in dire peril. Most citizens of a country have no idea how this concept works, and in order to understand it one will have to do their research. A great place to start is by looking on the internet.

So much information is on the web when it comes to foreign markets. Finding the best website to get a basic understanding can be very difficult. The key is persistence and patience. The thing to remember is that everyone can make their country more prosperous if they only know and understand how this process works.

Online Stock Trading Comparison Future Forex Trading

Your first edition books are investments. Even wine, art, culture, your fence and you computer are investments. But the thing with regular every day investments is that you don't always see them as investments and it is pretty hard to monitor long term investments like your home. Plus unless you are planning to buy some extra house, you won't be able to make a living off your home.

So the time has come for you to diversify your investments? Perhaps you have been thinking this for while, or perhaps you are completely new at this, either way you need to sit down and figure out what you want to have and what you want to do to get what you want. There are plenty of options to get you started. You can of course stick to online trading. Online stock trading is just like any other trading expect it is done online. When trading online you will generally have a broker. But instead of meeting your broker in their office, you will meet them online. You still need to research your broker and find out about their credentials and references, but it generally easier to do so online.

Before you get involved in online trading you should probably conduct an online stock comparison. Which basically means that you compare things you are interested in. So you can compare the online brokers. You can compare online stocks that you are interested in and you can compare different markets you are interested in.

Another way to start is to start trading in futures. Basically the word futures means trading in commodities or currency at a particular date in the future. You need to be fairly confident of the direction your chosen stock or forex will move. More specifically it means trading these commodities at a time in the future that you have already determined. So it is unlike committing to a commodity for a long time, rather you know how long you will have it and why you have it. Some popular versions of this are the Dow Jones.

You can also start out by working your way up through trading on the forex. Forex trading simply means trading in money or currency. So for instance you might buy some American dollars when America is doing badly and sell them to buy some Yen when Asia is doing well. Forex trading is generally a good place to start because it is easy to budget and organize when you know what you are working with and most people already have some idea about world currency.

Find out more and start learning about how to make a living with online trading today on.

Paper Trading The Sharemarket Can Be More Riskier Than You Think

If you think there is no risk in paper trading, do not be fooled. The greatest risk about paper trading the stock market is that you may never actually get to trade.

A number of years ago, I read about a certain psychologist who wrote a book about gambling. This guy actually bets on racehorses. He claims he is in front by miles. The reason why he is in front is he has never actually placed any money on the horses he backs. You see, he paper trades; that is, records what he would have done, if he had of had a wager, on paper. The irony is he claims that anybody who takes a professional attitude to investing on racehorses will win because he is also winning on paper.

This is the problem with paper trading when it comes to the share market. It is good for those who want a pastime where there is no actual money to be made or lost. If you want to be a paper trader and play a form of the board game monopoly, then that is fine. The only cost will be your time and the material you use to record your trades.

What happens when people paper trade is they never start to experience the other aspects of being invested in the sharemarket that need to be taken into account. You know, the mind games and emotional highs and lows that have to be mastered in order to be a truly successful trader or investor.

The market is so unpredictable that anything can happen at any time that is enough to give you a heart attack. Like the time I bought 200 thousand shares in a stock at $2.00 and patted myself on the back when I saw they had gone up to $2.10. My target was $4.00 before I intended to sell.

I went for a thirty minute run and when I checked the market after I had got back, the share price had fallen to $1.50. Evidently, a very large investor sold out his holding. What do you do in a situation like that. Bail out and cop the loss, or do you wait and hope that the market goes back up? One thing is for sure, as a paper trader, you will not have to face such a decision.

A paper trader never gets the same thrills; nor spills anything when he sees the market go down. When you trade the indices and see how far some markets will move up and down during the day, if you are not conditioned to withstand the emotional rollercoaster, you will end up a nervous wreck. Because of this, paper-trading is more riskier than people realize. You see, on paper you might be making a fortune so I you tip in all your savings so you don't miss out. The trouble is you have missed out on the psychological conditioning required to be a successful trader.

If you are going to be a serious trader, instead of paper trading, take the risk out by putting aside some money to play with. This is real money that you will be able to lose, but will not give you angina if you do happen to lose it all. Trade with the smallest amount of money possible and become disciplined. This way you take all the risk out of the equation and you will succeed in the long run.

Using Bollinger Bands For Penny Stocks

Trading penny stocks can be a very lucrative form of trading if certain guidelines are met. One of those guidelines is having the proper tools to evaluate and chose winning penny stocks. Charting software is an important component of a trading system and within the charting software there are various indicators that a person can use when considering a penny stock investment. This article will cover one of those indicators, Bollinger Bands.

