Some of the best patterns to trade

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I receive this question a lot: “What’s the best interval for day trading charts?” In today’s video I not only answer that, but give, what may be to some, a very surprising answer: Don’t use intervals of ANY minutes!

Duration : 0:10:19

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I Came across this Interesting Video on Stocks Day Trading, I Hope you like it too!

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Day Trading Stocks and regular trading stocks are two very different things. Day trading is someone whose livelihood is from trading- this is their full time job and is quite stressful. Usually this requires quite a bit of money and time and knowledge.

Regular trading stocks, such as an investor, may not do daily trades, but will buy and sell stocks when he/she thinks the price is up/down. There are a variety of online brokers that you can open accounts with, for as low as $2000. Some brokers have free commission too.

Some companies also offer direct stock purchase plans where you buy stocks monthly from the company directly. So it really depends on what you want to do and then figure out how you want to do it. The choices are quite diverse.

While you can be successful at day trading, and there are many people who are successful, it takes a lot of time and resources to make it worthwhile. It is by no means easy, and in fact can be very difficult. At the very least, it is for someone who fully understands the markets and has a discplined approach to their trading.

You are not just investing here, but have business operations to take care of. Without proper tools, how can you expect to compete with all the professional traders worldwide? And on Daily Basis??

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Day trading isn’t as bad as people think it is. Smart day traders actually make big bucks. I know many people making a lot of money either day trading, position trading or swing trading. On the other hand, I also know many people losing quite a big amount of money as well.

Anyway, you always have to study the market quite a bit, and especially the stock that you are buying. Since we are talking about not to day trade, you will have to make sure that the stock you are buying isn’t just something that shot up for the day and sinks like the titanic the next day because you will be holding on to it for some time (days, weeks, whatever you want), some people call this “position trading”.
So, again, study the market. Select a target company; find out who runs it - their history, management philosophy. Evaluate the company’s strengths and competition. Look at their cash to debt ratio, market capitalization, earnings, dividend history. Compare with other companies in the same business segment. Look at market trends and potential future earnings. Don’t invest in buggy whips. When you are comfortable with the company, purchase their stock. Finally, buy good stock on high volume that do not fluctuate as much as small-caps if you are planning to hold for over a day.

Once you master your strategy, repeat. Diversify. If you are diligent and lucky (and don’t make any mistake about it, luck plays a large part in this; the market unfortunately is not rational), you could average big winnings.

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If you’ve been Day Trading for a while and you are experiencing loses, or your winnings are dismal to the point of being depressing, you should consider the five points listed below very carefully. One or more of them will likely explain why you are having this experience

Not having a Journal
You need to keep record of your tradings, not only the winning ones, all of them, there is always something to be learnt, even from the losing trades, so get in the habit of keeping a log of all your tradings.

Overtrading
Trading more than your capital allows, or trading more times than you should, are two sides of the same sin. Most of us, have sometimes been guilty of it. Successful traders don’t jump into every possible trader, successful traders are like wildcats, waiting for its prey, AND in the most advantageous circumstances. So, become a Wildcat at day trading!

Lack of a Trading Plan
Markets behave randomly, according to supply/demand, however there are times where a trend is clearly defined, and those are the moments in which the probability of success is higher. Identifying those trends is not an easy task, and sometimes once you take a position something may go wrong. That is the main reason to have at least a short term plan. Something like setting the minimum winning target point and the maximum losing target point is a good start

Lack of Focus
Never trade under any distracting circumstances; Day Trading needs attention, so never trade, if you have a personal, professional, or any other particular problem which takes your mind away from Day Trading, besides, from a psychological point of view, you may make wrong trading decisions. Trading on such a short time frame requires you to be able to make split second decisions, and you’re risking a lot of money when you do. Make sure your mind is sharp and your emotions are centered when Day Trading.

Lack of discipline
Abide by your rules, mistakes are costly, and your money is on the line of fire.  Never depart from your rules no matter how good a trade “looks” or “feels” to you if it violates your objective and back-tested rules.

In summary, EACH of the items listed above is critical to your day trading success.

Happy Trading!

