Advantages of Day Trading

Day trading is the process of buying stocks, currencies or futures, and selling them on the same day. Out of the sale, a trader expects to earn a profit. While there are some who say that there are more losses than gains in day trading, there are still many others who swear by the system and have continued to reap its benefits. Here are some advantages of day trading, as listed by trading experts.

One advantage is being able to work on your own. You are your own boss. You don't need to consult others before making a decision. After all, should you fail, you are the only one accountable to it. Because there is no one to check on you, it is therefore important that you have the self-discipline and hardworking attitude to know the business well. You must also be able to put your emotions on hold as you make your choices.

Because there are more traders now, there are also more sources of information that you can find compared to other kinds of business. Be diligent in reading these materials, as they can help you as you learn more about the subject. But be cautious of the information that you download. Some of them are mere enticements to get you to subscribe to their sites without giving any information that you can actually use.

Another advantage is that you do not need to know about stock trading before you can try this type of trading. In other words, anybody can venture into day trading. However, if you want to earn more profit and be successful, you need to study how the system works and work hard at it.

Also, in this type of trading, you don't need to speculate or make decisions based on trends or your gut feelings. You can use a system and base all your decisions on it. Since this system has been proven to make money before, then chances are you are also to gain using it.

These are only some of the advantages of day trading. The disadvantage, of course, is the risk of losing money. But like any business venture, this risk is always present. That is why it is important that you know this business well before actually getting involved. In that way, you can develop your strategy and minimize the risks in the process.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Hot Stock Buys

Picking stocks can be a daunting experience. With the hundreds of thousands of stocks available on the market, how do you know which one or ones to buy? How do you know which ones are the hot stock buys and which ones are the poor performers? And how do you know how many shares of stock you should buy, and within what price range, in order to meet your financial goals?

There now exist computer software programs that can literally analyze a broad spectrum of the stock market for you and make "hot stock buy" recommendations. Capable of processing millions of computations per second along millions of data points for several thousands of stocks, these computer programs can analyze trends and patterns, and make extrapolations on future performance of each stock with unparalleled mathematical precision.

Can you blindly trust a computer to issue you "hot stock buy" alerts?

Well, can you blindly trust a human being to do the same?

Nobody, not a human nor a computer, can predict the future. Nobody can account for the socio-political conditions that influence the market globally. A computer certainly cannot predict what the impact of a major political event will have on the market. However, a computer can do something that even an army of professional Wall Street stock analysts cannot do: Calculate which stocks, out of the many hundreds of thousands, have the greatest statistical probability of increasing a surge in value within a very short time horizon, based on stock value and past performance.

Any financial advisor will advisor will ask you to "do your homework" before investing stocks. That is absolutely true. However, computer software programs can serve as a tool to help us make educated decisions on which stocks to buy or to sell. They can also save us tremendous amounts of time, money, and energy that we would otherwise have spent on doing research on our own.

Find out of using a computer software program to pick your stocks is right for you. See for yourself how computer software programs can be leveraged to pick hot stock buys for you. Article Source: http://EzineArticles.com/?expert=Hyder_Khan

Things You Need to Know About Day Trading

What is day trading? Simply put, it involves the buy and sell of stocks, currencies and futures done in one trading day. While this was available to banks and banking companies several years ago, the invention of the internet allowed individuals to have access to market data and stock exchanges. This marked the increasing number of day traders in the country today.

You need a few things before you can start. You need a computer, internet, telephone line and some software to install the market data. There are some companies which provide such services to day traders. Here a trader walks in and pays them with commissions out of his transactions.

In this line of business, timing is everything. The concept is relatively the same as stock trading: buy them when the price is low, and then sell them when the price is high. This is basically how you gain profit. The key to success, therefore, is to know when to buy and when to sell.

But the thing is, this happens in a relatively short period of time. Trading may be short-term, or within a few seconds or minutes. Or it may be long-term, where you hold your position for a few hours or a whole trading day.