Developed by John Bollinger, Bollinger Bands are an indicator that allows traders and investors to compare volatility and relative price levels over a designated time period, a relative high or low in the instrument being traded. Two important factors are derived from the Bollinger Bands which are bandwidth, a relative measure of the width of the bands from each other, and a measure of where the last price is in relation to the bands. Having evolved from the concept of trading bands, Bollinger Bands can be used to measure the low or high of the price relative to previous trades, indicated on the underlying chart.

Since their introduction, few indicators have helped traders as consistently as Bollinger Bands and the use of Bollinger Bands varies distinctly among traders. The use of Bollinger Bands is not confined strictly to stock traders, options traders often sell options when Bollinger Bands are far apart or buy options when the Bollinger Bands are close together, in both instances, expecting volatility to return back to the average volatility level for the stock or option.

Closing prices are the prices that are most often used to calculate Bollinger Bands. In addition to identifying volatility and relative price levels, Bollinger Bands can be combined with price action and other indicators to generate signals helping identify potential significant moves. By themselves, Bollinger Bands have two main functions which are to identify periods of low and high volatility as well as to identify time periods when prices are at unsustainable and extreme levels. Bollinger Bands do not give absolute buy and sell signals, and most traders agree that the bands indicate if price is at a relative high or low.

Many traders utilize Bollinger bands to determine the volatility of a stock movement and identify the time frame when the current trend of a simple moving average may be coming to an end. If the two Bollinger bands violently move apart and start moving in opposite directions, the stock has made a significant move. Of course this depends on what time frame the chart is being used. A one minute chart, for example, would not be considered an extreme move with Bollinger Bands. However, a 15 minute chart or daily chart with wide bands surrounding the candlestick would be considered a significant move. It should also be noted, when price is trading near the lower or upper Bollinger band line, there is a possibility that the current trend may be reversing. In other words, when price reaches these extremes they should be considered overbought and oversold.

Over the past twenty five years, traders have considered Bollinger Bands to be the most important and reliable tool for determining expected price action, with almost all trading software platforms including Bollinger bands as one of the primary indicators. Used in conjunction with other indicators, Bollinger Bands can be a powerful indicator to implement into a system designed for trading penny stocks.

Forex Day Trading Basics - Your Forex Success Is Based On Fundamentals!

Being a $2 trillion a year industry, many savvy investors and ordinary people alike want to try their hands on foreign currency exchange (forex) trading.

To succeed in this game, you need to arm yourself with knowledge because there are a lot of factors to consider when trading.

Your success is based on fundamentals. The more you know, the more money you will earn.

There are 4 kinds of forex trading setups. Each of them has its own pros and cons. The essential is determining which of these systems is the right one for the novice investor.

Let's have a quick overview about these four different trading systems.

1. Spot trading

The currency spot trading is the most popular forex setup, accounting for 37% of the total number of transactions in the industry.

2. Forward trading

If spot trading involves the trading of currencies deliverable within 2 days, forward trading involves the trading of currencies the delivery of which can be effectuated somewhere between 3 days to 3 years.

3. Future trading

We can say, for the sake of our lessons, that future currency trading is a combination of spot currency trading and forward currency trading.

4. Option trading

Indeed, options currency trading is a forex exchange system that involves options to purchase currencies at "preserved" prices.

As a beginner, always choose the easiest route. You may want to start with the currency spot trading model first.

Also, be sure to always trade in your demo account. Don't leave this account unless you are able to make significant profits several months in a raw.

This will ensure that you don't lose your hard earned money.

Inside Day Trading - Is Day Trading Right For You?

Day trading, is at once a great way for individuals to make a great deal of money and a great way to lose a great deal of money. I have always believed that your reward is in proportion to your risk. If that is true than day trading could yield tremendous rewards. What are the steps that you need to take to ensure that you are on the winning side of the equation?

To understand day trading, you need to understand its nomenclature. Day trading is not named for the obvious, that you trade only during the day. Of course, all trading takes place during the day, while the market is open just like any other stock market trading. What makes day trading unique is that a day trader will sell all his or her positions by the end of the day. In other words, a day trader does not own any stocks when the market closes. The reason for this will become evident later.

In a nutshell, day traders seek to profit from tiny market fluctuations by purchasing huge amounts of penny stock then selling them for fractions of a cent higher than they bought. They make money because they purchased hundreds of thousands of shares, so if a stock rises by one penny, a day trader will earn $1000 for every hundred thousand shares that they own. Sounds easy doesn't it?

Day trading is an exacting practice that require skill, luck, dedication and a fair amount of capital. A day trader requires a trading account with a real-time trading platform. This allows you to make trades at the exact price that you want to rather than the price 15 minutes ago, as many trading platforms are 20 minutes delayed. Along with your real time platform, your internet service provider, will have to furnish you with a static I.P. address. This is much more expensive than the dynamic I.P. address that you have now.