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The stock market can present you with a lot of hot stocks every day. Many of them are new technology stocks that come from the nanotech, biotech, voip, healthcare, and homeland defense or internet sectors.
Most of them may seem promising, but the truth is that a good number of these trading & investing opportunities are extremely risky, while others are not as good as they seem. That’s why it’s very important to know how to choose the best especially if you want to day trade them.
When you know how to pick and approach the best hot stock trading opportuntites, you are able to generate a consistent and respectable amount of money in a very short period of time.
You don’t necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities for going long or for shorting them to make money when they are poised to fall down.
If you want to learn how to trade and pick hot momentum stocks in a simple yet effective way every week, just log on to ProfitableStockMarket.com right now and discover what youve been missing.
Take a Look at The Valuable Strategies and Bonuses that You can access today:

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• How to pick momentum stocks every day in an easy and fast way. Pure gold over and over.
• What kind of stocks to look for and how to classify the opportunities for greater trading profits. Come and get a truckload of $$$$$ from now on.
• Profitable momentum trading without technical analysis.
• What kind of stocks and “opportunities” to avoid and why. Save thousands in losses from trades gone bad in the future.
• The “little details” you should look for before you consider a momentum daytrade.
• Things to consider when trading low float momentum stocks
• Buying micro cap and small cap stocks with momentum.
• Trading NASDAQ stocks or OTCBB - OTC stocks ?
• Getting ready for the trading breakout. Position your self for success.
• Will my market rally last more than 5 minutes or less? What to do
• It’s all about the stock rally. The rest is just a bunch of elegant B.S. Learn to focus on what matters.
• How to lock in profits on the way up
• Should I hold overnight trading positions for a possible gap up ?
• What to do if the stock rally stops moving. Cash in your pocket !
• Level 2 trading ( L 2 ) strategies for momentum stocks.
• Time frames for trading stocks with momentum, Pros and Cons
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• Trading momentum stock opportunities during market hours. $$$$
• Trading at the open or waiting till the dust settles to make your move. It depends. This can make a big difference in your results.
• Stocktrading during lunch hour ?
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• Become an expert of your hotstock watch list.
• You don’t need to watch the stock market all day. Profitable stock traders have a better way.
• Stock trading is not a job. Save money and don’t make it another rat race.
• Watching charts and stocktrading all day ? Overtrading is not the way to go. Learn why !
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Just picture your self waking up EVERY morning fresh and confident knowing you can identify, validate and take advantage of great momentum trading opportunities that are capable of generating you very profitable results.
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Stock is ownership in a company. Each share of stock represents a small piece of ownership. The more shares a person holds, the more part of the company he owns. The more part of the company a person owns translates to more dividends he earns when the company profits.
A stock market is a market for the trading of publicly held company stock as well as associated financial instruments such as stock options and stock index futures. On the other hand, stock market trading is the buying or selling securities or commodities specifically in the stock market.
There are two basic methods of doing stock market trading. Traditionally, stock markets where open-outcry where trading happened on the stock exchange floor. The more modern way of doing stock trading is through electronic exchanges where everything occurs online real-time.
Stock market trading via the exchange floor could not look any more chaotic. When the stock market is open, hundreds of people are seen rushing about, shouting and gesturing to each another on the exchange floor. Traders are also often seen talking on phones, keeping a close eye on the consoles and entering data into terminals.
Online stock market trading moves the trading off the floors and more into the networks. The electronic market employs a vast network of computers to match buyers and sellers instead of human brokers. While lacking the excitement of the usual stock market exchange floor, it is faster and more efficient. Investors frequently get an almost instant confirmation on any trades done.
How does stock market trading work? Be it on the chaotic stock market exchange floor or electronically, one needs to get an investment broker first.
For traditional exchange floor trading, after asking a broker to buy a certain number of shares at the market, the broker’s order department sends this order to the clerk on the floor. The clerk alerts a trader who finds another trader who is willing to sell the shares the investor requested. The two traders agree on a price for the stocks and close the deal. Notification is sent back the same way until the broker calls the investor to inform him of the final price. This process may take a while depending on the market and stocks. Days later, the investor receives the confirmation mail.
The electronic counterpart is less complicated because the stock buying and selling are matched by the computers in real-time. And the investors get instant updates on what happens to his stock trade.