That is why it is also as important to choose an online broker and trading company well. Do some research on online companies and choose among the hundreds of them. They have different rates or commissions per trade. In choosing a broker, choose someone who does not charge high commissions and can manage your funds well.

You also need to have as much information on market news. Because trading is done on the same day, make sure to be aware of updates on the many companies in the trading website. Things can change in a few seconds, so it is necessary to be in the know.

There are many strategies that you can use when trading. While others like to "overtrade," or make several transactions everyday, there are others who plan only one trade per day. They feel that by taking it slow, their decisions are better and more systematic. Whichever works for you, make sure to make careful, well-planned choices in order to achieve more gain.

If you are keen on day trading, then educate yourself well. Read books, talk to expert traders and visit online trading sites. That way, you are able to make good choices and trade successfully in the process.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Mind Setting in Day Trading

All traders gear their mind to something when they enter day trading. Many believe that they can get the pot of gold at the end of the rainbow; some people, on the other hand, know that they are only in the trade because they need to earn decent paychecks; still others consider the trade as a hobby. Regardless of which category of traders you are, you should realize the following realities of day trading to be able to get the most out of it:

Know that losing is just as normal as winning the day. Each trader has his own daily story- you, for example, could be rejoicing for the good profit you had today but you also had some bad times before. It's pretty much the same for everyone. In short, all traders have an equal chance of bankruptcy and winning. No one is excused.

Focus on planning is as good as guarding your chances of losing or winning the trade. Stick to some working plans, two or three plans are enough. They don't have to be highly sophisticated or very technical. The thing that you should be focusing on is that they are successful enough as to warrant the profit you get from them on some days and help you escape from some big losses on other days.

Don't be judgmental to yourself. Being fair to yourself is mandatory in winning the trades. If you would always tell yourself that you are a pathetic loser or that you are a moron, you would only be sure of one thing- you are what you tell yourself. Positive psychology works in trading especially if this is radiated inwardly.

Learn to control your emotions and not eliminate them. The uncontrollable flight of emotions could lead to uncontrollable decisions. Chances are you will make unplanned decisions when you easily get excited or panicky. On the other hand, you would be frozen on the spot if you are easily affected by your fears. Being able to control your emotions is similar to controlling the game. Whoever has good emotional management skills also has more winning trades. Eliminating emotions, on the other hand, is not possible. Emotions are built-in components that let us react to things more effectively; these are parts of our survival mechanics. As a trader, don't your emotions control you, instead control them to your advantage.

Mind setting could either be positive or negative. So if you are a trader or a would-be investor in day trading, try to use mind conditioning towards your advantage and not your destruction.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Day Trading The Forex Market For Maximum Profit

Every day, more traders are turning to Forex day trading systems for generating short-term profits, while eliminating certain levels of volatility risk. Forex day trading systems entail entering and exiting the market multiple times per trading day, making profits on small fluctuations of the currency exchange rate. Given the multi-trillion dollar turnover of the forex market, its liquidity and efficiency, the forex market offers one of the best outlets for employing profitable day trading techniques.

Unending Market - Perfect for Daytrading

The basis of day trading is closing out all positions before the close of the day's market. There is no long-term speculation involved. Since Forex trading occurs globally at all times during the day, an investor who wants to play this market can make his or her own timetable. There is no opening or closing bell as on the New York Stock Exchange. You can use your Forex day trading systems and strategies, whenever it's convenient to you and the trade opportunities you see.

Forex Day Trading Uniqueness

Most investors take a long-term perspective. They have the bigger picture in mind. Forex day trading strategies are concerned with minute by minute fluctuations. Successful Forex day trading systems seek out a clear short-term currency move and try to take the proper position to follow that momentum before it reverses direction.

Although there are many opportunities that present themselves throughout the day, this type of Forex trading is, nonetheless, risky. It can produce substantial losses in a very short period of time. You should always be well prepared with your Forex day trading strategies so as to maximize profits and minimize losses.