All of this adds up to an undertaking that is not for everyone.

8 Ways To Be a Better Trader

Even the best traders in the market have trading sessions that are less than optimal. Human nature dictates that we make mistakes, and trading the stock market is no exception. Subsequently, there is always room for improvement, whether you are a novice trader or a seasoned veteran.

1. Stick to Your Guns - Don't try to run from the market. The only way to boost trading profits is to stay in the game and keep trading. Running from the trades and the action will keep you out of the market, whether it is hot or cold. Sticking to your trading plan and enacting trading discipline are the keys to producing profits.

2. Set Stop Losses and Take Profits - "Set and forget" trading is generally profitable. When you place each trade, remember to place your exit and stop loss, and then let the market be your guide. Have a preset limit of how much you're willing to win and how much you can lose. Technical analysis will tell you the best price for selling (near resistance) and the best place for buying (near support). Support and resistance points are the best places to put limit orders.

3. Don't Watch Minute to Minute - Swing traders should be keen to avoiding the minute to minute movements. It's easy to set an exit point that will not be hit for three weeks, but then close a potentially profitable trade due to minute by minute movements. There is no reason to get out of a trade for quick profits if you're in for the long haul. Small ups and downs create temporary stress and can reduce swing traders to day traders. Niche trading works because you're specialized in your own area.

4. Eliminate High Probability Trading - You wouldn't expect to make consistent profits at the roulette wheel, and you shouldn't do the same with your investments. The active, professional trader only takes quality trades opposed to quantity of trades.

5. Accept That Full-Time Day Trading Is Rough - The ups and downs of full-time day trading are very stressful. Find something you can do each day to wind down and get rid of your stressful day to day anxiety. Stress will make you think differently and trade differently. A professional trader will need to find ways to vent their frustrations as bad days do happen to the best of traders.

6. Pick Swing Traders or Day Traders - Know exactly what kind of trader you want to be. It is difficult to be very good at swing trading while following the short term movements of day trading. Define what kind of strategy you want to follow and stick with it.

7. Don't Get Attached - You're out to make money, not be married to a stock. Even if you've got the feeling that this stock is "the one," you should be ready to dump it when the price is right.

8. Talk to Other Traders - Talk to other traders with more or different experiences. Getting a feel for the markets is paramount to producing profits. If you can get trading down to a point where it just comes naturally to you, all the better.

Trade Forex 24 Hours a Day with Trading Robots

You need money to live a comfortable life. You need money to
provide education to your children. And, you need money to
eat. This is why you work, this is why people put up
businesses, and this is why people go to great lengths to
make money.

Trading in the largest financial market in the world is
surely something you should consider. The Forex market (or
Foreign Exchange) is the most liquid market in the world. It
operates 24 hours a day.

With trade exchanges that generates up to 2 trillion dollars
a day, who won't get attracted to trade in this very
liquid market? If you are a regular person with a regular
job who is looking for a way to earn extra money, you can
consider entering the Forex market and trade.

However, Forex also has its risks and people who have traded
in Forex without the proper knowledge and skill lost large
amounts of money, and some have suffered extreme financial
losses. This is why it is necessary for you to have enough
knowledge and skills when you trade in the Forex market.

Even if you don't have the necessary knowledge, you can
start trading and earning extra cash. Many people are using
software to help them trading. That software is often called
Forex Trading Robot.

Imagine having a personal Forex broker trading for you. A
trading robot is like that, only in form of software instead
of a human. You won't miss any opportunities, since the
trading robot runs 24 hours a day and is accessed over the
internet.

All these are possible through the use of a Forex trading
robot. However, before you subscribe to a Forex trading
robot, you have to first determine if the software can
really work to your advantage. You have to determine if the
Forex trading robot can really trade effectively and
efficiently.

You should also look for advanced trading features that the
Forex trading robot can offer you.

Some necessary features of a Forex trading robot:

- The robot should work 24 hours a day. If it doesn't, you
will miss a few money making opportunities.

- Low minimum investment - The lower the inital investment
is, the lower is your risk.

- Is the company using the latest trading technology? An old
and outdated robot could put your money at risk.

These are some of the things you should look for in a Forex
trading robot. With these features, you can be sure that you
can really earn money.

Forex trading robots are perfect for people who wants to get
involved in the Forex market but don't have the proper
knowledge and skills to trade currencies. They are also
great for people who are afraid to invest their money in
Forex. You can also benefit from a Forex trading robot if
you want to concentrate on your day job and still earn cash
in the Forex market.

As with every investment, you should have the money to
invest. Don't use your rent money. Forex trading is risky,
you could loose everything.