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One of the main reason traders lose money is a lack of any plan whatsoever. Today, we will focus in building a hypothetical plan based on a strategically design. The main purpose is to take as much money out of the market, while trying to sustain little looses, if any, at the same time. Losses will always be part of your trading, but if we somehow minimize them, we will always be ahead, and THAT will be our top priority. Now it is time to set an achievable objective for each trade, whether it would be expressed in a fixed dollar amount or a percentage of your working capital, it will be up to the trader himself. At the same time, we will have to decide about the biggest amount of money that we will be willing to accept as a “casualty” in a single trade, using, of course, for to keep everything simple, the same parameters used for our profits; however this amount should be considerably less. Keep in mind, that as a part of our strategy, our winnings should be more than our losses. A proportion 2:1 means that every 2 losses should be equivalent to one winning, for my personal taste, I always use a more conservative ratio, at least 3:1. So, If we are talking in the language of fixed dollar amounts AND we will be willing to accept $100 per losing trade, we will be expecting to win at least $300 per winning trade, that simple. Now, before to dive down any further into this, let’s make a “low level flight”, kind of a “touch down” into the field of money management. Wiser traders never risk a big part of their capital in a single trade that is what people commonly refer to as putting all the eggs in the same basket, most people advice that this amount, should never be greater than 2%-3% of your whole capital. So let’s assume that our gross capital is $5,000.00. Following our strategy, it means that our limits per losing trade will be around $5,000×2%=$100, at the same time, our winnings will triple that amount, yielding $300. Now, it is time to do our homework, and look after our proffered instrument, let’s say we go into e-minis, Eminis margins, depending upon your broker, could be in the range of %500-$3000 per contract, let’s say, we select Nasdaq 100, if our margin is $500/contract we can work with 10 contracts at the same time, but alas, this brings us the topic of overtrading, bear in mind this piece of advice, be conservative, you do not want to burn all your bridges in one trade, and for the given amounts I will never trade 10 contracts, even if I certainly could, I would trade 1 contract per every $2500/$3000, period, I know you get the idea. Now, 1 tick in Nasdaq is $5, that means that my losing point ($100) will be $100/$5 = 20 ticks behind my entry If I am long, and my winning frontier will be At least 20×3 60 ticks away per each contract, Commissions are around $10/round trade, and we DO want to take this into consideration. See this piece of “tactic”. If we trade an even number of contracts, the first half will cover commissions, while the second half runs “free”, so, each Commissions of $10 will be covered by TWO ticks, If we have 2 contracts, we have to go for FOUR ticks. Rounding up the idea we have to finish with entry an exit points, The entry point will be selected by your preferred method, but once you are IN the market, set your exit point at once, no feelings at all, just set your exit point with an stop loss order, and keep moving. As soon as the market moves your way, and it surpasses your four ticks, SET a new exit point, again, with an stop-loss order for half of your positions, at that precise frontier (Four ticks), and you now, are basically running commission free, at the same time remove those positions from your original stop loss order. Next steps are up to you, if the market moves your way, trail your stop-loss orders as much as you can. I usually trail, in first instance, the one that makes the commission protection, the more I get, the better, until my objective is met, If I still got 2 separate stops, I merge them together and keep trailing, otherwise, I keep trailing the one I got until the market takes me out by itself, the more it moves away, the better because I am making more money. Let’s see the theoretical example with real numbers and make the summary of this strategy

• Margin Account capital: $5,000.00
• Nasdaq 100 Margin requirement: $500
• Theoretical max number of contracts = 10
• Real max number of contract= 2
• Trading direction: long
• Entry point 1910.25
• Initial stop loss: 1907.75
• Risk: $100
• First target: 1911.25
• Risk if first target met: $100
• Stop loss if initial target met: 1905.25Second target: 1917.75

Now it is time to do your homework and design a strategy suited for your style!
Happy Trading!

Technorati Tags: day trading

The stock market trend refers to the condition of the trading system. Because of the stock market’s instability, it should be known that your stocks could win, could lose or could break even.

Since breaking the stock market system is complicated and has never been done. Here are some guidelines in following the trends of your stocks.

1) Research and planning. The stock market is a place where people should always be informed of their environment, the prices, and all the factors needed in determining the value of your stocks. In entering the market, you should be ready and well-planned. Simple information about the companies, indexes, and a competent trading system could help you move your stocks forward.

2) Think rationally. Although the stock market could provide you with significant income, it requires time and attention to details. When trading, you shouldn’t expect to that you would automatically receive millions of dollars. Although it is a possibility, always remember that the stock market is never a hundred percent accurate all the time. So if you have an intention of quitting your day job, you should think again.

3) Street talk. This means that information by someone you know about the stock market trends could not be always reliable. Make sure that before believing in someone about the trading system, you should always research first. And after researching, always try to verify the facts before placing your money in danger.

4) Emotional burden. In the stock market, emotions are not needed your daily routine. You should be able to let go of your emotions and ego for you to succeed in what you need to do. Remember that when you enter the stock market, you should release your fears and greed from your mind. Replace these with discipline, patience and confidence in doing what you know you have to do. It is important that you control the negative side of your mind because having emotional burdens does not help you in the success of your trade.

5) Management. Planning how to manage your money and preventing it from risks is a vital key to trading success. Management is a serious aspect of the stock market. Before stepping into the stock market floor, you should be able to follow your steps in trading for you to keep the profits you have earned and make it grow.

6) Trading. You should know what to do in trading both a rising and falling market. When you know the facts in dealing with your stocks when the market falls, you could make more money and adjust smoothly with the trends.

Follow these tips and beat the stock market trends easily.