Basic Forex Trading Strategy

Before entering any trade, you should have a loss limit established beforehand. Always determine how much a move against you will clearly show that you were wrong. Don't hope for the best, and always limit your losses. This goes for profits, as well as losses. Once you have reached your goal, you should exit. This being said, one should always let their profits run and cut their losses short. Educate Yourself

Forex trading, like in any endeavor, is best accomplished by those fully prepared. Anyone interested in trading should fully understand how the market functions. You cannot achieve success without proper education. The Internet offers up plethora of sites giving complimentary tutorials on all aspects of Forex trading. If you can devise the proper Forex day trading system, the currency markets provide great profit potential.

Andrew Daigle owns and operates many successful websites including ForexBoost, a Free Forex Training web site to learn Forex trading strategies and a Free Forex Training blog for keeping online Forex trading records. Article Source: http://EzineArticles.com/?expert=Andrew_Daigle

Day Trading - Trade to Live Another Day

Try to think about it- a trader's main objective in day trading is not really to make a lot of profits but to get through the day so they can trade for another day. It may be true that the majority of people entering the trade hope that their accounts will multiply exponentially as they walk out. Some people could have achieved this before but day trading is really a mine field, you will have to enter it at your own risk.

All traders protect their accounts- treating them like they are the last thing they'd ever want to lose. Why? Because if they do not do exactly that, there is no way for them to get back to the trade. For people whose accounts were depleted due to bad decisions they have taken while trading and for those people who simply had a streak of bad luck, this guideline for recovery might be helpful.

Remember that emotions are out of the question in the trade- Traders simply cannot be too emotional. This often urges them to make irrational decisions and behaviors. If you have lost a hefty sum of money because of a lost trade, remember that this has happened before to many other traders and like many of them you should not feel defeated.

Just don't panic. It is a common pitfall for traders to panic after losing a string of trades. Don't, just don't. Panicking would make you prone to take back everything on your succeeding trades. You might try to risk most of your investments on a large trade which like all others do not come with a guarantee that would earn you back the money you have lost. If you start panicking, you would continue losing more trades.

Be rational- After a bad day try to asses what factors led you to your losses. Try to asses the reasons, the choices you've made and the faulty decisions that made you lose your trades.

Look on the technical side. Technicians may not necessarily predict the outcomes of the trades but they can base their decisions on what worked previously. So try to check in your journal, if you have one, and see the technical side of your losing trades. This will let you get around the things that made you lose money before.

Tone down your aggressiveness. Trading would normally pump up your adrenalin. This could be good when taken in their right quantities but when the adrenalin rush pushes you to decide on trades without assessing them, it is time to put a stop to your assertiveness.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Finding the Best Day Trading Resources

Day trading is one of the most-searched topics on the internet. With the rise in popularity is the increase in the number of resources available, both on and off the net. But because there are many resources at hand, how will you know which resources to choose? Here are some tips on where and how to find the best resources.

Books are the most common resource. Here expert traders share their secrets in a comprehensive and sometimes illustrative way. To choose which book to read, do some research on the books available and see the book reviews and comments by readers.

Newsletters, emails and publications are also other sources of information. They provide tips and stock listings as well as other articles written by experts. But before you consider any trading tips, be sure to understand them and that these tips are not contrary to your personal strategy.

Websites are also good resources. These sites post articles that are useful to new traders. But like anything else on the net, check if the writer is a real trading expert or not.

Another source of information is through clubs and chat rooms. Here you can interact with fellow traders and learn strategies from them as well. Some good traders are kind enough to help newbie's by educating them as to why these trades should or should not be made. But do not trust all the information that you may get, as some people without any knowledge on trading may pose as chatters or experts.

Software and software programs are also another source of information. In actual trading, these programs are most helpful in making choices. But before you purchase any of these software programs, make sure that you know what you want. Choose the software that meets your criteria and specifications.

There are programs which give you real time data, wide scope of market data, and scanning methods that will be very useful when trading. But one common mistake for new traders is to purchase software programs that are difficult to understand. In short, choose software that is user-friendly and not too costly.

If you want to be successful in day trading, you need to do some research and learn more on the topic. And in order for you to learn, you need to find the best resources available. Lastly, it is important to always keep an open mind and be open to changes. These are your keys to success.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Use of Psychology in Day Trading

The majority of traders lose. Despite the fact that all traders know this, many still can find good ways to counteract their losses. The main reason for losing is said to be the lack of right psychological preparation - that is they only see the good parts of trading and fail to acknowledge the bad sides thus falling short on creating a proper set-up in case they begin to lose their stocks.

Trading is a psychological endeavor as much as it is a methodological one. Before a trader becomes fully successful in it, he should first realize the psychological battles happening in the trade. Without fully understanding the issues surrounding the trading psychology, one won't be able to get around the common problems which normally only call for simple responses. Included in these are the emotional burdens of not being able to get into the winning trade, the fear of losing the shares, the despair a trader faces when the trend is not going his way and the confusion that always pushes the person to decide quickly while his money is at risk.

There are a number of ways where in psychology could be an effective tool in improving the trading style. For example, constructive mind conditioning could go a long way for many traders who are beginning to doubt whether or not they will be successful in the trade. This also works for people who need to revamp their self-concept while trading.

Labeling is among the many psychological problems that traders suffer. Experiencing a streak of bad luck could lead someone to talk to himself in a very harsh manner. Labels like "I am an idiot, I never make things right" or "I am so stupid, why did I have to make that decision?" will normally make it harder for the trader to think more constructively and clear his mind of negative thoughts.

Another is the unrealistic expectation regarding the trade. People, who consider day trading for its appeal of profitability, have very unrealistic ideas which make things unnecessarily frustrating. For example, they are lured to the business because an advertisement said that they could earn $35,000 in just 2 weeks. Theoretically, this is possible however it is only feasible to some extent. Being able to understand the psychological make-up of trading would automatically set the thinking of the would-be investor on the realistic level of expectations.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Why Adapt Specific Day Trading Styles

Anyone who is in the day trading business for sometime now would readily agree that sticking with two to three day trading styles that work is advantageous. This is one of the good habits that should be adapted by anyone who wants to make the trade easier for them to handle while giving maximized profits.

Mastery as well as focus on both the style and the ongoing trade will prove beneficial for the trader. Being able to master one single technique that has historically worked for the trader seems to be practical.

Jacks of all trades do not have a good place in this kind of business. These people who frequently shift from one trading style to another normally face lots of losses due to untimely decisions that are brought by the lack of proficiency in the styles. A market that is erratic doesn't show mercy to people who commit unwarranted mistakes and people who do not have specific systems are more likely to get victimized by such mistakes.

Experts or those people who have certain specialties are almost always better paid than people who know all the systems but cannot put them to good work. If a trader would only dedicate his learning on a certain style of trading, he will learn all the necessary principles that he needs. This way, the system and the trader will become parallel in development.

Focus on the trade and the style will also work for the trader's advantage. If one is only using the style he is familiar with he no longer has to bother on dividing attention between the fast-paced changes in the trade and the decisions on what move to take next.

Developing specific styles will also give room for developing other crucial aspects of trading like money management and risk management. This business is not just about being able to build up a style or two and earning money along the process but also optimizing the power to earn more or to lessen the unnecessary risks encountered.

The most successful traders have learned all the aspects of the trade without necessarily having to spend a lot of their time learning the factors that don't count that much. Knowing money management for example will help the trader allocate his accounts to those shares that are most lucrative after quickly evaluating the profits against the risks involved. Risk management, on the other hand, lets the trader achieve a good balance between fear of losing against greed on winning.

There are a lot of things that should be learned in day trading, among them is choosing a style.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Day Trading - Traits of a Day Trader - Part 1

The only thing you can expect with day trading is its constant change. One moment you are profiting, another moment you are on your way to losing. It all happens in a nick of time. Anyone in this business understands that it's a very risky venture. So, to help you learn the shortcuts we will share with you the common traits most successful day traders have.

They only use their risk capital for trading.

Traders should only use the money they can afford to lose. They don't use the student's loan, the allowance for food or the mortgage payments. Otherwise, they are trying to suicide. They understand that the money they have now may be the money they will be losing a few minutes after. If you have $10,000 in your account and that is all the money you have left in the world, you should understand that if you lose all of that in a day, you will have to live on food stamps. So be sure that the money you use for trading gives you the leisure to trade. That makes it a lot easier to take the risks and enjoy the winnings.

They accept that their losses as much as their winnings are their personal responsibilities.

Traders know the reality that it is their decisions that trigger all actions. No one else is responsible for their wins or losses. They cannot point a finger on somebody else and blame him for an untimely decision. Every action a trader does is his own making. Sometimes, even taking this principle to the extreme.

They understand that they should always be neutral.

Seasoned traders know for a fact that they could be winning hundreds of dollars now and lose thousands of dollars later. On both occasions, they cannot celebrate or cry. They have to remain composed and proceed as if nothing good or bad is happening. Most novices think that the world is picking on them every time they lose and they advertise their winnings in every possible way. It is ok to show some emotions but this should be a practice. The problem with this is that emotions are really hard to control once they take over a person. True day traders never let their emotions control them.

They keep a record of their activities

Written records are some of the most reliable resources of what happened in the past. Journals will help you keep track of what works for you, which market you are most comfortable playing with and what strategies give you the most profit.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Steps on How to Become a Master of Day Trading

The success with day trading does not knock on the doors of all people. If you are striving to become a master of the craft, then you will have to bet your wits against a rival in the stock market. Every time you earn a profit, it means that someone else or another day trader loses a part of his investment. Thus, you should be equipped with a profound knowledge and loads of valuable techniques on day trading and then execute your smartest moves.

Needless to say, day trading is one full time career. Literally speaking, there is the need for you to watch over the market, its prices, and how your stocks can play well with the ongoing flow. Just a minute of being inattentive may mean a defeat of your purpose.

Basically, if you are aiming for a stable profession in day trading, you have to keep yourself abreast of all its ins and outs as well as its ups and downs. The following are some of the insights that will help you make the best out of your day trading experience.

Open your eyes to reality. Day trading is no fairy tale. Your money can't accumulate your desired profits overnight. You will need enough time to market your stocks.

Learn from mistakes. No one is perfect, so to speak. The same goes with day trading. There are always mistakes that you will end up with and you are no super hero who can fight off these odds. Therefore, you need to learn from all these wrongdoings and try to do things better the next time.

Strike while the iron is hot. When there is a great opportunity to make profit, be ready to plunge into the business. Work hard. Try to limit your chances of losing and heighten your possibilities of winning.

Set a limitation for your losses. Ask yourself as to how much you are ready to lose as you partake in the stock market business. But be sure that you don't exceed such limits. Be a hundred percent confident with your preferred day trading technique. Success is often the result of your will and desire to standout.

Be responsible. Whatever your decision is, be ready to face its consequences. Your self-discipline, determination, and persistence are very important. Study, study, study. You can take online tutorials and learn about the stock market and day trading through the cd-rom packages sold online, by joining the online forums, reading newsletters, and attending seminars.

Read on the valuable tips for day trading. You can only overcome your fear if you are knowledgeable of the things which you can do to improve your craft. Enjoy. It is important also that you enjoy what you are doing. Day trading can be both risky and exciting. What is most significant is that you know how to handle things so that you will end up with a fruitful experience.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

Day Trading - The Two Types Of Over Traders And How Not To Become One Of Them

Opposite the successful day traders who trade with the necessary moderation, there are those who trade excessively without realizing that they are signing up for sure losses.

Here are the two types of over traders:

Type I: Technical Over trader

Novices in trading justify their actions by the technicalities of this field. Many of them find some technicalities working to their advantage. They then make pre-determined positions and look for some indicators to confirm their choices. After a few times of using the techniques they've developed, they create rules and stick to them. If the system works for them more often than not, they begin to believe that they have found a lucrative secret to trading and have beaten the odds. They then begin to take advantage of the system to increase their profitability. This is not really a bad practice but it lends to overtrading which could backfire on them.

Type II: Impulsive Over trader

People who make use of non-statistical or mathematical data often rely on other people's opinions, on the news, on their personal observations and hunches and advice by so-called experts or gurus. The problem with these is that they cannot compensate for quantifiable data and that the discretional over trader finds it hard to stay put because of them. He cannot stand inactivity thus he has to satisfy his compulsion to trade. The lack of assessment of sufficient indicators and enough technical knowledge is often the downfall of a trader.

Many have the impulse to overtrade and this impulse should be avoided. The key here is the practice discipline.

Being able to restrain oneself is a common characteristic of a successful trader. He could control himself and he has the capacity to become immune to common pitfalls that affect average trades. For example, he could be neutral when entering or exiting a trade, he knows that emotions have no place in this battlefield. He does not become too excited or too panicky when he achieves something great or when he begins to slide down. His emotional state is the same on days when he is making thousands of dollars and on days when he losing twice as much.

Discipline also includes the constant practice of patience during training. He not only trains with day trading courses or seminars but he also treat each day of trading as training day. He strives to continually enhance his capacities and skills as a trader without stopping when he thinks he's reached his peak.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com Article Source: http://EzineArticles.com/?expert=Miodrag_Trajkovic

5 Forex Day Trading Tips

Forex day trading is a popular way to try and take a piece of the 3 trillion dollar a day Forex market. To tell you the truth, I prefer longer duration trades better than day trading, but in this article I'll share some tips on how to make the most of this trading strategy.

5 Forex Day Trading Tips

1. Set Stop Loss and Take Profit prices for each trade - You need to be a machine when it comes to day trading, and the best way to do this is to set a Stop Loss and Take Profit price for each trade. This will save you a lot of time.

2. Get a commission discount - If you're going to go day trading, you might as well get a commission discount from your broker. You have every right to ask for a discount because as a day trader you will be making a lot of transactions which is just the sort of trader brokers love to keep for themselves. This will save you a lot of money.

3. Trade without emotions - Forex day trading is an emotional process, but you need to fight against that because with trading, emotions mean mistakes. Costly ones. You need to trade with your head and not your heart.

4. Trade currency pairs you know well - There are many currency pairs to trade, but a good Forex day trading strategy for you would be to stick to pairs you know very well and are familiar with their countries.

5. Trade with a software by your side - Trading blind is always a mistake. Doing it when you're day trading can be financially destructive. Always trade with a software to help you make the best decisions. Even a single trade a day can mean hundreds of dollars of extra revenue each week.

Above all, always trade money that you can afford to lose since that will keep you trading from your mind and not from your emotions. I wish you the best of luck with your trading.

To read about an automatic trading software, click here: Forex Autopilot review. John Drummond works from home. He writes often on business, trading, and finances. There is more than one forex trading software. To read John Drummond's review of the 2 best ones, click here: Automatic Forex Trading Software. Article Source: http://EzineArticles.com/?expert=John_J._Drummond

Online Stock Picker

Are you weary of trusting human beings to pick stocks for you? So-called, self-styled "stock analysts" may claim to have expertise in making stock predictions, but very often, many of them they have failed to call out impending crashes. Only a few stock analysts possess the foresight to truly understand the market, because they see it at a level that the majority of other analysts do not.

With the advent of the Internet Age, computer software programs have now been written that can make stock predictions for you. They possess a capability to analyze and trend millions of data points per second, which is a feat that no army of human beings can ever hope to achieve. Based on their complex data analysis, they can generate statistically accurate extrapolations (notice I did not say "predictions") as to what stocks, out of the hundreds of thousands available, have the highest probability of yielding the greatest return on investment in the shortest period of time.

An online stock picker is a day trader's best friend. as it takes all of the guesswork out of picking stocks. It saves you countless hours of research. Of course, a computer cannot understand the human element that drives stock prices up and down. However, it can make mathematically precise and statistically relevant recommendations that you can use to base your decision on whether or not to buy a particular stock.

So if you are the type of investor who approaches stock investing from a strictly mathematical numbers game, then leveraging the services of an online stock picker might be the right choice for you. On the other hand, if you are the type of investor who approaches stock investing as a measure of socio-political and economic productivity and an indicator of the state of the human condition itself, then you are better off relying on the opinions of a stock analyst.

See how an online stock picker can be used to your advantage. Article Source: http://EzineArticles.com/?expert=Hyder_Khan

The Basics Of Day Trading

Day trading, as the name suggests, means trading-buying and selling-the stocks on the same trading day. The trading positions, usually though not always, are closed before the market closes for the trading day.

Day trading is different from after- hours trading where the trading activity continues even after the regular marketing hours when the stock exchange closes.

Sellers and buyers who participate in day trading are called day traders. Although day trading evokes the image of a hectic trading activity in course of the trading day, it may not be so in actual practice. You may make several trades, say a dozen, in course of a trading day, or, you may limit yourself to just one trade.

You may, in some cases, just buy a stock on one day and sell it on the next day, if you think that selling it on the same day would not prove profitable. There is no legal restriction such as that you must finish off your trading activity the same day. You may, at the most, have to pay some differential on brokerage if you carry your trade to the next day.

In standard practice, traders usually tend to close their trading positions by the end of the same trading day. In any case your trading frequency depends entirely on your trading strategy for that particular day, or, your general trading style and outlook.

There are traders who focus on very short or short term trading. They finish off their trades in a matter of few minutes or even seconds. Such traders buy and sell several times a day and usually their trades consist of high volumes. They are the favorites of the brokers who reward them with big discounts on commissions.

Some traders, however, do not hanker after reduced brokerages. They focus on momentum or trends of the stock movement. They are very patient during their wait for a strong move, which may occur during the trading day. Obviously such day traders make only a few trades.

There are traders who prefer to sell off their stocks before the close of the market day to avoid the risks arising out of the price gaps between the closing price on the day they bought a stock and its opening price on the next day. They consider this practice as a golden rule and follow it almost religiously.

Other traders believe in allowing the profits to run so they stay with the position even after the market closes.

As said earlier, the number of trades you make on a trading day depends upon your trading style or trading strategies.

Profits and risks in day trading

Day traders make quick bucks and also quick losses in a matter of minutes or at the end of the trading day. Day trading may evoke the visions of gamblers gaming in casinos. There is, however, a marked difference between day trading and gambling.

While, you cannot make any calculated moves or devise any intelligent strategies in gambling, except when you are out to cheat others, day trading involves very serious understanding of the process of trading.

You study the general market trends and the movement of the stocks. You make fundamental and technical analysis and keep yourself abreast of the latest news flashes about the stocks of the companies that you trade in and much more.

Day trading is not playing a blind man's buff or just throwing away a dice. You have to be very alert and cautious before every move. It would, therefore, be unfair to call day traders gamblers or bandits as some frustrated losers in day trading are apt to do.

Experienced and intuitive traders generate huge percentage of returns from day trading. Some stock traders manage to mint millions per year solely on the day trading. A large number of persons have successfully made day trading a sole avenue of making their livelihood.

This, however, is not to deny the risks of huge losses in day trading. Those who trade without a calculated and intelligent strategy and discipline are more likely to incur huge losses in day trading. This happens more with those who use borrowed funds, a practice known as buying on margins. They have to pay back the borrowed amounts with huge interests and other penalties if fail to make profits. This is what makes day trading really risky.

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